02.04.2012
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Results of the Board of Directors Meeting on March 30, 2012

JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces the results of the a regular meeting of the Board of Directors held in absentia March 30th, 2012.

 

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The Board of Directors has approved the report on insurance protection of RusHydro in 2011.

 

The cost of insurance in 2011 totaled RUR 796,3 mn or 0.7% below the planned figure. The difference is explained by reduction in the number of vessels on the Company's balance and changed tariff on voluntary health insurance of employees.

 

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The Board of Directors has approved the Company's report on charitable and sponsorship activity for 2011.

 

During 2011, RusHydro has continued implementation of long-term integrated charitable program, "The Sail of Hope", including core charitable projects of the Company. Also last year the Company participated in the charitable project "Clean energy to children", aimed at restoration and construction of gyms under open sky for children in the yards of Stavropol region and playgrounds in Saratov region.

 

In addition to the "Sail of Hope" program the Company has supported a number of projects aimed at promotion of spiritual and moral values and historic traditions revival. Overall amount of funds spent on charity and sponsorship in 2011 was more than RUR 797 mn.

 

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The Board of Directors has the composition of the Company's Management Board consisting of 13 people and has appointed to the Management Board Sergey Voskresensky, general director of RusHydro's subsidiary JSC Lenhydroproject.

 

Sergei Voskresensky was born in 1956. In 1984 he graduated from All-Union Politechnic Institute of Distance Learning. He holds PhD in economics. 

 

Since early 80s Mr. Voskresensky worked in structures of Ministry of Energy of the USSR being responsible for design and construction of hydrotechnical facilities. During 1992-2007 he  served as general director of JSC Special design and research institute Hydrospetsproect. Since 2007 he holds the position of the general director of JSC Lenhydroproject.  

 

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The Board Directors has amended Methodology of calculation of RusHydro's KPIs and RusHydro's annual KPIs by inclusion of financial leverage ratio.

 

The financial leverage ratio is determined as the value of borrowed capital to equity according to RAS as of the year end.

 

Thus, the annual KPIs of Rushydro include:

 

1. Cost management and simultaneously:

- cost reduction due to implementation of cost management program

- reduction of cost of goods(works, servicers) per unit of output.

 

2. Reliability criterion- and simultaneously:

- number of accidents on the facilities of the Company and its subsidiaries below determined threshold level;

- readiness ratio on the facilities of the Company and its subsidiaries;

 

3. EBITDA level;

 

4. Compliance with timeline for capacity commissioning, financing and execution of financing plan.

 

5. Financial leverage ratio.

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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.

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