Transparency for all stakeholders

Transparency for all stakeholders

Declaration of commitment to transparency principles

Information policy of Federal Grid Company is aimed at ensuring the Company’s effective interaction with shareholders, investors and other stakeholders, achieving the full realisation of their rights to receive relevant and reliable information required for taking informed investment and management decisions.

Federal Grid avoids a formalistic approach to disclosure and goes beyond strict compliance with applicable legislative requirements. The Company strives to provide stakeholders with all material facts and events related to its activities as soon as practicable using various disclosure forms and channels, primarily electronic.

When providing information, the Company maintains a reasonable balance between its own and stakeholder interests, including restrictions on access to insider information and trade secrets.

New Regulations on Information Policy

In 2015, in accordance with the Action Plan (‘road map’) on implementing key provisions of the Russian Corporate Governance Code, we developed a new version of the Regulations on Information Policy of Federal Grid Company that was approved by the Board of Directors (Minutes No. 280 dated 24 August 2015).

In compliance with the Code recommendations, the Regulations set a list of additional information,

which the Company undertakes to disclose beyond that which is statutorily required. It includes, among other things, information on the corporate governance system, work of the governing bodies, capital structure, financial activities and financial position of Federal Grid.

The Chairman of the Company’s Management Board is responsible for the completeness and accuracy of the information disclosed, ensures procedures for the preparation, approval, control of content and time frames of disclosures, appropriate document storage system, functionality and safety of information resources. The Board of Directors is responsible for monitoring compliance with the Company’s information policy.

The full text of the Regulations on Information Policy of PJSC FGC UES is available on our website www.fsk-ees.ru section Company / corporate governance / corporate documents /

Details on the Company’s compliance with the information policy are available in paragraphs 6.2 and 6.3 of the Report on the Company’s compliance with principles and recommendations of the Corporate Governance Code in Appendix 3 to the Annual Report

Question for Dmitry Klokov - Director of External Communications – Head of External Communications and Government Relations Department

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WHAT DOES TRANSPARENCY MEAN TO FEDERAL GRID COMPANY IN THE CONTEXT OF THE LONG-TERM DEVELOPMENT PROGRAMME?

“First of all, transparency is the norm for such a large public infrastructure company as Federal Grid. Of course, we strive to ensure that our operations are transparent and predictable for the State, our customers, shareholders, suppliers, contractors and other stakeholders.

This fully applies to priorities of the Long-Term Development Programme and its implementation. Particularly as our Company is progressing. Today, our Company provides uninterrupted electricity supply, high quality services and competitive conditions for the industry, military industrial complex and other consumers who connect directly to UNEG. Since it has become our long-term priority, we deliver relevant information to all stakeholders. Moreover, measures were implemented by the Federal Grid’s management that enabled us to strengthen the Company’s financial position and achieve the best, for the last four years, results for shareholders and investors.

It is important to demonstrate what steps we had taken and explain how Federal Grid plans to maintain its positions in the future.”

Disclosure Channels

Federal Grid Company uses various disclosure channels, primarily electronic, which ensure free, easy, indiscriminate and free-of-charge access to information for all stakeholders.

We regularly update our corporate websitewww.fsk-ees.ru, which sections contain both mandatory and voluntary disclosures on all areas of the Company’s business, information for shareholders and investors, customers, suppliers, and employees, the latest news and press-releases, financial statements, annual reports and reports on sustainable development. We ensure that the structure of our website and its interactive tools facilitate quick and easy search of necessary information.

In addition to publishing significant information on its website, the Company discloses information on the website of Interfax agency, on the home pages of the Moscow Exchange, London Stock Exchange, in the print edition of Rossiyskaya Gazeta, as well as disseminating price-sensitive information through the RNS portal.

The Company pays a special attention to such important tools for communication with its shareholders, investors and other stakeholders as annual and social reports. We strive to constantly improve the quality of our corporate reports,

RECOGNITION – Expert community evaluation of 2014 Annual Report of Federal Grid Company

• Best Annual Report of a Company with Capitalisation from 30 to 200 billion roubles
• Best Annual Report in the Electric Energy Sector
• Best Presentation of Company Strategy and Investment Attractiveness in an Annual Report
• XVIII Annual Report Competition orginised by the Moscow Exchange and RCB Media Group
• Best Annual Report in Non-Financial Sector
• XVII Annual Report Competition organised by the Expert RA rating agency
• Best Annual Report of the Industry (infrastructure)
• Best E-Annual Report (III position in the nomination)
• XII Open Annual Report Competition organised by the Administration of Krasnodar Krai

combining a clear structure and logic with the brevity and depth of statements.

Public Relations

Federal Grid Company closely engages with stakeholders on a regular basis, including government authorities, public organisations and Mass Media. To implement the Company’s policy in this area, a Department of External Communications and Government Relations has been created and operates actively in various areas, including engaging with Mass Media and stakeholders, arranging specific events and projects aimed at promoting activities of the backbone grid complex. PR projects of Federal grid Company are implemented within the framework of the Unified Information Policy of PJSC Rosseti.

Communications with Mass Media and Public Organisations

During 2015, the Company actively engaged with Mass Media. In January, the Chairman of the Federal Grid’s Management Board, Andrey Murov, gave an interview to the newspaper Vedomosti, where he spoke about the Company’s activities in a changing macro-economic environment and main directions for the future development.

As part of the Company’s participation in 2015 St. Petersburg International Economic Forum, the Chairman of the Federal Grid’s Management Board gave interviews to the TV channel Russia 24, and the radio stations Kommersant FM and Business FM. Andrei Murov told about areas for the development of the Federal Grid’s infrastructure in the regions, the Company’s investment programme implementation tools, as well as on the results of the Company’s operations and measures aimed at maintaining high level of reliability and development of the electric grid complex of the Russian Federation.

In September 2015, the Head of Federal Grid Company, Andrey Murov, was elected a Chairman of the Russian National Committee of the International Council on Large Electric Systems (RNC CIGRE) a leading international organisation in the field of electric energy industry. And in November in Paris, he met with the President of CIGRE Klaus Froehlich, at which the parties discussed the extension of participation of the Russian members in the work of CIGRE and prospects of research in the field of global electric energy industry.