Q U A R T E R L Y R E P O R T. Public Joint-Stock Company Interregional Distribution Grid Company of Volga (IDGC of Volga, PJSC)

Transcription

1 Q U A R T E R L Y R E P O R T Public Joint-Stock Company Interregional Distribution Grid Company of Volga (IDGC of Volga, PJSC) Issuer s Code: E for Q4, 2018 Address: Saratov, the Russian Federation Information contained in this Quarterly Report is subject to disclosure in compliance with the applicable laws on securities of the Russian Federation General Director Date: February 14, 2019 V. A. Ryabikin signature Chief Accountant Date: February 14, 2019 I. A. Tamlenova signature Stamp here Contact person: Burtseva Yuliya Gennadievna, Deputy Head of the Department Head of the Section for Cooperation with Shareholders and Investors of the Department of Corporate Governance and Cooperation with Shareholders Tel.: +7 (452) Fax: +7 (452) yg.burceva@mrsk-volgi.ru Web-page used for disclosing the information contained in this Quarterly Report: 1

2 Introduction Basis for the Issuer s obligation to disclose information in the form of a quarterly report. As for the Issuer s securities, the Prospectus was registered. Exchange-traded bonds have been admitted for trading with submission of the Prospectus of the Exchange-Traded Bonds required for such admission The Issuer is a public joint-stock company Interregional Distribution Grid Company of Volga, Public Joint-Stock Company (hereinafter IDGC of Volga, PJSC; the Issuer; the Company) discloses information in the form of a quarterly report pursuant to Article 30 of the Federal Law No. 39-FZ On Securities Market dated April 22, 1996 and clause 10.1 of the Regulation on Information Disclosure by Issuers of Issuable Securities approved by Order of the Central Bank of the Russian Federation (Bank of Russia) No P dated December 30, 2014 in connection with registration of the Prospectus of the Issuer s securities with the Federal Service for Financial Markets on March 20, Full firm name of the Issuer: Interregional Distribution Grid Company of Volga, Public Joint-Stock Company, in the Russian language Публичное акционерное общество «Межрегиональная распределительная сетевая компания Волги». Brief name: IDGC of Volga, PJSC, in the Russian language ПАО «МРСК Волги». This Quarterly Report contains estimates and forecasts made by the authorized management bodies of the Issuer for further events and(or) actions, development potential of the industry of the Issuer s core business activities and results of the Issuer s activities, including the Issuer s plans, probability of occurrence of specific events and actions. However, further actual results of the Issuer s activities may differ from the predicted results for many reasons, thus investors shall not fully rely upon the above estimates and forecasts made by the Issuer s management bodies. The acquisition of the Issuer s securities is associated with risks described herein. 2

3 Section I. Information about bank accounts, auditor (audit company), appraiser and financial advisor of the Issuer and other signatories of this Quarterly Report 1.1. Information on the bank accounts of the Issuer No changes occurred in information of this clause in the reporting quarter Information about the auditor (audit organization) of the issuer Information on the auditor (audit company) that performed the independent audit of the accounting (financial) statements of the Issuer and consolidated financial statements of the Issuer making a part of the Quarterly Report, as well as information on the auditor (audit company) approved (selected) for the auditing of the annual accounting (financial) statements and annual consolidated financial statements of the Issuer issued for the current and previous completed financial year. 1. Full firm name: Limited Liability Company Ernst & Young Abbreviated firm name: Ernst & Young, LLC Location: bld. 1, Sadovnicheskaya nab. 77, Moscow, , Russia INN (Taxpayer Id. No.): OGRN (Primary State Registration Number): Tel.: +7 (495) Fax: +7 (495) moscow@ru.ey.com Details of the auditor s participation in self-regulating organizations 1) Full name: Nonprofit Partnership Russian Audit Chamber Location: bld. 3, Trety Syromyatnichesky pereulok 3/9, Moscow, , Russia Additional information: Registered in the Register of Auditors and Auditing Organizations of Self-Regulated Organization Nonprofit Partnership Russian Audit Chamber under Primary Registration Number of Entry (PRNE) From December 2009 to October 2016, Ernst & Young, LLC was a member of the Self- Regulated Organization Nonprofit Partnership Russian Audit Chamber. 2) Full name: Self-Regulatory Organization of Auditors Russian Union of Auditors (Association) (SRO RUA) Location: bld. 2, Petrovsky per. 8, Moscow, , the Russian Federation Additional information: Principal registration number of entry (ORNZ) of SRO RUA in the Register of Auditors and Audit Organizations From October 2016 to the present, Ernst & Young LLC is a member of SRO RUA. Financial year (years) out of previous five completed financial years and current financial year covered (to be covered) by the independent audit of the annual accounting (financial) statements of the Issuer. Accounting (financial) statements, Year Consolidated financial statements, Year This document provides a description of factors that may influence the ability of the auditor (audit company) to act independently from the Issuer; including information about substantial mutual interests of the auditor (officials of the managerial bodies and bodies exercising control over financial and business operations of the audit company) and the Issuer (officials of the managerial bodies and bodies exercising control over financial and business operations of the Issuer): No factors that may influence the ability of the auditor (audit company) to act independently from the Issuer; including information about substantial mutual interests of the auditor (officials of the managerial bodies and bodies exercising control over financial and business operations of the audit company) and the Issuer 3

4 (officials of the managerial bodies and bodies exercising control over financial and business operations of the Issuer) have been reported. The availability of auditor s shares (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization) in the authorized capital of the Issuer: the Auditor (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization) does not have shares in the authorized capital of the Issuer. Provision of Issuer s borrowed funds to the Auditor (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization): Provision of Issuer s borrowed funds to the Auditor (persons holding positions in the management bodies and inspection bodies inspection bodies over the financial and business activities of the audit organization) was not carried out. Availability of close business relationships (participation in the promotion of products (services) of the Issuer, participation in joint business activities, etc.), as well as family ties: There are no close business relationships (participation in the promotion of products (services) of the Issuer, participation in joint business and etc.), as well as family ties. Information on persons holding positions in management bodies and (or) inspection bodies for the Issuer's financial and business activities, who at the same time occupy positions in management bodies and (or) inspection bodies for the financial and business activities of an audit organization: There are no persons holding positions in management bodies and (or) inspection bodies over the Issuer's financial and business activities, which at the same time occupy positions in management bodies and (or) inspection bodies over the financial and business activities of the audit organization. Other factors that may affect the independence of the Auditor from the Issuer: There are no other factors that may affect the independence of the Auditor from the Issuer. Issuer s Auditor selection procedure The availability of bidding procedure for selecting the Auditor and its main conditions: The Central Procurement Committee of Rosseti, PJSC selects an audit company to audit the financial statements of IDGC of Volga, PJSC, prepared in accordance with RAS and IFRS. An open one-stage tender without preliminary qualification selection was held for the right to conclude an agreement to conduct mandatory annual audit of the financial statements for According to the results of the Tender, Ernst & Young LLC was recognized as the winner (Minutes of the meeting of the Tender Committee No. 5/39678 dated April 9, 2014). Rosseti, PJSC on behalf of the Company, conducted an open tender without preliminary qualifying selection via the ETF of Rosseti, PJSC ( for the right to conclude an agreement to conduct mandatory annual audit of the financial statements for According to the results of the Tender, Ernst & Young LLC (the Minutes of the meeting of the Tender Committee Meeting No. 13/595p dated April 16, 2018) was recognized as the winner. The Issuer s Auditor is nominated basing upon the results of bidding procedures. To participate in the bidding procedures, the auditors shall not: - be subject to winding-up procedure; - be bound by any business interruption decision made according to the Administrative Offense Code of the Russian Federation as of the date of the Bid; - have any outstanding tax payments, charges and other contributions to budgets of any level or governmental extra-budgetary funds for the previous calendar year exceeding twenty-five percent of the participant s book value specified in the accounting statements covering the previous completed reporting period; - be subject to the conditions (relating to the Company and SDCs of Rosseti, PJSC) stipulated in clause 1, Article 8, Federal Law No. 307-FZ On Auditing dated December 30, Auditor nomination procedure for further approval at the meeting of shareholders (participants) including the management body involved in decision-making process: The candidacy of the auditor to perform an independent audit of the annual accounting 4

5 statements of the joint-stock Company is introduced by the Board of Directors or by a shareholder (shareholders) owning in aggregate at least 2% of the voting shares of the joint-stock Company. According to sub-clause 11, clause 10.2 of the Articles of Association of the Company, a candidate for the position of the Company s Auditor will be proposed by the Board of Directors basing upon the results of the tender-based auditor selection. Upon consideration of a nominee to the position of the auditor of the Company proposed by the Audit Committee, the Board of Directors of the Company during the meeting held on April 30, 2014 (Minutes No. 25 dated May 05, 2014) decided to recommend the General Meeting of Shareholders to appoint Limited Liability Company Ernst & Young to the position of the auditor of the Company to check its financial and business activities. Limited Liability Company Ernst & Young was appointed to the position of the auditor of the Company in 2014 at the annual General Meeting of Shareholders of the Company held on June 23, 2014 (Minutes No. 8/2014 dated June 23, 2014). Upon consideration of a nominee to the position of the auditor of the Company proposed by the Audit Committee, the Board of Directors of the Company during the meeting held on April 28, 2018 (Minutes No. 27 dated April 28, 2018) decided to recommend the General Meeting of Shareholders to appoint Limited Liability Company Ernst & Young to the position of the auditor of the Company to check its financial and business activities. Limited Liability Company Ernst & Young was appointed to the position of the auditor of the Company at the annual General Meeting of Shareholders of the Company held on June 01, 2018 (Minutes No. 14/2018 dated June 05, 2018). No works of the Auditor have been performed as part of special audit assignments. Procedure for calculating the Auditor s (audit company) fee; actual fee paid by the Issuer to the Auditor (audit company) basing upon the results of the previous completed financial year covered by the independent audit of the Issuer s annual accounting (financial) statements and(or) the Issuer s annual consolidated financial statements: According to sub-clause 14 of clause 15.1 of the Issuer's Charter, determining the remuneration amount for the services of the Company's auditor is within the competence of the Board of Directors. The terms of payment and fee payable to the auditor will be specified in the Auditing Services Agreement regardless of fulfillment of any requirements to auditor's opinion set by auditees. According to the resolution of the Board of Directors of the Company passed on July 24, 2014 (Minutes No. 2 dated July 25, 2014), the fee payable to the external auditor for auditing RAS-based accounting (financial) statements of the Issuer for 2014 and IFRS-based consolidated financial statements will total 6,417, rubles inclusive of VAT. According to the resolution of the Board of Directors of the Company passed on June 29, 2018 (Minutes No. 2 dated July 02, 2018), the fee payable to the external auditor for auditing RAS-based accounting (financial) statements for 2018 and IFRS-based consolidated financial statements will total 8,235, rubles inclusive of VAT. No delayed or outstanding amounts payable for the auditor services have been reported. 1. Full firm name: Limited Liability Company RSM RUS Abbreviated firm name: RSM RUS, LLC Location: 4, Pudovkina street, Moscow, INN (Taxpayer Id. No.): OGRN (Primary State Registration Number): Tel.: (495) Fax: (495) mail@rsmrus.ru Details of the auditor s participation in self-regulating organizations Full name: Nonprofit Partnership AUDIT ASSOCIATION SODRUZHESTVO (NP AAS) Location: bld. 4, prospekt Michurinsky 21, Moscow, Russia Additional information: Registered in the Register of Auditors and Auditing Organizations of Self-Regulated Organization of Auditors Nonprofit Partnership AUDIT ASSOCIATION SODRUZHESTVO (NP AAS) under Primary Registration Number of Entry

6 Financial year (years) out of previous five completed financial years and current financial year covered (to be covered) by the independent audit of the annual accounting (financial) statements of the Issuer Accounting (financial) statements, Year Consolidated financial statements, Year This document provides a description of factors that may influence the ability of the auditor (audit company) to act independently from the Issuer; including information about substantial mutual interests of the auditor (officials of the managerial bodies and bodies exercising control over financial and business operations of the audit company) and the Issuer (officials of the managerial bodies and bodies exercising control over financial and business operations of the Issuer): No factors that may influence the ability of the auditor (audit company) to act independently from the Issuer; including information about substantial mutual interests of the auditor (officials of the managerial bodies and bodies exercising control over financial and business operations of the audit company) and the Issuer (officials of the managerial bodies and bodies exercising control over financial and business operations of the Issuer) have been reported. The availability of auditor s shares (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization) in the authorized capital of the Issuer: the Auditor (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization) does not have shares in the authorized capital of the Issuer. Provision of Issuer s borrowed funds to the Auditor (persons holding positions in the management bodies and inspection bodies over the financial and business activities of the audit organization): Provision of Issuer s borrowed funds to the Auditor (persons holding positions in the management bodies and inspection bodies inspection bodies over the financial and business activities of the audit organization) was not carried out. Availability of close business relationships (participation in the promotion of products (services) of the Issuer, participation in joint business activities, etc.), as well as family ties: There are no close business relationships (participation in the promotion of products (services) of the Issuer, participation in joint business and etc.), as well as family ties. Information on persons holding positions in management bodies and (or) inspection bodies for the Issuer's financial and business activities, who at the same time occupy positions in management bodies and (or) inspection bodies for the financial and business activities of an audit organization: There are no persons holding positions in management bodies and (or) inspection bodies over the Issuer's financial and business activities, which at the same time occupy positions in management bodies and (or) inspection bodies over the financial and business activities of the audit organization. Other factors that may affect the independence of the Auditor from the Issuer: There are no other factors that may affect the independence of the Auditor from the Issuer. Issuer s Auditor selection procedure The availability of bidding procedure for selecting the Auditor and its main conditions: The Central Procurement Committee of Rosseti, PJSC selects an audit company to audit the financial statements of IDGC of Volga, PJSC, prepared in accordance with RAS and IFRS. An open one-stage tender without preliminary qualification selection was held for the right to conclude an agreement to conduct mandatory annual audit of the financial statements for According to the results of the Tender, Ernst & Young LLC was recognized as the winner (Minutes of the meeting of the Tender Committee No. 5/39678 dated April 9, 2014). Rosseti, PJSC on behalf of the Company, conducted an open tender without preliminary qualifying selection via the ETF of Rosseti, PJSC ( for the right to conclude an 6

7 agreement to conduct mandatory annual audit of the financial statements for According to the results of the Tender, Ernst & Young LLC (the Minutes of the meeting of the Tender Committee Meeting No. 13/595p dated April 16, 2018) was recognized as the winner. The Issuer s Auditor is nominated basing upon the results of bidding procedures. To participate in the bidding procedures, the auditors shall not: - be subject to winding-up procedure; - be bound by any business interruption decision made according to the Administrative Offense Code of the Russian Federation as of the date of the Bid; - have any outstanding tax payments, charges and other contributions to budgets of any level or governmental extra-budgetary funds for the previous calendar year exceeding twenty-five percent of the participant s book value specified in the accounting statements covering the previous completed reporting period; - be subject to the conditions (relating to the Company and SDCs of Rosseti, PJSC) stipulated in clause 1, Article 8, Federal Law No. 307-FZ On Auditing dated December 30, Auditor nomination procedure for further approval at the meeting of shareholders (participants) including the management body involved in decision-making process: The candidacy of the auditor to perform an independent audit of the annual accounting statements of the joint-stock Company is introduced by the Board of Directors or by a shareholder (shareholders) owning in aggregate at least 2% of the voting shares of the joint-stock Company. According to sub-clause 11, clause 10.2 of the Articles of Association of the Company, a candidate for the position of the Company s Auditor will be proposed by the Board of Directors basing upon the results of the tender-based auditor selection. Annual General Meetings of Shareholders of the Company on June 16, 2015, June 9, 2016 and June 15, 2017, passed resolutions to approve the RSM RUS Limited Liability Company as the auditor of IDGC of Volga, PJSC. No works of the Auditor have been performed as part of special audit assignments. Procedure for calculating the Auditor s (audit company) fee; actual fee paid by the Issuer to the Auditor (audit company) basing upon the results of the previous completed financial year covered by the independent audit of the Issuer s annual accounting (financial) statements and(or) the Issuer s annual consolidated financial statements: According to sub-clause 14 of clause 15.1 of the Issuer's Charter, determining the remuneration amount for the services of the Company's auditor is within the competence of the Board of Directors. The terms of payment and fee payable to the auditor will be specified in the Auditing Services Agreement regardless of fulfillment of any requirements to auditor's opinion set by auditees. According to the resolution of the Board of Directors of the Company passed on September 18, 2015 (Minutes No. 5 dated September 21, 2015), the fee payable to the external auditor for auditing RAS-based accounting (financial) statements for 2015 and IFRS-based consolidated financial statements will total 3,095, rubles inclusive of VAT (18%)- 472, rubles. The remuneration payable to the Company s Auditor, RSM RUS, LLC, for audit of accounting (financial) statements for 2016 prepared under RAS and audit of consolidated financial statements for the year ending on December 31, 2016 prepared under IFRS was defined by the Board of Directors of the Company on August 22, 2016 (Minutes No. 9 dated August 23, 2016), and will total 3,095, rubles inclusive of VAT (18%). The remuneration payable to the Company s Auditor, RSM RUS, LLC, for audit of accounting (financial) statements for 2017 prepared under RAS and audit of consolidated financial statements for the year ending on December 31, 2017 prepared under IFRS was defined by the Board of Directors of the Company on July 19, 2017 (Minutes No. 3 dated July 21, 2017), and will total 3,095, rubles inclusive of VAT. No delayed or outstanding amounts payable for the auditor services have been reported. Data on the amount of remuneration paid by the issuer to the auditor: 7

8 Audit of statements issued under Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS) Financial year Name of the Auditor 2014 Ernst & Young, LLC 2015 RSM RUS, LLC 2016 RSM RUS, LLC 2017 RSM RUS, LLC 2018 Ernst & Young, LLC Amount of remuneration, rubles (inclusive of VAT) 6,417, rubles, inclusive of VAT amounting to 978, rubles 3,095, rubles, inclusive of VAT amounting to 472, rubles 3,095, rubles, inclusive of VAT amounting to 472, rubles 3,095, rubles, inclusive of VAT amounting to 472, rubles 3,129, rubles, inclusive of VAT amounting to 477, rubles 1.3. Issuer s Appraiser(s) No changes occurred in information of this clause in the reporting quarter Issuer s Advisors Financial advisers on the grounds listed in clause 1.4. Appendix 3 to the Regulation of the Bank of Russia of December 30, 2014 No. 454-n On disclosing information by issuers of issuable securities, were not involved for 12 months prior to the end date of the reporting quarter Signatories of the Quarterly Report Full name: Vladimir Anatolievich Ryabikin Born in: 1965 Primary employment: Company: Interregional Distribution Grid Company of Volga, Public Joint-Stock Company Position: General Director Full name: Irina Alekseevna Tamlenova Born in: 1965 Primary employment: Company: Interregional Distribution Grid Company of Volga, Public Joint-Stock Company Position: Chief Accountant, Head of the Department of Fiscal and Tax Accounting and Reporting Section II. Overview of the Issuer s financial and business status 2.1. Indicators of the Issuer s financial and business activity Not specified in the report for the 4th quarter Issuer s Market Capitalization The market capitalization is a product of quantity of shares of the relevant category (type) by single share market price disclosed by an organizer of trade Unit of measurement: thousand rubles Parameter As of December 31, 2017 As of September 30, 2018 Market capitalization , ,76 8

9 Organizer of trade on the securities market delivering information for calculating market capitalization and other additional information on public trading of securities at the Issuer s discretion: The market capitalization of shares of IDGC of Volga, PJSC was calculated basing upon the data of the securities market trade organizer - Public Joint-Stock Company Moscow Exchange MICEX-RTS (Moscow Exchange, PJSC). Location of the tender organizer on the securities market: 13, Bolshoy Kislovsky pereulok, Moscow Tel.: +7(495) Fax: +7 (495) Obligations of the Issuer Borrowed funds and accounts payable Not specified in the report for the 4th quarter Issuer s Credit Record This Section contains information on fulfillment of the Issuer s obligations under credit and(or) loan contracts remaining in effect during the previous completed reporting year and current financial year (including those which were signed by issuing and placing bonds) with the principal amounting to 5 or more percent of the Issuer s book value as of the expiration date of the previous completed reporting period (3, 6, 9 or 12 months) preceding the date of signing of the specific contract, as well as under other material credit and(or) loan contracts at the Issuer s discretion. Obligation type and characteristics 1. Opening of credit line, Credit Contract No L Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of 1,000,000,000 RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 8,20 Percent (coupon) periods 61 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Joint-Stock Company Gazprombank, bld. 1, Nametkina street 16, Moscow, , the Russian Federation existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of 9

10 percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 2. Opening of credit line, Credit Contract No L Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of 1,000,000,000 RUR X 1 obligation, RUR Principal amount as of the expiration 1,000,000,000 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per 7,60 annum Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed percent No and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Joint-Stock Company Gazprombank, bld. 1, Nametkina street 16, Moscow, , the Russian Federation The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 3. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/350 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of obligation, RUR Principal amount as of the expiration date of the reporting quarter, RUR Credit (loan) period, (year) Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation RUR X 1 0 RUR X 1 5 years 10

11 Average credit (loan) interest, % per 7,8 annum Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) existing maturity Other data on the obligation at the The line Principal amount as of the date of obligation, RUR Issuer's discretion contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 4. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/358 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 3 years Average credit (loan) interest, % per 7,8 annum Percent (coupon) periods 36 Delayed credit (loan) percent (if any), total amount of delayed percent No and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; 11

12 The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 5. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/441 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,80 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 6. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/442 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation 12

13 obligation, RUR Principal amount as of the expiration RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,80 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 7. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/443 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,80 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; 13

14 The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 8. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/444 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of obligation, RUR Principal amount as of the expiration date of the reporting quarter, RUR Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation RUR X 1 0 RUR X 1 Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,80 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 9. Opening of the revolving framework facility with differentiated interest rates, Master Agreement No. 5400/550 14

15 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of obligation, RUR Principal amount as of the expiration date of the reporting quarter, RUR Credit (loan) period, (year) Average credit (loan) interest, % per annum Public Joint-Stock Company Sberbank of Russia 19, Vavilova street, Moscow, , the Russian Federation RUR X 1 0 RUR X 1 5 years 8,07 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion existing Obligation type and characteristics 10. Opening of revolving credit line, Contract No. 305-KL-18 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,79 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Russian Regional Development Bank, Joint Stock Company, , Russian Federation, Moscow, Suschevsky Val street, 65, bldg

16 Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 11. Opening of revolving credit line, Contract No. 306-KL-18 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,79 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Russian Regional Development Bank, Joint Stock Company, , Russian Federation, Moscow, Suschevsky Val street, 65, bldg existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. 16

17 Obligation type and characteristics 12. Opening of revolving credit line, Contract No. 307-KL-18 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of RUR X 1 obligation, RUR Principal amount as of the expiration 0 RUR X 1 date of the reporting quarter, RUR Credit (loan) period, (year) 5 years Average credit (loan) interest, % per annum 7,79 Percent (coupon) periods 60 Delayed credit (loan) percent (if any), total amount of delayed No percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion Russian Regional Development Bank, Joint Stock Company, , Russian Federation, Moscow, Suschevsky Val street, 65, bldg existing The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Obligation type and characteristics 13. Provision of loans within the framework of the revolving aggregate credit limit, Contract No. KS-24710/0001/N-18 Obligation conditions and status Creditor s (Lender s) name, address or full name Principal amount as of the date of obligation, RUR Principal amount as of the expiration date of the reporting quarter, RUR Credit (loan) period, (year) Average credit (loan) interest, % per 8,10 annum Percent (coupon) periods 60 Delayed credit (loan) percent (if No VTB Bank (Public Joint-Stock Company), , Russian Federation, St. Petersburg, Bolshaya Morskaya street, RUR X 1 0 RUR X 1 5 years 17

18 any), total amount of delayed percent and delay period (days) Scheduled term (date) of credit (loan) maturity Actual term (date) of credit (loan) maturity Other data on the obligation at the Issuer's discretion existing Issuer s liabilities arising out of the Issuer s security As of Unit of measurement: thousand rubles The line Principal amount as of the date of obligation, RUR contains the debt limit under the existing contract; The line Principal debt amount as of the expiration date of the reporting quarter, RUR contains the actual debt amount as of ; The line Average credit (loan) interest, % per annum contains the actual interest rate as of ; The line Percent (coupon) periods contains the number of percent payments occurred throughout the duration of the contract; The line Actual term (date) of credit (loan) maturity contains the actual date of maturity of debt repayment obligation under the contract. Parameter As of The total amount of security coverage provided by the Issuer (amount of outstanding liabilities covered by securities provided by the Issuer, in cases when, as provided by the terms and conditions of such securities, the relevant obligations are fully secured by such securities) including third party liabilities 0 The amount of security coverage provided by the Issuer (amount of outstanding liabilities covered by securities provided by the Issuer, in cases when, as provided by the terms and conditions of such securities, the relevant obligations are fully secured by such securities) in the form of a pledge including third party liabilities 0 The amount of security coverage provided by the Issuer (amount of outstanding liabilities covered by securities provided by the Issuer, in cases when, as provided by the terms and conditions of such securities, the relevant obligations are fully secured by such securities) in the form of suretyship including third party liabilities 0 Issuer s liabilities arising out of security (including pledge or guarantee) provided to third parties in the amount of 5 or more percent of the Issuer s book value as of the expiration date of the relevant reporting period: No liabilities arose during the above reporting period Other liabilities of the Issuer Other liabilities uncovered by the accounting (financial) statements which may have a significant effect on the Issuer s financial status, liquidity, funding sources and conditions of availability of these funding sources, results of the Issuer s activities and expenses are not available Risks of acquisition of placed securities Issuer s risk management policy:

19 Acquisition of issuable securities by the Issuer is associated with a range of risks resulting in losses for the Company (income or investment losses and losses exceeding investments). This Section contains information on risk factors associated with acquisition of issuable securities by the Issuer. The list of factors is not exhaustive and is based upon the Issuer s opinion and estimates. The Issuer considers the risk management as one of critical elements of strategic management and internal control. The Issuer s risk management policy includes both potential unfavorable events (threats) and favorable events (opportunities). The Issuer detects, evaluates and controls threats and opportunities on a regular basis and adapts its activities to minimize probability and potential consequences of these threats and to benefit from the opportunities, as well as submit this information to shareholders and other interested persons. The Issuer s risk management policy is oriented toward reducing probability and materiality of risks and, finally, toward reaching strategic goals. To this end, the Issuer introduces acceptable risk levels for each category of material risks. The Issuer s risk management policy takes into account the relations between risks of different categories. To assess their total effect on its activities, the Issuer applies a uniform approach for evaluating financial, operational and other risks. The Issuer s risk management policy makes allowance both for shareholders interests and potential consequences of its activities for other related parties. Key objectives of the Issuer s risk management policy are as follows: - meeting requirements of the proper corporate management practice which forces the Issuer to focus on risk assessment, monitoring and management and risk information disclosure; - preventing threats to the Company s strategic goals and taking necessary protection measures; - coordinating and integrating risk management processes related to different aspects of the Company s financial and business activities to increase overall efficiency of the Company s management; - benefiting from new opportunities to increase assets value and the Issuer s profitability over the long-term horizon. The Issuer will take all necessary measures to mitigate the effect of any unfavorable changes (if any). The Issuer s risk management system is interconnected with the processes of strategic and operational planning and budgeting and enables the Issuer s management bodies to take most effective and economically feasible decisions. The Risk Management Policy of the Company adopted by the decision of the Company s Board of Directors (Minutes No. 21 dated March 17, 2016) is an organizational and legal base for operating the Issuer s risk management system. This document defines basic principles of organization, implementation and control of risk management processes at IDGC of Volga, PJSC. The Policy outlines primary actions for building a risk management system. Sub-clauses below contain the analysis of the most material risks which may have effect on the Issuer s activity. In case of any risk(s) the Issuer will take all reasonable measures to mitigate negative consequences of risk effects. To eliminate some risks, the Issuer took a range of protection measures and developed risk-specific response plans. However, it should be noted that the Issuer admits the existence of other unknown or minor risks. Uncertainty of the situation unfolded impedes the preliminary development of adequate riskspecific measures, thus future actions will depend on each specific scenario. However, the Issuer will not guarantee that the measures taken to eliminate unfavorable changes will remedy the situation as the above factors may be beyond its control Industry risks No changes occurred in information of this clause in the reporting quarter 19