Risk management and internal control system

The Company has organized and operates a risk management and internal control system (hereinafter referred to as the RMICS), which is a set of organizational ¬measures, methods, procedures, corporate culture norms and actions taken by the Company:

• to achieve an optimal balance between the growth of the Company’s value, profitability and risks;
• to ensure the financial stability of the Company and efficient management of business activities;
• ensuring the safety of assets;
• compliance with legislation, the Articles of Association and internal documents of the Company;
• timely preparation of reliable reporting.

As part of the implementation of this direction, Rosseti Centre is guided by the Risk Management and Internal Control Policy of Rosseti Centre, PJSC.

You may familiarize yourself with the Risk Management and Internal Control Policy in the Information Disclosure section - the Articles of Association and internal documents.

Objectives of the RMICS:

• ensuring economically efficient activities of the Company, rational distribution and use of resources, safety of assets;
• ensuring the completeness, reliability, accuracy and timeliness of the formation, communication / presentation of information and all types of reporting of the Company established by applicable legislation and local regulations of the Company;
• ensuring compliance with the requirements of legislation applicable to the activities of the Company, compliance with internal policies, regulations and procedures of the Company;
• ensuring the safety of the environment, the safety of workers and third parties when the Company carries out its activities;
• maintaining the process of identification, analysis and assessment of risks arising at all levels of management of the Company, effective risk management;
• ensuring the development and implementation of effective control procedures to reduce the risks associated with the Company’s activities to a level not higher than the preferred risk (risk appetite);
• ensuring effective prevention, identification and elimination of violations when the Company carries out its activities and conducts financial and business operations;
• ensuring the protection of the interests of the Company, countering unfair actions of the Company’s employees and third parties;
• development of a risk-oriented corporate culture in the Company;
• providing an information environment for organizing effective risk management and internal control, as well as making balanced management decisions.

Participants of the RMICS:

• Board of Directors;
• Committees of the Board of Directors within their competencies;
• Audit Committee;
• executive bodies (Management Board, General Director);
• risk owners;
• managers and employees of structural divisions;
• risk management and internal control division;
• internal audit division.

Risks of Rosseti Centre, PJSC for 2024 with significant and critical levels of materiality.