TCS.L Regulatory News (TCS)

TCS Group Holding PLC Key Managers Increase Stakes

Moscow, Russia - 7 July 2016. TCS Group Holding PLC (TCS LI) (the "Group"), Russia's leading provider of online retail financial services, including Tinkoff Bank and Tinkoff Insurance, today announces the Group has been notified that Altruco Trustees Limited, as the trustee of the ESOP trust and private trusts of the seven key managers of Tinkoff Bank, has acquired for the private trusts of four ESOP participants an additional 14,359 GDRs on 29 June 2016 at an average price of USD 5.11 per GDR, 20,000 GDRs on 1 July 2016 at an average price of USD 5.00 per GDR, and on 5 July 2016 99,224 GDRs at an average price of USD 5.10 per GDR.

On 16 June 2016, Altruco Trustees Limited, as the trustee of the ESOP trust, cancelled its holding of 1,956,414 GDRs; it now holds its entire entitlement in the form of A shares. The level of ESOP's combined holding of GDRs and A shares is unchanged since April 2015.

This brings Altruco Trustees Limited's current aggregate holdings in the Group to 3,162,626 A shares for the ESOP, and 379,426 GDRs for the private trusts.

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About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. The Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers.

Tinkoff Bank's product range includes credit, debit and prepaid cards, deposits, co-branded cards, and agent-based mortgage products. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

As per its five-year strategy, the Group has the ambition to become a financial marketplace, offering both own brand and partner products.

As at 1 May 2016, the bank was the second largest player in the Russian credit card market, with a 9% market share. As at 1 April 2016, the bank issued over 5.8 m credit cards. The bank is well capitalised: its CBR N1 total capital ratio stood at 12.3% as at 1 May 2016.

The Group's 1Q 2016 IFRS net income amounted to RUB 1.9 bn.

In 2015, the Global Finance magazine named Tinkoff Bank as the Best Internet Retail Bank in Russia. In 2013, Tinkoff Bank was recognised as the Bank of the Year and the most profitable bank in Russia by the Banker magazine, the world's premier banking and finance resource, published by the Financial Times Group.

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.