Key events

February

The Russian Institute of Directors confirmed the corporate governance rating of PJSC RusHydro – Level 8 “Good Corporate Governance Practices”

National corporate governance rating is an indicator of the corporate governance quality, it helps to compare the level of corporate governance development and the risks associated with it. The rating is a tool for evaluating and improving the corporate governance practice in the Company and improving interaction with the stakeholders.

April

The Board of Directors of PJSC RusHydro approved a new version of the Environmental Policy of PJSC RusHydro

Environmental Policy defines the key tasks for environmental protection activities. The document is the ground for planning and implementing environmental measures, creation and development of the environmental management system in PJSC RusHydro and its subsidiaries.

The Board of Directors of PJSC RusHydro approved a new version of the Environmental Policy of PJSC RusHydro

The Board of Directors of PJSC RusHydro approved a revised version of the RusHydro Code of Corporate Conduct

The new version of the document takes into account the recommendations of the Corporate Governance Code approved by the Bank of Russia, as well as other requirements and recommendations issued by the regulatory bodies.

Construction workers of the Nizhne-Bureyskaya HPP blocked the Bureya river in the Amur region

This is the most important stage of the Nizhne-Bureyskaya HPP construction, after which the waters of the river pass exclusively through the weir dam.

June

The Board of Directors of PJSC RusHydro approved the RusHydro Group Development Strategy for the period up to 2020 with a perspective for up to 2025

Unlike the previous document, the new Strategy defines goals and directions of growth for the entire RusHydro Group, including the Far Eastern assets.

The Board of Directors of PJSC RusHydro approved the RusHydro Group Development Strategy for the period up to 2020 with a perspective for up to 2025

The leaders of RusHydro and Voith Hydro laid a symbolic stone in the foundation of a new plant in the city of Balakovo

The Volgagidro plant, a joint venture of RusHydro and Voith Hydro, is going to be part of Voith Hydro’s international production system. Under the license agreement, the new plant can apply unique developments and technologies for the equipment design and production.

Annual General Meeting of the Shareholders of PJSC RusHydro approved a record dividend (for 2015) – 15.01 billion rubles, that is two and a half times more than a year before

October

А solar power station with a capacity of 36 kW was put into operation in the village of Verkhnyaya Amga in Yakutia

The new power facility allows giving up the usage of the high-cost diesel generation in the summer time.

November

Two new solar power plants with the total capacity of 100 kW were put into operation in the villages of Innyah and Delgay in Yakutia

Solar power plants are integrated into existing power supply systems, based on diesel power plants.

Two new solar power plants with the total capacity of 100 kW were put into operation in the villages of Innyah and Delgay in Yakutia

RusHydro Group completed the deal to sell the dams of HPP of the Angarsk cascade

The dams of HPP of the Angarsk cascade were acquired by LLC Telmamskaya HPP (100% subsidiary of JSC EuroSibEnergo). The selling price of the dams amounts to 10.95 billion rubles, including VAT. The transaction allowed PJSC RusHydro to get a significant source of cash, improve the balance sheet and financial results and maximize the RusHydro Group’s business value from dam management in comparison with the lease of dams.

RusHydro Group completed the deal to sell 100% of the shares of the energy supply company JSC ESK

Purchasers were Russian legal entities, members of the group PJSC Inter RAO. The transaction amount was 4,100 million rubles. Settlements of the transaction were completed in the first quarter of 2017.

December

Zelenchukskaya HPP-PSPP was put into operation in Karachay-Cherkessia

In the result of putting Zelenchukskaya HPP-PSPP into operation, the level of the republic’s own electricity supply increases to 45%, as well as the quality of the region’s energy supply. Zelenchukskaya HPP-PSPP is the first new pumped storage power plant with water heads of 220-230 meters. The average electricity production is 162 million kW * h.

Zelenchukskaya HPP-PSPP was put into operation in Karachay-Cherkessia

Zaragizhskaya HPP was put into operation in Kabardino-Balkaria

Zaragizhskaya HPP allows to significantly reduce the energy deficit in the region. The plant has the installed capacity of 30.6 MW and the average electricity production of 114 million kWh. Its unique feature is the absence of a dam, the pressure on hydro turbines is created due to the natural fall of the terrain. During the construction of the HPP, valuable land was not flooded and resettlement of the local population was not required.

Zaragizhskaya HPP was put into operation in Kabardino-Balkaria

EVENTS AFTER REPORT DATE (January – June 2017)

January

PJSC RusHydro was included into the new FTSE1 sustainability index

FTSE are stock indexes developed by an independent agency FTSE Russel. The new FTSE4Good Index Series is designed to measure the performance of the companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE indexes are among the most influential stock indicators.

February

After five years of Complex Modernization Program implementation the overall capacity of HPPs increased by 267 MW

The Program of Complex Modernization covers all branches and a number of subsidiaries of RusHydro. During five years of its implementation, 39 hydro turbines, 23 hydrogenerators, 41 transformers, more than 6,000 auxiliary and electrical equipment units were fully replaced. In addition, a large number of equipment was reconstructed with the replacement of individual units. As part of the Program, an agreement was concluded to replace all hydroelectric generators of the Votkinskaya HPP and the Rybinskaya HPP, as well as the turbines of the Saratovskaya HPP, the Novosibirskaya HPP, the Zhigulevskaya HPP and Volzhskaya HPP

March

RusHydro completed the deal on refunding the loan portfolio of RAO ES of the East companies via equity financing raised from VTB Bank

PJSC VTB and PJSC RusHydro signed an agreement on the provision of 55 billion rubles equity finance. The raised funds were fully directed to pay off the debt load of the Far Eastern energy companies. PJSC RusHydro and PJSC VTB signed a non-deliverable forward contract for shares of PJSC RusHydro for a 5-year period.

April

April 1, 2017, the management system of RAO ES of the East (RusHydro subsidiary structure) has changed. The management of the Holding’s subsidiaries was transferred to the RusHydro Far East Division

The integration of headquarters of PJSC RAO ES of the East and PJSC RusHydro is one of implementation stages of the RusHydro Group Strategy, it is aimed at improving the financial status of the Far Eastern energy industry and the quality of its management.

The unique security and rescue mission “Mazai” aimed at prevention of the death of wild animals took place in the flood zone of the reservoir of Nizhne-Bureyskaya HPP

Naturalists, employees of the Bureysky Nature Park and volunteers took part in this activity. With the assistance from power engineers, the participants monitored the reservoir, moreover they repelled animals from the flooding zone, caught and transported them to safe places.

May

PJSC RusHydro has confirmed its participation in the Anti-Corruption Charter of Russian Business

PJSC RusHydro has sent a declaration to the Russian Union of Industrialists and Entrepreneurs (RUIE) on compliance with the provisions of the Anti-Corruption Charter of Russian Business. The Declaration lists the on-going anti-corruption measures of the Company and ascertains that the internal documents of PJSC RusHydro are adopted to prevent and combat corruption and are consistent with the Charter. After consideration, the Company’s participation in the Anti-Corruption Charter of Russian Business has been extended for two years.

June

PJSC RusHydro and SC Rosatom signed a cooperation agreement

At the St.Petersburg International Economic Forum, SC Rosatom and RudHydro signed a cooperation agreement. In the framework of the agreement, the parties plan joint activities in technologies for renewables and electric energy accumulation systems.

The Northern Ossetian branch of PJSC RusHydro and A.N.Severtsov Institute of Ecology and Evolution (RAS) signed an agreement on restoration of the leopard population

The parties signed an agreement on scientific and technical cooperation to restore the population of the Asiatic leopards in the Republic of North Ossetia-Alania. Leopard is listed in Annex I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and it is included in the Red Book of the Russian Federation as the endangered species.