Quarterly report public Joint Stock Company rosseti issuer Code: 55385-E

Contents 3
Introduction 4
Section I. Details of the Issuer’s Bank Accounts, Auditor (Audit Organization), Appraiser, and Financial Advisor and the Individuals Who Signed This Quarterly Report 6
1.1. Bank Account Details of the Issuer 6
1.2. Information Concerning the Issuer’s Auditor(s) 8
1.3. Information Concerning the Issuer’s Appraiser(s) 13
1.4. Information Concerning the Issuer’s Advisors 13
1.5. Information Concerning the Individuals Who Signed This Quarterly Report 13
Section II. Basic Information Concerning the Financial and Economic Condition of the Issuer 13
2.1. Financial and Economic Performance Indicators of the Issuer 13
2.2. Market Capitalization of the Issuer 15
2.3. Liabilities of the Issuer 15
2.3.1. Borrowings and Accounts Payable 15
2.3.2. Credit History of the Issuer 18
2.3.3. Obligations of the Issuer with Regard to Its Collateral 21
2.3.4. Other Obligations of the Issuer 23
2.4. Risks Associated with the Acquisition of Securities (Being) Placed 23
2.4.1. Industry-Specific Risks 24
2.4.2. Country and Regional Risks 26
2.4.3. Financial Risks 27
2.4.4. Legal Risks 29
2.4.5. Reputational Risk 30
2.4.6. Strategic Risk 30
2.4.7. Risks Associated with the Issuer’s Activities 30
Section III. Detailed Information Concerning the Issuer 33
3.1. Establishment History and Development of the Issuer 33
3.1.1. Data Concerning the Issuer’s Corporate Name 33
3.1.2. Information Concerning the Issuer’s State Registration 35
3.1.3. Information Concerning the Issuer’s Establishment and Development 35
3.1.4. Contact Details 37
3.1.5. Taxpayer Identification Number 38
3.1.6. Branches and Representative Offices of the Issuer 38
3.2. Core Business Activities of the Issuer 38
3.2.1. Core Economic Activities of the Issuer 38
3.2.2. Core Business Activities of the Issuer 39
3.2.3. Materials, Goods (Raw Materials) and Suppliers of the Issuer 42
3.2.4. Target Markets for the Issuer’s Products (Work, Services) 43
3.2.5. Information Concerning the Issuer’s Permits (Licenses) or Authorizations for Specific Work Types 44
3.2.6. Information Concerning Activities of Certain Categories of Issuers 44
3.2.7. Additional Requirements Applicable to Issuers Whose Core Activities Are Mining Operations 44
3.2.8. Additional Requirements Applicable to Issuers Whose Core Activities Are Telecommunications Services 44
3.3. Plans for Future Activities of the Issuer 44
3.4. Membership of the Issuer in Banking Groups, Banking Holding Companies, Holding Companies and Associations 45
3.5. Issuer-Controlled Entities of Material Importance to the Issuer 47
3.6. Composition, Breakdown and Value of the Issuer’s Fixed Assets, Information Concerning Plans for the Acquisition, Replacement, Retirement of Fixed Assets and All Evidence of Encumbrance of the Issuer’s Fixed Assets 74
Section IV. Information Concerning the Issuer’s Financial and Economic Activities 75
4.1. Financial and Economic Performance of the Issuer 75
4.2. Liquidity of the Issuer, Capital and Current Asset Adequacy 78
4.3. Financial Investments of the Issuer 79
4.4. Intangible Assets of the Issuer 89
4.5. Information Concerning the Policy and Expenses Incurred by the Issuer in the Area of Scientific and Technological Development, in Respect of Licenses and Patents, New Developments and Research 91
4.6. Analysis of Trends in the Issuer’s Core Business 91
4.7. Analysis of Factors and Conditions Affecting the Issuer’s Activities 92
4.8. Competitors of the Issuer 93
Section V. Detailed Information Concerning Individual Members of the Issuer’s Management Bodies, the Issuer’s Bodies Controlling Its Financial and Economic Activities and Brief Information Concerning the Issuer’s Employees (Personnel) 93
5.1. Details of the Structure and Jurisdiction of the Issuer’s Management Bodies 93
5.2. Information Concerning Individual Members of the Issuer’s Management Bodies 102
5.2.1. Members of the Board of Directors (Supervisory Board) of the Issuer 102
5.2.2. Information Concerning the Sole Executive Body of the Issuer 125
5.2.3. Members of the Collegial Executive Body of the Issuer 127
5.3. Information Concerning the Amount of Remuneration and/or Reimbursement of Expenses for Each Management Body of the Issuer 135
5.4. Information Concerning the Structure and Jurisdiction of Bodies Exercising Control of the Issuer’s Financial and Economic Activities and Concerning the Organization of the Risk Management and Internal Control System 138
5.5. Information Concerning Individual Members of Bodies Exercising Control of the Issuer’s Financial and Economic Activities 155
5.6. Information Concerning the Amount of Remuneration and/or Reimbursement of Expenses for the Body Exercising Control of the Issuer’s Financial and Economic Activities 165
5.7. Data Concerning the Headcount and High-Level Data Concerning the Composition of the Issuer’s Personnel (Employees) and Changes in the Issuer’s Employee (Personnel) Headcount 166
5.8. Information Concerning Any Obligations of the Issuer to Its Employees (Personnel) Regarding Their Possible Participation in the Authorized Capital of the Issuer 166
Section VI. Information Concerning the Issuer’s Members (Shareholders) and Related-Party Transactions Completed by the Issuer 167
6.1. Information Concerning the Total Number of the Issuer’s Shareholders (Members) 167
6.2. Information Concerning the Issuer’s Members (Shareholders) Owning at Least Five Percent of Its Authorized Capital or at Least Five Percent of Its Ordinary Shares; Information Concerning Persons Controlling Such Members (Shareholders) or, in the Absence of Such Persons, Concerning Such Members (Shareholders) Owning at Least 20 Percent of the Authorized Capital or at Least 20 Percent of Their Ordinary Shares 167
6.3. Information Concerning the Stake Held by the Government or Municipality in the Issuer’s Authorized Capital and Special Right (‘Golden Share’) 169
6.4. Information Concerning Restrictions on Participation in the Issuer’s Authorized Capital 169
6.5. Information Concerning Changes in the Composition and Value of Stakes Held by the Issuer’s Shareholders (Members) Owning at Least Five Percent of Its Authorized Capital or at Least Five Percent of Its Ordinary Shares 169
6.6. Information Concerning Related-Party Transactions Completed by the Issuer 171
6.7. Information Concerning the Value of Accounts Receivable 172
Section VII. Accounting (Financial) Statements of the Issuer and Other Financial Information 176
7.1. Annual Accounting (Financial) Statements of the Issuer 176
7.2. Interim Accounting (Financial) Statements of the Issuer 187
7.3. Consolidated Financial Statements of the Issuer 192
7.4. Information Concerning the Accounting Policy of the Issuer 192
7.5. Information Concerning Total Exports and Exports as a Percentage of Total Sales 192
7.6. Information Concerning Material Changes in the Composition of the Issuer’s Property After the Last Date of the Most Recently Closed Reporting Year 192
7.7. Information Concerning the Issuer’s Being a Party to Litigation if Such Litigation May Materially Affect the Issuer’s Financial and Economic Activities 192
Section VIII. Detailed Information Concerning the Issuer and Issue-Grade Securities Placed by the Issuer 192
8.1. Additional Information Concerning the Issuer 192
8.1.1. Information Concerning the Value and Structure of the Issuer’s Authorized Capital 192
8.1.2. Information Concerning Changes in the Issuer’s Authorized Capital 194
8.1.3. Information Concerning the Procedure for Convening and Holding the Meeting (Session) of the Issuer’s Supreme Management Body 194
8.1.4. Information Concerning For-Profit Organizations in Which the Issuer Owns at Least Five Percent of Authorized Capital or at Least Five Percent of Ordinary Shares 199
8.1.5. Information Concerning Material Transactions Completed by the Issuer 210
8.1.6. Information Concerning the Issuer’s Credit Ratings 212
8.2. Information About Each Category (Type) of the Issuer’s Shares 214
8.3. Information Concerning the Previous Issues of Issue-Grade Securities of the Issuer Other than Shares 218
8.3.1. Information Concerning the Issues All of Whose Securities Were Redeemed 218
8.3.2. Information Concerning Issuances Securities from Which Are Outstanding 221
8.4. Information Concerning the Person(s) That Provided Collateral for Collateralized Bonds of the Issuer and Concerning Collateral for Collateralized Bonds of the Issuer 228
8.4.1. Additional Information Concerning Mortgage Backing for Mortgage-Backed Bonds of the Issuer 228
8.4.2. Additional Information Concerning Cash Backing for Cash-Backed Bonds of the Issuer 228
8.5. Information Concerning Entities Recording the Rights to the Issue-Grade Securities of the Issuer 228
8.6. Information Concerning Legislative Acts Governing Capital Import/Export Aspects Which May Affect Dividend, Interest and Other Payments to Nonresidents 229
8.7. Information Concerning Declared (Accrued) and/or Paid Dividends on the Issuer’s Shares and Yield on the Issuer’s Bonds 230
8.7.1. Information Concerning Declared and Paid Dividends on the Issuer’s Shares 230
8.7.2. Information Concerning Accrued and Paid Yields on the Issuer’s Bonds 234
8.8. Other Information 236
8.9. Information Concerning Represented Securities and the Issuer of Represented Securities, Title to Which Is Certified by Russian Depositary Receipts 236
Appendix to the Quarterly Report. Auditor’s Report on the Annual Accounting (Financial) Statements of the Issuer .................................................................................................................................................................. 210
Appendix to the Quarterly Report. Appendix to the Annual Balance Sheet ..................................................... 210