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Statement of the Chairman of the Management Board

DEAR COLLEAGUES, PARTNERS AND FRIENDS!

The principles of sustainable development and corporate social responsibility are among the Companys main priorities that have been determining the activity of the Company since it was founded. In turn, the public reporting over the past six years has enabled the intake of objective feedback from the public.

2012 was a special year for the Company, marking its 10th anniversary. In this regard, this Report presents a retrospective look at our work in the formation of the socially oriented company in recent years.

Our achievements are the result of hard work from all the employees of Federal Grid Company. It is them who are the pride and the key value of the company!

Awareness of the role of each employee in the overall success changes approaches to personnel development from human resources management to human capital management. Therefore, Federal Grid Company places high emphasis on attracting young professionals and interacting with universities, develops the reserve personnel system, and actively implements new housing programs. Our experience is invaluable, and the Company will use it in making future plans for the development of corporate social policy.

It is also important for us that the Federal Grid CompanyFederal Grid Companys sustainable development activities have earned the approval of state authorities, partners and the professional community. In 2012, the Ministry of Energy of the Russian Federation marked Federal Grid Companys contribution to the development of social policy in the power industry. The Companys 2011 Social Responsibility and Sustainability Report was recognized as the best social report in the country, and in the framework of the Second St. Petersburg International Legal Forum, Federal Grid Company was named one of the leaders in the implementation of anti-corruption policy among the power industry enterprises of the Russian Federation.

Carrying out its mission to ensure a reliable energy supply to the country, Federal Grid Company is counting on the support of all interested parties - shareholders and investors, universities, research institutions, and equipment manufacturers.

Goals can only be achieved together!

Total area spanned 75 Russian regions
square km
The length of our transmission lines is 131.6 thousand km.
This is equivalent to a spaceship orbiting the Earth four times.
A reliable energy sector
for Russias
economic growth
3 643 km
transmission lines
put into operation
in 2012
25 103
PEOPLE
Total number
of corporate
employees as of
31 December 2012
26%
over-fulfillment
of commissioning
plans for
substations