Committees under the Board of Directors

Committees of the Board of Directors are auxiliary consultative and advisory bodies of the Board of Directors of the Company. The committees are not management or control bodies of the Company.

The objectives, tasks and powers of the Committees, as well as the procedure for their formation and operation, are defined in the Regulations for each Committee, approved by the Board of Directors and posted on the Company’s official website. The Committees work is aligned with their action plans approved annually at the Committees’ meetings.

The Committees comprise representatives of various shareholder groups of the Company and the Company’s management, which ensures a multifaceted approach to the formation and adoption of objective and balanced decisions and the issuance of recommendations to the Board of Directors and the executive body of the Company.

The Committees are accountable to the Board of Directors of the Company. To fulfil the recommendations of the Code of Corporate Governance of the Bank of Russia, the Chairmen of the Committees submit annual progress reports to the Board of Directors. The reports of the Company’s Board of Directors Committees on the work done during the 2023-2024 corporate year were reviewed by the Board of Directors on 8 July 2024 (Minutes No. 582/2024 dated 8 July 2024).

Audit Committee

The Committee’s operations are governed by the Regulations on the Audit Committee of the Board of Directors of PJSC Rosseti South.

Quantitatively, the Committee shall consist of at least three members.

The committee during 2024 included:

• During the period from 1 January 2024 to 20 August 2024, two (2) of the three (3) elected members were independent directors and simultaneously members of the Company’s Board of Directors, and the Board was chaired by an independent director.
• During the period from 21 August 2024 to 31 December 2024, two (2) of the three (3) elected members were independent directors and simultaneously members of the Company’s Board of Directors, and the Board was chaired by an independent director.

In doing so, the Company shall endeavour to ensure that all or at least a majority of the members of the Committee are independent directors.

Activities in 2024

In the reporting year, 19 meetings were held, including four meetings in person (joint presence), and 39 issues were addressed.

Topics and categories of issues

In 2024, the Committee issued 20 recommendations to the Company’s Board of Directors. The recommendations issued to the Board of Directors based on the Committee’s work in 2024 enabled the improvement of financial reporting and audit practices, which is in the interests of the Company’s shareholders.

Personnel and Remuneration Committee

The Committee’s activities are regulated by the Regulations on the Personnel and Remuneration Committee of the Board of Directors of the Company.

Quantitatively, the Committee’s membership shall be determined by resolution of the Board of Directors of the Company and shall consist of at least three members.

Activities in 2024

During the reporting year, the Committee held 15 meetings, at which 18 issues were addressed.

In the reporting period, the Committee issued seven recommendations to the Board of Directors.

During the reporting period, particular attention was paid to:

• Reviewing the report of the Personnel and Remuneration Committee of the Board of Directors of PJSC Rosseti South for the 2023–2024 corporate year
• Reviewing the report of the Company’s Corporate Secretary on the results of work for the 2023–2024 corporate year
• Selecting and evaluating the persons to be appointed to certain positions in the Company’s executive office and provision of recommendations to the Company’s Board of Directors
• Amending the terms of the employment contract of the Company’s General Director
• Approving key performance indicators and functional key performance indicators for the management of PJSC Rosseti South for 2024–2026
• Reviewing the results of the self-assessment of the performance of the Board of Directors and the Committees of the Board of Directors of PJSC Rosseti South for the 2023–2024 corporate year

At the Committee meeting, which was held in person, the updated lists of the Company’s management and youth talent pools were carefully reviewed and approved.

Strategy Committee

The Committee’s activities are regulated by the Regulations on the Strategy Committee of the Board of Directors of the Company.

The quantitative composition of the Committee shall be determined by resolution of the Board of Directors of the Company and may not be less than five or more than 11 persons.

Activities in 2024

During the reporting year, the Committee held 25 meetings, at which 45 issues were addressed.

In the reporting period, the Committee issued 45 recommendations to the Company’s Board of Directors, including in the area of strategic development and priority activities, business planning, investment activities, performance evaluation (KPIs), and risk management.

Reliability Committee

The Committee’s activities are regulated by the Regulations on the Reliability Committee of the Board of Directors of the Company.

Quantitatively, the Committee’s membership shall be determined by resolution of the Board of Directors of the Company and shall consist of at least seven members.

Activities in 2024

In the reporting year, the Committee held 14 meetings, including two meetings in the form of joint attendance (in person), and considered 22 issues.

In 2024, the Committee issued 6 recommendations to the Company’s Board of Directors.

In the reporting period, special attention was paid to the passing of the autumn-winter period of 2023–2024, preparation for work and work in the thunderstorm and fire seasons of 2024, as well as the enforcement of instructions issued by supervisory authorities and measures defined by acts of investigation of mass violations that occurred in 2024. These issues were scrutinised during the Committee’s in-person meetings and recommendations were made to the Company’s management.

Grid Connection Committee

The activities are regulated by the Regulations on the Grid Connection Committee.

Quantitatively, the Committee’s membership shall be determined by resolution of the Board of Directors of the Company and shall consist of at least five members.

Activities in 2024

In the reporting year, the Committee held 12 meetings, including one meeting in the form of joint attendance (in person), and addressed 17 issues.

In the reporting period, the Committee issued seven recommendations to the Board of Directors.

In the reporting period, particular attention was paid to updating and implementing the Roadmap for the Development of Additional (Non-Tariff) Services of Rosseti South, as well as analysing the current situation in Rosseti South’s activities related to grid connection. These issues were reviewed at in-person meetings of the Committee, and the Company’s management was given appropriate recommendations and instructions.