Annual Report Joint-Stock Company "Rushydro" 2008
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APPROVED By decision of the Board of Directors of JSC “RusHydro” Minutes as of April 30th, 2009 No.75 APPROVED By the decision of the annual General Meeting of Shareholders of JSC “RusHydro” Minutes as of ___________No.____ Annual Report Joint-Stock Company "RusHydro" 2008 Acting Chairman of the Management Board of JSC "RusHydro” ___________________ /V.A. Zubakin/ April 27th, 2009. Chief Accountant of JSC "RusHydro" __________________________ /О.V. Otto/ April 27th, 2009. CONTENTS 1. General information on JSC “RusHydro” ...................................................................................4 1.1. Address of the Chairman of the Board of Directors and Chairman of the Management Board to shareholders ..................................................................................................................4 1.2. 2008 key events ....................................................................................................................7 1.3. The history of JSC “RusHydro’s” development ..................................................................8 1.4. RusHydro Holding’s structure as of December 31st, 2008.................................................10 2. Overview of JSC “RusHydro’s” operations ..............................................................................11 2.1. JSC “RusHydro” today. The Company’s position in the industry .....................................11 2.2. JSC “RusHydro’s” mission and strategy............................................................................14 2.3. JSC “RusHydro’s” development priorities........................................................................15 3. Corporate governance................................................................................................................16 3.1. Corporate governance principles........................................................................................16 3.2. JSC “RusHydro’s” governance structure ...........................................................................18 3.2.1. JSC “RusHydro’s” Board of Directors........................................................................20 3.2.2. JSC “RusHydro’s” Management Board ......................................................................23 3.2.3. The SDC’s Corporate Governance..............................................................................25 3.2.4. Control over financial and economic activity .............................................................26 3.3. JSC “RusHydro’s” joint-stock capital………………………………………………………28 3.3.1. Charter capital..............................................................................................................28 3.3.2. Information on additional 2008 issues of JSC “RusHydro” securities........................29 3.3.3. JSC “RusHydro’s” shares on the stock market ...........................................................30 4. Principal activities of JSC “RusHydro” ....................................................................................35 4.1. Production activity..............................................................................................................35 4.1.1. Generating assets .........................................................................................................35 4.1.2. Production results ........................................................................................................35 4.1.3. Technical rehabilitation and modernization ................................................................36 4.2 RusHydro’s sales activity....................................................................................................37 4.2.1. Results of the Company’s activities in the new wholesale electricity and capacity markets ..................................................................................................................................38 4.2.2. Capacity market...........................................................................................................38 4.3. Investment activity .............................................................................................................39 4.3.1. Principles of the investment policy .............................................................................39 4.3.2. 2008 investment program and its results. Key principles of the Company’s investment program..................................................................................................................................40 4.3.3 2009 investment program.............................................................................................43 4.3.4 RES (renewable energy source) projects......................................................................44 5. JSC “RusHydro’s” financinal results ........................................................................................45 5.1 The Company’s consolidated balance sheet, thousand rubles.............................................45 5.2. Financial results .................................................................................................................54 5.3. Analytical ratios..................................................................................................................61 6. Industry specific and financial risks for JSC “RusHydro’s” activity and their management....64 6.1. Industry specific risks.........................................................................................................64 6.2. Financial risks.....................................................................................................................65 7. Foreign economic and international activity .............................................................................67 8. Human resources policy ............................................................................................................69 8.1. Goals of the human resources policy..................................................................................69 8.2. Training and personnel development .................................................................................69 8.3. Labor and health protection................................................................................................70 9. Social responsibility ..................................................................................................................71 9.1. Corporate social responsibility...........................................................................................71 9.2. Charitable and sponsorship activity....................................................................................72 2 10. Environmental policy ..............................................................................................................74 11. Scientific and research activity......................................Ошибка! Закладка не определена. 12. Glossary of key terms and abbreviations.................................................................................78 Appendix 1……………………………………………………………………………………….79 Auditor resolution………………………………………………………………………………..79 Appendix 2 ....................................................................................................................................81 Audit Committee resolution for JSC “RusHydro,” as of the end of 2008.....................................81 Appendix 3 ....................................................................................................................................83 Information on members of the Company’s managing organs active in 2008..............................83 Appendix 4 ....................................................................................................................................87 JSC “RusHydro’s” branch.............................................................................................................87 Appendix 5 ....................................................................................................................................88 Subsidiaries and dependent companies of JSC “RusHydro”.........................................................88 Appendix 6 ....................................................................................................................................90 Information on Compliance with the Corporate Governance Code..............................................90 Appendix 7 ....................................................................................................................................99 2009 prinicipal investment projects for JSC “RusHydro”.............................................................99 Appendix 8 ..................................................................................................................................100 Transactions concluded by the Company in 2008 and recognized as interested-party transactions by the Federal law “On Joint-Stock Companies”........................................................................100 Contact information.....................................................................................................................110 3 1. General information on JSC “RusHydro” 1.1. Address of the Chairman of the Board of Directors and Chairman of the Management Board to shareholders Address of the Chairman of the Board of Directors and the Chairman of the Management Board to the Company’s shareholders Dear shareholders! The key results for JSC “RusHydro’s”