Social report Ak Bars Bank 2019 2

Contents

Address of the Bank’s Management 3 Employees' labor and employment rights 22 Assistance to severely ill children, children with disabilities and children finding themselves General and advanced professional training 22 in difficult life situations 48 General Information on Ak Bars Bank 4 Personnel reserve 31 Social protection for the elderly, assistance to socially vulnerable groups and people with disabilities 49 Principles and structure Individual Development Plan (IDP) 32 of the corporate governance 5 Assistance to educational institutions Assessment of the Bank's personnel 32 and education programs of the Bank 50 Shareholders, capital structure 7 Social benefits for the Bank’s employees 33 Support for social events 51 Activities of the Board of Directors and its Committees 10 Voluntary Medical Insurance 36 Assistance to public organizations, cultural, medical institutions, etc. 51 Committees of the Board of Directors 12 Sport, recreation, cultural and recreational activities 37 Support for sports 51 Support of the elderly and retired 38 Human Resources Policy of the Bank 15 Conclusion 52 Socially responsible regulation of issues of labor Occupational Health and employment 16 and Safety Policy 39 Appendix 53 The structure of the personnel of Aк Bars Bank 17 Environmental impact management 42 Report of the AK BARS SOZIDANIE Remuneration and incentive policy for the labor 18 Charity Foundation 53

Intangible motivation of the personnel 19 Charity activities of the Bank 46

Corporate values 21 Work of the Committee on sponsorship and charity 46 3

Address of the Bank’s Management

The Bank's social responsibility is based and environmental campaigns. The Bank on the best corporate governance practices strives to make the working atmosphere namely, sustainable development, smart risk as comfortable as possible by creating management, ensuring a balance of rights and an environment of labor protection, providing interests of owners, management, and other guaranteed and decent wages, services stakeholders. Ak Bars Bank always takes of voluntary medical insurance and social into account the interests of society and benefits. contributes to improving the lives of people in the areas covered by the Bank. Detailed information about all good deeds of Ak Bars Bank you will find in this report. The Bank's policy of corporate social We wish you wellbeing, stability, and responsibility is based on high moral values prosperity! such as support for neighbors, mutual help, and responsiveness. This is confirmed Chairman of the Board of Directors by the Bank's long-term charitable activity of Ak Bars Bank Dear friends! aimed at helping the least protected V. Yu. Sorokin categories of citizens. For many years, We hereby present you the twelfth Social Trends in the banking industry dictate the Bank has been supporting sports, culture, Chairman of the Management Board Report of Ak Bars Bank to provide details on new approaches to business organization education, science, and other spheres. of Ak Bars Bank the Bank's activities in the field of charity establishing relationships with clients and Z. F. Garaev and corporate social responsibility. partners. Nevertheless, large financial High moral values are tightly integrated corporations are aware of their role in society into internal corporate culture as well. The and their impact for the social and economic Bank's employees regularly take part in social processes around. events and actively participate in public 4

GENERAL INFORMATION ON AK BARS BANK

The Joint-Stock Commercial of banking services both to corporate Among corporate customers, there Bank “AK BARS“ (Public Joint-Stock and individual customers. are large companies of the oil, gas, Company) was registered with the Central and petrochemical sector, machine-building, Bank of the Russian Federation and has Retail, corporate, and investment business, telecommunications, electric power, been successfully working since 1993. digital banking, private banking are priority construction, chemical, automobile transport Ak Bars Bank is a sustainable and socially fields of activities for the Bank. companies, retail enterprises, agricultural responsible financial institution. companies, and other institutions. Ak Bars Bank has a well-developed territorial Ak Bars Bank is the leading bank in Tatarstan, network. As of the end of 2019, the regional it is ranked 17th among Russian financial network comprised 228 divisions. institutions by assets at the beginning At the same time, the Bank rebranded of 2020. The Bank has been in the market 110 sales points. Furthermore, since 1993 and is represented in 27 regions the Bank expanded its network of offices of Russia. The Bank holds all types equipped for biometric data registration of banking licenses available in the Russian (Unified Biometric System project) Federation and provides more than 100 types to 131 offices during 2019. 228 131 divisions in the regional offices are equipped for biometric network data registration 5

Principles and structure of the corporate governance

The corporate governance plays a key Management Board and Chairman role in the activities of Ak Bars Bank in its of the Management Board of the Bank, as successful and sustainable development, risk well as Committees of the Bank at various management, ensuring a balance of rights levels. Apart from that, the Bank's and interests of owners, management corporate governance structure ensures and other stakeholders. maintenance of an adequate balance between the management bodies, distributes powers, Organization of efficient corporate governance and differentiates general management ensures balanced management decisions, performed by shareholders and the Board timely identification, and assessment of Directors from the management of possible consequences of risk realization, of the Bank's day-to-day activities performed identification of adequate measures by its executive bodies. for risk prevention or minimization, which ultimately ensures a stable position The Bank's management bodies carry out their of the Bank in the market, as well as builds functions primarily following the principles the Bank's reputation as a reliable counterparty recommended by the Corporate Governance and financial intermediary. Code, which is based on the protection of the rights of shareholders and investors. The system of corporate governance The shareholders are entitled to participate of Ak Bars Bank is based on effective in the management of the Bank by taking interaction between all the bodies decisions on the most important issues of its management i. e. General Meeting of the Bank's activity at the General Meeting of Shareholders, Board of Directors, of Shareholders. 6

The Bank has built up an effective system a regulatory document defining fundamental and recommendations of the Bank of Russia. The process of development and improvement of corporate governance and internal principles, rules, and standards of corporate The Board of Directors assessed the Bank's of corporate governance will continue control of financial and economic activities governance. Those include protection corporate governance system as complaint in Ak Bars Bank in the future, including to protect the rights and lawful interests of rights and lawful interests of the Bank's with corporate governance standards. the analysis of the feasibility of applying new of shareholders. The Bank's management shareholders, organization of the activity practices. processes and procedures are structured of the Board of Directors and executive bodies, The Bank has also continued to develop in a way that they ensure compliance with all the fulfillment of strategic management, and update internal regulatory documents laws, rules, and regulations and create optimal coordination of risk management and internal to introduce the corporate governance conditions for making sound and responsible control, prevention and settlement of interest principles recommended by the Bank of Russia decisions. For example, the Bank's Board conflicts, information disclosure, as well as into corporate governance practice more of Directors has an Audit Committee, which, the procedure for carrying out significant thoroughly. together with the Internal Audit Service, corporate actions. assists management bodies in ensuring efficient operation of the Bank, and the Review The Bank, guided by the interests of its Committee monitors the Bank's compliance shareholders, creditors, clients, business with regulations and legality of operations. partners, and counterparties, constantly monitors the compliance of its activities Following the legislation of the Russian with the provisions of the Corporate Ak Bars Bank will continue to develop Federation, Ak Bars Bank seeks to comply Governance Code recommended with corporate governance standards under for application by the Bank of Russia. and improve corporate governance, the recommendations of the Bank of Russia and international standards. In 2019, the Board of Directors involving analysis of the feasibility of the Bank continued its assessment of applying the new practices. The Board of Directors confirms that of the corporate governance system the Bank complies with the principles of Ak Bars Bank following the methodology and recommendations of the “Corporate based on the Russian legislation on joint- Governance Code of Ak Bars Bank ”, which is stock companies, banks, and banking activities 7

Shareholders, capital structure

The General Meeting of Shareholders and to make decisions on critical matters To properly observe and protect such rights, placed. The authorized capital of the Bank has is the supreme management body of the activities. Ak Bars Bank is committed to unconditionally been paid in full. of Ak Bars Bank, which makes decisions abide by requirements for the disclosure on the main issues of its activities. The bank puts much effort into its routine of information established with the Russian The number of shares held by the Bank: none. The Bank ensures equal and fair treatment activities to create the most favorable law. Moreover, to inform the parties for all shareholders when they exercise own opportunities for implementation concerned of its activities more completely, Following the Articles of Association, the limit right to participate in the management. of the shareholders’ rights; it strives to take the Bank voluntarily discloses additional value of declared ordinary registered shares The owners of the Bank exercise their rights interests of other parties concerned information on its activities. Ak Bars Bank is authorized to place in addition related to banking management by making in the matters of corporate and social to the shares already in circulation amounts decisions at General Meetings of Shareholders. responsibility. The Bank guarantees Currently, the authorized capital to 20 000 000 000 (Twenty billion) shares General Meetings of Shareholders, which the right for a scheduled and timely of Ak Bars Bank in the amount with the nominal value of RUB 1 (One) each. are held at least once a year, provide delivery of the information on its activities of RUB 48 015 396 326 is divided the Bank with opportunities to inform for the shareholders in the scope sufficient into 48 015 396 326 shares. All the shares As of December 31, 2019, Ak Bars Bank has the shareholders of its activities, achievements for them to make knowledgeable and justified of the Bank are ordinary registered shares not placed any preferred shares. The total and plans, to invite them for a discussion decisions about the disposal of their shares. issued in the book-entry form with the nominal number of shareholders of the Bank is 45, value of RUB 1 (One) each. All the shares are including 30 legal entities and 15 individuals.

RUB 48 015 396 326 20 000 000 000 shares the authorized capital of Ak Bars Bank number of declared ordinary registered shares 8

The independent registrar, Kazan Branch The information on the owners The information on changes in the composition of Registratorskoye Obshchestvo STATUS, of the Bank, as well as on the structure of shareholders owning 5 or more percent JSC, provides registration of ownership and degree of participation of the Bank’s of voting shares of the Bank is published rights, duties on maintenance, and storage shareholders owning no less than 1 percent at the information resource updated in real of the Bank's register of shareholders, as well of its authorized capital can be found time and delivered by Interfax News Agency as functions of the counting commission on the website of the Bank of Russia, in the form of messages on significant facts at General Meetings of Shareholders. and on the official website of Ak Bars Bank and insider information. on the Internet. The ownership structure Following the applicable Russian law, in 2019, of the Bank demonstrated on these Internet owners of the Bank exercised their right resources in the form of an interrelationship to freely dispose the shares owned. In 2019, scheme and a list of persons holding control transactions involving shares of Ak Bars Bank or significant influence over the Bank, contains effected in the secondary market caused slight information on shareholders owning shares changes due to the emergence of new owners of the Bank and is available to an undefined of the Bank's shares represented by minority circle of persons. total number shareholders (individuals). of the Bank's 45 shareholders 30 legal entities 15 individuals 9

The structure of theequity capital of Ak Bars Bank as of the end of 2019 is as follows:

1 3 5 7 9 11

2 4 6 8 12 10

Share in the authorized Name of the shareholder capital (%)

1 Non-Profit Organization “State Housing Foundation under the President of the Republic of Tatarstan” 20,410

2 The Republic of Tatarstan represented by the Ministry of Land and Property Relations of the Republic of Tatarstan 19,789

3 Svyazinvestneftekhim, Joint-Stock Company 13,610

4 Tatneft named after V.D. Shashin, Public Joint-Stock Company 10,413

5 OSMAND HOLDINGS LIMITED 6,823

6 Yul Company, Joint-Stock Company 6,649

7 Iks-luch, Limited Liability Company 6,406

8 SINEK Investment & Development, International Limited Liability Company 5,414

9 TUGAN Il Regional Foundation of Social and Economic Development, Non-profit Organization 5,262

10 Eurobest, Limited Liability Company 3,598

11 Nizhnekamskneftekhim, Public Joint-Stock Company 1,458

12 Shareholders owning less than 1% of the authorized capital 0,168 Total: 100 10

Activities of the Board of Directors and its Committees

In June 2019, the Annual Meeting All members of the Board of Directors The meetings of the Board of Directors informed about the progress made in its of Shareholders elected a new Board comply with legal, personal and professional in the reporting period were held according implementation. The Board of Directors was of Directors consisting of 12 persons. requirements established in legal to the approved plan for the corresponding briefed in February 2020 with the Report At the first meeting of the Board acts of the Russian Federation, period of activity. During 2019, the Board on the Bank's Budget execution for 2019 of Directors, Valery Yurievich Sorokin, the Bank of Russia, the Articles of Directors held 6 meetings in presentia and based on the information provided representative of the Bank's shareholder, of Association, and internal documents and 4 meetings in absentia. The meetings by the Management Board, it was concluded Svyazinvestneftekhim, JSC, was elected of the Bank; they have sufficient work addressed 88 issues listed on the agenda. that the Bank has improved its financial as its Chairman. experience in the field of banking activities, All issues provided for in the plans have been performance, the net profit and interest as well as accounting and audit, necessary considered in full. margin values have shown the highest The effectiveness of the Board for making sound decisions on issues values in the Bank's history. of Directors is achieved through referred to the competence of the Board In November 2018, the Board of Directors balanced composition and coordinated of Directors. approved the budget of Ak Bars Bank During the reporting year, the Board work. According to the assessment for 2019, and during 2019, the Management of Directors monitored the implementation of the Bank's Board of Directors' compliance Board regularly (every quarter) was of the Bank's medium-term development with the independence criteria that was strategy, approved in 2016. conducted in June 2019, 2 members of the elected Board of Directors were recognized as nonexecutive directors (Yuri Levin and Gregor Mowat).

meetings meetings issues listed 6 in presentia 4 in absentia 88 on the agenda 11

Reports of the Internal Audit Service The Board of Directors has paid particular The results of the assessment and the Internal Control Service on attention to the improvement of corporate demonstrated a good level of organization the results of inspections carried out management system including revision of the work of the Board of Directors on the Company's activities, reports of the Bank’s internal documents within HR and its Committees, internal efficiency, on the work done by the Inspector and risk management. and interaction between the Board of Ak Bars Bank as a professional of Directors and the Bank, the achievement participant of the securities market were The Board of Directors continued of the goals and objectives set by the heard, and reports on IPCAA were approved the practice of annual assessment Board of Directors. regularly at the meetings of the Board of the Bank's corporate governance. of Directors. Furthermore, the Board of Directors in line with tradition and at the beginning The Board of Directors, within the scope of the year conducted a general evaluation of its responsibility for the Bank as a whole, of the activities of the Bank's Board actively used its authority in the reporting of Directors and its specialized Committees; year to address the issues of business to improve the quality of the Bank's strategy and risk management, financial corporate governance procedures, stability and corporate governance, the questionnaire form was changed exercised effective control over (paper forms of the Questionnaire were the activities of executive bodies, monitored converted into electronic form). Based the observance of shareholders' interests on the results of the survey, the Board throughout the Bank's operations. of Directors identified several areas requiring special attention, and discussed measures to improve and eliminate identified shortcomings in its work. 12

Committees of the Audit Committee Board of Directors

In 2019, the specialized committees In 2019, the Audit Committee focused on and gave recommendations to the Board At the end of 2019, the Audit Committee of the Board of Directors established undertaking measures aimed at improving of Directors on the Bank's auditor candidates. conducted a self-assessment of its to facilitate the effective performance the efficiency of the internal control system, performance - the results were scheduled of control functions of the Board of Directors monitoring the reliability and completeness A significant portion of the issues discussed to be discussed with Committee members continued their work. The Committees of the Bank's financial statements, assessing at the meetings during the reporting period at a meeting in April 2020. worked closely with the Bank's management the independence and objectivity of external was focused on improving the internal and control bodies, auditors, and consultants auditors, as well as ensuring effective control system and enhancing the efficiency within the scope of their competence. interaction between internal audit units of the Bank's Internal Audit Service. and external auditors. The Committee regularly reviewed the Bank's financial The Committee continued working on statements prepared under Russian important areas related to the improvement and international standards, analyzed of the internal control system, i.e. the results of the audit, and discussed the issues of implementation of IT solutions the set of measures to address the auditors' in the activities of the Internal Audit Service, comments. diagnostics of the Bank's information security.

The Committee members addressed the traditional issue of organizing and conducting a tender to select audit organizations authorized to conduct annual The Committee continued its work audits of the Bank under RAS and IFRS on the implementation of IT solutions in the Internal Audit Service. 13

Human Resources and Remuneration Committee

In 2019, the Committee members paid The central place in the activity During the reporting year, members Besides, the Committee made a significant particular attention to the monitoring of the Human Resources and Remuneration of the Human Resources and Remuneration contribution to the improvement of the Bank's of the completed “HR strategy”. Its Committee was taken by the issues related Committee paid constant attention internal regulatory documents that govern vector is designed to create an image to the monitoring of changes in personnel to issues related to the improvement the remuneration of both Management Board of the best employer in the Republic efficiency and productivity indicators of the Bank's organizational structure as part members and Bank employees. of Tatarstan, to develop HR analytics in comparison with the data provided of the set of measures designed to improve improving the efficiency of the HR function, by local banks and banks comparable the efficiency of the Bank's business units. to transform the corporate culture enhancing with Ak Bars Bank in terms of the volume Apart from that, throughout the reporting the efficiency of the Bank's employees of business and regional presence (compared period, the Committee supervised and the employee development program. to targets, implementation of the budget the progress of the Personnel Reserve Project, for personnel costs, and the rate of turnover). the combination by the Bank's Management Board members positions in management bodies of other organizations, and discussed key performance indicators.

Committee members paid particular attention to the monitoring of the com- pleted HR strategy. Its vector is designed to create an image of the best employer in the Republic of Tatarstan. 14

Risk Committee Strategy Committee

During the reporting period, the Risk The Risk Committee continued its A constant focus of the Strategy Committee Still, the Committee members continued Committee concentrated on the issues practice of preliminary review of related members was monitoring the progress to monitor on the quarterly basis of risk analysis and control, the application party transactions and interested party of implementation of Ak Bars Bank's medium- the implementation of the main directions of the bank's risk management methods, transactions. The main focus was placed term development strategy for 2016-2021. of development for Ak Bars Bank the stress testing, as well as building on the improvement of the RAROC The main goal of the Strategy is to reach in accordance with its financial performance an internal and compliance control system calculation mechanism for banking operations a new level of competitiveness and remain results, and repeatedly heard a comparative and improving its effectiveness. as a prerequisite for the Bank's transition as the best bank for both individuals analysis of the operational efficiency to an economic capital model. and businesses within the banking segment. of the Bank with its competitor banks. The agenda of the Committee's meetings The Strategy Committee followed up on The Committee also approved the key was based on capital adequacy issues, Further, the Committee made a significant initiatives along the development priorities set objectives and events for the development including the development of internal contribution to the improvement for 2019. of retail, corporate, and investment business procedures and mechanisms for capital of the Bank's internal documents units. At the end of the year, the Committee adequacy assessment, allocation governing the requirements for the system Thus, in November 2019, as part members reviewed and recommended of capital to business segments following of risk and capital management of the review of the report the budget of Ak Bars Bank for 2020 the Bank's business model, improvement of the Bank and the banking group. on the achievement of the strategic to the Board of Directors’ approval. of the process of setting capital limits, as The Committee recommended these goals, the Committee members were well as the condition of the Bank's liquidity, documents for approval and they were informed on the Bank's progress towards analysis of asset and liability quality. subsequently approved by the Board achieving its transformational goals, To meet the requirements of the regulator, of Directors. followed by the analysis of the main areas the Committee reviewed the IPCAA reports, of the Bank's growth in the course of strategy a risk appetite statement, and provided implementation. recommendations to the Board of Directors on ways of determining the level of risk appetite. 15

Human Resources Policy of the Bank

Personnel stands out as the main resource Employee involvement is one of the main for the bank's development. Well-matched indicators of a successful corporate culture. staff constitutes an important component An employee, who is involved in the work in achieving strategic goals. An effective process, is willing to take the initiative corporate culture unites employees and offer fresh solutions. Interest in work is and provides the strongest motivation reinforced by opportunities for self-fulfillment, for achieving the bank's goals and objectives. comfortable working conditions, and incentives for the ideas offered. The mission and values The efforts of the human resources of the organization must be constantly policy are aimed at personnel recruitment conveyed to the team. and enhancement, increasing the level of interest of employees in the work results through effective systems of individual motivation. 16

Socially responsible regulation of issues of labor and employment

Ak Bars Bank regards the remuneration system as one of the basic The regulatory document “Remuneration policy for employees elements of a proactive human resources policy designed to support its of Ak Bars Bank“ defines the key principles and basic components strategic and business goals. of the employee remuneration system.

The Bank strives to implement a fair and transparent remuneration system, which

rewards and motivates workers is objective and clear ensures a balance between motivates each employee ensures that the amount depending on the skills, efforts to the Bank's employees the ethical and material values to achieve high professional of remuneration of the bank's and time consumed of the employee and the Bank results and work effectively employees corresponds in a team to their positions, the level and combination of accepted risks, efficiency indicators, and financial performance Ak Bars Bank takes care of the welfare and social security of its employees The social policy of Ak Bars Bank is carried out under the approved of the Bank and their families. Within the system of socially responsible regulation regulatory document, namely “Provisions on social support of labor and employment issues, the Bank is guided by its own accumulated of Ak Bars Bank“, which specifies the procedure and amount of payments experience and international standards in the sphere of corporate social of material assistance and social support to employees. responsibility. 17

The structure of the personnel of Aк Bars Bank

Ak Bars Bank personnel form a close- knit team of professionals. As of January 38,65% 82,1% 1, 2020, 5,345 employees worked is the share of territorial is the share of women in the bank, with the share of employees in the territorial network at 38,65%, network employees the Shared Service Center at 12,55%, and the Head Office at 48,79%. 5 345 total number of staff The Bank pursues a policy of employing the young specialists and graduates of higher educational institutions, cooperates with specialized institutes throughout Russia, which is reflected in the age structure of the personnel. 12,55% 48,79% is the share of employees is the share of Head In 2019, 33.19% of the Bank's total number of employees was under 29 years of age. at the Shared Service Center Office employees 75,36% of the Bank's employees are under 39 years of age. 17,9% The gender composition of the personnel is the share of men remained unchanged and women accounted for the largest share of employees (82,10%). 18

Remuneration and incentive policy for the labor

Ak Bars Bank provides a decent standard The motivation system is one of the key of living for its employees and their families. tools for managing the organization's Our approach to personnel remuneration performance, and that is why the principles and financial incentives is systematic of the motivation system are adjusted and comprehensive. to business plans and company strategy on an annual basis. The motivation system Ak Bars Bank employees are paid changes with the company and reflects its depending on their qualifications, development. complexity, and conditions of work performed, quantity and quality of labor In 2019, Ak Bars Bank has developed input, work results, and financial “A performance map” with integrated capabilities of the Bank. We continuously KPIs. “A performance map” defines monitor the labor market to ensure that the Bank's strategic goals and indicators our employees are paid a competitive that serve as the main tool for measuring salary and regularly check the level the achievement of the Bank's goals. of remuneration in response to changing market conditions.

There is a system of motivation in the organization, which depends on the fulfillment of the goals set at the level of the whole Bank, the result of the team activity, the individual performance of the employee. 19

Intangible motivation of the personnel

Intangible motivation of employees is creating a healthy atmosphere, and forming of banking business and many years selected for the project where they received a powerful tool of team management the corporate spirit in the team. of fruitful work, 9 employees from the Head training under a specially developed and one of the key components Office and the branch network were leadership program and participated of the corporate culture. Motivation One of the most important factors awarded internal awards for many years in workshops and lectures provided determines the quality of employees' of intangible motivation in the Bank is of productive work. the bank's top managers. Project work, productivity, business development, the promotion and recognition of employees' participants acquired professional and success. Intangible motivation is a set merits. In 2019, 4 employees were In December 2018, the Leaders' Time knowledge and practical skills, developed of measures aimed at increasing employee presented with external awards “Honored Project was launched and continued its corporate competencies, and carried out loyalty, improving working conditions, Economist of the Republic of Tatarstan” development in 2019. Following the results team projects aimed at improving existing for their contribution to the development of the qualifying round, 35 employees were processes at the Bank.

4 employees 9 employees 35 employees were presented with external awards were presented with internal awards are trained under a specially developed “Honored Economist of the Republic for long-lasting and fruitful work, leadership program and participate of Tatarstan” for their contribution achievements in solving service tasks in workshops and lectures provided to the development of banking by the Bank's top managers business 20

The Bank is creating an atmosphere of the corporate edition called Digest If the economic effect of the idea The children of Bank employees continue of openness and developing new of Changes were published. The newspaper is confirmed by the results of its to receive attention. On June 7, Children's internal communication channels. is available on the corporate portal implementation, the author of the idea Day, the children took part in the Gingerbread Business breakfasts with the Chairman and in the mobile app. receives a money reward. Workshop. Moreover, children of the Bank's of the Management Board, “Open Dialogues” employees visited Kyrlay Park. At the end with Deputy Chairman of the Management The Bank operates an innovation Intangible motivation is also expressed of the year, the children's art competition Board, where top managers answer crowdsourcing service, namely Bank of Ideas, in the compensation and benefits system. titled “Ak Bars Bank — bank of the Future” employee questions online, has become where any employee can submit an idea The system of discounts on the purchase was summed up. Children of Bank employees a traditional format for the Bank. Employees designed to optimize processes, introduce of certain goods or services, the opportunity aged from 4 to 12 years were the contest receive daily news and information innovations, as well as improve existing to buy subscriptions to fitness centers participants. A total of 84 entries were newsletters via corporate mail. A mobile app products and offer new ones. The most at a discount are amongst possible formats. submitted for the competition. The winners has been launched and it helps employees active authors of ideas can be awarded of the competition were awarded prizes. to learn about the Bank's life and get certificates of honor, invited to a business Tickets for New Year's shows are purchased useful information for work, participate breakfast with the Bank's top managers. every year for children of employees. in voting, and take surveys. In 2019, 3 issues In 2019, 1,200 tickets were acquired.

3 issues 84 entries 1200 of the corporate edition called were submitted for the children's tickets for New Year's shows Digest of Changes were art contest called “Ak Bars Bank – were provided for employees’ published in 2019 the bank of the Future” children 21

Corporate values

Ak Bars Bank will be implementing its and augment the capital. At the same time, for customers and values for employees. Development Strategy until 2021. “We create the bank builds transparent and trustworthy Innovation,simplicity of solutions, opportunities for our clients and partners relations, supports achieving goals and friendliness represent the main values to achieve their goals today and forever” and fulfilling aspirations, including using for customers. Customer centricity and client is the mission of Ak Bars Bank. The Bank modern and reliable banking technologies. focus, the courage to innovate, commitment operates proactively and always provides to results and quality, and teamwork form the most diverse opportunities for our The Bank's corporate values are the core values for employees. clients and partners to develop business divided into two key areas: values

Values for customers: Values for employees:

Innovation Simplicity Friendliness Customer centricity Courage Commitment Quality of solutions and client focus to innovate to results and teamwork 22

Employees' labor General and advanced and employment rights professional training

The Bank's activities are aimed at ensuring Every year, a set of measures is implemented to train the Bank's employees, including all categories of personnel. equal rights and opportunities for all The bank has built a permanent system of training, constant updating of theoretical and practical knowledge employees at work and preventing any form of managers and ordinary employees. of discrimination and forced labor, contributing to professional and personal development. The training system includes the following:

These principles are reflected in the Bank's • participation of employees of the Head • training of territorial network employees subdivisions to other employees of the Head local regulatory acts in the field of personnel Office and the Shared Service Center (SSC) within the framework of strategic sessions Office, SSC and territorial network; management, which are adopted under in external training: professional programs, (including the involvement of external the requirements of international and Russian seminars (webinars), forums, conferences; providers of educational services • training at distance and testing employees legislation. in a corporate format); through the Distance Learning System (DLS). • internal training of employees of the Head Following the Provisions on personnel Office, SSC, and the branch network in skill- • internal training in the format of knowledge recruitment, the Bank respects equal rights and product-oriented training by efforts transfer from the experts of the Bank's; and opportunities for job candidates when it of business coaches of the Training Center; reviews the applications and hires for work. Other local regulatory acts ensure equality The fields of training and the feasibility of the training programs are selected and defined in accordance of labor rights and individual freedoms with the following: during the evaluation procedure, promotion, remuneration, and training of employees. • the syllabus for the employees • training matrixes for mass • amendments in the legislative • demands of business units of the Bank for 2019 that is positions and the Catalogue acts, the Bank's internal of the Bank. approved by the corresponding of programs for mass positions; business processes departments; and products; 23

Training Center of the Bank

Receiving a license for educational In total, the Catalog of internal programs activities by the Bank was the key event contains more than 40 programs that of 2019. The license was obtained on aim at the comprehensive development November 29, 2019, and in December of the employees, including the reinforcement 2019, the Bank's Training Centre of soft skills, 16 managerial competencies, employees in cooperation with the Employment and active sales skills. Each program 115 Centre of the Moscovsky District of Kazan is designed to develop the corporate were trained within “Mentoring” implemented a project to train the Bank's competences of the Bank’s employees. and “Management Cycle” employees of pre-retirement age. 115 employees received training on In 2019, the HR partnership, which “Mentoring” and “Management Cycle” helps businesses to achieve their goals with the issuance of a state educational through personnel training, continued certificate. its development. The tasks of the HR partner include participation in all branch programs In 2019, internal training was continued meetings, assistance in personnel selection, > 40 in accordance with the mandatory Training help with developing and monitoring aimed at the comprehensive Matrix for employees of mass specialties the implementation of an action plan designed development of the employees, and the Catalogue of Programs for non-mass to achieve key performance indicators including the reinforcement of soft skills specialties. for retail and corporate businesses, etc. 24

Personnel Training and Development

Personnel training and development programs in 2019 covered all structural divisions of the Bank: employees of the branch network, the Shared Service Center, and the Head Office.

As part of the internal training system, of the Head Office and the territorial the probationary period both for newly hired The adaptation programs are implemented in 2019 adaptation training programs were network. Adaptation programs are aimed employees and for employees transferred in person and distance learning formats. implemented for newly accepted employees at reducing operational risks and controlling to a new position of the Bank.

The following in person adaptation programs were conducted during 2019:

• Welcome-training was held for all newly • In-person “Customer Service Specialist 92 accepted employees of Head Office, School”. In 2019, 163 people (95%) were people from the Shared Service Center, Kazan Regional trained out of 170 newly accepted CSS, Kazan Regional Center Center on the 1st working day (Newcomer's 92 people (out of 96 accepted) from the 162 Day). The Newcomer's Day has been held Kazan Regional Center, and 70 CSS from at the Bank since January 2019 to introduce the Zakamye Regional Center (out of 74 people were trained the Bank's regulatory documents, history, accepted); 70 corporate values, and basic rules of work. people from Zakamye Welcome – training, which constitute the part • In-person “Account Manager School” was Regional Center of the Newcomer's Day, was held for 893 held for 9 out of 12 newly hired employees newly hired employees of the Head Office, (80%). the Shared Service Center, Kazan Regional Center. 25

Besides, during 2019, 3 in-person schools were In 2019, 3 strategic/training sessions were held under the retail segment, namely: held to improve the qualifications of the branch network's small business employees, namely • Strategic session of the partner channel • Strategic session for employees • Strategic session for members of the “The Client Manager School” and “The Credit of the retail business, which was attended of the Directorate for Development and Retail account managers club, which was attended Analyst School for Small Business”. by 29 employees; Sales, which was attended by 28 employees; by 21 account managers of the Kazan Regional Center. In 2019, due to the introduction of the Training Space online platform, the Training Center began to provide adaptation programs in the format of distance learning. The main target audience for training on the platform has been newly recruited employees of the branch network of the Bank's affiliates located outside the Republic of Tatarstan. During the period from August to December 63 (93%) 2019, 93 out of 99 newly accepted employees customer service specialists (94%) of customer service specialists (CSS) and account managers (AM) branches of the Russian Federation were trained using 93 the Training Space platform. Of these, 63 CSS 30 (97%) employees were trained with (93%) and 30 AM (97%). account managers in the Training Space platform

Strategic sessions with the managers of the territorial network and the Head Office to promote effective business development, set goals and objectives, and solve complex issues are held on an annual basis. 26

In the 1st quarter of 2019, a two-day In February 2019, during the strategic for 2019, and carried out brainstorming In July 2019, a strategic session was organized strategic session for heads of small business session of the Security Department and teamwork in mini-groups. for the staff of the Directorate of Capital development was organized and attended the participants discussed the issues Construction, Engineering and Economic by 28 heads of small regional business; of effective work for the year of 2018, relevant The report on the work concerning overdue Management to discuss the issues at the same time an intellectual game issues of verification of loan applications indebtedness of individuals for 2018, goals of redistribution of product categories in terms called Cleveria was held by the employees for individuals and legal entities, personnel and objectives for 2019, and presentations of warehouse accounting, accounting, billing of the Department of Credit Technology security, sensitive issues in territorial security made by staff of the related units were rules in 1C, supervision of contractors, Control, Department of Small Business departments. discussed at the strategic session the procedure for interaction with related Organization and Directorate of Small Business of the Department for the Management departments, the procedure for concluding Sales. On March 1, 2019, the Human Resources of Overdue Indebtedness of Individuals contracts and other documents. The session Department in cooperation with HR BP held in the 2nd quarter of 2019. A team- was attended by 35 staff members. To maintain the level of qualification, a two- a strategic session to discuss the results building event was held on the second day day event was organized for the Department of KPI 2018 implementation, the results of the session. of administration, which was attended of assessment for services provided by 44 employees. On the second day, by the Human Resources Department, goals training named Sincere Service was held and key tasks (projects), service targets by the business coaches of the Training Center.

The Bank holds annual strategic sessions with the managers of the territorial network and the Head Office so that to promote effective business development, setting goals and objectives and solving complex issues. 27

In the 2nd quarter of 2019, three- In September 2019, a two-day Anyone wishing to attend training, as well In 2019, the Bank launched a pilot project day strategic sessions were held strategic session was held for the staff as those who have included these training to introduce mentoring in the Kazan Regional for Ak Bars Private employees from all of the Department for Management in their Individual Development Plan allowed Center. As part of the project, it is planned offices of the regional offices together of Impaired Assets. The session was for the enrollment. to train all employees performing as a mentor with employees from the Department attended by 25 staff members. The topics at the training called “I Want to be a mentor!”. of Personal Banking. The session addressed discussed within the session: the issues In 2019, the Training Center together Similarly, in 2019, the Order “On Introduction issues of business etiquette, and also arising while implementing pilot project with Ak Bars Bank's Talent Development of the Mentoring System” for the heads included training sessions on “Critical called “Optimization of work processes Center continued to train employees of the Head Office and the Shared Service thinking”, “Understanding a companion with pre-non-performing and non- of the branch offices in the retail business, Center has approved. Training of all without words” and the business game performing loans of YUL” - IMS and UMS, those are: “Customer-oriented sales”, managers under “Mentoring style” project called Aviator. The Training Centre's business issues of concern relating to production “Cross sales”, “Cold calls”, “Effective sales has started. coaches acted as event hosts and facilitators. activities of the Department for management negotiations”, “Sales 3.0”, “Development of impaired assets of legal entities. It of management skills of the Sales In 2019, 987 employees In the 2nd quarter of 2019, a two-day was followed by a quest titled Aviator Department Manager” (level 1 and 2), “Public of the Bank underwent training in external strategic session designed to improve with the participation of a business coach speeches for heads of sales offices”. training organizations (conferences, the skills of the employees of the Internal from the Training Center. A team event was seminars). Audit Service was attended by 35 people. organized on the second day. The first day of training was dedicated to the study of critical thinking and a SOLVE In 2019, open training sessions continued. model. The training was conducted Employees of the Head Office and the Shared by a business coach of the Talent Service Center have the opportunity to take Development Centre and followed part in any training by their choice, namely by an outdoor team event titled Chain Emotional Intelligence, DISC. Personality Reaction on the second day. Typology, Time Management and others. 987 employees of the Bank underwent training in external training organizations 28

Implementation of external training activities

In 2019, the Bank's Training Centre held many attended not only by the bank's employees with the University of Talents aimed Coaches of the Training Centre actively events for external partners and residents but also by their children, as well as all willing at developing talented youth was launched. participate in the project of the Bank of Russia of Kazan. residents of Kazan who applied for this designed to improve financial literacy among event via social networks and mass media. The Bank's Training Centre has also become schoolchildren. More than 54 webinars, which On April 26, 2019, a Training Marathon The participants gave a positive evaluation a platform for training civil servants. covered over 171 thousand schoolchildren, called “Competences of the future” and on of the format of the events and pointed out its 60 employees of the Ministry of Finance were held. Children were taught “Personal November 29, 2019, on the Bank's birthday, relevance. of the Republic of Tatarstan were trained Financial Plan”, “Invest in yourself” topics a conference on personal effectiveness here. Their training was aimed at developing and gained a basic understanding of financial named “A new version of yourself” were Ak Bars Bank's internal coaches held several necessary up-to-date skills. The Training literacy. organized. Ak Bars Bank was the main events for the Bank's partners including Centre's coach arranged a strategic session initiator and facilitator of the events. External strategic sessions on team building, improving for employees of the Ministry of Youth speakers, game technicians were invited sales skills, communication, and negotiation and Sports of the Republic of Tatarstan to participate in the events. The Bank's skills. and an assessment meeting for 70 employees internal coaches presented their unique of the Youth Parliament. Besides, during 2019, programs as well. Workshops, small training In 2019, a joint project with the Salyat training sessions were held for employees sessions, and seminars on various topics were Children's Camp offering more than of the Republican Clinical Hospital (16 people) held as part of the events. These events were 30 workshops and a project and the Kazan Mayor's Office (17 people).

60 employees 33 employees 54 webinars 171 thousand of the Ministry of Finance of the Republican Clinical Hospital following the project schoolchildren participated of the Republic of Tatarstan were trained at the Bank's Training of the Bank of Russia in the project designed to improve participated at the Bank's Training Centre financial literacy Centre 29

Innovation technologies in personnel development

The introduction of the online platform titled Overall, about 1,000 employees took part knowledge, and read a lot. About 3,000 users Sberbank Virtual School includes Training Space became the main technical in mobile training. are connected to the library in total. 300 educational programs from the world's innovation in training that allowed employees leading business schools, e-learning courses, to be trained throughout the territorial The provision of access to the Alpina Digital In 2019, the bank's employees for the first video and audio lectures, Sberbank Library network with no need for business trips Library and the Sberbank Virtual School time had access to Sberbank Virtual School. book series, Edutech. Sberbank Virtual School and significantly saved Bank’s travel for employees of the Bank was an important The Bank provided the best employees as well as Alpina Digital Library is available expenses. Newly recruited employees event in 2019. with a unique opportunity to learn on mobile devices in 24/7 mode. of the branch network became the main and develop with the leader of the Russian target audience for training on the platform. Every month the Training Center makes banking sector within the quotas allocated a newsletter called “New Book of the month”. to structural units. In 2019, the Bank successfully launched The statistics of users' connection mobile training through the Telegram Channel. and activity proves that the bank employees Bank employees have round-the-clock access strive to become professionals in their chosen to training materials covering topics such as field, continuously develop, enrich their Memory Development, Sketching and others.

1 000 3 000 300 24/7 employees participated users have subscribed educational programs schedule of Sberbank in mobile training to the newsletter called “New book of Sberbank Virtual School Virtual School of the month“ 30

In 2019, the Bank's employees continued to study at the Coursera educational platform, which is a mass online education project combining over 2,000 courses and 160 specializations from 149 educational institutions worldwide. In 2019, the Bank's employees completed over 450 online courses. 450 25 online courses courses have been In 2019, the Bank continued its efforts aimed at developing distance at the Coursera developed by external learning. During 2019, the Training Centre's internal coaches have educational platform providers developed 30 courses in the format of distance learning. External are completed by Bank's providers have developed 25 courses. Advantages of distance learning employees include the ability to learn without going on business trips, which is of particular importance for remote areas, reduction of resources and time for mentors, the unification of the training process, 30 and provision of a single information field. courses in the format of distance learning The Bank's joint project with Kazan (Volga Region) Federal University have been developed (ITIS) to train the Bank's 16 employees in the Fintech business area by Training Centre's was a bright example in the field of full-time education. The Bank's internal coaches employees representing various areas of activity were able to receive a second higher education in the IT-sphere. 16 >2 000 Bank's employees courses are stored received training in the Coursera in Fintech educational platform 31

Personnel reserve

The measures aimed at the formation and development of the Personnel Reserve were implemented under the “Regulations for the unified management cycle for employees occupying managerial positions in AK Bars Bank“. Such events as the Talent Commission, the Retail Block Personnel Reserve, and a project called Leaders' Time became the source of the personnel reserve.

In cooperation with the Directorate The Personnel reserve for the position In 2019, the Leaders' Time Project was The selection for the second intake for Development and Retail Sales, a personnel of Account Manager accounted 36 employees completed and 19 Bank employees became of the Leaders' Time 2020 Project started reserve was formed for the positions (the position of a customer service specialist) its finalists. By the end of December in the 4th quarter of 2019. The finalists of Account Manager and Head of Sales Office and for the position of Head of Sales Office 31, 2019, 8 employees among the project of the project shall also make up the Bank's for the following regional centers: Kazan, was equal to 17 employees (position participants had moved up the career ladder personnel reserve. Zakamye, Volga, Ural. of an account manager). by being promoted within their division or moved to another division.

In 2019, the Talent Commissions examined 200 managers of the Head Office and the Shared Service Center.

98 181 10 20 4 managers were successors were managers were successors have moved successors have been recommended approved promoted to higher- up the career ladder appointed to replace for the talent pool level positions their direct supervisor 32

Individual Development Plan (IDP) Assessment of the Bank's personnel

In 2019, the Individual Development Plan was automated by transferring an IDP In 2019, the Bank created a new procedure for the assessment of corporate competencies form to the personal account at the Bank's corporate portal. in the format of case testing.

4 309 Bank's specialists completed the assessment procedure, while the results were used to create individual development plans.

Besides, the case testing of corporate competencies is automatically assigned 1 527 to all newly hired employees at the end of the adaptation period. individual development plans were compiled The 360-degree feedback in 2019

In 2019, the 360-degree feedback was conducted for all categories of the Bank's managers. 944 583 individual development plans individual development plans were prepared by specialists were created by employees 915 825 of non-mass positions in management positions managers of the people Head Office and completed all stages of receiving feedback and were provided with reports the Shared Service Center from their surrounding communities on the level target audience of corporate competence development 33

Social benefits for the Bank’s employees

An important part of the social policies The bank's management takes care not only of the Bank is the support given to employees. of its employees but also supports their Social benefits apply to all the employees families providing a social benefits package. of the Head Office and regional affiliates of the Bank, regardless of the position occupied, or the status and the work experience.

The corporate social benefits for Bank employees include:

An important part of the social policies of the Bank is the support given to employees. Social packages Business benefits 34

In 2019, social payments and material assistance were provided to Bank employees on the following basis:

The event of the child birth Maternity leave, and the children aged The fee reimbursement for tickets to children’s Old-age retirement or adoption 1.5 to 3 years summer camps and tickets titled “Mother and child”

The death of an employee and A decision of the committee New Year's gifts for employees' children Anniversary payment the loss of a close relative for social matters 35

Business benefits are provided by the bank depending on the job categories or official necessity

A smart and efficient social system ensures that the Bank responsibly regulates labor and employment issues, improves the quality of the working and living conditions of its employees and their families, and provides its units with highly professional and committed personnel.

The organization of training, professional Centralized provision of a company vehicle Partner discount offers for Reimbursement of cell training, and advanced professional training, and reimbursement of taxi fees for those employees and their families phone expenses including external education (seminars, working at night shifts courses, conferences, educational programs, internships, President's educational program, MBA), and in-company education for the employees 36

Voluntary Medical Insurance

The Bank has developed the Voluntary Medical To add to the above, as a part Insurance Program for the improvement of the implementation of the Voluntary of social support and corporate benefits, Medical Insurance Program, measures which is effective in Kazan, throughout by the AK BARS-Med Insurance 64% the Republic of Tatarstan, and territorial Company, LLC were taken during 2018- of employees insured affiliates of the Russian Federation, 2019 to identify the most spread diseases under the Voluntary 4 268 and is available to all working employees among the employees. In total, more than Medical Insurance employees are insured with more than 1 year of work experience. 3,200 surveys have been conducted which program under the Voluntary Overall, 4,268 people (64.21% of the total identified staff members with deviations Medical Insurance number of employees) were insured in 2019. from normative indicators and made program recommendations for further treatment. The Voluntary Medical Insurance Program 36% for the employees of the bank is risk- Each year the bank increases the availability of employees not insured based. This means that the amount and scope of medical services by expanding under the Voluntary Medical of the compensation (for the treatment) the list of available polyclinics and the range Insurance program may exceed the amount of the policy, of services. or may include an unlimited number of medical services included in the program upon prescriptions of the doctors. 37

Sport, recreation, cultural and recreational activities

One of the key components of the company’s and hockey uniting the members of the team in the Kazan National Half Marathon, In March, the bank's team ranked third success is well-organized corporate leisure- and teaching them to act together. in the Kama Half Marathon, in the Night-time in the category “Banks, IT and cellular time activities. This is an excellent way Kazan Race. communications companies” at the II to create a favorable environment within From year to year, Ak Bars Bank team Alpine Skiing and Snowboarding Festival the team, to help staff to reduce stress wins Timerman corporate sports The Bank was awarded a diploma for 1st place for the Tatarstan President's Cup. and relax. races. During 2019, 571 employees in the Corporate League for participation of the Bank participated in Timerman races in Ak Bars Bank Volga Run Half Marathon Ak Bars Bank welcomes team sports. It holds held in Kazan, Nizhnekamsk, and Almetyevsk. in 2019. The event was held as part of the All- tournaments in volleyball, arena football The team of Ak Bars Bank participated Russian half Marathon titled Zabeg.rf. in the Ak Bars Bank Kazan Marathon – 2019,

571 employees Ranked 1st of the Bank participated in Timerman in the Corporate League races held in Kazan, Nizhnekamsk, for participation in Volga Run Half and Almetyevsk during 2019 Marathon 38

Support of the elderly and retired

Ak Bars Bank, as a socially responsible As a gratitude for their work, our pensioners organization, takes into account the socially have been receiving special payments from vulnerable position of non-working pensioners the Bank during the entire 2019 within key and pursues a policy of social support for its anniversaries and the occasion of retirement. retirees by implementing systematic programs On the Day for the Elderly non-working of assistance. pensioners met as a part of the long tradition at a gala event with a tea reception and the presentation of gifts.

Ak Bars Bank pursues a policy of social support for its retirees by implementing a systematic program of assistance. 39

Occupational Health and Safety Policy

The Occupational Health and Safety Policy is a public documented declaration on the Bank's intention and guaranteed fulfillment of its obligations to comply with the state regulatory requirements for occupational health and safety and voluntarily undertaken commitments.

The Bank shall ensure:

Priority of safeguarding the life Compliance of labor conditions at its Implementation of consistent Taking into account the employees' 1 and health of employees in the course 2 workplaces with the requirements 3 and continuous measures (activities) 4 individual needs, particularly of their employment. of occupational health and safety. designed to prevent incidents and cases by designing workplaces, selecting of employees' health deterioration, equipment, tools, raw materials industrial injuries and occupational and supplies, means of individual diseases, also using occupational risk and collective protection, organizing management. production and technological processes.

continuous improvement Mandatory involvement of employees Direct interest of the Bank's Fulfillment of other duties in the field 5 and enhancement of the effectiveness 6 in occupational health and safety 7 management bodies in providing, 8 of occupational safety based on of OHSAS (Occupational Health management and the provision of labor to the greatest extent possible, safe the specifics of its activities. and Safety Assessment System). conditions that meet occupational labor conditions. health and safety requirements through adequate resource provision and encouragement of such participation. 40

Ak Bars Bank has set a goal to ensure the requirements of the federal laws A modernized, comfortable place increases occupational safety management system maximum safety of life and health at work. of the Russian Federation, and other productivity and enhances the potential in all structural and territorial subdivisions Ak Bars Bank seeks to meet international regulatory legal acts. of each employee. The Bank complies of the Bank. standards of OHSAS 18001:2007 with all requirements for the organization “Management Systems of Health and Safety To guarantee high work efficiency, of employees' workplaces, including Every year, the Bank approves a Plan of Labor. Requirements”, OHSAS 18002: 2008 the workplace conditions must meet the most the opening of a new location. of actions to improve and upgrade “Management Systems of Health and Safety modern requirements. working conditions and allocates at least of Labor. Guidance on the application Besides, the Bank has approved 0.2% of the Bank's total expenditures of OHSAS 18001: 2007”, the Regulations on Internal Labor covering for occupational safety. Before its formation, the process of hiring and dismissal labor conditions at workplaces are studied. of employees, their basic rights and duties, For instance, the volume of measurements working hours, hours of rest, incentives of production environment factors in 2019 and penalties, and other issues related exceeded 1,372 workplaces. A special to the regulation of labor relations. assessment of labor conditions was carried out at 1,526 workplaces in the Head Office, The Bank ensures the safety of its the Shared Service Center, and the Regional employees during the operation of buildings Network for Republic of Tatarstan and facilities, trains and tests knowledge and the Russian Federation. in the field of occupational safety, the procedure for medical examinations, The Bank's employees receive timely provides special clothes, footwear, and other occupational health and safety training; personal protective equipment, detergents, undergo knowledge testing in compliance and disinfectants. with the procedure established by the current legislation of the Russian Federation. During In 2019, the Bank approved the Provisions on the reporting period, 5,517 employees received the Occupational Safety Management System training on occupational health and safety of Ak Bars Bank defining general requirements and have their knowledge tested. for occupational safety and a unified 41

All newly-enrolled employees, irrespective to additional examinations at the Bank's of the Service provided detailed advice of their education, work experience expense. on each inquiry under the current legislation in a particular job or position, receive on occupational health and safety. introductory briefings using the distance All employees are provided training course called “Introductory briefing with the opportunity to undergo for the occupational safety” updated in 2019. a fluorography examination in a health center, which also offers emergency medical Employees are acquainted with occupational care, medical manipulations, examinations, safety requirements via the “Occupational and specialists consultations. Sanitary Safety” IBM Lotus Notes Database posts have been set up in all buildings and the corporate portal my.akbars.ru of the Bank to provide urgent first aid in case with an open access for all employees of accidents. Pre- and post-trip medical working with PCs. check-ups are available 24 hours a day for drivers. The Bank has no workplaces involving harmful and/or hazardous working Following the Regulations on Internal Labor conditions. According to the Group of Ak Bars Bank, the employees are provided List approved in the Bank, employees with a working schedule so that when they of structural units involved in pollution- work with personal electronic computers related work are subject to mandatory the total amount would be less than 50% medical examinations. of working time.

Catering staff undergoes medical In 2019, expenses on occupational health examinations to protect public health and safety measures amounted to about and prevent the outbreak and spread RUB 13 million. During the reporting period, of diseases. When medical contraindications the Bank's Occupational Health and Safety are identified, employees are assigned Service received more than 100 inquiries from Bank employees. The specialists 42

Environmental impact management

In 2019, following the global community, the UN, and leaders of the Russian financial sector, Ak Bars Bank contemplated its “green” future and the implementation of sustainable development principles outlined by industry leaders for environmentally responsible financial institutions.

To comply with the principles of sustainable development, the Bank plans to bring its business strategy in line with the sustainable development norms, as follows:

Identify spheres with a negative Develop principles and approaches 1 and positive impact on society, economy, 4 for eco-work with stakeholders and environment. (shareholders, employees, clients, group companies, state and municipal authorities, etc.). Implement the principles of eco-friendly 2 risk management, review the drivers Determine the development vector of capital allocation. 5 and implement the principles of transparent management of both operating activities, projects, Identify areas of work with clients and innovation, and ensure transparency 3 to enhance the positive and reduce of reporting. the negative impact of the Bank on the environment. 43

For example, as early as 2019, while to quickly get rid of the accumulated planning and implementing transformational unnecessary things and thus exclude their projects, the bank conducted a large-scale emergence in the future. The organization training of employees engaged in project of a comfortable and efficient workplace and product teams and switched to flexible increases employee productivity. development of banking products. In 2019, over 200 offices of the Bank's branch network were optimized using Ak Bars Bank successfully integrates the 5S system. Consequently, the use >200 lean technologies into its operations. of the 5S system allowed reducing paper “lean laboratory assistants” The purpose of the transformation is consumption by 15% or more than among employees test to optimize the business as much as RUB 151 thousand. and improve the business possible by eliminating all types of losses. processes of the Bank More than 200 “lean laboratory assistants” Standardization of processes allows among employees test and improve for better control and rapid detection the business processes of the Bank, thus of deviations. All office employees increasing the level of customer satisfaction. upon implemented 5S develop a habit All retail offices of the bank in Tatarstan of the order, cleanliness, and continuous >200 have introduced the Japanese 5S system, improvement. offices of the Bank were op- which provides for the rational organization timized using the 5S system of workplaces. The 5S system helps 44

The Bank also implements the Green Belts The Bank's top management is actively Project, where active employees optimize involved in modernizing business their processes using the “Lean 6 Sigma” processes. In Japanese management methodology. As a result of the project practice, this approach is called Gemba. in 2019, the company managed to optimize Managers visit bank offices and look such processes as the selection for problems right at the workplace. of a mortgage product, consumer lending, Over 40 senior executives regularly and reduction of technical failures, perform Gemba at Ak Bars Bank. They loan application processing, relocation have a task to identify difficulties of versatile specialists, control over in a particular process and develop charging a commission for providing a solution for its optimization. The Gemba references to clients such as legal entities practice at the bank has led to the revision and individual entrepreneurs. In total, of many processes, which are regularly 10 processes were optimized within monitored and improved. Simplification the project. of processes allowed the bank to build a close and trusting relationship with its customers.

40 senior executives regularly go to Gemba 45

Electronic document flow

In 2019, Ak Bars Bank established In Ak Bars Bank, Certification Authority the Certification Authority, an electronic is applied in personnel document system certifying that the electronic management. Each employee has signature key belongs to a specific person, an enhanced unskilled digital signature, with an indication of his/her powers which is used to sign personnel documents 3985 and restrictions. in the personal account at the corporate website my.akbars.ru. An enhanced unskilled digital signature documents is used for document signing. Utilizing The Certification Authority is used an electronic signature, the owner certifies in Ak Bars Garant for the coordination have been signed since the documents and other media in digital of personnel and payment documents the Certification Authority was launched form. in the internal document flow of the company. 46

Work of the Committee on sponsorship and charity

• Assistance to educational institutions • Social protection for the elderly, assistance and education programs of the Bank to socially vulnerable groups and people with disabilities • Assistance to severely ill children, children with disabilities and children finding • Support for social events themselves in difficult life situations • Support for sports • Assistance to public organizations, cultural, medical institutions, etc. 47

In 2019, Ak Bars Bank under the guidance does not participate in voting, monitors of Z.F. Garaev, Chairman of the Management the implementation of the adopted decisions. Board, continued its large-scale charitable activities. The Commission for Sponsorship The Commission's activities are based on and Charity has been working an awareness of the social responsibility in the bank for more than 16 years, which principles faced by business. The priority 128 (30%) in cooperation with the AK BARS SOZIDANIE of the Bank's charitable activities includes appeals approved Charity Foundation addresses issues assistance to severely ill children and people of providing material support to people who have found themselves in a difficult life in need - those are orphans and children situation. Moreover, regular charitable work deprived of parental care, low-income is based on an ethical duty towards the older and large families, war and labor veterans, generation, war veterans, and responsibility 416 pensioners. The Bank's charitable projects for the younger generation including children appeals from organizations are targeted. and youth. and citizens were reviewed

Last year, the Bank received hundreds In 2019, the Commission reviewed of letters with requests for support from both 416 appeals from organizations and citizens Tatarstan and Russian regions. The meetings from different regions of Russia, 128 of them are convened at least once a month received a positive decision (30%). and the Secretary of the Commission, who 48

Assistance to severely ill children, children with disabilities and children finding themselves in difficult life situations

Improving the quality of life within society deprived of parental care in Apastovsky has become one of the key components municipal district. By helping children, of Ak Bars Bank's social responsibility policy. the Bank contributes to promoting such moral First of all, this means improving the material values in the society as kindness, compassion, situation of those in need, providing reciprocity, and caring attitude towards the necessary medical support, and creating the problems of neighbors. conditions for a healthy and active life. In addition to targeted assistance, In 2019, the Bank provided charitable support the Bank jointly with the AK BARS SOZIDANIE in the amount of RUB 2 276 000 to citizens Charity Foundation constantly works experiencing a difficult life situation. to socialize children with disabilities and allocates funds to medical institutions With the Bank's financial support, a tourist of the Republic. trip to Russian resorts was organized for 45 children from low-income and multi- child families, orphans, and children

RUB 2,276 mln 45 children the amount of charitable support from low-income and multi-child families given to citizens experiencing enjoyed tourist trips to Russian resorts a difficult life situations 49

Social protection for the elderly, assistance to socially vulnerable groups and people with disabilities

In 2019, Ak Bars Bank assisted 39 severely ill Thus, there are 54 social institutions children for purchase of medicines and means in the Republic of Tatarstan (orphanages of rehabilitation, undergoing treatment for children with mental disabilities, courses, surgery interventions in leading correctional boarding schools for children Russian and foreign rehabilitation centers, with health limitations), where about seven and medical institutions. thousand children with different degrees and types of diseases live and study. Besides providing the targeted assistance, the Foundation, in association with the Bank, has continuously worked on the socialization of children with disabilities, focusing on several projects being implemented. 50

Assistance to educational institutions and education programs of the Bank

Ak Bars Bank traditionally supports a long-term innovative educational program namely “50 Best Innovative Ideas of the Republic of Tatarstan” held in the Republic for the 15th time.

The projects of the contest are aimed a part of the event “Prepare to school”. For the 2019/2020 academic year, first-graders of Tatarstan, who received at solving the problems of the economic In 2019, the bank allocated RUB 224 000 Ak Bars Bank allocated funds for KFU an educational set on September 1 in their and social development of the Republic. for the purpose. students studying higher education programs. schools. In 2019, the mobile app and the book In 2019, the sponsorship allowed 10 young called “Journey to the Land of Ecology” scientists who presented relevant works The Bank supported Kazan (Volga For more than 20 years Ak Bars Bank holds covered the main environment-related issues in the field of science and technology Region) Federal University by sponsoring an annual campaign called “Gift to the first faced by the world population. development to use the money allocated the participation of a team from the Faculty grader”. The Bank prepares such teaching by the bank for the support of their scientific of Law in the international legal diplomacy materials for Tatarstan's first graders as Ak Bars Bank continued to support projects. competition “Day of the Crisis”. Also, in 2019, a book and a mobile application for learning the children's city of professions called Kazan (Volga Region) Federal University was two state languages of the Republic KidSpace. The developing project has The bank allocates funds regularly supported in the framework of the formation of Tatarstan as Russian and Tatar. 20 playgrounds, including one prototype to purchase season clothes and school of an award fund to ensure payment The educational set helps to expand of the bank. supplies for children from poor or multi- of the prize and granting the N.I. Lobachevsky children's horizons and knowledge in many child families of Apastovsky municipal Medal for Outstanding Work in Fundamental different fields. In 2019, as in previous years, district of the Republic of Tatarstan as and Applied Mathematics. the campaign covered more than 50 thousand

10 scientists RUB 224 thousand > 20 years 50 thousand received sponsorship were allocated to children from poor Ak Bars Bank holds an annual first-graders received an educational or multi-child families campaign called “Gift to the first- set presented on September 1st grader” 51

Support for social events Support for sports

Ak Bars Bank annually allocates funds to support The Bank annually supports the national holidays throughout Given the fundamental role of sports in creating a healthy the celebration of Victory Day in the Great Patriotic War the territory of the Republic of Tatarstan and beyond its society, Ak Bars Bank provides financial support to several honoring war veterans. borders. In 2019, the Bank allocated funds for the national sports organizations. holiday “Sabantuy”, and with the support of the Bank, the Eid The allocated funds were used to hold festive events, al-Adha holiday and the national holiday of Kryashens named In 2018, the Bank traditionally served as a sponsor charity lunches, and concerts, to organize fireworks. “Pitrau” were held in the regions of the Republic of Tatarstan. of the children and youth sports school “Volna”, a finance Traditionally, employees of Ak Bars Bank actively participated partner of the ice-hockey clubs “Ak Bars” and “Neftekhimik”, in the Immortal Regiment event on May 9 in Kazan. “Dinamo”, the basketball clubs “UNICS”, “Dinamo”, and the football club “Rubin”. The Bank supported the ping- pong sports group “Young Spartacist” to participate in off- site competitions and the Children’s Sports Martial Arts and Judo Club of the Republic of Tatarstan to hold the open Assistance to public organizations, cultural, children's festival of athletic martial arts. medical institutions, etc. As it has become a tradition, Ak Bars Bank acted as the Prime sponsor for the series of races named TIMERMAN. In 2019, the Bank supported the branch of the State In 2019, the Bank also allocated funds for the purchase They were not only attended by professional athletes, but Autonomous Healthcare Institution “Republican Narcological of equipment to complete the reconstruction of the rural house also by ordinary devotees of a healthy lifestyle. The running Dispensary” in Naberezhnye Chelny, the Republican Infectious of culture in Apastovsky district of Tatarstan. competition took place in all large cities of the Republic Disease Clinical Hospital named after Professor A. F. Agafonov, of Tatarstan and gathered tens of thousands of participants. City Hospital No. 5, the Republican Clinical Hospital, Children's Republican Clinical Hospital, as well as the Cheremshan Central District Hospital. 52

Conclusion

The social report of Ak Bars Bank for 2019 fully corresponds For 26 years, Ak Bars Bank has been steadily pursuing the goal The Bank will continue to follow the ideals and ethics of honest to the results of the Bank's purposeful work based on of creating favorable living conditions for the vulnerable, and reliable business raising the level of corporate social the principles of humanity and corporate social responsibility. supporting thos in need, and helping to solve the complex responsibility. problems of society. 53

Report of the AK BARS SOZIDANIE Charity Foundation

The AK BARS SOZIDANIE Charity Foundation is a non-profit organization registered on October 17, 2006.

Founder of the Foundation: Purpose of the Foundation: The main fields of activities of the Foundation are as follows: AK BARS-Medservice, LLC. • social support for citizens; • socialization of children with disabilities or children The mission of the Foundation: is to do a good deed in difficult life situations; to preserve family values by supporting children • assistance to state and municipal structures in solving social with disabilities and those without parental care, the older problems in the sphere of health, education, culture, sports, • preservation, restoration, and strengthening of health generation, and families in difficult life situations, as well as and ecology. of the younger generation; by creating favorable conditions for the development of civic initiative together with business and socially oriented non- Credo of the Foundation: • support of gifted children and talented young people; profit organizations in Russia. Do a lot, say very little, • support of gifted children and talented young people; Turn the word into action!

During the reporting period, the settlement account of the Foundation with Ak Bars Bank was cashed with the amount of RUB 21 624 037,15, including RUB 6 103 045,00 for administrative and household activities under the social programs. 54

THE “DO GOOD” PROGRAM (provision of targeted assistance to seriously ill people, support of social agencies working with disabled children)

The main activity of the AK BARS SOZIDANIE Charity Besides providing the targeted assistance, the Foundation, Foundation is to help seriously ill people within the framework in association with the Bank, has continuously worked of the “DO GOOD” program. on the socialization of children with disabilities by implementing several projects. During 2019, the Foundation assisted 39 seriously ill children for purchase of medicines and means of rehabilitation, undergoing treatment courses, surgery interventions in leading Russian and foreign rehabilitation centers, and medical institutions.

The Foundation, in association 39 with the Bank, has continuously severely ill children worked on the socialization of children with disabilities, there are several were assisted in purchasing medicines projects in action. 55

All-republic festival of children's theatrical studios for children with disabilities “Theater – All Inclusive“

Objective: facilitation of the rehabilitation Program: There are 54 social institutions Following the rules of the Festival, Results: in 2019, 22 performances and socialization of children with disabilities in the Republic of Tatarstan (orphanages participants are faced with many by various children's theater studios through developing their creative abilities for children with mental disabilities, challenges: the School of Young Artist, of the Republic were prepared, 9 of which and their involvement in theatrical activities. correctional boarding schools for children where mentors are known masters of acting had the honor to perform at one of the most with health limitations), where about seven and stage art, the preparation of the script prestigious professional venues of Kazan Participants: students of “special“ children's thousand children with different degrees of their production, the distribution of roles, together with leading actors of the Tatar theatrical studios under social institutions and types of diseases live and study. and performance on the professional stage. stage. Actors of theater groups invited of the Republic of Tatarstan working to play on the big stage admit that with children with disabilities and leading Application of social theatre technology The provision of the opportunity for each they «managed to overcome their fear actors of the Tatar State Drama and Comedy improves speech, self-esteem, and as child to reveal his or her acting talents of appearing in public and demonstrated Theater named after K. Tinchurin. a result, the emotional intelligence of special constitutes the main feature and peculiarity their strong points and creative potentia». children enriches their inner world. That of the performance. is why every year AK BARS SOZIDANIE Plans: the creation of a functioning together with Ak Bars Bank holds a national theater platform for further promotion festival of theatrical studios. of “Theater — All Inclusive“.

Approximately 7 thousand children live and study in social institutions in Tatarstan 56

Children's Center for Interactive Communications Good Center of Changes “Mutual Understanding“

Objective: rehabilitation of children Results: in 2019, 8 children recovered their Objective: the arrangement of an efficient Results in 2019: 28 children with disabilities by applying contemporary feet and learned to keep balance, 7 children rehabilitation of children with disorders showed improvement in speech methods, such as hippotherapy started to move on their own, 5 children of the central nervous system development, 17 children got better and zootherapy under the Municipal Budget began to move with some support, all in the Children’s Outpatient Center with the locomotor system, 19 children Institution of Culture “Kazan Zoological the participants showed an improvement for Rehabilitation Treatment under the State demonstrated a reduction of the muscle and Botanical Garden“. of the emotional condition. Autonomous Healthcare Institution “Kazan tone, 17 patients showed a better Children’s Psychoneurological Sanatorium“. motivation for training. Participants: in 2019, 30 children Plans: to attract additional specially with disabilities were engaged trained horses will be a new starting point Participants: 123 children with congenital Plans: the arrangement of training in therapeutic horse riding free of charge. for increasing the length of the session diseases of the CNS aged 2 to 14 years of the employees of the Center with new and will help to engage a higher number and medical staff of the Kazan Children’s methods of rehabilitation and treatment Program: Horse riding sessions are divided of children in hippotherapy. Psychoneurological Sanatorium. of children with diseases of the CNS, into two blocks: attraction of a large number of volunteers as Program: massage, hydromassage, trainers for certain educational disciplines, • Once a week for 30 minutes rehabilitation gymnastics, phytotherapy, and organizing workshops. of hippotherapy sessions, once a week orthopedics, speech therapy, balneotherapy, for 30 minutes of zootherapy sessions and labor therapy rooms are in operation during six months; in the Center.

• 2 times per week for 30 minutes of hippotherapy sessions, 2 times per week for 30 minutes of zootherapy 8 children 28 children 17 children sessions during three months. recovered their feet and showed improvement see the improvement learned to keep balance in speech development of the locomotor system 57

Crowdfunding for the greater good

Objective: to provide effective targeted of RUB 105,870.14. These funds were Besides, the Foundation purchased Healthcare Institution “Republican assistance to seriously ill children used to purchase the vital medicine named a multifunctional complex “Gross Clinical Hospital of the Ministry of Health and children with disabilities via Hyaneb for Yegor Korsanov. Exercise Unit» under the “DO GOOD“ of the Republic of Tatarstan“, the branch crowdfunding platforms. program for disabled children, who of the State Autonomous Healthcare Plans: creation and active promotion attend the State Budgetary Institution Institution “Republican Narcological Sites: Service of good deeds called Dobro. of a charity QR code for more effective work “April“Rehabilitation Center for Children Dispensary“ in Naberezhnye Chelny, Mail.Ru, the Goody widget, Help Needed on assisting. and Teenagers with Disabilities the the State Autonomous Healthcare Charity Foundation. of the Republic of Tatarstan“ in Kazan, Institution “Republican Infectious provided rehabilitation and interactive Disease Clinical Hospital”, and the State Results in 2019: this program together equipment to families of Apastovsky Autonomous Healthcare Institution “City with the active involvement of the sponsors municipal district, bringing up children Hospital No. 5“ (Naberezhnye Chelny). has become a real trend of the outgoing with disabilities, equipped playgrounds year, raising the amount of RUB 646,829.99 in Vvedensko-Slobodsky rural settlement online. The funds were used to perform of Verkhneuslonsky municipal district, an expensive ear restoration surgery allocated funds to the State Autonomous and to correct asymmetry in the face of a four-year-old Bulat, to restore Roman's hearing and to purchase a hearing aid The Foundation purchased for Veronica. It should be noted that due to the program launched in September a multifunctional complex 2019 by Ak Bars Bank in the pilot mode, “Gross Exercise Unit” under C2B (Consumer-to-business) transfers via the Faster Payment System (FTP) the “DO GOOD” program also brought results in the amount for disabled children. 58

«WE ARE TOGETHER!» PROGRAM (Socialization of children in difficult life situations)

For several years, an orphanage in Yelabuga municipal with the post-graduate supervision service for graduates district of the Republic of Tatarstan has been under of the orphanage and foster parents to help the new the patronage of AK BARS BANK and the AK BARS SOZIDAN graduates to solve various problems, both household, IE Charity Foundation. and personality-related ones.

The Foundation actively supports orphaned children As a part of the national project “Each Child Matters and helps to solve the problems of the orphanage. for Russia“ and the district project “BRINGING As of 01.01.2020, 28 children are living in the orphanage, CHILDHOOD BACK“, with the financial support where all necessary living conditions have been created, by Ak Bars Bank, the Foundation has implemented as well as creative workshops that promote imagination the following educational programs. and creativity and increase social competence. To add to the above, the Foundation cooperates closely

With financial support from Ak Bars Bank, the Foundation conducts educational programs. 28 children live in the orphanage in Yelabuga municipal district of the Republic of Tatarstan 59

“Charity Entrepreneur” educational project

Objective: training orphans aged regarding the solution of pressing social From November 12 to 18, 2019, 42 children Before the start of the educational course 13 to 18 years staying in specialized programs in their region as a result and 28 curators and teachers from in Kazan in September and October, institutions of the Volga Federal District, of the training and defense of the business 14 regions of the Volga Federal District the project participants took the entrance techniques of planning the personal budget cases. participated in an educational session on test, learned the basics of financial literacy by involving them in project activities economics, which took place in the Baytik via the Stepik Educational Platform, regarding the social entrepreneurship. Results: In 2019, the AK BARS SOZIDANIE Health-Improving and Educational Complex and prepared essays and proposals on social Charity Foundation held the IV intake (Kazan). entrepreneurship for further development Participants: boarders (high school of participants for the district educational of the business plan of their initiative. students) of specialized institutions project ”Charity Entrepreneur“ for orphans and children left without for children from orphanages of the Volga parental care of the Volga Federal District Federal District, which was supported from 13 to 18 years, teachers of orphanages by the Ministry of Economy of the Republic of the Volga Federal District, intellectual of Tatarstan, Sberbank Charity Foundation volunteers (mentors). “Contribution to the future”, Ritek, JSC, and Ak Bars Bank. This project is carried out Program: multilevel training that to implement the project named “Promoting covers basics of the financial literacy Financial Literacy of the Population 42 children and 28 curators and teachers and entrepreneurship activities consisting and Development of Financial Education from 14 regions of the Volga Federal of a video course, a contest of social in the Russian Federation”. business ideas, a professional economic District participated in an educational session that provides for grant-based session on economics held in the Baytik support of the children’s initiatives Health-Improving and Educational Complex (Kazan). 60

Throughout the week, young entrepreneurs Wellbeing) in the Republic of Tatarstan, the educational session on economics have Plans: expanding the project's geography in Kazan, together with their mentors, Sberbank, PJSC, Center for Innovation been approved for defense. with the subsequent involvement were mastering modern business processes of the Social Sphere of the Republic of specialized educational institutions in various fields, discovering leadership of Tatarstan, AK BARS INSURANCE, LLC, Following the successful presentation working with orphans and children left skills and showing their best talents. Ak Bars Capital Management Company, LLC, of the participants' business plans, without parental care from the Vologda In the course of their session, children Entrepreneurship Factory of the Republic the awarding ceremony of the winners and Tambov regions. acquired knowledge on financial literacy, of Tatarstan, Kazan (Volga Region) Federal of the IV District Contest of Children's information security, basics of advertising University, TeamSoft Training Company, Initiatives “Charity Entrepreneur” was and PR, social entrepreneurship, unsafe CITY LIFE, LLC, Shaymardanov, Yalilov conducted. 22 projects received funding, financial instruments, investments, and legal and Sabitov Law Firm, etc. free of charge. and one participant was awarded a special support. Besides, the participants were prize for a successful presentation. able to take part in the Championship Following the results of the training on in case solving, business games, workshops November 18, children's initiatives were “Charity Entrepreneur” is a diploma winner given by successful social entrepreneurs, presented to the jury, which included of the All-Russian competition called and many others. representatives of the Public Chamber “100 best goods of Russia”, a nominee of the Republic of Tatarstan, Ak Bars Bank, of the All-Russian prize in the field The classes were conducted by experts Sberbank, PJSC, Center for Social of a charity called “Face of the Nation”, from the National Bank for the Republic Innovation of the Entrepreneurship a winner of the Republican contest of Tatarstan of Volga-Vyatka Support Foundation of the Republic “Best goods and services of the Republic Head Department of the Central of Tatarstan and the AK BARS SOZIDANIE of Tatarstan 2019” and was included Bank of the Russian Federation, Charity Foundation. 37 projects that in the 100 best childhood projects selected the Department of Rospotrebnadzor children, together with their supervisors by the Foundation for Presidential Grants (Federal Service for Surveillance on and teachers, developed during among 2,300 projects that were financed Consumer Rights Protection and Human and implemented from 2017 to 2019. 37 projects

being the part of children initiatives have been accepted for presentation to the jury 61

“Corporate Tutorship” project

Objective: the creation of strong tutorship • corporate mentors (specialists of such Results in 2019: 30 graduates of boarding ties for adolescents and graduates partner-enterprises as Megafon, institutions took vocational guidance of orphanages, assistance with the self- PJSC in the Republic of Tatarstan, courses and were employed for the summer definition, motivation increase GORVODZELENKHOZ MUNICIPAL period. for the search for work, and creation UNITARY ENTERPRISE TREST, “TechCenter of opportunities for apprenticeship na Naberezhnoy” Automobile Workshop, Plans: involvement of senior students of all and successful employment through BURGER KING fast food restaurant, 10 boarding institutions of the Republic the implementation of the network project Kazansky DSK, LLC, AK BARS GARANT, of Tatarstan and children who grow for the corporate tutorship in association LLC, AK BARS INSURANCE, LLC, in foster families, increasing the number with the Childhood Keepers Foundation Ak Bars Bank, PJSC) of participants to 50 teenagers with their (Moscow) and Megafon, PJSC. subsequent employment. Program: meetings to get teenagers Participants: acquainted with a wide range of professions; webinars and training • high school students and graduates of such are held for future tutors; and future boarding institutions of the Republic graduates of orphanages attend of Tatarstan as Orphanage of Volga District professional orientation sessions. As a result 30 graduates of boarding institutions in Kazan, Kazan Boarding School No. 11, of the training, high school students have took vocational guidance courses Yelabuga Orphanage, Nurlat Orphanage; completed internships at partner companies during summer vacations and graduates and were employed for the summer • specialists of the Kazan Employment have been employed. period. Center; 62

“We live as one family on the banks of the Volga” project

Objective: to identify and support talented school for children with disabilities Thus, the Foundation's educational and creative programs with the support children among orphanages of the Volga of Verkhovondanka village of the Kirov of the Bank are intended to help children win and overcome internal Federal District who are interested Region were organized for all participants barriers through a conscious choice of their destiny, which they accomplish in creative work. and were devoted to such arts and crafts with the help of properly built motivation. techniques as “Cut and paste from straw”, Participants: students of the boarding “Salted dough” and “Leather products”. institutions of the Volga Federal District at the age of 7-18 years. Through hard work and a willingness to brighten the world, many children choose Results in 2019: every year this project a life path associated with the art. In the last attracts a significant number of participants, five years alone, 64 graduates of Volga which means that the competition is Federal District orphanages have graduated Foundation's educational in demand in the regions of the Volga from educational cultural institutions. Federal District. 300 applications were and creative programs with the support submitted in 2019, and only 104 of them Plans: support for graduates from were awarded by the jury. Besides, the Volga Federal District who have chosen of the Bank are intended to help workshops conducted by teachers a profession related to creativity and art. children win and overcome internal from Yelabuga and Nurlat orphanages of the Republic of Tatarstan and a boarding barriers through a conscious choice of their destiny. 63

“IN THE BIG FAMILY” PROGRAM (popularization of the institution of the family, targeted support for low-income families with many children, elderly foster parents, foster and substitution families)

As a part of the federal project “The Strong Family”, in 2019, the Foundation worked in the following fields.

“When the grandmother becomes the mother” project

Objective: providing the psychological and pedagogical assistance Results in 2019: as a result of the work in cooperation with partners to families of an elderly foster parent bringing up the children left and volunteers of the project, the 30 children brought up by elderly without the parents’ care. foster parents expanded their horizons and increased their self- esteem. Arrangement of the leisure time in a useful manner provided Participants: elderly foster parents of Kazan and their underage the children and their foster parents with opportunities to disclose charges. themselves on the creative part, to improve the sociability, to develop socially valuable personal relations and qualities, as well Program: a range of events involving 30 orphans along with their as to travel and to improve their health. Moreover, the consultancy elderly foster parents that promote their competence in terms support for the foster parents, tutorship ties between the children of the self-awareness building inter-personality relations, as well and the volunteers, as well as the arrangement of the joint family 30 children as mitigation of the children’s lagging under the school disciplines. recreation promoted the improvement of the emotional environment expanded their horizons The program of the sessions has been compiled in consideration in the families finding themselves in difficult situations. and increased their self- of the needs and capabilities of the children identified in the course esteem of the testing. 64

“116.ru – The Land of Childhood” project

Objective: the arrangement of mass Results in 2019: charity children's events with non-profit organizations playgrounds were organized of the Republic of Tatarstan for children with the support of municipal authorities and with children intended to develop and Ak Bars Bank during festive events an active civil position with the younger devoted to the 74th anniversary of Victory In 28 municipal generation. in the Great Patriotic War (7 municipal districts) and the celebration of the national districts Participants: NPOs of the Republic holiday “Sabantuy” in 28 municipal districts of the Republic of Tatarstan of Tatarstan, families bringing up children of the Republic and in Novosibirsk, were organized Charity with disabilities, poor families with many the Republican campaign called “Help children's playgrounds children, elderly foster parents, and their to prepare to school” supported 20 low- charges, adopting and substituting families. income families, which live in various municipal districts of the Republic Program: the arrangement of themed and the New Year campaign named “Good “hotlines” to monitor certain socially without borders” was held in 8 municipal 20 families sensible issues, questionnaires to identify districts. were supported problems of families bringing up special children, educational interactive events for children and adolescents, consultancy grounds for specialized experts in the field of childhood for parents and foster parents. 65

“The Public Initiative” project

Цель: support of socially valuable PROBLEMS OF DEVELOPMENT Faculty of Economics, consisting initiatives by non-profit organizations AND INTERACTION”. Alfiya Valieva, Director of 17 students and 5 teachers. and the development of mechanisms of the Foundation and member of the Public for financing within the social field. Chamber of the Republic of Tatarstan, was This meeting was organized within invited to the conference as an expert from the framework of the “Charity Entrepreneur” Participants: social institutions the Volga Federal District and delivered educational program that covers the basics of the Republic of Tatarstan, Socially the report “Public reporting in the field of financial literacy and social business Oriented Non-profit Organizations of sustainable development of the third for children from orphanages. of the Republic of Tatarstan and the Russian sector as an indicator of civil society” Federation. at the section platform called “Society, business, government: effective practices Program: the Foundation holds of interaction”. On July 8, 2019, the AK BARS SOZIDANIE the workshops and provides an information ground by publishing the materials On July 8, 2019, the AK BARS SOZIDANIE Charity Foundation hosted a round table on the web portal of the Foundation Charity Foundation jointly with the Public to implement social projects at a higher Chamber of the Republic of Tatarstan on “Social Innovations in the Third Sec- professional level, to ensure financial hosted a round table on “Social Innovations tor of the Republic of Tatarstan: Practices transparency. Moreover, the Foundation in the Third Sector of the Republic allocates funds as a part of the Republic- of Tatarstan: Practices and Challenges” and Challenges”. wide contest “The Public Initiative”. at the Talent Development Centre of Ak Bars Bank. The event was attended Results in 2019: by representatives of the leading non-profit On May 24-28, 2019, the 35th All- organizations of the Republic and a foreign Russian Adler Academic Conference delegation of the Edinburgh University titled “PERSONALITY. SOCIETY. STATE. 66

It was the implementation of the project On November 10-12, 2019, the II All-Russian of the AK BARS SOZIDANIE Charity Plans: consultancy support and further in Russia that first and foremost attracted Conference titled “Experience and Role Foundation called “Charity Entrepreneur” participation in the development of socially the visitors, since the development of NPOs in the Sphere of Childhood was among the 100 best projects. Alfiya oriented NPOs of the Republic of Tatarstan, of social entrepreneurship, in particular, Protection and Wellbeing: Uniting Efforts” Valieva, Director of the Foundation, financing projects of the Republic-wide children's entrepreneurship, and the field was held in the Senege Management Deputy Chairperson of the Public Chamber contest “The Public Initiative” to improve of social finance constitute issues Workshop in Solnechnogorsk. It was of the Republic of Tatarstan was invited living standards of socially vulnerable that are quite relevant and popular attended by over 150 NPO representatives to deliver a speech at the conference, citizens of the Republic. in the British non-profit sector. Studying and experts in person and more than where she also presented the project called the experience of social transformation 600 remotely. “Charity Entrepreneur”. investments in other countries can be an excellent research work in the field The expert group selected almost Besides, funds have been allocated of social investment for future graduates 700 projects out of a total of more than to support four social projects of NPOs of Edinburgh University. 2,300 projects devoted to the issue of child implemented in municipal areas protection implemented and funded of the Republic under the national contest between 2017 and 2019, and the project called “The Public Initiative”.

over150 over 600 > 2 300 NPO representatives and experts NPO representatives and experts attended projects were devoted attended the Senege Management the Senege Management Workshop remotely to child protection Workshop in person 67

Figures of the Foundation for 2019 22 24 30 35 Children's Social Business social institutions have children, graduates elderly guardians took Initiatives of the Volga Federal purchased the most modern of orphanages of the Republic part in the “When District orphanages received equipment of Tatarstan were provided the grandmother becomes funding under the “Charity with employment during the mother“ project Entrepreneur“ project the summer holidays by the Foundation's partners

123 168 491 people received targeted orphans participated families became members assistance in treatment in financial literacy of the Foundation's program and rehabilitation, as well as and economic security called “In the big family“ in purchasing expensive medical activities and rehabilitation equipment through the program named “DO GOOD“ 68

The Charity Foundation's key activity is to address the issues and appeals received from individuals and legal entities. The Foundation sends inquiries to social protection bodies, health care, and education 67 409 institutions to confirm the reliability applications applications received of the facts indicated in the letter. were rejected a favourable decision

The Foundation received 519 letters requesting assistance during the reporting period. 18 519 A positive decision was made applications are on 409 applications, 67 were under consideration letters requesting assistance rejected, 18 are under consideration, and 25 letters were not considered due to the lack of necessary documents. 25 applications were not considered 69

Awards and certificates of the AK BARS SOZIDANIE Charity Foundation in 2019

The diploma winner of the All-Russian competition Winner of the Republican contest “Best goods The Foundation’s public report for 2018 is the holder 1 called “100 best goods of Russia“ for the project “School 4 and services of the Republic of Tatarstan 2019“ 7 of the “Gold Standard“ at the X contest of public annual of Charity Entrepreneur“ . for the educational project “Charity Entrepreneur“. reports of the non-profit organization “Starting point“.

Nominee of the All-Russian prize in the field of a charity The “Charity Entrepreneur” is a winner of the fourth Winner of the IV Grant Competition organized 2 called “Face of the Nation“ in the category “Charitable 5 “Good New Year's Gift“ contest for non-profit 8 by the TATNEFT company for the project called “Route project in the culture, art, and education “for the project organizations (NPOs) sponsored by Charity Foundation of Mercyt“. “Charity Entrepreneur“. “Contribution to the Future“ in the category titled “Support of children in difficult life situations left without parental care“. Winner in the X contest for social and cultural projects The “Charity Entrepreneur“ was included in the 9 by LUKOIL, PJSC in the Republic of Tatarstan. 3 100 best childhood projects selected by the Foundation for Presidential Grants among 2,300 projects that were The Director of the Foundation was awarded the prize Winner of the Republican contest for grants financed and implemented from 2017 to 2019 as well 6 “THANKS FROM PARENTS“, established by the All-Russian 10 provided by the Cabinet of Ministers of the Republic as presented at the II All-Russian Conference called public organization “All-Russian organization of parents of Tatarstan to non-profit organizations involved “Experience and Role of NPOs in the Sphere of Childhood of disabled children and disabled persons older than in socially significant projects Protection and Wellbeing: Uniting Efforts“ organized 18 years with mental and other violations, who by the Foundation for Presidential Grants, the Agency require the representation of their interests“ (VORDI) Winner of the competition among socially oriented for Social Information, Severstal, PJSC and the Senege in the category “For commitment to the interests 11 non-profit organizations to receive a subsidy from Management Workshop. of children and adults with health limitations the budget of the Republic of Tatarstan in 2019. and disabilities“.