Key performance indicators
The key performance indicators and functional key performance indicators adopted in the Company are measures that are used to evaluate the attainment of the Company’s priority development goals.
Since 2023, the KPI system of Rosseti Group has been shaped in line with Order of the Government of the Russian Federation No. 3579-r dated 28 December 2020.
The system of key performance indicators is divided into two groups: key performance indicators (hereinafter referred to as KPIs) and functional key performance indicators (hereinafter referred to as FKPIs). Herewith, KPIs are indicators linked to the Company’s strategic documents, which are used to assess the performance of the Company’s entire management team (head, deputy heads, chief accountant), while FKPIs are individual indicators set for the Company’s officials personally, with due regard to the specifics of the Company’s business lines supervised by them.
Indicator | Method of calculation | Weight in the remuneration system for 2025, % | Unit of measurement | Target for 2025 | Value achieved in 2025For 2025, it shows the expected achievement of KPIs, taking into account the timing and preparation procedure of reports that provide initial data for calculations. The final actual values are to be approved by the Board of Directors of PJSC Rosseti South. | Assessment of achievement in 2025If the KPI achievement rate exceeds 120%, the percentage equal to 120% is stated; if the achievement rate is under 80%, the percentage of achievement equal to 0% is stated. | Reasons for underachievement | Target for 2026The composition and target values of the indicators were approved by the decision of the Board of Directors of PJSC Rosseti South No. 631/2025 dated 18 June 2025. | Target for 2027The composition and target values of the indicators were approved by the decision of the Board of Directors of PJSC Rosseti South No. 631/2025 dated 18 June 2025. | |
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Financial and economic key performance indicators | ||||||||||
Return on invested capital (ROIC) | Ratio of operating profit adjusted for impairment/(reversal of impairment) of fixed assets, revenue from grid connection services, and accrual/(reversal of) provision for expected credit losses to the sum of average equity and long-term loans and borrowings | 10 | % | 19.60 | 25.30 | 120 % achieved | – | 20.40 | 23.00 | |
Operating profit margin | Ratio of operating profit adjusted for impairment/(reversal of impairment) of fixed assets and revenue from grid connection services to revenue, minus revenue from grid connection services | 20 | % | 8.20 | 7.80 | 95 % partially achieved | – | 10.20 | 11.40 | |
Net profit without impairment and grid connection | Net profit without impairment and grid connection profit/(loss) adjusted for impairment/(reversal of impairment) of fixed assets and revenues from grid connection services (including relevant income tax) | 20 | RUB ‘000 | –150,056.00 | 2,315,329.00 | 120 % achieved | – | 2,486,487.00 | 4,254,680.00 | |
Industry-specific key performance indicators | ||||||||||
Level of electric losses | Ratio of the volume of electricity losses in the Company’s grids (calculated as the difference between electricity delivered to the grid and electricity delivered from the grid and domestic consumption) increased by the amount of differences for previous periods, settled against the Company, to the electricity delivered to the grid for the reporting period | 15 | % | 9.66 | 9.42 | 103 % achieved | – | 9.63 | 9.62 | |
Readiness for heating season | Indicator that estimates the readiness of the Company to work during the heating season, based on monthly monitoring by the Ministry of Energy of Russia | 20 | relative unit | 1.00 | 1.00 | 100 % achieved | – | 1.00 | 1.00 | |
Compliance with commissioning schedule | Ratio of the total actual volume of commissioning of fixed assets in the reporting year derived from the progress report on the Company’s investment programme (in monetary terms, on the basis of the date when the construction completion certificate is signed off by the acceptance commission) to the planned one in accordance with the approved investment programme and implementation schedule | 15 | % | 100.00 | 105.80 | 106 % achieved | – | 100.00 | 100.00 | |
Indicative indicators | ||||||||||
Achievement of the efficiency of grid connection procedures of the national investment climate rating | The indicator is determined on the basis of the achievement of benchmarks for the efficiency of grid connection procedures of the national investment climate rating in the constituent entities of the Russian Federation within the Company’s operational responsibility area | Indicative indicator | % | 100.00 | 84.60 | not achieved | –In PJSC Rosseti South, the volume of accumulated obligations for grid connection of the subsidised category of applicants (up to 150 kW) is not backed with sufficient sources of financing, and therefore there are a significant number of overdue grid connection contracts under execution, which, in turn, leads to an increase in the average time of connection and a negative reaction from applicants. | 100.00 | 100.00 | |
Bonus reduction indicators | ||||||||||
Maximum amount of differences in the amount of losses at the end of the reporting period (year) | Bonus reduction indicator, the size of which is calculated as the share of differences at the end of the reporting period (year) (not settled as of the end of the second month of the year following the reporting period) not covered by actional work, relative to the volume of electricity losses in the Company’s grids | –10 | % | 0.55 | 0.02 | Achieved | – | 0.55 | 0.55 | |
Violation of the transactions procedure | The indicator assessing the absence of violations in the execution of major transactions, as well as related-party transactions and transactions requiring approval under the Company’s Articles of Association | –10 | number | 0.00 | 0.00 | Achieved | – | 0.00 | 0.00 | |
Timely execution of corrective action plans (CAPs) | The indicator assessing whether the Company fulfilled its CAPs in the reporting period, with the CAPs being developed and approved by the Company based on the results of control measures taken in relation to the Company and audits conducted by auditing commissions | –10 | % | 90.00 | 100.00 | Achieved | – | 90.00 | 90.00 | |
An indicator of bonus reduction for failure to deliver the approved strategy (programme) of digital transformation | An indicator that evaluates the results of the implementation of the approved digital transformation strategy (programme) | –20 | % | 100.00 | 100.00 | Achieved | – | 100.00 | 100.00 | |
The indicator of bonus reduction for late, incomplete or unreliable disclosure of information necessary for monitoring the achievement of key performance indicators and functional key performance indicators | An indicator that evaluates the timely, complete and reliable disclosure of information necessary to monitor the achievement of key performance indicators and functional key performance indicators | –20 | % | 100.00 | 100.00 | Achieved | – | 100.00 | 100.00 | |
Implementation of reliability improvement programmes | An indicator that evaluates the implementation of measures to improve reliability in quantitative and monetary terms | –15 or –5 | % | 100.00 | 100.00 | Achieved | – | 100.00 | 100.00 | |
Functional key performance indicators | ||||||||||
Earnings before interest, taxes, depreciation and amortisation (EBITDA) | Calculated as profit/(loss) before taxes, depreciation, amortisation and interest expense adjusted for impairment/(reversal of impairment) of fixed assets, and revenue from grid connection services | General Director Deputy General Director for Economics and Finance | RUB ‘000 | 9,871,031.00 | 10,422,992.00 | 100.00 % achieved | – | 12,320,085.00 | 14,176,888.00 | |
Achievement and verification of readiness for the heating season | The certificate of readiness for heating season shall be received by the Company in a timely manner by 5 November of the reporting year in accordance with the Rules for Assessing the Readiness of Electric Power Entities for the Heating Season, approved by Resolution No. 543 of the Government of the Russian Federation dated 10 May 2017 | General Director First Deputy General Director — Chief Engineer | number | 1.0 | 1.0 | 100.0 % achieved | – | 1.0 | 1.0 | |
No significant accidents in power grids investigated by Russian Federal Service for Ecological, Technological and Nuclear Supervision (Rostechnadzor) | The calculation of this indicator takes into account accidents in the Company’s power grids classified by the Rostechnadzor commission in accordance with clause 4 of the Rules for Investigation of the Causes of Accidents in the Electric Power Industry (approved by Resolution of the Government of the Russian Federation No. 846 dated 28 October 2009) | First Deputy General Director — Chief Engineer | number | 0.0 | 0.0 | 100.0 % achieved | – | 0.0 | 0.0 | |
Efficiency of innovations | Integrated index of innovation efficiency evaluates the degree of fulfilment of three constituent indicators: R&D expenditure indicator, innovative products procurement indicator, IDP development (update) quality indicator/ IDP implementation indicator | First Deputy General Director — Chief Engineer | % | 98.0 | 100.0 | 100.0 % achieved | – | 98.0 | 98.0 | |
Increase in labour productivity relative to 2022 | Ratio of added value by all types of services to the average annual number of employees. Comparison with the 2022 baseline | Deputy General Deputy General Director for Economics and Finance | % | 15.0 | 62.7 | 100.0 % achieved | – | Х | Х | |
Active staff turnover | Ratio of the total voluntary redundancy under Clause 3 (termination of the employment agreement on the employee’s part) and Clause 5 (transfer of an employee at their request or with their consent to work for another employer, or transfer to an elective job (position)) of Article 77 of the Labour Code of the Russian Federation to the average headcount in the reporting period | Deputy General | % | 6.5 | 6.1 | 100.0 % achieved | – | 6.5 | 6.5 | |
Staffing level | Defined as the ratio of the staff number reduced by the number of vacant positions to the staff number according to the Company’s staffing table at the end of the reporting period | Deputy General | % | 92.0 | 92.0 | 100.0 % achieved | – | 92.0 | 92.0 | |
Compliance with deadlines for grid connection | Complex index assessing the quality level of grid connection, consisting of two components — the quality of grid connection application review and the quality of execution of grid connection contracts | Deputy General Director for Development and Power Grid Connection Deputy General Director for Investments and Capital Construction | relative unit | 1.1 | 1.2 | 91.0 % partially achieved | – | 1.1 | 1.1 | |
Debt/EBITDA | Ratio of long-term and short-term loans and borrowings to EBITDA | Deputy General Director for Economics and Finance | relative unit | 3.0 | 2.4 | 100.0 % achieved | – | 2.2 | 1.7 | |
Efficiency of transition to domestic software | Defined as the share (percentage) of installed Russian (domestic) software in the Company-wide software scope as to the implementation of the in-house plan for transition to all-domestic software approved by the Company’s Board of Directors | Deputy General Director for Digitalisation | % | 88.9 | 93.8 | 100.0 % achieved | – | 90.0 | 92.0 | |
Effectiveness of the transition to the use of domestic radio-electronic products | Defined as the share (percentage) of Russian (domestic) radio-electronic products purchased by the Company in the company-wide scope as to the implementation of the plan to transition to the all-domestic radio-electronic products | First Deputy General Director — Chief Engineer Deputy General Director for Digitalisation Deputy General Director for Investments and Capital Construction | % | 78.0 | 100.0 | 100.0 % achieved | – | 79.0 | 80.0 | |
Overdue receivables for electricity transmission services | Non-exceedance of the actual value of overdue receivables (excluding moratorium debt) at the end of the reporting period above the target value | Deputy General Director for Sale of Services Deputy General Director for Legal and Corporate Governance | RUB ‘000 | 812,081.9 | 295,389.6 | 100.0 % achieved | – | 852,260.8 | 815,097.6 | |
Safeguarding of the organisation’s property | The calculation of the indicator factors in the facts of theft or intentional damage to the main technological equipment of the Company’s categorised substations | Deputy General Director for Security | % | 100.0 | 100.0 | 100.0 % achieved | – | 100.0 | 100.0 | |
Enforcement of insider information protection requirements and maintenance of share listings and corporate governance rating | Complex indicator assessing the level of corporate governance in the Company, consisting of three components such as ensuring the requirements for protection of insider information, maintaining the listing of shares and maintaining the corporate governance rating | Deputy General Director for Legal and Corporate Governance | fulfilled/not fulfilled | fulfilled | fulfilled | 100.0 % Achieved | – | fulfilled | fulfilled | |
Timeliness of the AGM of shareholders/participants of the Compay and its subsidiaries | The calculation of this indicator takes into account instances of failure by the Company and its subsidiaries to comply with the deadlines for holding the annual general meeting of shareholders/participants stipulated by the legislation of the Russian Federation | Deputy General Director for Legal and Corporate Governance | % | 100.0 | 100.0 | 100.0 % achieved | – | 100.0 | 100.0 | |
Share of contracts concluded based on the results of electronic procedures | Calculated as a ratio of the number of electronic procurement procedures, which resulted in the conclusion of agreements associated with spending of funds, to the total number of procurement procedures (competitive and non-competitive), which resulted in the conclusion of such agreements | Deputy General Director for Investments and Capital Construction | % | 70.0 | 70.3 | 100.0 % achieved | – | 74.0 | 78.0 | |
Approval of the accounting (financial) statements of the organisation, as well as accounting record-keeping in the organisation without any comments from the auditor and the auditing commission when conducting audits based on the results of the reporting period | When evaluating the indicator achievement, comments (errors) on the organisation’s annual accounting (financial) statements and accounting records (hereinafter referred to as comments (errors)), as well as the level of materiality established by auditing standards are also taken into account | Chief Accountant — Head of the Department for Financial and Tax Accounting and Reporting | % | 100.0 | 100.0 | 100.0 % achieved | – | 100.0 | 100.0 | |
Effectiveness of the Sale of Additional Services | This indicator assesses the achievement of planned revenue from the sale of additional services from other activities and the achievement of planned gross profit from the sale of additional services from other activities for the reporting period | Deputy General Director for Development and Power Grid Connection | % | 100.0 | 100.0 | 100.0 % achieved | – | 100.0 | 100.0 | |
Level of implementation of production programmes and target-oriented programmes | The indicator evaluates the implementation of the maintenance and repair plan, the work plan for target-oriented programmes | First Deputy General Director — Chief Engineer | % | 100.0 | 100.0 | 100.0 % achieved | – | 100.0 | 100.0 | |
The KPI and FKPI system applied in the Company is interrelated with the size of the variable part of management remuneration (50% of incentive payments for KPI achievement, 50% of incentive payments for FKPI achievement): each of the indicators has a specific weight in the volume of bonuses paid, annual bonuses are paid subject to accomplishment of the respective indicators.