25.06.2019
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Results of the Board of Directors Meeting in absentia on June 21, 2019

June 25, Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on June 21, 2019.


 

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The Board of Directors approved the report on interim results of the business plan execution for the first quarter of 2019, including the report on execution of investment program and comprehensive modernization program of hydropower generating facilities.


PJSC RusHydro’s investment program amounted to RUB 10.5 bn or 94.9% of the planned figure while the company’s construction subsidiaries investment program amounted to RUB 2.7 bn or 104.6% of plan. Financing of comprehensive modernization program amounted to RUB 7.8 bn or 95.2% of plan.


PJSC RusHydro’s net profit reached RUB 11.94 bn. In the first quarter of the year, the company commissioned 5 MW of electric capacity following rerating of the equipment in the scope of comprehensive modernization program.


Electricity production and net output in the first quarter was below plan by 5.6% and 5.3%, respectively, on the back of reduced water inflows to the majority of reservoirs of HPPs of the Volga-Kama cascade as compared to higher than normal water inflows in the first quarter of 2018.


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The Board of Directors took into consideration the report on performance of the Group’s management for 2018.


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The Board of Directors approved the report on execution of the company's comprehensive procurement program for the first quarter of 2019.


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The Board of Directors prematurely terminated the powers of Sergey Ivanov in the Audit Committee and Nominations and Compensations Committee and elected Pavel Grachev, an independent director, to the above-mentioned committees.


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The Board of Directors resolved to make changes to the Unified provision on procurement for RusHydro’s needs providing for implementation of session of rights in agreements with small and medium size businesses.


The changes are enacted to support small and medium-sized businesses in compliance with the order of the Government of the Russian Federation.


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The Board of Directors approved establishing of Centralized Service Center (CSC) within RusHydro Group to carry out accounting and tax services as well as financial reporting for RusHydro Group’s entities.


Centralized accounting conforms with the industry’s best practices and is widely used by companies in utilities sector. Establishment of CSC will allow standardizing, unifying and optimizing processes as well as reducing the time and cost necessary to prepare and disclose consolidated financial statements. CSC will operate as a part of the functioning controlled company.


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The Board of Directors approved the progress report on implementation of professional standards in the Group’s lines of business in the fourth quarter of 2018 and first quarter of 2019. During the period, 236 employees underwent training. The Corporate Hydropower University developed 21 training and continuous education programs.


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The Board of Directors took into consideration information on the status of execution of thermal generation priority projects in the Far East as of March 31, 2019. Currently, RusHydro is completing construction of two thermal plants in the region- Sakhalinskaya GRES-2 and CHP in Sovetskaya Gavan.


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The Board of Directors took into consideration information on the results of compliance assessment of Alexey Chekunkov, candidate to the Board of Directors up for election at the General Shareholders Meeting, with the independence criteria provided by the listing rules of PJSC Moscow Exchange and has determined Chekunkov as independent.


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The Board of Directors approved changes to the Decision on the additional issue of securities and to the Securities Prospectus.


Additional share issue expiring in August of 2019 is necessary to finance the construction of two high-voltage Pevek-Bilibino power lines. Since the Federal Law on the 2019 Federal budget allows for financing the project in 2020 as well the Group has initiated extension of securities issue for the next year.

 


High voltage power lines construction project in Chukotka is carried out in connection with upcoming modernization of Chaun-Bilibinskiy energy hub following decommissioning of of Bilibino nuclear power plant that has reached the end of its service life. Construction of 110 kV high voltage overhead power lines will further improve power supply in the Chukotka autonomous region and provide stable growth of the Far East energy sector.


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The Board of Directors also took into consideration the program on development of the power sector to facilitate rapid economic development of the Far East Federal District.


Its ultimate goal lies in providing consumers with guaranteed electricity through development of the centralized power system. The program encompasses modernization of thermal power plants in accordance with social and economic demand.


The program is the fundamental document on development of the Far East power system in the medium and long-term perspective. Its main priorities include satisfying potential demand for electricity and capacity within the next ten years upon implementation of major investment projects in the region including in territories of advanced social and economic development.

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PJSC “RusHydro” (“RusHydro”). One can identify forward-looking statements by terms such as “expect”, “believe”, “anticipate”, “plan”, “aim”, “target”, “forecast”, “project”, “should”, “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 and political conditions, our competitive environment, risks associated with operating in Russia and rapid technological and market changes in our industries, as well as many other risks specifically related to RusHydro and its operations.
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