On June 27, 2019, the Annual General Meeting of Shareholders of the Rosseti took place in Moscow. Alexander Novak, Minister of Energy of the Russian Federation, Chairman of the Rosseti’s Board of Directors chaired the meeting.

Welcoming those present, Alexander Novak positively assessed the results of the holding’s work in 2018.

“The company operates efficiently, develops and is investment-attractive. Over the past six months, the capitalization of Rosseti has grown by 90%. What is important is that the holding pays a lot of attention to the introduction of up-to-date technologies. Besides, changes in the regulatory and legal framework of the electric grid complex, which are being developed by the Russian government together with the Rosseti, will contribute to the growth of indicators,” the Russian Energy Minister stressed.

The meeting reviewed the reported results of the activities of Rosseti in 2018.

Pavel Livinskiy, General Director of Rosseti Holding, spoke about the key achievements of the company over the past year. He noted that the operating indicators of the Rosseti Group have once again demonstrated steady growth.

“Due to the growth of performance indicators, the Rosseti Group of companies was able to showcase a positive financial and economic result in 2018. Financial indicators grew steadily and in parallel the level of debt burden was reduced. The growth of dividend payments to shareholders is an important task for the management of the Company. Our financial indicators allow us to do this,” said Pavel Livinskiy.

In 2018, 762 bln kWh of electricity were transferred, 19 GW of power capacity was connected. According to the results of 2018 for the first time in history, the level of losses in the transmission of electricity dropped below 9% to 8.95%. The Group's consolidated revenues, also for the first time in history, exceeded 1 trillion rubles, amounting to 1,021.6 billion rubles (948.3 in 2017). The net profit increased by more than 3.5 billion in comparison with 2017 and amounted to 124.7 billion rubles. The increase in free cash flow amounted to more than 18 billion rubles, which made it possible to reduce the Group's debt burden. Compared to 2017, Net Debt/EBITDA amounted to 1.42x (1.55x in 2017).

During the meeting, the shareholders of Rosseti were presented the annual report and annual accounting (financial) statements for 2018 for approval, as well as proposals for the distribution of the Company's profits and losses for 2018.

Company's shareholders approved proposals for the payment of more than 5 billion rubles of dividends for the first quarter of 2019. This is twice as high as the amount allocated for payment in 2018 and is comparable to the amount of dividends paid to shareholders in the entire history of the Rosseti Company.

In conclusion, the shareholders elected a new Board of Directors, the Audit Commission and the Company's auditor.

A new edition of the Charter and a number of internal documents regulating the activities of the management and control bodies have also been reviewed.