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

4.4. Intangible Assets of the Issuer

As of December 31, 2015

Unit of measurement: rubles in thousands

Group of Intangible Assets	Initial (Replacement) Value	Amount of Accumulated Depreciation
www.rosseti.ru domain name	1,600
Exclusive right to use the base of the Customer Relations Portal	14,742	3,931
Avariynost software	657	307
PJSC ROSSETI trademark	3,021
Exclusive right to use the system of remote access to PJSC ROSSETI corporate resources	4,531	755
Exclusive right to use the automated system of electronic procurement procedures (Electronic Trading Floor)	18,998	3,483
TOTAL	43,549	8,476

Accounting standards (rules) in accordance with which the issuer provides information about its intangible assets:

Regulations for Accounting 14/2007 approved by Order of the Ministry of Finance of the Russian Federation No. 153n of December 27, 2007.

Reporting date: December 31, 2015

As of March 31, 2016

Unit of measurement: rubles in thousands

Group of Intangible Assets	Initial (Replacement) Value	Amount of Accumulated Depreciation
www.rosseti.ru domain name	1,600
Exclusive right to use the base of the Customer Relations Portal	14,742	4,668
Avariynost software	657	339
PJSC ROSSETI trademark	3,021
Exclusive right to use the system of remote access to PJSC ROSSETI corporate resources	4,531	982
Exclusive right to use the automated system of electronic procurement procedures (Electronic Trading Floor)	18,998	4,433
TOTAL	43,549	10,422

Accounting standards (rules) in accordance with which the issuer provides information about its intangible assets:

Regulations for Accounting 14/2007 approved by Order of the Ministry of Finance of the Russian Federation No. 153n of December 27, 2007.

Reporting date: March 31, 2016

4.5. Information Concerning the Policy and Expenses Incurred by the Issuer in the Area of Scientific and Technological Development, in Respect of Licenses and Patents, New Developments and Research

The Company operates a management system for innovation and scientific and technical development at PJSC ROSSETI and PJSC ROSSETI’s SDCs. PJSC ROSSETI operates a system for introducing innovative solutions into the electric grid sector, improves R&D management system instruments, builds up a management system for intellectual products, and creates regulatory and technical support for innovative development.

In the reporting period, the Company developed the concept of the Center for Technology Monitoring and Transfer and the concept of the R&D Foundation, approved the formats of collecting and evaluating proposals for the Register of Innovative Solutions, established the Innovation Commission of PJSC ROSSETI, created the Register of Innovative Solutions, updated the list of subjects recommended for implementation under the R&D Program, developed the R&D module in the automated grid reporting system, approved the Regulations for Innovating Activities of PJSC ROSSETI and Subsidiaries and Dependent Companies of PJSC ROSSETI, established the target volume of purchased innovative solutions, drew up the Guidelines for Formulating and Adjusting Innovative Development Programs of Subsidiaries and Dependent Companies of PJSC ROSSETI, and drafted the Innovative Development Program of PJSC ROSSETI for 2016–2020.

Within the management system, R&D efforts are financed at the level of PJSC ROSSETI’s SDCs. Consequently, the rights to intellectual property obtained as a result of R&D are also secured and maintained by PJSC ROSSETI’s SDCs.

The Company does not believe that any material risks may occur in relation to the possible expiration of patents or trademark licenses.

Detailed information concerning the R&D Program of PJSC ROSSETI and PJSC ROSSETI’s SDCs is posted on the Company’s website at http://www.rosseti.ru/investment/niokr/.

Detailed information concerning the introduction of innovative solutions into the electric grid sector is posted on the Company’s website at http://www.rosseti.ru/investment/introdution_solutions/.