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The performance of Rosseti Centre is estimated on the basis of key performance indicators, the structure and planned values of which are approved annually by the Board of Directors of the Company. General Director of Rosseti Centre provides the Board of Directors a report on the achievement of planned values of key performance indicators (hereinafter — KPI) at the end of each year.
Key performance indicators also form the basis of material incentives for General Director and senior management of the Company. General Director and senior managers are rewarded by the results of the implementation of KPIs, depending on the degree of KPIs execution for a reporting period (a year).
| KPI name1 | Target values2 | Implementation3 |
|---|---|---|
| Annual KPI | ||
|
Total shareholder return |
≥ the arithmetic mean amount of funds allocated for the payment of dividends in accordance with the decisions of the general meetings of shareholders of the Company for 3 years preceding the reporting period and ≥ the amount of funds provided for the payment of dividends in the reporting period, in accordance with the business plan of the Company |
V |
|
Return on invested capital |
≥ 95,0% |
V |
|
Operating profit (EBITDA) |
complete |
V |
|
Reduction of unit operating expenses (costs) |
≥ 2,0% |
V |
|
Level of electric energy losses |
≤ 10,85% |
V |
|
Workforce productivity |
≥ 10,00%4 |
V |
|
Innovation activity efficiency |
≥ 90% |
V5 |
|
Decrease in accounts receivable |
≤ 100% |
V |
|
Compliance with the timing of grid connection |
≤ the actual value of the indicator for the previous year multiplied by 0,85, but not less than the value of 1,1 |
V |
|
Debt/EBITDA |
complete |
V |
|
Implementation of a facility commissioning schedule |
≥ 90% |
V |
|
Ready to work during the heating season |
Concurrently:
1) ≥ 0,95 2) Failure to achieve the established value of the specialized indicator “The presence of unfulfilled readiness conditions by the subject of the electric power industry” |
V |
|
Implementation of the Company’s Development Plan |
not set |
not assessed7 |
|
Achieving the level of reliability of services provided |
Concurrently: 1) Ki ≤ 1; 2) No significant deterioration in the indicators established by the tariff regulation authorities; 3) No growth of major accidents |
V |
|
No accidents in production |
Concurrently: 1) No more than two victims; 2) 0 |
not implemented |
1 Approved by the decision of the Board of Directors of Rosseti Centre, PJSC on 12 October 2020 (Minutes # 46/20 dated 13.10.2020), as amended by the decision of the Board of Directors of Rosseti Centre, PJSC on 21.12.2022 (Minutes # 66/22 dated 23.12.2022).
2 The target KPI values for 2022 were approved by the decision of the Board of Directors of Rosseti Centre, PJSC on 28 January 2022 (Minutes # 02/22 dated 31.01.2022), as amended by the decision of the Board of Directors of Rosseti Centre, PJSC on 21.12.2022 (Minutes # 66/22 dated 23.12.2022).
3 Approved by the decision of the Board of Directors of Rosseti Centre, PJSC on 13 September 2023 (Minutes # 45/23 dated 13.09.2023).
4 Relative to the base year 2020.
5 Approved by the decision of the Board of Directors of Rosseti Centre, PJSC on 19 December 2023 (Minutes # 55/23 dated 19.12.2023).
6 The Methodology for assessing the readiness of electric power industry entities to work during the heating season, approved by Order of the Ministry of Energy of Russia dated 27.12.2017 № 1233 (*as amended on 28.07.2022 “Not ready” if the readiness index is less than 80; “Ready with conditions” if the readiness index is less than 90 and greater than or equal to 80; “Ready” if the readiness index is greater than or equal to 90).
7 The target value and assessment of the implementation of the KPI “Execution of the Company’s Development Plan” for 2022 is not established and is not assessed due to the absence of the Company’s Development Plan in 2022.