22.04.2019
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Results of the Board of Directors Meeting held on April 19, 2019

April 22, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held in a meeting on April 19, 2019.


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The Board of Directors approved PJSC RusHydro’s dividend policy.


The Board of Directors supported the management’s recommendation to change the dividend calculation methodology.


The new provision stipulates for a base scenario of dividend payout ratio at 50% of the company’s IFRS net profit. At the same time, a minimal payout level is set at the average amount of dividends paid over the last three years. Such measure guarantees shareholders a minimal dividend amount and improves the company’s investment attractiveness. The changes to the dividend policy will be in effect for three years.


According to the previous provision of the dividend policy, the minimal payout ratio was set at 5% of the Group’s IFRS net profit. Nonetheless, over the last three years, the company has paid dividends at 50% of its net profit. Total amount of dividends paid over that period amounted to RUB 46 bn including a record amount of RUB 19.9 bn in 2017. RusHydro is committed to long-term dividend growth in the interest of shareholders and company’s development priorities.


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In order to stabilize the financial condition of JSC DGK the Board of Directors approved extension of the grace period on JSC DGK loan provided within the framework of the forward contract with VTB Bank (PJSC) until March 27, 2021 (inclusive).


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The Board of Directors was informed of the company’s corporate governance status in the form of an integrated report. The Board took into consideration the Group’s corporate governance evaluation by the company’s internal audit, external independent corporate governance evaluation as well as self-assessment of the Group’s Board and noted positive dynamics.


According to the company’s 2018 external audit evaluation conducted by instruction of the audit committee the Group’s corporate governance system was considered effective as key figures are improving.


In September 2018, Russian Institute of Directors, an independent expert-consulting and training center, upgraded RusHydro’s corporate governance rating to 8, the highest national corporate governance rating among participants. RusHydro is also the first company in the utilities sector to receive such rating. The following factors were used to evaluate the Group’s corporate governance: shareholder rights, management’s function, disclosure of information, social responsibility and sustainable development.


According to results of TopCompetence, an independent consulting expert, RusHydro has significantly improved its corporate governance and has entered the top 10 list of Russian companies ranked by the quality of corporate governance.


Self-assessment results of the Group’s Board of Directors are consistent with the independent evaluation conducted in 2018 with PwC as an independent consultant in terms of strengths and focus on the company’s continuous development.


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 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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