Key Performance Indicators
The system of key performance indicators of the Company (KPI) was established by the decision of the Board of Directors of the Company of 3/31/2016 (Minutes No. 234/2016 of 4/1/2016).
In 2016, the content and procedure of calculating KPIs were adjusted by the decision of the Board of Directors of the Company (Minutes No. 238/2016 of 4/29/2016, Minutes No. 260/2006 of 12/30/2016) to comply with Directives of the Government of the Russian Federation No. 1472p-P13 of 3/3/2016 and No. 4750p-P13 of 7/4/2016 in the part of KPI “Efficiency of Innovative Activity” and “Reduction of Specific Operating Expenses (Costs).”
In accordance with the above decisions of the Board of Directors of the Company, the following composition and target values of key performance indicators are established for 2016:
Quarterly Indicators
| Indicators composition | Target values in 2016 |
Lack of major accidents |
Lack of growth |
Prevention of growth in number of victims in case of accidents |
Lack of growth |
Financial stability and liquidity indicators |
Ratio between equity and debt capital ≥ 0.67 or the value stipulated in the business plan and Modified current liquidity ratio ≥ 1 or the value stipulated in the business plan |
Annual Indicators
| Indicators composition | Target values in 2016 |
Total shareholder return (TSR) |
> changes in MOEX RCI index (Regulated Companies Indices) for the reporting period + 0.01 pp |
Return on invested capital (ROIC) |
≥ the estimated value calculated in accordance with Company expected values and stipulated in accordance with the business plan made on the basis of the principles of consolidated financial statements (International Financial Reporting Standards) |
Decrease in specific operating expenses (costs) |
≥10% |
Level of power losses |
≤ the value stipulated in the business plan |
Achievement of reliability level of the rendered services |
≤1 |
Decrease in specific investment expenses |
≤ 1 |
Implementation of the schedule of objects’ commissioning |
≥ 95% |
Observance of terms for implementation of technological connection |
≤1.1 |
| Procurement rate of procurement procedures with small and medium businesses | ≥ 10% for the procurement rate of procurement procedures with small and medium businesses, and ≥ 18% for the procurement rate of procurement procedures with small and medium businesses (including agreements provided that subcontractors/co-contractors among mall and medium businesses are involved in their implementation) |
Labor productivity increase |
≥RUB 1,500 man/h |
Efficiency if innovative activity |
≥ 90% |
Actual values of indicators are not summarized and approved by the Board of Directors of the Company at the time of the formation of the Annual Report, due to the timing and procedure of preparation of the reporting which is the source of information for their calculation.
The comparison of the achieved values of the current year with the previous year is not carried out due to a change in approaches to the procedure of establishing targets and calculation of actual KPI values.
The system of key performance indicators applied in the Company is interconnected with an amount of variable part of remuneration to managers: specific amount in volume of the paid bonuses is established for each indicator, quarter and annual bonuses are paid providing that all corresponding KPIs are performed.