25 Apr 2018 15:45
Results of the Board of Directors Meeting on April 24, 2018
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a regular meeting on April 24, 2018.
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The Board of Directors approved the report on execution of PJSC RusHydro's 2017 business plan, including reports on fulfillment of investment program such as integrated modernization of generating facilities and an annual integrated procurement program.
The Board of Directors took note of the report on execution of RusHydro Group's 2017 consolidated business-plan, including a consolidated investment program and expense optimization activities.
The Board of Directors also reviewed the report on execution of the Company's KPIs and KPIs of members of the Management Board for 2017 and adopted next resolution:
To deem the KPI "Decline of operating expenses (costs), %" for 2017, calculated with due regard to factors, that are beyond the control of the Company management, to have been achieved.
To approve the Report on the Achievement of the Company Management Board Members' Annual KPIs for 2017.
To approve amendments to the Methodology for the Calculation and Evaluation of the Annual KPIs of RusHydro Management Board Members (the amendments shall apply from January 1, 2018).
To approve:
- target Values of the Annual KPIs of the Company's Management Board Members for 2018 (KPI "Return on Equity (ROE), %," "Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA), RUB million," "Labor productivity, RUB thousand/man-hours").
- target KPI Values under Cycle Two of RusHydro's Long-Term Motivation Program for 2018-2020 (KPI "Free Cash Flow (FCF), RUB million").
Based on the results of an evaluation of RusHydro's financial and economic activity for the first half of 2018, to bring the matter of approval of the Target Values of the Annual KPIs of RusHydro's Management Board Members for 2018 to the Board of Directors for review no later than July 31, 2018, if adjustment is needed.
To approve amendments to the Target Values of Performance Indicators under Cycle One of the Company's Long-Term Motivation Program for 2017-2019 (for the KPI "Free cash flows (FCF), RUB million").
About RusHydro
RusHydro Group is one of Russia's largest generating companies. RusHydro is the leading producer of renewable energy in Russia with over 70 generating facilities in Russia and abroad. The company also manages a number of R&D, engineering and electricity retail companies. Group's thermal assets are operated by subsidiary - RAO Energy System of East in the Far East of Russia. Total electricity generation capacity of the Group is 39 GW, heat capacity - 16.2 thousand GCal/h.
Russian Federation owns 60.56% in RusHydro, the rest is held by other institutional and individual shareholders (over 360,000). The company's stock is traded on Moscow Exchange (MOEX), and included in MSCI EM и MSCI Russia indexes. Company's GDRs in the IOB section of LSE, ADRs - in OTCQX.
For more information:
Investor Relations Department
Tel. +7 (800) 333 8000 ext. 1607, 1319, 1304
ir@rushydro.ru
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.