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Social responsibility and corporate sustainability report 2015
RU

Company Profile

Public joint-stock company “Federal Grid Company of Unified Energy System (hereinafter Company, Federal Grid Company, Federal Grid, PJSC FGC UES) was established in 2002, in accordance with Russia’s electricity industry reform package, as a management organisation of the Unified National (All-Russia) Electric Grid (“UNEG”) for the purpose of its maintenance and development. G4-4

In accordance with the Federal Law “On Electric Power Industry” No. 35-FZ dated 26 March 2003, Federal Grid Company is a natural monopoly in the area of electricity transmission through UNEG and is responsible for the reliable electricity supply for customers in the Russian Federation.

Federal Grid is included in a list of systemically important organisations that have a significant influence on GDP of the Russian Federation, employment and social stability in the country.

Electric grid facilities locate in the regions of the Russian Federation with a total area of more than 14.8 million sq. km (86.4% of the area of the country). Being a technological infrastructure of UES of Russia and electric energy market, electric grids play a key integrative role in fuel and energy complex; provide electricity supply to consumers, power delivery of power plants, as well as power exchange between the regions, the implementation of systemic impacts.

Full corporate name: Public Joint Stock Company “Federal Grid Company of Unified Energy System”.G4-3 G4-7

Location of the organisation’s headquarters G4-5

Location: 5a Academica Chelomeya str., Moscow,
Russia 117630
Phone: 8 800 200 18 81
Fax: +7 (495) 710-96-41
E-mail: info@fsk-ees.ru
Website: www.fsk-ees.ru

Full corporate name is effective from 08 July 2015.

Short corporate name: PJSC FGC UES

Short corporate name is effective from 08 July 2015.

Core businesses:

  • managing UNEG;
  • investing in UNEG development;
  • providing electricity transmission and technological connection services to Wholesale Electricity and Capacity Market (WECM) participants;
  • maintaining UNEG facilities in appropriate condition and providing technical supervision.

Capital

Federal Grid Company’s equity as at end-2015 amounted to RUB886,127,082 thousand

Federal Grid Company’s debt as at end-2015 amounted to RUB281,022,301 thousand.

Federal Grid’s net revenue for 2015 from sales of goods, works an services (less VAT and similar payments) amounted

RUB173,266,394 thousand, including:

  • Electricity transmission services – RUB158,986,316 thousand
  • Other operations – RUB14,280,078 thousand

Share Capital

As of 31 December 2015, the charter capital of Federal Grid Company amounted to RUB637,332,661,531.50 and was divided into 1,274,665,323,063 ordinary registered non-documentary shares with a nominal value of RUB0.50 each.G4-9

Federal Grid’s net profit for 2015

173.3
RUB billion

In accordance with the Company’s Articles of Association, the number of authorised shares is 72,140,500,768 ordinary registered shares with a nominal value of RUB0.50 each and a total nominal value of RUB36,070,250,384. Authorised ordinary shares offer the same rights as outstanding ordinary shares.

Information on the Company’s share capital history can be found on our corporate website, www.fsk-ees.ru, in the Section Investors > Share Information > Share Capital History

Share Capital Structure

The Company has more than 400,000 shareholders. PJSC Rosseti, which owns 80.13% of the share capital, is the Company’s majority shareholder. The Russian Federation, represented by the Federal Agency for State Property Management (Rosimushchestvo), owns 0.59% of the share capital.

The Company’ Registrar is JSC STATUS.

Details about the Registrar are available on the Company’s website: http://www.fsk-ees.ru/shareholders_and_investors/information_for_shareholders/for_information_about_the_registrar/

The State’s share in the сharter capital of Federal Grid Company increased successively due to placement of additional issues in favor of the Russian Federation conducted in 2007, 2008, 2009, 2010, 2011, 2012 and 2013 with payment of shares by means of the Federal budget, and as a result of the reorganisation of JSC RAO UES of Russia performed in 2008. The received budget allocations were spent by Federal grid for the investment programme financing and implementation of federal target programs. In total, RUB101,857,735,698 were allocated from the Federal budget from 2007 to 2013 to finance the Company’s investment programme, including RUB3.756 billion in 2013. In 2014–2015, no funds from the Federal budget were sent to the Company.G4-ЕС4

In June 2013, PJSC Rosseti and Rosimushchestvo signed a shareholders’ agreement regarding the managing and voting in Federal Grid Company. The parties have signed the agreement with respect to all, present and future, voting shares in Federal Grid Company.

To improve interactions with shareholders, Federal Grid Company analysed its shareholder register and identified the key groups of holders of ordinary shares and depository receipts. As of the end of 2015, the Company’s free float was 18.2%. The main minority shareholders of the Company are institutional investors and holding companies, with retail investors accounting for 3.23%. G4-13

Share Capital Structure and Number of Outstanding Shares, %

* Since 2016 – FGC – Asset Management, LLC.
** Federal Grid Company management is not aware of any shareholders that hold more than 5% of the outstanding shares, other than those specified above.

Foreign Investor Breakdown by Investment Horizons, %

32% of the Company’s free float includes foreign institutional investors, such as major global funds focused primarily on Russia, whose assets under management exceed USD1 billion: Kopernik Global All-Cap Fund, Vanguard International Equity Index Fund, MarketVectors ETF Trust Russia ETF, and BlackRock funds.

Organisational Structure of Federal Grid Company

The General Meeting of Shareholders is the supreme governing body of the Company. The Board of Directors is responsible for establishing the Federal Grid’s strategy and overseeing the Management Board’s activities. The Management Board is in charge for the day-to-day operations of the Company.

As at 31 December 2015, the Company has 51 regional branches, including:

  • 88 branches – backbone electric grids (MES)
  • 41 branches – backbone electric grid enterprises (PMES)
  • Technical Supervision Centre
  • Special Purpose Production Centre «Bely Rast»
Further details on the Federal Grid branches are available on the website at www.fsk-ees.ru in the section About Company > Branches

Managing subsidiaries and associates

As at 31 December 2015, Federal Grid Company participates in 26 business entities that operate in different industries, including those that support electric grid facilities (core subsidiaries).

Detailed information about subsidiaries and associates is available in the 2015 Annual Report of Federal Grid Company.

 

Key forms of Federal Grid Company’s
engagement with subsidiaries and associates
Federal Grid Company’s internal documents that regulate management of its subsidiaries and associates
  • Federal Grid Company’s Board of Directors reviews issues pertaining to the Company representatives’ position on draft decisions on issues included in the agendas of GMS and meetings of the boards of directors (Supervisory boards) of subsidiaries and associates
  • Federal Grid Company contributes to the drafting of proposals and decision-making by the management bodies of its subsidiaries and associates through the Company’s representatives at General Meetings of Shareholders / Participants and in the boards of directors (Supervisory boards) of subsidiaries and associates
  • Federal Grid Company’s Management Board reviews issues of engagement with subsidiaries and associates in accordance with its remit
  • Regulations on managing subsidiaries and associates and other entities in which Federal Grid Company participates
  • Standard for drawing up summary instructions to representatives of Federal Grid Company on issues included in the agendas of General Meetings of Shareholders / Participants and meetings of the boards of directors (supervisory boards) of subsidiaries and associates
  • Methodology for KPI calculation and target achievement evaluation in Subsidiaries and Associates of Federal Grid Company
  • Procedure for engagement of Executive Office units of Federal Grid Company with subsidiaries and associates with respect to information gathering and data verification for KPI calculation and performance evaluation
  • Federal Grid Company’s Order on Approval of Standards and Template Regulations on Managing Subsidiaries and Associates, and other internal documents  

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