3.1.3 Key Performance Indicators

The KPIkey performance indicators system is divided into two groups of indicators: key performance indicators and functional key performance indicators. KPIskey performance indicators are indicators, based on Company’s strategic documents used to evaluate the efficiency of Company’s executives (General Director, General Director Deputies, Chief Accountant), FKPIfunctional key performance indicatorss are individual indicators set for the Company’s officials individually, tailored to their field of concern. The KPIkey performance indicators and FKPIfunctional key performance indicators system is coupled with the variable management’s remuneration (50% for KPIkey performance indicators and 50% for FKPIfunctional key performance indicators): each indicator has its own weight in bonuses, annual remunerations are paid, provided that the relevant KPIskey performance indicators are completed. KPIskey performance indicators and FKPIfunctional key performance indicatorss as well as 2025-2027 targets are set in line with the Charter^[4] and Board of Directors’ resolution^[5].

Indicator	Calculation methodology	Weight //Bonus reduction for 2025, %	MU	2025 Target	2025 actual value⁽¹⁾	Evaluation of accomplishment in 2025 (%, accomplished/ not accomplished)⁽²⁾	Reasons of non-accomplishment	2026 Target⁽³⁾	2027 Target⁽³⁾
FINANCIAL AND ECONOMIC KEY PERFORMANCE INDICATORS
ROICreturn on invested capital	Operating income, adjusted for PP&E impairment (reversal of impairment), revenues from connection and ECL provision (ECL provision recovery) / sum of average equity and long-term loans and borrowings	10	%	11. 6	12.1	104% accomplished	-	15.5	15.3
Operating margin	Operating income, adjusted for PP&E impairment (reversal of impairment) and revenues from connection / revenues, net of revenues from connection	20	%	11.6	11.6	100% accomplished	—	16.2	16.7
Net profit, net of impairment and connection	Profit / (loss), adjusted for PP&E impairment (reversal of impairment) and revenues from connection (incl. income tax)	20	RUBruble thous.	7,516,561	8,448,697.0	112% accomplished	—	14,278,485	16,417,864
SPECIFIC INDUSTRY KEY PERFORMANCE INDICATORS
Loss level	Electricity losses in the Company’s networks (difference between total supply and net supply and consumption for own needs), multiplied by amount of discrepancies for previous periods, settled against the Company / total supply for the reported period	15	%	6.04	6.01	100% accomplished	—	5.73	5.67
Readiness for the heating season	Indicator evaluating Company’s readiness for the heating season, based on the Ministry of Energy’s monthly monitoring	20	Unit	1	1	100% accomplished	—	1	1
Compliance with the facility launch schedule	Total actual fixed assets, commissioned during the reported period, determined by the investment program completion report (in monetary terms, based on the date of signing of the Acceptance Act by the inspection board) / target fixed assets pursuant to the approved investment program and launch schedule	15	%	100.0	100.1	100% accomplished	—	100.0	100.0
INDICATIVE FIGURES
Achievement of the National Investment Climate Rating’s factor “Efficiency of connection procedures”	Indicator is defined on the basis of the degree of achievement of the benchmarks related to the National Investment Climate Rating’s factor “Efficiency of connection procedures” in regions of the Company’s footprint	Indicative figure	%	100.0	116.9	116.9% accomplished		100.0	100.0

(1) 2025 value is expected value of KPIskey performance indicators accomplishment, with due regard to the timeline of the reports used for their calculation. Actual values are subject to approval by the Board of Directors.

(2) If KPIkey performance indicators achievement percentage exceeds 120%, one should insert the one equal to 120%; if KPIkey performance indicators achievement percentage is below 80%, one should insert the one equal to 0%.

(3) Composition and target values of the indicators are adopted by the Board of Directors^[5].

Indicator	Calculation methodology	Bonus reduction for 2025, %	MU	2025 Threshold value	2025 actual value⁽⁴⁾	Evaluation of accomplishment in 2025 (%, accomplished/ not accomplished)	Reasons of non-accomplishment	2026 Threshold value⁽⁵⁾	2027 Threshold value⁽⁵⁾
BONUS REDUCTION FACTORS
Maximum limit of discrepancies over losses as of the end of the reported period (year)	Bonus reduction factor, calculated as discrepancies as of the end of the reported period (year) (unsettled as of the end of the second month of the year following the reported one), not covered by litigation work / Company’s electricity losses	-10	%	0.54	0.15	accomplished	—	0.54	0.54
Infringements of transactioning procedures	Indicator evaluating absence of violations in procedures related to consummation of large-scale transactions, related-party transactions as well as transactions, subject to approval in line with the Charter	-10	number	0	0	accomplished	—	0	0
Timely execution of remedial action plans	Indicator, evaluating timeliness of execution of remedial action plans during the reported period by the Company, prepared and adopted after compliance measures, conducted with regard to the Company, and audits and inspections, conducted by the boards of internal auditors	-10	%	90	100	accomplished	—	90	90
Bonus reduction indicator for failure to achieve results under the approved Digital Transformation Strategy (Program)	A bonus reduction decision is taken if one or more of the four evaluation criteria occur. The indicator is assessed within the framework of the Company’s approved investment program.	-20	%	100	100	accomplished	—	100	100
Bonus reduction indicator for untimely, incomplete, or inaccurate disclosure of information required to monitor the achievement of KPIskey performance indicators and FKPIfunctional key performance indicatorss	The Board of Directors, on the proposal of PAOPublic Joint-Stock Company Rosseti, takes the decision on bonus reduction if two or more requests are sent to the Company regarding untimely, incomplete, or inaccurate provision of information required to monitor the actual achieved KPIskey performance indicators, FKPIfunctional key performance indicatorss, and deduction indicators.	-20	%	100	100	accomplished	—	100	100

⁽⁴⁾ 2025 value is expected value of the bonus reduction factors accomplishment, with due regard to the timeline of the reports used for their calculation. Actual values are to be approved by the Board of Directors.

⁽⁵⁾ Composition and threshold values of the indicators are adopted by the Board of Directors^[5].

Indicator	Calculation Methodology	Official, liable for FKPIfunctional key performance indicators achievement in 2025	MU	2025 Target	2025 actual value⁽⁶⁾	Evaluation of accomplishment in 2025 (%, accomplished/ not accomplished)⁽⁷⁾	Reasons of non-accomplishment	2026 Target⁽⁸⁾	2027 Target⁽⁸⁾
FUNCTIONAL KEY PERFORMANCE INDICATORS
EBITDAearnings before interest, taxes, depreciation and amortization	Income / (loss) prior to taxation, depreciation and amortization and interest payable, adjusted for PP&E impairment (reversal of impairment) and revenues from connection	General Director; First Deputy General Director – Chief Operating Officer; Deputy General Director for Economics and Finance	RUBruble thous.	24,870,831	25,200,777	100% accomplished	—	33,814,773	37,135,201
Obtainment of certificate of readiness for the heating season	Timely obtainment of certificate of readiness for the heating season prior to 05 November of the reported period, pursuant to the Rules on the evaluation of readiness for the heating season^[6]	General Director; First Deputy General Director – Chief Operating Officer	units	1	1	100% accomplished	—	1	1
Absence of large-scale incidents in the networks, subject to investigation by Rostekhnadzor	Calculation of the indicator includes incidents in the Company’s networks classified by a Rostekhnadzor’s commission in line with clause 4 of the Rules for investigation of power sector incidents^[7]	First Deputy General Director – Chief Operating Officer	number	0	0	100% accomplished	—	0	0
Efficiency of innovative activities	Integral indicator of efficiency of innovative activities evaluates the accomplishment of 3 indicators: R&Dresearch and development expenses, procurements of innovative products, quality of development (update) of the IDP / execution of the IDP	First Deputy General Director – Chief Operating Officer	%	98.0	98.0	100% accomplished	—	98.0	98.0
Improvement in labor productivity relative to 2022	Value added across all types of services / average headcount (Comparison with the 2022 baseline)	Deputy General Director for Economics and Finance; Deputy General Director for BP Transformation, Digitization and IT; Deputy General Director – Head of Office	%	15.0	61.3	100% accomplished	—	х	х
Active staff turnover	Total number of the Company’s employees dismissed at their own request pursuant to Clauses 3 (termination of the employment agreement at the employee’s initiative) and 5 (transfer of the employee, at their request or with their consent, to work for another employer, or transfer to an elected office/position) of Article 77 of the Russian Labor Code / average headcount for the reporting period	Deputy General Director – Head of Office	%	6.5	4.8	100% accomplished	—	6.5	6.5
Staffing level	Staffing levels, reduced by the number of vacant positions / staffing level under the Company’s staffing schedule as at the end of the reporting period	Deputy General Director – Head of Office	%	92	94	100% accomplished	—	92	92
Compliance with the time limits for technological connection	A composite indicator assessing the quality of technological connection to the networks, consisting of two components: quality of review of technological connection applications and quality of performance of technological connection agreements.	Deputy General Directors for Investments and Capital Construction; Deputy General Director for Connection and Development of Additional Services	Rel.unit	1.1	1.1	100% accomplished	—	1.1	1.1
Debt/ EBITDAearnings before interest, taxes, depreciation and amortization	LT+ST loans and borrowings / EBITDAearnings before interest, taxes, depreciation and amortization	Deputy General Director for Economics and Finance	Rel.units	1.0	1.0	100% accomplished	—	0.8	0.7
Effectiveness of the transition to the use of domestically produced software	Calculated as a share (percentage) of installed Made-in-Russia software in the total volume of installed software of the Company that implements its BoDBoard of Directors-approved schedule for transition to preferential use of domestically produced software	Deputy General Director for BP Transformation, Digitization and IT	%	88.9	96.9	100% accomplished	—	90.0	92.0
Overdue electricity transmission receivables	Non-exceedance of actual value of overdue receivables (net of moratorial debt) as of the reported period over the target value	Deputy General Directors for Sales; Deputy General Director for Legal Affairs and Corporate Governance; Deputy General Director for Security	RUBruble thous.	1,062,660.1	971,962.2⁽⁹⁾	100% accomplished	—	457,679.1	174,575.7
Preservation of the Company’s property	The indicator takes into account instances of theft or deliberate damage to the Company’s main technological equipment at classified substations	Deputy General Director for Security	%	100	100	100% accomplished	—	100	100
The Company’s credit rating assigned by a national rating agency	Determined by means of a rating analysis conducted by a Russian rating agency accredited by the Bank of Russia with which the Company has entered into a rating services agreement.	General Director; Deputy General Director for Economics and Finance; Deputy General Directors for Sales; Deputy General Director for Legal Affairs and Corporate Governance	Rating scale	at or above AA+	АА+	100% accomplished	—	at or above AA+	at or above AA+
Ensuring compliance with insider information protection requirements and maintaining the listing of shares	A composite indicator assessing the level of the Company’s corporate governance, consisting of two components: ensuring compliance with insider information protection requirements and maintaining the listing of shares	Deputy General Director for Legal Affairs and Corporate Governance	%	100	100	100% accomplished	—	100	100
Timely conduct of AGM by the Company and its subsidiaries	The calculation uses cases of non-compliance with the statutory terms for the conduct of AGM by the Company and its subsidiaries	Deputy General Director for Legal Affairs and Corporate Governance	%	100	100	100% accomplished	—	100	100
Approval of the Company’s action plan aimed at implementing the Development Strategy of the Rosseti Group of Companies	The calculation uses the fact of approval by the Company’s Board of Directors of the action plan aimed at implementing the Development Strategy of the Rosseti Group of Companies during the reporting period.	General Director	%	100	100	100% accomplished	—	х	х
Share of contracts concluded upon completed tenders conducted in electronic form	Calculated as the ratio of the number of procurement procedures conducted electronically and resulting in the execution of expenditure contracts to the total number of procurement procedures (competitive and non-competitive) resulting in the execution of expenditure contracts	General Director	%	70.0	79.3	100% accomplished	—	74.0	78.0
Approval of the Company’s accounting (financial) statements, as well as maintenance of accounting records in the Company without remarks from the auditor and the board of internal auditors during inspections based on the results of the reporting period	When assessing the indicator, remarks (errors) relating to the annual accounting (financial) statements and to the maintenance of accounting records are taken into account, as well as the materiality threshold established by auditing standards	Chief Accountant – Head of Accounting and Tax Reporting Department	%	100	100	100% accomplished	—	100	100
Effectiveness of the transition to the use of domestically produced radio-electronic products	Determined as the share (percentage) of Russian-made radio-electronic products procured by the Company in the total volume for the Company implementing a plan for transition to preferential use of domestically produced radio-electronic products	First Deputy General Director – Chief Operating Officer; Deputy General Director for BP Transformation, Digitization and IT	%	78.0	89.3	100% accomplished	—	79.0	80.0
Effectiveness of sales of additional services	The indicator assesses achievement of planned revenue from the sales of additional services and achievement of planned gross profit from the sale of additional services for the reporting period.	Deputy General Director for Connection and Development of Additional Services	%	100	145	100% accomplished	—	100	100
Level of execution of production and target programs	An integrated indicator assessed by two sub-indicators: execution of the maintenance and repair plan in terms of work at substations and power lines, and, from 2027, execution of target programs for equipment, being in operation for 50 years or more.	First Deputy General Director – Chief Operating Officer	%	100	100	100% accomplished	—	100	100
Effectiveness of operation of electric vehicle charging infrastructure	Calculated as the ratio of the aggregate uptime of all of the Company’s electric vehicle charging stations on the network to 100% of the uptime of one charging station in a year for booking in the “Rosseti Electric Transport” mobile application	Deputy General Director for BP Transformation, Digitization and IT	%	100	100⁽¹⁰⁾	100% accomplished	—	100	100

⁽⁶⁾ 2025 value is expected value of FKPIfunctional key performance indicatorss accomplishment, with due regard to the timeline of the reports used for their calculation. Actual values are subject to approval by the Board of Directors.

⁽⁷⁾ If FKPIfunctional key performance indicators achievement percentage equals or exceeds 100%, one should insert the one equal to 100%; if FKPIfunctional key performance indicators achievement percentage is below 90%, one should insert the one equal to 0%.

⁽⁸⁾ Composition and target values of the indicators are adopted by the Board of Directors^[5].

⁽⁹⁾ When calculating the actual value of the indicator “Overdue electricity transmission receivables” factors affecting the impossibility of recovering overdue receivables for objective reasons beyond the control of the Company’s management were taken into account, namely the protracted judicial proceedings in the case concerning the insolvency (bankruptcy) of the counterparty OAOOpen Joint-Stock Company VGOK (the bankruptcy petition was filed on 8 September 2025; the decision to introduce insolvency supervision proceedings in respect of the debtor, and consequently the inclusion of OAOOpen Joint-Stock Company VGOK’s debt in the amount of RUBruble 496.3 million in the creditors’ register dated 3 March 2026), and, taking into account the classification of OAOOpen Joint-Stock Company VGOK’s overdue debt in the amount of RUBruble 496.3 million as moratorium debt, the amount of the functional key performance indicator as of 31 December 2025 will total RUBruble 971.9 million. The extended period of court proceedings is a result of the delay in the consideration of the case by the owners of OAOOpen Joint-Stock Company VGOK.

⁽¹⁰⁾ When calculating the actual value of the indicator “Effectiveness of operation of electric vehicle charging infrastructure” the following factors were taken into account: cases of unavailability of electric vehicle charging stations caused by restrictions imposed on the operation of mobile communication operators to ensure security in connection with the threat of attacks by unmanned aerial vehicles. The said factors do not depend on the activities or management decisions of PAOPublic Joint-Stock Company Rosseti Ural; therefore, the indicator shall be regarded as fulfilled, taking the above‑mentioned factors into account.