On February 2, 2018, the Board of Directors of IDGC of Centre and Volga region (the Company) approved the new version of the regulations on dividend policy of the company.

The approved dividend policy is aimed at increasing the investment attractiveness of the Company and brought into compliance with the legislation of the Russian Federation, including the order of the Government of the Russian Federation No. 1094-p dated 29.05.2017.

The main amendments to the regulations on dividend policy of IDGC of Centre and Volga region concern the procedure for determining the amount of dividend payments. The amount allocated for dividend payment at the end of the reporting year is determined in accordance with the procedure for calculating dividend payments under the General formula:

DIV= MAX(DIV1; DIV2), Diver where

DIV is the total net profit (RAS) allocated to dividends on ordinary shares;

Diver is the amount of interim dividends paid in the first quarter, six months, nine months of the reporting year;

DIV1 are dividends calculated on the basis of the company's net profit determined according to the accounting (financial) statements prepared in accordance with the Russian accounting standards (hereinafter – The company): 50% of net profit under RAS, excluding revenues and expenses from revaluation of marketable securities shares of subsidiaries and related income tax, the actual investment by the net profit on electricity transmission, the net profit from activities on technological connection to electric networks (excluding revenues from services on technological connection exclusive of VAT).

DIV2 are dividends calculated on the basis of net profit determined on the basis of consolidated financial statements prepared in accordance with International financial reporting standards (the - IFRS): 50% of net profit under IFRS after deduction of the actual investment, at the expense of net profit in transfer of electric energy (the company), excess of depreciation of fixed assets and intangible assets current period to be used for financing the investment program (for the company) depreciation on fixed assets and intangible assets (IFRS), net profit from activities on technological connection to electric networks (the company) (excluding revenues from services on technological connection exclusive of VAT (for the company)).

At the same time, the amount of dividends (DIV2) may not exceed the net profit determined according to the accounting (financial) statements made in accordance with RAS, based on the results of the reporting year without taking into account income and expenses related to the revaluation of shares of subsidiaries traded on the securities market and related income tax, and mandatory contributions to reserve and other funds in accordance with the Charter of the company.

In addition, the Provision on dividend policy of JSC "IDGC of Centre and Volga region" included the terms and order of payment of interim dividends (Divp) in the amount of 50% of net profit under RAS, excluding revenues and expenses from revaluation of marketable securities shares of subsidiaries and related income tax, actual investment carried out through net profit in transfer of electric energy and the net profit from activities on technological connection to electric networks (the company).

PJSC "IDGC of Centre and Volga region" has a positive dividend history and starting in 2011, annually pays dividends to shareholders. In 2017 at the annual General meeting of shareholders of JSC "IDGC of Centre and Volga region" the decision on the payment record size for the entire period of activity of the company of dividends in the amount of 1 045 329 thousand.

The regulations on dividend policy of IDGC of Centre and Volga region, PJSC as amended can be found on the Company's website at the following address: https://www.mrsk-cp.ru/stockholder_investor/securities/dividents/dividendnaya-politika/