RSTI.L Regulatory News (RSTI)

ROSSETI Discloses Its IFRS Financial Results for 2017

April 6, 2018. Moscow, Russia - PJSC ROSSETI (LSE:RSTI) ("Company"), Russia's largest electricity transmission and distribution company, discloses today the IFRS financial results of the ROSSETI Group ("Group") for 2017.

Financial results:[1]

· Revenue: 948.3 billion rubles (2016: 901.0 billion rubles)

· EBITDA: 313.7 billion rubles (2016: 265.2 billion rubles)

· Net profit: 137.1 billion rubles (2016: 98.3 billion rubles)

· Net cash flows from operating activities: 212.4 billion rubles (2016: 175.6 billion rubles)

Key operating results:

· Electricity transportation: 748.2 billion kWh (2016: 742.7 billion kWh)

· Network connection: 25,890 MW (2016: 16,780 MW)

Corporate highlights:

· Pavel Livinsky was elected as the Director General of ROSSETI

· The Company paid a total of 3.8 billion rubles as dividends for 2016, including dividends for 1Q2016.

· ROSSETI approved a restated version of the Regulations for Dividend Policy and the Model Regulations for Dividend Policy of subsidiaries.

· ROSSETI was added to the FTSE4Good Emerging Index using sustainable investment criteria.

· Moody's upgraded the long-term credit rating of ROSSETI to Russia's sovereign level (Ba1, stable outlook).

· The weighted average interest rate for the Group's debt portfolio decreased by 1.6 pp in 2017 to 7.3% p.a.

Events after the reporting period:

· Standard & Poor's upgraded the long-term credit rating of ROSSETI to investment grade (BBB-, stable outlook).

· ROSSETI received the highest national scale credit rating of AAA(RU) from the Analytical Credit Rating Agency (ACRA) with a stable outlook.

ROSSETI disclosed the IFRS financial results for 2017.

ROSSETI made a net profit of 137.1 billion rubles in 2017, while EBITDA reached 313.7 billion rubles in 2017.

Financial results

ROSSETI's financial and economic indicators in 2017 reflect the Company's considerable results and upward changes in profitability and financial stability.

Net profit was 137.1 billion rubles in 2017, which is an increase of 38.8 billion rubles or 39.5% on 2016.

EBITDA was 313.7 billion rubles in the reporting period, or 18.3% higher than in 2016.

Key factors contributing to upward changes in financial performance:

- revenue from electricity transmission and distribution grew by 62.3 billion rubles, or 8.6%, due to higher net electricity delivery and tariff indexation;

- operating expenses decreased by 9 billion rubles, or 1.1%, due to measures to improve efficiency.

In 2017, the Group's assets increased by 6.3% to 2,409.4 billion rubles (December 31, 2016: 2,266.7 billion rubles), mainly due to new facilities put into operation under the capex program.

The Group's net debt went down by 3.3% to 456.2 billion rubles as at December 31, 2017 (December 31, 2016: 471.9 billion rubles).

According to Oksana Shatokhina, Deputy Director General for Economic Affairs, the ROSSETI Group continued in 2017 what it achieved in 2016 to demonstrate an upward trend and the stable growth of its key indicators of profitability and financial stability, undoubtedly ensuring reliable electricity transmission and distribution and securing a high-quality and affordable power supply.

In order to ensure the financial stability of subsidiaries and create the conditions for their further development, the Group continued in 2017 to carry out measures under the development plans, which enabled the ROSSETI Group to maintain an upward trend in its key financial and economic indicators.

More detailed information about the consolidated financial statements for the period ended December 31, 2017, can be found on the National Storage Mechanism at http://www.morningstar.co.uk/uk/NSM or on the Company's website at http://www.rosseti.ru/.

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A conference call for investors and analysts will take place at 12:00 p.m. Moscow (10:00 a.m. London/5:00 a.m. New York) on April 6, 2018.

Conference call details:

Russia

+7 (495) 221 6523

8 10 800 204 14011

UK

+44 203-043-2440

08082381774

USA

1 8778874163

Conference ID (English call): 75583617#

Conference ID (Russian call): 99390173#

Participants are advised to dial in 5-10 minutes prior to the start time.

A replay facility will be available for 30 days (until May 6, 2018), and can be accessed using the following details:

Replay Passcode:

312423# RUS / 312425# ENG

Russia: +7 (495) 745 7948

United Kingdom: +44 203 367 9460

United States of America: +1 87 76 42 30 18

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For further information please contact:

PJSC ROSSETI

Horizon

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Public Joint Stock Company ROSSETI (PJSC ROSSETI) is one of the largest electric grid companies in the world. The Company manages 2.34 million kilometers of power lines and 503,000 substations with more than 782 GVA of transformer capacity. The number of the ROSSETI Group's employees is 215,000.

ROSSETI comprises 36 subsidiaries and dependent companies, including 15 interregional grid companies and one transmission grid company. The controlling shareholder with an 88.04% stake in the Company is the government represented by the Federal Agency for State Property Management of the Russian Federation.