29.11.2012
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Results of the Board of Directors on November 28, 2012

JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on November 28, 2012.


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The Board of Directors approved the list of annual and quarterly KPIs of the Company for 2013.


The following indicators were approved as annual KPIs:


1. Cost management - simultaneously:

  • reduction of costs through implementation of cost management program;
  • reduction of costs for acquisition of goods (works, services) on a per-unit basis.

2. Reliability criteria - simultaneously:

  • exclusion of the number of emergencies exceeding the limit value in the Company and the Company’s subsidiaries;
  • availability factor in the Company and the Company’s subsidiaries.

3. EBIDTA level

4. Execution of capacities commissioning plan and financing and development plan.

5. Financial leverage ratio


The following indicators were approved as quarterly KPIs:


1. Reliability criteria - simultaneously:

  • accident rate (in relation to the previous year) in the Company and the Company’s subsidiaries;
  • absence of fatal accidents or group health injuries at the workplace, if there is an injured person, in the Company and subsidiaries generating electricity;
  • readiness certificate receipt (availability) for the Company’s and the subsidiaries’ plants within specified period.

2. Current liquidity ratio

3. Execution of quarterly schedules of financing and implementation of investment program on an accrual basis year-to-date.


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The Board of Directors has approved the list of the Company’s insurers for 2013.


The Board of Directors has approved the Insurance Program of RusHydro for 2013. The insurance coverage expenses for the next year increased by 2.2% according to the document. The slight increase in insurance expenses is driven by the coverage extension, increase in the Company’s assets, insurance cost and expenses for additional health insurance of employees.


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The Board of Directors has approved voluntary medical insurance agreement between RusHydro and SK Alliance, qualified as an interested party transaction, and determined the price limit of the agreement in the amount of RUR 48,390,594.62.


The Board of Directors has approved the agreement on voluntary group health and accident insurance between RusHydro and SK Alliance, qualified as an interested party transaction, and determined the price limit of the agreement in the amount of RUR 3,390,649.88.


These agreements will be effective from January 01, 2013 to December 31, 2013.

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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