Dear Shareholders!

The past year of 2016 can be called a turning point in the recent history of RusHydro. The catching up the backlogs practice was replaced by a confident dynamic of planned development. The Company’s past year activities performance confirm the effectiveness of the applied strategy and the correctness of the chosen priorities.

RusHydro is a Company that performs the most important state tasks and operates in many Russian regions, where implements not only economic but also social projects. The country’s leadership has instructed us to develop a strategic direction – the electric power industry of the Far East. Here we are building new energy facilities and together with the regional authorities we are creating an infrastructure for advanced development territories. An important platform for cooperation was the Eastern Economic Forum 2016, where significant agreements with the Kamchatka Region for the regional energy development were signed, with the Khabarovsk Territory and the Agency for Human Capital Development in the Far East to involve qualified personnel to the electric power industry by building affordable housing.

The Company’s activity is conditioned by the long-term development interests of the country and regions, but at the same time it shows economic efficiency in the «here and now» mode. This fact was noted by the international agency S & P, which revised in 2016 the outlook on RusHydro’s credit ratings from «Stable» to «Positive». Also in 2016 our positions were strengthened in the national rating of corporate transparency of the largest Russian companies. The RusHydro reward of human resources development sphere was also a confirmation of the staff high qualification. At the Ministry of Energy of the Russian Federation contest «New Idea» the project of the RusHydro personnel participant was recognized as the best innovative project in the electric power industry.

Accepting the challenges of the time, RusHydro is becoming more and more transparent company. One of our most important priorities is transparency of activities, so important today for the state, shareholders and the public.

The company looks to the future with confidence, working to ensure the country’s energy security.

Vladimir Markin
Member of the Management Board – First Deputy CEO