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Annual General Meeting of Shareholders of PJSC “Rosseti” Concerning 2015 Year-End Results Took Place

Annual General Meeting of Shareholders of PJSC “Rosseti” Concerning  2015 Year-End Results Took Place 01.07.2016

On June 30 in Moscow, there was the Annual General Meeting of Shareholders of PJSC “Rosseti” under the supervision of the Chairman of the Board of Directors of PJSC “Rosseti” Alexander Novak, the Minister of Energy of the Russian Federation.

The results of production and financial activities of the company in 2015 were summed up at the meeting.

In the course of the shareholders’ voting, the issues concerning approval of the annual report of PJSC “Rosseti”, annual financial statements, concerning election of new members of the Board of Directors, the Internal Audit Commission, as well as concerning allocation of profits, payment of dividends according to 2015 year-end results, were considered.

Delivering a report on the main directions of the company’s activity and performance in 2015, Oleg Budargin, the General Director of PJSC “Rosseti”, noted that the past 2015 was the first year of implementation of the Long-Term Development Program elaborated in 2014. “Despite the challenging economic environment, Rosseti continued to develop steadily in line with the pursued course towards reliability and safety of energy-saving, ensuring availability of the energy infrastructure. We achieved significant results in the field of optimization of costs, created conditions to contain the tariff raising, ensured the availability of networks, cut time and costs of connection to power networks for our consumers,” O. Budargin said.

In 2015, PJSC “Rosseti” considerably improved its key performance indicators associated with technical activities of the company. The specific accident rate reduced by 25%, the average duration of power supply interruptions for the customers reduced by 4% and dropped to the level of 2.9 hours.

Due to implementation of a set of actions to optimize the loss of electric power in 2015, savings amounted to 1,436.8 million kWh.

In 2015, PJSC “Rosseti” paid significant attention to the deliberate policy to increase operational efficiency and reduce costs. As a result, savings in operating expenses over 2015 amounted to 43.1 billion rubles taking into account the inflation with respect to the level of 2012. Specific operating expenses decreased by 12% while the target value is 2-3%.

In 2015, PJSC “Rosseti” switched over to the Uniform Procurement Standard developed by the Company with the assistance of the Federal Antimonopoly Service of Russia and the Ministry of Energy of Russia. The total economic effect of more open procurement activity amounted to 32.2 billion rubles.

As per 2015 year-end results, systematic work on simplification of the network connection procedure enabled us to reduce the number of stages of technological connection to 3 and the cost of the technological connection services – by 23%.

We managed to cut down the terms of technological connection from contract to statement for small and medium enterprises by 40% as compared to 2013.

As per 2015 year-end results, prices of shares of PJSC “Rosseti” showed a positive trend.

In the course of the Annual General Meeting, the shareholders also considered the recommendations made by the Board of Directors of PJSC “Rosseti” to pay 1.785 billion rubles as dividends for the first quarter of 2016: under preference shares of the Company – from the Company’s net profit in the amount of 154,653,000 million rubles in monetary form (0.07452614 rubles per preference share), under common shares of the Company – from the Company’s net profit in the amount of 1,630,317,000 rubles in monetary form (0.00831813 rubles per common share).

Information about the voting results and the decisions made will be disclosed by the Company in the Interfax newswire at the latest on July 5, 2016.


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