Message from the Chairman of the Board of Directors of PJSC Rosseti South

GRI 2-22

Respected shareholders, investors and colleagues,

Thanks to the experience and expertise of its management team, Rosseti South managed to efficiently tackle the tasks at hand, continue commissioning and upgrading energy facilities, and roll out strategically important measures aimed at strengthening energy security in the southern regions of the country.

Rosseti South is the largest power grid organisation in the macroregion and a major contributor to the economic and social development of four southern regions of the Russian Federation: Astrakhan, Volgograd, Rostov Oblasts and the Republic of Kalmykia.

The key event of 2024 was Rosseti South being granted the status of a systemic territorial grid organisation, which will enable the Company to effectively pursue a unified technical policy in the regions where it operates and continue consolidation of its power grid assets.

Strategic goals

Despite the difficulties caused by external challenges, Rosseti South demonstrated stable performance. Thanks to the high level of expertise and a team of responsible and experienced professionals, management was able to effectively address economic risks. The Company ensured that the reliability and quality of services provided met the required targets.

Considerable attention was paid to achieving strategic goals and addressing priority tasks such as technological and innovative development, ensuring comprehensive security, optimising the logistics system for material and technical support and centralising procurement activities, reducing electricity losses, developing human resources and increasing labour productivity.

Key indicators

Under the direction of the Board of Directors, management conducted a systematic effort to boost efficiency, which helped Rosseti South enhance its production indicators and guarantee steady financial performance during the reporting year. Net profit for 2024 amounted to over RUB 7 billion.

The Company completed a number of projects that helped boost the economic potential of the regions. An investment of approximately RUB 6.6 billion was made in the development of the distribution grid infrastructure to improve the reliability and quality of power supply to consumers.

Considerable work went into expanding the range of additional paid services that help grow the Company’s non-tariff service revenue. Plans to improve customer service and consumer care formats were brought to life.

Effective management

As the enabler of the strategic development of Rosseti South, the Board of Directors focused its efforts on constructive cooperation between all the Company’s shareholders and their representatives in the reporting period.

In 2024, the Board of Directors held 40 meetings, addressing approximately 200 issues. Among the momentous decisions were the approval of internal documents: Environmental Policy and Antimonopoly Compliance Policy, the update of the Programme for the Upgrade (Renovation) of Power Grid Facilities, and the Roadmap for the Development of Additional (Non-Tariff) Services. The revised versions of the Regulations on the Human Resources and Remuneration Committee, on the Reliability Committee of the Board of Directors, and the Regulations on corporate support for employees of Rosseti South’s branches in improving their housing conditions, among others, were approved.

Priorities

Stable financial and economic performance, solid technical capabilities, highly qualified management and advanced professional practices are all indicative of stable development. The Company seeks to build long-term, cooperative and trusting relationships with its stakeholders. The results of the past year lay a solid foundation for further successful work and realisation of strategic plans.

The priorities of Rosseti South remain unchanged, namely reliable and high-quality power supply to consumers, achievement of key performance indicators, information transparency, ensuring a high level of organisational, operational and investment efficiency, and promoting the development of the regions where it operates.