Annual Report 2013

Social Policy

IDGC of Centre strives to invest a lot of effort in providing social support for employees, their families, and the retired personnel, promoting a healthy lifestyle and developing corporate culture. The Company is committed to maintaining and improving health of their employees, it organizes sports and recreation events.

The Company conducts its social policy through the development of social partnerships scheme based on the Collective Labor Agreement of IDGC of Centre.

The employees’ interests are represented by the IDGC of Centre Trade union, which encompasses the trade unions of the 11 branches.

The unified Collective Labor Agreement of IDGC of Centre regulates labor relations and outlines the rights and responsibilities of parties to the social partnership, payment rates and other labor conditions, alongside with social protection and benefits for the employees. The Company provides many of the benefits and compensation packages in cooperation with the Trade union.

Under the Collective Labor Agreement and corporate Insurance Program, all Company employees receive health insurance according to the voluntary health insurance programs (hereinafter – VHI), alongside with accident and sickness insurance.

Insurance premium under VHI contracts exceeded 150 million rubles in 2013. The Company also helped its employees to get policies of obligatory health insurance.

Under the VHI contracts all the insured employees were offered a wide range of free medical services, including various kinds of medical checkups, ambulatory care, and hospital treatment.

Besides, the employees were vaccinated against the flu in 2013.

COSTS OF VOLUNTARY MEDICAL INSURANCE OF THE EMPLOYEES IN 2011-2013, mln RUB:

IDGC of Centre supports not only its personnel, but also its retirees. In 2013 expenses on financial assistance to the retired personnel and the disabled personnel amounted to 52,741 thousand rubles.

In order to support the Company’s employees who are taking their well-deserved rest, and to secure the corporate pension system, the Company offers a Private Pension Scheme to its employees, reaffirmed annually by the Board of Directors.

The Private Pension Scheme (hereinafter – PPS) is implemented under the agreements concluded with the industrial Power Industry Private Pension Fund on parity and corporate conditions.

The PPS facilitates the resolution of HR issues associated with attracting, retaining and motivating staff to work effectively, and creates favorable conditions for making retirement savings.

The PPS scheme for the IDGC of Centre employees is implemented through the Power Industry Private Pension Fund.

EXPENSES FOR IMPROVING THE EMPLOYEES’ LIVING CONDITIONS IN 2011-2013, mln RUB:

Each branch of IDGC of Centre has the Veterans’ council that serves as a link between retirees and branch management, helps to identify retirees in dire need, and cooperates with the branch management to organize corporate events.

The Company has the Regulation on Corporate Assistance and Support adopted by the Board of Directors, which is aimed at improving the employees’ living conditions. This Regulation is designed to provide social security for employees, to retain qualified specialists and to attract young highly-qualified professionals; it aims to provide incentives for employees to increase their productivity. Apart from that, the Company’s branches have housing commissions. In 2013, IDGC of Centre compensated for the rent of accommodation for young and highly skilled workers and provided part of the mortgage interest for employees engaged in mortgage contracts.

IDGC of Centre follows a system of incentives for achieving outstanding results, conducting innovation projects, and for the diligent loyalty to the Company over a long period of time.

In 2013 6 employees of the Company received national awards, another 129 received awards from the Ministry of Energy, yet another 185 received corporate awards from JSC Russian Grids; 55 employees were awarded by the All-Russian Association of Employers of the Power Sector, and 580 employees were awarded by IDGC of Centre. One company employee was awarded by placing his name on the JSC IDGC Holding honor board, and 15 more were listed in the Honor Book of the Company.

The Company pays special attention to sports and recreation activities. Sports policies of IDGC of Centre are welcomed by the employees, are covered in the media and aim at preserving the Company’s favourable image.

Thus, the branch employees regularly take part in Summer and Winter Games, and in the so-called “Merry Ready- Steady-Go” Games (“Veselyie Starty”) to engage the workers’ families in sports activities. In April 2013 the team of IDGC of Centre participated in the first Winter Games for the employees of the national power grid, which were held in Sochi in early April, and came first out of 24 teams.

In 2013 the Strategic teambuilding in IDGC of Centre 2013 corporate training was held in the recreation and holiday center “Klyazma” belonging to the Administrative Department of the President of the Russian Federation to improve the efficiency of business communication at various levels, to foster and strengthen corporate culture, to create an effective working team, to develop sports and recreation activities and to cherish sports traditions of the Company. The teams from the branches of the Company participated in various business games and competed in seven sports to determine the strongest team of the Company.

In order to develop corporate sports, promote teambuilding, and to give employees of the oil-and-energy sector an opportunity for informal socializing, the Company’s employees participated in the following events: the Fourth Energy Cup mini-football competition in September 2013, the Energy Cup annual volleyball competition in November 2013. The best chess players of the Company participated in the Third Open Chess Tournament in the power sector held to commemorate M. Botvinnik.

The Company also provides its employees with trips to spa resorts, recreation centers, children’s camps and children’s resorts. The company strives to make the best of the expertise and intellectual potential of the retirees in the production and encourages tutoring; it organizes cultural and social events involving the former employees.

The Company and the Councils of Veterans organize various festivities, celebrations of holidays and anniversaries and festal dinners. Particularly important is the tradition of participating in the festivities dedicated to the Victory Day on May 9, such as the Victory Banner Relay Race, held in 11 branches of IDGC of Centre. During the Woodland Power event, retirees from all branches planted trees and took care of the forests planted in their areas along with young employees.