Key Performance Indicators
Alongside the approval of the Long-Term Development Programme the Board of Directors also approved the Key Performance Indicators (KPIs) for
- Investment related KPIs: Total Shareholder Return (TSR) over the past year and Return on the Invested Capital (ROIC).
- Financial KPIs: Revenue, OIBDA margin, innovation KPI, labour productivity indicator.
- Industrial KPIs: broadband Internet access subscriber base (including all access technology) + IPTV user base, number of households passed with fibre.
|№||KPI||Measurement unit||2014 actual||2015 Conservative||2015 Actual||Difference from conservative||2015 baseline||Difference from baseline||Comment|
2015 was marked by high volatility and decreasing interest in emerging markets in general, therefore investors were inclined to increase exposure in instruments offering:
|2||ROIC||%||8.7||7.8||8.1||3.8%||9.4||–13.8%||The KPI value at the year end was 8.1%, which is better than under a conservative scenario.|
|3||RevenueAs the Long-Term Development Programme and KPIs were approved for the period
In general, the Company achieved its market forecast in terms of revenue. The following factors among others prevented the Company from meeting the upper value of the range:
|4||OIBDA marginThe mobile business was not taken into account.||%||34.3||31.3||33.9||8.3%||33.5||1.2%||A high OIBDA margin value is attributed to successful implementation of operational efficiency improvement program.|
|5||Innovation KPI (Quality of design and survey in 2015)In 2015, the Company completed the implementation of the Innovation Development Programme as approved in 2013. The Innovation Development Programme for the period
|6||Labour productivity indicator||RUB per employee per hour||1,081||1,097||1,138||–3.6%||1,147||–4.4%||The difference of this indicator value from the target is attributed to the revenue amount generated in 2015 (cf. comment on the revenue target).|
|7||Broadband (B2C+B2B) and IPTV subscribers without audit||mln subs||13.9||15.5||14.6||5.9%||15.3||1.1%||Given the base clean-up in Q1-Q2 2015, the target is met in all scenarios.|
|8||Number of households passed with fibre||mls HH||25.2||30.7||29.0||5.9%||30.0||2.3%||The deployment of Fibre network is ahead of schedule. To maintain Rostelecom’s technological edge in IP network the Company plans to pass with fiber up to 33 mln of Russian households by the end of 2016.|