Quarterly report public Joint Stock Company rosseti issuer Code: 55385-E

3.1.5. Taxpayer Identification Number

7728662669

3.1.6. Branches and Representative Offices of the Issuer

Branches and representative offices of the issuer:

Name: Technical Supervision Center, a branch of Public Joint Stock Company ROSSETI (TSC, a branch of PJSC ROSSETI)

Location: Russia, 107996, Moscow, Ulansky pereulok, 26

Date of opening: September 25, 2013

Head of the branch (representative office):

Full name: Vitaly Pavlovich Bobrov

Term of the power of attorney: valid until January 30, 2017

Name: Representative Office of Public Joint Stock Company ROSSETI in the Crimean Federal District

Location: Russia, 295011, Simferopol, ul. Samokisha, 16

Date of opening: April 23, 2014

Head of the branch (representative office):

Full name: Sergey Nikolayevich Frolov

Term of the power of attorney: valid until July 27, 2016

3.2. Core Business Activities of the Issuer

3.2.1. Core Economic Activities of the Issuer

Code of the issuer’s type of core economic activity

OKVED Codes

74.15.2

OKVED Codes
29.24.9
40.10.1
40.10.11
40.10.2
40.10.3
40.10.5
40.30.11
40.30.2
40.30.3
40.30.5
45.21.53
51.56.4
63.40
64.20
65.23
73.10
74.14
80.30.3

3.2.2. Core Business Activities of the Issuer

Types of business activities (types of activities, types of products (work, services)) accounting for at least 10 percent of the issuer’s sales (revenue) in the reporting period

Unit of measurement: rubles in thousands

Type of business activity: income from interests in other entities

Indicator Description	2014	2015
Revenues (sales) from this type of business activity, rubles in thousands	3,064,127	3,336,502
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	49.1	51.2

Indicator Description	3 months of 2015	3 months of 2016
Revenues (sales) from this type of business activity, rubles in thousands	0	0
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	0	0

Changes in revenues (sales) of the issuer from core business activities by 10 percent or more year-on-year and reasons for such changes:

Income from interests in other entities in 2015 increased by 9% compared with 2014.

Type of business activity: services in relation to organizing the operation of and to developing electric grid facilities

Indicator Description	2014	2015
Revenues (sales) from this type of business activity, rubles in thousands	2,806,502	2,806,502
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	45	43.1

Indicator Description	3 months of 2015	3 months of 2016
Revenues (sales) from this type of business activity, rubles in thousands	438,099	701,626
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	85.1	88.2

Changes in revenues (sales) of the issuer from core business activities by 10 percent or more year-on-year and reasons for such changes:

Revenues from services in relation to organizing the operation of and to developing electric grid facilities in the 3 months of 2016 increased by 263,527 thousand rubles (or 60%) compared with the corresponding period in 2015 due to entering into services agreements in the 2nd half of 2015.

Type of business activity: technical supervision services

Indicator Description	2014	2015
Revenues (sales) from this type of business activity, rubles in thousands	362,240	368,709
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	5.8	5.7

Indicator Description	3 months of 2015	3 months of 2016
Revenues (sales) from this type of business activity, rubles in thousands	76,521	92,477
Share of revenues (sales) from this type of business activity in total revenues (sales) of the issuer, %	14.9	11.6

Changes in revenues (sales) of the issuer from core business activities by 10 percent or more year-on-year and reasons for such changes:

Revenues from technical supervision services in 2015 increased by 2% compared with 2014.

Revenues from technical supervision services in the 3 months of 2016 increased by 15,956 thousand rubles (or 21%) compared with the corresponding period in 2015 due to entering into services agreements in the 2nd half of 2015.

General breakdown of the issuer’s production costs

Indicator Description	2014	2015
Raw materials and materials, %	0.7	0.7
Component parts and intermediate products purchased, %	0	0
Production-related work and services performed by outside organizations, %	16.1	19.9
Fuel, %	0	0
Power, %	0	0
Labor costs, %	58.1	57.8
Loan interest, %	0	0
Rent, %	9.5	7.7
Allocations for social needs, %	8.4	10.2
Fixed asset depreciation, %	0.5	0.6
Taxes included in production costs, %	0.02	0.01
Other costs, %
intangible asset amortization, %	0.03	0.2
remuneration for improvement suggestions, %	0	0
compulsory insurance payments, %	0.1	0.5
official entertainment expenses, %	0.2	0.1
other (to be itemized), %
travel expenses	6.2	2.3
Total: Expenses related to production and sale of products (work, services) (production costs), %	100	100
For reference: Revenue from sale of products (work, services) as a percentage of production costs	162	150

Indicator Description	3 months of 2015	3 months of 2016
Raw materials and materials, %	0.5	0.4
Component parts and intermediate products purchased, %	0	0
Production-related work and services performed by outside organizations, %	12.3	16
Fuel, %	0	0
Power, %	0	0
Labor costs, %	59.5	55
Loan interest, %	0	0
Rent, %	8.9	9.5
Allocations for social needs, %	15.4	14.6
Fixed asset depreciation, %	0.6	1.3
Taxes included in production costs, %	0.01	0.01
Other costs, %
intangible asset amortization, %	0.2	0.3
remuneration for improvement suggestions, %	0	0
compulsory insurance payments, %	0.2	0.1
official entertainment expenses, %	0.1	0.1
other (to be itemized), %
travel expenses	2.3	2.7
Total: Expenses related to production and sale of products (work, services) (production costs), %	100	100
For reference: Revenue from sale of products (work, services) as a percentage of production costs	61.6	105.9

Significant new types of products (work, services) offered by the issuer in the market for its core business to the extent that they correspond to public information about such products (work, services). Development status of such products (work, services).

No significant new types of products (work, services)

Standards (rules) applicable to the preparation of the issuer’s accounting (financial) statements and calculations reflected in this subparagraph:

1. 
   Regulations for Accounting 1/2008 “Accounting Policy of Organizations” approved by Order of the Ministry of Finance of the Russian Federation No. 106n of October 6, 2008;
   
2. 
   Regulations for Accounting 9/99 “Income of Organizations” approved by Order of the Ministry of Finance of the Russian Federation No. 32n of May 6, 1999;
   
3. 
   Regulations for Accounting 10/99 “Expense of Organizations” approved by Order of the Ministry of Finance of the Russian Federation No. 33n of May 6, 1999;
   
4. 
   Regulations for Accounting 4/99 “Accounting Statements of Organizations” approved by Order of the Ministry of Finance of the Russian Federation No. 43n of July 6, 1999.
   

In accordance with the Company’s accounting policy, income from ordinary activities is:

- revenues from interests in other entities;

- revenues from services in relation to organizing the operation of and to developing electric grid facilities;

- revenues from the fee-based provision of assets for temporary use (temporary possession and use) under lease agreements (lease payments);

- revenues from technical supervision services.