Chapter 2
2.1. The company’s strategy
2.1.1. STRATEGY OF PJSC RUSHYDRO
The Company’s strategy is presented as the Strategic Plan till 2015 with a view to 2020 (Strategic plan)3. Currently, the Company designs The Development Strategy of RusHydro Group for the period up to 2020 with the outlook for 2025. The Strategy will be approved in 2016.
2.1.1.1. Mechanisms of Strategy Implementation
The main instruments to implement the Strategy are the Company’s Growth Priorities for the current year and the Strategy Implementation Plan, which includes the Company’s development priorities.
The long-term Development Programme (LTDP) is formed for a five-year period and it defines the basic principles and directions providing for development of RusHydro Group aimed at effective usage of power resources, creation of conditions providing for reliability of the UES and advanced usage of energy sources to benefit shareholders and society. For the LTDP details refer to item 2.1.2.
RusHydro’s system of strategic management connects the strategic management processes with the motivation system.
The Strategy Implementation Plan (SIP) includes annual tasks and indicators aimed at achieving the strategic targets of the Company. The Plan is formed to communicate and operationalize the Strategy for a one-year period. It contains tasks and indicators for the current year indicating the Company’s officer and organisational units responsible for their implementation.
The Company’s development priorities are named in a formalized list of key strategic goals, projects and programmes, the implementation of which ensures achievement of the Company’s strategic goals and maximum synergy during the current year. The purpose of the Priorities is to concentrate the Company’s resources on the most important targets and indicators.
2.1.1.2. Implementation of the Strategy of PJSC RusHydro
Ensuring reliability and modernisation of operating assets
The Company continued to implement the comprehensive modernisation programme for PJSC RusHydro’s generating facilities. As a result of programme implementation, the installed capacity of the existing generating facilities increased by 55.5 MW.
2015 priority achieved
Providing for stable functioning of hydropower facilities during flood periods
The Company continues to implement the Construction Programme for new hydropower facilities on tributaries of the Amur river to regulate the spillway in flood periods.
On the first stage of development of the operational planning model for flood protection HPPs in the Far East, the system of hydropower regimes modeling at the Bureyskaya HPP has been created.
Priority moved to 2016
The increase in installed capacity through implementation of the investment projects
In 2015, in terms of the Investment Programme implementation the Zelenchukskaya HPP-PSPP with the installed capacity of 140 MW, but based on the results of analysis of RusHydro’s investment programme implementation construction schedules of of the Zelenchukskaya HPP-PSPP were revised, providing for completion of the project implementation in 2016.
Priority moved to 2016
Providing quality service to customers of power retail companies
The Company continued to implement a comprehensive programme aimed at improving customer loyalty for the trade companies managed by JSC ESC RusHydro.
2015 priority achieved
Improving competitiveness of project complex
The approaches for organisation of PJSC RusHydro Science & Engineering and Technological Complex Management System were developed. In 2016, the Company plans to approve the Concept for reorganisation of PJSC RusHydro Science & Engineering and Technological Complex Management System.
Priority moved to 2016
Creating an effective innovation management system and forming a continuous innovation process in the Company
Regulation on development and execution procedure for the PJSC RusHydro Innovative Development Programme was approved for the purpose of methodological support for the Innovative Development Programme updating.
2015 priority achieved
Expanding the Company’s presence on the foreign markets
In terms of implementation of the Upper Naryn Cascade of HHPs (Kirghizia) construction project the project documentation on the Akbulunskaya HPP and Narynskaya HPP-1 has been developed in accordance with the contract for design and survey works between CJSC Upper Naryn HPPs and JSC Lenhydroproject.
Currently, the project implementation has been suspended due to denunciation of the Agreement between the Government of the Kyrgyz Republic and the Government of the RF for construction and operation of the Upper Naryn Cascade of HPPs.
2015 priority achieved
Approval of the Company’s strategic documents
The Board of Directors approved the following changes in the long-term programme of RusHydro Group:
- Included measures aimed at a planned and gradual replacement of procurement of foreign goods (works, services) by purchase of Russian goods (works, services) with equivalent technical characteristics and consumer properties;
- Included measures aimed at reducing operating expenses (costs);
- Defined target values of indicators of realisation of these measures.
2015 priority achieved
Improving the corporate governance system
PJSC RusHydro Corporate Governance Code has been approved.
2015 priority achieved
2.1.2. RusHydro Group’s Long-term Development Programme
In accordance with the Instructions of the President of the Russian Federation4 and the Government of the Russian Federation5, RusHydro Group’s Long-term Development Programme for 2015-2019 was developed (hereinafter – the Long-term Development Programme, the Programme). The Programme was reviewed at a meeting of the Government Commission on the development of the electric power industry6 and approved by the Company’s Board of Directors7 on November 20, 2014.
RusHydro Group’s Long-term Development Programme is based on the Strategic Plan, the medium-term consolidated business plan of RusHydro Group and approved programme documents of RusHydro Group (PJSC RusHydro and PJSC RAO Energy Systems of the East): production programmes, investment programmes, and the innovative development programmes.
The key activities aimed at the implementation of the Long-term Development Programme in the reporting year are represented as the activities performed in the framework of these programmes. Information about their implementation is given in items 2.3, 2.4., 2.5., and 3.4.
As part of the Long-term Development Programme implementation in 2015:
- the installed capacity increased by 55.5 MW as a result of implementation of the Technical Upgrade and Reconstruction Programmes;
- Corporate Governance Code has been approved8;
- a number of measures aimed at financial recovery of the companies of the RAO Energy Systems of the East Group has been taken;
- the optimisation of the administrative personnel has been made in accordance with change of the Company’s organisational structure of ; the non-core activities of the Company’s branches were reduced;
- gradual substitution of import products (work, services) for the equivalent by technical characteristics and consumer properties of Russian goods (work, services) has been provided, including the approval of the Road map for import substitution for the period till 20209;
- the Integrated Security System (ISS) of the Pavlodolskaya HPP has been put into operation, the ISS modernisation stage of the Zagorskaya PSPP, the Dagestan Branch, the Novosibirskaya HPP, Sayano-Shushenskaya HPP and Bureyskaya HPP has been completed, integration of the HPP security systems of the Kabardino-Balkarian Branch has been completed as a part of modernisation of the branch’s fixed local network;
- Regulations on improvement of the investment and operating activities and reduction of expenses have been approved10;
- Internal Control and Risk11 Management Policy has been approved, Subsidiary Company Policies have been approved in the key subsidiary companies.
The Long-term Development Programme defines basic principles and directions which ensure RusHydro Group’s effective development and contains proposals to improve PJSC RusHydro’s operating and investment activities, and proposals to enhance the efficiency and competitiveness of the RAO Energy Systems of the East Holding, including the implementation of a public-private partnership mechanism in the hydropower industry, as well as measures to upgrade the corporate governance system.
To audit Programme implementation in accordance with the Directive of the Government of the RF12 and Guidelines of the Ministry for Economic Development of the RF, the Audit Committee of the Board of Directors13 and the Board of Directors14 approved the Standard on auditing the implementation of the Long-term Development Programme. The Standard was developed with consideration of the typical standard approved by Instruction of the Government of the Russian Federation15 on auditing the implementation of the long-term development programmes of joint-stock companies, included in a special list, approved by an Order of the Government of the Russian Federation16. Furthermore, the Board of Directors6 approved the Technical specifications for auditing the implementation of the RusHydro Group’s Long-term Development Programme.
In compliance with the Directive of the Government of the RF as of 05.03.2015 No. 1346p-P13 “On substitution of import products for Russian products”, the changes have been introduced into the RusHydro Group’s Long-term Development Programme, approved by the Board of Directors of PJSC RusHydro as of 03.04.2015, No. 212. The LTDR includes the measures aimed at the planned and phased substitution of import goods (work, services) for the equivalent by technical characteristics and consumer properties of Russian goods (work, services), and values of the specified measures implementation indicator.
In compliance with the Directive of the Government of the RF as of 16.04.2015 No. 2303p-P13 “On reduction of operating expenses (costs)” the changes have been introduced into the LTDP, approved by the Board of Directors of PJSC RusHydro as of 22.06.2015, No. 218. The LTDR includes the List of activities aimed at the reduction of the operating expenses (costs), and defines the target values of the implementation indicators for the specified activities.
Under the terms of Contract No. ОG-206-94-2015/3351 dated 03.12.2015 for auditing the implementation of the RusHydro Group’s Long-term Development Programme in 2015 for the period 2015–2019 concluded with the CJSC HLB Vneshaudit, an audit of the LTDP implementation was conducted.
Based on the audit results, the Audit opinion has been prepared which registered that no facts were detected which could give grounds to consider that the actual results of the Group activities for the year 2015 and degree of achieving their target values are not calculated accurately; any other reasons exist of the performance indicators actual values deviation from the ones planned by the LTDP; intended use of the funds of the relevant budgets by the Group for the year 2015 was performed inefficiently.
2.1.3. The strategy of the PJSC RAO Energy Systems of the East
The basis for developing the strategy of the PJSC RAO Energy Systems of the East is the Strategic Plan of PJSC RusHydro for the period till 2015 with an outlook till 2020, approved by the Board of Directors of PJSC RusHydro on June 16, 2010, and the RusHydro Group’s Long-term Development Programme, approved by PJSC RusHydro’s Board of Directors on November 21, 2014.
2.1.3.1. Implementation of the strategy of PJSC RAO Energy Systems of the East
Development priorities and the results of their 2015 implementation
Development of a system approach to energy development in the Far Eastern Federal district
In order to coordinate the Long-term Programme of the retired capacities substitution and development of the energy industry complex on the territory of the Far East Federal District (DFO) in the area of responsibility of the RAO Energy Systems of the East Group till the year 2025 (hereinafter referred to as the Programme) with the plans for development of the DFO territories, and to synchronise with federal and regional programmes for the DFO power industry development, the draft programme was forwarded for approval to the regional government authorities.
The proposals for a number of regions have been received in terms of the separate programme subsections, which were analysed and taken into account in the Programme. As of 31.12.2015, considering all corrections made, the approval has been received from all the DFO subjects to which the Programme was sent – Primorsky Krai, Khabarovsky krai, the Magadan Region, the Republic of Sakha (Yakutia), the Kamchatka Region, the Sakhalin Region, the Amur Region, the Chukotka Autonomous District. The Programme is also agreed upon with PJSC FGC UES and PJSC Rosseti.
Priority moved to 2016
Implementing the investment projects
The work on the capital facilities construction was carried out in accordance with the approved project implementation schedules.
The supply and installation of the main equipment have been provided on the Blagoveschenskaya CHP (2nd stage). Electric and thermal capacities have been put into operation at the Blagoveschenskaya CHP (2nd stage).
The supply of the main equipment has been provided on the Yakutskaya SDPP-2 (1st stage). Positive opinions of the Main Directorate of State Expert Review have been received for the Sakhalinskaya TPP-2 (1st stage) and Yakutskaya TPP-2.
2015 priority achieved
Ensuring the reliability and modernisation of existing assets
The activities of the Production Programme of RAO Energy Systems of the East Group planned for the year 2015, including the activities on technical upgrading and reconstruction of the equipment, as well as the programmes of the Holding companies’ assets repair, have been completed to the full extent.
2015 priority achieved
Optimizing the corporate structure and improving corporate governance effectiveness
The works have been carried out on optimisation of the corporate structure of the RAO Energy Systems of the East Group, including in order to prepare possible sale of a non-core asset – Luchegorsky open-pit coal mine (“LUR”), the reorganisation of JSC DGK has been carried out in the form of transforming of the branch “LUR” into a separate legal entity (JSC LUR), which was completed 01.09.2015.
In accordance with the decision of the Board of Directors of PJSC RusHydro (Minutes as of 07.10.2015 No. 223) the activities are performed on consolidation of up to 100 % of shares of the PJSC RAO Energy Systems of the East into ownership of the RusHydro Group.
2015 priority achieved
The increase in revenues/ cost reduction
As a part of work aimed to improve the effectiveness of sales activities of subsidiaries PJSC RAO Energy Systems of the East in 2015 concluded bilateral purchase and sale of electric energy contracts. The economic effect from signing of the bilateral electric energy purchase and sale contracts has exceeded 1.7 billion rubles.
In order to enhance the efficiency of the procurement procedures carried out by functionality of the electronic trading platform, the mechanism of the Dutch re-auction has been introduced. In 2015, a number of procurements were conducted with its application.
RAO Energy Systems of the East Group continues to optimise fuel supply, in particular, basic coal reserve at the warehouses of the TPPs of subsidiaries the PJSC RAO Energy Systems in comparison with the previous year is reduced by more than 236 thousand tonnes (10 %) taking into account observance of the conditions for provision of the reliable TPP fuel supply.
2015 priority achieved
Upgrading the regulatory framework in the energy industry
As part of implementation of the long-term regulation, the work has been carried out related to preparation of the proposals on evaluation of the implementation consequences of the long-term model of the tariff regulation, among other things the amount of shortfall in income in the year 2015 has been defined, without which compensation transit to the long-term regulation is impossible. At the same time the implementation of the long-term regulation leads to the tariff growth that is impossible under the conditions of restrictions imposed by the government. In this regard, it is necessary to create the mechanism of compensation of the short-received proceeds. The proposals on creation of such mechanism are forwarded to the federal state government bodies.
2015 priority achieved
International activities
In 2015, RAO Energy Systems of the East Group continued its intense activities on expansion of the international cooperation, also as part of the implementation of the common projects with the partners from the countries of Asia-Pacific Region, working out of possibility to localise manufacturing of the power-generating equipment in the territory of the DFO, organisation of the electric power export to the border areas.
A number of agreements for cooperation with foreign companies and representatives of the public authorities of the countries of Asia-Pacific Region were signed at the Eastern Economic Forum which took place in September, 2015.
2015 priority achieved
2.1.4. Key performance indicators
A system of key performance indicators (KPI) of PJSC RusHydro is aimed at enhancement of efficiency of the Company’s performance and achievement of the goals set by the shareholders. The KPI system includes the indicators approved in the RusHydro Group’s Long-term Development Programme for 2015-2019 (five-year period) and as part of Business Plan for the year 2015.
- KPI List approved as part of the RusHydro Group’s Long- term Development Programme for 2015-2019, is approved by decision of the Board of Directors (Minutes as of 21.11.2014 No. 206 with supplements as of 31.03.2015 No. 212 and as of 19.06.2015 No. 218).
- KPI List of PJSC RusHydro for the year 2015 is approved by decision of the Board of Directors (Minutes as of 26.12.2014 No. 208). Target values for yearly and quarterly KPI are approved by the Board of Directors (Minutes as of 30.04.2015 No. 214) (Appendix 2 to Business Plan for 2015-2019).
2.1.4.1. PJSC RusHydro’s KPI
PJSC RusHydro KPIs include six yearly KPIs: four financial and economic indicators and two industrial indicators that conforms to requirements of the Federal Agency for State Property Management (Rosimushchestvo). The financial and economic indicators include two indicators obligatory for use, as per Rosimushchestvo Instructions – total shareholder return on investment (TSR) and return on equity (ROE). Basis for the financial and economic indicators calculation in the Company is the consolidated statements of the Group as per IFRS.
In 2015, methods of calculation and evaluation of the key indicators of PJSC RusHydro were amended (Minutes of the Board of Directors as of 22.06.2015 No. 218) in compliance with the Instruction of Rosimushchestvo (letter dated 25.12.2014 Ref. No. 05/55332) and decision of the Board of Directors of PJSC RusHydro dated 23.12.2014 (Minutes as of 26.12.2014 No. 208) on the need to improve the procedure for calculation of the indicator “Return on equity ROE, %”. The improved calculation of the indicator was brought into compliance with item 5.1.1 of the Guidelines for application of the key performance indicators of Rosimushchestvo.
KPIs Target and Actual Values
| 2014 | 2015 | ||||||
| KPI | Actual KPI values | Degree of target value achievement | Actual KPI values | Target value | Degree of target value achievement | KPI’s Weight |
|
| Yearly | |||||||
| 1 | Reducing goods (work, services) acquisition costs per unit produced (%) | 11.6 | Implemented | Not established | — | — | — |
| 2 | Reducing costs due to the implementation of the cost management programme,% * | Not established | — | Not established | — | — | — |
| 3 | Total shareholder return (TSR**), % | Not established | — | < 100 % | 100 % | Not established | 10 % |
| 4 | Return on equity (ROE***), % | Not established | — | 4.5 | 3,1 % | Implemented | 20 % |
| 5 | Share of buying from small- and medium-sized business entities, %и среднего предпринимательства, % | Not established | — | 29 | 18 % | Implemented | 10 % |
| 6 | Reliability criterion – both: | 25 % | |||||
| - Not exceeding the limit for accidents (pcs.) | 0 | Implemented | 0 | 0 | Implemented | — | |
| - Readiness factor (coefficient) | > 1 | Implemented | > 1 | > 1 | Implemented | — | |
| 7 | EBITDA ratio**, RUB million | 53048 | Implemented | Not established | — | — | — |
| 8 | Fulfilling capacity commissioning timetable and the finance and disbursement plan, % | 101 | Implemented | 99**** | 100 | Implemented | 25 % |
| 9 | Leverage ratio (coefficient) | 0.2 | Implemented | 0.2 | ≤ 1,5 | Implemented | 10 % |
| Quarterly | |||||||
| 1 | Reliability criterion – both: | 33,3 % | |||||
| - accident rate (compared with the previous year) (coefficient). | < 1 | Implemented | Not established | < 1 | — | ||
| - not to exceed normative values of accident rate | Not established | — | < 1 | Implemented | — | ||
| - lack of fatal industrial accidents or group Company accidents, if there are casualties with severe outcome (pcs.) | 0 | Implemented | 0 | 0 | Implemented | — | |
| - receipt (availability) of a readiness passport on the Company’s facilities within a prescribed period (%) (Q1 and Q4) | 100 | Implemented | 100 | 100 (on the 1st and 4th quarter) | Implemented | ||
| 2 | Current liquidity ratio (coefficient) | 6.4 | Implemented | 5.6 | ≥ 1 | Implemented | 33,3 % |
| 3 | Fulfilling quarterly timetables to finance and implement investment programme in cumulative total from the beginning of the year, % | 102 | Implemented | 98**** | 100 | Implemented | 33,3 % |
* The Indicator “Lower costs due to the implementation of the cost management programme, %”, established in 2011 by an Order of the Ministry of Energy of the Russian Federation (Minutes as of 23.12.2010 No. ASH-446pr) was introduced according to the said Minutes for a three-year period. Within the scope of the established indicator, the Company implemented a programme for improving operational efficiency in 2011-2013. The programme provided cost reduction to a maximum allowable level that is not critical for ensuring the normal functioning of facilities and maintaining technological reliability, by 10 % from 2010 base within three years. The programme has been fully implemented. In accordance with the abovementioned, the indicator is excluded from the list of the KPI target values for the year 2014.
** Indicator evaluation is made based on comparison of its absolute value for the Company with the TSR indicators of the companies (only according to common shares), included in the electric power industry index of the Moscow exchange (MICEX PWR), except for electricity supply network and power supply companies, and PJSC RAO Energy Systems of the East. KPI target value is considered to be achieved, if TSR value of the Company is in 50-th percentile (and higher) of the TSR matrix of the companies included in the electric power industry index of the Moscow exchange, which is equivalent to 100 %.
***The indicator is calculated in accordance with the Methods of calculation and evaluation of the key indicators of PJSC RusHydro, (approved by the Board of Directors, Minutes as of 26.12.2014 No. 218), taking into account the amendments and supplements introduced by the decision of the Board of Directors (Minutes as of 03.04.2015 No. 212, Minutes as of 22.06.2015 No. 218).
**** As per Methods of calculation and evaluation of the key performance indicators of PJSC RusHydro (approved by the Board of Directors, Minutes as of 26.12.2014 No. 208), the indicator target value is considered to be achieved, if actual indicator ≥ 0.85 of the target (100 %).
The List of RusHydro’s 2016 KPIs*
| N | KPI | Target |
|---|---|---|
| Yearly KPIs: | ||
| 1 | Total shareholder return (TSR), % | 100 |
| 2 | Return on equity (ROE), % | 3,6 |
| 3 | Share of buying from small- and medium-sized business entities, % including: | ≥18 |
| - according to the results of a procurement only among subjects of small and medium enterprises, % | ≥10 | |
| 4 | Reliability criterion – both: | |
| - Not exceeding the limit for accidents; | 0 | |
| - Readiness factor; | > 1 | |
| 5 | Compliance with capacity commissioning schedules and with the finance and disbursement schedule, % | 100 |
| 6 | Leverage ratio (LR) | ≤ 1,5 |
| Quarterly KPIs: | ||
| 1 | Current liquidity ratio (CLR); | ≥ 1 |
| 2 | Reliability criterion – both: | |
| - accident rate; | < 1 | |
| - lack of fatal industrial accidents or group accidents, if there are casualties with a severe outcome;с тяжелым исходом, ед. | 0 | |
| - obtaining (availability) of a readiness certificate in due time, % (1 and 4 quarter of the year) | 100 | |
| 3 | Compliance with quarterly finance and disbursement schedules of the investment programme, in cumulative total from the beginning of the year, % | 100 |
2.1.4.2. KPI of RusHydro Groups’s Long-term Development Programme
The Long-term Development Programme contains the KPI established for the 2015-2019 period. The calculation of the target values of the KPI is made in compliance with the parameters for the 2015-2019 Business Plan, and takes into account measures provided for by the RusHydro Group’s programmes
In 2015, the indicator “Operating expenses (costs) reduction” was included in the Long-term Development Programme of the RusHydro Group (Minutes of the Board of Directors as of 22.06.2016 No. 218) in compliance with Directive of the Government of the Russian Federation as of 16.04.2015 No. 2303p-P13.
Failure to implement the indicator “Total shareholder return (TSR)” in 2015 is mainly explained by the relative growth of several utility stocks after a significant fall in the previous reporting period, caused by sharp fall of the oil price in the second half of 2014 and decrease of the investors’ interest in the sector, caused by unfavorable tariff policy. At the same time, during this crisis period RusHydro stock performed better than the sector. While the main electrical utility sector index –MICEX Power –came down by 23 % during 2014, RusHydro shares lost only 5 %. That is why during 2015 these stocks showed relatively high growth of the TSR indicator. At the same time, the absolute value of RusHydro’s TSR indicator for 2015 is positive. Within a year the shares grew by 25 %, which is higher than the growth of the MICEX electrical utilities industry index (18 %).
The KPIs of the RusHydro Group’s Long-term Development Programme for 2015 – 201918
| 2015 | 2016 | 2017 | 2018 | 2019 | ||||
| Key Performance Indicators | Target | Actual | Implementation | Target | Target | Target | Target | |
| 1 | Total shareholder return (TSR) (19), % | 100 | <100 | Not implemented | 100 | 100 | 100 | 100 |
| 2 | Return on equity (ROE), % | 4 | 7.8 | Implemented | 3.4 | 3.1 | 3.2 | 3.6 |
| 3 | Leverage ratio | ≤ 1,5 | 0.53 | Implemented | ≤ 1,5 | ≤ 1,5 | ≤ 1,5 | ≤ 1,5 |
| 4 | Limitation on the debt leverage (Net Debt/EBITDA) | ≤ 4 | 1.7 | Implemented | ≤ 3,8 | ≤ 3,5 | ≤ 3,5 | ≤ 3,5 |
| 5 | Reliability criterion: | Implemented | ||||||
| Not exceeding the limit for accidents (pcs.) | 0 | 0 | Implemented | 0 | 0 | 0 | 0 | |
| Readiness factor | > 1 | > 1 | Implemented | > 1 | > 1 | > 1 | > 1 | |
| 6 | Compliance with the capacity commissioning schedule for core new construction facilities, MW | 120* | 120 | Implemented | 970 | 762 | 142.5 | — |
| 7 | Share of buying from small- and medium-sized business entities(20), % | ≥ 18 | 29 | Implemented | ≥ 18 | ≥ 18 | ≥ 25 | ≥ 25 |
| 8 | Effectiveness of share capital. (EBITDA / yearly average share capital), %(EBITDA/ Среднегодовой акционерный капитал), % | 11.9 | 14.3 | Implemented | 11.7 | 11.2 | 11.6 | 12.2 |
| 9 | Labour efficiency. (number of employees per 100 MW of available capacity) (21) | 27.7 | 25.2 | Implemented | 26 | 24.5 | 24.3 | 24.1 |
| 10 | Introducing the corporate governance code and ensuring compliance with its requirementsи обеспечение соответствия его требованиям | The Code was approved by the Board of Directors | Implemented | 100 % | 100 % | 100 % | 100 % | |
| 11 | Integral innovative KPI, % | 85 | 100 | Implemented | 85 | 90 | 90 | 95 |
| 12 | The reduction in operating expenses (costs) (22), % | 2 | 3.9 | Implemented | 2 | 2 | 2 | 2 |
* Correction term input power for the project construction of Yakutskaya GRES-2 power station from 2015 to 2016, agreed by Order of the President of the Russian Federation from 18.09.2015 No. PR-1911 and included in the Investment programme of PJSC RusHydro for 2015, approved by order of RF Ministry of energy 14.12.2015 No. 955, and the Investment programme of PJSC RusHydro for 2016-2018, approved by order of RF Ministry of energy 14.12.2015 No. 956. In accordance with the decision of the Board of Directors of PJSC RusHydro (Minutes as of 25.12.2015 No. 23023), record the schedule for commissioning of the main objects of the new construction is completed.
2.1.4.3. KPIs of PJSC RAO Energy Systems of the East
2015 KPIs of PJSC RAO Energy Systems of the East
| KPI | Target | Actual | Implementation |
|---|---|---|---|
| Implementation of the investment programme, % | 100 | 97* | Implemented |
| The execution by subsidiaries and controlled companies transferred under trust management in accordance with Agreement No. OG– 175 – 169 – 2013 from 23.12.2013, established quarterly KPIs and conditions of bonuses, % | 100 | 81* | Implemented |
| EBITDA ratio, RUB million | 12 191 | 12 797 | Implemented |