Option program

The option program was approved by the PJSC Inter RAO Board of Directors in February 2016. Minutes No. 161 dated February 18, 2016As a result of the program, some members of PJSC Inter RAO management obtained the right to acquire a specific number of shares of an existing issue from a block controlled by Inter RAO Group at a fixed price for a total of 2 % of charter capital. The date for exercising the option program was in early 2018, and the participants who exercised the option bought back the shares and expressed their intention to sell a part of the shares, which prompted the decision to ensure an organized sale process. As a result of the transaction, 1.19 billion ordinary shares were sold at a price of RUB 3.48 per ordinary share for a total of approximately RUB 4.15 billion. As part of the management option program in March 2018, a transaction was concluded to sell 1.14 % of the shares through an accelerated bookbuild (ABB).

Chairman of the PJSC Inter RAO Management Board Boris Kovalchuk did not participate in the sale of shares.

The aforementioned option program proved to be an effective mechanism for motivating management. In the medium term, management believes it would be advisable to introduce a more complex, comprehensive long-term incentive program that aims to ensure the achievement of a number of key performance indicators in the Company’s operations. At the same time, we do not rule out the use of components of the option program as this program develops.