QUARTERLY REPORT Public Joint-Stock Company Federal Hydrogeneration Company Rushydro for Q2 2017
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QUARTERLY REPORT Public Joint-Stock Company Federal Hydrogeneration Company RusHydro Code of the Issuer: 55038-E for Q2 2017 Address of the issuer: 43 Dubrovinskogo St., bldg. 1, Krasnoyarsk, Krasnoyarsk Krai, 660017 The information contained herein is subject to disclosure pursuant to the securities legislation of the Russian Federation ___________________ N.G. Shulginov Chairman of the Management Board - Chief Executive Officer (CEO) Date: 14. August 2017 Director of Department of Corporate Accounting and Reporting - ___________ Yu.G. Medvedeva Chief Accountant Date: 14. August 2017 Contact person: Novgorodtsev Anton Yurievich, Head of the Equity and Disclosure Directorate of Corporate Governance and Property Management Department Phone: +7 800 333 8000 Fax: +7(495) 225-3737 E-mail: [email protected] The address of the Internet site (sites) where the information contained herein is to be disclosed: Http://www.e-disclosure.ru/portal/company.aspx?id=8580, , www.rushydro.ru 1 Table of Contents I. Information on Bank Accounts, Auditor (Audit Organisation), Appraiser, and Financial Advisor of the Issuer, as well as on Persons who Have Signed the Quarterly Report ................................................................................ 6 1.1 Information on the Issuer's Bank Accounts ....................................................................................................... 6 1.2 Information on the Issuer's Auditor (Audit Organisation) ................................................................................ 6 1.3. Information on the Issuer’s Appraiser(s).......................................................................................................... 9 1.4. Information on the Issuer's Consultants ........................................................................................................... 9 1.5. Information on Persons who Have Signed the Quarterly Report ..................................................................... 9 II. Key Information on Financial and Economic Performance of the Issuer ......................................................... 10 2.1. The Issuer’s Financial and Economic Performance Indicators ...................................................................... 10 2.2. The Issuer's Market Capitalization ................................................................................................................. 10 2.3 The Issuer's Liabilities .................................................................................................................................... 11 2.3.1 Borrowed Funds and Accounts Payable ....................................................................................................... 11 2.3.2 Credit History of the Issuer .......................................................................................................................... 12 2.3.4 Other Liabilities of the Issuer ....................................................................................................................... 19 2.4. Risks Inherent to Acquisition of Equity Securities Being Placed (Placed) .................................................... 19 2.4.1 Industry Risks .............................................................................................................................................. 20 2.4.2 Country and Regional Risks ......................................................................................................................... 24 2.4.3 Financial risks .............................................................................................................................................. 26 2.4.4 Legal Risks ................................................................................................................................................... 27 2.4.5 Risks of loss of goodwill (reputation risk) ................................................................................................... 27 2.4.6 Strategic Risk ............................................................................................................................................... 27 2.4.7 Risks Related to the Issuer's Activities ........................................................................................................ 27 III. Detailed Information on the Issuer .................................................................................................................. 31 3.1. History of the Issuer's Foundation and Development .................................................................................... 31 3.1.1. Information on the Issuer's Corporate Name (Name) .................................................................................. 31 3.1.2. Information on State Registration of the Issuer ........................................................................................... 32 3.1.3. Information on Foundation and Development of the Issuer ........................................................................ 32 4.1.3. Contact Information .................................................................................................................................... 33 3.1.5. Taxpayer Identification Number ................................................................................................................. 34 3.1.6. Branches and Representative Offices of the Issuer ..................................................................................... 34 3.2 Core Business Activity of the Issuer ............................................................................................................... 34 3.2.1. The Issuer's Major Economic Sectors ......................................................................................................... 34 3.2.2. Core Business Activity of the Issuer ........................................................................................................... 34 3.2.3. Materials, Goods (Raw Materials) and Suppliers of the Issuer ................................................................... 35 3.2.4. Sales Markets for Products (Works, Services) of the Issuer ....................................................................... 35 3.2.5. Information on the Issuer's Authorizations (Licenses) or Permits for Separate Types of Works ................ 37 3.2.6. Information on Activities of Certain Kinds of Issuers ................................................................................ 38 3.2.7. Additional Information on Issuers, the Primary Line of Business of which is Mining Operation .............. 38 3.2.8. Additional Information on Issuers, the Primary Line of Business of which is Rendering Services ............ 41 3.3 Plans for the Issuer’s Future Activities .......................................................................................................... 41 3.4. The Issuer's Participation in Banking Groups, Banking Holdings, Holdings, and Associations .................... 42 3.5. Companies Controlled by the Issuer and Having Substantial Significance for it ........................................... 44 3.6 Composition, Structure and Value of the Issuer's Fixed Assets, Information on Plans for Acquisition, Replacement, and Retirement of Fixed Assets, as well as on All Encumbrances on the Issuer's Fixed Assets .... 50 IV. Information on Financial and Economic Activities of the Issuer .................................................................... 52 4.1 Financial and Economic Performance of the Issuer ........................................................................................ 52 4.2. Liquidity of the Issuer, Capital and Fixed Asset Adequacy ........................................................................... 52 4.3. Financial Investments of the Issuer ................................................................................................................ 53 4.4 Intangible Assets of the Issuer ........................................................................................................................ 57 4.5. Information on the Issuer's Policy and Expenses in the Area of Scientific and Technical Development, in relation to Licenses and Patents, New Developments, and Research ................................................................... 58 4.6. Analysis of Development Trends in the Area of the Issuer's Core Business .................................................. 58 2 4.7 Analysis of Factors and Conditions Influencing the Issuer's Activities .......................................................... 60 4.8. Competitors of the Issuer ............................................................................................................................... 60 V. Detailed Information on Members of the Issuer's Management Entities, the Issuer's Bodies, Monitoring Financial and Economic Activities, and Backgrounds of the Issuer's Employees (Workers) ............................... 62 5.1 Information on Structure and Terms of Reference of the Issuer's Management Entities ................................ 62 5.2 Information on Members of the Issuer's Management Entities ....................................................................... 68 5.2.1. Composition of the Board of Directors (Supervisory Board) of the Issuer ................................................. 68 2.2.5. Information on the Issuer's Sole Executive Body ....................................................................................... 82