Address of the CEO

Dear shareholders, investors and colleagues!

In 2018, we systematically continued to implement our corporate strategy in order to strengthen the Company's position in the thermal power market.

Due to the circumstances we are all aware of, the past year turned out to be very challenging. But I am pleased to announce that despite the difficult market conditions due to overcapacity in the power system and intense competition, Unipro PJSC still remains one of the most stable companies in Russia’s electricity sector.

Even when faced with serious challenges, we have maintained our commitment to high standards of corporate governance and social responsibility.

In 2018 we continued to invest in our own development. The Company took numerous measures to retool and modernise operating capacities. All scheduled repairs to the power units have been completed. In May 2018, the major inspection of equipment at combined-cycle Power Unit No. 7 at Surgutskaya GRES-2 was completed, that was carried out by internal service staff under the supervision of the manufacturer General Electric.

The repair and refurbishment of Power Unit No. 3 at Berezovskaya GRES is in its final stage.

The Company continues to pay great attention to issues of labour rights and the health and safety of its employees as well as staff from contracting organisations. There were no serious accidents in 2018, which is a great achievement for us. This is the result of the systematic work being carried out at Unipro PJSC. We continue to implement a three-year strategy in the area of health and safety in the workplace and have focused on reducing any high risks of injury which staff is exposed to, as well as developing leadership in occupational safety. Once again, we confirmed the high standards of our Health and Occupational Safety Management System, having successfully passed a supervisory audit on compliance with OHSAS 18001-2007, and have fulfilled all the planned measures of the Labour Safety Plan for 2018.

Environment protection is one of the priorities at Unipro PJSC in the area of sustainable development. In 2018, in accordance with the requirements of Russian legislation, the Company began implementing large-scale projects to create an automatic system to continuously monitor emissions at Berezovskaya GRES and began introducing technology to protect fish at Surgutskaya GRES-2 and Yaivinskaya GRES, and development also got underway for a project to restore two sections of the sludge disposal site at Surgutskaya GRES-2. Waste sorting and recycling is carried out at all stations. Unipro PJSC successfully completed the second compliance audit of the Environmental Management System and obtained a certificate of its compliance with the requirements of the updated version of ISO 14001:2015 international standard.

Above all, Unipro PJSC values its employees. The Company pays great attention to staff development and the creation of a reserve of high-potential employees. We actively promote a positive image of the employer both within the Company and in the labour market.

The reporting year was marked by the introduction of a number of corporate social responsibility projects, many of which are unique to our Company

Thus, in 2018, a new modern park was created thanks to the financial support from our Company, which is located on the side of Karaulnaya Mountain within a short distance from Paraskeva Pyatnitsa Chapel — Krasnoyarsk’s main landmark. In 2018, Unipro PJSC partnered with the Russian National Theatre Award “Golden Mask”. Our help has made it possible to bring two Moscow performances to the city of Surgut. We implement educational and cultural projects on a continuous basis. The Company allocates funds to improve health care and support sports in the regions where it operates.

Two plants celebrated their anniversaries in 2018: Smolenskaya GRES celebrated 40 years and Yaivinskaya GRES celebrated 55 years. Each plant has its own history, but all these years they have successfully carried out their main goal of supplying electric power and heat to consumers. I would like to thank the branch teams for the quality of the work they have put in.

This year will be very important and intense for us. Unipro PJSC took part in a competitive selection of modernisation projects for thermal power plants. The final list of projects is to be approved by the Russian Government. We will have to complete the repair and refurbishment at Power Unit No. 3 of Berezovskaya GRES. And while we are busy with all of this, we will still be responsible for fulfilling our main daily task — to provide an uninterrupted supply of electric power for Russia. This will require maximum efficiency from each of us and we will need to pool our efforts. But I am sure that a well-thought-out development strategy, an efficient management system at all levels of the Company, and the coordinated work of employees will enable us to achieve high results. And thanks to our common efforts, we will hold up our title as the most efficient company of the thermal power generation sector in the Russian Federation.

I would also like to express my gratitude towards our shareholders for their trust in us. We will make every effort to meet your expectations!

Best regards,
Maxim Gennadyevich Shirokov,
Chief Executive Officer,
Unipro PJSC