Results of the Board of Directors Meeting on October 24, 2018
PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting on October 24, 2018.
Resolutions passed on Items of the agenda:
Item 1: Priority areas of the Company's activities: Consideration of the results of comparing the level of technological development and the values of key performance indicators of innovative activities of RusHydro Group with the level of development and indicators of similar leading companies.
The resolution adopted:
1. To take note of the Report on comparison of the level of technological development and the values of key performance indicators of the innovative activities of RusHydro Group with the level of development and indicators of similar leading companies (Schedule No. 1 to the Minutes).
2. To consider fulfilled in time:
- Clause 1 of the Resolution of the Company's Board of Directors on Item 4.4 (Minutes No. 263 dated December 28, 2017, as amended by Minutes No. 271 dated June 1, 2017, hereinafter referred to as the "Resolution") in terms of comparing the level of technological development and the values of key performance indicators of the innovative activities of RusHydro Group and the indicators of similar leading companies;
- Item 2 of the Resolution regarding the submission of the results of comparing the level of technological development, proposals for updating the innovative development program and the long-term development program, and proposals for the composition and values of the integral key performance indicator for 2019 to the Ministry of Economic Development and the Ministry of Energy of Russia.
3. To shift the deadline for fulfillment of paragraph 2 of the Resolution in terms of submitting the results of a comparison of the level of technological development to the Board of Directors of the Company after receiving approval of the comparison results by the Interdepartmental Commission for Technological Development of the Presidium of the Presidential Council for Economic Modernization and Innovative Development of the Russian Federation, but not later than March 31, 2019.
Item 2: Approval of the Report on progress in the implementation of the Action Plan for the sale of non-core assets of the Company for the 2nd and 3rd quarters of 2018.
The resolution adopted:
1. Note the work that has been done by the Company on the sale of non-core assets and optimization of the structure of the RusHydro Group for 3 years.
- Approve the Report on the implementation of the Action Plan for the sale of non-core assets of PJSC RusHydro for the 2nd and 3rd quarters of 2018 (Schedule No. 2 and No. 3 to the Minutes).
- Introduce the following changes to the Register of Non-Core Assets of the Company approved by the decision of the Board of Directors of the Company dated December 28, 2017 (Minutes No. 263):
- include the CJSC "Verhne-Narynsky HPP" facility with the method of disposal "sale";
- change the planned method of disposal of the JSC "Technopark Rumyantsevo" facility from "preservation" to "liquidation".
- Introduce the following changes to the Action Plan for the Sale of Non-Core Assets of RusHydro PJSC for the 4th quarter of 2017 - 2018, approved by the resolution of the Board of Directors of the Company dated December 28, 2017 (Minutes No. 263):
- change the deadline for the sale of JSC IESK to the 4th quarter of 2019;
- change the deadline for the liquidation of HydroEngineering Siberia JSC to the 1st quarter of 2019;
- change the deadline for gratuitous transfer (donation) of railway infrastructure to Izvestkovaya-Chegdomyn railroad (1/6 of the share accounting for 78 facilities) to the 1st quarter of 2019.
The Management Board of the Company is instructed to initiate adjustment of the Directives of the Government of the Russian Federation No. 7601p-P13 dated October 7, 2016, in terms of payment for the authorized capital of SNRG LLC only with shares of Malaya Dmitrovka JSC.
Item 3: Considering matters of significance to the Company: Execution of instructions received in the course of the Annual General Meeting of the Company's Shareholders on June 27, 2018.
The resolution adopted:
To take note of information on progress of execution of the instructions received in the course of the annual General Meeting of Company's Shareholders on June 27, 2018 (Schedule No. 4 to the Minutes).
RusHydro Group is one of Russia's largest generating companies. RusHydro is the leading producer of renewable energy in Russia with over 400 generating facilities in Russia and abroad. The company also manages a number of R&D, engineering and electricity retail companies. Group's thermal assets are operated by subsidiary - RAO Energy System of East in the Far East of Russia. Total electricity generation capacity of the Group is 39 GW, heat capacity - 18.5 thousand GCal/h.
Russian Federation owns 60.56% in RusHydro, the rest is held by other institutional and individual shareholders (over 360,000). The company's stock is traded on Moscow Exchange (MOEX), and included in MSCI EM и MSCI Russia indexes. Company's GDRs in the IOB section of LSE, ADRs - in OTCQX.
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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 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.