A meeting of the Board of Directors of Rosseti Centre, PJSC was held, which approved the Company’s Business Plan for 2024 and took note of the forecast indicators for 2025-2028. The Business Plan for 2024 and the forecast indicators for 2025-2028 were formed in accordance with the Forecast of socio-economic development of the Russian Federation. The document contains the main parameters of the Company’s activities for the next 5 years, including in terms of the planned volume of electricity transmission services, the level of electricity losses, the Company’s revenue in the main areas of activity and expenses of the Companies, as well as the expected financial result for the entire planning period.

Indicators of the Company’s Business Plan for 2024:

Data in mln RUB, unless specified otherwise

^[1] EBITDA is calculated as follows: profit before tax + interest payable + depreciation charges

^[2] Net debt is calculated as follows: long-term debt + short-term debt – cash and cash equivalents – short-term financial investments

The volume of electricity transmission services, according to the Business Plan for 2024, will increase relative to the expected fact in 2023 by 0,1% and will amount to 46 940 million kW. An increase in the volume of services is predicted due to growth in the supply of electricity to the population and enterprises of agriculture and the food industry. The level of electricity losses in 2024 will decrease by 0,01 01 percentage points compared to the expected level in 2023 and is 10,46%. For 2024 and subsequent periods, measures are planned to reduce losses, including the implementation of targeted organizational and technical measures, as well as the installation of commercial and technical electricity metering as part of the investment program and non-tariff sources.

The 5,2% increase in revenue from electricity transmission services planned in the Business Plan for 2024 relative to the expected fact in 2023 is due to the changes of electricity tariffs. Revenue from grid connection services in 2024 is expected to amount to 4 563 million RUB, which is 0,3% higher than the forecast level for 2023. The increase in revenue was due to the completion of large grid connection contracts in the Belgorod and Voronezh regions. During 2024-2028, the Company does not plan to carry out activities related to the sale of electricity (activities ceased as of 1 September 2023 based on the order of the Ministry of Energy). The decrease in other revenue in 2024 relative to the expected results in 2023 is mainly due to a reduction in the volume of grid reconstruction services. In 2024, the Company plans to further develop and increase sales of the service “Performance of work within the competence of the applicant during the implementation of grid connection”, to continue active work on the implementation of projects for the construction of outdoor lighting networks, the installation of architectural and artistic lighting, the design and construction/reconstruction of applicants’ electric grid facilities.

The increase in the cost of sales in 2024 relative to the expected result in 2023 is mainly due to inflationary factors, increased costs for compensation for electricity losses and payment for services of grid organizations.

Earnings before interest, taxes, depreciation and amortization (EBITDA) is projected above the expected fact in 2023 by 2,2% and will amount to 25 028 million RUB. Net profit for 2024 is projected in the amount of 4 867 million RUB. In general, the Business Plan provides a positive financial result of activities for the entire planning period, which indicates the stable financial condition of the Company.

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