2.1

Letter to stockholders

...

A.N. Fadeev

The Chair of the Board of Directors
IDGC of Urals (ОАО)

Dear stockholders!

The year we just left behind was quite symbolic for our domestic economy. It was full of events that continuously challenged our stability and strength. Industrial enterprises operated under worsened economic conditions on the back of limited resources. The power sector is no exception: the situation demanded peak concentration and attention from employees to raise performance efficiency.

Just as in previous years, IDGC of Urals (OAO) has demonstrated its sustainable significant performance retaining its dominant position on the energy market of the Urals and Prikamye regions, built on the principles of transparency, efficiency and integrity of business. The Company displayed itself as the active participant of regional energy market that fully respects all commitments taken to be truly socially responsible employer and major taxpayer.

Positive financial and economic performance, achieved by the Company in 2015, may definitely serve as an outstanding example of how well-coordinated teamwork, correct trajectories for further evolution of the Company and sound antirecession policy blended in a good mix to present the fruitful outcome of high-yield management of Company’s assets. Severe environment was unable to knock the Company off its feet down into recession.

Rather, it finalized the year with skyrocketed key metrics: total revenues of the Company in FY2015 reached RUB 60.5 bn, with net profit growing over RUB 2.4 bn to leave 2014 figures far behind

IDGC of Urals (OAO) has also retained positive capex trend. Our opex-cutting program, well-balanced credit policy and sound performance of economic and technical divisions of the Company were combined to achieve strategic industry objectives: i) to lower equipment deterioration and revamp it; ii) to make access to network infrastructure easier for consumers; as well as iii) to guarantee reliable operability of the Urals and Prikamye energy systems. This background enable us to state that chosen trajectories for further evolution of the Company and outlined priorities are sound and correct, with managerial decisions and track records laying the groundwork for success next challenging year. The Board of Directors and C-level executives aspire to retain economic stability, sound performance and social responsibility of the Company for the benefit of stockholders and customers.