April 20, 2016 a meeting of the Board of Directors of IDGC of Centre, PJSC (hereinafter – the Company) was held, which approved the Regulations on Dividend Policy of the Company as amended (hereinafter – the Dividend Policy). The document has been aligned with the current legislation of the Russian Federation and the Articles of Association of the Company, in addition, the document included provisions of the Federal Property Management Agency guidelines.

According to the new Dividend Policy the Company considers as one of its priorities to ensure the payment of dividends of at least 25% of net profit. However, the final decision on the amount of dividends is adopted by the General Meeting of Shareholders of IDGC of Centre. The previous edition of the Dividend Policy did not provide for target share of dividend payout from net profit, but only disclosed the procedure for its determination.

In accordance with the document adopted, the decision with regard to record date of persons entitled to receive dividends shall be made only at the proposal of the Board of Directors of IDGC of Centre. In case of attracting an agent to pay dividends, the Company shall inform shareholders about assistance of an agent in the payment of dividends, including his replacement and the end of his term by publishing the relevant information on the Company’s website.

According to the current legislation of the Russian Federation, the Company is not liable for any losses due to non-payment of dividends to those shareholders who do not timely submit to the registrar of the Company their bank / postal details or information about their change. The Dividend Policy takes effect from the date of its approval by the Board of Directors of the Company. Issues not regulated by the Dividend Policy of the Company are governed by the applicable laws of the Russian Federation and internal documents of the Company.

“The approved Dividend Policy of IDGC of Centre contributes to the further development of a transparent and clear mechanism for the Company’s shareholders regarding taking decision to pay dividends, to determine their size, procedure and terms of payment. Thus, the Company is committed to high standards of corporate governance, which play a crucial role in ensuring sustainable development and improving investment attractiveness of IDGC of Centre in the long term, as well as in maintaining confidence of shareholders and investors,” stressed Deputy General Director for Corporate Governance of IDGC of Centre Sergey Sharapov.

The Dividend Policy as amended can be read on the website at: https://www.mrsk-1.ru/investors/dividend/dividend_policy/