HR managementThe information in this section is based on the performance results of the Kubanenergo branch of PJSC Rosseti South for December 2025.

Principles and objectives of personnel and social policy

The key objectives of the Company’s personnel and social policy (hereinafter referred to as the Policy), designed to ensure the achievement of the targets of the Development Strategy of the power grid complex:

• To plan the workforce requirements — to ensure availability of accurate information on current and forecast labour demand, both quantitative and qualitative, as necessary and sufficient to achieve the Company’s objectives;
• To recruit necessary skills when needed;
• To improve the performance and increase labour efficiency.

Headcount and personnel breakdown

GRI 2-7, GRI 401-1, GRI 405-1

The growth of the Company’s average headcount is due to the natural movement of staff and the reorganisation of PJSC Rosseti South.

The staffing level of PJSC Rosseti South for 2025 was 89.2%. The staffing level of production personnel is 88.7%. The vast majority (61.3%) of our workforce falls within the age range of 20 to 49, which is the most economically and socially active period of life. PJSC Rosseti South achieves an optimal combination of young, proactive employees and experienced, highly qualified staff, ensuring the continuity of professional knowledge and skills.

Staff training and developmentThe information in this section is based on the performance results of the Kubanenergo branch of PJSC Rosseti South for December 2025.

GRI 404-1, GRI 404-2, GRI 404-3

The key training needs of the Company’s employees are met by the corporate training centres, namely the Interregional Energy Institute of the South and the Energy Institute for Professional Development of PJSC Kubanenergo (following the reorganisation of PJSC Rosseti South through a merger with JSC Rosseti Kuban). Based on these centres, 12,604 man-courses were conducted in 2025, covering vocational training, additional professional education, and further training programmes. This accounts for 95.8% of the total number of training courses offered. For employees of PJSC Rosseti South (excluding the Kubanenergo branch) in 2025, the Interregional Energy Institute of the South gave 11,401 man-courses, which is 95.4% of the total (in 2024 year — 11,743 man-courses (89.5% of the total number of trainees)).

The majority of people trained through corporate training centres are production workers — 87.8% (11,061 people). This includes 87.1% of production workers from PJSC Rosseti South who were trained at the Interregional Energy Institute in the South (9,931 people).

Staff training in our in-house training centres has several advantages:

• Corporate standards and forms of education;
• Alignment of approaches to education with the strategic plans of the Company;
• Rapid response and restructuring of the educational process;
• Use of the Company’s training grounds;
• Competencies of the trained staff tailored to the Company’s requirements.

Personnel training costs amounted to RUB 131,458,110, RUB 121,133,410 (92.1%) of which were personnel training costs at the corporate training centres. In 2024, RUB 110,716,210 were allocated for staff training, RUB 93,814,480 (84.7%) of which were allocated for training at the corporate training centre.

Working with the Company’s talent pools

To meet the Company demand for qualified and efficient staff wherever needed and create conditions for the best fulfilment of its staff potential, PJSC Rosseti South constantly updates and improves its management talent pool.

The Company’s efforts to build a strong talent pool allow it to quickly and effectively meet its needs for trained leaders.

In the third and fourth quarters, based on the Personnel Review Regulations of PJSC Rosseti SouthOrder No. 465 dated 22 July 2025; the new version of the Regulations — Order No. 860 dated 1 December 2025., an assessment of the competencies of specialists was carried out among those included in the talent pool of the Company and its branches. The total number of evaluated employees is 615. In the fourth quarter of 2025, work began on updating individual development plans of talent pool members.

The membership of the talent pool is reviewed and updated annually, as additional recruitment takes place among the Company’s existing specialists to replace those who have been assigned to higher-level positions and those who have left the pool.

In 2025, for the Company and its branches as a whole, the turnover rate of talent pool members was 5.7%, the filling of vacant leadership positions by talent pool members was 31.8%, and the promotion of talent pool members was 5.7%.

Employees who are part of the Company’s management talent pool regularly participate in training programmes and industry-wide national and regional conferences, which allow them to learn about the best practices of power grid companies, study new technologies, and master more efficient working methods.

In 2025, employees of PJSC Rosseti South, including representatives of the talent pools, took part in the annual Best in Profession competition and showcased their research projects in 32 categories. According to the results of the 2025 competition, 16 members of the managerial talent pool and 37 members of the youth talent pool of the Company were among the winners.

Youth policy of the Company

Working with schoolchildren

The aim of early career guidance is to introduce schoolchildren to the profession of energy engineer, encourage them to pursue relevant education and work at PJSC Rosseti South, and identify well-prepared, motivated schoolchildren for referral to targeted training at relevant educational institutions.

In 2025, 1.168 schoolchildren representing the regions of the Company’s presence took part in the All-Russian Olympiad of schoolchildren of Rosseti Group. In 2025, 19 energy study groups (343 people) were established in the regions where the Company operates. In addition to regular school subjects, students engage in an in-depth study of physics. They also have guided tours and demonstrate their knowledge in practical classes taught by our experienced staff.

Every year PJSC Rosseti South holds open days for schoolchildren and students.

Representatives of PJSC Rosseti South took part in the International Exhibition and Forum Russia (VDNKh, Moscow) as part of the industry’s Energy Day. The experts told the students about the activities of Rosseti Group, about youth policy and projects offered by Rosseti Group, and also conducted an interactive class for everyone.

Young specialists from the executive office and all branches of the Company conduct vocational guidance and electrical safety classes in partner schools, children’s camps, Quantoriums and kindergartens. These classes are aimed at preventing electrical injuries and creating a culture of safe operation of electrical appliances.

Working with university and college students

Working with students in relevant fields of study is aimed at providing the Company with qualified specialists who are motivated to work in the energy sector. PJSC Rosseti South has a partnership agreement with 20 universities and 34 colleges.

Student outreach efforts in 2025 were focused on:

1. Organisation of workshop and pre-graduation internships of students of industry-specific schools in the Company In 2025, 1.196 students completed workshop and pre-graduation internships at the Company’s divisions.
2. Organisation of targeted training for specialists in fields relevant to the Company with a view to their subsequent employment by the Company. A total of 317 people are studying at partner universities under the targeted referral of PJSC Rosseti South, including 91 students who got enrolled under targeted agreements in 2025. Employer-sponsored students are offered support measures, such as corporate scholarship of PJSC Rosseti South.
3. Student brigades at the Company’s facilities. In the reporting year, during the summer labour season, 207 students from 12 partner universities and 5 partner colleges worked at PJSC Rosseti South’s facilities.
4. Young Worker Project. Under the project, the Company employs third- and fourth-year students from universities and vocational colleges who are enrolled in full-time programmes with individual study schedules. Such employees are paid a supporting scholarship in the amount of RUB 3,000 per month. In 2025, the Company hired 208 people.

Working with young specialists

Recruiting, onboarding and developing young talent are the integral parts of the youth policy of the Company. Young specialists participate in various forums, conferences and competitions. To engage young people in the Company’s initiatives, we are actively working with its talent pool, implementing targeted programmes for development and social assistance, with a focus on the Company’s youth.

PJSC Rosseti South’s specialists act as experts at events held for students and schoolchildren, including the qualification stage of the International Engineering Case Solving Championship among university students and the regional stage of the Big Challenges All-Russian Competition of Scientific and Technological Projects.

Social policy

GRI 2-23, 2-24, 2-30, 403-6

Collective bargaining agreement

Due to the expiration of the collective bargaining agreement of PJSC Rosseti South in 2025, a bilateral commission was organised to extend the collective bargaining agreement of PJSC Rosseti South for a new term. Collective negotiations were held in a friendly and productive manner. As a result, a consensus was reached to enhance the compensation for employees and veterans of the Company. The new collective bargaining agreement of PJSC Rosseti South entered into force on 1 January 2026 and will be valid until the end of 2028. During all this time, the parties to the social partnership will negotiate on the further development of social and labour relations in the Company.

The collective bargaining agreement of PJSC Rosseti South is the result of effective cooperation between the parties to the social partnership to recognise the social and economic rights and guarantees of the Company’s employees.

In accordance with the collective bargaining agreement, the Company’s employees receive financial assistance in connection with childbirth, marriage registration, burial of close relatives, retirement, difficult financial situation (emergency case), status of families with many children, and in case of death of an employee as well. There is also compensation for childcare in pre-schools, etc.

PJSC Rosseti South supports employees who are on active service (SMO). In 2025, one-time payments were made to the mobilised employees and the families of the deceased mobilised employees on Defender of the Fatherland Day, Victory Day and Energy day.

Taking care of employees’ health

The Company ensures that all its employees receive top-notch medical attention promptly by offering them voluntary personal insurance policies. These policies encompass both voluntary medical insurance and voluntary accident and illness insurance.

PJSC Rosseti South has Regulations on the organisation of recreation and health promotion for employees, veterans of PJSC Rosseti South and their family members, pursuant to which a health-improving rest was organised for 1,317 employees and their family members at JSC Energetik Recreation Centre and JSC Energetik Health Resort and for 1,007 children of employees at children’s health camps. In 2025, 90 employees working with harmful and/or hazardous production factors, pre-retirees enjoyed their rest in the sanatoriums of the Krasnodar Territory and the Caucasian Mineral Waters, and 267 employees of the Company utilised preferential vouchers to get rest health resorts.

Pension schemes

In order to improve the social security of its employees and provide non-financial incentives, the Company has developed non-governmental pension schemes designed to ensure a decent standard of living for employees during retirement. These plans aim to create conditions that facilitate the effective resolution of personnel issues such as staff recruitment, retention, and motivation.

Housing improvement

In order to attract and retain its talent, the Company put in place the Regulations on corporate support for employees of PJSC Rosseti South branches. The right to receive such corporate support for improving housing conditions is given to branch employees of key electrical engineering specialities, young professionals aged under and including 45 years. In 2025, due to the introduction of new regulations (Order No. 855, dated 1 December 2025), the age restrictions for employees were lifted, and the list of key electrical engineering positions for each branch was expanded. Electric fitters, electricians, foremen, and dispatchers of the branch’s production departments were reimbursed for the interest on their loans (mortgages). In total, more than 800 employees of the Company utilised this benefit, for a total amount of RUB 94,894,000.

PJSC Rosseti South had a regulation on the procedure for reimbursement of housing leasing (subleasing) costs to employees of PJSC Rosseti South branches (Order No. 814 dated 28 December 2024, amended by Order No. 205 dated 1 April 2025) (hereinafter referred to as the regulation). The regulation applied to newly hired/transferred employees of power grid regions and production departments in key electrical engineering specialties who were employed and did not own housing at their workplace. On 1 December 2025, the regulation (Order No. 859 dated 1 December 2025) was adopted to replace the current one, which applies to newly hired/transferred branch employees. In total, 438 people used such a reimbursement in 2025 for a total amount of RUB 81,474,000.

The priority areas are stable social and labour relations of co-workers facilitated by effective cooperation with trade union organisations. Complying with the interests of the parties to social partnership, ensuring and maintaining social stability contribute to improving labour productivity and competitiveness of the Company.