1. LENENERGO 2004

2. 2 GENERAL OUTLOOK Transmission lines by voltage less than 220 kV 97% 330 kV 1% 220 kV 2% The largest power company in the North-West Russia Installed capacity – 3244.5 MW, of which Hydro – 649 MW Franchise to 6.4 mln. people in St.Petersburg and Leningrad region covering 85.9 thousand sq.km We distribute 99% of electricity and 55% of heat consumed in the region Export access to Finland and Estonia Length of transmission lines Overhead transmission lines – 38.9 thousand km Cable lines – 15.2 thousand km

3. 3 LENENERGO GENERATING CAPACITIES IN ST. PETERSBURG TPP-14 TPP-15 TPP-7Central TPP TPP-5 TPP-22 TPP-21 TPP-17

4. 4 SHAREHOLDER STRUCTURE Foreing financial investors 18% Individual investors 7% RAO UES 49% Russian financial investors 5% Fortum 21%

5. 5 PRODUCTION 2003 Installed capacity3 245 MW Working capacity1 785 MW Electricity generated12 421 mln. kW·h Electricity purchased17 753 mln. kW·h Electricity sold24 730 mln. kW·h ELECTRICITY

6. 6 ELECTRICITY SUPPLY Electricity deliveriesGeneration Purchased electricity billion kWh 0 5 10 15 20 25 30 20002001200220032004 F 21.8 16.1 10.7 22.8 16.2 12.0 23.5 16.7 12.4 24.7 12.4 17.8 24.9 13.3 16.1 4.6%3.1%5.1%0.8% ANNUAL GROWTH RATE, %

7. 7 PRODUCTION 1H 2004 (in mln. kW·h) 1H 2003 1H 2004 Electricity generated 6 543 7 332 Electricity purchased 8 986 8 358 Electricity sold12 754 12 533 ELECTRICITY

8. 8 CONSUMPTION 24.1 25.3 27.6 28.9 26.8 23.0 24.0 25.0 26.0 27.0 28.0 29.0 30.0 31.0 32.0 33.0 34.0 35.0 36.0 37.0 38.0 199920002001200220032004 F2005 F2006 F THE MOST LIKELY SCENARIO WE ARE NOTICING A STEADY CONSUMPTION INCREASE SINCE 1999: From24.1 billion kwh in 1999 to28.9 billion kwh in 2003 billion kWh

9. 9 mln. GCal 20 21 22 23 24 25 20002001200220032004 F HEAT SUPPLY DUE TO EXPIRY OF KIRISHY LEASE 22.06 22.98 24.86 22.50 22.10

10. 10 PRODUCTION 1H 2003 (thousand GCal) 1H 2003 1H 2004 Heat generated13 758 12 694 Heat sold 13 428 12 378 HEAT

11. 11 II 0 150 300 450 600 750 900 1050 20002001200220032004 F -15 0 15 30 45 60 75 90 FINANCIAL POSITION Revenue/net profit (mln. USD)Growth rate (2000-2003) 250 % RevenueNet profit THE HIGHEST RESULT AMONGST OTHER REGIONAL AO-ENERGO 363 718 580 868 1010 7.1 40.8 34.5 -10.7 20.0

12. 12 REVENUE SPLIT FOR ELECTRICITY Housing 20% Industry 48% Wholesales companies 9% Other consumers 3% Commercial sector 20% Transport 7%

13. 13 REVENUE SPLIT FOR HEAT Other consumers 26% Industry 6% Social sector 68%

14. 14 DEBTORS AND CREDITORS Debtors/Creditors 0 1000 2000 3000 4000 5000 6000 7000 8000 01.01.2003 01.04.200301.07.200301.10.200301.01.200401.04.200401.07.2004 RUR mln. Creditors Debtors

15. 15 EFFECTIVE TARIFF SETTING SCHEMES Electricity 89.81 kop/kWhElectricity 90.02 kop/kWh Heat329.9 RUR/GCal Heat 325.4 RUR/GCal Average current tariffs: St.Petersburg Leningrad Region 5 25 45 65 85 Electricity, kop./kWh Electricity, kop/kWhHeat, RUR/GCal 31.01.0030.04.0031.07.0031.10.0031.01.0130.04.0131.07.0131.10.0131.10.0230.04.0231.07.0201.02.03 0 250 450 650 850 Heat, RUR/GCal 5 25 45 65 85 Electricity, kop./kWh 31.05.0031.08.0030.11.0028.02.0131.05.0131.08.0130.11.0128.02.0231.05.0231.08.0201.02.03 Heat, RUR/GCal 0 100 200 300 400 DUE TO EXPIRY OF KIRISHY LEASE 01.01.04

16. 16 GENERATION DEVELOPMENT IN 2004 TOTAL GENERATION INVESTMENTS IN 2004 — 1 940 mln. RUR, of which:  own funds— 540 mln. RUR  long-term credit financing (EBRD)— 1 400 mln. RUR  Power unit #1 of TPP-5 with installed capacity of 180 МW и 260 Gcal/h–– 1 400 mln. RUR  Boiler installation on TPP-7 –– 200 mln. RUR  Turbine with installed capacity of 30 MW and 75 Gcal/h on TPP-15–– 58 mln. RUR

17. 17 GENERATION DEVELOPMENT NEW CONSTRUCTION  Соnstruction of power unit #2 of TPP-5 (Steam Power Facility 300 MW and 200 Gcal/h) to supply heat to densely populated areas of Nevskij and Krasnogvardeiskij districts  Соnstruction of power unit # 4 of TPP “South” (SPF 300 МW и 200 Gcal/h) to supply heat to Frunzenskij and Nevskij districts  Соnstruction of circuit water supply system of TPP-14

18. 18 PRESENT STRUCTURE MANAGEMENT Heat networkCPRР TPP-22 TPP-5 Central TPP TPP-7 TPP-14 TPP-15 TPP-17 TPP-21 TPP-8 HEPP-6 Cascade-1 Cascade-2 HEPP-13 Luzhskie Cable High-voltage Suburban Vyborgskie Gatchinskie Kingiseppskie Lodeinopolskie Novoladozhskie Tihvinskie Energosbit CIT IAC ASP ATP Generation Heat networksMaintenanceSalesServices Electric networks Assets share as of 01.01.04 Generation Electric networks Heat networks Sales Maintenance & Services RESTRUCTURING

19. 19 TARGET STRUCTURE MSK High-voltage MMSK C-З or Regional Network CompanyRegional Generating Company Energy Sales Company TPP-22 TPP-5 Central TPP TPP-7 TPP-14 TPP-15 TPP-17 TPP-21 HEPP-8 Luzhskie Cable Suburban Vyborgskie Gatchinksie Kingiseppskie Lodeinopolskie Novoladozhskie Tihvinskie Energosbyt Other non-core assets and services 100% OAO CPRP-Energoservice 13,8% ZAO North-Western TPP 3,46% OAO Power Machines HEPP-6 Cascade-1 Cascade-2 HEPP-13 Heat Networks Managing Company 21,6% OAO Petroenergobank 50% ZAO LEIVO 75% ZAO Petroelectrosbyt Management assets EIO

20. 20 LENENERGO IS AN EXPENSIVE COMPANY COMPARISON OF INSTALLED CAPACITY COST 12 882 5 075 3 495 14 900 8 263 4 750 2 625 1 884 3 253 10 146 13 000 4 547 5 555 47 000 42 000 27 000 13 000 34 000 631 273 193 1 9081 908 180 273 125 136 550 1 617 4 982 1 472 1 545 10 831 12 133 9 980 5 454 32 998 Irkutsk Bashkir Samara Mos Sverdlov Kuzbass Novosibirsk Chelyab RUSSIAN AVERAGE LENENERGO CEZ (Czech) Huaneng Power (China) Copel (Brasil) Cemig (Brasil) Korea Electric Power (Korea) Developing Markets Average Endesa (Spain) Entergy (USA) Cinergy (USA) E-ON (Германия) Developed Markets Average 48.948.9 53.8 55.2 128.1 21.8 57.5 47.6 72.2 60.6 169.0 159.4 383.2 323.7 278.1 230.4 275.0 288.9 369.6 419.5 970.5 512.1 AO-energo Installed Capacity (MW) Market Capitalization (mln US$), as of 02.02.04 Cost of Installed Capacity (US$ / kW)

21. OUR AIMS FOR 2010

22. 22 ELECTRICITY DEMAND FORECAST  According to forecasts electricity consumption in Russia will grow annually by 1,5-2,5%  By the year 2010 electricity consumption in the North-West region of Russia could grow by 20%  It is necessary to reconstruct the existing and build new electricity transmission lines and energy supply sources to satisfy the growing demand for electricity  The estimated need for investments in reconstruction and technical renovation of transmission lines, which supply our existing customers, amounts to more than 620 mln. USD. Thorough technical audit is needed to estimate real condition of the gridlines  Approximately 240 mln. USD of investments are needed for reconstruction and building new gridlines to satisfy growing demand

23. 23 TARGETS - 2010  Growth of Net margin up to 20% (based on IAS)  Electricity generation efficiency ratio growth up to 45%  Strengthening our positions on the international capital markets REVENUE TARGETS PRODUCTION TARGETS Electricity Sales, TWh Heat Sales, mln.GCal 25.16 26.17 27.21 28.29 29.42 30.60 31.82 22.1422.0221.8921.77 23.52 24.00 21.6521.5322.3924.8622.27 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 200220032004200520062007200820092010 921,19 1028,56 1149,00 1285,07 1439,57 1488,13 1537,83 827 718 0 250 500 750 1000 1250 1500 1750 123456789