TCS Group Holding PLC announces expansion of its long-term management incentive and retention plan

Moscow, Russia — 2 February 2017.
TCS Group Holding PLC (TCS LI) (the «Group»), Russia’s leading provider of online retail financial services, including Tinkoff Bank and Tinkoff Insurance, announces that its Board of Directors on 1 February 2017 approved the expansion of its long-term management incentive and retention plan (MLTIP) as follows:

  • an increase in the number of participants from the current 51 to 69 with effect from 31 March 2017 and to over 80 with effect from 31 March 2018 and making awards to these new participants,
  • an increase of awards to certain existing participants playing a key role in the Group’s growth.

Awards to new joiners and an increase of awards to existing participants will represent in aggregate up to 1.5% of the current issued share capital of the Group which increases the total size of MLTIP pool to 5.6% of the Group’s current share capital.

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 Board of Directors proposes to put on the agenda of the AGM scheduled for 29 May 2017 in Limassol resolutions connected with implementing the expansion of MLTIP.

About the Group

TCS Group Holding PLC 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 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 1,800 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 August 2017, the bank was the second largest player in the Russian credit card market, with a market share of 11.5%. The 1H 2017 IFRS net income of TCS Group Holding PLC amounted to RUB 7.6 bn, ROE stood at 46%.

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.