1.2 Statement by the Chairman of the PAO Rosseti Ural’s Executive Board

D.A. Vodennikov

General Director, Chairman of the Executive Board Of PAOPublic Joint-Stock Company Rosseti Ural

 

Dear shareholders, partners and colleagues,

In 2025, PAOPublic Joint-Stock Company Rosseti Ural delivered solid performance across all areas of its business, meeting its target indicators in full. This result was made possible by a highly professional workforce of several thousand employees, with each person contributing daily to the Company’s shared goals.

The Company retains one of the sector’s leading positions and continues to deliver on its core strategic priorities: ensuring reliable, high-quality power supply across the Urals and Kama regions, and carrying out the comprehensive development and modernization of grid infrastructure. PAOPublic Joint-Stock Company Rosseti Ural is rolling out advanced electricity metering systems on a large scale, accelerating grid connection, improving customer service, and expanding its portfolio of non-regulated services. Sound management, effective planning, and unwavering delivery of set objectives enable the Company to grow steadily and improve its performance.

In 2025, the Company’s specialists modernized key power supply centers in its three regions of operation and fulfilled more than 25,000 grid connection agreements totaling 832 MWmegawatt. In support of industry and business development, PAOPublic Joint-Stock Company Rosseti Ural also completed its connection obligations under 29 agreements with small and medium-sized enterprises, including new facilities in the agro-industrial complex and other industries across the Urals and Kama regions. The average grid connection time for SME facilities reached 45 days in 2025. The number of completed grid connection agreements above 670 kW increased by an average of 26%, helping to support national projects aimed at developing the economy and the social sphere in the Urals and Kama regions.

Funding for PAOPublic Joint-Stock Company Rosseti Ural’s investment program in 2025 amounted to about RUBruble 18 billion. In 2026, the Company plans to raise investment financing to RUBruble 23.9 billion. More than RUBruble 8.1 billion were allocated to the repair and maintenance program. These funds were used to strengthen the overall reliability of the Urals and Kama grid infrastructure, upgrade substations and power lines, and modernize automated operational and technological control systems. In 2026, more than RUBruble 7.2 billion are planned for these purposes. Energy specialists at PAOPublic Joint-Stock Company Rosseti Ural installed more than 150,000 smart electricity metering points. The Company met its electricity loss reduction targets.

In 2025, PAOPublic Joint-Stock Company Rosseti Ural continued to work on reducing accounts receivable. Mechel-Energo repaid RUBruble 1.1 billion in debt for electricity transmission services. For other customers, the Company acts strictly within the legal framework, using measures ranging from negotiations and power supply restrictions to litigation and referrals to law enforcement authorities.

Strong results were also achieved by PAOPublic Joint-Stock Company Rosseti Ural in its capacity as the SIRGO, consolidating grid assets, including municipal power assets and energy facilities owned by constituent entities of the Russian Federation. In 2025, the Company took over the power grid complex of Kamensk-Uralsky in the Sverdlovsk region, with 769 km of power lines and 273 transformer substations with a total capacity of 166 MVA. Overall, the Company concluded more than 140 gratuitous use agreements in this area. Another major development in 2025 was the acquisition of the grid complex in Yekaterinburg’s Akademichesky district. More broadly, PAOPublic Joint-Stock Company Rosseti Ural’s role as a SIRGO means greater responsibility for the performance of the entire grid complex and higher reliability of electricity supply for residents of the regions. The company’s energy specialists have repeatedly demonstrated the seriousness of their commitment to the obligations they have assumed.

A key task for the Company’s specialists remains ensuring reliable, high-quality electricity supply for residents of million-plus cities and rapidly developing suburban areas. In 2025, a broad range of technical measures was implemented, with substantial funding directed to modernizing grid infrastructure and upgrading equipment. This work will continue. All planned target programs will be completed in full.

For PAOPublic Joint-Stock Company Rosseti Ural, both in 2025 and 2026, the development of additional services remains in focus. Key priorities include construction and installation works, development of street lighting networks, maintenance and repair of grid facilities, and preparation of technical specifications and external power supply schemes for consumers’ power-using equipment. A new initiative in this segment is the company’s proposal to provide infrastructure for data centers near substations with available reserve capacity. This will make it possible to bring new data center capacity online quickly and with minimal capital expenditure, while ensuring high-quality and reliable power supply to digital facilities.
PAOPublic Joint-Stock Company Rosseti Ural’s absolute priority is preserving its human capital. The Company will continue to improve working conditions, develop professional competencies, support employees socially, build a managerial reserve, and attract young talent through cooperation with specialized universities and vocational colleges. Special attention will be paid to engaging students by strengthening partnerships with educational institutions and developing early career guidance programs designed to help young people make a conscious choice of a career path in the power sector.

The company faces a large-scale agenda ahead, but it is precisely the team’s cohesion, experience, and high professionalism that will underpin the achievement of all of its ambitious goals.

Kind regards,

General Director,

D.A. Vodennikov