TCS.L Regulatory News (TCS)

TCS Group adds new participants to its long-term management incentive and retention plan

Limassol, Cyprus - 18 April 2019.  TCS Group Holding PLC (TCS LI) (the "Group") Russia's leading provider of online financial and lifestyle services via its Tinkoff.ru ecosystem, announces a further expansion and deepening of its long-term management incentive and retention plan (MLTIP). The Board in Q1 2019 approved an increase in the number of participants, making awards to 10 new participants.

The Group had previously announced that the target total size of the MLTIP pool would be nearly 5.6% of the Group's current share capital.

Each MLTIP wave is awarded over six years, materially subject to the fulfilment of annual KPIs.  All participants are employees of the Group, working full time in the Russian Federation.

The aim of this initiative, is to ensure that the interests of the broader management team are closely aligned with the interests of shareholders to grow the Group's value, as it continues to grow the scale and scope of its operations.

Oleg Tinkov, the founder of Tinkoff Bank, said: "Not so many companies in Russia have similar long-term incentive plans, and in the conservative financial industry our reward system is truly one of a kind.

Our LTIP scheme covers some 100 people - my partners and business co-owners - and we are planning to add more participants to this program in the future. I am particularly proud that most of the LTIP participants started their careers at Tinkoff from entry-level positions, with approximately 10% of them joining the Company as call centre operators.

Newly eligible participants are an integral part of the team that commits every effort to making Tinkoff one of the most innovative financial companies globally. I invite my teammates to share our success and I am confident that our long-term incentive plan will keep them motivated to drive further business growth, seek best innovative solutions and make everything possible for our new achievements."

About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services. It includes Tinkoff Bank, mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of development hubs in major Russian cities. The Group also has Tinkoff.ru, an evolving ecosystem that offers financial and lifestyle services.

The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.

The Group's key business is Tinkoff Bank, the country's first and only direct bank and the core of the Tinkoff.ru ecosystem.

Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 11.8%. The 2018 IFRS net income of TCS Group Holding PLC amounted to RUB 27.1 bn (a record high year net income in the Group's history), ROE grew to 74.7%.

With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre staffed by over 10,000 employees, which makes it one of the largest in Europe. To ensure smooth delivery of the Group's products, the Group has a nationwide network of over 2,500 representatives.

In 2018 Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank, in 2018, 2016 and 2015, the Best Consumer Digital Bank in Russia, and in 2017 and 2013 The Banker recognised it as the Bank of the Year in Russia. The bank's mobile app has been consistently praised by local and global independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).

Forward-looking statements

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and Tinkoff Bank. 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. The Group and Tinkoff Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff Bank 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 projections or forward-looking statements of the Group and Tinkoff Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, Tinkoff Bank and their respective operations.