Results of the Board of Directors on December 23, 2015

OREANDA-NEWS. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting on December 23, 2015.

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The Board of Directors has approved unconsolidated business-plan of PJSC RusHydro for 2016, including: annual and quarterly KPIs, investment program, quarterly schedule of financing and investment, program of increase of efficiency of operational and investment activity and cost reduction; took a note on the Company’s business plan for 2017-2020, including investment program for the period. The Board of Directors approved annual procurement plan for 2016.

RusHydro’s investment program for 2016-2020 provides for commissioning 915.48 MW and 687.8 GCal of additional capacity. In 2016, comprehensive reconstruction of the Sayano-Shushenskaya HPP will be completed. The construction of four priority projects in the Far East will continue. Financing of these projects in 2016-2020 is planned in the amount of RUB 46,933 mn (incl. VAT).

In 2016, construction of the Zelenchugskaya HPP-PSPP, implemented under capacity delivery agreement (DPM), is planned to be completed, adding 140 MW of capacity.

• completion of construction of the Boguchanskaya HPP (all nine hydro units of the plant have been timely commissioned);
• completion of construction of the Gotsatlinskaya HPP (in 2015, the plant has started to sell electricity and capacity on the wholesale market);
• Ust’-Srednekanskaya HPP adding 142.5 MW of capacity in 2018;
• Zaramagskie HPPs adding 342 MW of capacity in 2018;
• completion of construction of the Zagorskaya PSPP-2 in 2018, adding 420 MW in 2017 and another 420 MW in 2018 (cost of construction and the amount of funding will be adjusted based on the results of development and approval of project documentation amended for recovery after the erosion of the foundation soil under the powerhouse of the plant);
• Nizhne-Bureyskaya HPP adding 320 MW in 2016 (the plant might be launched providing that the reservoir floor is ready);
• Zaragizhskaya small HPP.

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The Board of Directors approved the list of annual and quarterly KPIs of PJSC RusHydro for 2016, as well as Methodology of calculation and valuation of RusHydro’s KPIs.

The list of RusHydro’s KPIs and Methodology of calculation and valuation of KPIs are developed in compliance with the Guideline for KPIs of the state-owned companies approved by the Federal Agency for State Property Management (Rosimushchestvo). New documents were developed in order to improve the efficiency of publicly owned joint stock companies as well as the government’s control over such companies.

Annual KPIs of Rushydro include:

1. Total shareholder return (TSR);
2. Return on equity (ROE);
3. Percent of small and medium business procurements;
4. Reliability criterion (simultaneously: number of accidents on the Company’s facilities below determined threshold level; readiness ratio on the Company’s facilities);
5. Compliance with timeline for capacity commissioning, funding and execution of financing plan;
6. Financial leverage ratio.

1. Current liquidity ratio
2. Reliability criterion - simultaneously:

• accident rate;
• 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 plants within specified period;
• execution of quarterly funding plans and the investment program YTD.

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The Board of Directors took a note on information on status of implementation of priority projects in the Far East: Yakutskaya TPP-2, 2nd stage of Blagoveshenskaya TPP, TPP in Sovetskaya Gavan’, Sakhalinskaya TPP-2.

Project of extension of Blagoveshenskaya TPP is practically completed. In December 2015 the first stage of the second phase of the plant will be commissioned. Installation of two boilers is underway on the site of TPP in Sovetskaya Gavan’, construction of main buildings continue, concrete casting of the 150 meter chimney is completed. Main construction phase has begun on the site of Sakhalinskaya TPP-2: concrete casting of the main equipment basement is underway. On Yakutskaya TPP-2 construction site work on main buildings has progressed to the point allowing heating. Installation of main and auxiliary equipment is underway.

• Igor Zadvornov, Head of Secretariat of deputy chairman of the Government of the Russian Federation-plenipotentiary representative of the President of the Russian Federation in the Far East Federal District.
• Andrei Kazachenkov, Deputy General Director, RusHydro.
• Alexander Korneychuk, General Director, Corporation for Development of the Far East.
• Vyacheslav Kravchenko, Deputy Minister of Energy of the Russian Federation
• Alexei Molsky, Deputy Chairmen of the Management Board, Federal Grid of United Energy System.
• Vasily Nikonov, Head of Energy Department, Rosneft .
• Alexander Osipov, First Deputy Minister for the Development of the Russian Far East.
• Denis Pilenieks, Deputy Director for control of development of the Unified Energy System, JSC SO UES.
• Sergey Tolstoguzov, Deputy General Director responsible for the Far East; General director, PJSC RAO ES of the East.
• Yury Trutnev, Deputy Prime Minister and Plenipotentiary Presidential Envoy to the Far Eastern Federal District.
• Alexei Chekunov, General Director, JSC The Far East Development Fund.
• Vladimir Tupikin, Deputy CEO of Association NP Market Council.
• Nikolay Shulginov, Chairman of the Management Board – General Director of PJSC RusHydro.