VK : Annual report VK Company 2022

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VK Annual Report 2022

Contents

General information	3
VK in brief	4
VK business model	5
VK achievements	6
VK key events in 2022	7

Overview of results	10
Operating results	11
Financial results	35

Sustainable development	36
Principles and approaches	37
Employees	37
Human rights and anti-discrimination	38
A comfortable digital environment	38
Cybersecurity and protection of personal data	39
Social projects	40
Environmental protection	42

Corporate governance	43
Corporate governance principles and practice	44
Corporate governance system	45
Governing bodies	46
Internal control system in relation
to the financial reporting process	48
Risk management	49
Ethics and compliance	54
Information for shareholders and investors	55
Responsibility statement	56

Appendices	57
Consolidated Financial Statements	58
Cautionary statements	127
About the Report	127
Disclosure of corporate information	127
Contacts	128

General information

4	General information

VK in brief

VK is the biggest Russian technology company in terms of user base. VK digital products help dozens of millions of users with daily chores like communication, education, entertainment, and personal growth. VK creates tools that help entrepreneurs develop and promote businesses on social networks and content aggregators.

Team

More than 10,000 people1 work at VK to provide millions of people with a welcoming and secure online environment. The company recruits top talent and provides them with the chance to realise their potential

in an amicable and safe atmosphere while working as a team to develop products and services that are in high demand among millions of users.

Mission

VK's mission is to develop the best digital services possible that go above and beyond what users anticipate and evoke strong feelings.

• Hereinafter, internal data unless otherwise noted.

2022 Annual Report

5	General information

VK business model

2022 Annual Report

The creation of digital content services to satisfy users' daily needs is the strategic focus of VK.

The company offers products and services that are enhanced and tailored to the audience's interests on a continuous basis.

The company uses a variety of mechanisms and metrics, with the net promoter score (NPS) ranking, which reveals consumer loyalty market research, being among the most important ones.

In Russia's advertising sector, VK is one of the major players. The company works with major advertisers as well as medium-sized,small-sized, and micro-businesses.

VK develops marketing tools to help advertisers with their media and performance-related issues. The VK Ads launched in 2022 brought together the most efficient tools and innovative promotional algorithms.

VK promotes the following business areas:

Social networks and content services:

VKontakte, OK, Dzen, Mail.ru, VK Clips, VK Calls,

VK Messenger and others

Technology for business (VK Tech):

VK Tech, VK WorkSpace, VK Teams, VK Cloud, Tarantool, VK Tax Compliance, VK HR Tek and others

VK makes investments in its megabrand's growth to ensure its recognition. For this purpose, the company created

a unified communication strategy called 'The place to meet', which linked together all VK products and services. Its objective is to starkly illustrate that VK is a place for people who wish to realise their full potential and experience the value of social interaction. VK is a place to meet friends/music/talents/viewers/ something new/ teams.

EdTech:

Skillbox, GeekBrains, SkillFactory, Lerna, Mentorama, Uchi.ru, Sferum

New business lines:

VK Capsula smart speakers, Marusia voice assistant,

VK Play gaming platform, and the official RuStore app store

VK is continuously aiming to expand the number of authors, communities, influencers, journalists, and bloggers on its platforms. This gives the opportunity to provide more content, which in turn increases the number of users.

The extensive rollout of a support programme for authors, including the expansion of monetisation tools, was a major element in drawing authors last year.