1.1 Statement by the Chairman of the PAO Rosseti Ural’s Board of Directors
D.V. Krainsky
The Chairman of the Board of Directors Of PAOPublic Joint-Stock Company Rosseti Ural
Dear shareholders,
Assessing the results of 2024, it is worth noting that PAOPublic Joint-Stock Company Rosseti Ural delivered strong performance across all areas of its operations. The Company achieved all its target indicators, fulfilled its production programs, and significantly improved its financial results. PAOPublic Joint-Stock Company Rosseti Ural’s total investment program exceeded RUBruble 19.4 billion. Around RUBruble 7.3 billion were allocated for repairs and maintenance. The Company’s specialists prioritized the upgrade and development of network infrastructure in rapidly growing areas. We continued to fulfill connection-related obligations. The Company achieved a 2.24% increase in net supply compared to the previous year and met all key targets for reducing energy losses.
A high concentration of industry, robust business activity, and the dynamic development of the regions where the Company operates demand that management make prompt, well-considered decisions and set clear objectives, taking into account both internal and external factors, while strictly upholding the interests of shareholders and other stakeholders. The coordinated efforts of the Company’s team and leadership have enabled it to successfully achieve its strategic goals.
The work of the Сompany’s management and members of its collegiate governing body enables the development of a sustainable growth strategy, the establishment of an effective system for achieving set objectives, and an increase in the Сompany’s investment appeal. Constructive engagement with regional authorities, municipal administrations, and business community representatives ensures the Company remains fully informed of current developments. This approach allows for comprehensive synchronization of plans for grid infrastructure development, prompt responses to economic trends and challenges, sound management decisions, and timely adaptation to change-driving economic growth in the regions where the Company operates.
In 2024, the Company demonstrated strong momentum in the development of additional services, generating over RUBruble 2.3 billion in revenue from this line of business. Despite a significant CAGR in both revenue and net profit over the past five years, the Company has set even more ambitious targets. This additional source of non-tariff income enables the company to finance several key initiatives, including efforts to enhance the production culture among its workforce.
The past year was marked by a significant event that presents new challenges for the Company. It has been granted the status of a systemically important regional grid operator in the Middle and Southern Urals, as well as in the Perm region. In each of these areas, the Company reliably fulfills its role as the sole center responsible for ensuring uninterrupted electricity supply to consumers. It also manages the operation of ownerless infrastructure, facilities of firms that have lost their grid operator status, and municipal grid assets.
Addressing issues related to retaining the company’s workforce remains the top priority for 2025. Today, it is crucial to focus on creating the safest, most comfortable, and stable working conditions possible. Ensuring reliable and uninterrupted electricity supply for the population, as well as for social and industrial facilities in the country’s industrial heartland, the Urals, also remains an unquestionable priority.
Overall, 2025 presents the company with new opportunities. I am confident that, thanks to our unique potential and our ability to steadfastly pursue our chosen course, we will achieve all our objectives. The accomplishments of previous years, our accumulated experience, and the high professionalism of both management and every employee form a solid foundation for reaching new heights in the Сompany’s development.
The Board of Directors and the Company’s management affirm their commitment to maintaining the company’s economic stability while simultaneously implementing ambitious production and strategic plans, aimed at boosting operational efficiency and fostering economic development in the Urals and the Kama region.
Best regards,
The Chairman of the Board of Directors,
D.V. Krainsky