Alexander Novak

Chairman of the Board of Directors ROSSETI

Dear Shareholders:

Maintaining a tradition of looking back on the past year of operation, I am pleased to present to you the Annual Report of Public Joint Stock Company ROSSETI for 2016.

For the Company, 2016 was a year of sustained, steady development. Our progressive onward movement in the direction specified in the Strategy for Development of the Electric Grid Sector of the Russian Federation allowed the Company to remain one of Russia’s largest electric utilities securing a high-quality, affordable, and reliable electricity supply in the regions of its operations.

Pursuing the goals of the Strategy, management worked to enhance the Company’s operating efficiency, appeal for investors, and financial stability. Our work resulted in a substantial improvement in financial and economic performance compared with the previous period, enabling the ROSSETI Group to achieve record-high net profit and EBITDA.

ROSSETI is optimistic about its future!

Oleg Budargin

Director General ROSSETI

Mr. Budargin, how do you assess the year 2016, and what was 2016 like for the ROSSETI Group?

2016 was a year when ROSSETI achieved record-high results, both operational and financial. All members of the Group’s team showed their high professionalism once again, while customers, partners, regulators, and all stakeholders as well were able to see that we had pursued the right strategy and remained committed to reaching our long-term key goals: reliability, accessibility, efficiency, and innovation of the electric grid sector.
It has been only four years since Russian President Vladimir Putin decided to bring government-linked grid companies under common management, but our achievements exceeded all expectations. Our performance in 2016 is convincing evidence that this decision was farsighted and correct from both technical and economic perspectives.

ROSSETI is optimistic about its future!
ROSSETI, the management company of Russia’s largest and the world’s third largest electric grid sector, is a global leader in electricity transmission and distribution. The vast majority of the Group’s subsidiaries are government-regulated natural monopolies.

The ROSSETI Group ensures:

  • reliable and high-quality power supply for customers by means of electricity transportation via 2.3 million kilometers of power lines (for more detailed information, see Section 4.1.1 “Electricity Transmission and Distribution” of the Annual Report)
  • affordable network connection for customers (for more detailed information, see Section 4.1.2 “Network Connection” of the Annual Report)
  • Russia’s economic growth by implementing nationwide capital investment projects (for more detailed information, see Section 4.4 “Results of Investing Activities” of the Annual Report)

Competitive advantages of the ROSSETI Group

  • Scale: one of the world’s largest electric utilities in terms of the number of customers and the length of power lines
  • Unique strategic and geopolitical position
  • Regional diversification: ROSSETI operates in almost all of Russia’s regions
  • Strategic importance to the government
  • Convenient investment instrument: ROSSETI’s securities listed on the Moscow Stock Exchange are available to Russian and foreign investors

ROSSETI — a bridge
between the West and the East

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ROSSETI — Awards

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