Message from the Chairman of the Management Board, General Director of PJSC Rosseti South

GRI 2-22

Respected shareholders, partners and colleagues,

2024 was a prosperous and productive year for Rosseti South. Positive production results and consistent efficiency improvements, supported by the Board of Directors, enabled growth in key financial indicators. The Company realised the large-scale repair and investment programme, fulfilled its obligations to consumers in terms of grid connection, and maintained its course towards further sustainable development.

Investments in reliability

As the largest power grid company in southern Russia, Rosseti South made a big difference in growing the economy and making regional power grids more reliable. The Company builds and upgrades energy facilities and creates new energy capacities. The investment programme funding for the reporting period amounted to RUB 6.6 billion. More than half of these funds were allocated for the development of infrastructure for subsidised grid connections. A total of 269 MVA of capacity was commissioned and 1,400 km of new power lines were built.

The unconditional priority for Rosseti South is the delivery of the maintenance and repair programme and timely preparation for peak load seasons. Almost RUB 3 billion was allocated for these purposes in the regions where the Company operates. The physical indicators of the repair programme were fulfilled by more than 100%. As a result, the number of process disruptions in the distribution grid dropped by 6% and in the 110 kV and higher grid by 9% year-on-year.

There was a special focus on cutting down on electricity losses. The economic effect of these initiatives means extra funds for upgrades and new construction. The Company achieved its planned target for losses, with significant savings of 28 million kWh.

Regional development

Over the year, Rosseti South fulfilled 16,000 grid connection contracts and provided new consumers with over 480 MW of capacity. The Company provided power supply to social, healthcare, educational, cultural, sports, infrastructure, agro-industrial and business facilities. Among the large enterprises connected to the power grid are Sady Pridonia in the Volgograd Oblast, the Krasinskaya solar power plant in Kalmykia, and the Kazachya wind power plant in the Rostov Oblast.

Rosseti South continued to participate in projects to develop charging station infrastructure for electric transport, street lighting systems, and connect facilities as part of national projects such as Education, Healthcare, Housing, and others.

As a systemic territorial grid organisation, Rosseti South remains committed to the systematic consolidation of its power grid assets. During the reporting period, 1,300 km of PTLs and 700 MVA of transformer capacity were put on the books.

Social responsibility

The Company remained in close contact with consumers. During the reporting period, over 332,000 calls and messages were processed, most of which were related to grid connection and the provision of additional services.

As a socially responsible entity, Rosseti South carries out a range of projects dedicated to improving working conditions and providing a wide range of benefits and guarantees for its employees.

In line with its environmental policy, Rosseti South allocated over RUB 45 million to environmental protection measures.

Sustainable development

Rosseti South remains focused on key priorities such as ensuring reliable, uninterrupted power supply to consumers, upgrade of the power grid, and economic efficiency. The Company carries on contributing to the development of the energy sector and economy of the southern regions of the country.

We are well equipped with all the necessary conditions and resources to consistently pursue our strategic objectives, while taking into account the needs of all stakeholders, including shareholders, partners and residents of southern Russia.