June 27, 2018. Moscow, Russia. Today RusHydro is holding the Annual General Meeting of Shareholders (AGM). Top managers of the Company are reporting to its shareholders on financial and operational performance of RusHydro and key investment projects implemented in 2017.

The AGM agenda includes 18 issues. Among them are approval of the Company’s 2017 financial accounting statements, amount of dividends, terms and forms of their payment, election of members of the Board of Directors and the Internal Audit Commission of the Company, approval of the Auditor, and other issues.

The Annual Report of RusHydro for 2017 is submitted to the AGM for approval – for the first time it consolidates the annual report on financial, economic and operational results and the report on corporate social responsibility and sustainable development.

Following the launch of new and modernization of existing facilities, combined with effective managing of energy and water regimes, electricity production of RusHydro, including Boguchanskaya HPP, increased by more than one billion kWh and reached 140.3 bn kWh in 2017 – 13% of all electric power generated in Russia. Strong operational performance of the thermal power facilities of RusHydro in the Far East, which produced 32.82 bn kWh in 2017, also contributed to the electric power generation results. Heat supply by the thermal power facilities of RusHydro amounted to 30.1 mn Gcal.

The installed capacity of RusHydro's power plants, including Boguchanskaya HPP, reached 39.04 GW in 2017, the installed heat capacity – 18.5 thousand Gcal/h.

RusHydro is the leader in field of the "clean" energy generation in Russia: 61% of it is generated by HPPs, GeoPPs, solar and wind power plants of RusHydro.

A landmark event for 2017 was the commissioning of the first stage of Yakutskaya GRES-2 – one of four power plants being constructed by RusHydro in the Far East under the decree of the President of the Russian Federation.

In 2017, the implementation of RusHydro’s Comprehensive Modernization Program resulted in the upgrade of ten hydroelectric units with a total capacity of 956 MW at six hydropower plants, which increased the capacity of RusHydro’s existing HPPs by 42.5 MW.

Three hydro turbines at Zhigulevskaya HPP were replaced in 2017, hence RusHydro completed the project to replace all 20 hydro turbines at the station with new ones. Two units were replaced at Volzhskaya HPP, one hydro unit – at Saratovskaya and Novosibirskaya HPPs. The first unit at Votkinskaya HPP, scheduled for replacement, was put into operation. The modernization process at Cheboksarskaya HPP made it possible for two hydro turbines to operate in an adjustable-blade mode, which significantly improved their performance.

The construction of Vostochnaya CHPP in Vladivostok and Sakhalinskaya GRES-2 is approaching the final straight, while the construction of CHPP in Sovetskaya Gavan and Ust-Srednekanskaya HPP is progressing in line with the schedule as hydroelectric unit No. 3 of Ust-Srednekanskaya HPP is set for commission in 2018. The construction of Zaramagskaya HPP-1 is underway – a hydropower station in North Ossetia that is unique due to its technical parameters.

In 2017 RusHydro Group demonstrated sound operational and financial results. The consolidated revenue for the year amounted to RUB 380.9 bn, consolidated EBITDA increased by 3.7% and reached a record high of RUB 104 bn. The IFRS net profit amounted to RUB 22.4 bn.

2017 saw successful implementation of RusHydro’s strategic task to optimize the loan portfolio and improve the financial stability of RusHydro Group. At the end of the year RusHydro and Vnesheconombank reached an agreement to cancel obligations of RUB 26 bn under the loan agreement of Boguchanskaya HPP, which decreased the debt/EBITDA ratio of RusHydro to a level of 1.4. These achievements were rated by the Big Three credit rating agencies and the Russian Analytical Credit Rating Agency (ACRA), which upgraded RusHydro’s credit ratings.

Successful placements of loan participation notes on the global exchange market in 2017 and 2018 confirmed RusHydro’s status as a reliable borrower. Investor demand for RusHydro’s securities significantly exceeded the offer. The first issue was considered to be the best rouble deal on the international market according to Cbonds.

Development of the regions of presence continues to be one of the top priorities for RusHydro Group. The Group’s facilities are major employers in their regions, and projects to build up new energy facilities help create additional jobs. RusHydro Group is one of the main taxpayers in the regions in which it operates: in 2017 tax payments to budgets of different levels totaled RUB 80.4 bn (+11% by 2016).

In 2017 RusHydro confirmed its status as one of the leaders among Russia’s environmentally and socially responsible businesses in the fuel and energy sector – the Company became one of the leaders in the Russian Union of Industrialists and Entrepreneurs (RSPP) index of sustainable develop­ment "Responsibility and Openness". Besides that RusHydro entered into the UK’s FTSE4Good Emerging Index, which comprises businesses committed to sustainable development.

Results of the Annual General Meeting of Shareholders of RusHydro

Materials of the Annual General Meeting of Shareholders of PJSC "RusHydro" (AGM) held on 27 June, 2018