Corporate governance

Allocation of profit

Company’s dividend policy focuses on enhancement of Company’s investment prospects and market value, balancing between interests of the Company and its stockholders. Pursuant to the Edict^[94] the Board of Directors^[95] has enacted new Regulations on the Dividend Policy.

Fundamentals of the Company’s Dividend Policy

Compliance of the Company’s dividend accrual and payout practices with laws of Russia and corporate governance standards (Edict^[94]);
Optimum compromise between the interests of the Company and its stockholders;
Specification of a dividend size at a minimum of 50% of net income, presented in financial statements (incl. consolidated statements, prepared under IFRS), calculated as stated by the Regulations;
Provision of possibility to pay quarterly dividends, provided that corresponding criteria are complied with;
Enforcement of utmost transparency (comprehensibility) of a tool for dividend size calculation and payout;
Enforcement of dividend upward trend, provided that Company’s net income keeps growing;
Availability of information on the Company’s dividend policy for stockholders and stakeholders;
Maintenance of required financial and technical condition of the Company (execution of investment program), enforcement of Company’s development prospects.

FY2014-2017 allocation of profit*

	FY2014 (GM held in 2015) ^[96]	FY2015 (GM held in 2016) ^[60]	FY2016 (GM held in 2017) ^[61]
Non-distributed profit (loss) of the reported period, incl.:	2,006,783	2,466,036	3,305,554
Reserve fund	80,260	0	0
Enterprise development	1,419,426	1,224,523	2,579,881
Dividends	507,097	1,241,513	725,673
Recovery of losses of previous periods	0	0	0

Pursuant to the Company’s charter, allocation of FY2017 profit will be decided upon by the Annual General Meeting of Stockholders.

Dividend report:

	Total accrued dividend, RUB	DPS, RUB	Dividends paid, RUB	Paid/Accrued, %
FY2016 ^[61]	725,673,037.27	0.0083	717,405,425.98	98.86
FY2015 ^[60]	1,241,512,895.69	0.0142	1,227,343,375.54	98.86
FY2014 ^[96]	507,096,823.86	0.0058	498,984,858.29	98.4

Unfortunately, persons, included into the list of persons entitled to collect dividends, collected no dividends since they had not provided the registrar with relevant information on details required for dividend transfers.

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1About company
1.1Mission and strategic goals
1.2Market share
1.3Management systems
1.4Key 2017 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.5Investments
2.2.6Innovations
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Description of tariff policy
2.3.2Analysis of revenues and expenses
2.3.3Analysis of receivables and payables
2.3.4Credit ratings and bonds
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Security and anti-corruption
3.3.5Risk management
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.5FAQ
3.4.6Allocation of profit
3.4.7Contact information
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Company’s transactions
4.6Subsidiaries and financial investments
4.7Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Corporate governance code compliance report
5.4References
5.5Abbreviations and acronyms
5.6Sitemap