Appendix 1.

1. In the reporting period, a message on holding of a general meeting of shareholders is posted (published) on the company’s website at least 30 days before the date of the general meeting, unless a longer period is stipulated by law.
2. The message on the meeting indicates the place of the meeting and the documents necessary for admission to the premises.
3. Shareholders were provided with access to the information about the person proposing the agenda items and nominating candidates to the board of directors and the auditing commission (in case the commission shall be formed as per the company’s charter)

1. In the reporting period, shareholders were given an opportunity to ask questions to members of the executive bodies and the board of directors of the company when preparing and in the course of the general meeting.
2. The position of the board of directors (including dissenting opinions incorporated in the minutes, if any) on each agenda item of the general meetings held in the reporting period was included in the files of the general meeting of shareholders.
3. The company granted eligible shareholders access to the list of persons entitled to participate in the general meeting from the date of its receipt by the company, in all cases of holding of general meetings in the reporting period

1. The company’s charter provides for a period for shareholders to propose agenda items of the annual general meeting within at least 60 days from the end of the relevant calendar year.
2. In the reporting period, the company did not refuse to accept proposals related to the agenda items or candidates to the company bodies due to misprints and other insignificant shortcomings in the shareholder’s proposal

1. The company’s charter provides for an electronic ballot to be filled in on the website given in the notice on the general meeting of shareholders

1. Sufficient time was provided for reports on the agenda items and discussion of those items at general meetings of shareholders held in the format of face-to-face meetings (joint attendance of shareholders) in the reporting period. Shareholders were given the opportunity to express their opinion and ask questions on the agenda.
2. The company invited nominees to the management and control bodies and has taken all necessary steps to ensure their participation in the general meeting of shareholders, at which their nominations were put to a vote. The nominees to the management and control bodies of the company present at the general meeting were available to answer questions from shareholders.
3. The sole executive body, the accounting officer, the chairperson or other members of the board’s audit committee were available to answer questions from shareholders at general meetings of shareholders held during the reporting period.
4. In the reporting period, the company used telecommunication means for remote access of shareholders to participate in general meetings or the board of directors took a reasoned decision that it was not necessary (possible) to use such means in the reporting period

Criteria 2 and 4 are not complied with.

The Company did not comply with Criterion 2 because the annual General Meeting of Shareholders, which elected the Board of Directors, was held in the form of absentee voting.

The Company’s notification of the General Meeting of Shareholders lists the phone number for shareholders to call and the email address where they can send questions to the Company’s management and Board of Directors through the Corporate Secretary. The Corporate Secretary is responsible to forward any shareholder questions to the appropriate parties and to make sure that as much feedback is obtained as possible.

In the materials for the General Meeting of Shareholders, the Company also provides shareholders with comprehensive information on the candidates for the Company’s Board of Directors, including information on their professional experience, place of employment at the time of nomination, the people who nominated them, and whether or not they agree to be elected to the Board, and whether or not they meet the independence criteria.

The Company is committed to adhering to all of the Code’s recommendations and, in the event that a General Meeting of Shareholders is called at which the election of the Board of Directors is to be decided, will take all reasonable steps to ensure that candidates for the Board of Directors are present at the General Meeting of Shareholders in the form of joint attendance.

The Company intends to return to holding annual general meetings of shareholders in the form of joint attendance in 2023.

Criteria 4 is not complied with, since the Company did not use telecommunications to provide remote access for shareholders to participate in general meetings of shareholders during the reporting period. This is because the Company has not established technical requirements for setting up such access and has not approved the necessary paperwork.

The Company’s Board of Directors will consider using telecommunications to enable shareholders to participate in general meetings remotely when making decisions in 2023 regarding the planning and holding of shareholder general meetings, and together with the Company’s management, will make a reasoned decision on the use or non-use of such means.

1. The dividend policy of the company was approved by the board of directors and disclosed on the company’s website.
2. If the dividend policy of the company, making up the consolidated financial statements, uses the company’s reporting indicators to determine the amount of dividends, the relevant provisions of the dividend policy take into account consolidated financial reporting indicators.
3. Justification of the proposed distribution of net profit, including payment of dividends and the company’s own needs, and assessment of its compliance with the dividend policy, explanations and economic justification of the need to direct a certain part of net profit to its own needs in the reporting period were included in the materials for the general meeting of shareholders, the agenda of which includes the item of profit distribution (including the payment (declaration) of dividends)

Criterion 3 is not complied with.

A justification for the proposed distribution of net profit, including for the payout of dividends and the Company’s own needs, and an evaluation of its compliance with the Company’s dividend policy were not included in the materials for the General Meeting of Shareholders during the reporting period.

The Board of Directors received this justification from the management of the Company, which took the Company’s quarterly performance into consideration.

Due to the high level of geopolitical and economic uncertainty in 2022, management and the Board of Directors of the Company decided not to disclose the financial results of the Company and, as a result, did not give shareholders any information on how to calculate and determine whether distributing net profits is economically feasible.

The Company is committed to complying with the recommendations of the Code and, as the full disclosure regime is resumed, plans to include this information in materials for general meetings of shareholders.

1. The company’s provisions on the dividend policy, in addition to the restrictions imposed by law, define the financial/economic circumstances where the company should not decide to pay dividends

1. In the reporting period, the company took no actions resulting in an adverse impact on the dividend rights of existing shareholders

1. In the reporting period, there were no other ways for the persons controlling the company to receive profit (income) at the company’s expense other than dividends (e.g., through transfer pricing, unjustified provision of services by the controlling person at inflated prices, through internal loans substituting dividends to the controlling person and (or) its controlled persons)

1. In the reporting period, the company’s controlling persons have not abused their rights in relation to the company’s shareholders, there were no conflicts between the company’s controlling persons and the company’s shareholders and, if any, the board of directors gave them due consideration

1. Quasi-treasury shares were absent or did not participate in voting in the reporting period

1. The technology and terms of service used by the company’s registrar meet the needs of the company and its shareholders and ensure that shareholder rights are recorded and exercised in the most efficient way

1. The board of directors has determined in the charter the powers of appointment, removal, dismissal and determining the terms and conditions of contracts in relation to members of the executive bodies.
2. In the reporting period, the nominations (appointments, human resources) committee considered the suitability of professional qualifications, skills and experience of the members of the executive bodies to the current and anticipated needs of the company as dictated by the approved strategy of the company.
3. In the reporting period, the board of directors reviewed the report(s) of the sole executive body and the collegial executive body (if any) on the implementation of the company’s strategy

1. In the reporting period, the issues related to the implementation and updating of the strategy, the approval of the financial and economic plan (budget design) of the company, as well as the criteria and indicators (including intermediate ones) of the implementation of the company’s strategy and business plans were reviewed at meetings of the board of directors

1. The principles and approaches to the organisation of the risk management and internal control system in the company are defined by the board of directors and included in the company’s internal documents defining the risk management and internal control policy.
2. In the reporting period, the board of directors approved (revised) an acceptable amount of risks (risk appetite) of the company or the audit committee and (or) risk committee (if any) considered the viability of submitting the issue of revising the risk appetite of the company for the consideration of the board of directors

Criterion 2 is not complied with.

The Company’s Board of Directors has not set an acceptable amount of risk (risk appetite) for the Company.

It is currently challenging for the Company to develop and maintain an adequate risk appetite due to the numerous uncertainties, many new projects, and considerable investment project costs.

Even yet, management continually keeps an eye on the budget and sporadically updates the Board of Directors and the Audit Committee of the Board of Directors on the progress of investment projects and budget execution.

The Company is committed to implementing the recommendations of the Code and will consider discussing with members of the Audit Committee and the Board the need to determine the Company’s risk appetite in the new reporting period.

1. The company developed, approved and implemented a policy(ies) on remuneration and (or) reimbursement of expenses (compensation) to members of the board of directors, the executive bodies and other key employees of the company, approved by the board of directors.
2. In the reporting period, the issues related to the mentioned policy(ies) were reviewed by the board of directors

1. The board of directors plays the key role in preventing, identifying and resolving internal conflicts.
2. The company developed a system of identification of transactions involving conflicts of interest and a system of measures aimed at solution of such conflicts

1. The company’s internal documents define the persons responsible for implementing the information policy

1. In the reporting period, the board of directors reviewed the results of a self-assessment and/or an external evaluation of the company’s corporate governance practices

1. The annual report of the company for the reporting period includes information on the attendance of board and committee meetings by each board member.
2. The annual report contains the information on the main results of the performance assessment (self-assessment) of the board of directors carried out in the reporting period

1. The company has a transparent procedure in place to ensure that shareholders are able to present inquiries to the chairperson and receive feedback (and, where applicable, to and from the senior independent director)

There is no formalised procedure for shareholders to approach the Chair of the Board of Directors.

In practice, this procedure is performed by the Corporate Secretary or the person responsible for shareholder and investor relations. Shareholders should send their request to the Corporate Secretary by email to the Company’s official website. The Corporate Secretary is then to be required to convey the message to the Chair of the Board of Directors’ office and make sure the reply to the message is received.

The Company will seek to formalise its shareholder relations process in the following reporting period to guarantee a clear process for submitting messages to the Chair of the Board of Directors and communicating this process to shareholders.

1. In the reporting period, the board of directors (or its nomination committee) assessed candidates for the board of directors from the standpoint of the necessary experience, knowledge, business reputation, absence of conflict of interest, etc.

1. In all cases when a general meeting of shareholders was held in the reporting period and its agenda included items concerning the election of the board of directors, the company presented shareholders with biographical data of all candidates for members of the board of directors, the results of assessment of the candidates on their professional expertise, experience and skills regarding current and expected needs of the company by the board of directors (or its nomination committee), as well as the information on the compliance of the candidate with the independence criteria in accordance with recommendations 102–107 of the Code and the acquired written consent of candidates for election to the board of directors

1. In the reporting period, the board of directors analysed its own needs in terms of professional qualifications, experience and skills and identified the competencies required by the board of directors in the short and long term

In the reporting period, the board of directors did not analyse its own needs in terms of professional qualifications, experience and skills and did not identify the competencies required by the board of directors in the short and long term

In 2021, more than half of the Board of Directors were renewed. The selection of new candidates for the Board of Directors was based on the Company’s need for certain qualifications, experience, skills and competencies.

For the time being, the shareholders, the Board of Directors and the management of the Company believe that the Board of Directors works effectively for the benefit of the Company, given the shareholders’ interest in the economic stability and development of the Company, and does not seek to fundamentally renew the Board of Directors again.

The effectiveness of the Board of Directors is confirmed, among other things, by the results of the self-assessment of the Board of Directors, its Committees and members of the Board of Directors in 2021 and 2022.

The Company is committed to implementing the recommendations of the Code and will encourage Board members in future reporting periods to review their needs in terms of professional qualifications, experience and skills and identify the competencies required by the Board in the short and medium term.

1. In the reporting period, the board of directors considered whether the number of members of the board of directors meets the needs of the company and the interests of the shareholders

An independent director is a person who has sufficient professionalism, experience and autonomy to form his or her own position and who is able to judge objectively and good faith judgement, independent of the influence of the сompany’s executive bodies, individual shareholder groups or other stakeholders.

It should be borne in mind that in normal conditions, a candidate (an elected member of the board of directors) related to the society, a substantial shareholder, substantial contractor or competitor of the company or related to the state cannot be considered independent

1. In the reporting period, all independent members of the board of directors met all independence criteria specified in recommendations 102–107 of the Code or were acknowledged independent by resolution of the board of directors

1. In the reporting period, the board of directors (or the nomination committee of the board of directors) drew up an opinion on the independence of each candidate to the board of directors and presented a relevant conclusion to shareholders.
2. During the reporting period, the board of directors (or the nomination committee of the board of directors) reviewed the independence of the current board members at least once (following their election).
3. The company developed procedures to determine the necessary actions of a member of the board of directors in the event that he or she ceases to be independent, including the obligations to inform the board of directors thereof in a timely manner

1. Independent directors make up at least one third of the composition of the board of directors

1. In the reporting period, independent directors (who had no conflict of interest) performed a preliminary assessment of significant corporate actions related to a possible conflict of interest and presented the results of such assessment to the board of directors

1. The chairperson of the board of directors is an independent director or a senior independent director is appointed from the number of independent directors.
2. The role, rights and obligations of the chairperson of the board of directors (and a senior independent director where applicable) are duly defined in the company’s internal documents

Criterion 1 is not complied with.

As at the reporting date, the Board of Directors of the Company had not found it possible to elect an independent non-executive director as Chair or to appoint a Senior independent non-executive director.

The Chair of the Board of Directors may not always be an independent member of the Board of Directors.

In accordance with the Company’s internal documents and established practice, the Chair of the Board of Directors is elected by the Board members of the Company from among their number by a majority vote of the total number of votes of the Board of Directors, the Board of Directors may at any time re-elect the Chair of the Board of Directors by a majority vote of the total number of votes of the Board of Directors of the Company.

Ekaterina Chernova was unanimously chosen as the Board Chair in 2022 by the Board members. Ekaterina has been on the Company’s Board of Directors for more than six years, and she makes a valuable contribution to the Board’s productive work and the use of best practises in corporate governance. Ekaterina Chernova encourages open debate and the active participation of the Board members during meetings. Additionally, the Board members were quite pleased with the work Ms Chernova did as Chair in 2022.

Nevertheless, the Company is committed to complying with the recommendations of the Code, and the Corporate Secretary of the Company periodically informs the independent members of the Board of Directors at Board meetings about the possibility of electing a Senior Independent Director. At this time, however, the Board of Directors have not elected a Senior Independent Director from among its members.

Throughout the reporting period, the Company’s Corporate Secretary will keep suggesting to the independent members of the Board of Directors that they elect the Senior Independent Director from among themselves.

1. Performance of the chairperson of the board of directors was assessed within the framework of the assessment of performance of the board of directors in the reporting period

1. The responsibility of the chairperson of the board of directors to take measures for the timely provision of members of the board of directors with files on the issues on the agenda of a meeting of the board of directors is recognised in the internal documents of the company

1. The internal documents of the company stipulate that a member of the board of directors is obliged to notify the board of directors if they have a conflict of interest in relation to any issue on the agenda of a meeting of the board of directors or a committee of the board of directors before the start of the discussion of the relevant agenda item.
2. The internal documents of the company state that a member of the board of directors shall refrain from voting on any issue in respect of which they have a conflict of interest.
3. The company has a procedure that enables the board of directors to receive professional advice on matters within its jurisdiction at the expense of the company

1. The company adopted and published an internal document clearly defining rights and obligations of members of the board of directors

1. Individual attendance of the board and committee meetings, as well as sufficient time for work on the board of directors, including its committees, is analysed as part of the board of directors’ performance assessment (self-assessment) procedure in the reporting period.
2. In accordance with the internal documents of the company, members of the board of directors are required to notify the board of directors of their intention to enter management bodies of other companies (apart from companies controlled by the company) as well as of the fact of such appointment

1. In accordance with the company’s internal documents, members of the board of directors have the right to obtain information and documents necessary for the members of the company’s board of directors to perform their duties in relation to the company and its controlled entities, and the company’s executive bodies are obliged to ensure that the relevant information and documents are provided.
2. The company implemented a formalised familiarisation programme for newly elected members of the board of directors

1. The board of directors held at least six meetings in the reporting year

1. The company approved an internal document defining the procedure for the preparation and holding of meetings of the board of directors, which, among other things, established that a notification of a meeting should be normally made at least five days before the meeting.
2. In the reporting period, members of the board of directors who were absent from the venue of the meeting were given the opportunity to participate in the discussion of agenda items and vote remotely: via conference and video conferencing

Criterion 1 is not complied with.

The Company has adopted Regulations on the Board of Directors, which set out the procedure for preparing and holding Board meetings. This regulation stipulates that members of the Board of Directors must be notified at least three days in advance of the meeting.

The company is often required to make decisions on matters within the Board’s purview as quickly as possible. This was particularly often required in a period of high uncertainty and sanctions risks in the reporting period. Accordingly, voting materials for the Board of Directors were sent to the members three days before the meeting.

Previously, the Company has always endeavoured to give five or more calendar days’ notice of meetings to Board members.

At the end of 2022 the Company drafted a new version of the Board of Directors’ Regulations, which included a condition that the members of the Board of Directors should be given at least five days’ notice of the meeting, and submitted it for approval at the General Meeting of Shareholders on 2 March 2023.

1. The company’s charter or internal documents stipulate that the most important matters (including those listed in Recommendation 168 of the Code) should be considered at meetings of the board of directors held in person

1. The charter of the company stipulates that decisions on the most important issues, including those set out in recommendation 170 of the Code, must be made at a meeting of the board of directors by a qualified majority of at least 3/4 of votes or by a majority of votes of all elected members of the board of directors

1. The board of directors formed the audit committee, consisting solely of independent directors.
2. The internal documents of the company define the objectives of the audit committee, including those contained in recommendation 172 of the Code.
3. At least one member of the audit committee, who is an independent director, has experience and knowledge in the preparation, analysis, assessment and audit of accounting (financial) statements.
4. Meetings of the audit committee were held at least once a quarter in the reporting period

Criterion 1 is not complied with.

During the reporting year, the Audit Committee comprised two independent directors with experience and expertise in the preparation, analysis, evaluation and audit of accounting (financial) statements, one of whom is the Chair of the Audit Committee. One member of the Committee is not independent, but the long service on the Board of Directors, knowledge of business specifics, qualifications and competencies in audit, finance, risk management and impressive experience in management positions allow this member of the Audit Committee to effectively perform the functions stipulated by the Regulations on the Audit Committee of the Board of Directors of INARCTICA PJSC.

The Company is committed to complying with the recommendations of the Code, and the Corporate Secretary of the Company notifies members of the Board of Directors (prior to the election of the Committee) of the recommendations of the Code and the requirements of the Listing Rules of the Moscow Exchange.

The Audit Committee may be made up entirely of independent Board members in 2023, according to plans made by the Board of Directors.

1. The board of directors formed the remuneration committee that consists solely of independent directors.
2. The chairperson of the remuneration committee is an independent director who is not the chairperson of the board of directors.
3. The company’s internal documents set out the tasks of the remuneration committee, including, but not limited to, the tasks contained in recommendation 180 of the Code, as well as the conditions (events), upon the occurrence of which the remuneration committee considers reviewing the company’s remuneration policy for members of the board of directors, executive bodies and other key executives

Criterion 3 is not complied with.

The Regulations on the Nomination and Remuneration Committee of the Board of Directors set out the tasks of the Nomination and Remuneration Committee, including those contained in recommendation 180 of the Code. However, these Regulations do not define the conditions (events), upon the occurrence of which the Nomination and Remuneration Committee of the Board of Directors considers the review of the Company’s remuneration policy for members of the Board of Directors, executive bodies and other key management personnel.

Nevertheless, the Nomination and Remuneration Committee occasionally addresses issues relating to the remuneration of the Company’s executive bodies and employees at its meetings. In 2022, active work was being done to create a target map and establish KPI values for not just the Company’s CEO but also for all top management. Additionally, the employee incentive scheme and new stock option programme were occasionally discussed.

The Company is committed to implementing the recommendations of the Code, and its 2023 work plan includes the revision of the Regulations on the Nomination and Remuneration Committee of the Board of Directors of the Company and the addition of conditions to review the Company’s policy on remuneration of the Board of Directors, executive bodies and other key executives.

1. The board of directors formed the nomination committee, with the majority of members being independent directors (or its objectives specified in recommendation 186 of the Code are accomplished by another committee).
2. The internal documents of the company define the objectives of the nomination committee (or a corresponding committee with combined functions) including the ones contained in recommendation 186 of the Code.
3. In order to form the board of directors that best meets the company’s goals and objectives. The nomination committee organised shareholder relations, not limited to the major shareholders, in the context of selecting candidates to the company’s board of directors in the reporting period, either independently or jointly with other committees of the board of directors or the company’s authorised shareholder relations unit

Criterion 3 is not complied with.

The Nomination and Remuneration Committee has been a part of the Board of Directors for a number of years. It oversees the Company’s human resources policy, improves the professionalism and effectiveness of the Board of Directors, and ensures the succession of the Company’s governing bodies.

In 2021, the more than half of the Company’s Board members were replaced with new ones, and the Board of Directors was formed from candidates proposed by all shareholders entitled to nominate candidates to the Board of Directors.

The current membership of the Company’s Board of Directors fully meets shareholders’ expectations in terms of competence, knowledge, experience and qualifications. For the past two years, this Board has been productively serving the interests of the Company.

Moreover, in 2022 it became difficult to find new independent candidates with the competencies required by the Company and meeting the expectations of the Company’s shareholders due to the refusal of many independent directors from foreign countries to serve on the boards of directors of Russian companies.

Therefore, the Nomination and Remuneration Committee of the Board of Directors in 2022 did not engage with shareholders on the issue of selecting new candidates to the Company’s Board of Directors.

The Company is committed to following the Code’s recommendations, and if any of the current Board members are found to be incompetent, the Nomination and Remuneration Committee will begin working with all of the Company’s shareholders, not just the largest ones, to choose new candidates for the Board of Directors.

Given the resignation of Board members with rare aquaculture capabilities in 2022, the Company does not rule out the possibility that such work may be done in 2023

1. In the reporting period, the board of directors of the company considered whether the structure of the board of directors is appropriate to the scope and nature, business goals and needs, and risk profile of the company. Additional committees were either formed or not recognised as necessary

1. The audit committee, the remuneration committee, and the nomination committee (or the relevant committee of a combined nature) were chaired by independent directors in the reporting period.
2. The internal documents (policies) of the company include provisions stipulating that persons not entering the audit committee, the nomination committee (or the relevant committee of a combined nature) and the remuneration committee may attend committee meetings only at the invitation of the chairperson of the relevant committee

1. During the reporting period, committee chairpersons reported regularly to the board of directors on the work of the committees

1. The company’s internal documents set out the procedures for assessing (self-assessing) the board of directors’ performance.
2. The assessment (self-assessment) of the performance of the Board of Directors carried out in the reporting period included an assessment of the performance of the committees, an individual assessment of each member of the board of directors and the board of directors as a whole.
3. The results of the assessment (self-assessment) of the board of directors’ performance carried out in the reporting period were reviewed at an in-person meeting of the board of directors

1. The company engaged an external company (consultant) to conduct an independent assessment of the quality of the performance of the board of directors at least once for the three last reporting periods

Criterion 1 is not complied with.

In accordance with Art. 2.9.2 of the Code, the performance of the Board of Directors, Committees and members of the Board of Directors should be assessed on a regular basis at least once a year. It is recommended to engage an external company (consultant) on an occasional basis (at least once every three years) to conduct an independent assessment of the quality of the performance of the Board of Directors.

The current Board of Directors was elected in 2021 and at the time of writing this Report has been in office for less than three years. Thus, in 2022, there was not enough information gathered to conduct an objective independent assessment of the work of the Board of Directors in its current membership.

The Board of Directors independently assesses its performance annually in accordance with the Company’s approved methodology for assessing the effectiveness of the Board of Directors and Board Committees. The results of such assessments in recent years are given in the Corporate Governance section of this Annual Report.

The Company is committed to complying with the recommendations of the Code and plans to propose to the Board of Directors to consider engaging external organisations to conduct an independent assessment of the Board of Directors’ performance in 2023.

1. The company’s website and the annual report contain curriculum vitae of the corporate secretary (including information on age, education, qualifications, experience) as well as information on the positions held by the corporate secretary in the management bodies of other legal entities for at least the last five years

1. The company adopted and disclosed an internal document – the provision on the corporate secretary.
2. The board of directors approves the candidate for the position of the corporate secretary and terminates his/ her powers, as well as considers the payment of additional remuneration.
3. The company’s internal documents stipulate the corporate secretary’s right to request and receive company documents and information from management bodies, structural units and officials of the company

1. The remuneration of members of the board of directors, executive bodies and other key executives of the company is determined taking into account the results of a comparative analysis of remuneration levels in peer companies

1. In the reporting period, the remuneration committee reviewed the remuneration policy(-ies) and (or) practices of its (their) implementation, assessed their efficiency and transparency, and, if necessary, submitted respective recommendations to the board of directors on the revision of the said policy(-ies)

1. The company’s remuneration policy (policies) contains (contain) transparent mechanisms for determining the amount of remuneration to the members of the board of directors, the executive bodies and other key managers of the company, as well as regulates (regulate) all types of payments, benefits and privileges provided to these persons

1. The remuneration policy (policies) or in other internal documents of the company establish the rules for compensation of expenses to the members of the board of directors, the executive bodies and other key managers of the company

The company pays a fixed annual remuneration to the members of the board of directors. The company does not pay any remuneration for participation in individual meetings of the board of directors or its committees.

The company does not apply any types of short-term motivation or additional financial incentives to members of the board of directors

1. In the reporting period, the company paid remuneration to the members of the board of directors in accordance with the remuneration policy adopted by the company.
2. In the reporting period, the company did not apply any forms of short-term motivation or additional financial incentives to the members of the board of directors, the payment of which depends on the results (indicators) of the company’s operations. No remuneration was paid for participation in individual meetings of the board of directors or board committees

If the internal document (documents) — the company’s remuneration policy (policies) — stipulates (stipulate) the provision of the shares of the company to the members of the board of directors, clear rules of ownership of shares by the members of the board of directors aimed at encouraging long-term ownership of such shares shall be envisaged and disclosed

1. The company does not provide for any additional payments or compensations in case of early termination of the powers of the members of the board of directors resulting from the change of control over the company or otherwise

1. In the reporting period, the annual performance indicators approved by the board of directors were used to determine the variable remuneration of members of the executive bodies and other key executives of the company.
2. In the course of the last assessment of the remuneration system for the members of the executive bodies and other key managers of the company performed, the board of directors (the remuneration committee) made sure that the company uses an effective ratio between the fixed and variable portions of the remuneration.
3. In determining the remuneration payable to members of executive bodies and other key executives of the company, the company accounts for the risks borne by the company to avoid creating incentives for excessively risky management decisions

1. If the company has introduced a long-term incentive scheme for members of executive bodies and other key executives of the company using company shares (financial instruments based on company shares), the scheme stipulates that the right to sell such shares and other financial instruments shall not arise earlier than three years after their provision. The right to sell them is conditional on the achievement of certain performance indicators of the company

1. The amount of compensation (golden parachute) that the company pays in case of early termination of their powers to the members of the executive bodies or key managers, as initiated by the company, and in the absence of unfair acts on their part, did not exceed a twofold amount of the fixed portion of the annual remuneration during the reporting period

1. The functions of various corporate bodies and units of the company in the risk management and internal control system are clearly defined in internal documents/respective policy of the company approved by the board of directors

1. The executive bodies of the company ensured that duties, powers, responsibilities in the area of risk management and internal control are distributed between the heads (managers) of departments and divisions reporting to them

1. The company has an approved anti-corruption policy in place.
2. The company ensured a safe, confidential and easy-to-use way (hotline) of informing the board of directors or the audit committee under the board of directors on the facts of violation of the legislation, the internal procedures and the ethical code of the company

1. In the reporting period, the board of directors (audit committee and/ or risk committee, if any) organised an assessment of the reliability and effectiveness of the risk management and internal control system.
2. In the reporting period the board of directors reviewed the results of the assessment of the reliability and effectiveness of the company’s risk management and internal control system, and the details of the review are included in the company’s annual report

1. To conduct an internal audit, the company established a separate structural internal audit unit functionally reporting to the board of directors or engaged an independent external company following the same accountability principle

1. In the reporting period, internal audit assessed the reliability and effectiveness of the risk management and internal control system.
2. In the reporting period, internal audit assessed corporate governance practices (individual practices), including communication procedures (including those related to internal control and risk management) at all management levels of the company, as well as stakeholders relations

1. The board of directors of the company approved the company’s information policy developed with regard to the recommendations of the Code.
2. In the reporting period, the board of directors (or one of its committees) reviewed the efficiency of communication between the company, shareholders, investors and other stakeholders and the advisability (necessity) to revise the company’s information policy

1. The company discloses information on the company’s corporate governance system and general principles of corporate governance applicable to the company, including on the company’s website.
2. The company discloses information on the composition of the executive bodies and the board of directors, independence of members of the board of directors and their membership in the committees of the board of directors (in accordance with the definition given in the Code).
3. If there is a person controlling the company, the company publishes a controlling person memorandum concerning the plans of such person in respect of corporate governance in the company

1. The company has established a procedure to ensure that all structural units and employees of the company who are involved in the disclosure of information or whose activities may lead to the need to disclose information coordinate their work.
2. If the company’s securities are traded in foreign securities markets, the disclosure of substantial information in the Russian Federation and in such markets shall be performed simultaneously and equivalently during the reporting year.
3. If foreign shareholders hold a significant number of the company’s shares, the disclosure of information during the reporting year was performed not only in Russian but also in one of the most widespread foreign languages

1. The company’s information policy defines approaches to the disclosure of information on other events (actions) that have a significant impact on the value or quotation of its securities, the disclosure of which is not required by law.
2. The company discloses complete information on the structure of the company’s capital in the annual report and on the company’s website in accordance with recommendation 290 of the Code.
3. The company discloses information on controlled entities that are material to it, including key areas of their activities, mechanisms for ensuring accountability of controlled entities, the authority of the company’s board of directors to determine strategy and assess performance of controlled entities.
4. The company discloses a non-financial report — a sustainability report, environmental report, corporate social responsibility report or any other report containing non-financial information, including factors related to the environment (including environmental and climate change-related factors), society (social factors) and corporate governance, except for the equity issuer’s report and the annual report of a joint stock company

Criterion 2 is complied with partially.

In order to safeguard its shareholders and the Company itself in 2022, the Company decided not disclose information regarding its shareholding structure on the Company’s website owing to heightened sanctions risks.

However, the Company has consistently made its shareholding structure public knowledge and disclosed it in the Company’s annual reports, and will do so again in the text of the Company’s Annual Report 2022.

The Company is now withholding information about the capital structure, but once public companies resume the full disclosure regime, it will provide that data on its website.

1. The company’s annual report contains information on the audit committee’s assessment of the effectiveness of the external and internal audit processes.
2. The company’s annual report contains information on the company’s environmental and social policies

1. The company’s information policy (internal documents defining the information policy) defines a non-onerous procedure for providing access to the company’s information and documents upon shareholders’ request.
2. The information policy (internal documents defining the information policy) contains provisions stipulating that if a shareholder requests information on organisations controlled by the company, the company shall make the necessary efforts to obtain such information from the relevant organisations controlled by the company

1. The company’s information policy (internal documents defining the information policy) defines a non-onerous procedure for providing access to the company’s information and documents upon shareholders’ request.
2. The information policy (internal documents defining the information policy) contains provisions stipulating that if a shareholder requests information on organisations controlled by the company, the company shall make the necessary efforts to obtain such information from the relevant organisations controlled by the company

1. The company’s charter define the list (criteria) of transactions or other actions that constitute material corporate actions. Decision-making in respect of material corporate actions refers to the competence of the board of directors as stated in the charter. When these corporate actions are directly referred by the legislation to the competence of the general meeting of shareholders, the board of directors makes recommendations to shareholders accordingly

1. The company has a procedure for independent directors to state their position on material corporate actions prior to their approval

The Company does not have a procedure for independent members of the Board of Directors to state their position on material corporate actions.

The concept and list of material corporate actions appeared in the Company’s new Charter in 2022, and the Company has not yet regulated the procedure for independent Board members to state their position on such matters.

Nevertheless, all members of the Board of Directors are entitled to express their dissenting opinions on items on the agenda of the meeting, including those relating to material corporate actions. Such dissenting opinion shall be appended by the Company Secretary to the minutes of the relevant meeting.

The Company strives to implement the recommendations of the Code and in 2023 will consider amending the Company’s internal documents to regulate the procedure for independent members of the Board of Directors to declare their positions on material corporate actions.

The company ensures equal conditions for all of its shareholders if material corporate actions affect the rights and legal interests of shareholders, and implements additional measures protecting the rights and legal interests of shareholders of the company if the legal mechanisms aimed at protecting the rights and legal interests of shareholders are insufficient.

The company is guided not only by formal legal requirements but also by the corporate governance principles set forth in the Code

1. Given the nature of the company’s business, the board of directors is authorised by the company’s charter to approve other transactions that are material to the company, in addition to those provided for by law.
2. During the reporting period, all the material corporate actions went through the procedure of approval prior to their execution

1. If material corporate actions have been taken by the company in the reporting period, the company disclosed such actions in a timely and detailed manner, including the reasoning behind them, the conditions under which the actions were taken and the consequences of such actions for shareholders

1. The internal documents of the company define the cases and the procedure for involving an appraiser to estimate the value of the property, alienated or purchased through a major transaction or an interested-party transaction.
2. The internal documents of the company stipulate the procedure for involving an appraiser to estimate the value of purchase and redemption of the company’s shares.
3. If there is no formal interest of a member of the board of directors, the sole executive body, a member of the collegial executive body of the company, a person who is a controlling person of the company or a person entitled to give instructions binding to the company, in the company’s transactions, but there is a conflict of interest or other actual interest, the internal documents of the company provide that such persons shall not participate in voting on the approval of such transaction