Annual Report 2013

Composition and structure of the staff

The Company had 32 721 employees as of December 31, 2013. The average staffing number was up by 3.9% as compared with 31 091 employees in 2012.

Significant changes in the organizational structure of the branches account for the growing number of the employees in 2013. The major reason for the growth was the transfer the SLR functions to five branches of the Company in the reporting year.

As part of the transfer of the SLR functions, the Company retained the personnel of retail companies, with all the employees being provided with labor contracts presupposing full remuneration and employment conditions similar to the former contracts.

For details on the SLR functions of the Company, please see Operational Results of the Annual report.

AVERAGE NUMBER OF EMPLOYEES IN 2011-2013, people:

A significant increase in the number of employees in Belgorodenergo in September 2013 was due to the newly employed staff of the Contact Center of a service provider receiving and processing telephone calls from electricity consumers of 11 branches of IDGC of Centre.

The staffing level in 2013 was 95% as of the closing of the year. During the last three years, this figure did not deviate by more than one percent, which serves as an indicator of stability.

STAFFING LEVEL IN 2011-2013, %:

EMPLOYEE STRUCTURE BY CATEGORY IN 2011-2013, %:

The category distribution of the staff did not experience any significant change. Workers constitute most of the Company’s personnel, accounting for a 49 % share of the employees, the fact being conditioned by the nature of the activities of industrial companies of the distribution grid complex.

The average age of the employees in 2013 was under 41 (40.8 years). Over the past three years the ratio of different age groups had not changed significantly. Nevertheless, there were fewer employees under 25 years and more working pensioners (a 1 ppt. increase). It is caused by the newly acquired the SLR status of the five branches of IDGC of Centre and the need to keep the staff of the retail companies, which was integrated into the Company’s personnel in full. The average age of the newly employed workers is much higher than the average age of workers of IDGC of Centre.

In 2013 the tendency was retained of hiring young specialists with university degrees or having completed a program of professional retraining. The educational level of the working personnel tends to be increasing as the Company employs more workers with one, two or more university degrees.

Today’s drive towards application of cutting-age technologies in the field demands highly qualified personnel, ongoing professional development and training. The staff of IDGC of Centre has a high level of education.

EMPLOYEE STRUCTURE BY AGE IN 2011-2013, %:

EMPLOYEE STRUCTURE BY LEVEL OF EDUCATION IN 2011-2013, %:

The trend towards increasing human capital of IDGC of Centre is positive. The Company employs mostly young professionals and workers having the power-specialized education and training in the most active working age. The retiring workers and senior citizens quitting the job enjoy guarantee provisions of collective labor agreements and non-state pension schemes.