Public Joint Stock Company ROSSETI

2020 ANNUAL FINANCIAL REPORT in compliance with the UK Disclosure and Transparency Rules

April 2021 Moscow

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Company review

In accordance with Russian Federation Presidential Decree No. 1567 of November 22, 2012 "On Open Joint Stock Company Russian Grids" and the Electric Grid Sector Development Strategy No. 511-r of April 3, 2013, the following functions are assigned to ROSSETI:

 strategic functions;

 coordinating functions;

 supervising functions;

 addressing the institutional challenges facing the entire industry;

 participation in the consolidation of local grid operators (LGOs) in order to ensure the required level of reliability and quality of power supply to consumers.

History

1992–2008 2003–2008 2008–2013 2014–…

Establishment and Restructuring the energy Structuring of the ROSSETI Development and digital activities of RAO industry Group transformation of the UES of Russia JSC ROSSETI Group

1992 Based on the 2003 The Board of Directors of RAO 2012 The Decree of the President of 2017 Ordinary shares of Decree of the UES of Russia JSC developed and the Russian Federation sets out the PJSC ROSSETI were transferred to President of the adopted the strategy of RAO UES of main tasks for further restructuring Level 1 quotation list of the Moscow Russian Federation Russia JSC for 2003–2008 (5 + 5) of the sector, including the Exchange; PJSC ROSSETI's securities which was aimed at creating a RAO UES of Russia, a establishment of JSC ROSSETI to were included in the FTSE4Good competitive market in certain Russian energy improve the efficiency and Emerging Index calculation base segments of the industry, improving development of the electric grid grounded on sustainability criteria. company, was the efficiency of electric power sector of the Russian Federation, established in 1992 companies and setting the stage for coordinate the management of this 2018 The Company's Board of to preserve the the development of the industry sector, and restrain the growth of Directors approved the Digital integrity of the based on private investment. tariffs for end users of electrical Transformation 2030 Concept, domestic energy power. which meets the goals and 2004–2007 Eleven interregional system and objectives of the state program distribution grid companies were 2013 JSC IDGC Holding was Digital Economy of the Russian centralize the established, bringing together renamed JSC ROSSETI. The state- Federation. management of the distribution grids on a territorial owned stake in JSC FGC UES was electric power basis. included in the authorized capital of 2019–2020 The Company's Board of sector. The JSC ROSSETI. The consolidation of Directors approved the 2008 After the spinning out WGC 5 company launched the state-controlled power grid Development Strategy and the (wholesale generating companies), 6 assets within a single company was Long-Term Development Program its operations on TGC (territorial generating December 31, 1992. finalized. of PJSC ROSSETI and its subsidiaries companies), Inter RAO, SO UES and affiliates through 2030. (System Operator of the Unified Energy System), and JSC IDGC Holding 2020 The integration and efficiency (which owns stakes in IDGCs and of management at PJSC ROSSETI and distribution grid companies), RAO PJSC FGC UES was improved by UES of Russia merged with JSC FGC transferring the powers of the single UES and ceased to exist. executive body of PJSC FGC UES to the management company, PJSC ROSSETI.

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Structure of the ROSSETI Group as of December 31, 2020

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ROSSETI Group

Industry: electric power Status: natural monopoly Controlling shareholder: 88.04 % of ROSSETI's authorized capital is owned by the state Geographic reach: 80 regions of the Russian Federation Services: - electric power transmission and distribution; - integration of consumers into power grids

The largest systemic electric grid company

Structure: - 26 grid companies; Group assets: - 9 retail companies; 2.4 mn km of transmission lines - 5 R&D, testing companies; 528 thsd substations - 27 service, maintenance, and repair companies; Average headcount of the Group: - 2 construction and procurement; 216,5 thsd employees - 15 other companies

The ROSSETI Group is the monopolist in the electrical power transmission and distribution market. The market share controlled by the companies of the Group made 73.5 % in 2020.

Consolidation of electric grid assets1 Acquisition of power grid facilities, MVA, Lease of power grid facilities, MVA, km km

64,101 22,991 56,683 49,441

12,351 24,726 21,406 24,813 5,618 3,093 1,986 570

2018 2019 2020 2018 2019 2020

Transformer capacity Power lines Transformer capacity Power lines

Key performance indicators of the ROSSETI Group 2018 2019 2020 Length of transmission lines, mn km 2.35 2.37 2.4

1 During the relevant periods. 4

Number of SS and TS, thsd pcs 507 517 528 Capacity of SS and TS, GVA 792 802 809 Amount of connected capacity of power receivers of 13,905 11,945 10,485 consumers, MW Average headcount of power grid subsidiaries and 217.3 217.5 212.2 affiliates, thsd people

Key events in 2020 Finances International rating agencies Standard & Poor’s and Moody’s maintained the credit ratings of PJSC FGC UES at a sovereign level of the Russian Federation (BBB-, outlook stable and Baa3, outlook stable, respectively).

The ACRA rating agency affirmed the Company's AAA (RU) credit rating with a stable outlook. This is the highest ranking on the agency's rating scale.

ROSSETI was awarded Cbonds’ Best Primary Placement Deal in the Energy Sector for bond issue of BO-001R-02 series. At the time of the placement, ROSSETI reached a historically minimum coupon rate for a market issue for a comparable period among corporate borrowers over the entire existence of the debt capital market of the Russian Federation.

The Company's shareholders approved the all-time record dividend payment at the end of 2019. Taking into account the interim dividends for the first quarter of 2019 ROSSETI paid dividends in the amount of 23 billion RUB.

The ROSSETI Group has been improving its reliability performance for the last three years: the ROSSETI Group has consistently achieved growth in the reliability and safety of the electricity supply it provides to consumers even in the face of weather hazards.

Operating and The construction of Kamenka new highly automated substation with digital data investment exchange rated 110/10 kV in St. Petersburg has been completed. It will become the activities power source for four residential complexes with a population of more than 80,000 people and a special economic zone where innovative and knowledge-intensive production are concentrated. It will give power to new applicants and improve the quality and reliability of the energy supply for existing consumers.

Gorod first highly automated substation with digital data exchange of the NCFD rated 110 kV was launched In Grozny. The new fully digital facility with a capacity of 80 MVA will become Grozny's main power center, providing reliable power to more than 300,000 residents of the city.

Strategy and The ROSSETI Group Long-Term Development Program until 2030, aimed at achieving Long-Term the goals and objectives defined in the Development Strategy, was approved. LTDP Development 2020-2030 includes a program of key events in all areas of the Group's activities, including digital transformation, innovative development, development of new types of business, personnel policy, etc.

International PJSC ROSSETI and JSC National Power Grid of Uzbekistan signed an agreement on the activities possibility of joint projects in the field of construction and modernization of the power grid infrastructure of the Republic of Uzbekistan. It would entail cooperation in

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the development of schemes and programs for the development of electric systems of the Republic of Uzbekistan and neighboring countries.

ROSSETI and the Eurasian Development Bank signed an agreement on strategic cooperation. The agreement is aimed at strengthening international cooperation and the development of foreign economic activity in the EDB member states — Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

GlobalDSO's permanent platform has been launched to maintain a constant dialog at the level of the executives of the largest international electric distribution companies.

Specialists of the ROSSETI Group took part in global research by the World Energy Council (Issues Monitor 2020; World Energy Trilemma Index 2020; The role of power grid companies in the energy transition; Scenarios of post-development).

Corporate ROSSETI was granted the powers of the sole executive body of FGC UES on the basis governance of a contract with FGC UES.

The Russian Institute of Directors confirmed the national corporate governance rating of ROSSETI at 7++. The society confirms its National Corporate Governance Rating for the fifth consecutive year.

On June 1, 2020, the Annual General Meeting of Shareholders of the Company was held in the form of absentee voting. A number of important decisions were made, including the election of members of the Board of Directors, the payment of dividends at the end of 2019, and the approval of a new edition of the Company's Articles of Association.

Sustainable AK&M rating agency assigned the Company a sustainability rating of A++ on the development national scale. This rating means that ROSSETI belongs to the class of Russian companies with the highest degree of sustainability. There is no risk of harming the opportunities of future generations.

ROSSETI Group has fully restored the world's only hyperboloidal multi-sectional power transmission line pylon, made in the form of a load-bearing mesh shell, designed by the outstanding Russian engineer V. Shukhov. This design is a unique monument of the Russian architectural avant-garde, recommended for inclusion in the UNESCO World Heritage List.

Digital The ROSSETI Group has introduced four highly automated substations with digital transformation data exchange into operation. The facilities were launched in KhMAO (deep modernization with the introduction of a complex of digital technologies), Krasnodar Krai, Vologda and Leningrad regions (new facilities).

Piloting of the software solution for automation of tax monitoring of enterprises has been successfully completed. This solution automates the interaction of the enterprise with tax authorities, including the organization of access of tax service specialists to the Company's accounting and tax data, as well as processing requests of the Federal Tax Service and control over their execution.

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The ROSSETI Group has launched a digital platform to transmit financial messages. Pilot transactions were conducted in the subsidiary in conjunction with leading Russian banks as part of the digital transformation of the treasury function.

Counteracting the Since mid-March 2020, to prevent the spread of the COVID-19 coronavirus infection, coronavirus a portion of employees of the ROSSETI Group has been working remotely with the maintenance of the current payment conditions. The exception is the staff to be in the workplaces at sites and offices.

At the end of March 2020, all client and consumer service centers in the regions of presence were fully transferred to remote service, and the full range of services was provided online.

Power engineers of the ROSSETI Group completed work on the construction of the power grid infrastructure for the new 900-bed infectious diseases hospital in New Moscow ahead of schedule. Applying digital equipment control systems led to a significant reduction in the project cost.

Events after the reporting date Corporate The ROSSETI Board of Directors assigned the duties of Director General of the Company to governance Andrei Ryumin in connection with Pavel Livinsky's transition to a position in the Government of the Russian Federation. In February 2021, Andrey Ryumin was elected Director General of ROSSETI

Finances ACRA affirmed the Company's AAA (RU) credit rating with a stable outlook. This is the highest ranking on the agency's rating scale.

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Performance results for 2020 Production results Power transmission and losses

76 % of electrical power generated in Russia is transmitted through the grids of ROSSETI's subsidiaries and affiliates The key part of the ROSSETI Group's business is the provision of power transmission services. In 2020, the amount of electric power received by the grids of ROSSETI companies decreased by 4.01 % compared to 2019, amounting to 803.5 billion kWh. The amount of transmitted electric power in 2020 decreased by 4.07 % compared to 2019, amounting to 734.1 billion kWh.

The level of electric power losses in 2020 was 8.64 %, which is 0.06 p.p. higher than in 2019. At the same time, the actual volume of losses decreased from the forecasted amount by 2,109.52 million kWh, which is associated with the decrease in received power.

Electric power income, mn kWh Electric power losses, mn kWh Level of electric power losses, % Affiliate/subsidiary 2020 2020 2021 2020 2020 2021 2020 2020 2021 name 2018 2019 2018 2019 2018 2019 target actual target target actual target target actual target

ROSSETI Center 54,235.7 53,141.3 52,749.6 51,892.9 51,597.05 5,751.5 5,434.5 5,185.1 5,102.9 4,865.43 10.60 10.23 9.83 9.83 9.43

ROSSETI Center and 54,055.5 53,617.7 53,082.3 51,266.4 51,244.71 4,236.4 4,257.6 3,842.9 4,066.4 3,747.82 7.84 7.94 7.24 7.93 7.31 Volga Region

ROSSETI Volga 53,491.2 51,884.8 51,332.2 49,457.5 51,032.15 3,466.6 3,200.4 3,145.9 3,028.4 3,132.75 6.48 6.17 6.13 6.12 6.14

ROSSETI North-West 34,297.4 34,593.7 34,135.2 33,236.2 32,857.78 2,258.6 2,156.4 2,124.3 2,065.8 2,006.00 6.59 6.23 6.22 6.22 6.11

ROSSETI Siberia 62,021.3 61,065.2 61,460.9 59,254.8 59,945.70 4,844.2 4,778.2 4,768.9 4,461.0 4,611.42 7.81 7.82 7.76 7.53 7.69

ROSSETI Tomsk 5,288.9 5,335.7 5,285.1 4,664.8 4,195.69 475.8 464.8 457.6 424.1 425.28 9.00 8.71 8.66 9.09 10.14

ROSSETI Urals 73,135.7 71,598.5 70,954.4 67,519.3 68,273.04 5,427.5 4,810.2 4,989.8 4,694.0 4,582.99 7.42 6.72 7.03 6.95 6.71

ROSSETI South 27,326.0 28,143.6 28,940.7 27,378.1 27,925.02 2,679.0 2,612.4 2,561.7 2,422.8 2,510.96 9.80 9.28 8.85 8.85 8.99

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ROSSETI Northern 18,531.1 18,720.7 19,005.5 18,719.7 18,758.30 3,703.2 4,246.0 3,406.5 4,349.4 3,424.43 19.98 22.68 17.92 23.23 18.26 Caucasus

Chechenenergo 2,754.4 2,905.3 2,862.9 2,886.4 2,868.48 988.1 1,069.0 806.6 983.9 745.80 35.87 36.80 28.17 34.09 26.00

ROSSETI Kuban 23,032.5 22,850.7 23,838.8 23,008.0 23,029.94 2,590.1 2,426.4 2,504.3 2,310.8 2,419.16 11.25 10.62 10.51 10.04 10.50

ROSSETI Moscow 91,881.2 91,747.8 92,742.3 89,936.0 89,984.79 7,439.5 7,036.5 7,125.4 6,770.4 6,771.56 8.10 7.67 7.68 7.53 7.53 Region

ROSSETI Lenenergo 38,263.8 38,255.5 37,914.8 36,194.9 37,161.87 4,337.5 4,138.4 4,123.5 3,934.3 3,936.04 11.34 10.82 10.88 10.87 10.59

ROSSETI Tyumen 57,853.8 58,059.7 58,683.2 51,189.5 51,500.24 1,640.2 1,547.0 1,523.1 1,367.3 1,282.46 2.84 2.66 2.60 2.67 2.49

ROSSETI Yantar 4,142.5 4,140.3 4,186.5 4,053.8 4,031.30 520.6 474.6 510.1 410.2 351.12 12.57 11.46 12.19 10.12 8.71

Total for distribution 600,311.0 596,060.6 597,174.5 570,658.2 574,406.06 50,358.9 48,652.4 47,075.8 46,391.5 44,813.22 8.39 8.16 7.88 8.13 7.80

ROSSETI FGC UES 582,268.9 581,918.5 581,349.9 558,738.8 557,031.24 24,539.2 23,196.7 24,454.8 23,029.5 23,242.56 4.40 4.15 4.39 4.30 4.35

Total for the ROSSETI 836,393.1 837,109.1 834,048.5 803,534.0 791,303.39 74,898.2 71,849.1 71,530.6 69,421.1 68,055.78 8.95 8.58 8.58 8.64 8.60 Group

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Integration The ROSSETI Group provide comprehensive services on connection of consumers and energy producers to electric grids. Integration implies actual connection of power receivers of consumers, power generation facilities and power grid facilities to the power grids.

In 2020, the volume of integrated consumers and power generation facilities decreased relative to 2019 by 21 % with respect to the number of executed contracts and by 18 % with respect to connected capacity. The main volume of executed contracts on integration accounts for applicants for reduced tariffs with power receivers of capacities up to 150 kW (98 % of contracts).

Dynamics in the volume of integration of consumers and power generation facilities in 2020 compared to 2019 Applications received 449 thsd applications (+4 %) 43 GW (–1 %) Contracts signed 323 thsd applications (+6 %) 12 GW (–9 %) Contracts executed 262 thsd contracts (+21 %) 12 GW (–18 %)

Integration of power receivers of consumers in 2020

Receivers of consumers Affiliate/subsidiary name Applications received Contracts signed Contracts executed Pcs. MW Pcs. MW Pcs. MW ROSSETI Center 47,522 2,690 36,164 950 30,211 746 ROSSETI Lenenergo 39,335 2,676 27,108 905 25,453 801 ROSSETI Moscow Region 87,219 6,735 56,832 2,177 31,761 1,522 ROSSETI Volga 21,683 1,320 16,080 537 15,986 444 ROSSETI Yantar 6,902 364 4,274 127 4,894 120 ROSSETI South 18,327 1,321 14,086 428 10,517 279 ROSSETI Kuban 32,991 1,455 26,327 632 22,536 641 ROSSETI Northern Caucasus 16,712 713 12,718 319 6,900 187 ROSSETI Tyumen 7,099 652 4,608 169 2,975 267 ROSSETI Siberia 27,766 2,550 20,302 713 19,989 576 ROSSETI Tomsk 2,672 83 2,175 49 2,256 52 ROSSETI North-West 23,087 1,169 18,662 488 13,337 337 ROSSETI Urals 41,864 2,346 27,425 775 24,090 558 ROSSETI Center and Volga Region 55,809 2,190 42,460 924 34,189 762 Other 19,120 1,325 13,487 378 16,999 322

Total for distribution 448,108 27,590 322,708 9,571 262,093 7,615

ROSSETI FGC UES 389 6,805 136 1,432 159 2,870 Total for ROSSETI's subsidiaries 448,497 34,395 322,844 11,002 262,252 10,485 and affiliates

Integration of power generation facilities in 2020

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Power generation facilities Affiliate/subsidiary name Applications received Contracts signed Contracts executed Pcs. MW Pcs. MW Pcs. MW ROSSETI Center 8 242 4 11 2 267 ROSSETI Lenenergo 11 3 3 5 5 58 ROSSETI Moscow Region 10 83 2 22 0 0 ROSSETI Volga 12 238 8 7 7 71 ROSSETI Yantar 3 55 2 0 2 195 ROSSETI South 15 404 4 226 7 615 ROSSETI Kuban 6 20 4 16 2 8 ROSSETI Northern Caucasus 9 325 3 240 3 28 ROSSETI Tyumen 0 0 0 0 0 0 ROSSETI Siberia 9 64 6 55 9 88 ROSSETI Tomsk 0 0 0 0 0 0 ROSSETI North-West 8 17 2 13 1 19 ROSSETI Urals 24 589 3 32 3 16 ROSSETI Center and Volga Region 1 15 0 0 0 2 Other 2 5 2 5 0 0 Total for distribution 118 2,061 43 632 41 1,367 ROSSETI FGC UES 35 7,018 16 820 12 516 Total for ROSSETI's subsidiaries 153 9,079 59 1,452 53 1,883 and affiliates

Dynamics of the cost of integration in 2018–2020, RUB/kW Indicator 2018 2019 2020 Cost of integration 2,852 3,031 3,080

Indicators of reliability and continuity of power supply

-22%

-8%

1.8 1.4 1.2 1.1

SAIDI SAIFI

2019 2020

11 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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Effective management of the response to incidents

A total of 9.3 thousand incidents in the 110 kV+ grid were registered and investigated by the ROSSETI Group in 2020 (a decrease of 3 % compared to 2019).

Causes of disturbances in operation of power grid facilities in 2020

9%

35% Environmental factors Physical deterioration 38% External factors Other

18%

12 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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Financial and economic performance The key factors affecting the ROSSETI Group's financial performance in 2020:

 the cumulative decrease in revenue from electrical power transmission and the sale of electrical power and capacity as a result of the reduction in business activity due to restrictive measures in the Russian Federation aimed at preventing the spread of COVID-19 and the fact that certain companies of the Group stopped serving as providers of last resort;  recognition of losses due to impairment of the Group's property, plant, and equipment;  an increase in depreciation costs of PP&E due to the commissioning of new facilities;  an increase in operating expenses due to the implementation of measures to ensure continuous power supply to consumers under the conditions of COVID-19 distribution.

Summary table of key financial results according to IFRS

Indicators Change 2018 2019 2020 (in billion RUB, unless specified otherwise) 2020/2019, % Revenue 1,021.6 1,029.7 1,001.5 (2.7) Operating expenses (835.8) (858.3) (870.5) 1.4 Adjusted EBITDA2 313.9 315.6 288.6 (8.6) Net profit 124.7 105.3 61.2 (41.9) Adjusted net profit3 130.8 116.7 93.0 (20.3) Net debt 434.1 422.8 457.9 8.3 Net cash flow from operating activities 238.6 256.4 235.3 (8.2)

1 200,0 32,0 480,0 1,65 31,5 1.59 30.7 30.7 1,60 1 000,0 31,0 1,029.7 30,5 460,0 1,55 800,0 1,021.6 30,0 1,50 600,0 1,001.5 29,5 29,0 1,45 440,0 1.38 400,0 28.8 28,5 457.9 1,40 315.6 28,0 1.34 200,0 313.9 288.6 1,35 27,5 124.7 105.3 61.2 420,0 0,0 27,0 434.1 1,30 422.8 2018 2019 2020 1,25

Revenue, bn RUB Adjusted EBITDA, bn RUB 400,0 1,20 2018 2019 2020 Net profit, bn RUB Adjusted EBITDA margin, % Net debt Net debt/adjusted EBITDA

For 2020:  adjusted EBITDA decreased by 8.6 % (or by 27 billion RUB) and amounted to 288.6 billion RUB;  net debt/adjusted EBITDA ratio was 1.59;  management of working capital and short-term debt: current liquidity ratio dropped to 0.67;

2 Adjusted EBITDA is calculated as EBITDA (earnings before interest expenses, taxation and depreciation) minus net loss on impairment of PP&E and revenue from exchange of assets with JSC DVEUK (only for 2019). 3 Adjusted profit is calculated as profit for the period minus net loss on impairment of PP&E, revenues from exchange of assets with JSC DVEUK (only for 2019) with consideration for corresponding amounts of deferred income tax. 13 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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 use of "long" borrowed funds: the share of long-term debt, similar to the situation at the end of 2019, prevails in the structure of the debt portfolio and amounts to 88 %.

Revenue High social significance and geographical diversification provides the ROSSETI Group with a stable base of end consumers which combined with a stable tariff policy, ensures a predictable level of revenue from its core business.

Indicators Change 2018 2019 2020 (in billion RUB, unless specified otherwise) 2020/2019, %

Revenue, including: 1,021.6 1,029.7 1,001.5 (2.7)

from power transmission 826.2 860.9 862.7 0.2

from integration services 52.6 48.7 36.2 (25.7)

from selling electric power and capacity 119.9 100.3 81.6 (18.6) Other 22.9 19.8 21.0 6.1

In 2020, the Company's revenue decreased by 2.7 % (or 28.2 billion RUB) compared to 2019 and amounted to 1,001.5 billion RUB. The main factors that caused the change are the following:

 the cumulative decrease in revenue from electrical power transmission and the sale of electric power and capacity by 1.7 % (or 16.9 billion RUB) as a result of the reduction in business activity due to restrictive measures in the Russian Federation aimed at preventing the spread of COVID-19 and the fact that certain subsidiaries of the Group stopped serving as providers of last resort;  a 25.7 % (or 12.5 billion RUB) decrease in revenues for integration services due to the schedule of services provided at the customer's applications.

Operating expenses One of the ROSSETI Group's priorities is to improve operating efficiency and reduce costs without compromising the reliability of power transmission, quality, and availability of services.

Indicators Change 2018 2019 2020 (in billion RUB, unless specified otherwise) 2020/2019, % Expenses: 869.3 905.3 920.5 1.7 Operating expenses, including: 835.8 858.3 870.5 1.4 depreciation of PP&E, right-of-use assets and intangible assets 116.1 129.4 139.5 7.8 electric power transmission services 153.3 155.4 159.1 2.4 electric power to compensate for losses 148.1 150.7 149.9 (0.5) electric power for sale 67.1 60.7 49.4 (18.6) taxes and fees except for income tax 31.8 27.1 27.1 0 other operating expenses 319.4 335.0 345.5 3.1 Provisions for expected credit losses 25.8 23.4 10.3 (56.0)

14 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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Loss from impairment of PP&E and right-of- 7.7 23.6 39.7 68.2 use assets

In 2020, operating expenses of the Company increased by 1.4 % (or 12.2 billion RUB) compared to 2019 and amounted to 870.5 billion RUB. The main factors that caused the change are the following:

 an increase in expenses for power transmission services due to the indexation of tariffs for the services of other LGOs;  an increase in depreciation is caused by commissioning of PP&E as part of the investment program;  decreased expenses on purchased electric power to compensate for process losses as a result of reduced power consumption under COVID-19 conditions;  decreased expenses on purchased electric power for sale due to the fact that subsidiaries and affiliates stopped serving as providers of last resort;  an increase in other operating expenses due to the implementation of measures to ensure continuous power supply to consumers under the conditions of COVID-19 distribution.

The provision for expected credit losses based on 2020 results decreased more than twofold compared to 2019 as a result of communication and collaboration with consumers, including the conclusion of agreements on debt restructuring.

Significant amounts of PP&E impairment losses were recognized in 2020 due to the presence of signs of impairment (overall decline in business activity in the Russian Federation).

In 2020, the ROSSETI Group's specific operating expenses decreased by more than 2.0 % year-over-year. Assets and liabilities The Company's assets are characterized by a number of factors:

 availability of a technical base that is continuously updated, including digital transformation;  long life cycle of the equipment;  availability of unique infrastructure, on the basis of which new types of activities can be developed and synergistic effects can be achieved.

Indicators Change 2018 2019 2020 (in billion RUB, unless specified otherwise) 2020/2019, % Assets 2,518.6 2,649.6 2,730.9 3.1 Non-current assets 2,144.8 2,328.1 2,449.7 5.2 Current assets (including Assets for 373.8 321.5 281.2 (12.5) sale)

Liabilities 2,518.6 2,649.6 2,730.9 3.1 Capital 1,495.0 1,584.1 1,623.3 2.5 Non-current liabilities 625.2 650.5 690.2 6.1 Current liabilities 398.4 415.0 417.4 0.6

15 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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In 2020, the ROSSETI Group’s assets grew by 3.1 % (or 81.3 billion RUB) compared to 2019, reaching 2,730.9 billion RUB mainly due to an increase in PP&E through the commissioning of new facilities following the implementation of the investment program. Debt The Company maintains a moderate level of debt burden. There is no currency risk associated with the borrowings, since 100 % of the debt is nominated in rubles.

Financial debt, bn RUB Expenses on servicing loans and borrowings, bn RUB

7.2% 7.0% 6.0% 42 39

2 38 46 35

26 327 24 298 330 22

239 226 189 15 16 2018 2019 2020 13 Lease liabilities Обязательства по аренде Lease liabilities Public borrowings (bonded loans) ПубличныеPublic borrowings заимствования (bonded loans) (облигационные 2018 2019 2020 Incurred interest rates in the cost structure займы)Loans and other liabilities Incurred interest rates in the cost structure КредитыLoans and и other прочие liabilities обязательства Начисленные проценты, учтенные в составе расходов Incurred interest rates capitalized within the fixed assets value and The Group’s weighted average interest rate at the The Group’s weighted average interest rate at Incurredintangible assets interest rates capitalized within the fixed Средневзвешеннаяtheend end of theof the period period ставка Группы на конец Начисленныеassets value andпроценты, intangible капитализированные assets в периода стоимости основных средств и НМА

Debt repayment schedule,* bn RUB

206 163 92 54

2021 2022 2023 2024+

* Core debt on loans and credits excluding accrued but unpaid interest.

In 2020, the level of the ROSSETI Group's debt did not change significantly.

The cost of debt of the ROSSETI Group for 2020 dropped from 7.0 % at the beginning of the year to 6.0 % at the end of the year and is still below market levels (according to the statistics from the Central Bank of Russia, the average 1 to 3-year lending rate for December 2020 was 7.1 % per annum).

Long-term borrowings prevail in the ROSSETI Group’s debt portfolio; the weighted average maturity of the portfolio is more than 8 years.

16 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

17

Bonds The ROSSETI Group is actively raising long-term borrowings in the capital markets. In 2020, it successfully issued the following bonds with a total par value of 88.0 billion RUB:

Volume in Date of Rate at Issue No. Series circulation, placement placement, % mn RUB ROSSETI 4B02-02-55385-E-001P БО-001Р-02 10,000 Apr 30, 2020 6.50 % 4B02-03-55385-E-001P БО-001Р-03 10,000 Jul 27, 2020 4.85 % ROSSETI FGC UES 4B02-04-65018-D-001P 001Р-04R 10,000 Jan 30, 2020 6.75 % 4B02-05-65018-D-001P 001Р-05R 10,000 Apr 29, 2020 6.50 % 4B02-02-65018-D-001P 001Р-02R 10,000 Oct 20, 2020 6.60 % ROSSETI Moscow Region 4B02-02-65116-D-001P 001P-02 10,000 Feb 21, 2020 6.15 % 4B02-03-65116-D-001P 001P-03 5,000 Jul 22, 2020 5.55 % ROSSETI Lenenergo 4B02-03-00073-A БО-03 5,000 Feb 05, 2020 6.20 % 4B02-04-00073-A БО-04 5,000 Feb 05, 2020 6.20 % ROSSETI Center 4B02-02-10214-A-001P 001P-02 5,000 June 5, 2020 5.60 % ROSSETI Center and Volga Region 4B02-01-12665-E-001P 001P-01 8,000 June 5, 2020 5.65 %

The main purpose of the borrowings was to refinance the debt portfolio by the subsidiaries. The main investors were management companies, pension funds, banks, investment and insurance companies, as well as individuals.

In order to optimize the debt portfolio, the companies of the Group also redeemed/drew bonds in the aggregate amount of 51 billion RUB under offers. Credit ratings ROSSETI has an investment rating from two major international rating agencies Standard & Poor's (BBB-, outlook stable) and Moody's (Baa3, outlook stable) equal to the sovereign rating of the Russian Federation, and the highest rating AAA(RU) (outlook stable) from the ACRA national rating agency, corresponding to the level of the financial liabilities of the Government of the Russian Federation.

The high credit quality of the ROSSETI Group is confirmed by credit ratings of the international and national rating agencies. Credit ratings not only increase investment attractiveness, but also allow for an effective borrowing policy in the capital markets.

The ROSSETI Group's credit ratings (as of February 2021)

Rating agency S&P Moody’s Fitch ACRA Expert RA

Rating scale International National ROSSETI ВВB- Baa3 - AAA(RU) - 17 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

18

FGC UES ВВB- Baa3 ВВВ AAA(RU) - ROSSETI Moscow Region ВВ+ Ва1 ВВ+ AAA(RU) - ROSSETI Lenenergo - Ва1 - AAА(RU) - ROSSETI Volga - Ва1 - AA+(RU) IDGC of the North-West - - - AA+(RU) - IDGC of the Urals - Ва1 - - ruAA IDGC of Center ВВ+ - - - ruAA IDGC of Center and Volga Region - Ва1 - - ruAA+ ROSSETI Tyumen - - - - ruAA

Development of ROSSETI's credit ratings for the last 5 completed financial years

Moody's Investors Service Rating action date International scale Forecast

Feb 12, 2019 Baa3 Stable

Jan 29, 2018 Ba1 Positive

Dec 7, 2017 Ba1 Stable

S&P Global Ratings Rating action date International scale Forecast

Jan 24, 2020 BBB- Stable

Mar 21, 2017 BB+ Positive

Sep 20, 2016 BB+ Stable

ACRA Rating action date National scale Forecast

Mar 2, 2018 AAA(RU) Stable

Cash flow Indicators (mn RUB) 2018 2019 2020 Net cash provided from operating activities 238,571 256,445 235,412

Net cash used in investing activities (253,840) (201,112) (208,759)

Net cash used in financing activities (2,729) (60,376) (39,755) Net cash flows (17,998) (5,043) (13,102)

Highlights Indicators 2018 2019 2020 Adjusted EBITDA margin 30.7 % 30.7 % 28.8 % Net debt/adjusted EBITDA 1.38 1.34 1.59 18 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

19

Absolute liquidity ratio 0.33 0.33 0.21 Current liquidity ratio 0.88 0.77 0.67 Financial leverage 0.68 0.67 0.68 Share of long-term loans/total debt 85 % 83 % 88 %

Tariff Policy The Company's Tariff Policy is subject to government regulation because of the ROSSETI Group's monopoly position in the market.

Tariff Policy for electric power transmission services Based on the Forecast of Social and Economic Development of the Russian Federation approved by the Government of the Russian Federation:

 the Federal Antimonopoly Service of Russia approves of the limit (minimum and (or) maximum) levels of tariffs for electric power transmission services;  regional regulatory authorities set unified "boiler tariffs" for electric power transmission services within the limits of tariff caps approved by the Federal Antimonopoly Service of Russia.

At the same time, the social and economic forecast also limits the maximum aggregate payment of citizens for public utilities and does not take into account the outstripping growth of electricity prices on the wholesale market compared to the growth rate of network tariffs and, accordingly, the outstripping growth of costs for the purchase of electricity to compensate for losses.

Tariff of the distribution networks Tariff of the transmission complex, % complex, % 7.5

7.1

6.2 5.5 5.5 5.5 5.5 5.2

3.4 2.95

July 1, July 1, July 1, July 1, July 1, 1 июля 1 июляJuly 1, 1 июля 1 июля 1 Julyиюля 1, 1 июля 1 июля 1 июля 1 июля 1 июля July 1, July 1, July 1, 2016 2017 2018 2019 2020 20162016 20172017 20182018 20192019 20202020 2016 2017 2018 2019 2020

Distribution of costs within the “boiler tariff” for electric power transmission services (2019–2020)

Indicators 2019 2020 Change (billion RUB, unless specified otherwise) 2020/2019 Expenses on normative (process) power losses in DGC grids 126 136 7.9 % Expenses on related LGO services at individual rates 164 170 3.6 % Expenses on services provided by ROSSETI FGC UES 147 150 2.1 % GRG for the maintenance of electric grid facilities of DGCs 417 433 3.8 % 19 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

20

In all subsidiaries of ROSSETI, long-term tariff regulation is based on long-term parameters:

 in 10 presence entities — by the method of return on invested capital (RAB regulation);  in 55 presence entities — by the method of long-term indexation of gross revenue requirement;  ROSSETI FGC UES — by the return on investment method.

Tariff Policy in the field of integration Payment for integration is based on the approved payment rates (standardized rates or rates per 1 kW of connected capacity) or according to the individual project based on the estimated standard costs.

The fee for the integration includes compensation of expenses incurred by the subsidiary/affiliate of ROSSETI for organizational and technical measures and the construction of electric power facilities from existing facilities to the connected receivers ("last mile" expenses).

In order to implement measures on improvement of the accessibility of the network infrastructure, it is prohibited to include the investment component in the integration fee for the development of the existing network for any categories of applicants.

Consumers up to 150 kW are entitled to the following advantageous rates for integration:

 up to 15 kW — the fee for integration is not more than 550 RUB (subject to the conditions for the third category of reliability, the distance to the existing electrical facilities not exceeding 300 m in cities and 500 m in rural areas, the voltage level not exceeding 20 kV);  up to 150 kW — the fee for the integration is calculated in the amount of expenses on organizational and technical measures (the “last mile” costs are excluded).

Economically justified expenses of the subsidiary/affiliate of ROSSETI that are not included in the integration fee shall be included when defining tariffs for electricity transmission services. Government support

In the reporting year, ROSSETI received no government support, including the subsidies.

20 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

21

Investment program For 2021–2025:  funding of the investment program — 1,265 billion RUB including VAT;  inclusion in the fixed assets — 1,219 billion RUB excluding VAT;  commissioning of transformer capacity — 52.8 GVA;  commissioning of transmission lines — 83.7 thousand km.

Consolidated investment program of ROSSETI’s subsidiaries and affiliates for 2021–2025 Funding, bn RUB (including VAT) 2020 2021 2022 2023 2024 2025 (actual) Distribution 168.3 170.9 159.2 142.8 134.7 119.3 Transmission 115.0 129.3 137.2 134.6 137.1 - Total for ROSSETI's subsidiaries and 283.3 300.2 296.5 277.4 271.8 119.3 affiliates Inclusion in the fixed assets, bn RUB (excl. VAT) Distribution 152.5 167.0 135.7 115.4 119.6 95.7 Transmission 112.7 110.2 273.3 101.0 100.6 - Total for ROSSETI's subsidiaries and 265.2 277.2 409.1 216.4 220.2 95.7 affiliates Inclusion of transmission lines in the fixed assets, thsd km Distribution 23.1 17.6 17.3 14.4 14.7 12.6 Transmission 2.1 1.1 4.2 0.7 1.1 - Total for ROSSETI's subsidiaries and 25.2 18.7 21.5 15.0 15.8 12.6 affiliates Inclusion of transformer capacity into fixed assets, thsd MVA Distribution 6.4 5.8 4.8 2.9 2.5 1.7 Transmission 2.8 4.5 17.5 5.5 7.4 - Total for ROSSETI's subsidiaries and 9.2 10.3 22.3 8.5 9.9 1.7 affiliates

Key parameters of the implementation of the ROSSETI Group’s consolidated investment program in 2020 Subsidiary/Affiliate/Second-Tier Funding, mn Commissioning, Commis- Commis- Subsidiary RUB (incl. VAT) mn RUB (excl. sioning, km sioning, MVA VAT) Distribution networks

ROSSETI Lenenergo 36,783 32,704 2,793 1,492 ROSSETI Moscow Region 35,785 30,963 5,592 1,765 IDGC of Center and Volga Region 14,374 12,314 2,406 365 IDGC of Center 14,039 12,241 2,098 374 ROSSETI Tyumen 9,852 8,841 667 273 IDGC of the Urals 9,633 9,278 2,055 402 ROSSETI Volga 8,885 7,894 1,571 338 ROSSETI South 7,587 8,876 781 224 ROSSETI Siberia 7,445 7,987 1,723 221 ROSSETI Kuban 5,608 4,418 593 159 Yantarenergo 5,519 4,901 693 250 IDGC of the North-West 4,973 4,111 1,113 159 ROSSETI Northern Caucasus 2,585 4,443 638 153 Ekaterinburg Power Supply Company 2,489 1,257 118 82

21 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

22

Chechenenergo 1,490 1,309 51 82 Tomsk Distribution Company 676 575 108 11 Tyvaenergo 550 341 122 16 SVET 7 5 - 6 Transmission networks FGC UES 115,036 112,744 2,094 2,806

Total for ROSSETI's subsidiaries and 283,316 265,203 25,214 9,177 affiliates

Dynamics of financing volumes, million RUB (incl. VAT) 2018 2019 2020 258.4 317.8 283.3

Dynamics of commissioned capacities 2018 2019 2020 Transmission lines, km 28,297 32,541 25,214 Substations, MVA 12,076 12,401 9,177

The main sources of funding for the investment program in 2020 Source Share, %

Own funds (depreciation and profit) 64.2 Raised funds 8.6 Integration revenues 13.6 Other sources* 13.5 * VAT refunds, funds from the issue of shares, budget financing, other.

22 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

23

Introduction of new technologies Digital transformation The Digital Transformation 2030 Concept is being implemented in the ROSSETI Group4. Change of the logistics of the processes and the ROSSETI Group transition to risk-oriented management based on the introduction of digital technologies and big data analysis is the key goal.

Implementation of the Concept is being carried out in accordance with the specially developed Target Model of digital transformation of the power grid complex of ROSSETI by 2030. Basic principles of the Target Model:

 complete transformation of the power grid infrastructure of all companies of the ROSSETI Group;  100% data reporting to information systems;  platform solutions, a unified digital environment, information security;  interconnectivity of all digital information streams based on cloud technologies;  data reporting to unified network control centers in the amount needed for decision-making.

In 2020, the Board of Directors approved the Program of Digital Transformation of ROSSETI for 2019–2030, specifying the timing and activities for the implementation of the Digital Transformation Concept. The Digital Transformation Program will be implemented in three stages.

 Implementation of proven technologies that form the hardware and information basis for further development;  commencement of work on data arrays; The first stage  partial digitalization of production processes; Implementation of a  piloting of promising technologies; set of start-up  typification of information flows and systems; events  equipping UNEG facilities with telemechanics systems; (2019–2024)  modernization of the technological communication network, metering and measuring systems;  identification of the most effective technologies for replication;  digitization and transformation of business processes.  Further development of technology projects conducted in the first stage, taking into account the level of technology; Second stage  wider work on data structuring, formation of digital twins of technological Development of processes and formation of a single BigData source by integrating existing technological systems, implementing software data access interfaces, development of solutions digital industry platforms with counterparties; (2023–2025)  formation and development of digital products that can be offered to the market. Third Stage  Formation of commercial digital products using BigData technologies; Commercialization  creation of digital platform ecosystems, development of services. of Spent Solutions (2025–2030)

In the reporting year, 73 digital infrastructure objects were put into operation:

 6 modernized control rooms of network management centers;

4 Minutes No. 336 dated December 21, 2018 23 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

24

 34 highly automated areas of electrical networks;  33 highly automated substations with digital data exchange rated 35–220 kV.

Innovative development program ROSSETI is implementing the Innovative Development Program for 2020–2024 prospectively until 20305. ROSSETI's Innovative Development Program (hereinafter referred to as the IDP of ROSSETI) is a long-term planning and management document integrated into the system of strategic development of the state power grid complex, as well as a key tool for implementing the Company's Innovative Development Policy.

Facilitating the conditions for transitioning to a new technological mode electrical grid, with qualitatively new characteristics of reliability, efficiency, accessibility, manageability and customer orientation of the power grid complex of Russia is the key objective of the IDP of ROSSETI.

One of the main directions of the IDP of ROSSETI is to carry out R&Ds aimed at creating fundamentally new developments, technologies, and methods, as well as implementing applied scientific works dedicated to improvement of existing technologies and products. The R&D program is developed annually.

The target value of R&D costs in 2020 for the ROSSETI Group has been 0.2% of its own revenue, or 1,045.9 million RUB.6 The actual implementation of the R&D Program amounted to 1,689.23 million RUB 7, or 0.323% of own revenue, exceeding the target cost value by 161.5%.

The target and actual value of R&D expenses 1,689.23

1,190.31 892.5 980.13 692.01

1,045.9 645.42 670.11 748.57 808.4

2016 2017 2018 2019 2020 Target value of R&D expenses, mn RUB Actual value of R&D expenses, mn RUB

In 2020, the R&D volume was represented by 92 works (61 works by DGC and 31 works by ROSSETI FGC UES).

Following the results of research and development activities in 2020:

 13 R&D results have been transferred to pilot and industrial operation;  18 R&D results have been implemented in subsidiaries and affiliates of ROSSETI;  35 security documents have been obtained.

5 Approved by the Board of Directors on February 8, 2021 (Minutes No. 447 dated February 8, 2021). 6 According to the Efficiency of Innovation Activity methodology for calculating the key performance indicator. 7 Net of VAT. 24 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

25

Predictive analysis Company mission ROSSETI's mission is to secure a reliable, high-quality and affordable energy supply establishing conditions for comfortable life of people and free growth of the Russian economy, multiplying profitability for shareholders and opportunities for employees' professional growth. As a pillar of the country's energy security, we use advanced, innovative technologies.

ROSSETI development Strategy The development strategy is the top-level document of long-term planning which defines the main vectors of the Company's development for the coming decade.

Strategic objectives of the Company:

 ensuring the reliability and quality of power supply at the specified level;  increasing the total shareholder returns;  ensuring resilience to changes in the global and local electricity markets.

The goals and objectives of the Development Strategy are consistent with the main national goals and strategic objectives set for the power grid complex at the federal level.

In order to achieve its strategic objectives, the Company intends to improve the efficiency of the business model and leverage the Company's potential to develop new segments and additional services. This will provide significant added value for shareholders and increase the Company's adaptability to new, dynamic challenges and changing consumer/subscriber needs. ROSSETI Group Strategic Development Priorities Within the framework of its strategic objectives, the ROSSETI Group has identified strategic priorities. The goal-setting horizon involves two stages of implementation of the Strategy: the first one is up to 2024, and the second is 2025 to 2030.

Targeted indicators of strategy implementation

Priority Indicator 2020 2024 2030 (actual) OPEX 2% decrease annually Improvement of the efficiency of the core business Labor productivity 5% increase annually Electricity loss rate 8.6% 7.8% 7.34%

Ensuring the reliability and quality of SAIDI 1.4 2.08 1.6 power supply at the specified level SAIFI 1.1 1.0 0.85 Balancing the interests of the Capitalization of 356.3 500 billion 1 trillion RUB state/consumers/shareholders/investors ROSSETI billion RUB RUB Share of R&D costs 0.32%9 0.25% 0.25% from own revenue Digital transformation Digital Transformation Growth of the indicator throughout the Index strategy implementation

8 Associated with the expected increase in the number of the recorded violations as a result of increased observability of the network. 9 The planned value of the indicator is 0.25%. 25 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

26

Business diversification Non-tariff revenue 2.33% 5% 20%

Long-Term Development Program In 2020, the Long-Term Development Program of ROSSETI and its subsidiaries and affiliates for 203010 (hereinafter referred to as LTDP 2030) was developed and approved by the Board of Directors for the new strategic planning period.

The key difference between the LTDP 2030 and the LTDP 2015–2019 is the setting of goals and objectives in accordance with the new Development Strategy and the Energy Strategy of the Russian Federation up to 203511.

The Long-Term Development Program of ROSSETI and its subsidiaries and affiliates up to 2030 8 main areas of activity: • Maintaining a specified level of reliability and security of power supply • Technological development, digital transformation and innovation • Business diversification • Ensuring further improvement of operational and investment efficiency • Increasing investment attractiveness and shareholder value • Increasing our Network Services Market Share • Development of international activities • Personnel Policy 76 main activities Term of implementation — 10 years

10 Decision of ROSSETI Board of Directors dated December 30, 2020 (Minutes No. 444 dated December 30, 2020). 11 Approved by the Order of the Government of the Russian Federation No. 1523-r dated June 9, 2020 26 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

27

Corporate governance ROSSETI Corporate Management Model An efficient corporate governance system is one of the key components for the successful development of the Company, providing the necessary balance of interests of shareholders, investors, creditors, and employees. ROSSETI is one of the largest public companies in Russia in terms of the scale of operation, with the number of shareholders exceeding 350 thousand people.

ROSSETI's corporate governance model represents a system of relations among shareholders, the Board of Directors, the executive bodies of the Company and other stakeholders, which ensures smooth operational activities and development, management and control, rules and procedures for corporate decision-making process in the Company and the ROSSETI Group as a whole.

Corporate Governance  Increase of shareholder value and investment attractiveness of the goals of the Company Company  Generating profit from Company's activities  Stable and predictable development of the Company  Ensuring efficient asset management of the Company and its subsidiaries  Improving the governance system, employee motivation and succession practices Principles and Priorities  Respect for and guarantees of rights and legitimate interests of of the Corporate shareholders, investors, and stakeholders of the Company Governance of the  Ensuring informational and financial transparency of the Company's Company activities  Predictable dividend policy of the Company  Efficient and professional Board of Directors accountable to the shareholders of the Company  Consistency and collegiality of the decision-making process  Zero tolerance for corruption and fraud  High standards of business ethics and compliance procedures  Minimization and settlement of corporate conflicts  Developed corporate culture and practice of corporate social responsibility Key Corporate  Introducing the unified management standards in the ROSSETI Group Governance Policies  Improving operational efficiency, improving the management system of the Company and the ROSSETI Group, improving the quality of business processes  Professional interaction with investors, employees and partners of the Company  Improving the information transparency of the Company, its internal control and audit mechanisms

Development of the Corporate Governance System in 2020 In 2020, work was continued to improve corporate governance in the Company and the ROSSETI Group as a whole. The Annual General Meeting of Shareholders in 2020 approved a new version of the Articles of 27 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

28

Association of ROSSETI12, which takes into account the changes made in the Federal Law "On Joint-Stock Companies". As part of the changes made in the Articles of Association, the competence of the Management Board has also been expanded and now additionally includes consideration of the issues related to the activities of organizations, the powers of the sole executive body of which have been transferred to the Company, when proposed by the Director General. In 2020, due to the complicated epidemiological situation, the Company being guided by the provisions of the Federal Law No. 115-FZ dated April 07, 2020 held an Annual General Meeting of Shareholders in the form of an absentee voting. Shareholders were provided with the opportunity to participate in the voting by filling out the electronic voting form on the website of STATUS JSC, the Company's Registrar. In addition, a special e-mail address was created for communication with shareholders and the forum on the agenda of the Meeting was held on the Company's website. An important positive change in the Company's corporate governance practices in 2020 was the decision made by the Annual General Meeting of Shareholders to pay remuneration to the Members of the Board of Directors, which would contribute to the motivation and retention of persons in the Board of Directors who have the competence and qualifications required for the effective management of the Company, to achieve the established strategic goals and tasks. The composition of the Company's Board of Directors elected at the Annual General Meeting of Shareholders fully complies with the requirements of the Moscow Exchange for issuers of the Tier I Listing and the recommendations of the Corporate Governance Code of the Bank of Russia: 5 out of 15 members of the Board of Directors are independent. In 2020, the Company's Board of Directors made a significant contribution to the development of the Company's corporate governance system. In particular, the Board of Directors approved: . Restated Internal Audit Policy13. The changes are aimed at bringing certain regulations of the Internal Audit Policy in line with the International Professional Standards of Internal Audit and the recommendations of the Federal Agency for State Property Management. The new version of the document expands the functions of the internal audit unit of the Company in terms of consulting on the activities of the Audit Committees of the Boards of Directors of subsidiaries and affiliates; . Restated Risk Management Policy 14 .The changes are aimed atupdating the risk management system principles taking into account the COSO Framework “Enterprise Risk Management. Integrating with Strategy and Performance", national standard GOST R ISO 31000-2019 "Risk Management. Principles and Guidelines", as well as updating the stages of the risk management process in compliance with the international standard ISO 31000-2018 "Risk Management — Guidelines"; . Restated Anti-Corruption Policy of ROSSETI and Subsidiaries and Affiliates of ROSSETI 15. The changes are aimed at bringing the internal document in line with the regulatory legal acts of the Russian Federation. In addition, in 2020, the Company's Board of Directors developed and approved16 for the first time the Executive Management Succession Plan, which states the uniform qualification requirements for the executive management of the Company, its succession principles and approaches to the formation and development of the Company's executive succession pool. The Plan was approved in accordance with the recommendations of the Bank of Russia on the application of the Corporate Governance Code of the Bank of Russia and in pursuance of the Corrective Action Plan based on the Internal Audit of the Corporate

12 Minutes w/o No. of the Annual General Meeting of Shareholders of ROSSETI dated June 01, 2020. 13 Approved by the Board of Directors of ROSSETI on March 05, 2020 (Minutes No. 399 dated March 06, 2020). 14 Approved by the Board of Directors of ROSSETI on November 23, 2020 (Minutes No. 440 dated November 24, 2020). 15 Approved by the Board of Directors of ROSSETI on April 20, 2020 (Minutes No. 405 dated April 22, 2020). 16 Approved by the Board of Directors of ROSSETI on April 02, 2020 (Minutes No. 401 dated April 03, 2020). 28 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

29

Governance in the Company as part of the efficiency assessment of the internal control and risk management, corporate governance systems in the Company. In view of the recommendations of the Corporate Governance Code of the Bank of Russia, in the second half of 2020 the Company conducted an independent performance assessment of the Board of Directors of the Company involving an external consultant (VTB Registrar JSC). In addition, in the reporting period, the Company's Board of Directors17 approved the Methods for Performance Assessment of the Board of Directors, Committees of the Board of Directors and Members of the Board of Directors of ROSSETI.

National Corporate Governance Rating In December 2020, based on the corporate governance quality assessment results of ROSSETI, the Russian Institute of Directors confirmed the rating according to the national corporate governance rating at the level 7++, "Developed Corporate Governance Practice". This rating confirms that the Company complies with the requirements of the Russian legislation in the area of corporate governance and follows a significant number of recommendations of the Corporate Governance Code of the Bank of Russia. Risks of owners loss related to the quality of corporate governance were estimated as rather low.

In the framework of the assessment performed by the Russian Institute of Directors, positive changes in the corporate governance practice were highlighted and the areas for development of the corporate governance practice were identified. Corporate Governance Self-Assessment in the Company The Company regularly monitors the development of corporate governance practices, including with the use of a dedicated self-assessment method. The Company's Internal Audit Department evaluated the effectiveness of corporate governance in ROSSETI in the 2019-2020 corporate year. The Company's corporate governance overall assessment rate was 90% out of a possible 100%. General Meeting of Shareholders The General Meeting of Shareholders is the highest governing body of ROSSETI.

The procedure for preparing and holding the General Meeting of Shareholders is regulated by the Articles of Association18 and the Regulation for the General Meeting of Shareholders of ROSSETI19. Due to the COVID-19 pandemic, the Board of Directors of ROSSETI decided to hold the Annual General Meeting of Shareholders in 2020 in the form of absentee voting in order to ensure the sanitary and epidemiological well-being and health protection of shareholders, considering the amendments made to the legislation and recommendations of the Bank of Russia20. The Company ensured proper functioning of tools for remote participation in meetings and access to all necessary information through digital services.

The Annual General Meeting of Shareholders on the results of the Company's activities in 2020 was held on June 1, 2020 (Minutes w/o No. dated June 1, 2020). The Extraordinary General Meetings of Shareholders were not held during the reporting period.

Agenda and decisions of the Annual General Meeting of Shareholders in 2020

No. Name of agenda item Results and Status

17 Decision of ROSSETI Board of Directors dated September 18, 2020 (Minutes No. 430 dated September 21, 2020). 18 Approved by the Annual General Meeting of Shareholders of ROSSETI on June 1, 2020 (Minutes w/o No. dated June 1, 2020). 19 Approved by the Annual General Meeting of Shareholders of ROSSETI on June 27, 2019 (Minutes w/o No. dated June 27, 2019). 20 Information Letter of the Bank of Russia dated April 3, 2020 No. IN-06-28/48 on Holding General Meetings of Shareholders in 2020. 29 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

30

Approval of the Company's Annual Report for The Company's Annual Report for 2019 was 1. 2019. approved. Approval of the Company's annual accounting The Company's annual accounting (financial) 2. (financial) statements for 2019. statements for 2019 were approved. The Company's profit distribution for 2019 was approved. In particular, 23,015,509 thousand RUB Approval of the Company's profit distribution for 3. for the payment of dividends, including: 2019. - 17,992,195 thousand RUB — for 2019; - 5,023,314 thousand RUB — for Q1 2019. It was decided to: Amount, period, and form of dividend payment pay dividends — RUB 0.189304 ruble per based on performance results for 2019 and the 4. preference share; date set for determining the persons entitled to pay dividends — RUB 0.0885155625 ruble per dividends. ordinary share. It was decided to pay remuneration to members of Payment of remuneration for serving on the Board the Board of Directors of the Company other than of Directors to members of the Board of Directors those who hold public office in accordance with 5. other than those who hold public office in the the Regulation for Payment of Remuneration and amount specified in the Company’s internal Compensation to Members of the Board of documents. Directors of the Company. Payment of remuneration for serving on the It was decided not to pay remuneration to Internal Audit Commission to members of the members of the Internal Audit Commission of the 6. Internal Audit Commission other than those who Company other than those who hold public office hold public office in the amount specified in the due to the lack of any grounds for accrual of Company’s internal documents. remuneration. Election of members of the Board of Directors of New Board of Directors of the Company was 7. the Company. elected. Election of members of the Internal Audit New Internal Audit Commission of the Company 8. Commission of the Company. was elected. LLC RSM RUS was approved as the Auditor of the 9. Approval of the Auditor of the Company. Company. Approval of a restated version of the Articles of A restated version of the Articles of Association of 10. Association of the Company. the Company was approved.

The Minutes of the Annual General Meeting of Shareholders of ROSSETI for 2019 are available on the official website of the Company: http://www.rosseti.ru/investors/common/results/.

Board of Directors The Board of Directors of the Company composed of professional directors is a key link in the effective corporate governance system and plays a vital role in the strategic and business management of the Company. The competence of the Board of Directors of the Company is determined by the requirements of the legislation and the Articles of Association of the Company and considers the special status of the Company as the largest national operator of electricity transmission system.

The Board of Directors of the Company is accountable to the General Meeting of Shareholders, while being responsible to all shareholders for the approval and monitoring of the implementation of the Development Strategy, efficiency of the Company, as well as the monitoring of the management in the performance of the assigned tasks. 30 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

31

The main purposes and objectives of the ROSSETI Board of Directors:

Defining the Company's Ensuring implementation and Ensuring the completeness, development strategy aimed at protection of the rights and reliability and objectivity of increasing market capitalization legitimate interests of information about the Company and investment attractiveness, shareholders, assisting in the disclosed to shareholders and achieving maximum profit and resolution of corporate conflicts other interested parties increasing assets

Providing regular assessment of Creating effective mechanisms of activities carried out by the internal control Company's executive bodies

In order to ensure the safety of the members of the Board of Directors during COVID-19, the meetings were held in the format of a video conference call. The interaction between members occurred mainly through electronic channels and telephone communications.

In 2020, the Board of Directors considered 187 issues, 15 of which were considered in 5 in-person meetings of the Board of Directors.

As at December 31, 2020, the Board of Directors of ROSSETI consisted of the Chairman (Non-Executive Director), one Executive Directors, nine Non-Executive Directors and five Independent Directors (all members of the Board of Directors are the citizens of the Russian Federation). ROSSETI Board of Directors in 2020 Member of the Board of Directors Status Alexander Valentinovich Novak Non-Executive Director Stanislav Olegovich Ashirov Independent Director Boris Ilyich Ayuyev Non-Executive Director Maxim Sergeevich Bystrov Independent Director Kirill Aleksandrovich Dmitriev * Non-Executive Director Oleg Markovich Dubnov Independent Director Alexander Sergeyevich Kalinin Independent Director Pavel Anatolievich Livinsky Executive Director Yuri Vladislavovich Manevich Non-Executive Director Andrey Yevgenyevich Murov Executive Director Mikhail Alekseyevich Rasstrigin Non-Executive Director Nikolay Dmitryevich Rogalev Non-Executive Director Vladimir Vladimirovich Furgalsky * Non-Executive Director Andrey Vladimirovich Sharonov * Independent Director Sergey Ivanovich Shmatko Non-Executive Director Vasily Mikhailovich Belov ** Independent Director Anatoly Vladimirovich Tikhonov ** Non-Executive Director 31 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

32

Nikolay Grigoryevich Shulginov ** Non-Executive Director * Holds the position of a member of the Board of Directors since June 1, 2020 ** Held the position of a member of the Board of Directors until June 1, 2020

Details on the biographies of the current members of ROSSETI Board of Directors are available on the Company's corporate website http://www.rosseti.ru/about/management/directors/.

Board of Directors Assessment Results In 2020, the Company carried out the external assessment of the Board of Directors and its Committees for the 2019-2020 corporate year by an independent consultant. According to the results of an open tender procedure, VTB Registrar (hereinafter referred to as the independent consultant) was recognized as the independent appraiser under the relevant service agreement.

According to the results of the assessment, the independent consultant noted:

 important role of the Committees under the Board of Directors in improving the efficiency of the Board of Directors;  valuable contribution of all independent directors to the performance of the Board of Directors and its Committees;  performance of the Chairman of the Board of Directors and the Corporate Secretary of the Company. Results of the assessment by component (maximum score — 5)

Assessment Object Score Board of Directors 4.73 Chairman of the Board of Directors 5.00 Members of the Board of Directors (average score for 15 members of 4.87 the Board of Directors) Committees under the Board of Directors (average score for 4 4.83 Committees under the Board of Directors)

The minimum score of all above-mentioned scores (4.73 on a scale of 1 to 5) corresponds to the mature level of development of the Board of Directors and its Committees.

ROSSETI Board of Directors Results in 2020 Meetings of the Board of Directors in 2020

Form of meetings 2018 2019 2020 6 7 5 In person 12% 13% 9% 45 46 48 In absentia 88% 87% 91% Total 51 53 53

32 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

33

Issues considered by the Board of Directors in 2020

Form of meetings 2018 2019 2020 In person 28 22 15 In absentia 160 160 172 Total 188 182 187

CATEGORIES OF ISSUES CONSIDERED 100% 15% 90% 19% 3% 80% 36% 2% 5% 5% 70% Strategic development 60% 4% 32% 5% 34% Finance and investment 50% Audit, control and risks 10% 40% 34% KPIs, HR and motivation 12% 30% 11% SDCs 9% 20% 3% 8% Approval of internal documents 6% 16% Procurement 10% 7% 16% 0% 5% 5% Other 2018 2019 2020

Core issues considered by the Board of Directors in 2020

Strategic priorities Decisions of the Board of Directors  New Long-term Development Program of ROSSETI and its Subsidiaries and Affiliates (ROSSETI Group) Improvement of the efficiency of the until 2030 was approved; core business  Issues of dealing with the Company's non-core assets were considered;  Risk Management Program was approved.  Issues on the implementation of the Concept for the Development of the System of Operational and Technological Management and the System of Situational Management in the Electric Grid Ensuring the reliability and quality of Complex of ROSSETI and the period of their power supply at the specified level implementation by the subsidiaries and affiliates of ROSSETI were considered;  List of priority anti-crisis measures in the current economic situation, while considering the factors that negatively affect the financial and economic

33 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

34

condition of the subsidiaries and affiliates of ROSSETI, was considered.  Program for the Implementation of Intelligent Electricity Metering Systems of ROSSETI was approved;  Decision on the implementation of the joint Digital transformation projects of ROSSETI and JSC SO UES for remote monitoring of substation equipment using automated switching programs was made;  Digital Transformation of the ROSSETI Group for 2019-2030 consolidated program was considered.  Issues on the implementation of the measures to increase the availability of energy infrastructure were considered; Balancing the interests of the  Decision to improve the Procurement Policy of the state/consumers/shareholders/investors Company as part of the implementation of the directives of the Government of the Russian Federation was made.

Minutes of the Board of Directors meetings are available on the Company's corporate website http://www.rosseti.ru/investors/solutions/?year=2020.

Remuneration to the Members of the Board of Directors The amount of remuneration to the members of the Board of Directors is determined based on the scope of duties and actual participation in the work of the Board of Directors, as well as work in the Committees of the Board of Directors. The amount of the basic annual remuneration is adjusted for these indicators, this amount is established by the Regulations on the payment of remuneration and compensations to members of the Board of Directors of ROSSETI.

The remuneration is paid as a one-time payment in RUB. Other forms of remuneration, including forms of short-term and long-term incentives, depending on the financial result, as well as forms of incentives with shares (stock options), are not applied in the Company.

Remuneration is paid within 30 calendar days upon holding the annual General Meeting of Shareholders of the Company, which passed a resolution to pay remuneration to members of the Board of Directors of the Company.

Remuneration Remuneration for participation in the Board of Directors (S1) to the member of the Board of S1 = (Basic annual remuneration) X 100/130 X n/m Directors where: n is the number of actual participation of a member of the Board of Directors in meetings

of the Board in the corporate year (the amount of basic annual m is the number of meetings of the Board of Directors in the corporate year remuneration or less) Allowances (totaled up when combining duties)

34 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

35

30% of S1 – to the Chairman of the Board of Directors 20% of S1 – to the Chairman of the Committee of the Board of Directors 10% of S1 – for participation in the work of the Committee of the Board of Directors

Basic annual remuneration is 3.5 million RUB.

Restrictions on the payment of remuneration Members of the Board of Directors belonging the No remuneration shall be calculated and paid out Management Board of the Company to these members of the Board of Directors Members of the Board of Directors, representing No remuneration shall be calculated and paid out persons, in whose respect the Federal Law to these members of the Board of Directors stipulates limitation or prohibition on receipt of any payments from commercial organizations Participation of a member of the Board of No remuneration shall be calculated and paid out Directors in less than 50% of meetings of the to this member of the Board of Directors Board of Directors The total amount of remuneration of all members No remuneration shall be paid out to the of the Board of Directors exceeds the Company's members of the Board of Directors net income in accordance with RAS for the last year Holding less than 3 meetings of the Committee of No remuneration for chairmanship and/or the Board of Directors membership of this Committee shall be paid out The Company provides for compensation of expenses related to participation in meetings of the Board of Directors or Committees, General Meetings of Shareholders to members of the Board of Directors of ROSSETI in accordance with the rules for reimbursement of travel expenses established by the Company. No severance pay, compensation and other provisions are paid in the Company in the event of early termination of powers of a member of the Board of Directors. Remuneration to the members of the Board of Directors in 2020 for the period of their performance amounted to 27,394,230.80 RUB.

Committees of the Board of Directors The committees of the Board of Directors of ROSSETI are one of the key elements of the corporate governance system of the Company, being responsible for the preliminary study and examination of the most significant issues falling within the competence of the Board of Directors of the Company. The effective and professional work of the Committees allows to improve the quality and depth of analysis when considering certain aspects of the Company's activities and its subsidiaries and dependent companies (SDCs), as a result of which recommendations are provided to the Board of Directors in terms of voting on agenda items.

In 2020, there were four Committees in ROSSETI:

 Audit Committee (AC);  Nomination and Remuneration Committee (N&RC);  Investment, Technical Policy, Reliability, Energy Efficiency and Innovation Committee (CITPREEIC);  Strategy Committee (SC).

35 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

36

Executive bodies of ROSSETI The management of the Company's day-to-day activities is carried out by the collegial and sole executive bodies, namely, the Management Board and the Director General of ROSSETI.

The competence of the executive bodies includes resolving issues related to the ROSSETI's day-to-day activities, except for the issues referred, in accordance with the Articles of Association of the Company, to the competence of the General Meeting of Shareholders and the Board of Directors. Management Board The Management Board of the Company is a collegial executive body, whose tasks include joint consideration, analysis, and decision-making on the most important issues of the Company's day-to-day activities, control over which is referred to the competence of the executive bodies. In its activities, the Management Board is guided by the requirements of the Articles of Association and the Regulations for the Management Board of the Company21, ensuring the execution of resolutions of both the General Meeting of Shareholders and the Board of Directors. The number of members of the Management Board of the Company is determined by the Board of Directors of ROSSETI as advised by the Director General of the Company. Candidates for members of the Management Board are submitted to the Board of Directors for consideration by the Director General of the Company, except for his own. Election and early termination of powers of members of the Management Board are carried out by the Company's Board of Directors. As of December 31, 2020, the Management Board of ROSSETI consisted of 7 members.

ROSSETI Management Board as at December 31, 2020 Pavel Anatolievich Director General, Livinsky Chairman of the Management Board of ROSSETI22 Andrey Yevgenyevich Member of the Management Board, Murov First Deputy Director General — Executive Director of ROSSETI Pavel Vladimirovich Member of the Management Board, Grebtsov Deputy Director General for Economic Affairs and Finance Alexander Member of the Management Board, Arkadevich Zaragatsky First Deputy Director General of ROSSETI Andrey Vladimirovich Member of the Management Board, Mayorov First Deputy Director General of ROSSETI Aleksey Valeryevich Member of the Management Board, Molsky Deputy Director General for Investment, Capital Construction and Sales Of Services Larisa Anatolievna Member of the Management Board, Romanovskaya First Deputy Director General

Details on the biographies of current Board members are available on the Company's corporate website http://www.rosseti.ru/about/management/Pravlenie/

21 Approved by the Annual General Meeting of Shareholders on June 27, 2019 (Minutes w/o No.). 22 Position changed after the reporting date. Since January 2021, Pavel Anatolievich Livinsky is not the Director General, Chairman of the Management Board of ROSSETI. 36 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

37

Report on the activities of the Management Board Members In the reporting period, 79 meetings of the Management Board of the Company were held, including 3 in- person meetings, and a total of 451 items were considered. Sole executive body (Director General) In accordance with the Company's Articles of Association, Director General of ROSSETI is in charge of the Company's day-to-day activities and is elected by the Board of Directors of ROSSETI in accordance with the directives of the Government of the Russian Federation. The Director General also heads the Management Board of the Company.

From September 2017 to January 2021, the functions of the sole executive body of ROSSETI — Director General were performed by Pavel Anatolievich Livinsky.

On January 15, 2021, Andrey Valeryevich Ryumin was appointed Acting Director General and Chairman of the Company's Management Board23. On February 12, 2021, Andrey Valeryevich Ryumin was elected Director General of ROSSETI24.

Details on the biography of current Director General are available on the Company's corporate website http://www.rosseti.ru/about/management/Pravlenie/.

Remuneration to the Management Board and Director General The remuneration system for the members of the Management Board of ROSSETI is aimed at ensuring their material interest in achieving the strategic goals of the Company and increasing the economic efficiency of management, as well as ensuring a fair and competitive level of remuneration. The remuneration of the Director General of ROSSETI is determined by the terms of the employment contract. The remuneration of the members of the Management Board is determined by the Regulations on material incentives for top managers of ROSSETI.

Report on the actual remuneration and compensation paid to the members of the Management Board and the Director General of the Company 25

Remuneration to the Director General and members of the Management Board accrued in 2020, thousand RUB Remuneration for participation in the work of the management body 8,738 Salary 150,061 Bonuses 158,636 Other types of remuneration 13,443 Total 330,878 The amount of the bonus part of the remuneration for 2020 was determined based on meeting KPIs and target values.

23 Resolution of the Board of Directors dated January 14, 2021 (Minutes No. 446 dated January 14, 2021). 24 Resolution of the Board of Directors dated February 12, 2021 (Minutes No. 448 dated February 12, 2021). 25 Information on the remuneration paid is disclosed on the Company's website as part of the quarterly report http://www.rosseti.ru/investors/info/quarter/doc/qr0420.pdf. 37 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

38

Corporate Secretary The Corporate Secretary is functionally subordinate to the Board of Directors, and administratively, due to the peculiarities of the labor legislation of the Russian Federation, to the Director General of the Company.

In accordance with the Regulations for the Corporate Secretary of the Company, the functions of the Corporate Secretary include:

 informing the Board of Directors of the Company about compliance with the legislation and provisions of internal documents in the field of corporate governance;  taking part in the interaction of the Company with its shareholders and prevention of corporate conflicts;  taking part in the organization of General Meetings of Shareholders of the Company;  taking part in the implementation of the information disclosure policy, as well as ensuring the storage of corporate documents of the Company;  taking part in improving the system and functioning of the Company's corporate governance;  ensuring the operations of the Company's Board of Directors and its Committees.

The functions of the Corporate Secretary of the Company are performed by Natalia Nikolayevna Baranyuk.

Details on the biography of the current Corporate Secretary are available on the Company's corporate website http://www.rosseti.ru/about/management/secretary/

38 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

39

Stocks and Exchange Information Listing Moscow Exchange

 Ticker: RSTI; RSTIP  Listing Date: December 3, 2008  Quotation List — the first  segment: main market.

London Stock Exchange

 Ticker: RSTI  Listing Date: December 8, 2011  1 Depositary Receipt corresponds to 200 ordinary shares of ROSSETI  segment: Main Market Standard Listing, IOB platform.

Indexes, which include shares of ROSSETI Index Index name Code Weight in index,%26 currency Russian Indexes Moscow Exchange Index27 IMOEX 0.23 ordinary share RUB RTSI 0.23 ordinary share USD Share Subindex MOEX EPSI 0.26 ordinary share RUB 13.43 ordinary share  RUB MOEXEU 0.85 preference share  RUB Electricity Index 13.43 ordinary share  USD RTSeu 0.85 preference share  USD Medium and Small Cap Index MCXSM 3.63 ordinary share ↓ RUB RTSSM 3.63 ordinary share↓ USD Government Equity Index MOEX SCI 1.59 ordinary share↓ RUB 0.21 ordinary share  RUB MOEXBMI 0.01 preference share  RUB Broad Market Index 0.21 ordinary share  USD RUBMI 0.01 preference share  USD

Index Name Weight in index, %28 ESG Index Responsibility and Transparency Index 0.39 ordinary share Sustainable Development Vector Index 5.23 ordinary share International indexes FTSE All-World <0.005 ordinary share  FTSE Emerging 0.08 ordinary share 

26 As at December 31, 2020. 27 Since September 2020. 28 As at December 31, 2020 39 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

40

ROSSETI Stock Market

ROSSETI market share price dynamics for 2020, rub.+35% ROSSETI Capitalization Dynamics at the end of 356.3356,3 the year, bln RUB 2,201 279.8279,8 1,629 228228,6.6 1.753 166166,9.9 1,3839 +27% 156156,2.2

75.675,6

Ordinary shares Preference shares 2015 2016 2017 2018 2019 2020

General information on the ROSSETI Shareholding  As at December 31, 2020, the registered share capital of ROSSETI amounted to RUB 200,903,014,525.  Share capital is divided into 200,903,014,525 shares with a par value of 1 ruble, including 198,827,865,141 ordinary and 2,075,149,384 preference shares.  The total number of shareholders holding ROSSETI ordinary and/or preference shares is more than 351,000 persons.  The state owns 88.04% of the share capital, the share of legal entities and individuals is 9.17% and 2.79% respectively.  The share of the free float ordinary shares is 11.1% of the total number of ordinary shares. The share of free float preference shares is 53% of the total number of preference shares.  ROSSETI issued no shares in 2020.

ROSSETI Shareholding Structure as at December 31, 2020 Owner accounts and trust Number of securities on accounts Range of ownership management Number Share Amount of securities Share 1. Less than 0.01% 351,290 99.9650% 4,509,919,823 2.24% 2. 0.01%–0.05% 85 0.0242% 3,792,402,024 1.89% 3. 0.05%–0.1% 18 0.0051% 4,252,758,263 2.12% 4. 0.1%–0.5% 16 0.0046% 6,306,502,441 3.14% 5. 0.5%–1% 2 0.0006% 2,603,994,637 1.30% 6. 1.0%–2.0% 1 0.0003% 2,562,400,000 1.28% 7. More than 2.0% 1 0.0003% 176,875,037,337 88.04% Total 351,413 100.00% 200,903,014,525 100.00%

No data for the ownership percentage of ROSSETI shares exceeding 5% except the state's share is available at the Company.

40 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

41

Depositary Receipts ROSSETI's global depositary receipts have been traded on the London Stock Exchange in the Main Market since December 8, 2011 and admitted to trading on the Moscow Exchange in the interdealer REPO mode since May 28, 2014.The ratio of one depositary receipt to ROSSETI share is 1:200.

Since the ROSSETI depositary receipts for shares are traded on the London Stock Exchange in the Main Market in the Standard Listing category, the Company shall comply with the Listing Rules and the Disclosure and Transparency Rules requirements for depositary receipts.

Interaction with Investors and Shareholders In the reporting year, the entire list of channels of interaction with the investment community was used, taking into account the restrictions associated with COVID-19: holding individual meetings, including in investment forums, conference calls, raising awareness of the consolidated financial results of ROSSETI and the ROSSETI Group, provision of necessary operating information. The coverage of sustainability performance was considered an individual task by the Company for the first time. During 2020, the Company was committed to providing the most detailed information on approaches and outcomes in the area of sustainable development at the dialog with investors, ESG agencies, stock market analysts through the meetings and online inquiries.

41 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

42

Risk management system and Internal Control Risk Management System In their operating activities, ROSSETI and the ROSSETI Group are affected by external and internal risks that can have a significant impact on results of activities in general. Monitoring, forecasting, preventing and minimizing the negative consequences of risks are some of the most important tasks of the Company's management system.

In order to determine the general principles of building a risk management system, its goals, objectives and approaches to organization and operation, to establish the distribution of responsibilities among the participants of the risk management system, the Board of Directors of the Company29 approved restated Risk Management Policy of ROSSETI that takes into account the provisions of the international standard ISO 31000-2018, Risk Management — Guidelines, COSO international concept of Organization risk Management Integrating with Strategy and Performance.

Basic principles of the Risk Management System:

 focuses on forming and preserving the value of ROSSETI;  contributes to the achievement of the objectives set out in strategic and tactical planning documents;  is an integral part of the decision-making system at all levels of management;  contributes to achieving an optimal balance between risks and returns in general, taking into account the requirements of the legislation, the provisions of internal documents, and the Articles of Association of ROSSETI;  is based solely on quality, up-to-date, tested and verified information;  is a dynamic and change-responsive process;  promotes the development of a corporate culture of adherence to principles and decision-making that takes the risks into account;  is the subject of ongoing monitoring, resulting in the development of measures to improve and develop the risk management system;  the risk management process involves all business processes participants responsible for risk management.

Key Risks Critical risks Impact on key Risk Name of risk performance Risk management events materiality indicators level in 2021 1. Forecasting and monitoring of electricity consumption is carried out by voltage level, the price (tariff) for electricity Reduction in the transmission services of which is differentiated, and by category volume of electricity Achieving consolidated of consumers, as well as monitoring of the physical parameters of transmission services earnings from the electric energy and capacity balance, and working to improve Significant to consumers operations (EBITDA) the accuracy and reliability of demand planning for electricity and connected to regional capacity. distribution networks 2. Working with consumers of electricity transmission services to agree on planned volumes of services, including the declared

29 Decision of the ROSSETI Board of Directors dated November 23, 2020 (Minutes No. 440 dated November 24, 2020). 42 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

43

capacity, for inclusion in the relevant contracts for the provision of electricity transmission services and submission to the state regulation of tariffs. 3. Carrying out inspections of off-the-record electricity consumption. 4. Taking measures to resolve disagreements in determining the scope of obligations under contracts for the provision of electricity transmission services and (or) purchase of electricity, for the purposes of compensation of technological consumption (losses) of electricity and prevention of their occurrence in the future: - analyzing the causes of disagreement in the coordination of services; - conducting negotiations with consumers of services; - developing measures to eliminate differences; - making amendments to the terms of contracts. 5. Taking measures aimed at compliance by market participants (electricity consumers, local grid companies, mono-grid organizations, single consumers) with regulatory decisions (including: physical parameters of balance of electricity and capacity, and voltage levels, taken into account by the regulator when calculating tariffs). 6. Implementing energy conservation and energy efficiency programs, including electricity loss reduction programs and long- term development of electricity recording systems. 7. Taking measures to include in the tariff and balance-sheet decision (TBD) the fallout revenues arising from the difference between the volumes of electricity transfer services recorded in the formation of the TBD and the actual values at the end of 2020, in order to prevent the occurrence of unearned income. 8. Taking cost optimization measures. 9. Introducing and disseminating electronic smart metering tools, automated systems for collecting and processing data on the readings of electronic metering devices, the formation of balances of electricity and capacity, and volumes of electricity transmission services based on these data. 1. Monitoring the financial stability of counterparties, the presence of initiated or introduced bankruptcy and liquidation procedures in their regard. 2. Establishment and timely filing of claims of companies of the Bankruptcy and Achieving consolidated ROSSETI Group as part of debtor bankruptcy cases. liquidation of earnings from Critical 3. Challenging transactions under the rules of Chapter III.1 of the counterparties operations (EBITDA) Bankruptcy Law (if any). 4. Consideration of issues on balancing of payments to debtors, sale of debt to third parties, conclusion of a settlement agreement as part of debtor bankruptcy cases. 1. Claims and claim work, control of the timing. 2. Analysis of the causes of disagreement and formation of a unified position on controversial issues, taking into account the results of judicial practice. Disagreements on the 3. Development and promotion of initiatives to amend legislation volume and cost of with a view to eliminating ambiguities in the interpretation of Achieving the planned services rendered, norms. level of receivables for including on acts of 4. Formation of a schedule of measures to reduce overdue Significant electricity transmission unaccounted for receivables for electricity transmission services. services consumption of 5. Monitoring the adherence to deadlines of claims and claim electricity work in accordance with the schedule of measures for the reduction of receivables. 6. Structuring disagreements on the likelihood of recovery on the basis of judicial practice in order to allocate only illiquid disagreements to reserves for dubious debts.

43 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

44

7. Signing of additional agreements to contracts for the provision of electric transmission services and to contracts of purchase of electricity for the purpose of compensating for electrical energy losses. 1. Implementation of the integrated program for reducing the risk of injury of industrial personnel. 2. Conduct of activities in accordance with the Acts of accident investigation. Accidents with the 3. Monitoring the level of occupational safety in branches. No increase in the ROSSETI Group 4. Organization of extraordinary inspections of structural units number of employees employees in the with respect to compliance with occupational safety Critical of the ROSSETI Group workplace requirements established in the ROSSETI Group. affected by accidents 5. Conduct of unscheduled briefings to the ROSSETI Group's personnel and the staff of contracting organizations. 6. Implementation of the Program of measures to improve conditions and occupational safety, and reduce occupational risks. 1. Implementation of action plans for preventing and combating corruption, implementation of the requirements of Article 13.3 of the Federal Law dated December 25, 2008 No. 273 On Corruption Counteraction. 2. Carrying out preventive information and explanatory work, Involvement of the Compliance with training activities on approved anti-corruption regulatory Company/ Company’s legislation, including documents aimed at minimizing the risk of involvement of Critical employees in anti-corruption laws employees of the ROSSETI Group in corruption activities. corruption and antimonopoly laws 3. Conducting control measures for compliance with the principles of the Anti-Corruption Policy of the ROSSETI Group by employees of the ROSSETI Group. 4. Formation of anti-corruption corporate awareness and behavior among shareholders, partners, counterparties, members of management and control bodies, employees.

Significant risks Risk Impact on key Name of risk Risk management events materiality performance indicators level in 2021 Increase in the price of electricity Achieving consolidated 1. Monitoring the price of electricity on the Wholesale Electricity purchased to earnings from and Capacity Market. Moderate compensate for operations (EBITDA) 2. Monitoring the sales allowances of guaranteeing suppliers. losses Increase in the cost of 1. Monitoring and forecasting of the flow of electricity in the electricity Achieving consolidated network, from networks of related network organizations, transmission services earnings from physical parameters of balance of electricity and capacity, work Moderate of other grid operations (EBITDA) to improve the accuracy and reliability of cost planning for related organizations network organizations. 1. Monitoring of the volume of connected capacity relative to the planned capacity. 2. Maintenance of claims and claim work. Reduction in the Achieving consolidated 3. Ensuring the provision of service for the applicant EC turnkey. volume of connected earnings from 4. Ensuring that notes are sent to applicants on the procedure for Moderate capacity relative to operations (EBITDA) the planned capacity the completion of EC. 5. Ensuring the timely closure of EC contracts after the installation of accounting nodes by the network organization.

Deviation of the Achievement of 1. Obtaining economic-based tariff and balance sheet decisions DEBT/EBITDA consolidated net debt / taking into account the compliance of a tariff level not lower than Significant indicator EBITDA indicators the level of the approved business plan.

44 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

45

2. Control of not exceeding the approved operating costs and achieving the set targets for reducing unit operating costs. 3. Control of the deadlines for implementation of investment projects by costs and timelines. 4. Not exceeding the approved amount of financing of the Investment Program (IP), taking into account fulfillment of obligations to connect applicants under EC for the purpose of timely execution of second-time applications and reduction of the risk of receiving complaints. 5. Implementation of the schedule of measures to reduce overdue receivables for electricity transmission services. 1. Control of fulfillment by contractors of obligations to pay for services for transfer of volumes of electricity within the established deadlines, carrying out measures for pre-trial settlement of disagreements. 2. Submission of claims to the court. 3. Initiation of the Interdepartmental Commission on Compliance with Payment Discipline by participants in the wholesale and Failure by third retail electricity markets. parties to pay for 4. Interaction with the authorities and security agencies of the electricity Achieving the planned region in terms of compliance with payment discipline on the part transmission services level of receivables for of third parties for services rendered. within the terms Significant electricity transmission 5. Monitoring the execution of the IDP deadlines in accordance established by the services with the schedule of measures for the reduction of receivables. agreement/contract 6. Presentation of penalties provided for by Federal Law for and/or incomplete counterparties violating payment deadlines, FZ No. 307 on payment Amendments to Certain Legislative Acts of the Russian Federation in connection with strengthening the payment discipline of consumers of energy resources dated November 03, 2015. 7. Implementation of measures to reduce overdue debts for electricity transmission services. 8. Conclusion of an agreement on the restructuring of receivables for electricity transmission services. 1. Implementing energy conservation and energy efficiency programs, including electricity loss reduction programs and long- Absence of electric term development of electricity recording systems. energy metering 2. Introduction and dissemination of electronic smart metering devices, their Electricity loss rate, % Moderate tools, automated systems for collecting and processing data on depreciation and the readings of electronic metering devices, the formation of wear and tear balances of electricity and capacity, and volumes of electricity transmission services based on these data. 1. Organization of monitoring of timely review of applications for EC, including automation of EC activities. 2. Ensuring the fulfillment of accrued obligations under previously concluded contracts on the implementation of EC, the period for which the ROSSETI Group has violated. 3. Actualization of demand for EC under previously concluded contracts 4. Issuance of notifications to applicants on performance of obligations by the network company in a way that allows us to Unreadiness of Compliance with timing confirm receipt, in case of fulfillment of obligations under applicant facilities for Significant of electricity connection contracts on the part of the ROSSETI Group and failure to receive electricity connection notification on execution of EC measures from the applicant. 5. Ensuring compliance with the deadlines for fulfillment of warnings from the FAS of Russia and its territorial authorities in terms of EC contracts. 6. Monitoring of timely execution of EC contracts (at each stage: development of TS, calculation of the cost of EC, carrying out trade and procurement activities, conclusion and execution of contracts, execution of EC contracts in an economic way), including automation of EC activities.

45 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

46

7. Establishment and approval of a register of EC contracts that are subject to priority implementation in the current period. 8. Reminders to applicants on the procedure for the completion of EC. 9. Ensuring the timely closure of EC contracts after the installation of accounting nodes by the network organization. Contractors' failure to 1. Step-by-step monitoring of compliance with the schedule of comply with the construction and installation work. Execution of the deadlines of drafting, 2. Conducting claims work with contractors who violate schedule of launching Moderate supply, construction, contractual obligations. of facilities, % and launching of 3. Input quality control of materials and equipment, including facilities independent construction control. 1. Control of the timing of performance by claimants of obligations under the EC agreement for payment of services Violation by the under the EC contract, sending a claim to the debtor. consumer of 2. Quality control and timely direction of procedural documents, obligations in terms Execution of the formation of a stable evidence base for collecting the full amount Moderate of payment for schedule of launching under the EC contract. services under the of facilities, % 3. Control of enforcement proceedings. Interaction with the electricity connection Federal Bailiff Service and debtors at all stages of collection of agreement receivables. 4. Enabling pre-trial settlement of issues with applicants. 1. Formation of the ROSSETI Group's investment program Insufficient (proposals for adjustment is carried out in the medium-term plan substantiation of Efficiency of innovation for realization of the Innovative Development Program in innovative solutions Significant activity accordance with the Scenario conditions of IDP formation for inclusion in the approved by the Boards of Directors, within the framework of investment program available funding sources. 1. Control of trade and procurement procedures at the Mismatch of works construction and installation work after approval of the project performed with documentation. design and estimate Reduction of unit 2. Control of conformity of the works performed with design and documentation, low Moderate investment costs estimate documentation. 3. Implementation of incoming quality quality of control of materials and equipment. equipment/materials, 4. Conducting claims work with contractors who violate etc. contractual obligations. 1. Control of compliance by the ROSSETI Group’s employees with the main prohibitions and restrictions of antimonopoly legislation. 2. Implementation of antimonopoly compliance. 3. Preparation of the ROSSETI Group's position and representation of the Company's interests before arbitration courts on the recognition of decisions and orders of the FAS of Russia (territorial bodies) as unlawful, including in the framework Violations by the of procurement activities. Compliance with Companies/employee 4. Appeal before arbitration courts of decisions of the legislation, including s of the ROSSETI antimonopoly authority on bringing the ROSSETI Group to legislation on the Group of the main administrative liability within its main and procurement activities. prevention and Significant prohibitions and 5. Information was sent to the antimonopoly authorities on the combating of corrupt restrictions of inclusion of participants in procurement procedures in the activities and antimonopoly register of unscrupulous suppliers. antimonopoly laws legislation 6. Preparation of the ROSSETI Group's position and representation of the Company's interests at meetings in the Federal Antimonopoly Service of Russia (territorial bodies) when considering appeals (complaints) against the actions (inactions) of the ROSSETI Group during substantive and procurement activities. 7. Control of timely submission of materials and information to the antimonopoly authority by structural units of the executive apparatus and branches of the ROSSETI Group.

46 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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8. Monitoring the timely review of applications for electricity connection.

Violation and (or) 1. Implementation of the activities of the Integrated Information termination of the Security System Development Program. functioning of 2. Identification of computer incidents resulting in undue impact information Ensuring on the power grid facilities and their information and infrastructure comprehensive safety telecommunications systems. Elimination of vulnerabilities, Significant facilities and of the activities minimization of negative consequences. telecommunication 3. Minimization of natural technical failures in the protection systems of power grid systems of information and telecommunication systems of power facilities grid facilities. Deliberate unlawful actions by both legal 1. Strengthening the security of the ROSSETI Group's facilities and entities and property, installation and improvement of previously established individuals and security equipment. Ensuring employees of the 2. Conducting control measures and service inspections to comprehensive safety Significant ROSSETI Group, identify signs of unlawful actions by legal entities and individuals, of the activities causing economic as well as employees of the ROSSETI Group. damage and harm to 3. Referral of applicant materials to law enforcement agencies, our business organization of interaction with law enforcement agencies. reputation 1. Control of measures aimed at increasing the stability of internal information resources to external illegal (harmful) influences, improving the measures taken. Ensuring 2. Signing agreements on the transfer of information constituting Improper access to comprehensive safety trade secrets. Moderate sensitive information of the activities 3. Training activities for employees to ensure the proper implementation of the rules for the maintenance of means of storage, processing and transfer of confidential information contained in the information systems of power grid facilities. Illegal influence on the power grid 1. Implementation of the Targeted Program to enhance anti- facilities and their terrorist and anti-subversion security of facilities. information and 2. Monitoring and analysis of the effectiveness of security telecommunications Ensuring systems for information and telecommunications systems. systems (terrorist, comprehensive safety Significant 3. Organization of back-up systems (copies) and emergency sabotage, criminal of the activities (backup) power systems to maintain the reliability and protection and other types), of information and telecommunications systems of power grid including with the use facilities. of information technology

Internal Control System The ROSSETI Group's internal control system is designed to minimize risks arising while achieving the strategic and operational objectives of the Company, as well as to increase the efficiency of the Company's activities, to ensure compliance with the requirements of the legislation and local regulations of the Company, and to ensure the reliability and timeliness of accounting (financial) and management reporting of the Company. Internal control is integrated into the risk management system and is an integral part thereof.

The procedure for internal control in the ROSSETI Group is regulated by the Internal Control Policy approved by the Board of Directors of the Company on November 16, 20158.

8 Decision of the Board of Directors of ROSSETI dated November 16, 2015 (Minutes No. 208 dated November 18, 2015). 47 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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In accordance with the Internal Control Policy, responsibility for the proper organization and execution of control procedures rests with all participants in the internal control process within the powers established by the Articles of Association of the Company, the Internal Control Policy, local regulations of the Company, regulations on structural divisions, and employee job descriptions.

Internal Audit Commission In order to control the financial and economic activities of ROSSETI, the Company has established an Internal Audit Commission — a permanent control body formed by decision of the General Meeting of Shareholders and accountable to it.

Key issues considered by the Internal Audit Commission in the reporting year: Control of financial and economic activity, Audits of financial and economic activity for 2019 and 9 months of elimination of identified shortcomings 2020 were carried out. following the results of inspections No significant violations have been revealed. Validity assessment of data contained in the The annual report for 2019, the annual accounting (financial) annual report and annual accounting statement for 2019 and the statement for 9 months of 2020 have statements been considered. No misrepresentations of data that can significantly affect said reporting have been identified. Informing on violations of the procedure for Issues of preparation of accounting (financial) statements and keeping accounting statements, presenting compliance with the rules of accounting have been considered. financial statements, and the procedure for No significant violations have been revealed. the implementation of financial and economic activities Control of the legality of financial and The report on transactions concluded in 2019 in which there is an economic transactions interest has been considered. No violations of the law were revealed.

Information about the current composition of the Internal Audit Commission is available on the Company's corporate website http://www.rosseti.ru/about/management/commission/

Internal audit ROSSETI has established and effectively operates a division that performs internal audit functions and reports to the Company Board of Directors, the Internal Audit Department.

The purpose of the internal audit is to assist the Board of Directors and executive bodies of the Company in improving the efficiency of the Company's management, improving its financial and economic activities, including through a systematic and consistent approach to the analysis and evaluation of the risk management system and the internal control and corporate governance system as tools for ensuring reasonable confidence in achieving the Company's goals.

Functional subordination of internal audit to the Company Board of Directors means that the Board of Directors exercises control and organization of the activities of the internal audit unit, including:

 approval of the internal audit activity plan;  review of the report on implementation of the internal audit activity plan; 48 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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 approval of the internal audit unit budget;  consideration of significant restrictions on the powers of the internal audit unit or other restrictions that could negatively affect the implementation of internal audit;  approval of decisions on appointment, discharge, and determination of remuneration of the head of the internal audit unit. Goals and objectives, basic principles of organization, functions and powers of internal audit are defined in the Internal Audit Policy of ROSSETI, approved by the Board of Directors on March 5, 2020 30. In addition, the Company has other internal documents regulating the function of internal audit.

According to the results of internal assessment (self-assessment) of the quality of internal audit activities in the ROSSETI Group for 2020, the internal audit activity corresponds to the assessment 3.9 31, which, according to the approved evaluation methodology, belongs to the category “generally conforms”.

The satisfaction indicator of the Audit Committee under the Company Board of Directors with the results of the internal audit unit in 2020 corresponds to the assessment 1.15 32 (meaning “conforms”). No comments were made by members of the Audit Committee under the Board of Directors to the internal audit activities.

External audit In order to independently assess the reliability of the accounting (financial) statements, the Company annually engages an external auditor to conduct an audit of reports prepared under IFRS and RAS. External auditors are engaged on the basis of competitive procedures ensuring objective selection by criteria taking into account the scope and time of work, as well as the specifics of the Company's activities. The candidacy of the Company's auditors, as well as those of its subsidiaries and affiliates (including the basic terms of contracts on the basis of which auditors are engaged) are considered tentatively by the Audit Committee of the Company Board of Directors to make recommendations for further approval of external auditors in accordance with the procedure established by law.

2018 2019 2020 Auditor (RAS and IFRS) RSM RUS RSM RUS RSM RUS Cost of reporting audit services RUB 4,034 RUB 4,068 RUB 4,068 thousand thousand thousand Cost of other services excluding mandatory No service (RUB No service (RUB No service (RUB audit (providing the services related to audit) 0) 0) 0)

30 Approved by the Board of Directors of ROSSETI on March 5, 2020 (Minutes No. 399). 31 Information on internal evaluation (self-assessment) of the internal audit will be updated upon receipt of the minutes of the meeting of the Audit Committee, which will review the report on the results of the internal assessment (self-assessment) of the quality of internal audit activities in the ROSSETI Group. 32 The evaluation takes into account estimates deemed “not applicable” (4 points). Information on the results of the evaluation of internal audit of the Company by the Audit Committee of the ROSSETI Board of Directors will be updated upon receipt of the minutes of the meeting of the Audit Committee, which will review the report on the results of the internal assessment (self-assessment) of the quality of internal audit activities in the ROSSETI Group. 49 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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In April 2020, the Audit Committee under the Board of Directors reviewed the results of the Company's reporting audit for 2019 and the external auditor's opinion and, as a result, no problematic issues related to reporting were found.

ROSSETI Group Structure Subsidiaries and dependent companies as of December 31, 2020

Name Head office location Grid companies PJSC FGC UES Moscow ROSSETI Kuban Krasnodar IDGC of the North-West Saint Petersburg ROSSETI Moscow Region Moscow ROSSETI Volga Saratov ROSSETI Tyumen Surgut Yantarenergo Kaliningrad ROSSETI Siberia Krasnoyarsk Tyvaenergo Kyzyl IDGC of the Urals Yekaterinburg ROSSETI Lenenergo Saint Petersburg TDC Tomsk ROSSETI North Caucasus Pyatigorsk Chehenenegro Grozny IDGC of Center and Volga Region Nizhny Novgorod IDGC of Centre Moscow ROSSETI South Rostov-on-Don Retail companies Kabbalkenergo Nalchik Karachaevo-Cherkesskenergo Cherkessk Kalmenergosbyt Elista Sevkavkazenegro Vladikavkaz Dagestan Energy Supply Company Makhachkala Tyvaenergosbyt Kyzyl R&D, construction, maintenance and other companies JSC ENIN Moscow JSC CTZ Moscow “Management VOLS-VL” JSC Moscow JSC “NIC UES” Moscow JSC SZEUK Saint Petersburg LLC "Infrastructure Investments-3" Moscow Subsidiaries in relation to subsidiaries of ROSSETI LLC Digital Accounting Center Pyatigorsk JSC OPERATOR ASTU Moscow JCS FTC Moscow

50 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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Glossary Term/Abbreviation Meaning ANO Autonomous Non-Profit Organization BRELL Electric ring: Belarus — Russia — Estonia — Latvia — Lithuania Conseil International des Grands Reseaux Electriques Haute Tension CIGRE (International Council on Large Electric Systems) (RNC SIGRE — Russian National Committee CIGRE) DGC Distribution grid companies EBITDA, Adj. EBITDA Earnings before interest, taxes, depreciation and amortization. Adj. EBITDA — Adjusted EBITDA

FAS Russia Federal Antimonopoly Service of the Russian Federation FGC UES Federal Grid Company of the Unified Energy System GOST State standard IDGC Interregional distribution grid company IFRS International Financial Reporting Standards JSC Joint-Stock Company KPI Key performance indicators OPEX Operating expenses OS Ordinary shares PJSC Public Joint-Stock Company PS Preference shares Average duration of the termination of electric power transmission to the Psaidi point of supply, hours Psaifi Average frequency of the termination of electric power transmission to the point of supply, pcs. RAB regulation Regulatory Asset Base RAO UES of Russia Russian Joint-Stock Company Unified Energy System of Russia R&D Research and development SC Share capital SDCs Subsidiaries and dependent companies SS Substation TDC ROSSETI Tomsk VAT Value-added tax

Units of measurement Meaning GVA Gigavolt-ampere kV Kilovolt kWh Kilowatt-hour km Kilometer MVA Megavolt-ampere MW Megawatt mn Million bn Billion p.p., subpara. Subparagraph, percentage point RUB Russian ruble thsd Thousand pcs. Pieces 52 The accompanying notes are an integral part of these Consolidated interim condensed financial statements

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Contact Information Legal address: Russia, 121353, Moscow, st. Belovezhskaya, 4 Postal address: Russia, 121353, Moscow, st. Belovezhskaya, 4 Location: Russia, Moscow, st. Belovezhskaya, 4 Telephone: +7 (495) 995-53-33 (from 9 a.m. to 6 p.m., Moscow time) Tel./fax: +7 495 664-81-33 Email: [email protected]

53 The accompanying notes are an integral part of these Consolidated interim condensed financial statements