ANNUAL report 2011

ENERGY OF LIFE APPROVED BY:

Annual general meeting of shareholders of “Grid Company” OJSC

June 18, 2012

Minutes No.26 dated June 20, 2012.

Preliminary approved by

Board of Directors of “Grid Company” OJSC

May 14, 2012

Minutes No.11/2012 dated May 16, 2012 TABLE OF CONTENTS:

Statement by the Chairman of Board of Directors of «Grid Company» OJSC 3

Statement by the General Director of «Grid Company» OJSC 4

Company’s Mission and Strategic Targets 7

Key Events – 2011 11

1. General Information about Company 19

2. Equity Capital 33

3. Corporate Governance 39

4. Financial and Economic Activity 59

5. Social Responsibility 79

6. Productive Activity 95

7. Annexes 137

Provision of overheating of our economy has become First steps were taken for development of “Regional possible owing to innovative development of high-quality intellectual network in the Republic of ” strategic and knowledge-intensive production, intensification of Project. This innovative project would permit to decrease interrepublican and interregional cooperation, setting-up significantly the length of cable links, to increase many times of technological and industrial parks. A variety of major the precision of energy accounting measurements and to ort

industrial projects has been successfully implemented; provide high-noise immunity and ecological friendliness p

results-oriented preparation for holding the largest world of equipment. re sports forums is being carried out at full pelt — 2013 Summer Universiade and 2018 FIFA World Cup. Thus, our Summarizing the activity for 2011, it is necessary to note

Republic has buttressed its positions more as one of the that positive results have been attained in all the areas of ANNUAL most dynamically developing subjects of the Russian the Company’s production operation. It is necessary herein Federation. It managed to attain such high performance to pursue traced course aimed at rising administrative also at the expense of steadily functioning electrical grid effectiveness, capitalization growth and implementation infrastructure. of socially important programs. Within the framework of execution of the Republican program on energy saving and «Grid Company» OJSC is developing in compliance with efficiency upgrading for 2011-2015 we expect to perform 3 the strategy of reforming of electric power system of a large amount of work aimed to reducing energy loss in Tatarstan, directed to setting-up of stable power supply process of transportation in the mains. DEAR system by forming investment-attractive and competitive companies. ompany’s Board of Directors and staff operate Development of network infrastructure, improving of SHAREHOLDERS! being completely aware of the fact that progressive advance quality and reliability of services rendered, work serving of the prime sectors of economy is impossible without consumers’ interests should remain key principles of the Tatarstan of nowadays is one of the regions, where the reliable and high-quality functioning of electricity supply Company’s activity. issues of keeping and all-round development of the network complex. 2011 economy are being consistently solved. The projects in The priority strategic target of the Company for 2012 is the sphere of oil refining, petrochemistry, energetic, aircraft In the accounting year the Company’s Management directed careful scheduling and full-scale implementation of building, automobile production, instrument engineering its efforts to handling of such problems like improvement investment program in compliance with the development are being successfully implemented in our Republic. The of reliability of power-supply system of the Republic, thrust of the Republic. Republican enterprises take a noteworthy place in the world mobilization of complementary investments and innovative differentiation of labor, both in the sphere of extractive and development. I wish you fruitful work and further success. manufacturing activity.

Prime Minister of the Republic of Tatarstan, Chairman of Board of Directors of «Grid Company» OJSC I.Sh.Khalikov y” OJSC an mp o C d i r “G DEAR SHAREHOLDERS! 4 The Republic of Tatarstan is one of the most energy- During 2011 legal entities and individuals submitted 16 546 consuming regions of the country with the great number applications for technological connection, over 13 thousand of industrial facilities on its territory, such as facilities of oil contracts have been executed, among them 12.7 thousand production, petroleum chemistry, petroleum processing contracts with legal entities and individuals for linked up and other industrial facilities. In this connection the main power up to 15 kW. In 2011 the operations related to the objective of all the enterprises of electric power industry, connection to the electrical grid infrastructure of OSJC including «Grid Company» OJSC is continuous and high- “TANEKO” network of petrochemical and petroleum refining quality provision of consumers with electric power, as well plants of 159.9 mW aggregate capacity have been completed. as timely connection of applicants to network infrastructure.

ENERGY OF LIFE In 2011 the Company successfully dealt with the task. Last year the Company performed a large amount of work on commissioning of new facilities and reconstruction and In 2011 the scope of services on power delivery made 21.7 modernization of the existing ones. Totally the Company billion kWh, overall power of consumers’ power receivers utilized 4.9 billion rubles over the year. To comply with connected to the Company’s electrical networks during the advanced development of the Republic the Company the year made 321.7 mW. carries out large-scale re-equipment of the mains, for instance by developing electricity supply network complex of power district. ort p re ANNUAL

In the build-up to the APEC Summit in 2012 and 2013 Resource-2011" and XII “Energy Efficiency and Energy participation in implementation of “Cultural Heritage of Summer Universiade, the reconstruction of the power Saving” International Symposium, the Company Tatarstan” Global Project. supply network facilities of power district was was awarded the diploma for active participation in carried out: in the branch of "Kazan Electric Networks implementation of long-term programme “Energy Saving Development of network infrastructure, increase of quality 5 "Company the works on complete reconstruction of Gorki and Energy Efficiency Upgrading” Program in the Republic and reliability of services rendered, the work in the interests substation, reconstruction of Sovetskaya and Krylovka of Tatarstan for 2010-2015 and for long term till 2020”, of consumers have always been and remain the basic substation have been carried out, the operations at 500-kV as well as by 1st degree Diploma in accordance with principles of the Company’s staff activity. Kinderi substation, 500kV OL ZaiEMCZ – Kinderi, 110 kV the contest results “Energy-efficient Equipment and OL - Central Eastern are being continued; the operations Technologies” nominated “The Best Debut in Power The top-priority tasks of the Company for 2012 are as follows: on complete reconstruction of 220kV substation Central Engineering” of “Digital Substation” Project. development of distinct standards of forming of investment have been commenced; "Privolzhskie Electric mains”, “Grid program, Company’s operating activities efficiency

Company” have completed reconstruction of Airoport and The Company’s social policy was also recognized. Last upgrading, introduction of integration management system 2011 Tura substations; "Naberezhno-Chelninskie Electric mains" year the Company received the occupational health and and mastering of lean manufacturing system. The special carried out reconstruction of the third stage of Sidorovka safety management system certificate of conformance attention shall be paid to transmission arrangement in the backbone substation; "Nizhnekamskie Electric mains" have with the requirements of the International Standard Republic for the 2013 Summer Universiade, to reconstruction completed reconstruction of Gorodskaya SS, 220kV OL OHSAS-18001-2007 and GOST 12.0.230-2007 (ILO-OSH and renovation of distribution mains, equipping of power Zainskaya EMCZ – Nizhnekamsk. 2001). The Company became a prizewinner in “For Efficient facilities with automated electric power metering systems, Ecological Management” nomination in “ECOleader” implementation of the actions within the Republic Program In 2011 according to results of “Resource Efficiency. Republican Contest, was acknowledged one of the winners for energy saving and energy performance upgrading for Energy Saving” Republic competition, the official of “Charity Provider of the Year” Contest, was awarded 2011-2015. results of which were drawn up within the framework a letter of appreciation of the Republican Foundation for of the XIII International Specialized Exhibition "Energy. Historical and Cultural Monuments Restoration for active

General Director of “Grid Company” OJSC I.Sh.Fardiyev

Company’s Mission and Strategic ort p Targets re ANNUAL

What attracts one’s attention in the architectural panorama of any ENERGY OF city? Perhaps, bridges do. “Millennium” is the highest bridge in Kazan 7 — it was named so in honor of the millennium anniversary of the MOTION capital of Tatarstan. The first letter of its name “M” (more than 45 meters high and 64 meters from foundation to cap) is implemented in the style of a pylon and it is thank to it that Kazan bridge may not be confused with anything!

The bridge is 40 meters high and is designed in the shape of the arc. The type of construction fascinates, especially in nighttime light system.

The full length of the bridge crossing is 1524 m, guy-roped part is 318 m, joist part is 517 m with 689 m of footpaths, with more than 3 km ENERGY OF LIFE bridge approaches! All this is to connect two banks of the River and to merge the traffic flow of Vishnevskaya street and Amirkhan avenue into one, flowing into the Small Kazan Ring.

Millennium Bridge Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Company’s Mission and Strategic Targets y” OJSC an mp o COMPANY’S STRATEGIC TARGETS: Company’s Basic Goals are as follows: C d i r • decrease of depreciation level of electricity supply “G • No-break and high-quality supply of electrical power to consumers; network equipment; use of up-to-date technology concepts and innovation technologies; • Provision of opportunity of technological connection for each customer; • attaining of guaranteed reliability indices and quality of services standards rendered by the Company; 8 • Management quality efficiency upgrading and quality improvement. • increase of effectiveness, transparency and quality of the Company’s management;

Company’s Strategy is based on the following principles: • provision of development of the Republican electricity supply network complex to the extent that is suitable 110/35/10 kVSS • Company’s core activity efficiency upgrading; and favourable to the economic development in the region; • cresting of maximum comfort conditions for a consumer in the region of the Company’s activity; • staffing of the Company with high-skilled qualified personnel based on the Company’s development

VITAL ENERGY VITAL • security of rights and provision of all legal benefits of priorities. the Company’s shareholders;

• improvement of corporate governance, transparency increase of financial and economic activity;

• raising of social responsibility of the Company. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re COMPANY’S MISSION IS TO SECURE RELIABLE AND HIGH

QUALITY ELECTRICAL SUPPLY FOR CONSUMERS CONNECTED ANNUAL TO THE COMPANY’S ELECTRIC MAIN, CREATING CONDITIONS FOR SUPPORTIVE AND SAFE LIVING CONDITIONS OF PEOPLE 9 AND ACHIEVEMENT OF STATUTORY GOALS BY LEGAL ENTITIES. 2011

220 kV OL ZaiEMCZ – 500/220/110/10 kV SS Nizhnekamsk Kinderi

KEY EVENTS – 2011 ort p re ANNUAL

A new football stadium has been designed and constructed in the ENERGY OF forefront of victories: it was Kazan that won the right to host the 2013 11 Summer Universiade, 2015 FINA World Championships, 2017 FIFA VICTORIES Confederations Cup and, at last, matches of the 2018 FIFA Wolrd Cup. Little time would pass and the tribunes will be filled up with fans, excited by the forthcoming heat of the struggle and future triumphators shall come into the arena. There will be no losers at the stadium, as the energy of victory, empathy and involvement is capable of doing miracles.

The design concept of the stadium was developed by the UK architecture firm Populous, whose portfolio of iconic venues also includes Wembley, the Emirates, Arsenal. Chief architect of the project Damon Lavelle ENERGY OF LIFE provided a metal mesh façade and undulated shape of the stadium’s roof (the aerial view of the stadium reminds of a water lily), that allows the maximum amount of natural daylight into the interior spaces. Vast areas, up-to-date infrastructure and real historical events will attract thousands of spectators.

Football stadium Company’s Mission and Strategic TARGETS \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

KEy events 2011 y” OJSC an mp o

C JANUARY FEBRUARY d i r over 100 Company’s employees responsible — the review competitions on — the meeting dedicated to

“G 10.02.2011 25.02.2011 for solving the issues of technological labor protection and fire protection condition summing up of production and commercial connections; among the Company’s branches for 2010 operations of the Company for 2010 took ___ were summarized. "Privolzhskie Electric place, the priority tasks for 2011 were mains" was acknowledged as the winner determined; of the competition “The best arrangement ___ of work on labor protection in “Grid Company” 28.02.2011 — within the framework of the 12 OJSC. For achieving excellent results in the implemented actions aimed at providing aspect of fire protection condition according reliable power supply to consumers and 13.01.2011 — experts of the Company’s to the completion results the top position for the purpose of preventing emergency repair-recovery teams participated in the was awarded to ”Naberezhno-Chelninskie situations and ensuring emergency works related to the recovery of the power Electric mains” branch; management at the facilities of electricity supply for consumers of the Districts of ___ supply network complex of the Republic Vyskunskiy, Lukoyanovskiy, Shatkovskiy, 10.02.2011 — the Company’s Board of of Tatarstan due to snowbreak, a special Navashinskiy, Pochinkovskiy, Voskresenskiy Directors approved decision on additional flood commission was founded headed by of the Nizhni Novgorod Region, disrupted 26.01.2011 — the branch of “Naberezhno- issue of common deposited uncertificated the Company’s technical manager Boris because of the “icy rain”. Chelninskie Electric mains” Company shares placed by closed subscription; A.Zabelkin; ______

ENERGY OF LIFE completed the first stage of the second 20, 25.01.2011 — within the framework launch complex of reconstruction of 18.02.2011 — the meeting of the Board of of rendering services process automation Sidorovka SS 110/6 kV through bus bars of Directors took place, where the offers of on technological connection of “Alpha- which capacity transit is performed between the shareholders on entering the issues Tekhnologiya” LLC (city of Naberezhnye and Nizhnekamsk into the agenda of the general meeting of Chelny) with involvement of the department CHPS-1; shareholders and nomination of candidates for technological connections and IT ___ to the Board of Directors and Internal Audit Department of the Company’s Management Commission were addressed; a tutorial worskshop was conducted on ___ use of new functions in the module of technological connections (MTC) of “e-Net” Information System (IS) with participation of 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re MARCH APRIL

01.03.2011 — records on registration of 17.03.2011 — the Federal Service for 11.04.2011 — the Board of Directors of the 27.04.2011 — at the II Plenum of the ANNUAL “Grid Company” OJSC are made into the Financial Markets of carried Company view the report on rectification of republican committee "Elektroprofsoyuz" United Public Registers by incorporation out official registry of additional issue the consequences of unfavorable weather the results of competition “Best Collective of “Dispatch Center” OJSC; of ordinary registered shares of “Grid conditions 5-7.12.2010, which caused damage Agreement” were summarized. Among ___ Company” OJSC, distributed by private to power equipment and large-scale cut-off the electric power organizations of RT the 04.03.2011 — the branch of “Grid Company” offering; of overhead circuits 0.4-220-kV with mount collective agreement made by the branch of OJSC “Nizhnekamskie Electric mains” ___ damage, wire breakage and protective “Kazanskie Electric mains” was acknowledged 13 reconstructed and put into operation earth wires, as well as, report on carrying the best; 220- kV OL “-Nizhnekamsk-1” and out measures, aimed at recovering power ___ 220-kV OL “Zainsk-Nizhnekamsk-2” with supply and offers on increase of reliability of 27.04.2011 — within the framework of AS-500/64 conductors and the total length power supply in the Republic, and report on cooperation between “Megafon” OJSC and of 62 km for energy supply to the complex of administration of revenues and expenditures “Grid Company” OJSC the construction of the “TANEKO” JSC oil refineries and petroleum budgets for 2010, revenues and expenditures fiberoptic communication link (FOCL) with petrochemical plants; budget on electric power transition for 2011, the total length of overhead transmission

___ implementation of the Company’s Investment line supports exceeding 75 km has been 2011 05.03.2011 — within the framework of Program for 2010 and draft of the Company’s performed to connect 11 Company’s implementation of joint IBM and NTSIT Investment Program for 2011; power facilities in Kazan energy district: "INTERTECH" Consulting Company Project 28.03.2011 — the Company was awarded ___ Magistralnaya SS, Kompressornaya SS, on introduction of the United System the Certificate of Compliance of Occupational 19.04.2011 — Presidium of the Central Konstantinovka SS, Kinderi SS, Azino SS, Specified Reference Data into “Grid Health and Safety Management System with Committee of the Public Association "Russian Noksa SS, Salmachi SS, Yuzhnaya SS, Company” OJSC, the first stage ofLL C "NSI International Standard OHSAS-18001:2007 Elektroprofsoyuz" summarized results of Tsentralnaya SS, Iskozh SS and Privolzhskaya - New Technology" was put into commercial and GOST 12.0.230-2007 (ILO-OSH 2001); the competition "The best primary trade SS; operation; ___ union organization of the Public Association ______—"Russian Elektroprofsoyuz" for 2010”. The branch of “Buinskie Electric mains" was Pronounced a winner; ___ Company’s Mission and Strategic TARGETS \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o

C MAY JUNE d i r — the meeting of the Company’s — the Company’s Board — the Company is awarded the — the annual general meeting

“G 16.05.2011 19.05.2011 03.06.2011 27.06.2011 Board of Directors took places where issues of Directors reviewed the draft of the diploma of All-Russian competition "The of the shareholders of the Company took related to the preparation and holding of Investment Program for 2012–2016, and best policy holder, the mandatory pension place, which was devoted to the results of annual general meeting of shareholders made a decision on reorganization of insurance 2010"; activity for 2010, Prime Minister of RT Ildar were discussed; the Committee of the Board of Directors ___ Sh. Khalikov entered tthe Board of Directors ___ responsible for implementation of 14.06.2011 — within the framework of the of the Company and was appointed the 19.05.2011 — the fifth annual workshop “Reactive Power” Program on the basis annual republican competition “ECOLeader”, Chairman of the Board; 14 titled “Experience in Implementation and of development and use of devices and the competition committee of the Ministry ___ Updating of Automated Electric Power technologies of alternating current control of Ecology and Natural Resources of the 28.06.2011 — Prime Minister of RT Ildar Sh. Metering Systems in the branches of “Grid systems to the Committee of the Board Republic of Tatarstan acknowledged the Khalikov handed the Tatarstan Presidential Company” OJSC“: Metrological support” of Directors on Innovations and approved Company as a laureate in the category “For Letter of Gratitude to the Company’ staff, with participation of experts from different the Regulation on the Committee on effective ecological management” among and awarded state decorations to the regions of Russia; Innovations; the enterprises of Republican status Company’s managers and employees. First ___ according to the results of 2010; General Deputy-chief technical officer of the 19.05.2011 — main specialist of electric • To provide reliable and sustainable ___ Company Boris Zabelkin and chief engineer power metering and metrology system operation of the electrical network complex 16.06.2011 — the branch of the Company of district Alekseevskiy of the electric services of the Company Valeriy in the Republic in spring and summer fire “Kazanskie Electric mains” completed networks of the branch of “ Electric

ENERGY OF LIFE Abramov was acknowledged as the danger seasons the Company carried out reconstruction of 110/6-kV substation mains” Aleksandr Papeev were awarded winner of competition “Best Metrologist a set of actions targeted at fire protection Sovetskaya; the medal "For Valiant Labor”. The sonorous of the Republic of Tatarstan” held by “Test- system upgrade at the facilities, including ___ titles of “Honored Power Engineer of RF”, Tatarstan” FSI to stimulate constructive investigation of territories, equipment, “Honored Power Engineer of the Republic activity among the metrologists of the buildings and structures of the Company of Tatarstan” were bestowed on some enterprises of the Republic of Tatarstan and aimed at revelating possible managers and employees of the Company; and to increase qualification level and infringements, making protective belts in ___ professional competence; places of possible spreading of fire from the ___ forestlands, peat-bogs and fields to power facilities, functional testing and fault check of fire automatics devices and others; ___ 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re JULY AUGUST

14.07.2011 — Anvar H. Shakirov, Advisor 25–28.07.2011 — the Company’s team • Within the framework of the preparation ANNUAL to the Director of the branches of participated in the competitions of of the Company's electrical network “Niznekamskie Electric mains” Company, excellence of operation and maintenance equipment for autumn and winter seasonal was bestowed the title “Honored Power personnel of distributive electrical networks peak loads, the works on complex and Engineer of the Republic of Tatarstan”. The of the branches of OJSC "MRSC of Centre capital overhaul are being continued. The sonorous title was awarded to him by the and ". According to the results complex overhaul of some 35-110-kV Deputy Prime Minister of RT — Minister of of the competitions the Company took 4th substations have been completed, inclusive 15 Energy of RT Ilshat Sh. Fardiyev; place, having obtained 943 points of 1160 — Savinovo SS, Chuv.Eltan SS, B.Tigany SS, ___ possible and was awarded a special prize; Karakashly SS, Ishteryak SS, Chekaldy SS and Nagornoye SS.; • Within the framework of campaign "Safe 22–25.08.2011 — All-Russian production ___ Holiday", carried out by the Company and meeting of engineering managers of being one of the elements of the complex branches of "MRSC Holding" OJSC and “Grid republican program on prevention of Company” OJSC took place in the city of

children’s accidents the Company’s Kazan with participation of representatives 2011 employees visited over hundred educational of MRSC Holding and independent network institutions, schools and summer recreation companies from different regions of Russia; camps of the Republic of Tatarstan during ___ summer holidays; 31.08.2011 — the Company’s Board ___ of Directors formed the Committee on 22.07.2011 — 110./10/10-kV Gorodskaya Innovations, as well as approved distribution was officially opened after complete of functional responsibilities and Plan of reconstruction in the city of Nizhnekamsk; Actions of the Board of Directors for the ___ second half of 2011 — first half of 2012. Company’s Mission and Strategic TARGETS \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

SEPTEMBER OCTOBER

03.09.2011— the Company commissions for beneficent initiative and for participation 03.10.2011 — surveillance audit concluding 25.10.2011 — the Consortium of the Isakovo PDUs, built on the right bank of in implementation of the project on stage of the Company’s ecological Russian Institute of Directors and "Rating the Volga River, to supply the Island Town preservation of revival of historical and management system is completed. Auditors Agency" Expert RA " awarded the National y” OJSC with electric power by cable line cultural heritage is expressed; confirmed compliance, development and Corporate Governance Rating NCGR 5 to an ___

mp laid on transport dam; improvement of the current Ecological the Company; o ___ 12.09.2011 — the Company’s Management System to the requirements ___ C d i representatives participated in the 6th of the National Standard of the Russian 25.10.2011 — in the Privolzhsky City District r Specialized Show “Eco technologies and Federation GOST R ISO 14001-2007 of Kazan the construction of a new 110/10 – “G Equipment of XXI Century”, where the and requirements of the system of kV substation of a closed type is completed environmental technologies and actions, obligatory certification on environmental as part of the reconstruction of 110/10/6-kV implemented by the Company, were requirements.; SS Gorki; represented, permitting to minimize ______negative impact to the environment; ___ 16 12.09.2011 — inspection of readiness of the Company’s branches for 2011-2012 autumn- winter operations has begun; 06.09.2011 — the Company is awarded the ___ Letter of appreciation from the Republican National Foundation for Revival of Historical and Cultural Monuments of the Republic of Tatarstan, signed by State Counsellor and Chairman of the Council of Trustees of the 06.10.2011 — by the decision of the Republican National Foundation for Revival commission of experts of the State Labor

ENERGY OF LIFE of Historical and Cultural Monuments of the Inspection of RT the branch of “Elabuzhskie Republic of Tatarstan Mintimer Shaimiev. Electric mains” is awarded “The certificate of In the Letter of appreciation the gratitude trust to the employer”, and the branch was enlisted into Register of employers of the Republic of Tatarstan that strongly observe employees’ labor rights; ___ 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

NOVEMBER DECEMBER

01.11.2011 — according to the plan of main 7–9.12.2011 — The Company participated commission awarded the top position to activities in all the Company’s branches in the XIII International Exhibition “Power the report by the representative of the got the purpose of preparation for the Engineering. Resource Saving -2011” and in XII branch of “Privolzhskie Electric mains" ort

work during autumn and winter periods International Symposium “Energy Resource Grid Company Yuriy Kharitonov, titled p

of 2011-2012 team-headquarters emergency Efficiency and Energy saving”. The Company “Experience of Implementation of “Piramyd” re training exercises have been completed was awarded the diploma for active participation Project Company; within involvement of the branch emergency in implementation of the long-term target ___

operations centers on liquidation of program “Energy Saving and Rise of Energy 23.12.2011 — a solemn opening ceremony ANNUAL breaches in power supply for consumers; Efficiency in the Republic of Tatarstan for 2010- of a new closed substation SS 110/10 kV ___ Gorki in the City District of Privolzhskiy, 11.11.2011 — by the decision of the 17.11.2011 — Company’s Board of Directors Kazan city took place; interdepartmental commission for considered and noted the results of financial ___ readiness test of the Republican power and economic activity together with the 23.12.2011 — the Board of Directors of suppliers for the autumn-winter period of budget versus actual report of the Company the Company approved the Regulations on 17 peak loads the Chairman of the Commission for 9 months of 2011; the variants of capital Information Policy of “Grid Company” OJSC; — Deputy of the Director of the compulsory leveraging were considered for financing ___ checking and management Department Company’s investment development 29.12.2011— Aleksandr Shmakov, Director of electric power industry of Ministry of program for 2012-2016; of the branch of “Privolzhskie Electric mains," Energy of RF Petr Bobylev the Company was ___ Grid Company, was awarded a title “Honored awarded production availability passport for 24.11.2011 — within the framework of a power-man of the Republic of Tatarstan”; autumn-winter period of 2011-2012; set of works on reconstruction of the power 2015 and for long term till 2020”, as well as the letters of award and notes of thanks of the

___ supply system of Island Town Sviyazhsk diploma of 1 degree based on the results of Ministry of Energy of RT were awarded to 2011 16.11.2011 — all the Company’s branches the dismantling of the crossing with 10-kV competition “Energy-efficient Equipment and some chiefs of management services and were awarded production availability overhead transmission line supports from Technologies” in nomination “The Best Debut the Company’s branches. To reveal the passports for autumn-winter period of 110-kV Savino SS has been completed; in Power Engineering” of “Digital Substation” opportunities of energy-saving and top 2011-2012; ___ Project; increase energy efficiency in 5 branches of ______the Company (Almetyevskie, Bugulminskie, 13.12.2011 — the VI Youth Workshop Buinskie, Naberezhno-Chelninskie and Conference of the Company took place, Nizhnekamskie electric mains) energetic where the urgent tasks were specified, audit was carried out. According to the related to usage of new generation results of carried inspections energy equipment and technologies, automation performance certificates were obtained, and efficiency promotion of supply-line including recommendations concerning production, electric energy quality and the steps on energy saving and energy human resource management system. efficiency rise; After listening all the speeches, the ___

GENERAL INFORMATION ort p ABOUT COMPANY re 1 ANNUAL

The Kazan Kremlin is a heart of the capital of Tatarstan, a unique ENERGY OF fortress, within the walls of which the Russian and Tatar monuments 19 may be found side by side, as well as orthodox churches and an TRADITIONS Islamic mosque. The Kazan Kremlin has turned from the object of conquest into the symbol of solidarity between peoples! Architectural ensemble of the Kremlin amazes by the combination of Volga Bulgarian, Golden Horde, medieval Kazan Tatar, Italian, Russian and up-to-date architectural cultures.

It is not only an astonishing cultural proximity that determines the uniqueness of the fortress. The Kazan Kremlin is the world's only operating center of Tatar State culture and power. Having become once a spiritual and administrative core of the Tatar capital, the Kremlin ENERGY OF LIFE forever preserved its city-forming function; and for a few centuries already it effects the surrounding municipal site development. Located on the cape of a high terrace on a left bank of the Kazanka River, our Kremlin is nobly looking in the future, preserving the memory and past traditions of the great peoples.

Architectural ensemble of the Kremlin Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information ABOUT Company \ 2. Equity Capital

1.1. COMPANY’S ORIGIN AND STRUCTURE y” OJSC an mp o «Grid Company» Open Joint Stock Company was founded in Federal Law 36-FZ “On peculiarities of electric power C d

i December 11, 2001 within the framework of carried reform functioning during the transition period and on amendments r of electrical energy complex of the Russian Federation to some legislative acts of the Russian Federation and “G in order to implement the Government Resolution of the the annulment of some legislative acts of the Russian Russian Federation from July 11, 2001 No.526 “Reforming Federation in connection with the adoption of the Federal electric power industry of the Russian Federation” and Law "On Electric Power Industry" from July 1, 2009, the Decree of the President of the Republic of Tatarstan from Company was reorganized by accession of “Grid Company” August 8, 2001 No.UP-673 “On further measures to reform Holding OJSC, founded by reorganizing in a form of the electricity industry of the Republic of Tatarstan”. The separation from “Tatenergo” OJSC. 20 founders of «Grid Company» OJSC were PEO SUE "Tatenergo" and “” OJSC named after V.D.Shashin. As a result of reorganization “Tatenergo” OJSC withdrew as a shareholder from the Company, and the Company’s To form in the Republic of Tatarstan the United Distribution fraction of voting shares, owned by the Republic of Tatarstan Grid Company in compliance with the Resolution of the increased to 86%. Central dispatch center of Cabinet of Ministers of the Republic of Tatarstan on regional electricity board September 22, 2003 N 504 "On creation of the state unitary To optimize operations procedures, maintenance, overhaul Tatenergo, 1971 enterprise" Tatelektroset”, which owned power distribution repair and capital construction of transmission facilities, networks of the largest cities of the Republic of Tatarstan. owned by “Dispatcher Center” OJSC, which is an branch of In the result of reorganization practically all the power the Company, the Company was reorganized by accession

ENERGY OF LIFE distribution networks of the Republic were consolidated into of “Dispatcher Center” OJSC in March 01, 2011. “Grid Company” OJSC. Since the moment of foundation till . July 1, 2009 the Company was an branch of “Tatenergo” OJSC, and, accordingly, a part of vertically-integrated “Tatenergo” Holding OJSC, which carries out production, delivery, distribution and sale of electrical and thermal power in the territory of the Republic of Tatarstan, belonging to one group of entities together with the enterprises, carrying out the above-mentioned kinds of activity.

To bring the Company’s activity into compliance with the requirements of the Federal Law from March 26, 2003 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

At present the structure of “Grid Company” OJSC includes 9 branches, each of them carrying out the Company’s functions on electric power transmission, technological connection, maintenance and operation of transmission facilities territorially. ELABUZHSKIE ELECTRIC MAINS ort

PRIVOLZHSKIE ELECTRIC MAINS 48 Chapayeva str., 423603, Elabuga, p Tel.: +7(85557) 3-92-15 The structure of each of nine branches includes economically 23 Magistralnaya str., 420108, re autonomous structural subdivisions: distribution zone Kazan, Tel.: +7(843) 241-00-59 • Agryzskiy DZ • Elabuzhskiy DZ (DZ) and electric mains city zone (EMCZ). The Company’s • Arskiy DZ • Atninskiy DZ • Elabuzhskiy EMCZ • Kukmorskiy DZ structure in 2001 did no change. • Baltasinskiy DZ ANNUAL • Vysokogorskiy DZ • Mamadyshskiy DZ Head Office of • Zelenodolskiy DZ • Mendeleyevskiy DZ "Grid Company" OJSC • Laishevskiy DZ • Sabinskiy DZ 420094, Kazan, • Prigorodniy DZ • Tyulyachinskiy DZ Bondarenko Street, 3 • Pestrechinskiy DZ • Rybno-Slobodskiy DZ • Northern DZ • Central DZ • Avtozavodskiy DZ • Western DZ • Pribrezhniy DZ 21 • Eastern DZ • Aktanyshskiy DZ • Borovetskiy DZ • Southern DZ • Zainskiy DZ • Komsomolskiy DZ • Menzelinskiy DZ 109 Tukaya str., 420021, Kazan, 54/24 Pr. Moskovskiy, 423810, • Nizhnekamskiy DZ Phone: +7(843) 572-10-59 Naberezhnye Chelny, • Nizhnekamskiy EMCZ Phone: +7(8552) 39-58-53 KAZANSKIE ELECTRIC MAINS • Tukayevskiy DZ NABEREZHNOCHELNINSKIE ELECTRIC MAINS • Ansubayevskiy DZ 14 Akhtubinskaya str, 423570 Nizhnekamsk, • Alekseyevskiy DZ Phone: +7(8555) 42-60-50 • Alkeyevskiy DZ

• Novosheshminskiy DZ NIZHNEKAMSKIE ELECTRIC MAINS 2011 • Nurlatskiy DZ • Spasskiy DZ • Chistopolskiy DZ 36 K.Marksa str, 422980 Chistopol, BUGULMINSKIE ELECTRIC MAINS • Apastovskiy DZ Phone: +7(84342) 5-27-00 29a Turgeneva str., 423233 , • Buinskiy DZ Phone: +7(85594) 4 – 97 – 24 • Verkhneuslonskiy DZ CHISTOPOLSKIE ELECTRIC MAINS • Drozhzhanovskiy DZ • Bavlinskiy DZ • Kaybitskiy DZ • Almetyevskiy DZ • Bugulminskiy DZ • Kamsko-Ustinskiy DZ • Almetyevskiy EMCZ • Bugulminskiy EMCZ • Tetyushskiy DZ • Aznakayevskiy DZ and RAH • Leninogorskiy DZ • Sviyazhskiy DZ • Muslyumovskiy DZ • Leninogorskiy EMCZ • Sarmanovskiy DZ • Cheremshanskiy DZ 190 Kosmovskogo, 422430, Buinsk, • Yutazainskiy DZ Phone: +7(84374) 3-25-47 13 Shevchenko str., 423400 , BUINSKIE ELECTRIC MAINS Phone: +7 (8553) 45-66-35 ALMETYEVSKIE ELECTRIC MAINS Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information ABOUT Company \ 2. Equity Capital

1. 2. GEOGRAPHIC REACH AND COMPANY’S PLACE IN THE SECTOR y” OJSC an mp o Company is a territorial network organization, rendering By Order from September 8, 2005 No.423-e, issued by the C d

i services on power delivery within the Republic of Tatarstan. Federal Tariff Service "On the inclusion of the OJSC «Grid r The service area is 67 836.2 sq.km. Company» in the register of natural monopolies in respect of Kazan Elabuga “G which state regulation and control shall be carried out" the As to the value of operating transmission level the Company Company was included into the register of natural monopolies Naberezhnye Chelny is in the top decile of the largest Russian electric grid in the fuel and energy sector. Nizhnekamsk companies. The Company established itself as a leading choice compared to other territorial network companies, Today the Company is the basic supplier of the services on included into the composition of OJSC "MRSC Holding" as power delivery in the territory of the Republic of Tatarstan. 22 to the index of total length of operational aerial circuits and In 2011 the Company’s share of proceeds from rendering Chistopol cable lines, as well as, regarding the number of substations, services on power delivery made in monetary terms about transformer substations and distributing points. 94% of the total scope of services, rendered by the network organizations; and in the total volume of services rendered Buinsk Moreover, the Company is the single in Russia territorial on technological connection of applicant is about 100%. Moscow Almetyevsk network organization, which owns transmission facilities Company’s range amount of standard conventional units of all the voltage levels: from 0.4 kV to 500 kV. for 01.01.2012 made 341 471.52 as to the state for 01.01.2001 — 344 922.91. Republic of Tatarstan Bugulma ENERGY OF LIFE

Buinskie electric mains Kazan city Privolzhskie electric mains Kazanskie electric mains Chistopolskie electric mains Naberezhnye Chelny city Elabuzhskie electric mains Naberezhno-Chelninskie electric mains Nizhnekamskie electric mains 341 471.52 Almetyevskie electric mains range amount of standard conventional Bugulminskie electric mains units as at 01.01.2012 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re

Kazan Elabuga ANNUAL

Naberezhnye Chelny Nizhnekamsk

23 Chistopol

Buinsk Moscow Almetyevsk

Republic of 2011 Tatarstan Bugulma

Buinskie electric mains Kazan city Privolzhskie electric mains Kazanskie electric mains Chistopolskie electric mains Naberezhnye Chelny city Elabuzhskie electric mains Naberezhno-Chelninskie electric mains Nizhnekamskie electric mains Almetyevskie electric mains Bugulminskie electric mains Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information ABOUT Company \ 2. Equity Capital

1.3. ANALYSIS Of the Company’S EXTERNAL AND INTERNAL ENVIRONMENT y” OJSC an

mp The Company refers to the territorial distribution companies To determine the degree of impact of the above-listed factors o and its place in the electric power system of the Republic of diverse nature to the Company’s activity PESTanalysis C d

i of Tatarstan is determined as a structure, which delivers was carried out in 2011, which divides all the impacts into r electric energy and power to the consumers of the republic, four main aspects: “G acquired by marketing organization at the wholesale market. 1. Socio- demographic impacts 2. Technological impacts The Company plays a special important part in the socio- 3. Economic impacts economic system of the region. The Company’s direct 4. Political impacts. influence to the social standard of living is determined by the electricity tariffs investments, tax deductions to LIST OF SUBFACTORS, CONSIDERED IN PROCESS MACROENVIRONMENT PEST-ANALYSIS 24 the regional budgets, employees’ rate of remuneration. Indirect influence is conditioned by dependence of the Politics Economics level of competitiveness of the enterprises of the region on reliability and cost of electric power supply. However, a Governmental stability General description of economic reverse is right, too concerning the impact of the general situation situation in the republic to the Company’s economy. Changes in legislation National currency rate and roll rate

The reasons of the Company’s dynamic development are Sector impact on the governmental level, including Rate of inflation not only internal factors, like, renovation of the outdated share of ownership Level of unemployment base of property assets, but also external economic and

ENERGY OF LIFE political factors — the program of support of small and Governmental regulation of competition in the sector Energy prices medium-sized businesses, establishment of large business centers and industrial associations, decision on holding Society Technology the 2013 Summer Universiade in the city of Kazan, which required the construction of new main substations. Demographic change National technological policy

Change of income level Significant trends in the field of Research and Advanced Development

Work ethic and attitude to the rest New products (new technology updating and conversion rate) Social mobility of the population

Activeness of the population Development of IT-technologies 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Carried analysis of significance of the stated factors for 3. Moreover, in modern times it is impossible to imagine Company permitted to make the following conclusions: an efficiently-run company without using state-of-the-art 1. Above all significant influence to the Company’s activity technologies, that is why it is necessary to consider the is rendered by political factors, namely: impact of technological factors. — Governmental regulation of competition in the sector; ort

— The predominant share of the state in the Company’s 4. Socio-demographic factors, with the exception of change p

capital stock. of revenue level of the population, do not render significant re impact to the Company’s activity. These forces often render multidirectional effect. The

government, on one side, does not permit the increase of ANNUAL power transmission service tariffs; on the other part, being a principal shareholder, it is interested in the increase of the Politics Company’s cost and obtainment of its share in the profit. P 2. Economic factors are closely interrelated with the above- listed factors, namely: energy prices (primarily, concerning 25 the prices to power transmission services), as well as the present phase of economic cycle of the country and republic — growing phase, phase of decline or stabilization.

T E Economics

Technology 2011

PEST-analysis is a tool, intended for revelation of political, economic, social and technological aspects of the external environment, which have S an influence on the Company’s business. Society Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

According to the results of 2011 SWOT-analysis of the SWOT-ANALYSIS OF STRENGTHS AND WEAKNESSES OF «Grid Company» OJSC Company’s strengths and weaknesses was carried out, as well as, possibilities and risks: Strengths Weaknesses • «Grid Company» OJSC is a natural monopolist. • Relatively high wear of capital assets. y” OJSC • The Government's take in the authorized share capital • Infrastructure role of the Company forces it to implement an of “Grid Company” OJSC is significant. sometimes economically inefficient projects, but mp o • The Company refers to the infrastructure of the Republic. significant for a sector and the Republic. C d i • As to the value of transmitted power, “Grid Company” • The rate of dependency of the Company’s liquidity from r solvency of service major customer of transmitted “G OJSC is included into a top ten of analogous Russian companies. electric power — “Tatenergosbyt” OJSC. • stockholder equity is of sufficient size (sufficient financial • Connection cost for all the consumers of less than 15 capability). kW capacity is 550 rubles. • The Company is engaged in implementation of major • small and medium-sized enterprises with the connected republican and federal purpose-oriented programs, power within the range of 15 – 100 kW may pay only 26 as well as, in infrastructure development for the 2013 advance payment equal to 5% and later discharge Summer Universiade. according to the law the indebtedness before “Grid Company” OJSC within 3 years after actual connection • Generally, business diversification in two directions according to the law. permits to decrease hazards for the Company: power delivery and activity on technological connection. Assemblage of • The Company’s informational transparency. open-type-bus-and-switch arrangement. 1959 ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

SWOT-ANALYSIS OF STRENGTHS AND WEAKNESSES OF «Grid Company» OJSC

Possibilities Threats • Entering into the list of the enterprises of regional • Conjunctural restraint of tariffs with the help of rise significance (or a list of core companies) gives additional regulators to fight against inflation. ort opportunities for attracting of relatively “cheap” and “long- • Payment due date delay under power transmission p re term” financial resources. agreement by the part of the basic debtor may cause • The Company implements ambitious investment program, breach of time limit for performance of the approved thereby improving efficiency of business. investment program, the significant part of works within ANNUAL which is aimed at constructing and re-constructing the facilities of Universiade – 2013 and also may expose to a risk timeliness of implementation of the republican and federal programs.

27 The Company’s strengths are its monopolistic position Moreover, there are risks of delayed payment for services on at the market, under-elastic demand of its services, as power transmission from of sales companies. To minimize well as, the fact that “Grid Company” OJSC is a primary negative consequences of this factor financial resources industry enterprise, without normal functioning of which management in the Company is carried out through the the operation of the economy in broad terms may not be use of treasury system. Funding is carried out within the Verification of outdoor insulators imagined. framework of approved budgets using payment priority by installers. EML

schemes in order to prevent the debt owed to fiscal system 1971 2011 However, the position of the company, regulated by the and the Company’s employees, as well as to contractors government brings in hazards, like, a risk of insufficient and suppliers. receipt of returns from regulated kinds of activity as a result of the carried policy aimed to control tariffs for services of natural monopolies. The basic actions to be taken by the Company to decrease sector risks are as follows: performance of methodic work together with the State Committee of the Republic of Tatarstan on tariffs aimed at establishing the cost-based tariffs, including, as far as possible, Company’s costs, as well as, rise of the Company’s operating efficiency. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

1.4 . SYSTEM OF RISK MANAGEMENT y” OJSC an mp o In the Company risk management is determined as a process, military conflicts and extraordinary situations. The social climatic peculiarities of the region. The Company bears C d

i carried out by the Company’s management at all the levels situation in the region of the Company’s activity may be the risks, related to natural disaster hazard: first of all r of governance. It includes risks identification, evaluation and characterized as peaceful without any expressed ethnic owing to equipment damaged by a storm, strong snowfall, “G measurement, risk response, performance management, conflicts and religious extremism, permitting to carry out glazed frost, icy rain. To minimize these risks the Company activity planning for risk management and monitoring. economic activity with minimum socio-political risks. designs power-generating facilities taking into account peculiarities of the regional climate and geography, The basic target of risk management process is provision The Republic of Tatarstan is assessed by the experts as one preliminary measures are being carried out, emergency of achievement of strategic goals of the Company, of the most economicaly developed and politically stable stocks of material and technical resources are prepared, provision of soundness of assets, increase of investment regions of the Russian Federation. The largest agencies Emergency Response and Restoration Team operate. 28 attractiveness, maintaining of managerial efficiency and Forbes and Ernst&Young assess the Republic of Tatarstan provision of uninterruptible power supply for consumers, as the most favorable region of the Russian Federation and To indemnify damage from extraordinary circumstances, joined to the Company’s electrical network. The Company’s the best region in terms of possibilities open for conducting including those related to natural calamities, the Company risk management system is oriented, first of all, to timely business. is busy with implementation of the program for insurance revelation and prevention of possible risks to minimize their protection of facilities of electricity supply network complex negative impact to the results of financial and economic Nevertheless, in case of destabiliation of the political and from natural disasters. activity of the Company. economic situation in the country and region and significant and noticeable deceleration of economic growth, drop of production level is possible, and, as a result, drop of energy volumes.

ENERGY OF LIFE COUNTRY AND REGIONAL RISKS Taking into consideration such probability, the Company A risk factor, capable to impact the Company’s functioning, carried out development of diverse scenarios for middle is possibility of aggravation of the political and economic and long-term perspectives, which would permit to react situation in the country and in the region, on the territory adequately to possible aggravation of the situation. The of which the Company carries out its industrial activity. Company shall take some steps towards crisis management Recently the steadiness of the Russian economy is observed, targeted at maximum decrease of negative impact of the and in general the probability of a risk of the shift by the at situation for the Company, including reduction of production present country leadership is low. costs and other expenses.

The region, in which the Company carried out its industrial Apart from the economic and political situation the activity, is politically stable, and there is no practical risk of Company’s activity is influen ced by the geographic and Assemblage of air- blast breakers. 1956 . 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

SECTOR RISKS planned marketable proceeds of regulated organization The basic hazards are represented by ageing of equipment has changed. Since 2012 consumers and guaranteeing and wear of fixed assets, operation of equipment with limit ort

Risks, related to possible aggravation of the situation in the suppliers independently choose a tariff variant for electric deviations from regulatory and engineering requirements, p

sector, may render significant influence to the Company’s power transmission for the period of regulation by directing mistakes of operations personnel, as well as, effect of natural re activity, being one of the major ones. Among the sector risks a written notification to the network organization within one fisasters, unauthorized persons or organizations. one may single out the risks, related to tariff regulation for month since the date of official publication of decisions of the

services, rendered by the Company, as well as, risks of executive authorities of territorial subjects of the Russian In order to manage this group of risks the Company carries ANNUAL operational and technological character. Federation in the sphere of the government regulation of tariffs out a set of measures to provide a due level of equipment on making the appropriate prices (tariffs). Meanwhile a selected reliability: upgrading of electrotechnical capacities on the basis Risks in sphere of tariffs setting. As a result of sector tariff variant is used for calculation of the prices for power of the introduced innovation power equipment, reconstruction reforming, lasting for a few last years electric power industry transmission services since the date of tariffs introduction. and new construction are being implemented in compliance suffers significant changes of some uncertainties, the major with the approved overhaul schedules, structure and level part of which occur in the sphere of tariffs setting. The risks in the sphere of tariff setting inlcude also threshold of orders are being optimized all the time and modernized 29 level increase restriction for electric power transmission, according to the modern requirements of stability control During 2011 the following legislative acts were adopted, which may entail impossibility of complete indemnification schemes, traning and advanced training of personnel is which impact regulation of tariffs for electric power of the Company’s economically justified expenses and carried out, the measures to prevent infringement of rules transmission: restriction of internal funds investment amounts contributed in the electricity supply network facility fenced-off areas are into development of power supply network. To minimize carried out. In addition to this, industrial risk management — Government Resolution on December 29, 2011 N 1179 this risk the Company carries out continuous planned work is carried out in compliance with the law of the Russian "On the definition and application of guaranteeing together with the State Tariff Committee of the Republic of Federation in the field of industrial safety and functioning

suppliers of unregulated prices for electricity (power)"; Tatarstan, Ministry of Energy of the Republic of Tatarstan of manufacturing inspection system on its basis aimed at 2011 aimed at setting economically justified tariffs, indemnifying meeting the requirements of industrial security at the electric — RF Government Resolution 29.12.2011 N 1178 "On the all the Company expenses for network maintenance and power industry facility. pricing of regulated prices (tariffs) in power"; operaiton. To decrease expenses the Company developed and is implementing “Program of cost management”. — Government Resolution on November 4, 2011 N 877 "On amendments to some acts of the Government of the Operational (production) risks. Russian Federation in order to improve the relationship The Company’s activity is related to the risks of operational between suppliers and consumers of electricity in the and technological character, manifested in disturbance of retail market"; network equipment, emergency situations and shortfalls, and, as a consequence, it threatens performance of duties in full The above-stated legislative acts changed both the pricing extent under agreements for rendering services on power approaches in the retail market of electric power and the delivery, partial or complete incomplete delivery of electric rules, principles and terms of tariffs forming and approval power with the appropriate unfavorable social consequences, for power energy transmission. The principle of obtaining as well as, a risk of personnel industrial injuries. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

FINANCIAL RISKS To optimize expenses for commodities and materials, they Interest Risk. Risk of interest rate Fluctuation consists are procured in compliance with the annual integrated in inadvertent change of percentage rate at the financial Inflation Risk.Negative impact of inflation to financial and purchasing program with test purchases from suppliers, market, resulting to change in interest payment cost when economic activity of the Company may be expressed in and contracting agencies, rendering separate types using borrowed capital in the structure of organization risk of loss , related to decrease of bills receivable actual of services (works), being determined on the basis of financing sources. y” OJSC value in case of essential adjournment or delay in payment, competitive bidding; cost optimization is carried out by an

mp risk of cost supplement at the expense of component development and implementation of the Cost Management To control this risk in the Company a method of investment o parts, equipment price rises and price rise of other material Program. portfolio assessment is used for capital leveraging and clear C d

i and equipment, used by the Company in process of its requirements to financial credit organizations are used. r activity. Financial state of the Company, its liquidity

“G Currency Risk. position, sources of funding, results of activity do not depend Inflation processes are taken into consideration by the significantly on the changes in currency exchange rate, as Company, being forecasted when planning the activity, in the Company carried out its activity in the territory of the LEGAL RISKS doing so available statistic data on the rate of inflation are Russian Federation and does not make contribution into being taken into consideration together with the attitude foreign companies, with the cost of net wealth being at Legal risks are typical and specific to the Company, like to of the Government of RF, as well as, scenary conditions risk of changes in currency exchange rate and it does not any other business entity, carrying out its activity on the 30 of development of power engineering for the period till have any receipts or expenses in foreign currency. Thus, territory of the Russian Federation. 2030, developed every year by “APBE” CJSC by order of the currency risks, related to change of basic world currency Ministry of Energy of the Russian Federation. exchange rate upwards, are insignificant. Legal risks are related to equivocal representation of legislative requirements concerning taxes, duties and fees, probability of change of orders, rates and tax charge terms and taxpaying, change of judicial practice on issues, Oil circuit breaker cells Assemblage of outdoor VMG-133 with manual drive. 1956 switch-gear. 1958. related to the activity of the Company, as well as change of a sectorial legislation.

Change of Tax Legislation. The main factors of tax risk

ENERGY OF LIFE manifestations are represented by probability of imposition of new types of taxes and duties, possibility of level of current taxes and duties rates increase, expansion of taxation base, change of terms of order of tax payment, submission of tax accounts.

Owing to the fact that all tax payments are taken into consideration when making tariff calculations for electric power transmission, any change of tax legislation, including paragraphs concerning imposition of new types of taxes and duties, change of their rates shall not be a significant tax risk for the Company for a long-term perspective. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

To minimize tax risks in the Company control of accuracy execute the agreements of technological connection the • Ecological and regulatory risks, caused by adoption of of taxation base calculations, application of tax rates are Company effects investments, targeted at construction, ecological laws and standard and permanent increasing carried out, as well as control of timeliness and fullness expansion, reconstruction, technical reequipping of legislative pressure; of all level payments to be paid to the budgets, stipulated the facilities, but in case of refusal from the part of an by tax legislation. applicant, constructed reconstructed facilities may become • Economic and ecological risks, preconditioned by ort

unreclaimed. financial and economic activity. p

In case of making amendments in the current order and re terms of taxation, the Company shall carry out its financial To minimize the impact of the above-stated risks in These risks management in 2011 was carried out within and economic activity in compliance with such amendments. the Company the automated contract registration and the “Program on Functioning and Improvement of the

execution monitoring system is being carried out, which environmental management system for 2010-2011”. ANNUAL Change of judicial practice. Organization of the Company’s traces the impact of each newly concluded agreement to To decrease ecological risks the Company approved activity and its implementation are at risks, related to the financial output of activity on technological connection the strategy of “Grid Company ” OJSC in the filed of the Russian legal system. These risks include possible and concurrently a planned work on the issues of expense the environment protection with the major targets of contradictions between the law of RF and regulatory indemnification together with theS tate Committee on tariffs implementation of systemic approach in management documents issued by executive authorities of territorial of the Republic of Tatarstan is carried out. by ecological aspect of the Company’s activity and subjects of the Russian Federation and local authorities, prevention (minimization) of negative impact to the ambient 31 absence of judicial practice on issues related to application environment. of some acts of legislation. ECOLOGICAL RISKS

Probability of judicial practice change on issued, relatged The Company’s production operation is related to to the Company’s activity is nowadays insignifiacant. performance of kinds of activities and processes, which are capable of rendering direct impact to the ambient In case of making any amendments in judicial practice on environment. issues, related to the Company’s activity, the financial and 2011 economic activity shall be planned, taking into account Hence, in the Company ecological risks are distinguished, such changes. which in turn are divided into the following ones:

• Risks of catastrophic impacts, related to change of RISKS, RELATED TO CONNECTION OF NEW the environments in the result of industrial disasters, CONSUMERS accidents and incidents;

One of the basic Company’s areas of business is • Natural and ecological risks, caused by changes in the technological connection of consumers to power grid ambient natural environment; facilities of the Company, which preconditions the risk of financial losses because of refusals on the part of the • social and ecological risks, conditioned by government applicant related to performance of duties on carrying out and social protective reaction against aggravation of technological connections. Applicants’ refusals shall impact ecological situation; the financial and investment activity of the Company, as to

EQUITY ort p

CAPITAL re

2 ANNUAL

“Q Park Kazan” is located in the region of the Kazan International Airport ENERGY about 25 km away from the center of the capital of the Republic of 33 Tatarstan, which makes “Q Park” an optimal platform for retail delivery OPTIMIZATION to the city shops. In addition, close location to the ring road provides free access to the main routes leading to Moscow, Yekaterinburg, , Perm, Chelyabinsk, and .

Favorable geographical position is not the only advantage of the project “Q Park Kazan”. Due to optimal planning (base depot is designed in order to provide maximal flexibility of possible design patterns and meet the requirements of leaseholders), specifications, high standards of service “Q park Kazan” becomes as liable as analogous international constructions. ENERGY OF LIFE

The complex is hedged, illuminated and safeguarded 24 hours per day. Only modern engineering systems and communications are applied in the “Q Park Kazan”, which allows the decrease of the self cost, risks and organizational expenditures that are connected with solution of depot and transportation tasks.

Q Park Kazan Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

2.1. The structure of the equity capital and shares of the Company y” OJSC an mp o According to the Paragraph 6.1 of the Articles of “Grid the extraordinary meeting of shareholders on December well as 323 301 056.2 rubles share premium reserve was C d

i Company” OJSC the size of its Equity Capital as of December 28, 2010 (Minutes N23 dated from December 30, 2010). The gotten. Value of the registered capital of the Company will r 12, 2011 makes 6 189 318 117 rubles and 50 kopecks and overall quantity of allotted registered ordinary shares as make 6 540 732 309 rubles after state registration of the “G shared into 12 378 636 235 registered ordinary shares, of December 31, 2011 made 12 731 548 666 items. report about the results of additionally issued shares and issued in book-entry form, which face value is 50 kopecks. introduction of corresponding modifications in the Articles Maturity of additionally issued registered ordinary shares of the Company. During 2011 there was carried out stock promotion of of the Company expired on March 17, 2012. In the result of additionally issued registered ordinary shares of the realization of additional issuance 702 828 383 registered Structure of the Articles of “Grid Company” OJSC is Company in according to the decision about increasing ordinary uncertified shares with overall value (according characterized by the absence of cross-shareholdings. 34 of the size of the Equity Capital of the Company, made on to the face value) 351 414 191.5 rubles were placed, as

Distribution of registered ordinary shares Distribution of registered ordinary shares of of the Company as of December 31, 2011 the Company regarding the results of additional emission

789 654 213 10 722 583 224 1 118 784 102 10 722 583 224 shares shares shares shares 6,20% 8,55% 84,22% 81,97% ENERGY OF LIFE 1 219 311 229 9,58% 1 240 097 292 9,48% shares shares

TOTAL TOTAL 12 731 548 666 13 081 464 618 shares shares

Republic of Tatarstan State Residential Properties Other legal entities, Republic of Tatarstan State Residential Properties Other legal entities, represented by the Ministry of under the President of the holdings less than represented by the Ministry of under the President of the holdings less than Land and Property Regulations Republic of Tatarstan 5% shares Land and Property Regulations Republic of Tatarstan 5% shares 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re INFORMATION ABOUT SHARES OF THE COMPANY 2006: The additional issue of ordinary registered shares is carried out in the process of restructuring of the Date of state registration State registration Number of shares, Principal value,

Company via incorporation of OJSC “Tatelectroset” which ANNUAL number item RUB was performed within the framework of formation of a common territorial distributional network organization First issue of shares* in the Republic of Tatarstan.

February 26, 2002 1-01-65007-D 4 777 778 000 1 2008: Location of additional issuance of shares was performed by State Housing Fund under the President of Second issue 35 the Republic of Tatarstan and State Unitary Enterprise of August 3, 2004 1-02-65007-D 12 378 636 235** 0.5 the Republic of Tatarstan “Electricheskie Seti” via private offering. In regards to capital issue state registration of following additional issues was carried out: May 25th , 2006 1-02-65007-D-001D*** 1 276 745 600 0.5 2009: There was carried out an equity offering of the third additional issuance of shares of the Company within January 29, 2008 1-02-65007-D-002D*** 1 055 180 239 0.5 the framework of restructuring of energetic complex of

the Republic of Tatarstan, as well as for the purpose of 2011 May 28, 2009 1-02-65007-D-003D*** 9 641 365 000 0.5 adjustment of the Company to the requirements of active March 17, 2011 1-02-65007-D-004D 702 828 383 0.5 legislation on electrical energy via incorporation of OJSC “Holding “Grid Company” created in the form of separation * The issuance of ordinary registered shares was recalled in conjunction with conversion. from OJSC “Tatenergo”. ** The overall quantity of shares is stated in compliance with the amount of additionally issued shares individual numbers (codes) 2011: There was carried out an additional issuance of of which were recalled. shares of the Company aiming to finance construction *** The individual number (code) of the additional issuance was recalled in compliance with the expiration of 3 months from the date works on the engineering of electrical supply networks of state registration of the report about results of the additional issuance. for the residential buildings. Within the framework of abovementioned issuance 702 828 383 registered ordinary uncertified shares were taken up by the State Housing Fund under the President of the Republic of Tatarstan and State Unitary Enterprise of the Republic of Tatarstan “Electricheskie Seti”. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Information about authority registering the rights on the company’s shares

According to the decision of the Company’s Board of Directors as of 15.08.2008, Minuets No. 4 dated from y” OJSC 18.08.2005, “Evroaziatskiy Registrator” LLC (Kazan Branch) an

mp maintains a share register of the Company. o C d i r “G

Full firm name Limited Liability Company “Evroaziatskiy Registrator” (Kazan Branch of Limited Liability Company “Evroaziatskiy Registrator”)

Abbreviated name “Evroaziatskiy Registrator” LLC (Kazan Branch of “Evroaziatskiy Registrator” LLC)

36 Legal address 2 Stolbova str., 420021 Kazan, Republic of Tatarstan (26 Vishnevskogo str., 420043 Kazan)

License No. 10-000-1-00332 Issued by: Federal Financial Markets Service Date of issue: March 10, 2005 Expiration date: without limitation of the period of validity

Contacts Correspondence address: P.O.B. 40, 420043 Kazan Telephone: +7 843 236-27-52, +7 843 236-63-96 Fax: +7 843 236-27-52 Email: [email protected] ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

2.2. The dividend policy of the Company ort p re The dividend policy of the Company is based on the • The balance between interests of the Company and its • Amount of dividend, which recommended by the Board maintenance of the optimal combination of the interests shareholders, as well as the necessity of provision of of Directors of the Company, as a rule, should not exceed

of the Company and its shareholders in the decision making safe and qualified electric supply for the consumers, the level approved in the formation of tariffs for the ANNUAL process about payment (non-payment) and determination connected to the electric network of the Company are transmission of electrical energy for the corresponding of dimensions of dividends, as well as the observance of of higher-priority for Board of Directors while making year. rights of shareholders, as required by the Law of the Russian decisions about recommendations for payment (non- Federation and Company’s Article, and is directed towards payment) of dividends and their dimensions. Whereas high need of the Company for funds for the the increasing of investment attractiveness of the Company implementation of investment projects, aimed at renewing and its capitalization. • The recommendations of the Directors’ Board of the fixed assets and ensuring the reliability of power supply 37 Company about the payment of dividends can be done network of the Republic, as well as creating conditions Regulation on dividend policy of “Grid Company” OJSC to the General Meeting of the Company’s shareholders for technological connection of consumers, the Board of approved by the Board of Directors of the Company in in the case of sufficiency of resources for the realization Directors of the Company, as a rule, made decisions on March of 2010 (current version — on May 16th , 2011, of investment program and for the accomplishment of the recommendations for the Annual General Meeting of Minutes No. 21 as of May 17, 2011) determines main capital oriented events for the technological connection Shareholders not to pay dividends for the financial year. principles and approaches in the Board of Directors decision of consumers to the electric supply network household making process about issues of recommendations to the of the Company. general meeting of shareholders about dividend payment 2011 and provides transparency of the dividend dimensioning DIVIDEND HISTORY and payment processes and informing the Company’s Period Event shareholders and other interested in the Company’s dividend policy individuals. 2002-2005 In according to the recommendations of Directors’ Board of the Company dividends were not paid at year-end. The profit was directed to the development Company’s dividend policy is based on the following of production. principles dictated by peculiarities of the Company’s 2006 At year-end of 2006 for the first time ever from the start of the functioning activity consisted, first of all, in state regulation of charges of the Company the annual general meeting of shareholders decided to pay for electro transmission and technological connection, as dividends for ordinary shares in the amount of 10% from the clear profit of the well as in the necessity for development, modernization, Company in 2006. Overall sum directed to the payment of dividends for ordinary reconstruction and supply of the newly constructed subjects shares of the Company at year-end of 2006 made 6 789.6 thousand rubles. of power electric supply network economy: 2007-2010 In compliance with the recommendations of the Directors’ Board of the Company there were made decisions at the annual general meetings of shareholders not to pay (not to pass) dividends at year-end of 2006.

CORPORATE ort p

GOVERNANCE re

3 ANNUAL

Do you know that the perception of the metropolitan railway as a mainly COMFORT subway type of transportation is an originally Russian stereotype? However, Kazan subway station “Ametyevo” absolutely challenges this stereotype! 39 ENERGY It represents from itself a glazed double-deck metro-bridge thrown-over Ametyevskaya main route. The subway station itself is situated on the lower deck, and the glazed pedestrian gallery connecting Daurskaya Street with the subway station “Ametyevo” is located on the upper deck. Metro-bridge is a construction distinguished by special durability, taking into account that trains cause a very strong vibration.

There are special demands to the electricity supply of subway stations: the electricity is not only forcing to act the train motors, but also it provides illumination, heating and ventilation for coaches. All metro coaches in Kazan are equipped with asynchronous quill drive which allows to increase the ENERGY OF LIFE maintainability and to establish the economy of electric energy. Computers are implemented for automatic control of routes. On certain routes air- conditioning system is stipulated for coaches and for stations too. Comfort both on the ground and underground: perhaps that is the thing which attracts people into the big cities?

“Ametyevo” subway station Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

3.1. THE PRINCIPLES OF CORPORATE GOVERNANCE y” OJSC an mp o Company’s Corporate Governance represents a complex JUSTICE C d

i of processes sustaining the governance of the Company, r control over its activity and regulation of relationship Company provides shareholders a real possibility to “G between shareholders, Company’s management and exercise their rights associated with their participation in other interested parties, oriented as to the provision of the Company, as well as equal attitude to all shareholders the balance of their interests, so to the concordance to regardless number of shares they own. social aims and public interests. The right of shareholders to participate in the corporate Company is permanently improving and developing the governance is carried out via decisions on the most 40 practice of corporate governance, first of all considering important questions within its activity and is guaranteed it as a tool for protection of rights and for observation of by the active legislation for joint-stock companies, as well legal interests of the Company’s shareholders, as well as as Company’s Articles. it is a resource appealed to decrease investment risks and value of leveraged equity and to increase investment Shareholders are entitled to be masters of their own shares, Position indicators of the attractiveness and Company’s shareholder value, to to perform any action which are not contradicted by active switching units strengthen its business reputation. legislation and do not disturb rights and legal interests of other parties, possibility to participate in the profit of the The principles of the Company’s corporate governance are Company, as well as other rights. based on normative legal instruments including legal system

ENERGY OF LIFE of the Russian Federation and legal positions consolidated The safe and effective record of shareholders rights on in the Company’s code of conduct, recommended for use shares of the Company they own is provided by maintenance by Federal Commission for equity market (Instruction of register of holders of registered shares by special registrar N421/p dated on April 4, 2002), and also on internationally who has authorization of Federal Executive body on Equity acknowledged practice of corporate governance: Market for carrying out the activity for maintenance of the register. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re TRANSPARENCY ACCOUNTABILITY RESPONSIBILITY

Company provides timely disclosure of complete and Company’s corporate governance system provides effective Company acknowledges rights of all interested parties as ANNUAL reliable information about all significant questions of the control over the functioning of chief executive office and prescribed in active legislation of the Russian Federation Company’s activity, including its financial situation, industrial management of the Company by Board of directors, as well and tends to construct relationships with interested parties, and economic activity, social and ecologic characteristics, as the accountability of the Company’s board of directors to including its workers, based on respect and consideration structure of property and governance of the Company, as the General meeting of Shareholders, which is the supreme of their rights and to collaborate with these individuals for well as free access to this information for all interested managing body. its development and provision of financial stability. parties. The aim of disclosure such kind of information 41 is its delivery to all parties interested in information in Company’s board of directors carries out the strategic Information about maintenance of Corporate Code of the content, necessary for making weighed and justified governance of the Company’s activity, makes decisions Conduct by Company recommended for use by Federal decisions or for performing other kind of activities which on important questions, connected with the business and Commission for the Securities market (Disposal N421/p can influence Company’s activity. financial performance of the Company. dated from April 4, 2002) is given in Annexes to above- mentioned report. For the realization the principle of transparency Company’s Election of members of board of directors is carried out Board of Directors approved Position about Information via transparent procedure guaranteeing correspondence

Policy consolidating main principles, rules and approaches of structure of Board of directors of the Company to the 2011 to the disclosure of information about Company and its legal requirements and interests of shareholders. activity. So, the main principles of disclosure of information, which are consolidated in the Position, are regularity and Sole executive body of the Company carries out operability of provision of information about Company, governance over the current activities of the Company accessibility of information for shareholders and other and is accountable to the board of directors and General interested parties, reliability and completeness of meeting of shareholders of the Company. information, as well as maintenance of reasonable balance between openness of the Company and its commercial Effective control over the business and financial performance interests. of the Company for the protection of rights and interests of shareholders is carried out as by auditing commission, so by engaging of independent auditor for the examination of accounting records. Transformater bay of 110/6 kV SS Sidorovka Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

3.2. THE NATIONAL RATING OF CORPORATE GOVERNANCE y” OJSC an mp o In 2011 an expert judgment of corporate governance practice C d

i of OJSC “Grid Company” was first carried out. Company r was assigned National Rating of Corporate Governance “G (NRCG) 5 by Consortium of Russian Institute of Directors and Rating Agency “Expert-RA”. Abovementioned class of rating witnesses about moderate level of corporate governance practice, particularly about maintenance of requirements of Russian legislation in the field of corporate governance, and about moderate risks of loss of shareholders in connection 42 with quality of corporate governance.

Company apprehends the importance of further refinements and development of corporate governance practice and carries out balanced work for implementation of main recommendations of Corporate Code of Conduct recommended for use by the disposal of Federal Commission for the Securities market N421/p dated from April 4, 2002. Company has growth potential and tends to raise it. ENERGY OF LIFE

National Rating of Corporate Governance (NRCG) 5 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

3.3. REGULATORY AND CONTROL BODIES Of the Company ort p re The structure and competence of regulatory During the accounting year there were carried out two and control bodies of the Company is determined general meetings of shareholders: ANNUAL March 28, 2011 — Extraordinary general meeting of by Federal Law “About joint-stock companies” shareholders on the question about entry of OJSC “Grid and Articles of the Company. Company” into membership of Regional Association of Employers “Association of enterprises and entrepreneurs of the Republic of Tatarstan”. In accordance to Articles of OJSC “Grid Company” there are 43 following regulatory bodies functioning in the Company: June 27, 2011 — Annual General Meeting of Shareholders where Company’s shareholders discussed and approved • General meeting of shareholders; the results of the Company’s activity for year 2010, annual • Board of directors; statement, annual accounting report, members of Board • Sole executive body (Director General). of Directors, Auditing Commission and Company’s auditor were selected, new editions of Articles and internal Regulatory body over financial and business activity of the documents were approved.

Company is audit commission. 2011

GENERAL MEETING OF SHAREHOLDERS BOARD OF DIRECTORS Of the Company

The supreme managing body of the Company which makes Board of Directors of the Company is a Governing body of decisions on the most important questions of the Company the Company which carries out general governance over is general meeting of shareholders. Order of convening, the activity of the Company with the exception of solution preparation, implementation and summarizing of general of problems concerning to the competence of general General Meeting meeting of shareholders is determined by Federal Law meeting of Shareholders, determines the strategy and of Shareholders “About joint-stock companies” and other legal issues of the priority guidelines of the development of the Company. Russian Federation, Articles and Position about General Meeting of Shareholders of OJSC “Grid Company”. Activity of Board of Directors is subject of legislation of the Russian Federation, Articles of the Company and Position about Board of Directors of OJSC “Grid Company”. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Board of Directors of the Company is carrying out the A number of positions characterizing activity of Board 4. There is consolidated duty of a member of Board of following main functions: of Directors are consolidated by Articles and internal Directors bring to Board of Directors’, Audit Commission’s documents of the Company in order to maintain Corporate and the Company’s Auditor’s notice the information about • It determines priority guidelines of activity and the Code of Conduct. intention of making transaction with securities of the strategy of development of the Company, aimed Company and (or) its branches (associate companies), y” OJSC atachieving maximum profit and increasing Company 1. Competence of Board of Directors of the Company is as well as to disclose information about performed an

mp assets, increasing its investment attractiveness. clearly defined in the Articles of the Company according transactions with such kind of securities. o to tasks which have to be solved by Board. Problems C d

i • It conducts estimation of results of activity of the which have to be solved by Board are determined in a 5. Meetings of Board of Directors of the Company are r Company and its governance bodies, carries out way to exclude ambiguity in limitation of competence of the carried out in average periodicity not rare than once in “G effective control over financial and business activity Board of Directors, Executive Body and General Meeting six weeks. of the Company and activity of sole executive body. of Shareholders. 6. For enhancement of efficacy of activity of Board of • It organizes execution of decisions of general meeting 2. Accountability of executive body of the Company to the Directors the right of members of Board of Directors of shareholders of the Company. Board of Directors is realized as well as via attribution of is stipulated to demand and to receive any information issues of formation and preterm cessation of authorities (documents and data) concerning to Company from 44 • It provides realization and protection of rights and legal of executive body to the competence of Board of Directors executive officers of the Company, which is necessary for interests of shareholders of the Company. of the Company. fulfillment of their responsibilities.Q uantitative composition of Board of Directors is defined in the Articles of the • It provides completeness, reliability and objectivity of 3. There is consolidated duty of members of the Board Company and makes 9 persons. disclosure of information for shareholders and other of Directors to abstain from activities which will lead interested parties. or probably are able to lead to the outbreak of a conflict between their interests and interests of the Company, and in case of outbreak of such kind of conflict to disclose information about this conflict to Board of Directors. ENERGY OF LIFE

Quantitative composition of Board of Directors is defined in the Articles of the Company and makes 9 persons. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

There were two compositions of Board of Directors of the Company functioning in 2011.:

From January 1, 2011 till June 27,2011* From June 27, 2011 till December 31, 2011*

1. Fardiev Ilshat Shaekhovich, Chairman of the board of directors, Deputy Prime 1. Khalikov Ildar Shafkatovich, Head of the Board of Directors, Prime Minister of

Minister of the Republic of Tatarstan, Minister of Energy of the Republic of Tatarstan the Republic of Tatarstan ort p

2. Ametistov Evgeniy Victorovich, Independent director, Scientific supervisor of 2. Fardiev Ilshat Shaekhovich, Chairman of the board of directors, Deputy Prime re Uncommercial Undertaking “Corporate Educational and Scientific Center of Unified Minister of the Republic of Tatarstan, Minister of Energy of the Republic of Tatarstan Electric Power System” ANNUAL 3. Evseev Alexander Nikolaevich, Head of Energy management — Electrical 3. Evseev Alexander Nikolaevich, Head of Energy management — Electrical Supervisor of OJSC “Tatneft” after V.D. Shashin Supervisor of OJSC “Tatneft” after V.D. Shashin

4. Minnekhanova Gulsina Munirovna, First Deputy Director General, Director of 4. Nadyrshin Marat Gabdulbarovich, Deputy Executive Director of administration of Economic and Financial affairs OJSC “Generating Company” estate of Nonprofit Organization “Public housing fund of President of the Republic of Tatarstan” 45 5. Nadyrshin Marat Gabdulbarovich, Deputy Executive Director of administration of 5. Pakhomov Aleksey Mikhaylovich, Member of Federation Council, Representative of estate of Nonprofit Organization “Public housing fund of President of the Republic Body of Legislation of state authority of the Republic of Tatarstan. Director General of Tatarstan” of Regional Association of Employers “Association of Enterprises and Entrepreneurs of the Republic of Tatarstan ”

6. Safiullin Damir Kharunovich, Director General of OJSC “Grid Company” 6. Safiullin Damir Kharunovich, Director General of OJSC “Grid Company”

7. Sakhieva Raisa Abdullovna, Head of state legal governance of President of the 7. Fakhrutdinov Aydar Rustamovich, First deputy Minister of Energy of the Republic Republic of Tatarstan of Tatarstan 2011

8. Fakhrutdinov Aydar Rustamovich, First deputy Minister of Energy of the Republic 8. Khaziev Rauzil Magsumyanovich, Chairman of State Committee on Tariffs of the of Tatarstan Republic of Tatarstan

9. Khamaev Azat Kiyamovich, Minister of territorial and property relations of the 9. Khamaev Azat Kiyamovich, Minister of territorial and property relations of the Republic of Tatarstan Republic of Tatarstan

* Work statuses are noted at the moment of selection. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

THE COMPOSITION OF BOARD OF DIRECTORS OF OJSC “GRID COMPANY” SELECTED ON JUNE 27, 2011 y” OJSC

an KHALIKOV FARDIEV EVSEEV

mp Ildar Shafkatovich Ilshat Shaekhovich Aleksandr Nikolaevich o C d

i Chairman of Board Deputy Chairman r of Directors of the Board of Directors “G

46

Date of birth: 1967 Date of birth: 1960 Date of birth: 1954

Education: Higher Education: Higher Education: Higher, PhD degree in Technical Sciences, Corresponding Member of International Academy of Ecology, Citizenship: Russia Citizenship: Russia Man and Nature Protection Sciences and International Energy Agency Current position in the Company and in other Current position in the Company and in other organizations for last 5 years: organizations for last 5 years: Citizenship: Russia

ENERGY OF LIFE Since January 2006 till April 2010 — Head of Municipal Since February 2002 till April 2010 — Director General of Entity of Naberezhnye Chelny; Mayor of city OJSC “Tatenergo” Current position in the Company and in other Since April 2010 up to date — Prime-minister of the Republic Since April 2005 till April 2010 — Director General of OJSC organizations for last 5 years: of Tatarstan. “Generating Company” Since January 2002 up to now — Head of Energy Since April 2010 till May 2012 — Deputy Prime-minister of Management — Electrical Supervisor of OJSC “Tatneft” He doesn’t own Company’s shares. the Republic of Tatarstan, Minister of Energy of the Republic after V.D. Shashin of Tatarstan Since May 2012 up to date — Director General of OJSC He doesn’t own Company’s shares. “Grid Company”.

He doesn’t own Company’s shares. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort

NADYRSHIN PAKHOMOV SAFIULLIN p

Marat Gabdulbarovich Aleksey Mikhaylovich Damir Kharunovich re ANNUAL

47

Date of birth: 1970 Date of birth: 1945 Date of birth: 1969

Education: Higher Education: Higher, PhD in Economic Sciences Education: Higher, MBA

Citizenship: Russia Citizenship: Russia Citizenship: Russia 2011 Current position in the Company and in other Current position in the Company and in other Current position in the Company and in other organizations for last 5 years: organizations for last 5 years: organizations for last 5 years: Since November 2007 till May 2009 — Head of Management Since June 2005 till December 2011 - Member of Federation Since September 2003 till March 2009 — Deputy Director of Regional representative offices of Public Housing fund Council, Representative of Body of Legislation of state General OJSC “Tatenergo” on corporate policy and property of President of the Republic of Tatarstan. authority of the Republic of Tatarstan. management. Since June 2009 up to now - Deputy Executive Director of Since June 2010 up to now - Director General of Regional Since May 2008 till May 2012 — Director General OJSC Public Housing Foundation of President of the Republic Association of Employers “Association of Enterprises and “Grid Company”. of Tatarstan. Entrepreneurs of the Republic of Tatarstan ” He doesn’t own Company’s shares. He doesn’t own Company’s shares. He doesn’t own Company’s shares Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC

an FAKHRUTDINOV KHAZIEV KHAMAEV

mp Aydar Rustamovich Rauzil Magsumyanovich Azat Kiyamovich o C d i r “G

48

Date of birth: 1975 Date of birth: 1959 Date of birth: 1956

Education: Higher, MBA Education: Higher Education: Higher

Citizenship: Russia Citizenship: Russia Citizenship: Russia

Current position in the Company and in other Current position in the Company and in other Current position in the Company and in other organizations for last 5 years: organizations for last 5 years: organizations for last 5 years:

ENERGY OF LIFE Since January 2006 till May 2010 — Director of Analytic Since February 2004 till January 2011 — First Deputy Since April 2004 till December 2008 — Director General Center, Director for Corporate Development of LTD of Minister of Construction Engineering, Architecture of OJSC “Tatchimpharmpreparaty” “KamEnergoRemont”, LTD “Management Company and Housing and Communal Services of the Republic of Since December 2008 till March 2009 — First Deputy ”KamEnergoRemont - Holding”, LTD “Management Company Tatarstan. Minister, Acting behalf of Minister of territorial and property ”Complex EnergoRazvitie - Holding”, Since January 2011 till May 2012 — Chairman of State relations of the Republic of Tatarstan Since May 2010 up to now — First Deputy Minister of Energy Committee on Tariffs of the Republic of Tatarstan. Since March 2009 up to now - Minister of territorial and of the Republic of Tatarstan Since May 2012 up to now — Director General of OJSC property relations of the Republic of Tatarstan “Generating Company”. He doesn’t own Company’s shares. He doesn’t own Company’s shares. He doesn’t own Company’s shares. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re REPORT ABOUT ACTIVITY OF BOARD OF DIRECTORS OF THE COMPANY IN 2011 ANNUAL Activity of Board of Directors of the Company is constructed General contractor and questions about progress of approved, as well as the question about attraction of in compliance with approved Plans of activity of the Board. work for establishment of exclusion zones of objects borrowed capital for the realization of this investment Plan of the activity of the Board of Directors for the second of transmission facility of OJSC “Grid Company” were program was discussed. half year of 2010 and the first half year of 2011 is approved discussed, Committee of innovations of Board of by resolution of the Board of Directors dated from August Directors was created; • In and around corporate governance: proposals 8, 2010, Plan for the second half year of 2011 and for the received from the shareholders of the Company on 49 first half year of 2012 is approved by the resolution dated • about financial-economic activity: budgetary the agenda and to the candidates for the Board of from August 31, 2011. performance of the Company for 2010 was discussed, Directors and Auditing Commission of the Company budget of the Company for 2011 was approved, results for pronouncement to annual general meeting of During accounting year there were carried out 18 of tariff campaign for 2010 were discussed, as well as shareholders were discussed, questions, associated meetings of the Board of Directors of the Company results of business and financial performance in the with preparation and carrying out of general meetings (12 of them were carried out as meeting in absentia, result of activity of the Company for corresponding of shareholders were discussed; Position about and 6 of them were carried out as meeting in presentia) periods of 2011 were discussed; information policy of the Company was approved, where the following main questions were discussed: resolution about additional issuance of ordinary 2011 • about investment activity of the Company: the results of registered uncertified shares was approved, four • about production activity of the Company: the activity performance of investment program of the Company for transactions associated with alienation of immovable of the Company on elimination of consequences of 2010 were discussed and approaches to the formation property and 253 dealerships, in transaction of which natural hazards and realization of additional actions of investment program of OJSC “Grid Company” for 2011 interest existed were approved; for increasing the safety of electric supply system of were approved, the project of investment program of Republic, questions about start of construction of 500 OJSC “Grid Company” for the period 2012-2016 was • Other questions related to the competence of the Board kV Electrical Substation of Elabuga and selection of of Directors by federal law “About joint-stock companies” and Articles of the Company were discussed. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

INFORMATION ABOUT PARTICIPATION OF MEMBERS OF THE BOARD OF DIRECTORS IN THE MEETINGS OF THE BOARD OF DIRECTORS, CARRIED OUT IN 2011: Period since January 1, 2011 till June 27, 2011 Period since June 27, 2011 till December 31, 2011

y” OJSC Meeting in Meeting in Portion (in Meeting in Meeting in Portion (in

an presentia absentia percents) of presentia absentia percents) of

mp attendance in attendance in o

C overall number overall number d i

r of meetings of meetings “G Fardiev Ilshat Shaekhovich 4 8 100% Khalikov Ildar Shafkatovich 2 4 100%

Ametistov Evgeniy Victorovich 1 7 67% Fardiev Ilshat Shaekhovich 1 4 83%

Evseev Aleksandr Nikolaevich 4 7 92% Evseev Aleksandr Nikolaevich 2 4 100%

Minnekhanova Gulsina Munirovna 4 7 92% Nadyrshin Marat Gabdulbarovich 1 4 83% 50 Nadyrshin Marat Gabdulbarovich 4 8 100% Pakhomov Aleksey Mikhaylovich 1 4 83%

Safiullin Damir Kharunovich 4 8 100% Safiullin Damir Kharunovich 2 4 100%

Sakhieva Raisa Abdullovna 4 8 100% Fakhrutdinov Aydar Rustamovich 2 4 100%

Fakhrutdinov Aydar Rustamovich 4 8 100% Khaziev Rauzil Magsumyanovich 2 4 100%

Khamaev Azat Kiyamovich 1 8 75% Khamaev Azat Kiyamovich 1 4 83%

ENERGY OF LIFE The attendance of members of the Board of Directors in the meetings of the Board of Directors, carried out in 2011, made in average 92%.

In 2011 there were not made any decisions by general meeting of shareholders of the Company regarding to the reward and (or) compensation to members of the Board of Directors in period of performance their responsibilities. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

INFORMATION ABOUT COMMITTEES OF THE BOARD OF DIRECTORS OF THE COMPANY

The creation of Committees of The Board of Directors is • The Committee on the implementation of the program • Committee on Innovation converted in May 2011 from stipulated for preliminary discussion of the most important "Reactive Power" through the creation and application the Committee of the Board of Directors to implement ort

questions and drafting of recommendations to the Board of of devices and technologies of control systems ac, the program "Reactive power" through the creation and p

Directors for decision-making on such kind of questions. created to develop and submit recommendations application of devices and control systems technology re Committees of the Board of the Company are advisory (conclusions), the Board of Directors on activities aimed ac. The main purpose of the Committee is to ensure — consultative bodies, providing effective performance at reducing energy losses in the networks, increasing that the Board of Directors in the organization of the

of its functions by the Board of Directors on the general the reliability of electricity supply, improving quality Company's effective use of resources for the sustainable ANNUAL governance of the Company. of electric power through the creation and use of development of intensive innovation by creating an devices and control systems technology ac. Beginning intelligent network. This innovative project is included There are approved Positions about following in December 2010, in addition to solving the problems in in the national program of energy conservation and Committees of the Board of Directors in the Company: this area joined the Committee for the implementation energy efficiency in 2011-2015 and until 2020. The of the innovative project "Intelligent Network JSC "Grid competence of the Committee includes the review and • Auditing Committee, this is designed to provide actual Company", which is part of the Republican program recommendation to approve the policy and program 51 participation of the Board of Directors in the reviewal of energy conservation and energy efficiency in 2011- development of innovative companies agree on the main of financial and economic activity of the Company, as 2015 and until 2020. In addition, the Company has directions of research and development, development well as to interact with the Auditing Commission of joined the technology platform, "Intelligent Energy of recommendations for the identification of priority the Company and with the Auditor of the Company. in Russia" in order to obtain scientific, technological, research projects required for implementation, organizational and financial assistance for innovative preparation of proposals for candidates Performers • Staff and reward Committee, this is designed to projects. In this regard, the Board of Directors May 19, (organizations) to carry out research, development of draft and present recommendations (conclusions) to 2011, it was decided to transform this Committee to recommendations for the management application

the Board of Directors of the Company in and around the Committee on innovation. and implementation of pilot projects at the facilities 2011 personnel policy and rewards, including thus in the field of the Company. of directions of personnel policy of the Company and its divisions, as well as permanently to perform monitoring of the concordance of criterions and reward policy in the field of the development strategy of the Company, its financial situation, as well as in the situation on labour - market etc. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

COMMITTEES OF THE BOARD OF DIRECTORS IN 2011 HAD FOLLOWING COMPOSITIONS WHILE CARRYING OUT THEIR ACTIVITIES:

Committee on the realization of program “Reactive power”* y” OJSC Fardiev Ilshat Shaekhovich Zabelkin Boris Aleksandrovich an Chairman of the Board of Directors, Deputy Prime Minister of the Republic of First Deputy Director General –Technical Director of OJSC “Grid Company” mp

o Tatarstan, Minister of Energy of the Republic of Tatarstan, Chairman of the board of C d

i directors of OJSC "Grid Company" r

“G Safiullin Damir Kharunovich Kandalintsev Valeriy Vladimirovich Director General of OJSC “Grid Company” Chief Dispatcher of the subsidiary of OJSC “System Operator of the Unified Power System” Regional Dispatching Office of Tatarstan

Abdullazyanov Edward Yunusovich Meer Valeriy Mikhaylovich Deputy Director General of OJSC “Grid Company” on investments, Head of the Engineer of first category of SRPAEM OJSC “Grid Company”, Secretary of Committee Department of Electric Supply of Enterprises of Agroindustrial Complex of Kazan 52 State Energetic University

Vasilyev Yuriy Aleksandrovich Nigmetzyanov Vildan Savilyevich Deputy Technical Director of OJSC “Grid Company” on exploitation Deputy Director General of OJSC “Grid Company” on Electric Energy Accounting

Vdovin Aleksandr Mikhaylovich Sukharnikov Mikhail Aleksandrovich Chief power engineering specialist of OJSC “Nizhnekamskneftekhim” Head of the Management of Prognostics of Ministry of Energy of Republic of Tatarstan

Gizzatullin Ruslan Zagitovich Rozhina Tatyana Ksenofontovna Deputy Director General of OJSC “Generating Company” — Technical Director Head of Operative-dispatch communication service of of ODSE UE “Tatneft” OJSC named after V.D. Shashin ENERGY OF LIFE Zhdanov Aleksandr Vladimirovich Smirnov Aleksandr Borisovich Director General of LTD “KAMAZ-Energo” Director of OJSC “TatAISEnergo”

* Work statuses are noted at the moment of selection. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Committee on innovations*

Fardiev Ilshat Shaekhovich Zhdanov Aleksandr Vladimirovich ort p

Chairman of the Board of Directors, Deputy Prime Minister of the Republic of Director General of LTD “KAMAZ-Energo” re Tatarstan, Minister of Energy of the Republic of Tatarstan, Chairman of the board of directors of OJSC "Grid Company"

Safiullin Damir Kharunovich Zabelkin Boris Aleksandrovich ANNUAL Director General of OJSC “Grid Company” First Deputy Director General –Technical Director of OJSC “Grid Company”

Abdullazyanov Edward Yunusovich Meer Valeriy Mikhaylovich Deputy Director General of OJSC “Grid Company” on investments, Head of the Engineer of first category of SRPAEM OJSC “Grid Company”, Secretary of Committee Department of Electric Supply of Enterprises of Agroindustrial Complex of Kazan State Energetic University 53 Vasilyev Yuriy Aleksandrovich Nigmetzyanov Vildan Savilyevich Deputy Technical Director of OJSC “Grid Compaby” on exploitation Deputy Director General of OJSC “Grid Company” on Electric Energy Accounting

Vdovin Aleksandr Mikhaylovich Sukharnikov Mikhail Aleksandrovich Chief power engineering specialist of OJSC “Nizhnekamskneftechim” Head of the Management of Prognostics of Ministry of Energy of the Republic of Tatarstan

Galeev Eduard Gennadyevich Rozhina Tatyana Ksenofontovna 2011 Director of the Branch OJSC “System Operator of the Unified Power System ” of Head of Operative-dispatch communication service of ODSE UE “Tatneft” OJSC Regional Dispatching Office of Tatarstan named after V.D. Shashin

Gizzatullin Ruslan Zagitovich Smirnov Aleksandr Borisovich Deputy Director General of OJSC “Generating Company” — Technical Director Director of OJSC “TatAISEnergo”

* Work statuses are noted at the moment of selection. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Report of the Committee on Innovations of the Board of Directors

During 2011 the Committee on Co-Innovation 4. Applied for the Coordinator of the platform, "Intelligent Energy System of Russia" - FSI "Russian Energy Agency The result of joint activity was the first demonstration in

y” OJSC Board of Directors is satisfied that: Ministry of Energy," to provide scientific, technical the Russian Federation the current layout of the prototype an

mp 1. Developed and recommended for approval by the Board and financial support for OJSC "Grid Company" in the "digital substation" at the 13th International Exhibition o of Directors of Policy Development and Innovation Program implementation of innovative projects. "Energy. Resource" in the city of Kazan in December 2011, C d

i of innovative development of the Company for the period marked by the diploma of the exhibition. r 2011-2015. 5. The preparation of materials for the implementation “G of innovative directions "joining procedure of generating 2. On behalf of the Ministry of Energy of the Republic of capacity facilities "small power" to the grid of "Grid Company" Tatarstan within the framework of the republic adopted the OJSC. target of energy saving program, "Reactive power - power - losses - the economy" (Decree of the Cabinet of Ministers 6. On the initiative of the Committee concluded "The of the Republic of Tatarstan of 27.06.2008 № 1022-p) is General Agreement partnership and strategic cooperation" 54 executed research project "Measures for the implementation from December 7, 2011 between OJSC "Grid Company" of projects in the modernization of infrastructure" ("Provision and the leading companies of Russia (OJSC "NIIPT" (St. of reactive power flow distribution regulation in the power Petersburg), OJSC "PROFOTEK" (Moscow) LLC NPP "Screen" of the Republic of Tatarstan on the stages of production, (Cheboksary), LLC "EnergopromAvtomatizatsiya" (St. transportation and consumption"). Petersburg)).

3. With the participation of the Committee on Innovation The subject of cooperation in the framework agreement Board of Directors of the Company together with JSC "NIIPT" is the interaction between the parties in the organization (St. Petersburg) on behalf of the Ministry of Energy of the of development on the formation and implementation of Republic of Tatarstan made a research paper "Measures for science, technology, innovation, financial policies, scientific

ENERGY OF LIFE the implementation of projects in the field of modernization and technical cooperation and the creation of innovative - I stage (development of technical requirements for information technologies for economic development of the object" digital substation") and commenced phase the Republic of Tatarstan. II ("Establishment of the layout and the existing landfill "Digital substation").

Secondary Equipment Complex of Digital Substation 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

SOLE EXECUTIVE BODY OF THE COMPANY (DIRECTOR GENERAL)

The leadership over the present activity of the Company is accomplished by sole executive body, Director General who is SAFIULLIN FARDIEV ort

accountable to the General Meeting of Shareholders and to the Damir Kharunovich Ilshat Shaekhovich p

Board of Directors of the Company. In compliance with Articles re of the Company the selection of the Director General and preterm cessation of his authorities is carried out according

to the decision of the Board of Directors. Director General ANNUAL is the guarantor of achievement of announced purposes of the Company and is responsible for the realization of approved strategy.

Rights and duties of Director General are defined in Federal Law “About joint-stock companies”, other legal acts of the 55 Russian Federation, Articles and Position about Director General of the Company, as well as by work contract, Date of birth: 1969 Date of birth: 1960 concluded between Director General and Company. Education: Higher Education: Higher Criterion of determination and cumulative remuneration of executive sole body of the Company are defined in the work Citizenship: Russia Citizenship: Russia contract concluded with him. Issues on financial stimulation of sole executive body of the Company are regulated by Current position in the Company and in other He is assigned in compliance with decision of the Board of 2011 current local acts of the Company about financial stimulation organizations for last 5 years: Directors of OJSC “Grid Company” dated from May 21, 2012. of Director General assigning the dependence of cumulative Since September 2003 till March 2009 — Deputy Director remuneration from the performance of main technical, General OJSC “Tatenergo” on corporate policy and property Current position in the Company and in other economic and financial characteristics of the Company. management. organizations for last 5 years: Since May 2008 till May 2012 — Director General of OJSC Since February 2002 till April 2010 — Director General of “Grid Company”. OJSC “Tatenergo” Since April 2005 till April 2010 — Director General of OJSC He doesn’t own Company’s shares. “Generating Company” Since April 2010 till May 2012 — Deputy Prime-minister of the Republic of Tatarstan, Minister of Energy of the Republic of Tatarstan Since May 2012 up to now — Director General of OJSC “Grid Company”.

He doesn’t own Company’s shares. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

INFORMATION ABOUT AUDITING COMMISSION

In order to control over financial and business activity of Activity of the Auditing Commission is regulated by Federal the Company the Auditing Company is selected in Annual Law “About joint-stock Companies”, Articles of the Company General Meeting of Shareholders. Auditing Commission is a and Position about Auditing Commission of OJSC “Grid y” OJSC permanently acting body of internal control of the Company, Company”. an

mp performing regular control over the financial and business o activity of the Company in according to correspondent to the Auditing Commission is selected on annual general meeting C d

i requirements of active legislation of the Russian Federation, of shareholders for a period till the next general meeting r Articles and internal documents of the Company. of shareholders and is consisted of 5 people. “G

DURING THE ACCOUNTING YEAR THE AUDITING COMMISSION HAD FOLLOWING COMPOSITION WHILE ACTING 56 Period since January 1, 2011 till June 27, 2011* Period since June 27, 2011 till December 31, 2011*

1. SADRIEVA Guzal Gabdulkhakovna 1. KUZMISHIN Ilya Aleksandrovich Head of the Department of Energy of Ministry of Energy of the Republic of Tatarstan Chairman of the Department of investment projects of Administration of Development of Ministry of Energy of the Republic of Tatarstan

2. VALEEVA Farida Faridovna 2. VALEEVA Farida Faridovna Leading accountant of OJSC “Grid Company” Leading accountant of OJSC “Grid Company”

3. KHASANOVA Yulia Vladimirovna 3. KHASANOVA Yulia Vladimirovna Leading economist of planned-economic Department of OJSC “Grid Company” Leading economist of planned-economic Department of OJSC “Grid Company”

ENERGY OF LIFE 4. SHAKIROVA Natalya Ivanovna 4. SHAKIROVA Natalya Ivanovna Deputy Chairman of financial department of OJSC ”Grid Company” Deputy Chairman of financial department of OJSC ”Grid Company”

5. UREZOV Dmitry Nikolaevich 5. UREZOV Dmitry Nikolaevich Leading consultant of the department of economical analysis of Ministry of Finances Leading consultant of the department of economical analysis of Ministry of Finances of the Republic of Tatarstan of the Republic of Tatarstan

* Work statuses are noted at the moment of selection. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

INFORMATION ABOUT MEMBERS OF AUDIITNG VALEEVA Farida Faridovna Information on transactions in COMMISSION OF THE COMPANY: Date of birth: 1960 which there is an interest, and major Education: Higher transactions KUZMISHIN Ilya Aleksandrovich Current position in the Company and in other Date of birth: 1979 organizations for last 5 years: The list of transactions, recognized in accordance with ort

Education: Higher July 2005 – to the present date — Senior Accountant of Federal Law "About Joint Stock Companies" as transactions, p

Current position in the Company and in other organizations OJSC "Grid Company". in which there is an interest, approved by the Board of re for last 5 years: She doesn’t own Company’s shares. Directors of the Company in 2011, is presented in the September 2003–June 2008 — Leading Counselor of Appendix to the Report.

the Department of Economics of Subsurface resources ANNUAL management of the Administration of Economics and UREZOV Dmitriy Nikolaevich The transactions that are recognized, in accordance with Investment Activity of Ministry of Ecology and Natural Date of birth: 1978 Federal Law "About Joint Stock Companies", as transactions, Resources of the Republic of Tatarstan. Education: Higher in which there is an interest, and in accordance with June 2008 - August 2010 — Chairman of the Department of Current position in the Company and in other paragraph 4 of Article 83 of the Federal Law "About Joint Development and Management of Innovative Infrastructure organizations for last 5 years: Stock Companies" should be approved by the General of the Administration of Investment and Innovative Activity 2005 – to the present date — Lead Consultant of the Meeting of Shareholders of the Company, did not occur 57 of Ministry of Economics of the Republic of Tatarstan. Economic Analysis Department of the Ministry of Finance during 2011. September 2010 – to present day — Head of Department of the Republic of Tatarstan. of Investment Projects of Development Administration of He doesn’t own Company’s shares. The transactions, which are recognized in accordance the Ministry of Energy of the Republic of Tatarstan with Federal Law "About Joint Stock Companies" as major He doesn’t own Company’s shares. transactions, were not made during 2011. SHAKIROVA Natalya Ivanovna Date of birth: 1965

KHASANOVA Yuliya Vladimirovna Education: Higher 2011 Date of birth: 1983 Current position in the Company and in other Education: Higher organizations for last 5 years: Current position in the Company and in other organizations April 2005 – November 2006 — Head of the Financial for last 5 years: Planning Division of the Financial Department of OJSC August 2005 - June 2007 — second category economist "Grid Company"; of economic planning department of OJSC "Tatenergo" - November 2006 – to the present date - Deputy Chairman Company "Energosbyt"; of Financial Department of OJSC ”Grid Company” June 2007 - April 2009 - second category economist of She doesn’t own Company’s shares. corporate governance "Tatenergo" OJSC; April 2009 - May 2010 - Senior Economist of the Planning and Economics Department in OJSC "Grid Company"; May 2010 – to present day - Chief of the Financial Planning Division of the Financial Department of OJSC "Grid Company". She doesn’t own Company’s shares.

FINANCIAL AND ECONOMIC ort p ACTIVITY re 4 ANNUAL

Kazan is a students’ city. Tens of higher educational institutions: ENERGY universities, academies, institutes, higher colleges every year 59 attract thousands of students to Kazan. Here they study, work, make OF YOUTH discoveries, relax, fall in love, create and go in for sports, giving a vigorous impetus of energy to the city!

In Kazan student movement is the most powerful: minds of youth and talents are actively engaged into economic, political, cultural and sports life of the capital of RT. Their power of conviction and faith in themselves and their city is so great that it is just Kazan that was trusted to host the 2013 Summer Universiade — the main students competition of the world! ENERGY OF LIFE It is not surprising that the best student campus of Russia — Universiade — was built in Kazan. This is one of the key facilities of the 2013 World University Summer Games. Nowadays the Universiade Village makes an impression of a small independent city — which is up-to-date, hospitable, homelike and cheerful.

Universiade Village 2013 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

4.1. SYSTEM OF FINANCIAL AND ECONOMIC PLANNING IN THE COMPANY AND COMPANY’S MANAGEMENT y” OJSC an mp o The main management tool of “Grid Company” OJSC is and one-month step of planning. Budget permits Cash flow management in the Company is based on the C d i a budget pattern, representing an hierarchy system of management to orient in everyday activities, aimed mechanism of centralized cash flow generation at the r at achieving the target values of middle-term planning. expense of receipts from main financial and investment

“G budgets. The system of financial and economic planning of the Company includes the following levels of planning: activities and their subsequent use for financing of the main and investment activities. Financing of the main activity — Long-term planning, represented by financial plan To establish financial management system, is carried out in a form of distribution of flow of money with five-year planning horizon and one-year step conforming to the up-to-date approaches to corporate between the Company’s branches. of planning. Long-term planning implies working management, the following steps were undertaken out of directions of implementation of the Company’s in the Company: During 2011 the Company’s management bodies made 60 strategic plans, taking into account acceptable level efforts to maintain the optimum level of financial soundness. of financial risks and maintaining the Company’s • Financial structure was formed and has been functioning One of the priorities of the financial policy was optimization business solvency on the basis of formation of financial responsibility of expenses — decrease of specific operating expenses for centers; conventional unit of equipment without loss of efficiency • Centralized money flow monitor system was formed and reliability of network servicing. — Middle-term planning of the Company with a three- and has been functioning; year planning horizon and one-year step of planning. • Budget management system has been introduced, It is carried out within the frameworks, specified by representing activities of the Company’s management tariff regulation scenario. The target of planning is bodies and its branches in the sphere of project determination of target values of financial indicators budgeting development and consideration, approval and

ENERGY OF LIFE for a middle-term period on the base of long-term implementation of budgets, execution of management production plans, determination of required resources, account; providing their achievement on the basis of the balance • Introduction of process approach to management is of the Company’s economic interests, consumers’ and commenced. shareholders’ interests. The system of analysis of the results of financial and economic activity is built on the basis of comparison of — Short-term, current planning, represented by the plan and actual figures. Company’s budget with one-year planning horizon 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

4.2. BASIC OPerATIONAL RESULTS OF FINANCIAL AND ECONOMIC ACTIVITY for 2011 ort p re FINANCIAL INDICATORS OF THE COMPANY’S ACTIVITY, mln. rub.

Description of Indicators 2009 * 2010 * 2011 ANNUAL According to the results of 2011 income from Implementation Income, including the following: 15 100 16 613 18 491 of normal activities of the Company increased compared to the analogous period of the previous years to 1 878 Electric power transmission 14 149 15 839 16 702 million rubles or 11%, which was determined by increase Technological connection 921 748 1 749 in revenues from rendering services on electric energy transmission to 862 million rubles or to 5%, as well as, 61 Others 30 26 40 by increase in revenues from rendering services on Prime cost, including 9 682 10 575 12 257 technological connections of consumers (to 1 001 mln. rub. or to 134%). Electric power transmission 9 517 10 433 12 047

Technological connection 131 115 175

Others 35 27 35 2011 Profits (loss) on sales 5 418 6 038 6 233

Other income 133 302 594

Other losses 604 1 096 1 539

Profits (loss) from taxation 4 948 5 244 5 288

Current income tax 1 065 895 984

Net profit (pure losses) for the accounting period 3 868 4 035 4 010

* Indicators are preset in retrospect due to the fact of change of the Company’s accounting policy. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

DYNAMICS OF INCOME CHANGE, mln. rub.

20000 40 18000 26 1749

y” OJSC 16000 30 748 an 14000 921 4 010 000 000 — rubles

mp 12000 o 10000 15 839 16 702

C is the Company’s net income based on results

d 14 149 i 8000 r of financial and economic activity for 2011.

“G 6000 4000 2000 0

2009 2010 2011

62 Others Technological Energy connection transmission

According to data for 2009-2011 volume of revenue Revenue growth in relation to technological connections annual depreciation amount growth in conjunction with growth trend is being observed. Revenue growth in 2011 in 2011, first of all, is conditioned by completion of the implementation of the Company’s Investment Program, compared to 2010 is conditioned by inclusion of more agreement for technological connections of large industrial as well as, increase of standard conventional units owing investment component into tariff of 2011, as well as, by facility - Oil Refinery OJSC "TANECO" with committed to putting into operation new facilities.

ENERGY OF LIFE energy consumption increase by industrial enterprises capacity of 86.5 Mw. and other consumers of the Republic of Tatarstan, which According to the results of financial and economic activity is generally determined by positive trends of development Prime cost of services, rendered by the Company in 2011 for 2011 the Company earned net profit in the amount of of the economy of the Republic. compared to the analogous period of the previous year, 4 010 mln. rub. increased to 1 682 million rubles (16%) at the expense of 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

INDICATOR Of the Company’S FINANCIAL CONDITION

Description of Indicator 31.12.2009 31.12.2010 31.12.2011 Standard value ort p

Liquidity ratio re Absolute liquidity ratio 0,83 1,23 1,46 >0,2

Quick ratio 1,56 1,80 2,09 >1 ANNUAL

Current liquidity ratio 1,59 1,83 2,12 1,5–2,5

Capital structure ratio Equity to Total Assets 0,71 0,74 0,72 0,5–0,8

Leverage 0,40 0,35 0,39 63

Margin of profit ratio EBITDA profitability, % 41% 42% 41% -

Operating profitability, % 33% 32% 29% -

Return on Total Assets, % 21% 18% 14% - 2011 Total Assets Turnover 0,84 0,81 0,71 - Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Liquidity index values according to the results of the DYNAMICS OF SIZE OF THE AUTHORIZED CAPITAL Company’s activity for 2011 indicate rather high level of the Company’s liquidity and solvency, Company’s ability to repay short-term obligations. 25000 20 952 y” OJSC Margin of profit ratios for the analyzed period are steady. 20000 16 919 an mp

o 12 884 One of the major indices, characterizing business value, 15000 C 10 489 d

i capital structure and determining business capacity, is the r Company’s net assets value. Net assets of the Company 10000 “G 6 189 6 189 significantly exceed authorized capital, which guarantees protectability of liabilities to creditors. 5000

0

2009 2010 2011 64 net assets value authorized capital

220 kV OLChistopol 220 – Nizhnekamsk 110 kV OL Chistopol 220 –Kargali The Company’s net assets growth in 2011 to 4033 million Analysis of dynamics of indices, characterizing the rubles or 24% was conditioned by implementation of large- Company’s financial and economic activity for 2009-2011, scale Program of capital construction of the Company, shall permit to make conclusion on its stable development.

ENERGY OF LIFE as well as, by completion of reorganization procedure by incorporation of “Dispatch Center” OJSC, which is Company’s wholly-owned subsidiary. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

4.3. ACCOUNTING (FINANCIAL) RECORDS OF “GRID COMPANY” OJSC

STATEMENT OF AFFAIRS as at 31.12.2011 ths. rub.

ASSET Line code As at 31.12.2011 As at 31.12.2010 As at 31.12.2009 ort p

I. FIXED ASSETS re Fictitious assets 1110 20 628 15 823 358 Results of investigations and developments 1120 27 863 20 960 13 811 Capital assets 1130 19 086 605 15 237 473 11 596 035 ANNUAL Income yielding investments into tangible assets 1140 0 0 0 Financial investments 1150 357 097 847 330 815 160 Deferred tax assets 1160 146 578 179 983 204 810 Other fixed assets, including the following: 1170 596 256 407 153 336 059 unexpired costs 11701 47 040 36 617 28 377 65 other non-current assets 11702 0 4 362 5 029 non-current loan receivable 11703 549 216 366 173 302 653 TOTAL Section I 1100 20 235 027 16 708 722 12 966 233 II. FLOATING ASSETS Supplies, including the following: 1210 147 221 99 435 90 397

Materials 12101 147 197 98 365 89 042 2011 Other 12201 24 1 070 1 355 Input value-added tax 1220 1 002 8 386 8 059 Receivables, including the following: 1230 2 599 103 1 819 105 2 312 353 Prepayment under agreement terms to suppliers, contractors 12301 1 209 965 450 198 351 093 Payments to purchasers and customers 12302 1 184 723 1 253 773 1 794 948 VAT payments from received prepayments 12304 111 042 95 906 131 061 Others 12305 93 373 19 228 35 251 Financial investments (excepting cash equivalents) 1240 2 440 440 1 548 715 65 108 Monetary funds and cash equivalents 1250 3 632 925 2 586 200 2 596 975 Other current assets 1260 30 451 101 277 45 698 TOTAL Section II 1200 8 851 142 6 163 118 5 118 590 REMAINDER 1600 29 086 169 22 871 840 18 084 823 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

ths.rub. LIABILITIES Line code As at 31.12.2011 As at 31.12.2010 As at 31.12.2009 III. SHAREHOLDERS’ FUNDS AND STOCK Authorized capital 1310 6 189 318 6 189 318 10 489 318 Own shares, repurchased from shareholders 1320 0 0 (4 300 000) Reappraisal of fixed assets 1330 0 0 0 Added capital (without reappraisal) 1340 485 383 485 383 485 383

y” OJSC Earned surplus 1350 325 019 322 846 105 260

an Unappropriated profits (uncovered loss) 1360 13 952 077 9 921 116 6 103 801 mp

o TOTAL Section III 1300 20 951 797 16 918 663 12 883 762 C d i IV. LONG-TERM LIABILITIES r

“G Borrowed proceeds 1410 0 0 0 Deferred tax liabilities 1420 806 874 550 865 262 120 Estimated liability 1430 0 0 0 Other liabilities, including the following: 1440 3 153 712 2 029 634 1 715 240 long-term creditor indebtedness 14401 3 153 712 2 029 634 1 715 239 66 TOTAL Section IV 1400 3 960 586 2 580 499 1 977 360 V. SHORT-TERM LIABILITIES Borrowed proceeds 1510 0 0 0 Creditor indebtedness, including the following: 1520 3 750 869 2 626 726 2 640 251 payments to suppliers and contractors 15201 2 019 929 1 650 704 1 266 682 received prepayments 15202 727 465 628 343 859 062 settlements in respect of taxes and levies 15203 436 488 258 807 453 737 unpaid dividends 15204 338 796 0 0 VAT payment from advance paid out 15205 174 387 49 361 30 170

ENERGY OF LIFE other payments 15206 53 804 39 511 30 600 Deferred revenue 1530 0 65 159 Estimated liabilities, including the following: 1540 422 897 743 634 582 377 estimated unutilized vacation liabilities 15401 130 878 106 904 100 615 estimated liabilities as employees bonus for results 15402 291 259 572 365 481 650 estimated liabilities related to abortive trials 15403 760 64 365 112 Other liabilities 1550 20 2 253 914 TOTAL Section V 1500 4 173 786 3 372 678 3 223 701 REMAINDER 1700 29 086 169 22 871 840 18 084 823 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

PROFIT AND LOSS STATEMENT ths.rub. Description of Index Line code For 2011 For 2010 Revenue, including 2110 18 490 708 16 613 013 Electric power transmission 21101 16 701 666 15 839 251 Technological connection 21102 1 748 576 747 835 Other 21103 40 466 25 927 Cost of sales, including: 2120 (12 257 379) (10 575 273) Electric power transmission 21201 (12 047 075) (10 433 114) ort Technological connection 21202 (175 155) (115 120) p re Other 21203 (35 149) (27 039) Gross profit (loss), including: 2100 6 233 329 6 037 740

Electric power transmission 21001 4 654 591 5 406 137 ANNUAL Technological connection 21002 1 573 421 632 715 Other 21003 5 317 - 1 112 Business expenses 2210 0 0 Administration expenses 2220 0 0 Sales profit (loss), including: 2200 6 233 329 6 037 740 67 Electric power transmission 22001 4 654 591 5 406 137 Technological connection 22002 1 573 421 632 715 Other 22003 5 317 - 1 112 Income from participation in other organizations: 2310 0 202 share in capital of Russian organizations 23101 0 202 Interest receivable 2320 237 237 151 379 2011 Interest payable 2330 0 0 Other income 2340 356 462 150 685 Other expenses 2350 (1 538 963) (1 096 389) Income (loss) before taxation 2300 5 288 065 5 243 617 Current income tax, including: 2410 (984 302) (894 645) Permanent tax liabilities (assets) 2421 201 012 141 502 Change of deferred tax liabilities 2430 (255 200) (289 421) Change of deffered tax assets 2450 (19 123) (6 159) Other 2460 (19 455) (18 491) Net profit (loss) 2400 4 009 985 4 034 901 Accumulated financial result 2500 4 009 985 4 034 901 Base profit (loss) for share 2900 0,00032 0,00033 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

CALCULATION OF NET ASSETS VALUE APPRAISAL ths.rub. Description of Index Line code As at 31.12.2011 As at 31.12.2010 As at 31.12.2009 ASSETS y” OJSC

an Intangible assets 1110 20 628 15 823 358 mp o Fixed capital stock 1130 19 086 605 15 237 473 11 596 035 C d i

r Incomplete construction “G Income yielding investments into tangible assets 1140 0 0 0

Long-tem and short-term financial Investments 1 1150 357 097 847 330 815 160 1240 2 440 440 1 548 715 65 108

Other noncurrent assets 2 1120 27 863 20 960 13 811 68 1160 146 578 179 983 204 810 1170 596 256 407 153 336 059

Stock 1210 147 221 99 435 90 397

Input value added tax 1220 1 002 8 386 8 059

Receivables 3 1230 2 599 103 1 819 105 2 312 353

Monetary assets 1250 3 632 925 2 586 200 2 596 975

Other current assets 1260 30 451 101 277 45 698

TOTAL eligible assets 29 086 169 22 871 840 18 084 823 ENERGY OF LIFE LIABILITIES Long-term loan and debt service obligations 1410 0 0 0

Other long-term Liabilities 4, 5 1420 806 874 550 865 262 120 1440 3 153 712 2 029 634 1 715 240 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

тыс. руб. Description of Index Line code As at 31.12.2011 As at 31.12.2010 As at 31.12.2009 Sort-term loan and debt service obligations 1510 0 0 0 ort

Creditor indebtedness 1520 3 750 869 2 626 726 2 640 251 p re Unpaid dividends

Provisions for liabilities and charges 1540 422 897 743 634 582 377 ANNUAL Other short-term liabilities 5 1550 20 2 253 914

TOTAL eligible liabilities 8 134 372 5 953 112 5 200 902

Net asset value of Joint-stock Company 20 951 797 16 918 728 12 883 921 (total eligible assets minus total eligible liabilities) 69

1 excepting actual expenditures connected with repurchase of own stock 2 including the value of deffered tax assets 3 excepting members’ (founders) arrears of dues to the authorized capital 4 including the value of deferred tax liabilities

5 the data on the value of other long-term and short-term liabilities include the amount of refunds, 2011 founded in the order established in connection with the contingent liabilities and discontinuation of activities. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

DATA ON ACCOUNTING POLICIES Fixed asset depreciation is carried out by a straight-line method. Allowance for doubtful accounts in the Company is being The period of beneficial use is determined by the Company constituted by each Contractor and agreement individually. The Company’s accounting policy is developed in compliance according to the Government Decree on January 1, 2002 N 1 The Company forms estimated liabilities: with FEDERAL LAW “On Accounting” dated from 21.11.1996 N "On the Classification of fixed assets included in depreciation • unutilized vacations; 129-FZ, Regulations on accounting and financial reporting in groups". • payment of remuneration according to the results for y” OJSC the Russian Federation, approved by the Ministry of Finance of the accounting period; an

mp the Russian Federation as of 29.07.1998 No.34m, Regulations Fixed assets reappraisal is not carried out. In the statement • abortive trials. o on accounting "Accounting policy organizations" (PBU 1/2008), of assets and liabilities fixed assets are indicated at their C d

i and other normative documents in the sphere of book-keeping acquisition cost minus depreciation sums, accrued for the Consequences of changed accounting policies, which rendered r accounting. period of use. or which may render significant affect to the Company’s “G financial position, financial outputs of its activity and/or flow The accounting period is the period of time from January 1 to Appraisal of procured materials is carried out at agreed prices of funds, are estimate at terms of money. December 31. The Company shall continue its activity in the taking into account transportation and procurement costs. foreseeable future, the Company has no intention or need to Cost of special gear and working clothes of more than 12 Consequences of changed accounting Policies, caused by liquidate or to reduce its range of activity, and, therefore, the month useful life is paid by a straight-line method. change of law of the Russian Federation and/or regulatory obligation shall be repaid in the order established. legal acts on recordkeeping, are reflected in the accounting 70 When carrying out inventory issue for production needs (sale) and reporting in the order, established by the appropriate Accounting reporting index shall be considered significant, appraisal shall be carried out by first-in-first-out (FIFO) method. law and/or by regulatory legal acts on recordkeeping. If if its nondisclosure may impact economic solutions of the When carrying out sale (issue) of goods their cost is written in the above-state documents the order of reflection of the concerned users, taken on the basis of the Company’s reporting off using average cost method. consequences of accounting policy change is not established, information. The amount with ratio to the due data total for then these consequences shall be reflected in the financial the accounting year of not less than five percent shall be In the list of material and production stocks the assets with accounting and reporting retrospectively, excepting the cases recognized material. cost of not less than 20 000 rubles for one unit and with useful when evaluation in monetary terms of such consequences life of 12 months are reflected. regarding the periods, preceding the accounting period, was Cost of intangible assets (excepting intangible assets with carried out with sufficient reliability. indefinite useful life) shall be paid by accrual of depreciation Receipts, other income (sales receipts for goods), receipts of

ENERGY OF LIFE using straight-line method. Within a year of intangible assets performed works (rendering services) shall be acknowledged beneficial use accrual of depreciation is not ceased. upon general completion of works, rendering services, manufacturing products, being reflected in the accounting Write-off of expenses in relation to scientific and research, minus value-added tax. design and experimental and technological works were carried out by a straight-line method within the period over Amount of expenses incurred in relation to key activities which expenses are written off, determined by the Company (full actual production cost) refers in full to the expenses of independently, basing on the expected period of use of obtained the current accounting period. General business expenses results of scientific and research, design and experimental and general production expenses are distributed by type of and technological works, within which the organization may services proportionally to wage base of the manufacturing obtain economical benefits (but no more than for 5 years). personnel. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

AUDIT REPORT ON THE COMPANY’S FINANCIAL STATEMENTS for 2011 ort p re ANNUAL

71 2011 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

INFORMATION ON AUDITOR

At the annual general meeting of shareholders, which "FBK Volga" Limited Liability Company is a member of PKF (four hundred and eighty five thousand two hundred sixty) took place on June 27, 2012, the winner of the competitive International Association since 1997. rubles. selection — LLC "FBK Volga" was appointed the Company’s y” OJSC auditor for 2011. During 2011 LLC "FBK Volga" did not render non-auditing an

mp services. The amount of remuneration for the services of o Choice of audit company for carrying out compulsory audit LLC "FBK Volga" was established by the decision of the C d

i of accounting reporting of the Company based to the results Board of Directors in compliance with the results of r of 2011 fiscal year was carried out according to the results of competition. Remuneration for carrying out independent “G bids in a form of open competitive tender, stipulated by the audit of financial statements of the Company for the period Federal Law on 21.07.2005 №94-FZ "On placing orders for of time from January 01 till December 31, 2011, made in goods, works and services for state and municipal needs". compliance with the Russian Legislation, makes 485 260

Full company name "FBK Volga" Limited Liability Company 72 Abbreviated name "FBK Volga" LLC

Address of the registered office 10 Pr. Yamasheva str., 420080, Kazan, Republic of Tatarstan

Registration number of auditor and audit organizations register records SRO NP No.10202014708 dated from December 04, 2009 "Institute of Professional Auditors"

General audit license No.E002876 Issued: by Ministry of Finance of the Russian Federation Date of issuance: December 10, 2002 Validity period: 10 years. ENERGY OF LIFE Contact detail Correspondence address: 10 Pr. Yamasheva str., 420080, Kazan, Republic of Tatarstan, Tel.: +7 (843) 555-62-44; 543-19-42. E-mail: www.npg.ru. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

4.4. IMPLEMENTATION OF INTERNATIONAL STANDARDS OF FINANCIAL STATEMENTS ort p re For the purpose of submission to shareholders, investors Within the framework of carrying out actions on making coordination of activities on making accounting according and other stakeholders maximum straightforward financial data reporting in compliance with IFRS, the to IFRS, plant of actions is developed, the work on the

information, adequate and measure information about accounting policy of the Company had been developed Company’s asset value is carried out. ANNUAL the Company and its financial status “Grid Company” on Russian Accounting Standards for 2011 similar to the OJSC carried out the work on forming the Company’s requirements of the International Standards of Financial financial statements in compliance with the International Statements and the appropriate department is formed — standards of financial statements for 2011. IFRS group, persons-in-charge are Appointed to provide

73

Switchyardcell OSC 110kV, Switchyard 110 kV, 110/6 kV 110/10kV SS Gorodskaya SS Sidorovka 2011 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

4.5. TARIFF REGULATION y” OJSC an mp o TARIFFS FOR ELECTRIC POWER C Key activities carried out by the Company are d i TRANSMISSION AND PAYMENT r rendering services on electric power transmission

“G FOR TECHNOLOGICAL CONNECTION

The key activities, carried out by the Company — and on technological connections, they are rendering services on electric power transmission and on monopolistic ones, being regulated by the state. technological connections are monopolistic, being regulated by the state. Tariffs for electric power transmission and payment rates for technological connections are approved 74 by the governmental authorized body in the sphere of tariff regulation - State Committee of Republic Tatarstan on Tariffs (SCRTT).

Unit switchboard 110/10 kV SS Gorki 220 kV OL Uzlovaya – TANEKO ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

TARIFFS TO ELECTRIC POWER TRANSMISSION

By Decree of the State Committee of the Republic of In compliance with the decisions of the State Committee of Thus, in 2011 the State Committee of the Republic of Tatarstan on Tariffs issued on 23.12.2010 No.3-13/e the the Republic of Tatarstan on Tariffs, the Company, which is Tatarstan on Tariffs approved Individual tariffs for 60 ort

following uniform (boiler) tariffs were approved for 2011 holder of a “boiler” on rendering electric power transmission, cooperating network enterprises. p

for services on electric power transmission by networks in 2011 made payments with the cooperating network re of grid organizations on the territory of the Republic of enterprises of the region (CNO) based on the established Tatarstan. individual tariffs. ANNUAL

UNIFORM (BOILER) TARIFFS FOR SERVICES ON ELECTRICPOWER TRANSMISSION BY CIRCUITS OF NETWORK ORGANIZATIONS in the territory of RT № Index Unit of Range of voltage without VAT measurement HV MV-I MV-II LV 75 1. Tariff group “population” 1. Flat-rate tariff rub./MW.h. 487,74 487,74 487,74 487,74

2. Tariff group “other consumers” 1. Flat-rate tariff rub./MW.h. 471,72 829,71 1 980,87 2 392,67

1.1 Flat-rate tariff for consumers, receiving electric power and bus bar capacity rub./MW.h. 395,06 395,06 395,06 395,06 2011

2. Binomial tariff

2.1 • rate for maintenance of electric networks rub./MW.h. 295 682,09 422 429,34 1 029 885,04 1 634 891,39

2.2 • rate for maintenance of electric networks for consumers, receiving rub./MW.h. 295 682,09 295 682,09 295 682,09 295 682,09 electric power and bus bar capacity (distribution substations) of generated voltage

2.3 • rate for payment of technological expense rub./MW.h. 76,25 113,01 184,85 440,93 (losses) in electrical networks Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o PAYMENT FOR TECHNOLOGICAL C d i CONNECTION r “G Rates of the charge for technological connections Rates of the charge for technological connections to the Standardized tariff rate for covering expenses for and standardized tariff rates for billing metering for distributive electrical networks of “Grid Company” OJSC: technological connections of power receivers of electric technological connections to the distributive electrical power consumers in relation to the measures, which do networks of the Company are established by the Decree not include construction and reconstruction of electric of the State Committee of Republic Tatarstan on tariffs network facilities.: (SCRTT) on 01.02.2010 No.6-1/m and for 2011 they were 76 not re-considered.

Voltage level Connected Payment of tech. Voltage level Connected Standardized tariff voltage, kW connection, rub./ voltage, kW rate, rub./ kW (without VAT) kW (without VAT) To 30 incl. 8 814 To 30 incl. 367,7

0.23 – 1 kW 30-100 incl. 8 148 0.23 – 1 kW 30-100 incl. 122,6

ENERGY OF LIFE .Above 100 12 766 .Above 100 10,8

To 100 incl. 8 384 To 100 incl. 122,0

6 – 10 kW 100-750 incl. 12 402 6 – 10 kW 100-750 incl. 28,0 Above 750 6 250 Above 750 34,5 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re ANNUAL Standardized tariff rate for covering expenses for Standardized tariff rate for covering expenses for Standardized tariff rate for covering expenses for construction and reconstruction of electric network construction and reconstruction of electric network facilities construction and reconstruction of electric network facilities at technological connection of power receivers at technological connection of power receivers of electric facilities at technological connection of power receivers of electric power consumers in relation to expenses for power consumers in relation to expenses for construction of electric power consumers in relation to expenses for construction and reconstruction of overhead transmission and reconstruction of cable transmission lines by classes construction and reconstruction of substations by classes lines by classes of voltage: of voltage: of voltage: 77 Voltage level Connected Standardized Voltage level Connected Standardized Voltage level Connected Standardized voltage, kW tariff rate per 1 voltage, kW tariff rate per 1 voltage, kW tariff rate per km line, rub./ km line, rub./ each line, rub./ km (without km (without pcs (without VAT) VAT) VAT) To 30 incl. 299 250 To 30 incl. 397 575 To 30 incl. 25 748 2011 0.23 – 1 kW 30-100 incl. 302 082 0.23 – 1 kW 30-100 incl. 409 993 0.23 – 1 kW 30-100 incl. 112 422 .Above 100 302 987 .Above 100 448 803 .Above 100 810 371

To 100 incl. 303 457 To 100 incl. 397 575 To 100 incl. 80 009

6 – 10 kW 100-750 incl. 305 212 6 – 10 kW 100-750 incl. 471 504 6 – 10 kW 100-750 incl. 266 705 Above 750 308 987 Above 750 507 419 Above 750 1 251 710

SOCIAL ort p

RESPONSIBILITY re

5 ANNUAL

The building of the Puppet Theatre completely conforms to its name — ENERGY OF “Ekiyat” or “tale”. The fantastical and bizarre castle-theater boggles the 79 imagination at the first gaze. Gothic style, baroque style, classicism and MAGIC art nouveau are combined in its architecture. Architectural white-stone appearance of turrets, twisted columns, nailheads attract attention, panes are decorated with the bright, colored statuary groups taken from the fold tales.

The interior of “Ekiyat” impresses not less than the exterior: roomy halls with columns, luxurious chandeliers, soft seats similar to thrones for relaxation. In the theater there are two houses with 258 and 100 seats; in each house there is a scene, equipped with stage, lighting and audio equipment. ENERGY OF LIFE

Apart from the theatre in the building “Ekiyat” child center is located, Small Academy of Arts, Children's Art School No.1 and all kinds of hobby groups — it’s a true territory of childhood, where everyone may be charged by the energy of magic!

“Ekiyat” Puppet Theatre Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o Sectoral affiliation determines special value for the Company The root principles of social work and staff management • Continuos dynamic development of Human Resource C d i of human capital asset, which is one of the Company’s are as follows: Management Systems in compliance with strategic and r primary resources. Quality and reliability of services, current Company’s targets on the basis of advanced “G rendered the Company, to a great degree depends on • Intensive character of forming and use of human progressive effective employee incentive programmes professionalism and qualification of the engaged personnel. resources, attaining the highest efficiency of employees, (incentives and non-financial recognition), human The Company pursues focused and consistent policy insurance of high performance work organization, resource optimization and redeployment inside the aimed at guaranteeing progress of labor productivity of organization of safety, continuous professional Company, taking into account set up targets and tasks. its employees, safe working conditions and occupational development; health and safety, formation and maintenance of favorable • Ensuring necessary conditions for effective professional 80 Corporate Landscape for staff development, implementation and personal enhancement of the staff to provide its The major objectives facing the Company managers in of professional potential for solving engineering, business functioning on high level under conditions of a sector the field of Human Resource Management are as follows: and social problems, facing the Company. reforming; • Implementation of social partnership approaches • Provision of the Company with high-skilled and and mutual responsibility of the parties regarding well-motivated employees, craving for fulfilling their representatives of employers and representatives of potential when solving engineering, economic and Sub-station-master 110/6 kV SS employees; social problems facing he Company; Sidorovka • social development of a collective body in the best interests of all the employees aimed at improving their • improvement of the effectiveness returned from quality of life and their family members; development of contributions into the personnel, expressed in

ENERGY OF LIFE system of socio-labor rights and guarantees, forming secured permanent staff development, improvement awareness of corporative membership and Company’s of labor quality, optimal utilization of human capacity, attractiveness; strengthening of unified corporate culture. • Continuous improvement of work with the Company’s veterans and youth to provide staff renewal being combined to its succession, reaching positive staff stability, adherence to traditions. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

5.1. HR POLICY ort p re HR POLICY PRIMARY AREAS Personnel STRUCTURE AND NUMBER

HR policy of “Grid Company” OJSC is aimed at timely As at 31.12.2011 staff strength of the Company made ANNUAL provision of the Company with qualified staff, as well as, 7 012 persons, including; workers — 3 870, experts and arrangement of conditions for efficient development and employees — 2 191, managers — 951. rational use of human resources.

In 2011 fulfillment of the Company’s priority tasks was continued in the field of personnel development, namely: 81 preservation and development of highly skilled full- PERSONEL STRUCTURE, % time personnel; maintenance and improvement of staff competence by efficacious training; development of further 20000 relations with specialized higher and secondary educational 18000 institutions: forming and development of a reserve of 16000 57 56 55 Managerial Human Resources of the Company; maintaining 14000 of attained salary scales; improvement of management 12000 structure and branches in different areas of business 10000 2011 8000 29 30 31 6000 4000 2000 14 14 14 0

2009 2010 2011

Managers Experts and Workers 7 012 persons employees — Number of personnel in the Company as at 31.12.2011. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

STAFF INCREASE, per The Company’s personnel structure has been practically PERSONNEL EDUCATIONAL STATUS AND unchanged for recent 3 years. The category of workers PERSONNEL RESERVE DEVELOPMENT 7 012 makes over 50%, and this is conditioned by the Company’s 7100 specific nature of activities. Apparent growth of the average During 2011 educational status of the Company’s staff 7000 staffing number is determined by gradual expansion of composition was maintained. y” OJSC 6 807 6900 production departments for the purpose of improvement an 6800

mp of the equipment running efficiency and equipment repair, Meanwhile, a stable trend for increase of number of o 6700 6 562 forming of optimal structure of operational servicing of the employees, who are graduates and have a few higher C d

i 6600 Company’s facilities, carrying out works on technological educational diplomas is being formed. r 6500 connection of electric power consumers, electrical supply “G 6400 registering. 6300

2009 2010 2011

82 QUALIFIED COMPOSITION OF EMPLOYEES, %

100 20,22 18,76 17,21 80 18,78 18,24 18,14 Control Engineer of 60 SS 500/220/110/10 kV Kinderi 23,66 22,97 21,65 40

20 37,33 40,03 43,00 ENERGY OF LIFE 0

01.01.2010 01.01.2011 01.01.2012

Higher vocational education and above Secondary vocational education

Primary vocational education Secondary and primary education 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

The Company pays great attention to the issue of staff PARTICIPATION IN COMPETITIONS Personnel SELECTION development, increase of professional competence. The process of staff training and development covers all the For professional development in 2011 representatives of the Average age of the Company’s employees is 40.2. categories of the Company’s employees, being built taking Company successfully participated in different all-Russian into account the Company’s specific nature of activities competitions, including All-Russian Competition “Engineer For carrying out timely provision of the Company’s ort

and being of in-system and continuous character. of the Year – 2011”. subdivisions, located on the territory of the Republic of p

Tatarstan, with professional and competent personnel, re A special place is given to managers’ advanced professional Notified to the Company’s employees judgments of jury of “Grid Company” OJSC pays great attention to orientation training of the Company’s managers and supervisors. competition “Professional Engineer of Russia”, “Engineering of senior high school students. Within the framework of

Educational programs for managers are of applicative Art of the Youth” are evidence of high level of employees’ educational cluster the Company forwards school leavers ANNUAL character, being aimed at acquiring of knowledge and skills, professionalism, which is one of the indicators of the to Kazan State Power Engineering University and Kazan development of professional competence for Company’s effectiveness of the staff relations system in “Grid Company” Energy Technical to study in target groups, participating in business improvement. OJSC. committees work related to diploma defence by graduates and inviting up-and-comers and promising experts to work In 2011 the Company’s managers completed training in the Company. according to the following programs of occupational 83 education:

• by Program: “Master of business administration” — 5 managers; The process of training and • 3 employees successfully completed study by Program of professional re-training in compliance with the State development of personnel covers plan for training managerial staff for establishing the all the categories of the Company’s 2011 national economy of RF on the base of Volga Region Federal University. employees, being built taking into

383 Company’s employees participated in informative and account the specific nature of the counseling seminars and exhibitions in order to study the Company’s activity, being of systemic advanced experience and development prospects of power economy in 2011. and continuous character.

Training of the Company’s workers is aimed at vocational training, advanced training and improvement of professional skills, to obtaining additional jobs, which are required.

Inspection of equipment. 110/35/6 kV SS Chistopol Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

5.2. SOCIAL POLICY

Being social-oriented, the Company implements not only of own funds (calculated basing number of personnel, who Dynamics of number of employees, participating in programs, aimed to increase the level of social protection is not entitled to participate in NPF using the funds of the NGO Program, % y” OJSC of employees, arrangement of conditions for all-round enterprise). 97,1 an 97,5

mp development and corporate solidarity of the employees, 96,5 o 97 but also projects of corporate social responsiveness for The Company pays special attention to the Company C

d 96,5 i the population of the Republic, as well as, goodwill sponsor employees’ and members’ of their families’ recreation and r projects. health improvement organization. In 2011 for the Company’s 96 “G 95,2 employees 2 503 health resort vouchers “Zolotoy Kolos” 95,5 Company’s social policy is implemented through (Sochi) and “Balkysh” health and recreation resort were 95 collective labour agreement, establishing common acquired, recreation of children was organized in children's 94,5 control mechanisms for social-labor relationships and holiday camps “Baytik” and “Lazureviy Bereg” (Gelenzhik). 94 related economic relations between the employees and The Company participates in social real security program the Company, general conditions of remuneration of labour, budgeting of the Republic of Tatarstan. 84 01.01.2010 01.01.2011 01.01.2012 labor guarantees and sector employee benefits together * In % of number of personnel, who are not entitled to participate with ascertaining rights, duties and responsibility of social In compliance with Sectorial Tariff Agreement in 2011 all in NPF at the expense of the enterprise. partnership parties. employer’s obligations for remuneration of labor, working hours and leave policy, as well as, obligations in the sphere In interrelations with its employees the Company of social safeguard have been retained at the previous Dynamics of expenses for employees’ and members’ proceeds from the principles of social partnership and level, aggravation of the earlier achieved levels of social of their families’ recreation and health improve- mutual responsibility of parties, aiming to provide to the safety net is not admitted. ment organization, mln. rubles. maximum observance of labor, social and economic 58,0 rights and interests of employees, to maintain sufficient All aid payments to pensioners-non-workers have been 60 standards of life, creating favorable conditions, promoting made (material aids, payments for anniversary events, 56

ENERGY OF LIFE to uncovering the best professional behavior and labor International Day of Elderly People day, aids for veteran of efficiency upgrading. the Great Patriotic War, Day of Power), as well as allowance 52 48,5 for the period of leave to take care of a child. With the aim of improvement of the social security system 48 for employees the Company funds and together with “The The payments for material incentives and awarding of 44 40,7 National Pension Fund” noncommercial organization employees by industry rewards and state decoration and develops the program of Non-state pension provision material incentives for anniversary dates are carried out. 40 (NGOs). 2009 2010 2011 As for 31.12.2011 97.1% of the Company’s employees are Non-state pension provision program participators, who joined the Non-State Pension Fund (NPF) at the expense 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

5.3. LABOR PROTECTION ort p re LABOR PROTECTION POLICY The basic principles and directions of the Company’s vocational training in all the aspects of labor protection, activity in labor protection field are as follows: related to the work, including contingency plans.

The Company’s labor protection policy is aimed to provide ANNUAL safety and healthy labour conditions, decrease employment • Compliance with the requirements specified by law in • stimulation of service provider (contractors) to accidents and professional diseases. labor protection aspect when delivery and transmission development and use of own safety management of electric power and non-admission of any activity o systems; the detriment of life, health and property of any persons engaged; • Involvement of the Company’s employees into active participation in the processes of organization, 85 • accident prevention and health protection of all the planning, implementation and improvement of safety employees of the enterprise by preventing accidents management system; and professional diseases at the production; • Provision of setting up and effective functioning of work • on-line monitoring and assessment of labor protection safety protection committee (commission). Operational consultation of substation impact to Company’s activity, decision-making aimed operator at permanent improvement of safety management Within the framework of the Company’s program in the filed

system to provide permanent compliance with the of labor protection in 2011 the arrangements of engineering, 2011 changing conditions; organizational and educational type were carried out, which are oriented to injury prevention, and advanced vocational • assurance of compatibility or combination of safety training of personnel. management system with other management systems of the organization; In 2011 for the purpose of implementation of the Law of the Republic of Tatarstan "On Labour Protection in the Republic • continuous improvement of manufacturing processes, of Tatarstan" in all the Company’s branches labor protection oriented to replacement of obsolete equipment to safe Day was carried out, within the framework of which the equipment, to use of technologies of safe equipment arrangements aimed at inspection of working conditions operation and use of the proper personal protective state and labor protection were carried out, which let to equipment for risk mitigation; uncover infringements of Multi-sectoral regulations on labor protection and other regulatory documents, and to • carrying out continuous work on personnel labor take corrective actions. protection training, on its informing and advanced Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o By virtue of the Regulations applicable in the Company, To provide compliance with the requirements of the C d

i in the accounting year in the Company’s branch a review applicable labor law in the Company regular compulsory r contest for the best labor protection management took preliminary medical examinations of newly employed “G place and the following winner were pronounced: workers is carried out, as well as, periodical medical examinations of personnel. Registration of employees, 1st place - Naberezhno-Chelninskie Electric mains engaged in detrimental, hazardous and hard production 2nd place - Privolzhskie Electric mains conditions is carried out. 3rd place - Elabuzhskie Electric mains The Company’s employees together with the persons, 86 In the Company special attention is paid to the activities employed shall pass training and instruction in labour aimed at protecting personnel from harmful and hazardous protection and examination of knowledge in sphere of production factors. requirements to labor protection.

In order to exclude impact of these factors to the employees In compliance with the Functioning Rules and Certification in process of electric installations maintenance the Company Rules of the voluntary certification of management carried out operational tests of individual protective gear: systems “Management Systems Registers” inspection thermal-resistant trench NM-32, thermal-resistant boots of the current Company’s labor protection management SE-81, welder’s clothes TF-43, climbing irons of new system OHSAS-18001-2007 was carried out. According improved modification, and basing the results of these to results of the carried inspection control the Company’s

ENERGY OF LIFE tests a decision on use of these security facilities in the labor protection management system was acknowledged Company’s branches was taken. effective and further effect of Certificate was approved.

3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

5.4. NATURE PROTECTION ACTIVITIES ort p re Working at performance gains and financial indicators, the In 2011 environment-related activity in the Company Use of elements of ecological management system for Company is aware of the effect, rendered by the production was carried out by the following principle directions: achieving targeted and planned ecological indices of

and economic activities to human health and natural “Gris Company JSC Strategy” in the field of environment ANNUAL environment, that is why one of the basic objectives of • Provision of principle execution of the standards and protection”, implementation of ecological program, aimed the Company is to minimize of any negative consequences requirements of the law in the following aspects: at minimizing negative impact to the environment, striving by rational use of natural resources, introduction of state- protection of soils and land resources; protection of for achieving maximum ecologic-economic efficiency from of-the-art technologies, decision-making by taking into water objects and rational use of water resources; introduced actions, personnel orientation to rational use account opinions and wishes of stakeholders. utilization of manufacturing waste; air protection; forest of natural resources brought to positive results. conservation and preservation of biological diversity; 87 Following principles of decrease of negative impact of the Company’s production and economic activities to the • security of united policy in the field of ecological natural environment and principals of rational use of natural management; resources, the Company determined own orientations and plans in sphere of environment-related activity, declared in • Reduction of ecological risks of the Company’s “Strategy of “Grid Company OJSC” in the sphere of protection production activity; of environment”.

• Increase of efficiency of means, used for protection of 2011 Paying significant attention to up-to-date conditions of ambient environment and use of natural resources. successful development of the Company and the necessity of risk management, related to projecting, construction, reconstruction and maintenance of energy facilities, the environmental management system (EMS) was implemented and has been successfully functioning in In the Company the environmental management the Company, which organically fits the general system of corporate governance, being an efficient management system (EMS) was introduced and functions tool for production influencing the ambient environment. successfully, which organically fits the total system of corporate management. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

THE COMPANY COMPLETED THE ACCOUNTING PerIOD WITH THE FOLLOWING ECOLOGICAL INDICES ACHIEVED: Total charge of environmental payments with respect Ecological Indices Unit of Indices Deviation to 2010 increase to 17.7%, which is related to, first of all, measurement charge of above permitted standard payments, as well 2010 2011 2011–2010 as, to change of deflator coefficient from 1.79 in 2010 to 1.93 in 2011. However, if to consider payment charging for y” OJSC Water consumption ths. cub. m 131,6 139,0 7,4 negative impact to the environment without considering an Water discharge tons 127,03 137,3 10,27

mp inflation factor, then in the accounting period actual charge o of ecological charges decreased to 1% compared to 2010. C Gross discharges of tons 38,1 30,3 - 7,8 d i pollutants into outer air r “G Emissions of tons 10,3 10,76 0,46 greenhouse gases

Produced waste volume and tons 15 231,1 28 376,1 13 145,0 consumption volume, including: DYNAMICS OF GROSS EMISSIONS CHANGE, tons

— Recycling in own production 774,2 399,7 - 374,5 88 50 43,5 38,1 Charges for negative impact to ths. rub. 5 805,24 7 054,0 1 248,76 45 40 30,3 environment, including: 35 30 — Standard 5 804,25 6 230,5 426,25 25 — above permitted standard 0,99 823,5 822,51 20 15 Expenses for execution ths. rub. 28 132,5 49 552,6 21 420,1 10 5 of environmental actions 0

2009 2010 2011 ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Reduction of air emission of contaminants compared to TOTAL WATER CONSUMPTION WITH BREADOWN BY SOURCE OF WATER SUPPLY, THS. CUB. M 2010 to 7.808 tons or to 20.5% is conditioned by decrease of number of working hours of metal-working machines 180 160 139,00 and woodworkers, as well as, by decrease of the volume 134,50 131,64 of paint works in the Company’s branches. 140 ort

120 p

On the basis of the Federal Law No.128-FZ "On ratification re 100 80,43 of the Kyoto Protocol to the United Nations Framework 79,20 75,86 80 Convention on Climate Change" issued in 04.11.2004 in the 55,30 55,78 58,57 60

Company registration of greenhouse gas emissions into ANNUAL air is being carried out. Greenhouse gases are emitted at 40 fuel consumption in car internal-combustion engines and 20 from sulphur hexafluoride switches. Moreover, greenhouse 0 gases contribute the greatest effect (from 92 to 95%) into 2009 2010 2011 the total volume of emissions, formed at fuel combustion. Increase of greenhouse gases emission in 2011 to 4.5% is 89 explained by fuel rising consumption owing to renewal of from artesian wells from enterprises total fleet vehicles in the Company’s branches.

Change of the value of total water consumption compared to 2010 to 5.6% is conditioned by increase of water discharge from DYNAMIC OF WASTE VOLUME, USED IN OWN PRODUCTION, other enterprises (municipal water canal) to 4.57 ths. cub. m. UTILIZED AND DELIVERED FOR BURIAL, tons (6.0%) and from artesian wells to 2.79 ths. cubic meters (5.0%). 30 000

25 396,6 2011

Carrying out of repairs works on water supply networks 25 000 affected the total consumed water volume, as well as, carried construction works on reconstruction of catchpits 20 000 and owing to transition of water form the artesian well at 12 474,3 Nizhnekamskaya substation from potable water to industrial 15 000 water for production needs. 10 000 7 320,0 2 579,8 2 238,9 1 982,5 Total production waste generation and disposal increase 5 000 439,5 774,2 399,7 (PWDG) 1.9 times for the accounting period was affected by increase of actual volume of waste production by the 0 Company, which is conditioned by great scope of works 2009 2010 2011 performed on power lines and substations reconstruction together with the administrative office building of the refuse utilization in own waste delivery for utilization waste delivery for burial Company’s management, as well as, increase of volumes production to special organization at the landfill of waste (debris) production, accumulated in pit privy. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o The volume of production and consumption waste, Expenditures for execution environmental actions, aimed The most significant environmental actions, implemented C d i regained in own production in 2011, made 1.4% of total at preventing deleterious effect of the Company’s process by the Company in 2011: r production and consumption waste. Decrease compared facilities to the ambient environment in 2011 made 49 “G to the previous year made 48.4% owing to decrease of 552.62 thousand rubles, and this 76.1% more than in the • implementation of “Program on Functioning and volumes of construction waste, suitable for reclamation previous year. Improvement of the environmental management (breakage of concrete products and concrete products, system of JSC "Grid Company" for 2010-2011”; bitumen and asphalt waste products) and for worked-out circuit-breaker oil. • introduction of environmentally safe technologies — substitution of oil circuit breakers to vacuum circuit 90 breaker;

ECOLOGICAL EFFECT OF ENVIRONMENTAL ACTIONS ACCOMPLISHMENT

Actions Expenses Prevented environmental Ecological effect, tons, ths. rub. % damage ths. rub. ths. cubic meters ENERGY OF LIFE

Protection of soils and land resources 34 772,01 70,2 10 022,42 35,0

Disposal of production and consumption waste 8 053,66 16,3 22 485,1 25 396,65

Rational use of water resources 5 814,02 11,7 798,7 116,86

Atmospheric Air Protection 912,93 1,8 4,26 5,21 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re • construction of grounds for temporary accommodation INDUSTRIAL ECOLOGICAL CONTROL According to the results of industrial ecological control in of processed oil products and production and 2011 there were not revealed excesses of emission limits,

consumption waste; Assessment of conformance of the Company’s production preliminary approved discharges and waste generation ANNUAL and economic activities in 2011 to the requirements of standards and waste disposal limits. • reconstruction of catchpits and local waste treatment environmental protection legislation was carried out in plants (LWT), renewal of LWT filter elements; a form of industrial ecological control in the following directions: • decrease of production waste disposal in the environment; • control of pollutant emissions of stationary sources 91 and mobile source into atmospheric air; • drying and reclamation of worked-out circuit-breaker oils for equipment filing-up in compliance with the • atmospheric air quality control on the border of production procedures; sanitary protection zone;

• reclamation of construction waste in compliance with • control of quality of storm sewage and domestic Vacuum automatic distribution station “Production procedures of “Grid Company OJSC” for wastewater, running efficiency of local waste treatment PBA/TEL SS Sokolka F.10-06 10 kV SS

performance of and improvement and vertical leveling plants (LWTP); 2011 of the site using construction waste; • control of quality of water offtake from underground • installation of protection devices against birds on water supply (artesian wells), weakly measurement transmission lines. of dynamic water level in artesian wells;

In the result of execution of environmental actions in 2011 • control of activities on production and consumption the sum of prevented ecological damage made 33.3 million waste disposal (PCW); rubles, economic benefit of implementation of actions made 9.3 million rubles. • control of land resources state and use.

• maintenance of primary accounting documentation (POD logs — 1, 2, 3, 11, 12, 13 and primary accounting sheets for production and consumption waste). Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital y” OJSC an mp o To perform the liabilities of “Policy of “Grid Company OJSC” the Ministry of Industry and Trade of the Republic C d

i in the field of environment protection” in the section of of Tatarstan from 04.07.2011 No.138-OD for forming r demonstrativeness of technical and economic indices and complex assessment of the level of activities in the “G ecological reports during 2011, the following actions have sphere of the Company’s management. Based on the been carried out: results of monitoring of assessment of level of activities of business entities of RT in the sector of management • participation in “ECOLeader” annual republic competition, for I half-year of 2011, the Company takes 19th position: organized by Ministry of Ecology and Natural Resources of RT and Cabinet of Minister of the Republic of • making and submission to the statistics authorities and 92 Tatarstan, following the results of which the Company other Government executive bodies of annual statistical was announced a laureate among the enterprises of accounting the following forms: 2tp (air), 2-tp (waste), republican status in nomination “For effective economic 2-tp (water economy), 4-OC, 18-KS, 4-LS. management”; • information layout on the Company's external and • participation in 6th Specialized Exhibition internal sites on the system of ecological management, “Ecotechnologies and Equipment of XXI century”; on industrial ecological control, report with results of environmental-related activity; • submission to “Interfax-ERA” rating agency the data on basic aspects of the Company’s activity per 2000, • Publication of materials on functioning of the system

ENERGY OF LIFE 2005-2010 for reflecting in ratings of ecologic-energetic of ecological management and environmental-related efficiency. According to the results of Agency “Interfax- activity of the Company in mass media and electronically ERA”, in 2010 the Company ranks 2nd among enterprises displayed news sources. of the Republic of Tatarstan in the ratings of fundamental efficiency of 150 largest companies in the real economy of Russia;

Laureate diploma • carrying out a level assessment of ecological “Grid Company” Open Joint-Stock Company, management system in compliance with the city of Kazan recommended practices, approved by the Order of 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re To perform target value in meeting by outside organizations, To check and assess the ecological management system approved compliance of development, improvement drawn for performance of works for the Company, the in term of compatibility to the requirements of the National of the applicable ecological management system with

requirements of the applicable environmental law, Standard the Russian Federation GOST R ISO 14001-2007 the requirements of the National Standard the Russian ANNUAL sanitation-and-epidemiological standards and rules the “Systems of Ecological Management. Requirements Federation GOST R ISO 14001-2007; therefore the status enterprise standard STP 14001.4.4.6-01-01-2010 (17/398) and Guidelines for application in the accounting year in of the valid Ecological Certificate of Compliance, issued “Management of Interrelations with outside (contracting compliance with the Internal Audit Program, the Company’s to the Company by accrediting body of the compulsory and subcontracting) organizations with the following basic team of auditors carried out 21 internal audits in 95 certification system on ecological requirements of the objectives: structural divisions of the Company branches and in the Ministry of Natural resources and ecology, is preserved. Department, which permitted to obtain complete and 93 • Uniform requirements determination set up to unbiased information on functioning and productivity of Based on the above stated, it may safely be said that the contracting organizations, carrying out the activities the Company’s ecological management system. Company is aimed to permanently improve the ecological for the Company in the field of compliance with the management system to increase ecological efficiency of environmental requirements; To remove nonconformities, revealed in the result of the production activity and rational management of natural audits, the head of the audited divisions developed plans resources. • organizing the activities of contracting organizations, of actions to make corrections, aimed to remove the caused carrying out the activities at the Company’s sites within nonconformities and to prevent their occurrence in the

the framework of the environmental law. future. 2011

In compliance with the requirements of this standard, In September 2011 independent experts of certification body contract agreement standard forms have been amended “IPEKO” LLC (city of Moscow) carried out surveillance audit in the section of liabilities of contracting organizations on and assessment of the Company’s ecological management compliance with the basic requirements to disposal with system against compliance with the requirements of the production and consumption waste, produced as a results National Standard the Russian Federation GOST R ISO 14001- of carried works, as well as, accomplishment of applicable 2007 “Systems of Ecological Management. Requirements standards, rules and requirements. and Guidelines for application”. As a result, audit team

Productive ort p

Activity re

6 ANNUAL

It is not a secret that the main treasure of the mineral wealth of ENERGY OF Tatarstan is oil. The most major component of the development 95 strategy for oil and gas complex of the Republic is the Project under SECURITY the leadership of “TANEKO” OJSC is a complex of petroleum refineries and petroleum chemical plants, designed for annual processing of 7 million tons of oil and producing wide range of oil and gas products.

Modern enterprises Fuel & Energy Complex is impossible without innovation projecting solutions and smooth operation of electrical annex. Security protection and ecological orientation of the Complex (introduction of the best available technologies, rational use of natural and energy resources — one of the corporate principles of the enterprise) demanded high level of project design works and use ENERGY OF LIFE of state-of-the-art technologies and materials, permitting enhance operating reliability of electrical substations. Accepted technological solutions as to electrical annex of the complex of petroleum refineries and petroleum chemical plants, its compliance with the applicable standards and rules, and quality of service of electric grids demonstrated that we can handle the international standards of the branch.

220/110/6 kV SS Nizhnekamskaya Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.1. TRANSMISSION AND DISTRIBUTION OF ELECTRICAL ENERGY y” OJSC an mp o According to the results of the Company’s activity for 2011 Commodity output in the result of services on transmission Value of electric energy, acquired by the Company for the C d

i scope of services on transmission of electrical energy to of electrical energy made 16.7 billion rubles. purpose of restoring losses in electric grids made 1.58 billion r consumers of the Republic of Tatarstan made 21.7 billion kWh, in cash equivalent — 2.3 billion rubles. “G kWh, which compared to 2010 to 0.8 billion kWh more or Electricity consumption to electrical grids of the Company more to 3.82%. in 2011 made 19.5 billion kilowatt-hour. Herewith, 17.9 billion kWh were delivered to the grids of energy-consumers and related network organizations by boundary bus.

96 DYNAMICS OF SCOPE OF SERVICES ON ELECTRIC ENERY TRANSMISSIN ACCORDING RESULTS Forper 2011 TO “KOTEL-SETI” SCHEME IN 2010-2011

2010, billion kWh 2011, billion kWh Change (till 2010) Delivery to grid billion Productive supply Losses kilowatt-hour billion kWh billion kWh % billion kWh % 19 444 19 528 18 517 19 058 19 484 20 000 17 32920,9 17 586 21,7 0,8 3,82 17 90019 484 17 900 1 584 8,13 16 756 17 368

15 000 TOTAL ENERGY TRANSMISSION, LINE LOSS DYNAMICS, 19 444 19 528 18 517 19 058 19 484

ENERGY OF LIFE MILLION KILOWATT-HOUR 20 000 17 329 17 586 17 900 10 000 16 756 17 368

15 000 5 000 2 115 1 942 1 761 1 690 1 584 10 000 0 5 000 2007 2008 2009 2010 2 115 2011 1 942 1 761 1 690 1 584

supply to grid productive supply losses in grid 0

2007 2008 2009 2010 2011

supply to grid productive supply losses in grid 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Accounting losses of electric power cumulatively by the In distributive network 10-0.4 kV accounting losses for 2011 Company made 8.13% of intake to the grid at the rated made 9.88% at normative standard of 10.44%. normative standard of 10.05%. Economy against normative standard made 374 million kWh. Compared to 2010 Economy against normative standard made 55.4 million accounting losses decreased to 144 million kWh or 8.4% kWh. Compared to 2010 accounting losses by distributive ort

(losses for 2010 are presented to grid output of 2011). network decreased to 26.4 million kWh. p re

PerFORMANCE OF NORMS OF LOSSES OF ELECTRIC POWER BY DISTRIBUTIVE NETWORK LOSSES OF ELECTRIC POWER BY DISTRIBUTIVE NETWORK10-0.4 Kv ANNUAL 10-0.4 Kv IN 2011 IN 2009-2011

Normative standard of Fact for 2011 Economy, 2009 2010 2011 Change, Change, losses forper 2011 million kWh (till 2009) (till 2009) mln. % mln. % mln. % million % million % kW.h kW.h kW.h kWh kWh 97 1 027 10,44 972 9,88 55,4 1 043 10,86 980 10,15 972 9,88 68,9* 26,4**

* when compared of values of power energy loss of 2009 and 2010 the values of energy supply to electric grid for 2010 are given. 1 361 ** when compared of values of power energy loss of 2011 and 2010 the values of energy supply to electric grid for 2011 are given. 1 183 1 057 980 1 027

20 000 1 044 1 060 1 043 2011 976 972 DYNAMICS OF ELECTRIC ENERGY LOSSES IN DISTRIBUTIVE 1 361 GRID 10-04 kV, million kWh 15 000 1 183 1 057 980 1 027 20 000 1 044 1 060 1 043 976 972 10 000 15 000

5 000 10 000

0 5 000 2007 2008 2009 2010 2011

normative losses actual losses 0 2007 2008 2009 2010 2011

normative losses actual losses Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.2. ENERGY-SAVING AND ENERGY PerFORMANCE y” OJSC an mp o In compliance with the requirements of Federal Law № 261- Reduction of technical losses: cut-off in light-load Reduction of energy losses is achieved also at the expense of C d

i FZ on 23.11.2009 "On energy saving and energy efficiency conditions of transformers at substations with two or the performed work on new construction and reconstruction, r improvements and on Amendments to Certain Legislative more transformers; optimization of loop-up points with as well as, at the expense of heavy overhaul and routine “G Acts of the Russian Federation", in the Company the Energy double-end feed; optimization of service voltage in the maintenance of transmission facilities of the Company. Saving Program is being implemented, including the steps radial network main substations; cut-off of transformers aimed to reduce losses in electrical networks, steps on with seasonal loads, phase load niveling in electrical grids; Within the framework of implementation of the measures modernization of energy accounting facilities and electric on reduction of energy losses in the Company’s electrical power metering system, as well as, actions on improvement Reduction of commercial losses: revelation of facts of grids during 2011 over 6 thousand meters were replaced, of energy supply metering system. freelance consumption of electric power by consumers; 1 553 checking inspection were carried out to reveal cases of 98 electric power consumption without metering, investigation Reduction of losses in electrical networks of the Company Improvement of energy accounting: set-up of metering of 235 thousand metering devices of legal entities was was attained at the expense of execution of the plan of devices in interface region: replacement of electric power carried out. administrative and technical measures on the following metering devices to multimeters with power shape; principal directions: introduction of Remote Sensing; introduction of automated information-measuring system of commercial electric power accounting (AMR) and Automated system of technical metering (ASTM).

ENERGY OF LIFE KEY ACTIVITIES AIMED AT REDUCING LOSS For 2011 Description of activity Reduction of losses, ths.kW-h Activities aimed to decrease technical losses Supergrid system Execution of alive works at overhead lines 500-220 kV 946,92 Optimization of loop-up points 6-35 kV and 35-110 kV with double-end feed 3 275,34 Cut-off in light-load conditions of transformers at substations with two or more 8 229,21 transformers Optimization of service voltage in the radial network main substations 2 085,16 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Description of activity Reduction of losses, ths.kW-h RUNNING MAINTENANCE OF METERING GAGES Reduction of power consumption for own needs at SS 110-500 kV 717,40 AND ELECTRIC POWER METERING SYSTEMS, METROLOGICAL SUPerVISION Implementation of non-used automatic voltage control Devices (AVC) of substation 501,65 transformers To maintain metering gages and electric power metering

Power distribution network ort systems in proper state the full-scale running maintenance p

Cut-off in light-load conditions of transformers at transformer substations with two 559,59 activities and metrological supervision measures were re or more transformers carried out in 2011. Cut-off of seasonal load transformers 587,38

In process of metering gage maintenance, for instance, ANNUAL Phase load niveling in electrical grids 0.38 kV 193,64 replacement of 11 871 electric power meters and 24 935 Optimization of loop-up points 6-35 kV 726,45 instrument current transformers, 0.4 kV was carried out. Herewith, the priority place is given to installation of distant Replacement of OHL subbranch 0.38 kV to buildings by self-supporting insulated wire 27,52 reading meters, if in 2010 share of such metering devices Replacement of overcharge supply transformers, 6-10 kV 8,57 made 25%, in 2011 — 37% of the total number of replaced devices. Replacement of underloaded supply transformers, 6-10 kV 35,35 99 Replacement of wires at flow gate OHL 6-10 kV 387,50 Maintenance of the equipment of automated information- Replacement of wires at flow gate OHL 0.4 kV (self-supporting insulated wire) 171,15 measuring system of commercial electric power accounting TOTAL: 18 452,83 (AMR) and Automated system of technical metering (ASTM) was carried out according to the approved schedules. Activities aimed to reduce of commercial losses Power distribution network Maintenance works in automated information-measuring

system of commercial electric power accounting (AMR) 2011 Increase of scope of services rendered on electric power delivery at the expense of 6 566,62 were carried out at 88 Company’s substation, and in revelation of unmetered consumption of electric power by subscribers Automated system of technical metering (ASTM) at 6 519 TOTAL: 6 566,62 facilities of transmission facilities. Activities on improvement of electric power metering . Replacement of electric power metering devices to multimeters with distant reading 239,30 meters (PMC 2050M system) Replacement of electric power metering devices to multimeters with distant reading 1 786,50 meters (metering devices with GSM modem) Other activities 1 321,47 TOTAL: 3 347,27 Total by the key activities: 28 366,72 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

The following was carried out within the framework of COMPOSITE DATA ON AUTOMATION OF ENERGY COUNTING maintenance of metering gages: 35 kV and over substation 6 (10) kV DP and TS

• checking of 361 measuring communications of AMR; 177 pieces 15 484 pieces • checking of 1 965 metering current transformers at y” OJSC 47% 196 pieces 91% fiscal metering points of electric power; an 53%

mp • metrological certification of 2 859 measuring

o 1 461 pieces communications of EMS OIC; C d

i • checking of 5 807 energy management systems, subject 9% r to state metrological control and supervision; “G • calibration of 22 653 units of technological metering devices, subject to in-house monitoring and supervision; • repair of 5 767 units of metering devices .

Switched into Unswitched to Switched into Unswitched into ASTM 100 AMR and ASTM AMR and ASTM ASTM

DEVELOPMENT OF AUTOMATED ELECTRIC Share of automation of metering at 35-kV and over METROLOGICAL SUPerVISON OF ELECTRIC POWER METERING SYSTEM substations is 53%, at in 6-10/0.4 kV distributive network POWER FISCAL AND TECHNICAL METERING — about 9%. SYSTEMS The activities on improvement of electric power registration at the Company’s substation and in the distributive electric Within the framework of building corporate AMR of electric In compliance with Federal Law "On ensuring the unity network 6-10/0.4 kV are being continued. The efforts are power metering assemblage and debugging of Information of measurements", Regulations for Operation and some

ENERGY OF LIFE directed to malconformation decrease on automation Center of “Grid Company” was carried out. First stage of other requirements documents, on metrology of all the between the supergrid system and power distribution adjustment of AMR top level program of electric power metering devices, used for business accounting, are network. metering was performed in the branches and Departments subject to inspection, and technological units are subject by “Pyramid” Project Agency IMS to comply with the to calibration. At the end of 2011 AMR included over 22 thousand metering Company’s requirements. points. For fiscal metering of electric power only those types . of electric power metering devices are used, which are approved and enlisted into the State Register. Metering are carried out in compliance with the established Procedures of measurements (PM).

3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

This law requirement concerns AMR, instrument current RUN-UP OF STATE-OF-THE-ART METERING INTERACTION TO ELECTRIC POWER CONSUMERS transformers and voltage transformers, measuring DEVICES AND TRACKERS communication to the full, which are operated within the To execute law with regard to electric power registration composition of complex of energy and voltage accounting. In process of selection of new metering units in the Company the investigation of the engineering status of consumers’ Owing to this in 2011 a set of activities on metrological test run practice recommended itself well. For instance, calculation devices — legal entities or individuals — was ort

supervision of electricity transmission and distribution assessment of functional characteristics and working ability carried out against their compliance with the requirements p

was carried out, namely: of metering device CE 304, produced by “Energomera” CJSC of reference documents. re was carried out. 1. Periodic accrediting of metrological agencies of the In 2011 there was carried out a calibration of about 238

Company branches for carrying out calibration works. In the branches of IEC and NchES multi-operated thousand metering devices at gauge checks in consumers’ ANNUAL transducers ENIP-2 produced by “Energoservice” points of delivery for consumers — legal entities, as well 2. Periodic personnel certification of metrological agencies Engineering Center CJSC were probe-tested. Based on the as, 1 mln. 146 ths. metering devices at points of delivery of the Company branches for carrying out metering results of the work 9 substations of NchES were quipped for consumers — individuals — were carried out. device calibration works. by transducers ENIP-2 as primary elements of telecontrol and electrically measuring instruments. In compliance with the Federal Law No.107-FZ "On the 3. Technical re-equipment of metrological agencies of Calculation of Time" from 07.08.2011, in 2001 on the territory 101 the Company branches by state-of-the-art standard Moreover, on the base of Buinsk RES of Buinskie Electric of RT about 13.5 thousand metering devices were re- devices and units. mains a second stage of testing of user station “Mikron NN- programmed, out of them by the employees of our Company M.11x” produced by “NNPO named after M.V.Frunze” OJSC — 8.6 thousand electric power metering devices. 4. Technical re-equipment of the Company’s substations was carried out, which permitted to determine location of by up-to-date digital switchboard instruments. operating personnel, fix its route on the map. For cases In compliance with the Federal Law No.261-FZ from of a threat to life or health there is opportunity to activate 23.11.2009 “On energy saving and increasing energy an alarm button. efficiency and on Amendments to Certain Legislative Acts

. of the Russian Federation", consumers were rendered 2011 chargeable services on programming, installations, replacement ,acceptance and removal of metering devices. For 2011 over 18 thousand consumers’ applications were performed. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.3. INTERACTION WITH THE COOPerATING NETWORK ORGANIZATIONS y” OJSC an mp o Beginning from 2009 the Company, being a holder of The cooperating network organizations delivered electric C d

i a “boiler” sets up contracts with cooperating network power in the amount of 3.9 billion kWh. r organizations for rendering services on power transmission. “G In 2011 55 agreements were concluded.

The Company’s expenses for payment for services of cooperating network organizations in 2011 made 1 163.9 million rubles. Description Period of time 102 2009 (since 01/05) 2010 2011 Number of concluded agreements in CNO, pcs. 56 58 55 Electric energy, delivered to consumers, Mwh 2 202 725,59 3 654 320,02 3 896 309,21 Payment of services 738 153,21 960 265,89 1 163 889,78 110/10 kV SS Rendered, ths. rub. Gorodskaya ENERGY OF LIFE

Cable manufacturing plants 110/6 kV SS Sovetskaya 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

DISTRIBUTION OF SCOPE OF SERVICES OF CNO

2010 2011

1 509 755 1 715 051,75 ort

Mwh Mwh p

41,31% 44% re

693 163 662 859.05 62 515 Mwh Mwh

Mwh 18,97% 17% ANNUAL 1,71%

429 848 11,77% 523 503,18 13,5% Mwh Mwh

1,95% 103 11,7% 1,6% 11,6% 71 160 63 520,13 Mwh 1,67% 427 447 Mwh 1,7% 452 514,44 1,73% Mwh Mwh 61 163 64 239,06 1,7% 3,34% TOTAL Mwh 5,85% TOTAL Mwh 3,3% 5,6% 3 896 309,21 63 354 3 654 320 Mwh 67 157,67 Mwh Mwh 122 135 213 780 Mwh 128 934,40 218 529,53

Mwh 2011 Mwh Mwh Mwh

“KAMAZ-Energo” LLC “Electric Networks Enterprise-NK" LLC “Khimzavod” named aſter L.Y.Karpov OJSC % Share of total scope • • • of services rendered “Tatneſt” OJSC named aſter V.D.Shashin Gorky Railway — branch of ”RZD” OJSC “Kazankompressormash” OJSC • • • Mwh Scope of rendered • “Nizhekamsknefekhim” OJSC • KAPO. Gorbunov, Inc. OJSC • “Kazanorgsintez” OJSC services • Others Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.4. TECHNOLOGICAL CONNECTION y” OJSC an mp o During 2011 16 546 applications for technological connection DYNAMICS OF NUMBER OF SUBMITTED AND EXECUTED APPLICATIONS C d

i of applicants’ power receiver to the Company’s electrical FOR TECHNOLOGICAL CONNECTIONS, pcs. r networks were accepted of total capacity equal to 801 “G 082 Megawatt. Compared to 2010 number of applications 18 000 16 546 submitted increased to 14%. 15 089 14 568 15 000 13 026 13 313 For 2011 15 089 agreements for rendering technological 11 402 connections for total capacity of 406 781 Megawatt, including 12 000 10 206 9 043 two large industrial facilities: JSC "Russian Railways" — 15.3 8 947 104 8 119 7 953 Megawatt and “Ammoniy” JSC — 14 Megawatt. 7 674 9 000 6 554 5 514 During 2011 there were concluded 12 094 agreements, with 6 000 individuals, and 2 995 agreements were concluded with 2 766 legal entities. In 2011 number of concluded agreements for 3 000 rendering technological connections increased compared to 2010 to 16%. 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 During the year 13 313 agreements were executed (17% Submitted applications Set up agreements Executed agreements more compared to 2010), among them — 11 194 agreements

ENERGY OF LIFE were concluded with individuals, and 2 119 — agreements were concluded with legal entities, total connected power made 321.8 Megawatt. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re DYNAMICS OF NUMBER OF SUBMITTED AND EXECUTED APPLICATIONS FOR TECHNOLOGICAL CONNECTIONS, Megawatt ANNUAL 1 200 In 2011 124 projects passed the performance specifications 1 062,568 reconciliation procedure with transmission system operator 1 000 within the framework of pre-contractual activities for the 801,082 total capacity of 1 596.4 Megawatt, including such significant 684,900 800 for the Republic of Tatarstan facilities, like “TANEKO” OJSC — 87.6 Megawatt (main substation SS 550 kV Elabuga), 321,758 105 600 “Ammoniy” OJSC — 14 Megawatt, “RESK-Silikon” OJSC — 379,250 406,781 240,520 310,630 11 Megawatt, branch of “Generating Company” JSC Kazan 349,260 304,260 188,530 400 249,650 CHPS-2 — 220 Megawatt, “Tatnefteotdacha,” JSC — 880 kW. 54,070 69,490 200 25,580

0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2011 Submitted Set up Executed applications agreements agreements Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.5. CHARACTERISTICS AND TECHNICAL STATE OF THE COMPANY’S ELECTRICAL SUPPLY NETWORK ASSETS y” OJSC an mp o Distributive network transmission facilities are in ownership C Basic technical characteristics d

i of the Company together with transmission networks, r including facilities, matching criteria of reference to the Total length of overhead transmission lines, including: 61 646,2 “G Unified National (all-Russian) electrical power network. . OHL 35-500 kV, km 9 992,2

OHL 04.6 (10) KV, km 51 654

Total length of cable connections, km, including: 9 309 CC 35-110 kV, km 120 106 CC 04.6 (10) KV, km 9 189

Total number of 35-500 kV substations, pcs. 373

Specified transformer capacity of 35-500 kV substations, MVA 16 356,67

Total number of TS (S&T, DS), pcs. 17 130

Specified transformer capacity of 0.4, 6(10) kV substations, MVA 5 672,2 ENERGY OF LIFE

HIGH-VOLTAGE LINES AND SUBSTATIONS Voltage level Right-off length , Change till 2010, Length by electric Change till 2010, km km circuits, km km Total length of 35-500 kV OHL right-of-way, owned by the 500-kV OHL 629,2 - 629,2 - Company is 9 992.2 km, electric circuits is 12 265.7 km. 220-kV OHL 1 280,3 + 13,4 1 514,1 - 8,8 Compared to 2010 total length of 35-500 kV OHL changed 110-kV OHL 4 698,6 - 8,8 6 475,8 - 18,9 insignificantly. 35-kV OHL 3 384,1 + 0,1 3 646,6 + 1,2 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

Right-off way length ratio of KV lines by levels HIGH-VOLTAGE OVERHEAD POWER TRANSMISSION LINES Right-off way of voltage ADZ BDZ BuDZ EDZ KDZ NkDZ NchDZ PDZ ChDZ

500-kV OHL 200,60 - - - 158,13 270,48 - - - 4 698,6 km

220-kV OHL 184,84 102,70 219,70 47,52 46,66 300,01 0,00 263,40 116,12 ort

1 280,3 km 47% p

110-kV OHL 417,40 630,05 652,20 836,45 156,20 515,73 109,40 766,50 614,70 re 13% 629,21 km 35-kV OHL 875,70 463,45 345,90 212,80 4,20 357,11 - 448,10 676,82 6%

Total 1678,54 1195,57 1217,8 1096,77 365,19 1443,33 109,4 1478 1407,64 ANNUAL

34% 3 384,1 km HIGH-VOLTAGE CABLE CONNECTIONS, SERVED BY THE COMPANY Branches km ADZ BDZ BuDZ EDZ KDZ NkDZ NchDZ PDZ ChDZ 107 110-kV CC - - - 1,43 39,38 - 68,77 1,30 -

500-kV OHL 220-kV OHL 110-kV OHL 35-kV OHL 35-kV CC ------6,70 2,14

Total - - - 1,43 39,38 - 68,77 8,00 2,14

Total lenth of 35-110 CC, owned by the Company is 119.72 km, HIGH-VOLTAGE SUBSTATIONS, SERVED BY THE COMPANY Branches 2011 out of them 35-kV CC — 8.84 km, 110-kV CC — 110.88 km. ADZ BDZ BuDZ EDZ KDZ NkDZ NchDZ PDZ ChDZ Total Total number of 35-500 kV substaitons, operated by the 35-kV SS 30 21 14 11 0 17 1 18 23 135 Company in 2011 did not change. 110-kV SS 18 28 27 35 25 25 12 33 19 222 737 power transformer are running (AT) at 35-500 kV SS of specified capacity of 16 356.7 MBA. 220-kV SS 4 1 1 1 2 2 0 2 1 14 500-kV SS 0 1 0 0 1 0 0 0 0 2 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

Maintenance is one of the Company’s key activities to HIGH-VOLTAGE SUBSTATIONS, OPerATED BY THE COMPANY support electric networks in the state of operability. Voltage level of substation 35 kV 110 kV 220 kV 500 kV Total In compliance with regulations for technical maintenance as of 01.01.2011 and “Rules of the organization of maintenance and repair.. y” OJSC (SO 34.04.181-2003)” to provide uninterruptible electric power Total number of substations 134 223 14 2 373 an

mp supply for consumers the Company’s branches carry out

o Capacity, MVA 1 027,2 7 374,5 4 779,5 3 109,0 16 290,2 permanent activities on electric network maintenance. C d i as of 01.01.2012 r Maintenance works on OHL and substation equipment of “G Total number of substations 135 222 14 2 373 35-500-kV substations carried out in 2011 in the Company’s branches in compliance with maintenance work schedule. Capacity, MVA 1 032,7 7 415,5 4 799,5 3 109,0 16 356,7

All the scheduled operations, planned in 2011 were completely performed. Total amount of expenses for maintenance of 35-500 kV OHL and 35-500-kV substation 108 equipment made in 2011 220.158 million rubles (in 2010 — • malfunction diagnostic of stick-pedestal insulators Key maintenance activities for 35-500 kV OHL: 182.7 mln.rub.). open-type-bus-and-switch arrangement 110-500 kV by acoustic method in the amount of 2230 pieces; • OHL lane clearance carried out from DKR at the total Key maintenance activities at 35-500-kV substation: • investigation of earthing ring status at 46 substations, area of 555.7 hectares; recovery of earthing ring, investigation of electronic • Grass cutting on 126 ha SS, chemical treatment by environment at 41 substation, recovery of earthing • 10002 signs and posters are recovered; herbicides at open-type-bus-and-switch arrangement ring at 5 substations; of 53 SS was carried out; • 615 supports alignment were carried out. • integrated survey of 27 power transformers; • Anti-corrosion treatment of reinforced concrete structure • The works on status checkup of 1012 reinforced concrete

ENERGY OF LIFE at 7SS; • diagnostic operation by level of partial charges by DKCR-2 poles and attachments were executed; at 72 power transformers, at 241 measuring transformers • flame-retardant treatment of 9000 sq.m. of cable atSS ; and 64 coupling capacitance; • Inspection of corrosion-resistant coating of 645 metal pole and cross bars was carried out; • thermo visional inspection at 35-500 kV SS in the • acoustic investigation of porcellaneous envelopes of 24 amount of 175 and at 35-500 kV OHL of total length switches VMT-110 and VMT-22 kV. • Technical status of 3245 bearing building parts and equal to 1464.74 km — in the result of investigation 376 foundations of 35-kV OHL and above was investigated. equipment-damaging conditions were found at substation and 22 equipment-damaging conditions at OHL; 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

In 2011 the activities on introduction of “Albatros” expert and To secure reliable operation of switching devices in 2011 at diagnostics and information system (EDIS) were continued, the substations 19 110-kV sulphur hexafluoride switches which permitted to systemize the work on diagnostics of oil- were put into operation, two 35-kV sulphur hexafluoride immersed high-voltage equipment and promoted to reveal switches and 1 vacuum circuit breaker and 202 vacuum defects of high-voltage equipment and to take preventive circuit breakers of 6-10 kV voltage were put into operation. ort

measures on their removal at the early stage. p re ANNUAL

POWER DISTRIBUTON NETWORKS for 01.01.2008 for 01.01.2009 for 01.01.2010 for 01.01.2011 for 01.01.2012

In 2011 insignificant change of transmission facilities 6(10) kV OHL, km* 23 807 23 829 23 693 23 717 23 353 volumes of diverse class of voltage, owned by the Company, 0.4 kV OHL, km* 27 861 27 903 27 861 28 056 28 301 occurred. 109 6(10) kV CL, km* 3 638 3 703 3 876 4 173 4 263 Number of 0.38-kV OHL using self-supporting insulated 0.4-kV CK, km* 4 579 4 617 4 688 4 792 4 926 wire (SSIW) at present make 15.61% (4 419 km) of the total amount of 0.38-kV OHL (28 301 km). TS (CTS, DP), pcs. 16 531 16 659 16 695 16 935 17 130

* right-of-way 2011 POWER DISTRIBUTON NETWORKS, SERVED BY THE COMPANY Branches

ADZ BDZ BuDZ EDZ KDZ NkDZ NchDZ PDZ ChDZ

6-10/0.4 TS, Kv 2 000 1 467 2 081 2 165 1 768 2 049 591 2 600 2 221

DP, pcs. 8 11 2 4 91 16 34 21 1

6(10) kV OHL, km* 2 055,7 2 509,4 3 810,5 3 705,9 324,6 2 959,6 76,6 4 002,9 3 908,3

0.4 kV OHL, km* 3 303,2 3 734 3 855,9 4 055,7 1 627 2 858,4 132,8 4 654,8 4 078,7

6(10) CL kV, km 285,1 132,9 49,4 190,8 1 894,2 394,9 974,5 252,9 88,3

0.4 CL kV, km 310,4 215,6 19,6 316,8 1 349,5 1 371,7 1 131,9 143,5 67,1

* right-of-way Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

CHANGE OF VOLUME OF THE COMPANY’S ELECTRICAL DISTRIBUTION NETWORK

km km 23 829 km y” OJSC 24 000 28 400 28 301 4 400 4 263

an 23 807 23 717 4 173

mp 23 693 4 200 o 23 800 28 200 C

d 3 876 i 28 056 4 000 r 23 600 27 903 3 703

“G 28 000 27 861 27 861 3 800 3 638 23 400 23 353 3 600 27 800 23 200 3 400

23 100 27 600 3 200 2007 2008 2009 2010 2011 110 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 OHL-0,4 kV OHL-6 (10) kV CL-6 (10) kV

pcs. km 17 130 5 000 4 926 17 200 16 935 4 792 17 000 16 695 4 800 ENERGY OF LIFE 4 688 16 800 16 659 4 617 16 531 4 579 16 600 4 600 16 400

4 400 16 200 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

CL-0,4 kV TSS (CTSS, DS) 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

MAINTENANCE OF DISTRIBUTION STATIONS KEY ACTIVITIES ON MAINTENANCE OF POWER DISTRIBUTION NETWROKS Description of activity Actual volume Expenses (ths. rub.) To maintain power distribution networks within interrepair time the Company’s branches carry out maintenance works OHL right-of-way clearing (hec.) 1 015,42 86 267,20

Recovery of railway lead-in 1 4313 57 334,81 ort

In 2011 action plan on power distribution networks p

maintenance upgrade was implemented, which included Covering CL by fireproof paste (sq.m.) 9 632 8 592,80 re maintenance works, performed by a contractor for the total amount of 165 million rubles. The Company’s branches Maintenance of lead-in distributors (pcs.) 3 270 5 879,03 executed maintenance works for the amount of 94.6 million Maintenance of transformer substations (TS) (pcs.) 74 1 035,88 ANNUAL rubles using own resources. Maintenance of cable lines (CL) (tables) 596 339,78 In 2011 on OHL-0.38-10kV significant scope of right-of-way Renewal of OHL numbering (tables) 88 200 7 412,10 works were performed (in 2011 on 1 015 hectares, in 2010 on 185.3 hectares). Renewal of TS numbering (tables) 5 945 281,74

Other services of outside organizations 177 2 029,00 111 In 2011 equipment heat monitoring of power distribution under agreements networks were carried out using 7 thermal imagers and 55 pyrometer groups was carried out. Such diagnostics permits to access the current technical condition of the elements, to reveal and remove defects on overhead lines and TS (transformer substation) at the earliest stage. Over 3 thousand of power distribution network facilities were investigated. Using of such state-of-the-art methods RELAYING AND AUTOMATIC EQUIPMENT 2011 of diagnostics even minor failures are revealed, which subsequently may entail more serious current failures, As to 01.01.2012 32 759 main unit protection equipments Thus, total number of main unit protection equipments and this permits the Company’s experts to exclude any were installed on the Company’s 6÷500 kV power electric make 50 727 units. Rise of number of main unit protection possibility of contingency. grids and automatic equipment (including 26 203 main unit equipments for 2011 made 2 030 units, taking into protection equipments, 6 300 logic units, 256 Emergency consideration other relay ladder logic systems. control device power units (UPAE)). Rise of number of main unit protection equipments for 2011 made 1 514 pieces. In addition to the main unit protection equipments at the Company’s facilities 17 968 pieces of additional units are oforated (other relay ladder logic systems). Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

STRUCTURE OF RELAY PROTECTION AND AUTOMATION GROWTH DYNAMICS OF NUMBER OF MICROPROCESSOR TERMINALS OF RELAY PROTECTION AND AUTOMATION AT THE COMPANY’S FACILITIES

12 907 35 851 3 500 3141 y” OJSC

an 25,45% 70,67% 3 000

mp 2437 o 1 969 2 500 C 2230 d i 3,88% r 2 000 “G 1406 1 500 1046 1131 Total 50 727 1 000 594 454 470 258 312 500 224 112 electromechanical % % of total number of devices 0 units 2006 2007 2008 2009 2010 2011 microelectronic devices pcs. Total number of RP&A Number of microprocessor terminals at 6-10-35 kV connections microprocessor units Number of microprocessor terminals at 110-500 kV connections of RP&A ENERGY OF LIFE

At reconstruction of the current units of PRA and new During 2011 units of PRA at the Company’s facilities (subject activation (correct operation percent), incorrect activation construction of substations in 2011 preference was given to registration and assessment according to the applicable happened 37 times (percent of incorrect operation made to units of PRA on microprocessor base. Instructions for registration and assessment of relay 0.4%), including 12 nuisance tripping, 14 cases of overaged protection and automation of electrical power systems” operation, 9 failures to trip and 2 cases of doubtful actuation. (SO 153-34.35.516-89.M.: SPO Soyuztechenergo, 1990) activated 9 346 times, out of which 9 309 times were correct 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

DISTURBANCES DYNAMICS OF CONTINGENCIES IN THE COMPANY’S ELECTRICAL NeTWORKS* 2 500 For 2011 the Company registered and investigated 1 936 cases of breakdown, out of which 1 637 failures 2 000 in distributing mains (84.6% of total number of cases of 1936

1640 1637 ort breakdown). Undersupply of electric energy made 1 944 1584 p 1 500 1437 thousand kV.h. All failures of the Company’s electrical 1384 re equipment are investigated at the stated time. 1 000

Increase of cases of breakdown compared to 2010 is, firs ANNUAL of all, consequence of ageing of equipment. 500 160 164 252 47 For 2011 3 847 blackouts occurred at the Company’s 0 40 39 electricity supply network complex facilities. 2009 2010 2011

Total Distributive network Supergrid system UNEG facilities It may be seen from the given statistics that the greatest 113 number of abnormalities are related to electrical appliances * The statistics did not consider contingencies “Failure without damage of equipment with successful reclosure” technological resource wearing. and those not related to sustained interruption of power supply for consumers.

DISTRIBUTION OF BLACKOUTS IN THE COMPANIES ELECTRICAL NETWORKS* Reason of blackouts Number of blackouts for 2011

pcs. % 2011 Technological resource wearing 1 310 34,1 Impact of climatic conditions 937 24,4 Other technical reasons (structure, assemblage, repair defects, operations shortages) 711 18,5 Outside influences (third individuals, organizations) 247 6,4 Overlap by birds 117 3,0 Shutdown due to consumer’ equipment damage 517 13,4 False staff operation of “Grid Company” OJSC 8 0,2 TOTAL: 3847 100

* The statistics did not consider contingencies “Failure without damage of equipment with successful reclosure”or manual reclose and those not related to sustained interruption of power supply for consumers. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

SECURITY SYSTEMS Of the Company’S • Checking of availability and accuracy of fire prevention Quality control of preventive checks, carried out by FACILITIES documentation (order, instructions, logs, schedules, fire production control departments and health and safety training programs, operational fire fighting cards etc.). Thus departments of the branches is being carried out, as well The state pays careful attention to the industrial security in 2011 24 audits were carried out in all the Company’s as, control of execution of administrative regulatory orders standards compliance and safety provision at the fuel and branches. in the field of industrial security. y” OJSC energy sector facilities (FES), issues of development of an

mp foundations of sustainable and safe functioning. The concept • setting up of order of providing fire prevention briefing o of complex development of power economy in the country and training on Basics of Fire Safety for the Company’s PHYSICAL AND ENGINEERING SAFETY OF C d i stipulates implementation of managerial organizational personnel. FACILITIES r and technical objectives by the companies, carrying out “G their activity at the energy economy, aimed to increase of The results of the work carried brought to non-occurrence Ensuring efficiency and continuous improvement of energy efficiency, safety and reliability. of fire at the Company’s facilities in 2011. economic protection system and regime is one of the priority directions of the Company’s activity.

FIRE PREVENTION INDUSTRIAL SECURITY In connection with enforcement of requirements of the government authorities regarding safety security at the 114 For the purpose of fire prevention at the Company’s facilities The Company operates 377 hazardous industrial facilities, facilities of fuel and energy sector in 2011 the Company and to provide reliable security of employees and property which, in compliance with the Federal Law “On industrial took measures to increase physical and engineering safety against hazardous fire factor the Company developed safety of hazardous production facilities”, are registered of the Company’s facilities; the Program for Upgrading of the strategy in the field of fire security, one of the basic in the State register of hazardous industrial facilities and technical security equipment at the Company’s facilities principles of which is provision of safety and safety of insured of the risk of liability for obligations arising as a in 2012-2016, complex tests of physical protection of the utilities equipment, buildings and structures by forming result of damage caused to the life, health or property of Company’s facilities were carried out; 98 facilities of the the fire fighting system, providing efficiency of steps, aimed other persons and the ambient environment in case of Company were equipped by panic alarm button (PAB), to prevention and restriction of fire escalation. breakage. modernization of PAB system at 64 Company’s facilities In 2011 no breakages were registered at the Company’s facilities. was carried out, within the framework of which Struna 5 Within the framework of implementation of the Policy in GSM system was installed with permanently maintained

ENERGY OF LIFE the aspect of fire prevention in 2011 a set of technical and All the engineering devices, used at the hazardous facilities, Internet — GPRS channel; 32 backbone SS-500-110-kV organizational steps was carried out, aimed to provision were equipped by the device needed and industrial process substations were given for state secure keeping of “Okhrana” of fire security of the Company’s facilities, including monitoring systems. federal state unitary enterprise; displacement of physical the following: protection to the backbone substations was carried In the accounting year 922 check experiments and out (till the end of 2011 74 500-110 kV substations were • Organization and conduction of inspection for the best equipment and technological device examination, provided by physical protection); agreements for physical fire safety condition of the Company’s branches in 2011. operated at the hazardous industrial facilities, 738 protection of 123 Company’s facilities were concluded; the Company’s employees, responsible for supervision, work on development of the program for automaton of • Training of personnel for Department of Fire Prevention, operational condition of PMG, safe working practices recordkeeping of technical security equipment, used for within the framework of which 108 introductory passed training and certification in the field of industrial security provision at the Company’s facilities, is being instructions on fire prevention were performed, as well security in the Central Certification Commission of the carried out. as, 218 employees passed training on Basics of Fire Safety Company. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

PROTECTION Of the Company’S ECONOMIC According to the results of inspections and audits the action Company the regulations, instructions on organizing INTERESTS plans for removal the revealed shortages and cases of information integrity were developed, list of data, making infringement were set up, their execution being controlled commercial secret of the Company, was made and To protect the Company’s economic interests in 2011 a set by internal audit department. approved; moreover, continuous control of compliance of managerial and practical with prevention and monitoring with commercial secret security is being carried out. ort

measures, aimed at revelating and preventing different p

violations, was carried out, including facts of power energy PROTECTION OF INFORMATION AND One of the most significant tasks in the field of informational re plundering, deliberate acts on the part of personnel INFORMATIONAL RESOURCES security is protection of personal data of individuals, concerning Company’s property; reduction of commercial processed by the Company. In this direction the Company

losses of electric power; decrease of cases of damage The Company secure a complex approach to organizing the carried out the actions aimed at bringing internal documents ANNUAL of electrical appliance, transmission lines; carrying out information security system, pursuing provision of own into conformity internal documents with the requirements of security analysis of counteragents and safety and security security — security of its business, as well as, security of the Federal Law in the field of personal data protection, plan of commercial offers. personnel and other stakeholders. of actions on provision of security of personal data, processed in information systems, was developed, “Grid Company” The target of provision of the Company’s informational OJSC Strategy in the field of personal data protection was INTERNAL AUDIT security is achieving, control and improvement and developed. 115 protectability of the, Company’s interests, despite any Provision of efficiency and continuous improvement of internal threats in the informational sphere, prevention of disclosure, control system and risk management is ne of the most priority unauthorized and inadvertent impact to the protected ISSUES OF CIVIL DEFENCSE direction of the Company’s activity. information, development and improvement of actions AND CONTINGENCY and means aimed to provide informational security. In 2011 to carry out daily efficient control of financial and Provision of information security and security of The Company pays great attention to the issues of civil economic and production activity of the Company and risk informational resources of the Company may be achieved defense and contingency (CD&C), mobilization activities management in the Company the Internal Audit Department through implementation of a set of steps in compliance and antiterrorist actions. Significance of this work is 2011 was established, the regulations, regulating guideline and with the requirements of the law and regulations of determined not only by meeting the requirements of laws procedural regulations for branches auditing were approved; the Company’s in-house documents aimed to provide and normative acts, but also by influence of the activities to the regulations on internal control procedures were developed. informational security. maintaining and keeping the Company’s forces and means at fully operational status for carrying out operations in For 2011 the Internal Audit Department carried out complex, In 2011 the Company carried out the actions to ensure the area of Emergency Situation both in peacetime and technical and special-purpose inspections and audits in the timely risk identification of external and internal character, wartime. branches and structural divisions of the Company on the preventive steps were taken, a series of internal rules following basic directions: technological connection, capital on organizing consumers’ work with the Company’s Implementation of actions in the field of civil defense, construction, maintenance and repair, planning and financing computational resource were introduced, new software prevention and emergency management is aimed at training of the activity, bookkeeping operation, tax bookkeeping, ActivDirectory.AGPM.x Spider v.7.8 was introduced, transition the Company’s personnel in CD&C aspects, improvement as well as, procurement activities and environmental from data-processing network means to antivirus software of knowledge, skills and experience, risk decrease and activity, organizing of works aimed at revelating freelance “Kaspersky Anti-Virus” was carried out. mitigation of consequences of contingencies of natural and consumption, HR-management, remuneration of labor and anthropogenic character, provision of security of personnel making of documents. To provide correct work with the confidential data in the and facility. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

In 2011 to achieve the objectives facing the Company in DATA ON CARRIED EXERCISES AND TRAINING CD&C aspects, in mobilization activities and antiterrorist actions the following actions were carried out: 567 600 • Central fireground command and control сenter of “Grid y” OJSC 500 Company” OJSC was founded with the following main an 347 379

mp functions: organizing of Emergency Response and 400 o Restoration Operations, management and coordination C d

i of actions of operational centers of the branches etc.; 300 r “G • Incident command team exercises (ICTE), personnel 200 training in CD&C aspects and mobilization activity were 100 29 31 45 carried out; as well as, special tactical training exercises 1 16 2 21 0 22 (STTE), emergency response drills, antiterrorist and 0 emergency training; 2009 2010 2011 116 • complex tests in the CD&C, mobilization training, ICTE Decision-type exercises Training STTE fire prevention measures, military registration and reservists registration aspects were organized;

• the Agreement on informational exchange with Emergencies Ministry of RT was signed for solving • The Plan for transfer to work in war-time conditions the tasks of prevention and emergency management; together with the Plan of Civil Defense and population protection, Plan of Actions for taking preventive • In compliance with the requirements of the applicable measures and emergency management; law, some amendments were made in the Order On

ENERGY OF LIFE the operational dissemination of information about • Working groups on antiterrorist and countersabotage on-site accidents on the facilities of electrical energy protection of facilities have been founded. industry of “Grid Company” OJSC;

• Order “On Irreducible Centralized reserve of “Grid Company” OJSC and emergency reserves of equipment, materials and spare parts of the branches” (from 29.04.2011 No.73);

• The activity on forming mobilization plan of “Grid Company” OJSC is completed; 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

ESTABLISHMENT OF PROTECTION ZONE OF TRNASMISSION FACILITIES Branch District (city) In accordance with Clause 89 of Land Code of the Russian Federation in compliance with the Order of ESTABLISHING ADZ city of , district Aznakayevskiy, city of Almetyevsk, district Almetyevskiy,

district Zainskiy, district Leninogorskiy, district Muslyumovskiy, district Novosheshminskiy, ort

SECURITY AREAS OF TRANSMISSION FACILITIES and p

special terms of land plot use, located on the border of district Sarmanovskiy, district Tukayevskiy re such zones, as well as, in accordance with the Regulations BDZ city of Aznayevo, district Aznayevskiy, city of , district Bavlinskiy, city of Bugulma, of ESTABLISHING SECURITY AREAS OF TRANSMISSION district Bugulminskiy, city of Leninogorsk, district Leninogorskiy, district Cheremshanskiy,

FACILITIES and special terms of land plot use, located on ANNUAL district Yutazinskiy the border of such zones, approved by the Decree of the Government of RF from 24.02.2009 No.160, to secure safe NchDZ city of Naberezhnye Chelny, district Tukayevskiy and accident free functioning, safe operation of transmission facilities, owned by the Company, in 2011 the activities on PDZ district Arskiy, district Atninskiy, district Baltasinskiy, district Vysokogorniy, city of Zelenodolsk, guard band demarcation continued. district Zelenodlskiy, district Laishevskiy, district Mamadyskskiy, district Pestrechenskiy, district Rybno-Slobodskiy, district Sabinskiy, district Tyulyachinskiy, City of Kazan 117 Total length of 35-500 kV transmission lines concerning BuDZ district Vernkhneuslonskiy which into the State Cadastre buffer zones of transmission facilities, and special conditions of use of land located within NchDZ district Aktashinskiy, district Zainskiy, city of Zainsk, district Elabuzhskiy, the boundaries of such zones as to the end of 2011, makes district Mamadyshskiy, district Menzelinskiy, city of Naberezhnye Chelny, city of Nizhnekamsk, 9 585 km (96% of total length). In 2011 35-500 OHL buffer District of Nizhnekamsk, district Tukayevskiy, district Chistopolskiy. zones were established of 97 km length.

In 2011 the activities on establishment of buffer zones of 2011 overhead lines and cable lines, 6(10) kV.

Buffer zone of 6-10 kV OHL were established in 30 municipal In 2011 the activities on establishment of buffer zones of In 2011 buffer zones of 6-10OHL of total length equal to 3 districts of the Republic of Tatarstan and city of Naberezhnye overhead lines, 848 km were Established. Chelny, located in the servicing zone ADZ, BDZ, BuDZ, NkDZ, NchDZ, PDZ, ChDZ. 6-10 kV were commenced, located in the area of For establishing OHL buffer zones total 444 million rubles responsibility of Kazanskie Electric mains, which are were expended assumed to be completed in 2012. (with VAT), including in 2011 — 113.3 million rubles (with VAT).

Total length of overhead power lines and cable transmission lines, 6(10) kV with the border of buffer zones being registered in the State Immovable Property Cadastre to the end of 2011 makes 14 448 km (62% of total length). Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.6. REPAIR ACTIVITY y” OJSC an mp o Development of allocated funding for full repairs and STRUCTURE OF EXPENSES FOR REPAIRING WORKS IN 2011 C d

i operating repairs in 2011 made 1 001 395 thousand rubles, r including for full repairs — 933 689 ths.rub. (93.2%), for “G 404 457 operating repairs, respecitvely, - 67 706 ths.rub. (6.8%). 405 800 Performance of repairing activities and development of 40,4% maintenance funding made 99.6% of the planned volumes. 34 073 40,5% 3,4% Share of expenses for repairing fixed capital assets in the Company’s budget in 2011 made up 12.53% (in 2010 118 — 13.98%). 15,7% Repair of transmissive Repair of buildings 157 065 units and structures

Repair of machines Repair of vehicles Total and equipment 1 001 395 TRDNF transformater – 40000/110 thousand roubles U1 110/6 kV SS Sidorovka STRUCTURE OF REPAIRING EXPENSES IN 2009-2011

Types of repairing works Amount in thousand rubles, 2009 2010 2011 ENERGY OF LIFE

Repair of transmissive units 409 036 403 564 404 457 Repair of machines and equipment 333 457 388 981 405 800 Repair of buildings and structures 148 434 139 597 157 065 Repair of vehicles 35 246 34 181 34 073 Total: 926 073 966 323 1 001 395 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re Share of works, performed using own resources in 2011 PerFORMANCE OF HEAVY OVERHAUL ACTUAL VOLUME OF THE COMPANY’S FIXED CAPITAL ASSETS in 2009-2011 made in money terms 125 514 thousand rubles or 12.5% Units of repair Unit of 2009 2010 2011

of total amount of financing of repair needs. ANNUAL meas.

The most significant reparing works, performed at the SUPerGRID SYSTEM Company’s facilities are as follows: complex repair - Complex repair 35-500 kV SS pcs. 23 16 16 Nagornoye SS, Yakeevo SS, Minnebayevo SS, Stolbishche SS; overhaul of equipment — Abdrakhmanovo SS, Heavy overhaul of 35-500 kV SS equipment % 100 100 100 Bugulma-500 SS, Nizhnekamskaya SS, Zavodskaya 119 SS, RBR SS, Kargali SS, Buinsk SS, Kinderi SS: Repair of 35-500 kV power transformers pcs. 29 38 35 overhaul of power transformers at Uzlovaya SS AT-2 Heavy overhaul 35-220 kV OHL: (ATDCTN-200000/220/110/35). Kinderi SS AT-5 f.”A” (AODCTN-167000/500/220/10). Zelenodolskaya SS AT-1 Replace of defective reincofced Concrete poles pcs. 204 112 149 (ATDCTN-125000/220/110U1); replacement of more than Replacement of defective storm-protection cable km 220 236 124 28 km of defective storm-protective cable on 500-kV OHL Kinderi — ZayEMCZ — Bugulma; works on amount of Replacement of defective isolators ths.pcs. 11,5 10,2 9,5 deflection regulation on OHL sections of total length over 2011 35-500 kV OHL (standard Heavy overhaul) km 394 440 443 50 km and installation of 52 supplementary poles. DISTRIBUTIVE NETWROK

Heavy overhaul TSS (DSS) 6-10/0.4 kV pcs. 455 449 592

Heavy overhaul OHL 6-10 kV km 653 563 586

Heavy overhaul OHL 0.38 kV km 646 590 519

Heavy overhaul CL 0.38-10kV km 49,3 37,3 37

рем 1100 884 816

Heavy overhaul of power Tranformers I-III gab. pcs.. 225 231 205

BUILDINGS AND STRUCTURES mln.rub. 148,3 139,4 157,1 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

DYNAMICS OF CHANGE OF EXPENSES FOR REPAIRS

mln.rubles in interests % 1 200 100 5,5 5,4 5,9 y” OJSC 1 000 80 16 14,5 15,7 an 51 52 59 800

mp 148 140 157

o 60 600 C d i 40 42,8 43 47

r 400 396 416 470 “G 200 20 331 358 315 35,7 37,1 31,4 0 0

2009 2010 2011 2009 2010 2011

Supergrid system Distributive network Buildings and structures Others 120

DYNAMICS OF CHANGE OF EXPENSES FOR REPAIRS mln. rub. Types of facilities 2009 2010 2011 Supergrid system 331 358 315

Distributive network 396 416 470 ENERGY OF LIFE Buildings and structures 148 140 157

Others 51 52 59

TOTAL: 926 966 1 001 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

6.7. INFORMATION ON THE VOLUME OF EACH POWER RESOURCE TYPE, USED BY THE JOINT-STOCK COMPANY IN THE ACCOUNTING YEAR ort p re

Description Natural Values Monetary indicators, ths.rub. Unit of Neasurement Amount ANNUAL

Thermal power ths. Gkal 26 639,7 29 882,90

Electric power ths. kW.h. 39 320 87 782,02

Petroleum tons 2 578,4 67 579,70 121 Diesel fuel tons 1 204,1 29 718,70

Pressurized gas ths/m3 33,7 215,30

Condensed gas ths. l. 0 0 Digital electrical-type instrument on MCC110/10 kV SS Gorodskaya Other types of fuel tons 92,5 6 053,00 2011 TOTAL: — — 221 231,62

Information concerning the volume of each type of power information disclosure by issuers of securities, approved resource, used by the Company in the accounting year by the Order of The Federal Service for Financial Markets in monetay indication is given for implementation of the of Russia on 10.10.2006 No.06-117/pe-n. Federal Law from 23.11.2009 No.261-FZ “On energy saving and energy efficiency improvements and on Amendments to Certain Legislative Acts of the Russian Federation" in compliance with the requirements of the Regulations on Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.8. PROCUREMENT ACTIVITIES y” OJSC an mp o The policy of “Grid Company” OJSC in the field of procurement

C STRUCTURE OF PROCUREMENTS, DEPENDING ON TYPES OF TYPES OF ACTIVITIES d

i activities is aimed to provide target and efficient expenditure r of monetary resources of the Company, as well as, to “G Type of activity 2010 2011 economically sound expenses (market prices of products). Amount, Total % of total Amount, Total % of total In 2011 procurement activity in the Company was regulated pcs. sum, procurement pcs. sum, procurement by the Regulations on the order of scheduled procurement mln.rub. amount mln.rub. amount of goods, works, services for the needs of “Grid Company” (without (without OJSC, issued in 01.12.2008 No.269, as well as, by Federal 122 VAT) VAT) Law from 21.07.2005 No.94-FZ “On placing orders for goods, works and services for state and municipal needs" in as capital construction 41 1 106,4 32% 147 5 718,9 64% to selection of financial organizations. heavy overhaul 146 874,3 25% 163 841,3 9% In 2011 procurement activities of the Company was carreid out in compliance with the Annual comprehensive maintenance 28 344,0 10% 37 391,7 4% procurement program (ACPP), formed on the basis of the Company’s maintenance, repair, operations, investment and other programs. information technologies 15 106,6 3% 45 538,2 6%

metrology 9 158,9 5% 11 182,2 2%

ENERGY OF LIFE Within the framework of Annual comprehensive procurement program in 2011 the Company carried out 454 procurements for the total amount of 8 935.9 million execution of constitute and technical 6 61,2 2% 12 62,6 1% rubles (excluding VAT). documentation, restriction of rights to real estate properties The economic benefits of procurement procedures carried in 2011 by the Company at the expense of decrease of assuring day-to-day operations and 38 743,2 21% 19 763,8 9% procurement aggregate price made the total amount of transport 285.8 million rubles (excluding VAT). other procurements 14 81,8 2% 20 437,2 5%

TOTAL 297 3 476,4 100% 454 8 935,9 100% 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

THE STRUCTURE OF ANNUAL COMPREHENSIVE PROCUREMENT PROGRAM For 2011

NUMBER OF BOARD LOTS ort

3% p 3% 4% 10% 4% re capital construction The information on carrying out competitive procurement 8% procedures, as well as, documentation, regulating the order 32%

of carrying out the procuments in 2011 was posted on the ANNUAL heavy overhaul Company’s official website: http://www.gridcom-rt.ru, 36% section “Procurements”).

maintenance In connection with enactment since 01.01.2012 of Federal Law № 223-FZ of July 18, 2011 "On procurement of goods and services of certain kinds of legal entities", the Board of 123 information technologies Directors of “Grid Company” OJSC approved the Regulations on procurement of goods, works and services for the eneeds of “Grid Company” OJSC (Minutes from 28.03.2012 real property No.9/2012), developed in compliance with the regulatons of the mentioned law. . assuring day-to-day operations IN MONEY TERMS and transport 2011 1% 2% 9% metrology 6% 5% 4% others 64% 9% Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.9 . INVESTMENT ACTIVITY y” OJSC an mp o The Company’s Invetment Program for 2011 in the amount PLANNED INVESTMENT FOR DEVELOPMENT AND MAINTENANCE C d

i of 6 352 million rubles was approved by the Order of the OF PRODUCTION CAPACITIES IN 2011 milion rubles r Ministry of Energy of RF in December 21, 2010 No.617. “G Name of Investment Project Required Alotted Deficiency of Provision of high level of reliability of power supply is Investments sources of sources of possible, provided Investment Program is implemented financing at financing at sufficient volumes, which means availability of source the expense of its implementation. The key problem of the Company’s of regulated Investment Program implementation is shortage of devoted tariffs 124 sources of tariff sources of financing. Total by Company, including: 6 352,0 3 131,0 3 221,0

When approving a tariff for rendering services on electric reconstructon and construction of SS and OHL 35-100 kV 2 689,7 962,5 1 727,2 power transmission for 2011 a regulating body considered the approved Investment Program of the Company, reconstructon and construction of SS and OHL 220-500 kV 1 282,3 731,7 550,6 moreover, required gross proceeds included the amount reconstructon and construction of distributive 1 401,6 729,1 672,5 of money for implementation of the Investment Program: networks 3 131 million rubles: part, providing putting into operation 0.4-10 kV 100,0 100,0 0,0 • At the expense of annual depreciation amount for electrical grids for power supply to sports facilities XXVII Summer Universide 2013 in city of Kazan

ENERGY OF LIFE recovery of fixed capital assets — 1 305 million rubles; Assemblage of ASKUE 217,1 109,8 107,3 • At the expense of investment component of profits — 1 826 million rubles. Reconstruction of relay proteciton and automation 56,9 31,7 25,2 Arrangement of channels of communication and 275,5 167,3 108,2 high-speed data channels

ОНМ 126,5 126, 5 0,0

EAD for future 177,7 147,7 30,0

Other (ecology and protection of facilities) 24,6 24,6 0,0 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re Sources of the Company’s Investment Program financing IMPLEMENTATION OF CAPITAL CONSTRUCITON in 2011: PLAN For 2011 ANNUAL • depreciation charges for recovering fixed capital assets The Company’s Investment Program is the basis for developing in the amount of 1 305 million rubles; the Capital Construction Plan. Capital Construction Plan by all the sources of financing for per 2011 made 4 962.2 million • investment component in tariff for rendering services rubles, execution for year — 4 909.7 million rubles, which on electric power transmission in the amount of 1 826 is 99%. million rubles; million rubles without VAT 125 Capital Construction Plan Design waterline • undistributed profit of the past years in the amount of 392.9 million rubles; planned actual in % for 2011 2011 • other own sources, including additional shares in the amount of 357.6 million rubles. TOTAL, including: 4 962,2 4 909,7 99%

Formed according to the amounts of funds for capital construction 3 881,5 3 839,5 99% 2011 for 2011, stiplulated in tariff for electric energy transmission

Facilities, included into the State Housing Funds of the President of 158,7 157,2 99% RT (at the expense of additional shares)

Facilities for development of opportunities of technological 636,8 632,2 99% connections to the Company’s electrical grids at the expense of profits received from payments for technological connecitons

Facilities for development of opportunities of technological 262,5 258,2 98% connections to the Company’s electrical grids at the expense of drop-down income

Facilities of “Electrical Grids” State Unitary Enterprise RT 22,7 22,7 100% Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

DYNAMIC OF FIXED CAPITAL FORMATION

22,7 9,2 5 000 157,2 y” OJSC 121,5 “Investment Agreement” with 4 500 0 “Electrical Grids” State Unitary an 76,9 2,5 4 000 Enterprise

mp 890,4

o 190,4 3 500 Facilities of SHF of the C 54,3 d i 1 533,4 President of RT

r 3 000 917,3 “G 2 500 Investment Agreement with 2 000 “Dispatcher Center” JSC

1 500 Facilities of technological 1 000 connection 500 2 584,5 2 977,9 3 839,5 “Grid Company’ JSC 126 0 2009 2010 2011

Combined modular system PASS Transformater TRDN – 40000/110 MOO 110/6 kV SS Sovetskaya U.1 110/10 kV SS Gorki ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BY COMPANY’S Branches, million rubles

1 733,1 1 800 Capital Construction Plan within the limits of funds,

1 600 ort

stipulated in the tariff for electric power transmission in p

1 400 2011, which incliudes 328 facilities, including 95 facilities of re the main circuit and 233 facilities of distributive networks 1 200 0.4-10- kV, as well as, procurement of the equipments which 1 000

do not require asemblage, performance of indemnification ANNUAL 800 571,0 545,2 cnocerning the future facilities, purchase of plots of lands, 357,4 375,5 has been implemented to the extent of 3 839.5 million rubles. 600 340,8 268,5 252,3 237,9 228,1 400 200 0 127 ADZ BDZ BuDZ EDZ KDZ NchDZ NkDZ PDZ ChDZ Department

IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BASED ON MAIN CIRCUIT

Branches Number of Design Transformers Transformer Number of Replacement of Facilities waterline (pcs.) capacity (MVA) CMS (pcs.) switches (pcs.) 2011 (mln.rub.) 35 kV 110 kV ADZ 9 189,3 1 200 - - - BDZ 15 78,8 - - - - - BuDZ 7 49,6 - - 1 - - EDZ 10 63,2 1 10 - - - KDZ 19 1 117,1 - 120 - - - NchDZ 8 330,9 2 80 - - 3 NkDZ 8 236,7 - - - - 6 PDZ 11 157,0 - - - - 3 ChDZ 8 28,4 - - - - - Total 95 2 251,0 4 410 1 - 12 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

The large-scale works, performed in 2011 by the main Reconstruction of 220-kV substation Kutlu-Bukash- WEithin the framework of construciotn and reconstrucitn circuit: Nizhnekamsk: to provide sustainable transit of electric of OHL, CL 0.4-10 kV 484.6 km of 142 PTS and 27 MITS power 220-kV ZayEMCZ — Nezhnekamsk — K.Bukash — were put into operation of total transformer capacity Reconstruction of 500-kV substation Kinderi: to provide Kinderi and increase of reliability of epectricpower supply equal to 61.5 thousand kVA, including construction and consumers of Kazan energy district with high-quality and to Kazan energy district, city of Kazan. reconstruction of distributive networks for electric power y” OJSC reliable electric power supply and conneciton of facilities supply to the facilities, required for XXVII World Summer an

mp of XXVII Summer Unisersiade 2013 in the city of Kazan, Reconstruction of SS 110 kV Sidorovka (city of Universiade-2013 in the city of Kazan. o 2018 FIFA World Cup, as well as, other socially significant Naberezhnye Chelny): to provide capacity growth of the C d

i facilities of infrastructure development in city of Kazan substation for establishing the electric power market area, r (with rated capacity over 100 MW). development of conditions for consumer connection under “G “Monotowns of Russia” Program. Reconstruction of 220-kV substation Tsentralnaya: to provide consumers of Kazan energy district with high- Reconstruction of 110-kV substation Gorodskaya (city quality and reliable electric power supply and conneciton of Nizhnekamsk): to provide reliability of electirc power of facilities of XXVII Summer Unisersiade 2013 in the city supply and establishing the electric power market area, of Kazan, 2018 FIFA World Cup. related to intensive rise of demand to electirc power in the 128 city of Nizhnekamsk. Reconstruction of 220-kV substation Kutlu-Bukash: to provide sustainable transit of electric power 220-kV ZayEMCZ — Nezhnekamsk — K.Bukash — Kinderi and IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BASED ON DISTRIBUTIVE NETWORK increase of reliability of epectricpower supply to Kazan energy district, city of Kazan, as well as, district settlements Branches Number of Design Length of Number of Number of Transformer and industrial facilities of districts of Rybnoslobosloy, Facilities Waterline OHL CL, PTS MITS capacity Mamadyshskiy, sabinskiy and Telyachinskiy of RT. km (pcs.) (pcs.) (ths.KVA) ADZ 9 59,7 54,7 25 - 4,8 Reconstruction of 110-kV substation Gorki: to provide BDZ 23 71,0 62 17 1 4,3

ENERGY OF LIFE consumers of Kazan city with high-quality and reliable electric power supply, establishing the electric power BuDZ 41 51,3 50 19 - 3,7 market area, related to intensive rise of demand to electirc EDZ 35 60,6 53,2 13 - 4,4 power in the city of Kazan. KDZ 60 227,7 85,1 8 24 29,6 Reconstruction of 220-kV substation Krylovka: to NchDZ 13 69,9 43,4 4 - 1,2 provide consumers of Kazan city with high-quality and NkDZ 8 82,0 13,5 - 2 1,6 reliable electric power supply, establishing the electric power market area, related to intensive rise of demand PDZ 32 161,3 67,7 34 - 8,8 to electirc power in the city of Kazan. ChDZ 12 59,9 55 22 - 3,1 Total: 233 843,4 484,6 142 27 61,5 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BASED ON THE FACILITIES OF SHF OF THE PRESIDENT OF RT IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BASED ON FACILITIES OF SHF OF THE Number Design Length of Number Number Replacement Transformer PRESIDENT OF RT Branches of Waterline OHL CL, of PTS of MITS of Transformer capacity Facilities (mln.rub.) km (pcs.) (pcs.) (ths.KVA) Capital Construction Plan based on the facilities, included ort

into the Program of SHF of the President of RT was ADZ 6 3,7 4,24 - - - - p

implemented to the extent of 157.2 mln. rub. re BDZ 4 3,3 0,52 - 1 1 0,40

In 2011 construction of 70 facilities was carried out, 43.2 km BuDZ 8 18,2 7,4 - 2 3 1,03

of transmission lines, 2 PTS and 14 MITS of total transformer EDZ 31 121,0 23,1 - 11 6 6,66 ANNUAL capacity equal to 9.14 ths. KVA were put into operation. KDZ 2 3,2 2,9 - - - - NchDZ 2 1,5 1 - - - - IMPLEMENTATION OF CAPITAL PDZ 10 5,5 3 2 - 6 1,05 CONSTRUCITON PLAN BASED ON FACILITIES ChDZ 7 0,8 1 - - - - TECHNOLOGICAL CONNECTION TOTAL: 70 157,2 43,2 2 14 16 9,14 129 Capital Construction Plan for 2011 based on facilities for developing technological connections to the electircal grids of the Company was implemented to the extent of 890.4 IMPLEMENTATION OF CAPITAL CONSTRUCITON PLAN BASED ON THE FACILITIES OF TECHNOLOGICAL CONNECTION mln.rub. 396.62 km of transmission lines, 83 PTS, 17 MTIS of total capacity equal to 34.49 thousand KVA were put Number Design Length of Number Number Replacement of Transformer into operation. Branches of Waterline OHL CL, of PTS of MITS Transformer capacity

Facilities (mln.rub.) km (pcs.) (pcs.) (ths.KVA) 2011 ADZ 133 34,4 25,8 8 - 9 1,386 IMPLEMENTATION OF CAPITAL BDZ 73 46,3 14,2 4 1 6 1,256 CONSTRUCITON PLAN BASED ON INVESTMENT AGREEMENT BuDZ 151 100,8 60,4 3 - 1 0,691 EDZ 144 176,6 41,3 11 - 1 4,005 Capital Construction Plan for 2011, including also KDZ 233 138,9 32,1 - 8 6 11,42 construction and reconstruction of distributive networks facilities under the Investment Activities Agreement entered NchDZ 94 117,1 49,29 14 5 - 5,136 with “Electrical Grids” State Unitary Enterprise (8 facilities) PDZ 180 34,1 14,23 4 - - 1,6 was performed to the extent of 22,7 million rubles. ChDZ 523 156,1 99,6 33 2 45 5,69 TOTAL: 77 86,2 59,7 6 1 2 3,31 Итого: 1 608 890,4 396,62 83 17 70 34,494 Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.10. INNOVATION ACTIVITIES y” OJSC an mp o STRATEGY OF INNOVATIVE DEVELOPMENT The ultimate targets of implementation of the Program BASIC AREAS OF INNOVATION C d i of Innovation Development are as follows: DEVELOPMENT OF THE COMPANY r The Company’s strategy of innovative development was “G approved by the Board of Directors in 14.02.2012 at the • Company integration into the general process of The basic areas of innovation development Of the suggestion of the Committee on Innovation. inoovaiton development of electrical energy industry Company, inuted into the single “Regional Smart Grid of the Republic of Tatarstan at close interaction with Network” Innovation Project, are as follows: Inoovaiton policy implies strategic orientation aimed to the enterprises, scientific institutions, leading higher improve the Company’s activity, program of Innovative educational institutions, small and middle businesses. • Development of “Smart Technologies in electricity supply Development , including priority directions of development, network compex of “Grid Company JSC”” Project. 130 complex of concrete steps in the scientific and technical, • Development in the Company of legal, organizational technological, organizatonal and informational sphere and managerial, financial and economic and industrial • Arrangement of conditions for connection of small of activity of the Company, providing attaining of set up and technological conditions for innovative activities, distributed generation to electrical grids of “Grid business targets. taking into account prioritires of the national scientific Compamy” JSC; and tedchnical and innovative policy. • Develoment and implementation of actions aimed to • Establihing in the electric power system of the Republic provide normative flux distribution of reactive power of Tatarstan regional smart power grid netwrok, in electrical grids of “Grid Compamy” JSC; including automated energy management system, active network elements with changing parameters, • Development of the integrated automated measuring

ENERGY OF LIFE system of current network status, automated real- of electric power fiscal accounting time systems for maintaining the operation of electric energy system wihtin the preset parameters as prt of • Instroduciton of a set of diagnostic systems for carrying the united analysis and decision-making system. out assessment and monitoring of power equipment . engineering status.

DGR resistors 110\6 kV SS Sidorovka 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re COMPANY’S COORDINATING SCIENTIFIC AND In 2011 6 meetings of CSTC took place, basing on the results • Generic solutions on SSDTU equipment for projecting TECHNICAL COUNCIL of which recommendatons and decisions were made, which reconstruction of switchyard ORU-220-500 kV

shall permit the Compamy’s experts to correct their activity substations were approved; ANNUAL By order of “Grid Company” OJSC from 05.05.2011 No.75 in compliance with the uniform technological policy in the Coordinating Scientific and Technical Council (CSTC) was power supply network complex. The following kew issues • On organizing quarterly personnel Knowledge founded for the purpose of managing technical policy, were considered by CSTC in 2011: Assessment Procedures; coordination of activities on development and organizing of introduction of new equipment and technologies, aimed • Arrangement of operation of wooden impregnated • On preparation of the Company for 2013 Summer to increase efficiency of functioning of electric network poles; Universiade. 131 complex, decrease of operational expenses, and increase of reliability level of the Company’s branches transmission • Arrangement of operation of oil transformers of TMG facilities operation. The membership of CSTC is formed brand, produced by Ltd. Tolyatti plant; of engineering managers, managers of business units, chief engineers of the Company’s branches. Chairman • Approval of a typical check-list for equipping the of CSTC is the First Deputy of the General Director of the distribution zone b equipment, devices and tools; Company — a chief technical officer.

• Approval of Program on Updating the fleet of the 2011 The key objectives of CSTC are represented by: coordination Company for 2011-2013; of activities on development and introduciton of new equipment and technologies, consideraiton of research and • The Project on establishment of new generation development plans, determination of perspecitve directions substations — “Digita; Substation” has been considered. and innovative development programs, making engineering and technological decisions in process of retrofitting, reconstruction and new construction of transmission facilities, technological connections of subscribers’ large power receivers, consideration of manufacturing programs.

110/6 kV SS Sidorovka Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

6.11 . INFORMATION TECHNOLOGIES y” OJSC an mp o INFORMATONAL TECHNOLOGIES For 2012 further development of embedded coeporate WORKS WITH INVESTORS ON CONSTRUCTION OF FOCL OL C d

i IT-services, integration of software solutions using ESB r In 2011 the works on completion of development of is planned. Moreover, using internal data portal platform For establishmnent of backbone digital links and “G the base IT-infrastructure and modernization of utility software and hardware of system, it is planned to increase oganizing dispatching and technologicl and corporate standard services: authorisation and aithentification data exchange efficiency between the branches’ business data transmission network of the United technological systems, e-mail, media-conferences aids. Wide use units and managerial units of the Company. communicaitn network (UTCN) the Company in 2011 carried of virtualization, eams permitted to increase reliability out active work with investors in FOCL construction on OL and quality of operation of utility services, as well as, lines. “MTS” OJSC as an investor commenced engineering to decrease cost of ownership and introduciton of new survey works on construction of FOCL OL on Kinderi SS 132 functions. DISPATCHING CONTROL AND PROCESS — Shemordan SS section. The cooperation shall permit CONTROL COMMUNICATION TOOLS to arrange high speed communication channels with the When carrying out data query of the Company’s business branches of Elabuzhskie, Privolzhskie and Kazanskie units main thrust is put on using expanded Java base To provide reliabilit and high-quality operation of dispatching electric mains, combining them into the united technological process IT-platforms of the leading world software control and process control communication tools in 2011 netwrok Kinderi SS, Vysokaya Gora SS, Chepchugi SS, producers — Microsoft, IBM. Oracle. In addition to in the Company maintenance, heavy overhaul and current SS, Sikertan SS, Shemordan SS 1 and 2, tracking development of operated software systems for 2011 the repair of the equipment and applicances were carried Shemordan SS. FOCL OL construction construciton shall priority was made on accounting process automation and out, including those, referred to the facilities of the work be completed on the section Kazan — Kutlu-Bukash — electric power transimission, preliminary works on fixed zone dispatching of OJSC "SO EEM" Regional power grid Nizhnekamsk, uniting Kamsk zone with the Management assets and equipment Company’s external site rebranding dispatching of electirc power system network of tatarstan of “Grid Company” OJSC.

ENERGY OF LIFE was carried out, where the functions of precontractual in compliance with the schedules. activities appeared on technological connections. Conctructed FOCL "TPS-2 Zelenodolsk" substation permitted Maintenance works were carried out by contractors to to organize communication with the facilitis of Privolzhskie the total amount of 11 390 ths. rub. (including VAT). Heavy and Kazanskie Electric mains. overhaul was perfomed by contractor to the total amount of 29 265 ths. rub. (including VAT). . 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re FOCL-OL “Grid Company” OJSC

In the branch of Kazanskie electric mains the construciton ANNUAL of FOCL OL at section Kazan TPS-1 Zapadnaya has been completed with organized overhang of fiber bundle at Portovaya SS, Novokremlevskaya SS, Krylovka SS, megafon Makarovka Kinderi Zarechye SS, Zapadnaya SS. Volna Ploschadka Z Savinovo megafon Osinovo Magistralnaya Severnaya The construction of fibre-optic communication line has been Existing FOL SC TVT Optika Zelenodolsk SMDZ 133 competed at the section of Gorki SS — on.No.4. TVT megafon megafon

KTTP-3 megafon TPS-2 megafon 2012 Kazanka Tyagovaya Existing FOL SC megafon Vasilievo NC megafon FOCL OL at the section Chstopol SS — Alekseevsk SS is megafon2012 megafon Оп. 42 put into operation with with organized overhang of fiber Konstantinovka Kirovskaya Kompressornaya megafon 2012 Energosbyt bundle at Alekseevsk SS, Utyakovo SS, Chasovaya-2 SS, КТК VMDZ Chistopol 220 SS. ZDZ TTSE-292 Zarechye Leninskaya Zapadnaya KMTTS Energosbyt Krilovska megafon 2011 FOCL OL was put nto operation of total length equal to 78 KDZ Novokremlevskaya ТТК Noksa KDZ Vostochnaya km, required for arrangement of digital communication KDZ Vodozabor KDZ channels and transmission of telemetric information in ТАE RDA Azino KDZ KDZ dispatch center RDA of Tatarstan from Poisevo SS, as well KDZ ТАE YuMDZ Sovetskaya Оp. 55 as, high speed communication channels with Aktanysh Portovaya KDZ KDZ Gorky abd distribution zones. megafon TAE TPS-1 Salmachi PDZ megafon megafon TAE Privolzhkaya Uzhnaya Tsentralnaya Existing FOСL SC megafon TAE Existing FOСL of investors megafon megafon

FOСL, constructed in 2012. Iskozh

Mirnya Stolbische 134 ENERGY OF LIFE “Grid Company” OJSC

Drozhanoe Dr ozhzhanovsky DZ

M.Tsilna Kaybitsy Kaybitsky DZ C

Vostochnaya ompan Zelenodolsky DZ Zelenodolsk Nurlat FOСL, constructedin2012 Existing FOСLofinvestors Construction ofFOСLin2012 Existinng FOСLSC

Rakovo y’s M

Studenets Sviyazhsk Sviyazhsky DZ Buinsk Buinsky DZ Fedorovskoe Karatun Kluchi Bishbatman i ss Vasilyevo Apastovsky DZ ion

B.Tarkhany Savino T etyushinsky DZ Kuralov

Osinovo and V. R.Makulovo

Chinchurin

Tetyushi Zapadnaya U. DZ Yambuhtino

Druzhba Pechischi Portovaya Maidani o Karatalga

KTETs-3 Strategic Krasnovidovo P.Kovali SК

o Kinderi TPS

Bolgari Spassky DZ TATENERGO Southern Matushino Dubyazi Pigali Vysokogorsky DZ Tsentralnaya Kamskoustinsky DZ Kamskoe Ustye Alati Stolbische Prigor T Airport arget Vysokaya Gora Narmonka odny DZ Shigaleevo

Antonovka Atninskaya DZ B.Atnya Laishevsky DZ s P estr

Salmani

Laishevo Niznek P 25 letOktyabrya Kiner echinsky DZ estre L.Kokushkino \ tsi

Arsk Arsky DZ T. Khodyashevo

Bazarnye Mataki Alkeevsky DZ Shemor Alekseevsky DZ Alexeevsk Kamskaya amsk Elec K e Chasovaya-2 Ramadan Kazili y Ev Baltasy Baltasinsky DZ V dan B.Tigani ent akhitovo Ty Ty R.Slobodsky DZ ulyachinsky DZ ulyachi B.Nirsi Nurlatsky DZ s –2011 К. Bukash Bilyarsk Utyakovo tric mains Nurlati Andreevka B. Sabi Sabinsky DZ Muslyumkino Kukmorsky DZ Sard DP ChES Chistopolsky DZ

Chistopol-220 ek Eltan Chuv. Aksubaevo \ Aksubaevsky DZ Kulushi

Kargali Kirmeni 1. G enera Novosheminsky DZ Novosheminsk Lenino Nizhnekamskaya Atomstroy Lashmanka Mamadyshsky DZ l I Nizhnekamsky DZ Nk KazanCHPS(PTK-1) Morti 2 Cher Cheremshan nformation Poselkovaya emshansky DZ Kosteneevo ZaiGRES Zainsky DZ Bukhar Gorodskay AGRES Ye Aktash labuzhky DZ AEM ВЛ-220 кВ Sidorovk T Leninogorsky DZ a ukaevsky DZ

on Toima-2 C a Mendeleevsky DZ KVK Minibaevo ompan Tikhie Gory Uzlovaya NchTETs NchES Almetyevsk Almetyevsky DZ Zavodskaya Abdrakhmanov TANEKO Pismyanka y Salaushi Sarmanovo Sarmanovsky DZ

Suleev Tersy Nurkeevo \ o Bugulma 500

Bugulminsky DZ BES Yakeev Kuchukovo Bugulma 14 Agriz Agryzsky DZ Kr.Bor 2. Eq Tegermyanlek Kontuzla o Chekalda Aznakaevsky DZ Menzelinsk Menzelinsky DZ uit Kiyasovo Aznakaev Yutaza NPS Muslyumovo P.Tumbarl y C Bavlinsky DZ Aleksandrovka UrGres Muslyumovsky DZ Muslyumovo apita o Yu tazinsky DZ y Aktanyshsky DZ Poisevo l Arrangement og digital dispatching Channels and transmission channels of telemetric information in 2011: of information telemetric channels transmission • • • • • •

“Reconstruction with replacement of analog equipment equipment analog of replacement with “Reconstruction 1 to digital equipment of “ABB” Company ETL-641 is “ABB” of Company equipment digital 1 to organized; are 12 channels TM 110/10kV Kukmor SS”. Tatarstan. At the equipment of wide-band radio access access radio wide-band of equipment At the Tatarstan. (Wi-Fi, Wi-MAX) voice canals and TM channels are are channels TM and canals voice Wi-MAX) (Wi-Fi, In Kazanskie electic mains using own resources 3 In Elabuzhskie electic mains replacement of analog In Bugulminskie electic mains digital dispatch channels channels dispatch digital mains electic Bugulminskie In In Buinskie electic mains replacement of analog analog of replacement mains electic Buinskie In In Naberezhno-Chelninskie electic mains digital digital mains electic Naberezhno-Chelninskie In In Almetyevskie electic mains 3 dispatch channels and and channels dispatch 3 mains electic Almetyevskie In to digital by Bugulma-Pusmyanka CCL are arranged. are CCL Bugulma-Pusmyanka by digital to and interconnecting communications for participation arranged at the secitons Sovetskaya SS – DP KES, Gorki Gorki KES, –DP SS Sovetskaya secitons the at arranged under SS SS-Kukmor Kutlu-Bukash sections the at communication of arrangement for SS Tarkhany and SS - DP KES, Krylovka SS - DP KES. -DP SS Krylovka KES, -DP SS Project “Reconstruction of HF-communication channel of channel HF-communication “Reconstruction Project Magistralnaya SS-RDA of Tatarstan, DP KES-RDA of of KES-RDA DP Tatarstan, of SS-RDA Magistralnaya with disptacher of Tetyushkiy RES. Tetyushkiy of disptacher with of Pismyanka SS-RDA of Tatarstan under project project under Tatarstan of SS-RDA Pismyanka of secitons are arranged: Kinderi SS-RDA of Tatarstan, Tatarstan, of SS-RDA Kinderi arranged: are secitons equipment at TL SS 220/110/35/10-kV SS TL at equipment Kutlu-Bukash. ETL-681 performed is “ABB” of Company equipment equipment of high-frequency communication to digital equipment of high-frequency communication ASK- equipment of “ABB” Company FOX-515 into “ABB” of put Company is equipment dispatch channel and 3 TM channels on the following following the on channels 3TM and channel dispatch performed at the sections Druzhba SS-Tetyushkiy RES RES SS-Tetyushkiy Druzhba sections the at performed 3. C orporate G overnance

\

4. F

inancial

and • • •

ASK-R to digital equipment AKST-TS is performed at at AKST-TSperformed is equipment digital to ASK-R Replacement of analog equipment of HF-communication In Privolzhskie Electric mains at the section Zelenodolsk Zelenodolsk section the at mains Electric Privolzhskie In In Nizhnekamskie electic mains digital equipment equipment digital mains electic Nizhnekamskie In the equipment of wide-band radio access (Wi-MAX) (Wi-MAX) access radio wide-band of equipment the Digital SS. –Tatarstan SS Zavodskaya section the arrangement of videosupervision of the facilities. at the sections Tura SS – DP REM and Zelenodolsk Zelenodolsk and REM –DP Tura SS sections the at –KBK SS –BSI –NChTPS NChDZ DP sections the at channels transmission Data operation. into put are and digital channels at sections Gorodskaya SS – SS Gorodskaya sections at channels digital and SS-220 – Kazan CHPS-3, replacement of analog analog of replacement CHPS-3, –Kazan SS-220 Minicom board switch dispatcher of installation SS, FOX-515 “ABB” of of Company equipment Digital SS”. 100 Mbit/ speed with arranged are SS –Sidorovka SS SS - RDA of Tatarstan and KBK SS - RDA of Tatarstan Tatarstan of -RDA SS KBK and Tatarstan of -RDA SS RES – DP REM. –DP RES RES) Tukayevskiy of (LAZ SS –Sidorovka NKTPS-1 Digital voice channels are out into operation, built on on built operation, into out are channels voice Digital for NkEM –DP SS Zagorodnaya sections the at MAX) SS Menzelinsk and SS Poisevo at performed DX-500 is in DC - RDA of Tatarstan from 110-kV from Poisevo”. SS Tatarstan of -RDA DC in E is put into operation at Poisevo SS and Menzelinsk Menzelinsk and SS Poisevo at operation into put is operation and digital channels at sections Sidorovka Sidorovka sections at channels digital and operation on the equipment of wide-band radio access (Wi- access radio wide-band of equipment the on of “ABB” Company FOX-515 is put into operation FOX-515 operation into “ABB”of put Company is sec. sec. Mbit/ 20 speed with –NchGMTTS DP NChDZ and sec equipment of “ABB” Company ETL-641 is carried out. out. ETL-641 carried is “ABB” of Company equipment equipment of HF-communication ET-71 to digital under Project “Reconstruction of SS 110/6 SS of Sidorovka” kV “Reconstruction Project under ubder Project “Organizaiton of digital communication communication digital of “Organizaiton Project ubder 110-kV of Gorodskayta “Reconstruction Project under communication channels are put into operation, buit buit operation, into put are channels communication information telemetric of transmission and channels conomic A ctivity \

5. S ocial R esponsibility \

According to the results of 2011 increase of digital digital of 2011 of results increase the to According 42.9% of the total number of supervisory control devices, devices, control supervisory of number total 42.9% the of AUTO the-art digital supervisory control devices were assembled, were control assembled, devices supervisory digital the-art Modernization, reconstruction of substations 48 state-of- 48 substations of reconstruction Modernization, • In 2011 within the framework of capital construction. construction. capital of framework 2011In the within supervisory control devicessupervisory made 11.8%, which makes meetingt he requirements of OJSC "SO EEM". "SO OJSC of requirements he meetingt being operated.

6. P “ABB” Company FOX-515 GM-1GL Zelax “ABB” into Company put and is In Chistopolskie electic mains digital equipment of the section Chistopol -220 SS – Alekseevsk SS with with SS –Alekseevsk -220 SS Chistopol section the at transmission data and management technological arrangement of digital communication channels. Project “Construction of Digital Channels of Dispatching- of Channels Digital of “Construction Project Chasovaya-2 SS – DP AEM, Utyakovo SS – DP AEM under under AEM –DP SS Utyakovo AEM, –DP SS Chasovaya-2 operation at the sections Chistopol-220 SS – DP AEM, – DP AEM, SS Chistopol-220 sections the at operation roductive M AT I C RE A ctivity M OTE CONTROL OTE

\

7. A nnexes 135 2011 ANNUAL report

ort ANNEXES p re

7 ANNUAL «There is one miracle on the face of the earth: An island lies in the sea, The town stands on the island…»

ENERGY OF They say that Alexander Pushkin described exactly Sviyazhsk, when 137 creating his poem about Buyan island. Sviyazhsk was founded as UNIQUENESS a fortress in 1551, it is a truly unique place and the events that took place on it in 1552 are unequalled in the world history ... among the military operations.

The fortress on the island (walls, towers and churches) was designed as an outpost of Russian troops, when Ivan the Terrible won Kazan. It was designed in the town of Myshkin, built in Uglich woods, numbered, disassembled, bounded and wafted along the Volga to the island, where "people serving the tsar caught the rafts with the disassembled ENERGY OF LIFE town and just in 24 days they built a fortress, exceeding the size of the Kremlin of Moscow and Novgorod ,from the prepared timbers on Mountain Kruglaia”.

The work of the medieval architects was not in vain, many events took place on Sviyazhsk since then, but today the island is full of goodness and peace, the ancient buildings are carefully restored, not only the monuments of cultural heritage, but also its unique landscape are preserved. Nothing obscures the beautiful view from the island to the Volga and from the Volga to the island, which seems to be a toy island Buyan in a fabulous frame of sun flecks on blue water. Island-town Sviyazhsk Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

INFORMATION ABOUT KEEPING THE CORPORATE CODE OF CONDUCT BY THE COMPANY

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

General Shareholder Meeting

y” OJSC 1 Shareholders notification on the general meeting holding not later Not observed P. 11.6.1 of the Articles, p. 14.1.of the article 14 general shareholders’ an than 30 days before the holding meeting date, regardless of the meeting of OJSC "Grid Company" establish that the notification of mp

o issues included on its agenda, unless the longer period is provided the general shareholders’ meeting holding shall be made not later C

d by the law. than 20 days before the date of the meeting performing, unless i

r the longer period is provided by the law. “G The specified term is considered to be the optimal for the Company, as it allows to respond quickly and make decisions on key issues within the competence of the general meeting, while retaining the ability to take balanced decisions on the basis of the provided materials and information by the shareholders, including the joint decision-making (because of the geographical proximity of the 138 shareholders and the Company).

2 The shareholders’ ability to review the list of the persons entitled Observed Regulations for the general shareholders’ meeting of OJSC "Grid to participate in the general meeting of the shareholders as of Company" establishes: a list of the persons entitled to attend the the date of the notice on the holding of the general shareholders’ general meeting of the shareholders is provided by the Company meeting and to the closing of the attendee general meeting of the for review at the request of the persons included in this list and shareholders, as in the case of the absentee general meeting of having no less than 1% of the votes (p.13.1 );a list of the shareholders the shareholders to the closing date for the voting ballot receipt. entitled to attend the general assembly is provided for review only to the shareholders, submitting the relevant requirement

ENERGY OF LIFE not earlier than the list making date (p. 13.3).

3 The shareholders’ ability to review the information (materials) to be Not observed Company does not disclose the information to be provided in provided in preparation for the holding of the general shareholders’ preparation for the holding of the general shareholders’ meeting meeting by electronic communication means, including the means by electronic communication means. of Internet. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

4 The shareholders’ ability to include an item in the agenda of the Compliance There is no requirement to provide an extract from the register of general meeting of the shareholders or to require the convening of shareholders when including an item in the agenda of the general ort

the general meeting of the shareholders without giving an extract meeting of the shareholders or demanding to convene the general p

from the register of shareholders, if the recording of his rights on meeting of the shareholders in the Articles and internal documents re the shares is carried out in the share registry system, and if his of the Company. rights on the shares are recorded on the account of the depository

- just enough an extract from the account of the depository for the ANNUAL implementation of the said rights.

5 The Articles or internal documents contain requirements for the Observed P. 4.1 Art. 4 Provisions on the Board of Directors, P. 2.5. Art. 2 mandatory attendance at the general meeting of the shareholders of Provisions on the General director, P. 1.6 Art. 1 Provisions on the the General director, members of the Management board, members Audit Commission of the OJSC "Grid Company" the responsibility of of the Board of directors, members of the Internal audit commission the Board of Directors, the General director and Company's Audit 139 and auditor of the joint stock company. Commission is established to attend the general meeting of the shareholders. By P. 17.4. Art. 17 by the provisions of the general meeting of the Shareholders the possibility of attendance at the meeting as the representative of the auditor of the Company is formalized.

6 Mandatory attendance at the general meeting of the shareholder of Observed P. 174. Ar. 17 the provisions of the general meeting of the candidates when considering elections for the board of directors, Shareholders establishes the possibility of the presence at the 2011 General director, members of the Management board, members meeting of the candidates who are included in the lists of candidates of the Internal audit commission as well as when approving the for election to the management and control bodies of the Company. auditor of the joint stock company.

7 Presence of the registration procedure of the general meeting Observed The registration procedure of the general meeting members is members in the internal documents of the joint stock company. described in ar. 23 “Registration procedure of the persons entitled to participate in the general meeting held in the form of a meeting" of the Regulations for the general shareholders' meeting of OJSC "Grid Company". Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

Board of Directors y” OJSC 8 Presence of the Board of Directors’ powers for the annual approval Observed According to p. 12.1.2. of the Company’s Articles, the powers of an of the financial and business plan of the joint stock company in the Board of Directors of the Company include the question of the mp

o the Articles of the Joint-Stock Company. priority activity directions determining and Company’s budgets C d

i approving. r

“G 9 Presence of the approved by the Board of directors procedure for Not Observed managing risks in the joint stock company.

10 The charter of the joint stock company provides the right to the Not applicable According to pp. 16 p. 12.1.2. of the Company’s Articles, formation Board of directors to take decisions on suspending the authority of the executive body of the Company and early termination of its of the General director appointed by the general meeting of the powers falls under the competences of the Board of Directors. shareholders. 140 11 The Articles of the joint stock company shall include the right of Not Observed the Board of directors to establish the qualification and size of the remuneration for the General director, members of the Management board and directors of the main structural divisions of the joint stock company

12 The joint stock company Articles shall include the right of the Board Observed Approval of the contract conditions with the General Director of directors to approve the contract conditions with the General is performed by the Board of Directors in accordance with the director and members of the Management board. provisions of paragraph 1.4 on the General Director of OJSC "Grid Company".

ENERGY OF LIFE 13 The Articles or internal documents of the joint stock company Not Observed contain requirements that when approving contract conditions with the General director (management organization, manager) and members of the Management board, the votes of members of the Board of directors being the General director and Management board members shall not be counted.

14 The Board of directors of the joint stock company shall contain no Not Observed less than 3 independent directors who meet the requirements of the Code of Conduct. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

15 The Board of directors of the joint stock company shall not contain Observed persons who have previous convictions for crimes in the sphere of ort

economic activities or against state bodies, against the interests of p

state services and local government administration, or who have re received administrative punishments for violations in the sphere of entrepreneurial activities, finance, taxes and duties, as well as

in the securities market. ANNUAL

16 The Board of directors of the joint stock company shall not contain Observed persons who are participants, General Directors, members of Management bodies or employees of legal entities, which are in competition with the company.

17 The Articles or internal documents of the joint stock company Observed By the P. 12.2.5 Art. 12.2 of the Articles, Art. 8.2 Provision on the 141 contain requirements on election of the Board of directors by Board of Directors of OJSC "Grid Company" it is established that cumulative voting. the members of the Board of Directors of the Company are elected by cumulative voting.

18 The internal documents of the joint stock company shall contain Observed P. 4.1. of Art. 4 of the Provision of the Board of Directors OJSC "Grid obligations on members of the Board of directors to refrain from Company" confirms the obligation on members of the Board of actions which lead or potentially lead to conflicts of interests directors to refrain from actions which lead or potentially lead to

between their interests and the interests of the joint stock company. conflicts of interests between their interests and the interests of 2011 If such a conflict arises, then they shall disclose information on the joint stock company, and if such a conflict arises, then they this conflict to the Board of directors. shall disclose information on this conflict to the Board of directors.

19 Internal documents of the joint stock company shall include Observed P. 4.1. of Art. 4 of the Provision of the Board of Directors confirms requirements for members of the Board of directors to inform in the obligation on members of the Board of directors to inform the writing the Board of directors on the intention to complete securities Board of directors, the Management board and the Auditor of the transactions with joint stock companies, of which they are Board Company on the intention to complete securities transactions with of directors members or of subsidiary (dependent) companies, and joint stock companies or of subsidiary (dependent) companies, and also disclose information on transactions which such securities. also disclose information on transactions which such securities. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

20 Internal documents of the joint stock company shall include Not Observed

y” OJSC requirements on holding Board of directors meetings no less

an than once every six weeks. mp

o 21 Holding meetings of the Board of Directors during the year, when Partial Observed During 2011 18 meetings of the Board of Directors of OJSC "Grid C

d the annual report of the joint stock company is complied, no less Company" were held, 16 of them at intervals of not less than 1 i r than once every six months. time in 6 weeks. “G 22 The internal documents of the joint stock company shall include Observed The procedure for holding meetings of the Board of directors is the procedure for holding meetings of the Board of directors. set in the Part VI “The procedure for convening and conducting meetings of the Board of Directors, and for its decision-making procedures” Provision on the Board of Directors of OJSC "Grid Company". 142 23 The internal documents of the joint stock company include a Partial Observed According to subp. 24 of Art. 12.1.2 of the Articles, the Board of resolution on the necessity of the Board of directors’ approval directors of the Company shall make decisions concerning the for joint stock company transactions of 10 or more percent of the receiving of the loans and borrowings, third party guarantees in company’s fixed assets value, with the exception of transactions the amount from 5 to 50 percent of the book value of assets of completed as part of ordinary business activities. the Company, determined according to its financial statements for the last reporting date, make transactions related to alienation or possibility of the alienation of immovable property, as well as transactions related to encumbrance of immovable property if such transactions can lead to alienation, regardless of the amount of the transaction.

ENERGY OF LIFE 24 The internal documents of the joint stock company include the right Partial Observed According to p. 3.1. Regulations of the Board of Directors OJSC "Grid of the members of the Board of directors to obtain from executive Company", a member of the Board of Directors shall have the right bodies and directors of the main structural divisions of the joint to request and receive any information (documents and materials) stock company information that is necessary to carry out their with respect to the Company, from officers of the Company, which functions and also responsibility for not providing such information. is necessary for the discharge of his duties, in addition, P. 3.2 establishes the duty of the General Director to provide at the request of the Chairman of the Board any information about the Company, as well as the performance of his duties. Responsibility for the non-provision of information is not fixed in the internal documents of the Company. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

25 The presence of the Board of directors committee for strategic Not Observed planning, or the functions of this committee shall be passed to ort

another committee (except for the Audit Committee and Human p

Resources and Compensation Committee). re

26 The presence of the Board of directors committee (Audit Committee) Not Observed The ability of creation the Board of directors committee is set in which recommends an auditor to the Board of directors of the joint the Part VII of the Provision on the Board of Directors of OJSC ANNUAL stock company and cooperates with them and the Audit Commission "Grid Company". The Board of Directors approved the Provisions of the joint stock company. on the Audit Committee of the Board of directors of OJSC "Grid Company", the Audit Committee of the Board of directors is not formed.

27 The Audit Committee shall only contain independent and non Not Observed executive directors. 143 28 The Audit Committee shall be led by an independent director Not Observed

29 The internal documents shall contain the right of access to all Observed According to P. 6.1 of the Provision on the Audit Committee of members of the Audit Committee to any document or information of the Board of Directors of OJSC "Grid Company", the committee the joint stock company, on condition of non disclosure of confidential members are entitled to familiarize with the records of meetings information. of the Committee of the Board of Directors and to receive copies of them, request the members of the Board of Directors of the 2011 Company, the Company's executive bodies, the structural units of the Company engaged in activities in the field of auditing and reporting of the Company, provide them information and documents on matters within the competence of the Committee, in accordance with the Provisions on the Board of Directors.

30 Creation of the Board of directors committee (Human Resources Not Observed The ability of creation of the Board of directors committee is set in and Compensation Committee), whose functions are to determine the Part VII of the Provision on the Board of Directors of JSC "Grid the selection criteria for the candidates to the Board of directors Company", approved the Provision on the Human Resources and and to develop a remuneration policy for the joint stock company. Compensation Committee of the Board of directors of OJSC "Grid Company", Human Resources and Compensation Committee of the Board of directors is not formed. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

31 Management of the Human Resources and Compensation Not Observed Human Resources and Compensation Committee of the Board of

y” OJSC Committee by an independent director. Directors is not established.

an 32 The absence of the joint stock company officers in the Human Not Observed Human Resources and Compensation Committee of the Board of mp

o Resources and Compensation Committee. Directors is not established. C d i

r 33 The creation of the Board of Directors Risk Committee or this Not Observed

“G committee functions passing to another committee (except for the Audit Committee and Human Resources and Compensation Committee).

34 The creation of the Board of Directors Committee on corporative Not Observed conflicts resolving or this committee functions passing to another committee (except for the Audit Committee and Human Resources 144 and Compensation Committee).

35 The absence of the joint stock company officers in the Committee Not Observed on corporative conflicts resolving.

36 Management of the Committee on corporative conflicts resolving Not Observed by an independent director.

37 The presence of the internal documents approved by the Board of Observed The Company’s Board of Directors approves the Regulations for Directors of the joint stock Company, providing the establishing and the following Committees: functioning procedures of the Committees of the Board of Directors. - Human Resources and Compensation, - Audit, ENERGY OF LIFE - the Program "Reactive Power" execution based on creation and application of the devices and technologies of the controlled ac power transmission system.

38 The Articles of the joint stock Company should include the Not Observed procedures for determining the Board of Directors’ quorum, which allows providing the mandatory participation of the independent directors in the Board of Directors’ meetings. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

Executive bodies

39 Presence of collegial executive body (Management Board) of the Not observed ort p company. re 40 Presence in the Charter and internal documents of joint-stock Partly observed According to Article 24. 12.1.2 of the Charter, making decisions company regulations about a necessity for approval by the Board on obtaining credit and loans, guarantees for third parties on

real estate transactions, receipt of a joint stock company loans, the amount of 5 to 50 percent of the Company’s assets value ANNUAL if such transactions do not apply to large transactions and a their of, as defined by data of its accounting of the latest reporting fulfillment does not apply to ordinary business activities of the date, the transactions associated with the disposal or possible company. disposal of immovable property and transactions related to an incumbrance of immovable property, changes in the real property if such transactions may lead to its exclusion, regardless of the transaction related to the jurisdiction of the Board of Directors of the 145 Company. Collegial executive body (Management Board) Is absent.

41 Presence in the internal documents of JSC procedures for Not observed negotiation of the operations that go beyond financial and business plans of the company.

42 Absence within of executive bodies persons who are members, Observed 2011 General Director (manager), member of the governing body or employee of a legal entity competing with the joint-stock company. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

43 An absence in executive bodies of joint-stock company persons, Not observed

y” OJSC who were found guilty of committing a crime in sphere of economic

an activity or crimes against the state, interests of public service and

mp local authorities, or to which administrative penalties for offenses o

C in a field of an entrepreneurship or finance, taxes and fees, stock d i market were applied. r

“G If the sole executive body’s role is performed by managing company or by executives – compliance of General Director and members of the Board of managing organization or manager with requirements placed for General Director and members of the Board of the company.

44 Presence in the Charter and internal documents of the Company Not applicable The executive body’s functions were not transferred to the 146 of a ban to the managing organization (manager) who performs managing company (manager). similar functions in a competing company, and to be in any other property relationship with the company, in addition to performing managing services for an organization (manager).

45 Presence in internal documents of the Company executive duties Observed According to p. 2.8. of the Article 2 about General Director of the to refrain from actions that will or may potentially lead to a conflict JSC "Grid Company", General Director - must refrain from actions of their interests and interests of the company, and in case of such that will or potentially could lead to a conflict between his interests conflict - an obligation to inform the Board of Directors. and interests of the Company, and in that case - is obliged to inform the Board of Directors.

46 Presence in the Charter and internal documents of the company Not applicable The executive body’s functions were not transferred to the managing ENERGY OF LIFE selection criteria to select managing organization (manager). company (manager).

47 Executive bodies of joint stock company presents monthly reports Not observed on their work to the Council directors. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

48 Establishment of responsibility between joint-stock company and Observed General Director (managing organization, manager) and members ort

of the Board, for violation of contract provisions on the use of p

confidential and service information. re

Secretary of the joint-stock company

49 Presence in the joint-stock company of a specialized person Observed Functions of the secretary of the company is performed by the ANNUAL (company secretary), whose task is an enforcement of procedural Board Secretary and structural unit. requirements by company agencies and officials to guarantee rights and legitimate interests of the joint-stock company.

50 Presence in the Charter and internal documents company’s Not observed 147 secretary appointment order and his/her duties.

51 Presence in the Charter of joint-stock company requirements for Not observed company’s secretary position.

Significant Corporate Actions 52 Presence in the Charter and internal documents of the company Not observed Engagement of an independent appraiser is performed in cases, 2011 requirements on an approval of a big deal up to its completion. concerning the Federal Law on " Joint Stock Companies" and other regulations. Transactions that are recognized as large transactions 53 Mandatory involvement of an independent appraiser to assess Not observed in accordance with Federal Law on "Joint Stock Companies" during market value of property subject to big deal. the period of 2011 were not made. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

54 Presence of a ban in the Charter of the joint-stock company to Not observed

y” OJSC make decisions on an acquisition of large equity stakes of the

an company (a merger) of any action to protect interests of executive

mp bodies (members of those bodies) and members of the Board of o

C Directors, and worsen of position of shareholders compared with d i an existing (in particular, a ban on making decision by the Board r

“G of Directors to issue additional shares, papers, convertible into shares or securities, which give a right to purchase shares of the Company, even if the right to take such a decision is given them by the Charter).

55 Presence of requirements in the Charter of the company to Not observed mandatory engagement of an independent appraiser to assess 148 current market value of shares and possible changes of their market value as a result of a merger.

56 Absence in the Charter of JSC (joint-stock company) release of Observed a purchaser from the obligation to offer the shareholders to sell Company’s ordinary shares (emission of papers convertible into ordinary shares) in case of merger.

57 Presence in the Charter and JSC’s internal documents of the Not observed mandatory involvement of independent appraiser to determine a conversion ratio of shares during reorganization. ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

Disclosure of information

58 Presence of approved by the Board of Directors an internal Observed Regulation on Information Policy of JSC "Grid Company" approved ort p document that defines rules and approaches of JSC about by the Board of Directors on 23.12.2011 (protocol dated 23.12.2011 re information disclosure (Regulation on information policy). № 6/2011).

59 Presence in the internal documents of JSC Information disclosure Partly observed In accordance with Clause 3.1.2 on JSC’s Information policy Company

requirements on shares placement, of persons, who are willing discloses information about all registered cases of paper issue ANNUAL to purchase placed shares, including large stakes, and also about and the most significant decisions made by the authorities of the whether senior officials of joint stock company are willing to be Company, and also publish on an official website of JSC content involved in purchase of placed shares of the company. of all reported decisions, concerning papers issue.

60 Presence in internal documents of JSC list of information, Observed Section 11.6.3 of Article 11.6 of the Charter and Article 15 Provisions documents and materials that should be provided for shareholders on general meeting of shareholders of JSC "Grid Company" defines 149 to make decisions, regarding general meeting of shareholders. list of information, documents and materials to be provided for persons entitled to participate in the shareholders meeting.

61 Presence of a company website on the Internet and regular update Observed For the latest news and information update go to the official website of information about company on a website. of the company: http://www.gridcom-rt.ru

62 Presence in internal documents of the JSC requirements on Partly Information on transactions recognized in accordance with the disclosure of information about transactions between JSC and observed Federal Law "Joint Stock Companies' as transactions, in which

persons belonging according to the Charter to top officials of joint there is an interest are disclosed in the Company's annual report, 2011 stock company, as well as transactions of the joint-stock company as well as on the official web site. with organizations where senior officials of a company directly or indirectly own 20 percent or more of the JSC’s capital stock, or to which such persons might otherwise have significant impact. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

Disclosure of information

y” OJSC 63 Presence in all internal documents of the company requirements Not observed an to disclose information about all transactions, which may affect mp

o market value of JSC shares. C d i

r 64 Presence of approved by the Board of Directors internal document Partly observed You can find section dedicated to inside information in Provision

“G on the use of essential information about company’s activities, “Information policy of JSC Grid Company”. shares and other securities, transactions with them, which is not openly available for public, and disclosure of which could have a significant influence on market value of shares and other papers of the company.

Control over financial and economic activity 150 65 Presence of approved by the Board of Directors procedures on an Partly observed By an order of the General Director of the Company an inspection internal control over financial and economic activity of of branches of JSC "Grid Company" is approved. the company.

66 Presence of a Joint Stock Company’s special unit, which ensures Observed Company has established a special unit, ensure - compliance with internal control procedures (supervision and which ensures a compliance with internal control procedures - auditing service). Internal Audit Unit.

67 Presence in internal documents of the Company requirements on Not observed determining of structure and composition of the supervision and auditing service of JSC by the Board of Directors. ENERGY OF LIFE 68 Absence in supervision and audit service persons who were found Observed guilty of committing crimes in the area of economic activity or crimes against government, interests of public service and local government services, or to which administrative penalties for violations in business or in finance, taxes and levies, stock market were applied. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

69 Absence of persons in supervision and audit Service, who are Observed members of the executive bodies of JSC, as well as persons who ort

are members, General director (manager), members of governing p

bodies or employees of the legal entity competing with the JSC. re

70 Presence of a deadline in the internal documents of the company Partly Observed There is an Order to conduct an inspection of JSC "Grid company" for submission to supervision and audit service of documents and branches established for documentary, factual, integrated, thematic, ANNUAL materials for the evaluation of carried-out financial transactions, scheduled, unscheduled inspections structural units interaction as well as responsibility of officials and employees of the Company order on inspections conduct, duties of managers, professionals, for their failure to provide such materials within specified period. departments of branches to provide documents, responsibility for violation of the terms and obligations under the Order.

71 Presence in internal documents of the company of an obligation of Not Observed the Auditing Service to report any violations revealed by the audit 151 committee, and in case of its absence, to report to the Board of Directors of the JSC.

72 Presence of requirements in the Charter of JSC on preliminary Not Observed assessment by supervision and auditing service an expediency of transactions that were not included in a financial and business plan of the company (irregular operations). 2011 73 Presence of an order in internal documents of the Company to Not observed coordinate irregular operations with the Board of Directors.

74 Presence of approved by the Board of Directors of the internal Observed Board of Directors approved Regulations on the Audit Commission document which defines inspection procedures of financial- of JSC "Grid Company". economic activity of JSC by the Audit Commission. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Corporate Code of Conduct Regulations Observed or not observed Notes

1 2 3 4

75 Fulfilment by the audit committee of an assessment of auditor's Not observed

y” OJSC report prior to its provision on general shareholders’ meeting. an mp

o Dividends C d i

r 76 Presence of an internal document approved by the Board of Directors Observed Board of Directors approved Regulations on Dividend policy of

“G that guides the Board of Directors for making recommendations JSC "Grid Company". on the amount of dividends (Regulation on dividend policy).

77 Presence in Regulations on dividend policy of the order to determine Not observed In Article 3 of the dividend policy of "Grid company" guidelines for minimum share of net profit of JSC, directed to dividend payment, determination of the amount of dividends are fixed. and conditions under which dividends on preferred shares are not paid or not paid in full, the amount of dividend is defined in 152 the Charter of JSC.

78 Publication of information concerning dividend policy of the JSC Observed Dividend Policy of JSC "Grid Company" Is posted on the Company's and changes made in a bulletin, provided by the Charter of the website. Company Charter does not have a Bulletin to publish company to publish notices of shareholders general meetings, information on shareholders general meetings. as well as placement of information on the official web site of joint-stock company. ENERGY OF LIFE 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

List of transactions approved in accordance with the Federal Law on " Joint Stock Companies" transactions, in which there was an interest, approved by the Board of Directors of the Company in 2011

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

1 Health resort vouchers purchase/sale agreement 4 237 787,50 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. ort Fardiev I.Sh. p re 2 Health resort vouchers purchase/sale agreement 4 567 745,00 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A.

Fardiev I.Sh. ANNUAL

3 Health resort vouchers purchase/sale agreement 4 371 251,00 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh.

4 Health resort vouchers purchase/sale agreement 4 828 013,50 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. 153 Fardiev I.Sh.

5 Health resort vouchers purchase/sale agreement 4 835 649,00 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh.

6 Health resort vouchers purchase/sale agreement 3 145 241,50 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh. 2011

7 Health resort vouchers purchase/sale agreement 4 835 649,00 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh.

8 Health resort vouchers purchase/sale agreement 4 872 276,50 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh.

9 Health resort vouchers purchase/sale agreement 4 237 787,50 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh.

10 Health resort vouchers purchase/sale agreement 1 411 501,00 Provider: OJSC "Generating company" Minnekhanova G.M. Record of 27.01.2011 № 13 in 2011 (a branch of “Balkysh" health resort) Sakhieva R.A. Fardiev I.Sh. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

11 Additional Agreement on placement of equipment, 369 825,28 Party 1: OJSC "Generating Company” Minnekhanova G.M. Record of 27.01.2011 № 13

y” OJSC on an extension of a term of the contract and For 11 months (Kazan CHPS-1 branch) Sakhieva R.A.

an establishing fees for the placement of equipment Fardiev I.Sh. mp

o 12 Supplementary Agreement about increase of 67 688,43 Contractor: Minnekhanova G.M. Record of 27.01.2011 № 13 C d

i the scope of work (preventive works to restore LLC TatAisEnergo Safiullin D. H., r serviceability of controllers) to contract for Fakhrutdinov A. R. “G technical maintenance of equipment an automated system of technical metering of electric power

13 Additional agreement to the contract to 505 603,00 Contractor: RT is represented Record of 27.01.2011 № 13 manufacture and broadcast materials on the OJSC "Noviy Vek" Broadcasting by the Ministry of materials about work of OJSC "Grid Company" company Land and Property 154 Regulations

14 Supplemental Agreement to extend the duration 82 133,48 Lessee: Minnekhanova G.M. Record of 27.01.2011 № 13 and changes in rent of non-residential premises For 11 months OJSC "Tatenergosbit" Safiullin D. H. floor space of 39.61m² located in the RT, Stolbische village, Severnaya str.15

15 Supplemental Agreement to extend the term 87 595,70 Lessee: Minnekhanova G.M. Record of 27.01.2011 № 13 of premises rental floor space of 130 m², non- For 11 months OJSC "Tatenergosbit" Safiullin D. H. residential building at urban settlement , Lenin Str. 2a ENERGY OF LIFE 16 Contract for the provision of information services 3 500 000,00 Contractor: Minnekhanova G.M. Record of 27.01.2011 № 13 on consumers of electrical energy and power on OJSC "Tatenergosbit" Safiullin D. H. the territory of the Republic of Tatarstan

17 Contract for the provision of consulting services on 183 018,00 Contractor: Minnekhanova G.M. Record of 27.01.2011 № 13 «WB713 Application Development for WebShere Autonomous Non-Commercial Safiullin D. H. Enterprise Service Bus V7 » Organization Volga Regional Centre for Training “Energetik”

18 Contract for the provision of educational services 900 375,00 Contractor: Autonomous Non- Minnekhanova G.M. Record of 27.01.2011 № 13 (no VAT tax) Commercial Organization Volga Safiullin D. H. Regional Centre for Training “Energetik” 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

19 The contract to insure civil responsibility of the 300 000,00 Contractor: Minnekhanova G.M. Record of 27.01.2011 № 13 organization, which operates HIF (no VAT tax) LLC ASCO "Insurance" ort p

20 Agreement providing spa services on the basis 12 020 000,00 Seller: Minnekhanova G.M. Record of 27.01.2011 № 13 re of acquired vouchers (no VAT tax) CJSC "Zolotoi Kolos"

21 Contract for delivery of software products and Total amount for Contractor: RT is represented Record of 27.01.2011 № 13 transfer of rights to use programs on computers purchase of software: OJSC "ICL-KME CS" by the Ministry ANNUAL 1 571 625,58 of Land (incl. VAT) and Property Software usage fees: Regulations 7 042 834,40 (no VAT tax) 155

22 Agreement on using Psycho-physiological 211 185,78 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 laboratory services to examine employees health Autonomous Non-Commercial Safiullin D. H. Organization Volga Regional Centre for Training “Energetik”

23 Contract to provide training services for employees 1 781 614,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14

(no VAT tax) Autonomous Non-Commercial Safiullin D. H. 2011 Organization Volga Regional Centre for Training “Energetik”

24 Contract to provide training services for employees 989 704,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 (no VAT tax) Autonomous Non-Commercial Safiullin D. H. Organization Volga Regional Centre for Training “Energetik”

25 Contract to provide training services for employees 723 859,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 (no VAT tax) Autonomous Non-Commercial Safiullin D. H. Organization Volga Regional Centre for Training “Energetik” Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

26 Contract to provide training services for employees 1 655 440,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14

y” OJSC (no VAT tax) Autonomous Non-Commercial Safiullin D. H.

an Organization Volga Regional Centre for mp

o Training “Energetik” C d i 27 Contract to provide training services for employees 893 571,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 r

“G (no VAT tax) Autonomous Non-Commercial Safiullin D. H. Organization Volga Regional Centre for Training “Energetik”

28 Contract to provide training services for employees 1 019 132,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 (no VAT) Autonomous Non-Commercial Safiullin D. H. Organization Volga Regional Centre 156 for Training “Energetik”

29 Additional agreement to a contract for service 6 816 745,08 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 operations with automated dispatch control For the year LLC "TatAISEnergo" Safiullin D. H. system (ADCS) Fakhrutdinov A. R.

30 Agreement on compensation of costs of LLC 30 746,54 Party-1: Minnekhanova G.M. Record of 11.02.2011 № 14 "TatAISEnergo" associated with equipment LLC "TatAISEnergo" Safiullin D. H. maintenance services provided by third parties. Fakhrutdinov A. R.

31 Service contract 1 208 800,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H.

ENERGY OF LIFE Fakhrutdinov A. R.

32 Service contract 1 415 320,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

33 Service contract 1 852 650,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

34 Service contract 1 314 990,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

35 Service contract 4 126 760,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. ort Fakhrutdinov A. R. p re 36 Service contract 1 457 350,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H.

Fakhrutdinov A. R. ANNUAL

37 Service contract 1 035 110,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

38 Service contract 1 400 150,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. 157 Fakhrutdinov A. R.

39 Service contract 1 253 160,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

40 Service contract 31 768 430,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R. 2011

41 Internet access provision 33 660,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

42 Internet access provision 33 660,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

43 Internet access provision 24 070,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

44 Internet access provision 25 350,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14

y” OJSC services LLC "TatAISEnergo" Safiullin D. H.

an Fakhrutdinov A. R. mp o 45 Internet access provision 81 280,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 C d

i services LLC "TatAISEnergo" Safiullin D. H. r Fakhrutdinov A. R. “G 46 Internet access provision 27 870,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

47 Internet access provision 112 130,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 158 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

48 Internet access provision 41 560,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

49 Internet access provision 50 980,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. Fakhrutdinov A. R.

50 Internet access provision 256 650,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 services LLC "TatAISEnergo" Safiullin D. H. ENERGY OF LIFE Fakhrutdinov A. R.

51 Contract for software support service of record 133 810,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R.

52 Contract for software support service of record 150 410,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R.

53 Contract for software support service of record 131 620,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

54 Contract for software support service of record 139 380,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. ort

system “DELO” Fakhrutdinov A. R. p re 55 Contract for software support service of record 151 720,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R. ANNUAL 56 Contract for software support service of record 154 250,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R.

57 Contract for software support service of record 128 150,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. 159 system “DELO” Fakhrutdinov A. R.

58 Contract for software support service of record 129 300,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R.

59 Contract for software support service of record 228 290,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R. 2011

60 Contract for software support service of record 410 990,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 management and document flow automation LLC "TatAISEnergo" Safiullin D. H. system “DELO” Fakhrutdinov A. R.

61 The contract for the provision of services on 42 890,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

62 The contract for the provision of services on 8 020,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

63 The contract for the provision of services on 10 350,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

64 The contract for the provision of services on 12 660,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14

y” OJSC manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H.

an certificates of electronic digital signature (DS) Fakhrutdinov A. R. mp o 65 The contract for the provision of services on 12 660,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 C d

i manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. r certificates of electronic digital signature (DS) Fakhrutdinov A. R. “G 66 The contract for the provision of services on 28 330,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

67 The contract for the provision of services on 18 830,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 160 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

68 The contract for the provision of services on 25 840,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

69 The contract for the provision of services on 21 960,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. certificates of electronic digital signature (DS) Fakhrutdinov A. R.

70 The contract for the provision of services on 77 790,00 Contractor: Minnekhanova G.M. Record of 11.02.2011 № 14 manufacturing and maintenance of public key LLC "TatAISEnergo" Safiullin D. H. ENERGY OF LIFE certificates of electronic digital signature (DS) Fakhrutdinov A. R.

71 Sub-license agreement on computer software 143 100,00 Licensee-partner: Minnekhanova G.M. Record of 11.02.2011 № 14 usage — a license "business-enterprise" (DBMS LLC "TatAISEnergo" Safiullin D. H. ORACLE) Fakhrutdinov A. R.

72 Sub-license agreement on computer software 10 620,00 Licensee-partner: Minnekhanova G.M. Record of 11.02.2011 № 14 usage — a license "business-enterprise" (DBMS LLC "TatAISEnergo" Safiullin D. H. ORACLE) Fakhrutdinov A. R. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

73 Sub-license agreement on computer software 119 800,00 Licensee-partner: Minnekhanova G.M. Record of 11.02.2011 № 14 usage — a license "business-enterprise" (DBMS LLC "TatAISEnergo" Safiullin D. H. ort

ORACLE) Fakhrutdinov A. R. p re 74 Sub-license agreement on computer software 294 790,00 Licensee-partner: Minnekhanova G.M. Record of 11.02.2011 № 14 usage — a license "business-enterprise" (DBMS LLC "TatAISEnergo" Safiullin D. H. ORACLE) Fakhrutdinov A. R. ANNUAL

75 Sub-license agreement on computer software 141 400,00 Licensee-partner: Minnekhanova G.M. Record of 11.02.2011 № 14 usage — a license "business-enterprise" (DBMS LLC "TatAISEnergo" Safiullin D. H. ORACLE) Fakhrutdinov A. R.

76 Supplementary Agreement to Goods Supply 913 883,00 Provider: LLC Production and Minnekhanova G.M. Record of 11.02.2011 № 14 Contract dated 06.05.2010 № 2010/D270/94 on technical completing enterprise 161 maximum contract price increase (OOO Predpriyatiye Proizvodstvenno Technitcheskoi komplektatsii)

77 Additional agreement to the contract on extra 715 692,00 Provider: LLC Production and Minnekhanova G.M. Record of 11.02.2011 № 14 computer goods supply technical completing enterprise (OOO Predpriyatiye Proizvodstvenno Technitcheskoi komplektatsii)

78 Contract for the provision of editorial services 10 000,00 Contractor: OJSC "Tatmedia" RT is represented Record of 11.02.2011 № 14 2011 placement of articles in the newspaper "Novaya by the Ministry of zizhn" ("Yanga tormish") Land and Property Regulations

79 Contract for the provision of editorial services 7 080,00 Contractor: OJSC "Tatmedia" RT is represented Record of 11.02.2011 № 14 placement of articles (advertisments) in the by the Ministry of newspaper "Novaya zhizn" ("Yanga tormish") Land and Property Regulations

80 Additional agreement to the lease of nonresidential 84 913, 73 Contractor: OJSC "Tatenergosbit" Minnekhanova G.M. Record of 11.02.2011 № 14 buildings, total floorspace of 83.18 square meters. for 11 months Safiullin D. H. in the building of Atninskiy Radioelectronic facility, by address: RT, Atninsky district, B. Atnya village, Sovetskaya Str. 83, on prolongation of contract term Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

81 Property insurance contract against fire and other 6 500 000,00 Insurer: "ASKO" Insurance group Minnekhanova G.M. Record of 11.02.2011 № 14

y” OJSC hazards (no VAT tax) an mp o 82 Additional agreement on one student training 7 960,50 Contractor: Kazan power engineering Fardiev I.Sh. Record of 24.02.2011 № 17 C d

i costs in 2011 for professional training contract (no VAT tax) college r

“G 83 Additional agreement on cost of training and 15 921,00 for Contractor: Kazan Power Engineering Fardiev I.Sh. Record of 24.02.2011 № 17 accommodation of students in 2011, concerning education service college professional training contract (no VAT) 638,75 For accommodation (incl. VAT)

162 84 Additional agreement on one student training 7 960,50 (no VAT tax) Contractor: Kazan Power Engineering Fardiev I.Sh. Record of 24.02.2011 № 17 costs in 2011, concerning professional training college contract

85 Additional agreement on three students training 47 763,00 Contractor: Kazan Power Engineering Fardiev I.Sh. Record of 24.02.2011 № 17 costs in 2011, concerning professional training (no VAT tax) college contract

86 Professional training of employees contract 1 403 950,00 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.02.2011 № 17 (no VAT tax) Commercial Organization “Energetik” Safiullin D. H. Volga Regional Centre for Training

87 Professional training of employees contract 1 111 367,00 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.02.2011 № 17 ENERGY OF LIFE (no VAT tax) Commercial Organization “Energetik” Safiullin D. H. Volga Regional Centre for Training

88 Supplementary Agreement on an increase of the 6 217,00 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.02.2011 № 17 amount of the contract to provide educational (no VAT tax) Commercial Organization “Energetik” Safiullin D. H. services Volga Regional Centre for Training

89 Agreement on using Psycho-physiological 165 672,00 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.02.2011 № 17 laboratory services to examine employees health Commercial Organization “Energetik” Safiullin D. H. Volga Regional Centre for Training 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

90 Agreement on using Psycho-physiological 73 738,20 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.02.2011 № 17 laboratory services to examine employees health Commercial Organization “Energetik” Safiullin D. H. ort Volga Regional Centre for Training p re 91 Agreement on using Psycho-physiological 43 488,90 Contractor: Autonomous Non- Minnekhanova G.M. Record of 24.03.2011 № 17 laboratory services to examine employees health Commercial Organization “Energetik” Safiullin D. H.

Volga Regional Centre for Training ANNUAL

92 Vehicle owners civil liability insurance contract 2 520 124,05 Insurer: LLC ASKO Insurance group Minnekhanova G.M. Record of 24.03.2011 № 17 (no VAT tax)

93 Goods supply contract 29 480 025,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

94 Goods supply contract 27 397 524,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 163 completing enterprise

95 Goods supply contract 36 102 005,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

96 Goods supply contract 39 920 603,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise 2011 97 Goods supply contract 32 718 420,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

98 Goods supply contract 36 592 370,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

99 Goods supply contract 447 064,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

100 Goods supply contract 2 803 665,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

101 Goods supply contract 1 028 940,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

102 Goods supply contract 27 781 213,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

103 Longtime production goods supply contract 1 492 353,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17

y” OJSC completing enterprise an

mp 104 Longtime production goods supply contract 772 774,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 o completing enterprise C d i

r 105 Longtime production goods supply contract 1 993 916,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 “G completing enterprise

106 Longtime production goods supply contract 1 574 048,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

107 Longtime production goods supply contract 1 403 465,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise 164 108 Longtime production goods supply contract 1 845 306,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

109 Longtime production goods supply contract 36 848 792,00 Provider: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 completing enterprise

110 GK transformer oil safe storage responsibility 0.1% of the amount Of Depositor: LLC Production and technical Minnekhanova G.M. Record of 24.03.2011 № 17 contract sold goods during a completing enterprise month

111 Contract concerning removal of solid waste and 102 938,07 Enterprise: OJSC "Buinsk Multipurpose RT is represented Record of 24.03.2011 № 17

ENERGY OF LIFE storage of solid waste at landfill with volume of (no VAT tax) industrial enterprise of Housing and by the Ministry of 312.35 cubic meters. Communal Services (Injenerniye seti )” Land and Property Regulations

112 Agreement on recalculation of rent due to an 96 878,31 Lessee: OJSC "TatEnergosbit" Minnekhanova G.M. Record of 24.03.2011 № 17 increase of tariffs for energy and utility services Safiullin D.H. to the contract of rental in the administrative and production building at urban settlement Urussu, Lenin str. 2a, area of 130 sq. m.

113 Lease agreement of nonresidential premises 206 405,21 Lessor: OJSC "TatEnergosbit" Minnekhanova G.M. Record of 24.03.2011 № 17 of 39.6 square meters. m on the 2nd floor of a For 11 months Safiullin D.H. building, located at Nurlat town, Gagarin Str. 13a 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

114 Property purchase and sale agreement: cable 438 080,10 Seller: OJSC "Kazan heat distribution Minnekhanova G.M. Record of 24.03.2011 № 17 trend of 4 threads (type AABLU 4x95) length L company" ort = 125 m from the TP2776 to an administrative p building of the West operational area of OJSC re "KTK" on Vosstaniya str.

115 Supplemental Agreement to amend the price on 92 640,00 Contractor: OJSC "Tatmedia’s" branch RT is represented Record of 24.03.2011 № 17 ANNUAL printing works (Idel-Press publishing house) by the Ministry of Land and Property Regulations

116 Contract on provision of information space in 10 620,00 Publisher: OJSC "Tatmedia’s "Branch RT is represented Record of 24.03.2011 № 17 "Chistopol skiye Izvestia “ newspaper (Chistopolskiye Izvestiya newspaper) by the Ministry of Land and Property 165 Regulations

117 Contract on provision of information space in 3 612,20 Contractor: OJSC "Tatmedia’s" Branch RT is represented Record of 24.03.2011 № 17 "Chistopol skiye Izvestia “ newspaper (Duslik newspaper) by the Ministry of Land and Property Regulations

118 Contract on provision of information space in 7 080,00 Contractor: OJSC "Tatmedia’s" Branch RT is represented Record of 24.03.2011 № 17 2011 "Duslik“ newspaper (Nurlat Broadcasting company) by the Ministry of Land and Property Regulations

119 The contract for placement of information, video 77 880,00 Contractor: OJSC "Tatmedia’s" Branch RT is represented Record of 24.03.2011 № 17 materials, advertising services on television (Nurlat Broadcasting company) by the Ministry of Land and Property Regulations

120 Contract on provision of editorial and publishing 8 260,00 Contractor: OJSC "Tatmedia’s" Branch RT is represented Record of 24.03.2011 № 17 services and to publish industrial materials in (Znamya Truda newspaper) by the Ministry of "Znamya truda" newspaper Land and Property Regulations Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

121 Supplementary Agreement to sublicense contract 11 000,00 Licensee-partner: LLC TatAisEnergo Minnekhanova G.M. Record of 24.03.2011 № 17

y” OJSC (renewal of CIPK licenses Signal-Com CSP v.2.0.x (no VAT tax) Safiullin D.H.

an to CryptoPro CSP v.3.6.x) Fakhrutdinov A.R. mp o 122 Contract for maintenance of Automated 518 686,11 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 C d i Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. r

“G metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

123 Contract for maintenance of Automated 1 529 349,03 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System 166 124 Contract for maintenance of Automated 473 529,87 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

125 Contract for maintenance of Automated 909 714,51 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

126 Contract for maintenance of Automated 1 367 850,69 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17

ENERGY OF LIFE Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

127 Contract for maintenance of Automated 880 796,25 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

128 Contract for maintenance of Automated 566 550,45 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

129 Contract for maintenance of Automated 691 319,52 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. ort metering equipment in the framework of Fakhrutdinov A.R. p Measurement and Information System re

130 Contract for maintenance of An automated system 757 864,44 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17

of technical metering LLC "TatAISEnergo" Safiullin D.H. ANNUAL Fakhrutdinov A.R.

131 Contract for maintenance of An automated system 3 035 887,36 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 of technical metering LLC "TatAISEnergo" Safiullin D.H. Fakhrutdinov A.R.

132 Contract for maintenance of An automated system 5 084 159,59 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 167 of technical metering LLC "TatAISEnergo" Safiullin D.H. Fakhrutdinov A.R.

133 Contract for maintenance of Automated 5 731 302,30 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

134 Contract for maintenance of Automated 4 635 393,71 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 2011 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

135 Contract for maintenance of Automated 5 127 236,97 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System

136 Contract for maintenance of Automated 911 917,10 Contractor: Minnekhanova G.M. Record of 24.03.2011 № 17 Informational-Measuring System’s Revenue LLC "TatAISEnergo" Safiullin D.H. metering equipment in the framework of Fakhrutdinov A.R. Measurement and Information System Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

137 Contract for removal and placement (burial)of 5 983,56 Enterprise: OJSC "Dzhalil" housing and RT is represented Record of 24.03.2011 № 17

y” OJSC solid waste and industrial waste in the volume (no VAT tax) communal services (Blagoustroistvo) by the Ministry of an of 9.0 cubic meters for year Land and Property mp

o Regulations C d i 138 Service contract for the placement of equipment 6 000,00 for year Customer: OJSC "Akibank" Minnekhanova G.M. Record of 24.03.2011 № 17 r

“G (self-service payment Terminal (ATM) SFOUR Eco) Fardiev I.Sh.

139 Supplementary Agreement on the transfer of 300 000 000,00 Bank: OJSC "Ak Bars Bank" Sakhieva R.A. Record of 24.03.2011 № 17 amount to the term deposit contract (no VAT tax)

140 Contract on delivery of goods (electrical 2 389 781,00 Provider: LLC Production and Technical Minnekhanova G.M. Record of 17.05.2011 № 21 equipment) Completing Enterprise

168 141 Contract on delivery of goods (electrical 2 640 930,00 Provider: LLC Production and Technical Minnekhanova G.M. Record of 17.05.2011 № 21 equipment) Completing Enterprise

142 Contract on delivery of goods (electrical 95 477,00 Provider: LLC Production and Technical Minnekhanova G.M. Record of 17.05.2011 № 21 equipment) Completing Enterprise

143 Additional agreement on three students training 23 881,50 Contractor: Kazan Power Engineering Fardiev I.Sh. Record of 17.05.2011 № 21 costs in 2011, concerning professional training (no VAT tax) College contract

144 Additional agreement on three students training 31 842,00 Contractor: Kazan Power Engineering Fardiev I.Sh. Record of 17.05.2011 № 21 costs in 2011, concerning professional training (no VAT tax) College ENERGY OF LIFE contract

145 Additional agreement on cost of training and 63 684,00 Contractor: Kazan Power Engineering Fardiev I. Sh. Record of 17.05.2011 № 21 accommodation of students in 2011, concerning For studies College professional training contract (no VAT tax) 638,75 For accommodation (VAT incl.) 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

146 Additional agreement to contract for the production 99 682,00 Contractor: OJSC "Tatarstan New Age" RT is represented Record of 17.05.2011 № 21 of promotional audio materials and / or a provision tele-radio broadcasting company by the Ministry of ort of air time on the radio "Tatarstan" New Age "(TNV) Land and Property p in order to place adverts. Regulations re

147 Contract on manufacture of informative videos and 337 000,00 Contractor: OJSC "Tatarstan New Age" RT is represented Record of 17.05.2011 № 21

a provision of air time on TV "Tatarstan" New Age tele-radio broadcasting company by the Ministry of ANNUAL " (TNV) in order to place information materials Land and Property Regulations

148 Contract on water output and sewage reception According to Subsubsider: RT is represented Record of 17.05.2011 № 21 Measurements OJSC "TatEnergosbit" by the Ministry of Land and Property Regulations 169

149 Additional agreement to prolong the validity of 801 126,92 Lessee: OJSC “Tatenergosbyt” Minnekhanova G.M., Record of 17.05.2011 № 21 agreement to Lease Contract of non-residential Safiullin D.Kh. premises, which cover 65.60 sqm in the gatehouse building and covers 51.70 sqm in the premise of the Northern DZ of Kazanskie electric mains, located at 47, Tsentralno-Mariupolskaya Str., Kazan 2011 150 Contractor contract to perform maintenance 15 295,77 Customer: OJSC “Tatenergosbyt” Minnekhanova G.M., Record of 17.05.2011 № 21 works of cable communication lines (CCL) Safiullin D.Kh.

151 Additional agreement on change of maintenance 19 957,86 Customer: OJSC “Tatenergosbyt” Minnekhanova G.M., Record of 17.05.2011 № 21 works of poled CCL to the agreement Safiullin D.Kh.

152 Services agreement to provide information 2 596,00 Contractor: OJSC “Tatmedia” (branch of RT is represented Record of 17.05.2011 № 21 space to publish the article in “Alkeevskie vesti” Edition of “Elki Haberleri” (“Alkeevskie by the Ministry of newspaper vesti”) newspaper) Land and Property Regulations

153 Services agreement to provide information 5 900,00 Contractor: OJSC “Tatmedia” (branch of RT is represented Record of 17.05.2011 № 21 space to publish the article in “Alkeevskie vesti” Edition of “Elki Haberleri” (“Alkeevskie by the Ministry of newspaper vesti”) newspaper) Land and Property Regulations Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

154 Agreement to provide the information space 5 451,60 Contractor: OJSC “Tatmedia” (branch RT is represented Record of 17.05.2011 № 21

y” OJSC to publish the article in “Sheshminskaya nov” of Edition of “Sheshminskaya nov” by the Ministry of

an newspaper newspaper) Land and Property

mp Regulations o C d

i 155 Agreement to provide the information space in 5 900,00 Contractor: OJSC “Tatmedia” (branch of RT is represented Record of 17.05.2011 № 21 r “Selskaya nov” newspaper Edition of “Selskaya nov” newspaper) by the Ministry of “G Land and Property Regulations

156 Services agreement to place the information in 5 900,00 Contractor: OJSC “Tatmedia” (branch of RT is represented Record of 17.05.2011 № 21 “Zarya (Tan)” newspaper Edition of “Zarya” newspaper) by the Ministry of Land and Property 170 Regulations

157 Agreement on advertising informational servicing 7 080,00 Contractor: OJSC “Tatmedia” (branch RT is represented Record of 17.05.2011 № 21 (placement of film-based advertisements) of television and radio broadcasting by the Ministry of company “Chistopol TV”) Land and Property Regulations

158 Services agreement to teach three employees 17,085.00 (VAT is not Contractor: ANO PRTsPK “Energetik” Minnekhanova G.M., Record of 17.05.2011 № 21 on the career development courses of specialists imposed) Safiullin D.Kh. “Pre-attestation preparation on industrial safety on the facilities, accountable to the lifting structures” with accreditation in TAC ENERGY OF LIFE 159 Additional agreement to the agreement on 12 264,92 Contractor: Contractor: OJSC Minnekhanova G.M., Record of 17.05.2011 № 21 organization of flights on aircraft — helicopter for hour “Generating Company” (branch of Sakhieva R.A., Robinson R-44 Raven I “Naberezhnye Chelny CHPS”) Fardiev I.Sh. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

160 Agreement on replacement of the party to the 1 734.56 Lessor: OJSC “Generating Company” Minnekhanova G.M., Record of 17.05.2011 № 21 lease contract of parts of the land plot covering for 3 months (branch of “Zainskaya EMCZ”) Sakhieva R.A., ort total area of 767 sqm, including under the support Fardiev I.Sh. p leg No. 1 of 500 kV OL Zainsk-Bugulma (Zainskaya re EMCZ-Bugulma) covering the area of 378 sqm and under the support leg No. 1 of 500 kV OL Zainsk-Kuybyshev (Zainskaya EMCZ-Kuybyshev), ANNUAL covering the total area of 389 sqm located at: 423520, Russia, Republic of Tatarstan, Zainsk, Industrial area territory

161 Lease contract of the parts of the land plot 6 360.07 Lessor: OJSC “Generating Company” Minnekhanova G.M., Record of 17.05.2011 № 21 covering the total area of 767 sqm, including under for 11 months (branch of “Zainskaya EMCZ”) Sakhieva R.A., 171 the support leg No. 1 of 500 kV OL Zainsk-Bugulma Fardiev I.Sh. (Zainskaya EMCZ-Bugulma), covering the area of 378 sqm and under the support leg No. 1 of 500 kV OL Zainsk-Kuybyshev (Zainskaya EMCZ- Kuybyshev), covering the total area of 389 sqm located at: 423520, Russia, Republic of Tatarstan, Zainsk, Industrial area territory 2011 162 Services agreement to replace (remove, install, 612,00 Customer: OJSC “Almetyevsk- RT is represented Record of 17.05.2011 № 21 accept) the electricity meters amounting to 1 Vodokanal” by the Ministry of device Land and Property Regulations

163 Consulting services agreement on operations 19 200,00 Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 17.05.2011 № 21 with “Business-Enterprise” software Safiullin D.Kh., Fakhrutdinov A.R.

164 Additional agreement on change of the 136 739,00 Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 17.05.2011 № 21 composition of the accompanying software to Safiullin D.Kh., the services agreement Fakhrutdinov A.R. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

165 Additional agreement to prolong the validity of 169 881,36 Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 17.05.2011 № 21

y” OJSC information transfer organization agreement Safiullin D.Kh.,

an Fakhrutdinov A.R. mp o 166 Additional agreement to prolong the validity of 265 624,26 Party 1: OJSC “Generating company” Minnekhanova G.M., Record of 24.06.2011 № 23 C d i the equipment placement agreement (KTP-630- (branch of “Kazan CHPS-2”) Sakhieva R.A., r

“G 10/0.4kV, BKTP-630kVA) Fardiev I.Sh.

167 Additional agreement to prolong the premise No. 58 809.63 for 11 Lessee: OJSC “Tatenergosbyt” Minnekhanova G.M., Record of 24.06.2011 № 23 9 lease agreement in the administrative building months Safiullin D.Kh. of Almetyevsk EMCZ, located at: 423450, RT, Almetyevsk, Shevchenko Str., bld. 5a

172 168 Lease agreement of non-residential premise 129 641.51 for 11 Lessor: OJSC “Tatenergosbyt” Minnekhanova G.M., Record of 24.06.2011 № 23 (garage) covering 46.5 sqm in the administrative months Safiullin D.Kh. building located at: RT, Arsk, Sibirskiy tract Str., bld. 22

169 Facility Maintenance Agreement (HV line-6 kV 109 659,87 Customer: OJSC “Tatneft” n.a. V.D, Khamaev A.K. Record of 24.06.2011 № 23 feeder 101-20) Shashin

170 Fixed-term (deposit) agreement of monetary funds 300 000 000,00 Bank: OJSC “AK BARS” BANK Sakhieva R.A. Record of 24.06.2011 № 23

171 Additional agreement to grant non-exclusive right 70,700.00 (VAT is not Licensee-partner: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 (license) to use programs for computing machines imposed) Safiullin D.Kh., (licenses of “BESINESS-Enterprise” (DBMS Fakhrutdinov A.R. ENERGY OF LIFE ORACLE), options “Electronic digital signature and encrypting” to sub-license agreement

172 Additional agreement to change the terms and Pursuant to he price Operator: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 conditions of the agreement due to the approval list as f the event of Safiullin D.Kh., of the new edition of price list for the services of services rendering Fakhrutdinov A.R. Internet network access as well as the list and description of services to the services agreement to access Internet network 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

173 Additional agreement to change the terms and Pursuant to he price Operator: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 conditions of the agreement due to approval by list as f the event of Safiullin D.Kh., ort the operator of the new edition of price list for the services rendering Fakhrutdinov A.R. p Internet access as well as the list and description re of services to the agreement to render Internet access services ANNUAL 174 Additional agreement to render services under Pursuant to he price Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 the price list entered in May 1, 2011 list as f the event of Safiullin D.Kh., services rendering Fakhrutdinov A.R.

175 Additional agreement to render services under Pursuant to he price Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 the price list entered in May 1, 2011 list as f the event of Safiullin D.Kh., services rendering Fakhrutdinov A.R. 173

176 Additional agreement to render services under Pursuant to he price Contractor: LLC "TatAISEnergo" Minnekhanova G.M., Record of 24.06.2011 № 23 the price list entered in May 1, 2011 list as f the event of Safiullin D.Kh., services rendering Fakhrutdinov A.R.

177 Educational services agreement to teach on 7 200.00 (VAT is not Contractor: ANO “PRTsPK “Energetik”” Minnekhanova G.M., Record of 24.06.2011 № 23 the career development courses of “Managers imposed) Safiullin D.Kh.

and specialists of power stations, networks and 2011 service enterprises of electric power industry”

178 Collective medical insurance agreement 13 811,250.00 (VAT is Insurer: LLC “ASKO Insurance Group” Minnekhanova G.M., Record of 24.06.2011 № 23 not imposed)

179 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R.

180 “Power engineering” magazine subscription 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

181 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23

y” OJSC subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh.,

an Fardiev I.Sh.,

mp Fakhrutdinov A.R. o C d

i 182 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 r subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., “G Fardiev I.Sh., Fakhrutdinov A.R.

183 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., 174 Fakhrutdinov A.R.

184 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R.

185 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R.

ENERGY OF LIFE 186 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R.

187 “Power engineering of Tatarstan” magazine 164 793,20 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., Fardiev I.Sh., Fakhrutdinov A.R. 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

188 “Power engineering of Tatarstan” magazine 182 540,16 Provider: LLC ““Power engineering of Minnekhanova G.M., Record of 24.06.2011 № 23 subscription agreement (Nos. 20, 21, 22, 23) Tatarstan” magazine editor’s office” Safiullin D.Kh., ort Fardiev I.Sh., p Fakhrutdinov A.R. re

189 Good delivery agreement (electrical-technical 2 505 326,00 Provider: LLC “Enterprise of production- Minnekhanova G.M., Record of 24.06.2011 № 23

equipment to perform major works in distribution technical integration” ANNUAL network)

190 Good delivery agreement (electrical-technical 2 442 697,00 Provider: LLC “Enterprise of production- Minnekhanova G.M., Record of 24.06.2011 № 23 equipment to perform major works in distribution technical integration” network)

191 Good delivery agreement (electrical-technical 3 261 027,00 Provider: LLC “Enterprise of production- Minnekhanova G.M., Record of 24.06.2011 № 23 175 equipment to perform major works in distribution technical integration” network)

192 Property sale and purchase agreement: 3 578 704,00 Buyer: OJSC “Generating company” Fakhrutdinov A.R., Record of 02.09.2011 transmitter UPK-Ts under FOCL 16 commands (branch of “Kazan Heating Electrical Fardiev I.Sh., № 2/2011 amounting to 1, cabinet ShE-2607 215 001-002 Plant-1”) Khaziev R.M. UKhL 4 for FOCL (transmitter UPK-Ts for 16

commands) 1 piece, cabinet ShE-2607 215 002- 2011 002 UKhL 4 for FOCL (receiver UPK-Ts for 16 commands) 1 piece

193 Additional agreement on rent amount change to 7 900.45 for 10 Lessor: OJSC “Generating company” Fakhrutdinov A.R., Record of 02.09.2011 the lease contract months (branch of “Zainskaya EMCZ”) Fardiev I.Sh., № 2/2011 Khaziev R.M.

194 Agreement to transfer non-exclusive rights to use 2 095,230.00 Contractor: OJSC “ICL–KPO VS” Pakhomov A.M. Record of 02.09.2011 the program for computing machines (Kaspersky (excluding VAT) № 2/2011 TotalSpace Security Renewal, Kaspersky TotalSpace Security Base) Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

195 Additional agreement to prolong lease contract of 5 902.27 for 11 Lessor: OJSC “Kazan heat distribution Fakhrutdinov A.R. Record of 02.09.2011 y” OJSC the land plot covering 118 sqm, located at: Kazan, months company” № 2/2011 an Moskovskiy District, Gagarina Str., under the mp

o building of the transformer sub-station TS-1510 C d i 196 Additional agreement to change cost estimate 529,546.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 02.09.2011 r

“G to train staff to educational services agreement (excluding VAT) № 2/2011

197 Goods Supply Agreement (pipe-D-110*4.2 PE 80 of 13 701,51 Provider: OJSC “Almetyevsk-Water RT represented by Record of 02.09.2011 total length 36 m, D-110*5.3 PE 80 of total length services company” the Ministry of Land № 2/2011 42m, D-110*8.1 PE 80 of total length 6m) Property of RT

198 Additional agreement to perform works on 40 478,13 Contractor: LLC "TatAISEnergo" Safiullin D.Kh. Record of 23.12.2011 176 preventative renewal of the operating capacities Fakhrutdinov A.R. № 6/2011 of equipment of AIMS EPFM (s/st Chekalda)

199 Additional agreement to support the software to 114 848,33 Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the services agreement Fakhrutdinov A.R. № 6/2011

200 Additional agreement to support the software to 130 337,33 Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the support agreement Fakhrutdinov A.R. № 6/2011

201 Additional agreement to conduct works on the 1 354 002,64 Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 development and implementation of the technical Fakhrutdinov A.R. № 6/2011 solutions to integrate the software solution “IS “e-Net” technical connection module” and KIMS ENERGY OF LIFE Parus”

202 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011

203 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011

204 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011

205 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

206 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services to the agreement list Fakhrutdinov A.R. № 6/2011 ort p

207 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 re rendered services list Fakhrutdinov A.R. № 6/2011

208 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011 ANNUAL

209 Additional agreement on pricelist change for the Pursuant to the price Contractor: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 rendered services list Fakhrutdinov A.R. № 6/2011

210 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services 177

211 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services

212 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011

description of services 2011

213 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services

214 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services

215 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services

216 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

217 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011

y” OJSC the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011

an description of services mp o 218 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 C d

i the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 r description of services “G 219 Additional agreement on pricelist change for Pursuant to the price Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 the Internet access services as well as list and list Fakhrutdinov A.R. № 6/2011 description of services

220 Additional agreement to prolong the validity of the 375 339.36 for 11 Operator: LLC "TatAISEnergo" Safiullin D.Kh., Record of 23.12.2011 178 lease contract of the non-residential premises No. months Fakhrutdinov A.R. № 6/2011 125, No. 319 covering total area of 60 sqm, located in the building at: 420094, Kazan, Bondarenko Str., bld. 3

221 Services agreement on replacement (removal, 1 224,00 Customer: OJSC “Tatneft” n.a. V.D. Khamaev A.K. Record of 23.12.2011 installation, acceptance) of the devices of electric Shashin № 6/2011 power recording amounting to 2 pcs.

222 Lease contract of part of the non-residential 24 012.09 for 3 Lessee: OJSC “Tatenergosbyt” Safiullin D.Kh. Record of 23.12.2011 premise covering 21.60 sqm in the building of the months № 6/2011 repair-production base on PS Apastovo, letter

ENERGY OF LIFE 13A, inv. Number 191002, located at: RT, Apastovo, Dzhalilya Str., bld. 23

223 Additional agreement to prolong the validity of 717 179.43 for 11 Lessee: OJSC “Tatenergosbyt” Safiullin D.Kh. Record of 23.12.2011 the lease contract of the non-residential premises months № 6/2011 covering 137 sqm in the building of Kamsko- Ustinskiy DZ and Drozhzhanovskiy DZ, located at: RT, Kamsko-Ustinskiy District, Kuybyshevskiy Zaton, Tukaya Str., and RT, Drozhzhanovskiy District, Novoe Drozhzhanoe 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

224 Additional agreement to prolong the validity of 444.29 for 11 months Lessee: OJSC “Tatenergosbyt” Safiullin D.Kh. Record of 23.12.2011 the lease contract of the part of land plot covering № 6/2011 ort 250 sqm, under real property — administrative p building, located at: Zelenodolskiy District, Nurlaty re

225 Additional agreement to prolong the validity of 13 263.46 for 1 month Lessee: OJSC “Tatenergosbyt” Safiullin D.Kh. Record of 23.12.2011

the lease contract of the real property — non- № 6/2011 ANNUAL residential premises No. 6 covering 16.4 sqm., No. 7 covering 17.5 sqm, No. 5 covering 25.0 sqm, No. 4 covering 9.9 sqm, No. 3 covering 7.3 sqm, located on the first storey and No. 5 covering 13.5 sqm of the administrative building of the production base of municipal electric mains, located at: RT, 179 Mendeleevsk, Sovetskaya Str., bld. 1a

226 Additional agreement to change the validity of the 88 024.75 for 11 Lesee: OJSC “Tatenergosbyt” Safiullin D.Kh. Record of 23.12.2011 lease contract of the non-residential premises months № 6/2011 covering totally 39.61 sqm in the building of the administrative building of Prigorod DZ, located at: RT, Stolbishchi, Severnaya Str., bld. 15

227 Educational Services Agreement of one employee 3 960.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 2011 on the career development courses of specialists (excluding VAT) № 6/2011 “Pre-attestation training in “Industrial Power Safety” when operating heat supply electric installations and heat supply networks”

228 Educational Services Agreement of one employee 3 960.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 on the career development courses of specialists (excluding VAT) № 6/2011 “Pre-attestation training in “Industrial Power Safety” when operating heat supply electric installations and heat supply networks”

229 Educational Services Agreement of one employee 3 960.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 on the career development courses of specialists (excluding VAT) № 6/2011 “Industrial Power Safety when operating consumers’ electric power installations” Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

230 Educational Services Agreement of one employee 3 960.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 y” OJSC on the career development courses of specialists (excluding VAT) № 6/2011 an “Pre-attestation training in “Industrial Power mp

o Safety” when operating heat supply electric

C installations and heat supply networks” d i r

“G 231 Educational Services Agreement of one employee 9 000.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 on the career development courses of specialists (excluding VAT) № 6/2011 “Occupational Safety for managers and specialists of the enterprises, institutions and organizations”

232 Educational Services Agreement of one employee 4 367.00 Contractor: ANO “PRTsPK “Energetik”” Safiullin D.Kh. Record of 23.12.2011 on the career development courses of specialists (excluding VAT) № 6/2011 180 “Pre-attestation training in “Industrial Safety for the responsible for the electrical equipment of the enterprises” with the attestation in TAC

233 Additional agreement to the agreement on 12 603.58 for one Party 1: OJSC “Generating Fardiev I.Sh., Record of 23.12.2011 organization of flights on aircraft — helicopter flying hour company”(branch of “Naberezhnye Fakhrutdinov A.R., № 6/2011 Robinson R-04251 Chelny CHPS”) Khaziev R.M.

234 Agreement on organization of flights on aircraft 18 974.40 for one Party 1: OJSC “Generating Fardiev I.Sh., Record of 23.12.2011 — helicopter Bell-430 Serial Number 49042, flying hour company”(branch of “Naberezhnye Fakhrutdinov A.R., № 6/2011 RA-01929 Chelny CHPS”) Khaziev R.M.

ENERGY OF LIFE 235 Additional agreement to prolong the agreement 97 395.54 for 11 Party 1: OJSC “Generating company” Fardiev I.Sh., Record of 23.12.2011 on equipment placing dated June 11, 2009 No. months (branch of “Kazan СHPS-2”) Fakhrutdinov A.R., № 6/2011 D311-119 Khaziev R.M.

236 Lease contract of the land plot covering 30 sqm, 6 869.39 for 11 Lessor: OJSC “Generating company” Fardiev I.Sh., Record of 23.12.2011 located at: Kazan, Bratyev Kasimovykh Str. (boiler months (branch of “Kazan СHPS-1”) Fakhrutdinov A.R., № 6/2011 station “Gorki-2”) Khaziev R.M.

237 Services agreement using banking plastic cards Pursuant to the Bank: OJSC “AKIBANK” (branch in Fardiev I.Sh. Record of 23.12.2011 service rates Almetyevsk) № 6/2011 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

238 Additional agreement to prolong the validity of 328 172.46 for 11 Lessee: OJSC “AKIBANK” (branch in Fardiev I.Sh. Record of 23.12.2011 the lease contract of the non-residential premises months Kazan) № 6/2011 ort No. 119, No. 120 covering total area of 52.46 p sqm located in the building at: 420094, Kazan, re Bondarenko Str., bld. 3

239 Supply agreement of IBM server equipment, 732 127,80 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 ANNUAL uninterrupted power supplies and communication № 6/2011 equipment

240 Supply agreement of IBM server equipment, 789 208,45 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment 181 241 Supply agreement of IBM server equipment, 1 060 030,81 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment

242 Supply agreement of IBM server equipment, 732 127,81 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment

243 Supply agreement of IBM server equipment, 879 550,65 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 2011 uninterrupted power supplies and communication № 6/2011 equipment

244 Supply agreement of IBM server equipment, 1 447 974,01 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment

245 Supply agreement of IBM server equipment, 782 836,03 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

№ Deal Type / subject of the transaction Amount of Contractor Interested parties Approved by the Board Transaction of Directors including VAT (rub.)

246 Supply agreement of IBM server equipment, 805 516,82 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 y” OJSC uninterrupted power supplies and communication № 6/2011 an equipment mp o

C 247 Supply agreement of IBM server equipment, 732 127,80 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 d i uninterrupted power supplies and communication № 6/2011 r

“G equipment

248 Supply agreement of IBM server equipment, 2 205 428,21 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 uninterrupted power supplies and communication № 6/2011 equipment

249 Supply agreement of technological server 1 019 813,86 Provider: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 182 equipment № 6/2011 250 Work contract on the development and 2 991 300,00 Contractor: OJSC “ICL – KPO VS” Pakhomov A.M. Record of 23.12.2011 implementation of the internal information portal № 6/2011 of OJSC “Network company” based on software of MicrosoftS harePoint 2010 and MicrosoftL ync 2010

251 Agreement to consider and approve the project of 48 942,87 Contractor: OJSC “Kazan heat network Fakhrutdinov A.R. Record of 23.12.2011 external and internal heat supply networks, IHP company” № 6/2011 with metering station of consumed heat energy

252 Services agreement to accept and program the 89 700,00 Customer: OJSC “Almetyevskie heating Evseev A.N. Record of 23.12.2011 electric power metering devices amounting to 115 networks” № 6/2011 ENERGY OF LIFE units (3-phased direct connection electric power metering devices)

253 Services agreement on programming of the 28 189,68 Customer: OJSC “Baltasinskoe RT represented by Record of 23.12.2011 electric power metering devices amounting to Municipal Manufacturing Enterprise the Ministry of Land № 6/2011 73 units Housing and Public Utilities” Property of RT 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re CONTACT INFORMATION INFORMATION ABOUT COMPANY’S AUDITOR INFORMATION ON COMPANY’S REGISTRAR ANNUAL Full company’s name: Name: Name: Open Joint-Stock Company “Grid company” Limited Liability Company “FAC “Povolzhye” Kazan branch of Limited Liability Company “Euro-Asian Registrar”. Information on state registration: state registration Legal address: authority: 10 Pr. Yamasheva str., 420080, Kazan, Republic of Tatarstan Legal address: State Registration Chamber at the Ministry of Justice of 6 Vishnevskogo Str., 420043, Kazan, Republic of 183 RT, state registration date: December 11, 2001, number of Mail address: Tatarstan state registration certificate: 3150/k (50-02) 10 Pr. Yamasheva str., 420080, Kazan, Republic of Tatarstan Mail address: Legal address: Registration number of the entry into the register of 6 Vishnevskogo Str., 420043, Kazan, Republic of 3 Bondarenko Str., 420094, Kazan, Republic of Tatarstan, auditors and auditing organizations of self-regulatory Tatarstan organization of auditors NP “Institute of Professional Mail address: auditors”: Contact phone:

3 Bondarenko Str., 420094, Kazan, Republic of Tatarstan, No. 10202014708 dated December 4, 2009 (843) 236-63-66, 236-27-52 (fax) 2011

General Director’s reception: License: (843) 291-85-59, 291-85-69 (fax) To conduct activity on the register keeping of the holders of the securities No. 10-000-1-00332 issued by the Federal Corporate Relations Department: Service for Financial Markets on March 10, 2005 without (843) 291-85-91, 291-82-25. limitation of validity period. Company’s Mission and Strategic Targets \ Key Events – 2011 \ 1. General Information on Company \ 2. Equity Capital

glossary

Used abbreviations

AIMS EPFM – Automated information and measuring stations of electric PEM – Privolzhskye electric mains power fiscal measurement SIC – Self-supporting insulated conductor Automated systems of electric power technical measurement

y” OJSC ASEPTM – PRA – Protective relaying and automation an AEM – Almetyevskie electric mains

mp DP – Distributing point o

C BuEM – Buinskie Electric mains

d DZ – Distribution zone i r BEM – Bugulminskie electric mains

“G REC – Regional Energy Commission MMS – Modular mini-substation SS – Sub-station OL – Overhead line TS – Transformer substation IWOL – Insulated wire overhead line FTS – Federal TariffsS ervice FOCL - Fiber-optic communication lines 184 FSFM – Federal Service for Financial Markets EMCZ – Electric mains city zone ChEM – Chistopol electric mains UNEM – Unified National (Russia wide) electric mains EDS – Expert Diagnostic System EEM – Elabuzhskie electric mains

CL – Cable lines

CTS – Complete transformer substation

KEM – Kazanskie electric mains

ENERGY OF LIFE EML – Electric Power line

RDE – Research, Development and Engineering Used abbreviations NkEM – Nizhnekamskie electric mains kV – Kilovolt – measurement unit of voltage NchEM – Naberezhno-Chelninskie electric mains kWh – Kilowatt-hour – measurement unit of electric power WEM – Wholesale electricity market MVA – Megavolt-ampere – measurement unit of full transformer EA – Emergency automation station 3. Corporate Governance \ 4. Financial and Economic Activity \ 5. Social Responsibility \ 6. Productive Activity \ 7. Annexes ort p re ANNUAL

185 2011