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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.
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
Darya Ermolina Larisa Chernysheva
Head of PR IR Department
+ 7 495 648-10-00 (ext. 2009) + 7 495 648-10-00 (ext. 2312)
d.ermolina@tinkoff.ru ir@tinkoff.ru [1]
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.
ISIN: US87238U2033
Category Code: POS
TIDM: TCS
LEI Code: 549300XQRN9MR54V1W18
Sequence No.: 5420
End of Announcement EQS News Service
675331 17-Apr-2018
1: mailto:ir@tcsbank.ru
(END) Dow Jones Newswires
April 17, 2018 07:05 ET (11:05 GMT)
