The dividend policy at Kubanenergo is the sum total of the principles and methods used by the Company to determine the proportion between the capital part of its profit and the part paid out as dividends, as well as determining the order and timelines for dividend payments and the liability of the Company for breach of duty in paying stated dividends.*

Basic principles of Kubanenergo dividend policy

To balance the interests of the Company and its shareholders in determining the size of dividend payments

Respect for and strict observance of the rights of shareholders contained in legislation in effect in the Russian Federation and the Company’s Charter and internal documents

Our dividend policy is aimed at improving the investment attractiveness of Kubanenergo and growth of its market capitalisation.

Alongside growth in capitalisation we aspire to increase the size of dividends paid to shareholders based on the size of net profit made over the financial accounting period and the investment requirements of developing the Company.

1. *

   The Statement on Dividend Policy at Kubanenergo can be found on the Company website www.kubanenergo.ru/eng — About the Company / Constituent and internal documents.