About report

The annual report of Public Joint-Stock Company Federal Hydro-Generating Company RusHydro (“PJSC RusHydro” or the “Company”) for 2018 [102-5] [102-50] is the 14th annual report prepared by the Company and addressed to a diverse range of stakeholders. The report has been prepared in an integrated format and contains comprehensive information on the financial, operational and sustainability performance of RusHydro GroupFor the purpose of this report, RusHydro Group means a group of companies which include PJSC RusHydro and its subsidiaries. The control is determined in accordance with Article 2 of Federal Law No. 39-FZ On Securities Market dated April 22,1996. (the “Group”) in 2018, as well as plans and forecasts for the medium and long term.

The Company issues reports annually to inform stakeholders about its operations. [102-52]

Paper and electronic versions of the 2017 annual report were published at the Company’s website on July 2, 2018. [102-51]

Comparability with the previous annual reports

In 2018, there were no significant changes in the scale of the Group’s operations, wording, or fundamental changes in the calculation of indicators, which could affect the assessment of the Group’s key performance indicators as compared to the previous annual report.

Additional comments to the calculation of indicators are provided in the footnotes. [102-48]

A representative of the senior management responsible for the preparation of the report and the quality of its information is a Member of the Management Board – First Deputy General Director, who is also in charge of the Unit of financial and corporate law management. [102-32]

Compliance with standards and requirements

The report was prepared in line with the principles and requirements of:

  • the Russian laws;
  • Moscow Exchange;
  • London Stock Exchange;
  • the Disclosure Guidance and Transparency Rules of the UK Listing Authority;
  • the Corporate Governance Code recommended by the Bank of Russia;
  • RusHydro’s Corporate Governance Code;
  • RusHydro’s Information Policy Regulations;
  • the International Integrated Reporting Framework (<IR>);
  • This report has been prepared in accordance with the GRI Standards: Core option. [102-54];
  • the GRI Electric Utilities Sector Supplement (GRI G4 – Electric Utilities (EU));
  • specific provisions of the AA1000 Institute of Social and Ethical Accountability Series of Standards (AA1000AP and AA1000SES).
Content and boundaries of the report

The content of this report has been determined in accordance with the requirements of the applicable regulations and standards, with the Group’s stakeholders being engaged in the process. For more information on the content determination process and the materiality matrix, see page Defining materiality and creating a materiality matrix. The report has been prepared in accordance with the GRI SRS: Core option. [102-54]

The operational results of RusHydro Group (including financial and production ones) have been disclosed in line with the IFRS reporting boundariesThe report also covers information on PJSC Boguchanskaya HPP, which is not a subsidiary or part of RusHydro Group, but a joint venture of RusHydro Group and UC RUSAL., unless otherwise specified in the notes to the disclosure.

The Group’s subsidiaries not included in the boundaries of the disclosure are not material for the purposes of reporting.

In 2018, the consolidation of reporting information expanded from 48 to 60 companies. Criteria for inclusion in the consolidation perimeter:

  • the Company’s share in total group revenues as of 2017 is at least 0.1%;
  • the headcount is at least 40 people as of December 31, 2017.

The Group’s subsidiaries not included in the boundaries of the disclosure are not material for the purposes of reporting.

Assurance of the report [102-56]

The accuracy of data provided in the annual report has been confirmed by the Company’s Internal Audit Commission. The accuracy of the financial report has been confirmed by the Company’s auditor opinion provided in Appendix 16.

Reliability of qualitative and quantitative information prepared in accordance with the GRI SRS (Selected Information) has been verified in line with the Assurance Engagements Other than Audits or Reviews of Historical Financial Information of International Standard for Assurance Engagements (ISAE) 3000 (revised). The auditor’s report on the independent audit results, which provides limited assurance regarding the Selected Information, can be found on page Auditor’s opinion. The independent audit was performed by АО PricewaterhouseCoopers Audit.

The report has also taken into account feedback and recommendations from the expert committees of the Moscow Exchange and Expert RA rating agency judging the annual report competitions, as well as the recommendations of the RSPP Committee on Social Responsibility.