Stakeholder Engagement Stakeholder Engagement

Shareholders

In 2020, the number of VTB shareholders more than doubled from 159 thousand to 337 thousand. As of December 2020, VTB had 336 thousand private investors living in 85 regions of Russia. In 2020, the shareholder structure continued to be rejuvenated, with 79% of our shareholders under the age of 50.

VTB continued to implement a comprehensive shareholder and investment community engagement programme aimed at improving the investment appeal of VTB shares and increasing the Bank's market capitalisation.

The Shareholder Relations Service is the main body responsible for relations with all individual shareholders. VTB implements a number of significant projects and measures to ensure effective shareholder engagement, encourage feedback and improve financial literacy among minority shareholders.

The Bank has an effective system for minority shareholder engagement. A VTB shareholder can contact the Bank through a broad range of channels, including online on the Bank's website and social networks, by email, through the Shareholder Relations Service and Call Centre, using a mobile application and through Shareholder Relations Centres.

VTB's comprehensive communications system includes a broad range of forms and tools for stakeholder engagement, as well as feedback mechanisms, which help identify the most significant issues in a timely manner and effectively manage our own impact.

Shareholders' Consultative Council

The Shareholders' Consultative Council is a unique advisory body for improving relations between VTB and its minority shareholders. The Shareholders' Consultative Council's main objective is to represent the interests of minority shareholders and to communicate their position to the Bank's top management. The Shareholders' Consultative Council regularly suggests new ways of improving the quality of service and participates in discussions of strategically important issues, including dividend payments and the Group's development strategy. Members of the Management Board and Supervisory Council, heads of the Bank's departments and functional areas, as well as subsidiaries, participate in meetings of the Council.

• Reception of enquiries in the Shareholder Relations Service
• General meeting of shareholders
• Specialised website dedicated to the General Meeting of Shareholders
• Shareholders' Consultative Council
• Newsletter
• VTB Shareholder mobile app
• Social networks
• Online training courses
• Investor days and seminars (temporarily suspended and moved online)
• Shareholders’ Centres in Moscow, St. Petersburg, and Yekaterinburg

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Investors

VTB strives to keep the investment and analytical community informed of the VTB Group's operational and financial performance in a timely manner and as promptly as possible. VTB works to diversify its institutional investor base and maintain contacts with portfolio managers of investment funds holding the Bank's shares and bonds and with potential investors in VTB. We constantly strive to increase the level of information transparency and regularly inform representatives of the investment and financial community on all issues of interest through various channels, as well as to promptly respond to incoming requests.

The most important element of interaction with the investment and analytical community is the provision of high-quality and prompt feedback. Based on the requests received, the level of information disclosure in financial statements, annual reports, sustainability reports and on the corporate website is constantly improved.

Affected by the COVID-19 pandemic, the format of communication with institutional investors and analysts was changed and all events were transferred to the online format: 157 online meetings were held (of which 96 were held as part of online conferences and road shows).

Also during the reporting period, an independent survey was conducted on VTB's perception by the investment and analytical community, to identify its strengths and strategic objectives for the Group's development from the perspective of market participants. Largest international investment funds took part in the survey. The questions were about VTB Group's operating and financial performance, market position, strategic priorities and development objectives.

• Proactive engagement with institutional investors, analysts and credit rating agencies

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Customers

Among VTB's customers are dozens of thousands of large companies, small and medium businesses, operating in various industries and millions of individuals, including customers from VTB's retail business.

VTB sticks a responsible approach to customer relations and observes the principles of business ethics and fair marketing. The Bank takes all necessary measures to prevent fraudulent sales and the misrepresentation of customers. In order to effectively support customers on all issues that arise, feedback is analysed to determine the most pressing issues and conduct customer satisfaction surveys.

In interacting with customers, VTB offers innovative solutions and products and services individually tailored to each customer group, and strives to ensure the highest level of service for everyone.

• Customer satisfaction surveys (online and telephone surveys)
• Channels for remote banking services, including VTB Online mobile application and online banking
• Information support in social media accounts and mobile applications
• VTB Call Centre

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Authorities

The Russian Federation represented by the Federal Agency for State Property Management is the major shareholder of VTB Bank, which imposes certain obligations and has a significant influence on the Bank's policy. In its operations, VTB strives to meet the goals set by the government and contribute to the successful achievement of strategic national objectives.

The Bank is actively involved in resolving pressing issues of national development, contributing to the successful functioning of various sectors of the Russian economy and promoting social and economic stability in the Russian Federation. VTB participates in a number of working groups and consultative bodies under federal executive and legislative authorities and public and professional associations.

VTB participates in efforts to improve and harmonise legislation in the Russian Federation. The Bank focuses its attention on draft laws related to the introduction of new banking services, issues on the OTC financial market and pension legislation, as well as initiatives affecting the Bank's brokerage, corporate investment and leasing business. In particular, amendments to corporate legislation, the Tax Code of the Russian Federation, the Federal Law "On the National Payment System", AML/CFT, and amendments to a number of regulatory and legal acts related to the Bank's participation in the digital economy are being developed.

The VTB Group believes it is necessary to extend cooperation with state and municipal authorities in the area of social and economic development of the regions where it operates.

Russian regions with which VTB Bank has cooperation agreements in place

Amur region
Arkhangelsk region
Belgorod region
Vladimir region
Zabaykalsky territory
Kaliningrad region
Kamchatka territory
Kemerovo region
Kirov region
Kostroma region
Krasnoyarsk territory
Kursk region
Magadan region
Murmansk region
Nenets autonomous area
Nizhny Novgorod region
Novgorod region
Novosibirsk region
Orenburg region
Orlov region
Primorsky territory
Pskov region
Buryat Republic
Republic of Karelia
Republic of Komi
Mari El Republic
Sakha Republic (Yakutia)
Republic of Tatarstan
Rostov region
Ryazan region
Samara region
Saratov region
Tver region
Tomsk region
Tula region
Tyumen region
Udmurt Republic
Ulyanovsk region
Khabarovsk territory
Chelyabinsk region
Chechen Republic
Chuvash Republic
Yaroslavl region

Scopes of cooperation between VTB and Russian regions

Development of regions’ social and economic potential

Implementation of cutting-edge banking technologies and increasing the availability of financial services

Development of bank card service infrastructure

Industrial complex modernisation

Facilitation of investment in the regions

Development of a credit system

Development of housing construction

In 2020, VTB Capital arranged more than 30 bond placements for constituent entities and municipalities for a total amount of over RUB 300 billion. This financing of the budgets of the constituent entities allowed the issuers to fully implement all social functions assigned to the respective budgets. A number of issuers, such as Sverdlovsk, Ulyanovsk, Novosibirsk regions, were included in the top 10 ESG-rating of Russian regions, compiled by the RAEX-Analytics rating agency on the Governance (Management quality) criterion. The leaders in the Environmental criterion according to the same rating - St. Petersburg and the Moscow region - allocated significant funds for the development of environmental programmes of the respective regions, including the development of environmentally safe transport.

• Payment of taxes to federal and regional budgets
• Cooperation with regional authorities
• Participation in expert councils, parliamentary hearings, roundtables and working groups on drafting laws and regulations
• Information disclosure in accordance with legislative requirements
• Participating in associations and charters, major business forums, and events

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Business partners

The VTB Group develops long-term mutually beneficial relationships with its business partners on the basis of the principles of equality, fairness, non-discrimination, prevention of corruption and transparency.

This category of stakeholders includes suppliers and contractors and companies of various shapes and sizes, including large companies, medium and small businesses and individual entrepreneurs.

• Developing tendering procurement procedures
• Preventing supply chain corruption
• Organising training events for suppliers and contractors
• Participating in international and national professional associations

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Employees

By building effective and trusting relationships with employees, VTB creates opportunities for professional and personal growth and provides a competitive compensation package and safeguards occupational health and safety.

The Group pays significant attention to creating a positive corporate culture, which is in line with the Group's values and helps its employees achieve their full potential.

Other important areas of interaction with employees include ensuring equal opportunities for career growth and professional development, providing social benefits and occupational health and safety.

• Employee satisfaction and engagement survey
• Intranet portal
• Team Spirit corporate magazine
• Whistleblower hotline
• Team-building events, meetings with executives
• Employee training portal
• Gravity system to collect and review employee ideas

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Society

The VTB Group pays significant attention to building partnerships with non-governmental organisations in order to ensure sustainable economic development in the regions of operation and improving the quality of life of their residents. We continuously work with local authorities, the media and non-governmental organisations to implement social investment programmes.

As a result of such cooperation, a number of large-scale charity and sponsorship projects supporting mass sports, culture and the arts, as well as health, education and social welfare programmes are implemented each year. VTB is also a member of a number of professional associations and business unions.

• Targeted sponsorship and charity support
• Supporting higher education institutions, undergraduate and postgraduate students and young scientists
• Supporting healthcare institutions and participation in projects related to development of advanced healthcare technologies
• Joint projects with non-profit and charitable organisations
• Improving the financial literacy of the population
• Interaction with mass media
• Development of a website on VTB-Russia social projects
• Social media accounts

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