The Company and the stock market

During 2012 the Russian stock market was very volatile. 1Q 2012 a sharp boost from optimistic expectations on global recovery was succeeded by a headlong fall at the beginning of the next quarter. The fall was due to aggravation of debt crisis in Europe. At the moment news on the looming collapse of 3rd largest spain bank Bankia appeared. In its turn, a very tight situation endured by Spain itself deteriorated the problem. Financial and economic hardship of several European countries, strengthened by comments on possible euro-zone disintegration aired by various mass media, engineered capital drain from emerging markets, including Russian market. In 3Q 2012, due to EU resolutions on expanded support to euro-zone needy countries and strengthening of relations inside monetary union, global financial markets stabilized, but the Russian market demonstrated flat movements till the mid-4Q 2012 succeeded by slight growth by the end of the year.

During 2012 shares of grid companies demonstrated oppositely directed volatility. In 1Q 2012 news on the future of RAB and possible privatization of several affiliates of IDGC Holding appeared and facilitated quote growth. However, despite the factors, our shares still moved flat (average price as of 31.01.2012 – RUR 0.2304, as of 29.02.2012 – RUR 0.2234, as of 30.03.2012 – RUR 0.2326). In 2Q 2012 news on the tariff rescheduling and transition of IDGC Holding under FSK administration appeared and produced a mixed reaction of the market. The shares of the Company still went flat – average price as of 28.04.2012 totaled RUR 0.2196, as of 31.05.2012 – RUR 0.1893, as of 29.06.2012 – RUR 0.2021.

In 3Q 2012 no significant news able to affect the sector share prices appeared. The Company’s shares went flat again ending the quarter with a small decrease (average price as of 31.07.2012 – RUR 0.186, as of 31.08.2012 – RUR 0.1762, as of 28.09.2012 – RUR 0.171). In 4Q 2012 news on the creation of a managing company for Russian grids on the basis of IDGC Holding (Russian Grids) and possible privatization of several affiliates in 2013 appeared. The news was positive for sector shares, including our shares (average price as of 31.10.2012 – RUR 0.16, as of 30.11.2012 – RUR 0.1884, as of 28.12.2012 – RUR 0.2107).

Common shares of the Company are traded on MICEX, Quotation list A2 (mrku ticker)

According to the MICEX data, the overall trading volume of our shares in money terms totaled RUR 1 002.3 mln., in quantitative terms – 4 869.0 mln. shares (as of 2011, RUR 928.1 mln. and 3 855.6 mln. shares). As of 2012 the market capitalization of IDGC of Urals increased by 4.6% (or RUR 819.2 mln.) in comparison to the beginning of 2012 and totaled RUR 18.4 bln. (at the beginning of 2012 – RUR 17.6 bln.)

Key trading results
20112012
Trading volume, RUR thous.928,134.21,002,261.7
Trading volume, thous. shares3,855,578.24,868,959.0
Number of transactions23,26815,291
Minimal annual price, RUR0.14740.1405
Maximum annual price, RUR0.35920.2646
Average weighted price as of the year-end, RUR0.19950.21071
Market capitalization as of the year-end, RUR17,442,381,899.3418,420,729,034.45