2.4.2

Financial statements

This Annual Report and the 2017 consolidated financial statements, audited by Ernst & Young Accountants LLP, were presented to the Supervisory Board in the presence of the Management Board and the external auditor. Ernst & Young’s report can be found in section Independent auditor’s report.

The Supervisory Board recommends that shareholders adopt these financial statements and, as proposed by the Management Board, appropriate RUB 21,590 million for dividend payments for the 2017 financial year, representing 69% of net profit. The proposed dividend amounts to RUB 79.5 per GDR. An amount of RUB 9,804 million, representing the remaining amount of the profit for the 2017 financial year, will be added to the retained earnings.

The Supervisory Board furthermore requests that the Annual General Meeting of Shareholders grant discharge to the members of the Management Board for their management and to the members of the Supervisory Board for their supervision in 2017.

The Supervisory Board wishes to express its sincere appreciation for the results achieved and would like to thank the Executive Board and all X5 employees for their continued dedication and efforts in 2017.