Statement by Acting General Director

Alexey Rybin
Acting Director General, Rosseti Kuban JSC

Respected shareholders, partners and colleagues,

In addition to the production performance achieved, stability and sustainable development were significant outcomes for the Company in 2024. The Company kept improving its business processes in order to fulfil its obligations towards consumers and deliver financial results. This allowed us to turn a profit at the end of the reporting period.
As a regional grid organisation with systemic importance, Rosseti Kuban will continue its efforts for the consolidation of power grid assets within its catchment area.

Investments in development

The Company completed the maintenance, repairs, and investment programme for the power grid infrastructure. Over 1,700 km of power transmission lines and 520 MVA of transformer capacity were put into service as part of the investment activities. Among the largest projects are the construction of grid infrastructure for power supply to a new section of the A‑289 federal highway in the Krasnodar Krai and the provision of power supply to a large industrial park in the Republic of Adygeya.

As part of the Advanced Development Programme for the Electric Power Industry, the Company plans to provide additional financing of over RUB 22.8 billion for investment projects by 2029. The programme provides for the renovation of 16 high‑voltage power supply centres in 11 municipalities of the Krasnodar Krai.

In compliance with directives from the Russian Federation's Government and Presidential Executive Office, Sochi venues holding national and international events were provided with stable and continuous power supply.

The Company dispatched a group of employees to help with the restoration of power supply facilities in the Donetsk People's Republic.

New consumers

One of the top priorities at the level of grid connection is making sure that the regions under our responsibility are getting the energy they need. In 2024, over 37,000 consumers were connected to the grid infrastructure. The capacity output totalled 772 MW. The new subscribers include household consumers, healthcare facilities, education and cultural institutions, agro‑industrial enterprises, and housing construction and tourist destination projects. The work continues to make the grid connection of facilities under the national projects dedicated to Demography, Health Care, Education, Housing and Urban Environment, etc.

The Company completed the gird connection of 24 electric charging stations in major cities and on regional roads.

The Company is involved in the connection of the Adler Bypass highway to the power grid infrastructure (as part of the construction of an alternate speedway of A‑147 Dzhubga–Sochi highway) and a solar power plant in the Seversky District of the Krasnodar Krai, as well as the all‑season mountain eco‑resort Lagonaki in the Republic of Adygeya.

Customer‑centric approach

The Company continued to expand interactive customer services as part of its consumer care system, while maintaining its focus on providing comfortable conditions for face‑to‑face interaction with consumers.

Rosseti Kuban also places great emphasis on developing additional services. Revenue from their sale in the reporting period amounted to RUB 1.28 billion.

Reliability data

The key reliability metrics were related to the timely and high‑quality execution of annual equipment maintenance and repair programmes, and preparations for the summer and winter periods. The Company's plans for all grid‑related areas in 2024 were fully accomplished, which made it possible to reduce the accident rate in electrical grids by 1.8% compared to the previous period.

To improve the energy efficiency of the equipment in use, the Company annually lays down a loss reduction plan. According to the results achieved, electricity losses were reduced by 37 million kWh.

Electricity delivery to the grid in 2024 amounted to 28.49 billion kWh, up 6% year‑on‑year.

Social responsibility

A primary goal of Rosseti Kuban's operations is to provide safe working conditions as well as ensure occupational health and safety. The Company fully complies with the requirements of Russian laws regarding the occupational safety obligations of the employer.

Environmental protection is another unwavering priority and follows through all legal requirements and regulations.

Priorities

I have no doubt that the expertise of the management and staff will be conducive to the successful delivery of the plans and further strengthen the image of Rosseti Kuban as a socially responsible entity.

The Company's strategic priorities remain unchanged, namely to provide reliable and high‑quality power supply for the comfortable life of our consumers and stable economic growth in the regions.