REG-TCS Group Holding PLC TCS Group Holding PLC buys back 680,000 GDRs for its long-term management incentive and retention plan

TCS HoldingAnnouncement

17/04/2018 12:10

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   TCS Group Holding PLC (TCS)
   TCS Group Holding PLC buys back 680,000 GDRs for its long-term management
   incentive and retention plan

   17-Apr-2018 / 13:05 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   TCS Group buys back 680,000 GDRs for its long-term management incentive
   and retention plan

   Moscow, Russia - 17 April 2018. TCS Group Holding PLC (TCS LI) (the
   "Group"), Russia's leading provider of online retail financial services
   via its Tinkoff.ru financial supermarket, today provides an update on its
   long-term management incentive and retention plan (MLTIP).

    

   Following the expansion of the MLTIP, the Group continues to follow its
   long-standing practice of pre-funding the plan through buybacks. As part
   of this initiative:

    

     • on 13 April 2018 the Group repurchased 380,000 GDRs at an average net
       price per GDR of USD18.55 (within the range USD18 to USD18.84) and on
       16 April another 100,000 GDRs at an average net price of USD19.25; and
     • on 16 April the Group agreed to repurchase a further 200,000 GDRs at
       an average net price of USD18.79.

    

   Additional purchases may be undertaken opportunistically as and when the
   Group sees attractive opportunities based on the market price of its GDRs.

    

   The Group believes that the current market environment represented and may
   well continue to be a good opportunity to repurchase GDRs. The
   fundamentals of the Group's business remain strong. As announced on 10
   April 2018, the Group remains well on track to meet its Net Income target
   of at least RUB 24bn in 2018 as well as the other metrics in the Group's
   'Guidance for 2018' in the Company's announcement of 13 March 2018.
   Moreover, measures recently announced by the US Treasury Department do not
   in Management's view materially impact the Group, its core operations,
   ultimate beneficial owner, customers or planned capital markets
   activities.

    

   The Board of Directors on 5 March 2018 approved an increase in the number
   of MLTIP participants from 67 to 83 with effect from 31 March 2018. The
   MLTIP is awarded over four years, materially subject to the fulfilment of
   annual KPIs, with each such annual award vesting linearly over the three
   subsequent years. All participants are employees of the Group, working
   full time in the Russian Federation. The aim of the expansion, as the
   Group continues to grow the scale and scope of its operations, is to
   ensure that the interests of its broader management team are closely
   aligned with the interests of shareholders to grow the Group's value. The
   target total size of the MLTIP pool is nearly 5.6% of the Group's current
   share capital.

    

   For enquiries:
                                 Tinkoff Bank
   Tinkoff Bank
                                 Larisa Chernysheva
   Darya Ermolina                IR Department
   Head of PR
                                 + 7 495 648-10-00 (ext. 2312)
   + 7 495 648-10-00 (ext. 2009)
                                  2 ir@tinkoff.ru
    1 d.ermolina@tinkoff.ru
                                  

   About the Group

   TCS Group is an innovative provider of online retail financial services
   operating in Russia through a high-tech branchless platform. TCS Group
   includes Tinkoff Bank, mobile virtual operator network Tinkoff Mobile,
   Tinkoff Insurance, and Tinkoff Software DC, a network of IT development
   hubs across Russia.

   The Group was founded in 2006 by the Russian entrepreneur Oleg Tinkov and
   has been listed on the London Stock Exchange since October 2013.

   With no retail branches, the Group serves its customers remotely via
   online channels and its call centre, and operates a network of over 2,500
   representatives to ensure smooth delivery of its products. The network
   covers all of Russia and allows next day delivery to most customers.

   The Group's key business is Tinkoff Bank, Russia's first and only direct
   bank offering both own brand and partner retail financial services via its
   Tinkoff.ru platform. The product range includes daily banking (credit and
   debit cards, payments, money transfers), savings, investments, loyalty
   programmes, travel services, SME services, mortgage platform, and
   insurance. With its special focus on mobile business, the bank offers
   mobile applications both for its customer base (Mobile Bank) and beyond it
   (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

   As at 1 February 2018, the bank was the second largest player in the
   Russian credit card market, with a market share of 11.7%. The FY 2017 IFRS
   net income of TCS Group Holding PLC amounted to RUB 19.0 bn, ROE stood at
   53%.

   Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the
   Bank of the Year 2016. In October 2016 Tinkoff Bank was named the largest
   independent global direct bank by Frost & Sullivan. In 2015 and 2016, the
   Global Finance magazine named Tinkoff Bank as the Best Consumer Digital
   Bank in Russia. In 2016, the bank also won Global Finance's Best
   Integrated Consumer Bank Site award and was named the Best Digital Bank in
   the CEE by Euromoney. The bank's mobile application was recognised as the
   best in Russia by Markswebb Rank & Report for three consecutive years in
   2014, 2015 and 2016, and by Deloitte for four consecutive years from 2013
   to 2016.

   Forward-looking statements

    

   Some of the information in this announcement may contain projections or
   other forward-looking statements regarding future events or the future
   financial performance of the Group and Tinkoff Bank. You can identify
   forward looking statements by terms such as "expect", "believe",
   "anticipate", "estimate", "intend", "will", "could," "may" or "might", the
   negative of such terms or other similar expressions. The Group and Tinkoff
   Bank wish to caution you that these statements are only predictions and
   that actual events or results may differ materially. The Group and Tinkoff
   Bank do not intend to update these statements to reflect events and
   circumstances occurring after the date hereof or to reflect the occurrence
   of unanticipated events. Many factors could cause the actual results to
   differ materially from those contained in projections or forward-looking
   statements of the Group and Tinkoff Bank, including, among others, general
   economic conditions, the competitive environment, risks associated with
   operating in Russia, rapid technological and market change in the
   industries the Group operates in, as well as many other risks specifically
   related to the Group, Tinkoff Bank and their respective operations.

    

    

    

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   ISIN:          US87238U2033
   Category Code: POS
   TIDM:          TCS
   LEI Code:      549300XQRN9MR54V1W18
   Sequence No.:  5420


    
   End of Announcement EQS News Service

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   675331  17-Apr-2018 

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References

   Visible links
   1. mailto:d.ermolina@tinkoff.ru
   2. mailto:ir@tcsbank.ru


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