ABOUT THE REPORT
STRATEGY OF NEW OPPORTUNITIES
This Integrated Annual Report (hereinafer, the "Annual Report", "Report") is prepared using information that was available to Public Joint-Stock Company Rosseti Volga (hereinafer, "Rosseti Volga, PJSC", "Rosseti Volga", the "Company") at the time of its preparation, and provides an overview of operating results and key events for 2024.
The Annual Report contains information on the Company's goals and priorities, its performance in the reporting year as compared to previous periods, the corporate governance and risk management systems, and its approaches to sustainability management, corporate and social responsibility. The information disclosed in the Annual Report, including financial and economic indicators calculated basing on its accounting (financial) statements prepared under the Russian Accounting Standards (RAS), contains data on the activities of Rosseti Volga. The information in the Annual Report that contains the performance indicators of the consolidated financial statements prepared under the International Financial Reporting Standards (IFRS) includes data on the activities of Rosseti Volga Group of Companies.
ϭ For more details on the standards and recommendations on preparation of non-financial reports used by the Company, see the Report section "Information about the Report".
The Report is intended for a wide range of stakeholders.
Some indicators specified in the tables, graphs, diagrams in this Annual Report may differ from the sum of summands as a result of rounding.
Key topic
Key topic of the Report is "Strategy of New Opportunities". Our goal is to show that Rosseti Volga implements the digital transformation program with absolutely new characteristics of reliability, ePciency, availability, controllability and customer centricity aimed at boosting the quality of services, mitigating the adverse effects on the environment and health, and improving the quality of life of residents in the regions serviced by the Company.
What's new in the Report
The Integrated Annual Report contains information about the Company's contribution to the achievement of the UN Sustainable Development Goals and goals of the National Projects of Russia: "Ecology", "Healthcare" and "Demography".
Disclaimer
This Annual Report contains forward-looking statements that reflect the expectations of Rosseti Volga's management. These forward-looking statements are not based on any actual circumstances and are not guarantees of future performance. The Company shall not assume any liability for any losses that may be incurred by individuals or legal entities acting in reliance on these forward-looking statements. Such forward-looking statements in each specific case constitute only one of the few possible case scenarios and shall not be interpreted as the most probable scenarios.
INTEGRATED ANNUAL REPORT 2024 1
TABLE OF CONTENTS
-
PRESENTATION PART
STRATEGY OF NEW OPPORTUNITIES
-
CORPORATE GOVERNANCE REPORT
STATEMENTS OF CHIEF EXECUTIVES OF THE COMPANY 6
Statement of the Chairman of the Board of directors 6
Statement of the General director 7
ABOUT THE COMPANY 8
Company snapshot 8
Company's geographic reach and structure 10
Business model 12
Key results and events of 2024 14
MEMORANDUM OF THE MAJORITY SHAREHOLDER 176
CORPORATE GOVERNANCE OVERVIEW 178
Corporate governance structure 181
Main changes in the area of corporate governance 182
Assessment of the corporate governance level 186
GENERAL MEETING OF SHAREHOLDERS 191
BOARD OF DIRECTORS 193
COMPANY'S EXECUTIVE BODIES 240
General director of the Company 241
Management Board 242
SYSTEM OF REMUNERATION
FOR MANAGEMENT BODIES OF THE COMPANY 250
PREVENTION OF CONFLICTS OF INTEREST 255
RISK MANAGEMENT, INTERNAL CONTROL
-
CORPORATE GOVERNANCE REPORT
-
STRATEGIC REPORT
Report of the Board of directors 204
AND INTERNAL AUDIT 256
SECTOR OVERVIEW 24
Market overview, Company's market position 24
Macroeconomic trends of the reporting year,
industry (market) forecast 25
Strategic risks and future development 26
KEY PERFORMANCE INDICATORS 29
KEY RISKS 36
Assessment of performance of the Board of directors 210
COMMITTEES UNDER THE BOARD OF DIRECTORS
OF THE COMPANY 212
Audit Committee 216
Committee for Strategy 222
Committee for Reliability 226
Personnel and Awards Committee. 230
INTERNAL AUDIT COMMISSION OF THE COMPANY 259
AUDIT ORGANIZATION 264
MANAGEMENT OF SUBSIDIARIES 267
SHARE CAPITAL AND CIRCULATION OF SECURITIES 268
Structure of share capital 268
Trading in securities - key figures 270
-
PERFORMANCE RESULTS FOR 2024
Committee for Technological Connection to Electric Grids 234
Distribution of profit and dividend policy 272
Communication with shareholders and investors 273
OPERATING RESULTS 44
Production activity results 44
Technological connection 48
Communication with consumers 50
Import substitution and interactions
with equipment manufacturers 72
Digital transformation 73
FINANCIAL RESULTS 74
CORPORATE SECRETARY 237
- ADDITIONAL INFORMATION
Ancillary (non-tariff) services 55
INVESTMENT ACTIVITIES 58
INNOVATIVE ACTIVITIES 66
Innovation-driven development 66
ASSETS MANAGEMENT 78
CREDIT RATINGS AND BONDS 79
TARIFF POLICY 80
Tariffs for electricity transmission services 80
INFORMATION ABOUT REPORT 276
STANDARD COMPLIANCE TABLES 280
CONTACT INFORMATION 292
GLOSSARY AND ABBREVIATIONS 294
Key integrated innovative projects and r&d projects 69
Charges for technological connection 81
APPENDICESAPPENDIX 1. REPORT ON COMPLIANCE WITH PRINCIPLES AND RECOMMENDATIONS
- SUSTAINABLE DEVELOPMENT
OF THE CORPORATE GOVERNANCE CODE OF THE BANK OF RUSSIA 296
APPENDIX 2. REPORT ON INTERESTED PARTY TRANSACTIONS MADE BY ROSSETI VOLGA, PJSC IN 2024 334
SUSTAINABLE DEVELOPMENT MANAGEMENT 84
SUSTAINABLE DEVELOPMENT STRATEGY OF THE COMPANY 91
Company's contribution to implementation of
the national projects of the russian federation 91
Contribution to achieving the UN sustainable development goals 92
ESG ratings 95
HUMAN RESOURCES MANAGEMENT 97
Protection and rational use of water resources 144
Protection and rational use of land 145
Preservation of biodiversity and land care 147
Technical measures 148
Development of regions 148
MANAGEMENT SYSTEMS 151
PROCUREMENT ACTIVITY 152
APPENDIX 3. INFORMATION ABOUT MAJOR TRANSACTIONS MADE BY ROSSETI VOLGA, PJSC IN 2024 336
APPENDIX 4. INFORMATION ON THE INTERESTED PARTY TRANSACTIONS BETWEEN
THE COMPANY AND ITS CONTROLLED LEGAL ENTITIES (INCLUDING ASSOCIATED TRANSACTIONS MADE
BY THE COMPANY AND ITS ONE OR SEVERAL CONTROLLED LEGAL ENTITIES) FOR 2024 336
Results of implementation of the human resources policy 99
StaPng level and structure 100
Personnel training and development 104
Employee remuneration system 108
Youth policy 108
Social policy 110
OCCUPATIONAL HEALTH AND SAFETY 115
Management approach 117
Occupational health and safety management system 117
Occupational injuries and diseases 123
Industrial safety management 127
CLIMATE CHANGE AND ENERGY SAVING 128
Management approach 129
Climate risks and possibilities 130
Power consumption and saving 135
ENVIRONMENTAL PROTECTION 138
Management approach 139
Protection of atmospheric air 142
Regulatory control of procurement activity 152
Procurement activity principles 153
Methods of procurement procedures 154
Structure of purchases 155
Structure of purchases from small and medium businesses 157
Measures aimed at improving procurement activities 157
ANTI-CORRUPTION POLICY
AND SAFETY OF ECONOMIC ACTIVITIES 158
System for implementation of
the Company's anti-corruption policy 158
Key directions of the anti-corruption policy 161
The Company's objectives for 2025
and for the medium-term period 164
INTERACTION WITH STAKEHOLDERS 165
INFORMATION DISCLOSURE 171
FINANCIAL (ACCOUNTING) REPORTING ACCORDING TO RAS FOR THE YEAR ENDED ON DECEMBER 31, 2024
FINANCIAL (ACCOUNTING) REPORTING ACCORDING TO IFRS FOR THE YEAR ENDED ON DECEMBER 31, 2024
2 INTEGRATED ANNUAL REPORT 2024 3
PRESENTATION
PART
18.8
THOUSAND EMPLOYEES
HEADCOUNT
THOUSAND KM
235.9
LENGTH OF POWER
TRANSMISSION LINES
52.4
THOUSAND PCS
NUMBER
OF SUBSTATIONS
37.6
THOUSAND MVA
TRANSFORMER
CAPACITY
1. PRESENTATION PART 2 3
4 5 6
STRATEGY OF NEW OPPORTUNITIES
STATEMENTS OF CHIEF EXECUTIVES OF THE COMPANY
GRI: 2-22
STATEMENT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
STATEMENT OF
THE GENERAL DIRECTOR
Dear shareholders and investors! Dear shareholders, investors, colleagues, customers, and partners!
NRCG 7
DEVELOPED CORPORATE
GOVERNANCE PRACTICE
In 2024, Rosseti Volga, PJSC achieved all operational, financial and economic goals, and laid the groundwork for continued growth and ambitious efforts to enhance reliability of power supplies and develop the integrated power grid of the regions.
The Company implemented the main production programs in full, reached a high level of financial and economic performance, and increased the investment program budget.
In 2024, the Board of Directors of the Company strongly committed to sustainable development performed ePciently using the best corporate governance practices. Russian Institute of Directors confirmed the National Rating of Corporate Governance (NRCG) at the level of 7 "Developed Corporate Governance Practice" awarded to Rosseti Volga, PJSC.
Due to the Company's efforts to meet the present-day social and economic agenda, the Company both satisfied the current power needs of the regions and laid the groundwork for their continued social and economic development.
2024 was marked by conclusion of regulatory agreements with the Saratov, Samara, Penza and Ulyanovsk regions, the Republic of Mordovia and the Chuvash Republic. The regulatory agreements will significantly increase the investments into the development of the integrated power grid of the above regions of the Russian Federation.
The Company bolstered its position as a guarantor of security of energy supply to the regions serviced by the Company, and all branches of the Company were awarded a status of backbone local grid operators. Rosseti Volga, PJSC became a single center of responsibility for reliable power supply to the Saratov, Samara, Penza, Orenburg and Ulyanovsk regions, the Republic of Mordovia and the Chuvash Republic.
The strategy was proved by high performance of Rosseti Volga, PJSC in 2024 that guaranteed the dynamic growth of the Company in the future.
Best regards,
Chairman of the Board of Directors of Rosseti Volga, PJSC A. V. MolskyBILLION RUBLES
3.22
NET PROFIT AS
OF DECEMBER 31, 2024
2024 was marked not only by the sustainable development and consistent progress of Rosseti Volga, PJSC, but also by significant changes. The Company boosted the economic indicators and achieved positive results due to a sound strategy, reasonable management solutions, and concentrated efforts of executives and employees.
The Company's profit at the end of 2024 amounted to 3.22 billion rubles that exceeded the 2023 profit by 903 billion rubles due to the growing proceeds from electricity transmission services.
The Company completed the production programs in full. The Company commissioned the capacity of 154.8 MVA and built or reconstructed 1,126.3 km of power transmission lines under the investment program for 2024.
During the year, the Company performed 16,294 technological connection agreements and provided the capacity of 424 MW to consumers.
The scope of non-tariff services delivered by the Company went up. In 2024, the revenue of Rosseti Volga, PJSC from non-tariff services totaled 1.66 billion rubles that exceeded the 2023 revenue by more than 1 billion rubles, or 154 %. The continuously expanding range of additional services includes 386 types.
The extreme river flood occurred in the Orenburg region became a severe challenge for Rosseti Volga, PJSC in 2024. Due to the effective recovery measures and high professionalism of the personnel, the key power grid facilities of the Orenburg region survived the severe weather conditions and power supply to residents was immediately restored. Rosseti Volga, PJSC proved to be a reliable infrastructure company.
I strongly believe that in 2025, Rosseti Volga, PJSC will develop as an effective, customer-centric and socially responsible company that powers up the development of the regions.
Best regards,
General Director of Rosseti Volga, PJSC A. I. Gavrilov6 INTEGRATED ANNUAL REPORT 2024 7