KPI name

Target value1

Performance2

Quarterly KPI

No increase in the number of major failures

No increase

V

Preventing the growth of the number of accident victims

No increase

V

Business solvency indicator - debt to equity ratio

≤ 1,5 or values on the business plan (taking into account the solvency group)

V

Annual KPI

Total shareholder return (TSR)

≥ average value of the indicator for companies included in the MICEX PWR Index at the end of the reporting period, or ≥ average value of the indicator for last three years preceding the reporting one

Х3

Return On Invested Capital (ROIC)

≥ 0,9

V

Reduction of unit operating expenses

≥ as approved in the business plan

V

Level of electric energy losses

≤ as approved in the business plan

V

Achieving the level of reliability of services provided

1

V

Reduction of unit investment expenditures

≥ 15 %

V

Implementation of a facility commissioning schedule

≥ 95 %

V

Compliance with a grid connection deadline

≤ 1,1

V

Workforce productivity increase

≥ as approved in the business plan

V

[1] Approved by the resolution of the Board of Directors of IDGC of Centre dated 26.02.2015 (Minutes # 03/15 of 27.02.2015).

[2] Approved by the resolution of the Board of Directors of IDGC of Centre dated 16.05.2016 (Minutes # 15/16 of 17.05.2016).

[3] Causes: decisions of regulatory agencies in the electric power industry led to shortfall in income and a significant reduction in the value of shares. An additional negative impact on the share price in 2015 was given by the following factors, beyond control of the management: the unsolved issue of "last mile", the deterioration of payment discipline of customers and shortfall in income due to the implementation of discounted grid connections.