Evropeyskaya Elektrotekhnica announces start of share buyback program

Evropeyskaya Elektrotekhnica announces start of share buyback program

December 11, 2019. Moscow — On December 10, 2019, the Board of PJSC Evropeyskaya Elektrotekhnica (hereinafter, the Company or Group; MOEX: EELT), a leading company in the Russian engineering market, approved the launch of the Share Buyback Program for ordinary shares of PJSC Evropeyskaya Elektrotekhnica (hereinafter, the "Program").

As part of this Program, buyback of the Company's ordinary shares (ISIN: RU000A0JWW54) is expected in the open (stock exchange) market for a total amount not exceeding RUB 100 mln. [1]

Shares of PJSC Evropeyskaya Elektrotekhnica will be bought on the Moscow Exchange by Evropeyskaya Elektrotekhnica Limited Liability Company, a PJSC Evropeyskaya Elektrotekhnica controlled company, through professional participants of the securities market (brokers).

The Program will be implemented from December 11, 2019 to December 31, 2020 unless Board of Directors of PJSC Evropeyskaya Elektrotekhnica changes the validity period. As part of the Program, Evropeyskaya Elektrotekhnica LLC will purchase ordinary shares of PJSC Evropeyskaya Elektrotekhnica at a price of RUB 9.5 (nine point five) per share, which corresponds to the placement price of PJSC Evropeyskaya Elektrotekhnica's shares during IPO.

Purchased shares will retain all rights, including the right to receive dividends.

Information on transactions made under the Program will be published on a regular basis in accordance with Russian legislation.

The buyback program is neither an offer to purchase nor a recommendation to sell ordinary shares of PJSC Evropeyskaya Elektrotekhnica, nor is it a voluntary or mandatory offer to purchase securities in accordance with Russian legislation.

Sergey Dubenok, Chairman of the Board of Directors at PJSC Evropeyskaya Elektrotekhnica, noted in this regard: "We are very positive about the prospects for monetization of our innovative technological developments in 2020 and in the years to come. The full-scale launch of our business to lease mobile oil refining and power units will be duly reflected in the Company's financial results starting from the coming year.

The purpose of the initiated buyback of ordinary shares is to optimize the structure of invested capital and increase the Company's investment attractiveness. We expect the share buyback program will eventually help us to create a base of shareholders who are interested in participating in the financial success of domestic industrial high-tech and support our strategy of commercializing engineering innovations with their investments."

Note:

[1] According to the Company management's estimates, the Share Buyback Program's volume should not exceed 10.9 million of ordinary shares or 1.8% of PJSC Evropeyskaya Elektrotekhnica's authorized capital (as of December 9, 2019, the date of closing of trades on Moscow Exchange). 

About Evropeyskaya Elektrotekhnica Group of Companies

• Evropeyskaya Elektrotekhnica Group of Companies (MOEX: EELT) offers comprehensive solutions in the field of engineering and technological systems for industrial, construction and infrastructural purposes: low and medium voltage distribution equipment, low current systems, lighting systems, industrial electric heating systems and equipment for the Oil&Gas and petrochemical industries.

• As a Russian joint-stock company with high corporate governance standards and financial sustainability, the Company's Mission is to improve people's quality of life with its entrepreneurial vigour and engineering competencies.

• The Company was founded in 2004 and unites a distribution center, engineering departments, an electrical laboratory and specialized production facilities. The company is one of the largest electrical equipment distributors in the Russian Federation and an industrial partner of leading companies on the international engineering market.

• The Company's logistics capabilities include delivery (including non-standard and oversize load) to customers throughout Russia, including hard-to-reach Northern areas, as well as to Central Asia, North Africa and the Middle East.

• The Company has its own production of the following equipment:

• Complete transformer substations;

• Medium voltage units;

• Low voltage panels of up to 6,300A (including metro solutions);

• Electric lighting systems;

• Industrial electric heating systems;

• Cabling and wiring products.

• Areas of application of the Company's competences:

• Oil&Gas industry;

• Electric power sector;

• Peaceful atom,

• Steel and mining industry;

• Engineering;

• Transport infrastructure, water supply and sanitation.

• Evropeyskaya Elektrotekhnica's customers include major Russian companies: Rosneft, Gazprom, NOVATEK, LUKOIL, Sibur and Nizhnekamskneftekhim. Supplies were successfully implemented for the following projects: Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, the Domodedovo, Sheremetyevo, and Pulkovo Airports, etc.

• New areas of Company activity starting from 2018 include development and production of the following:

• Modular equipment for the Oil&Gas and petrochemical industries (Company subsidiary ROG-Engineering, Ufa, Republic of Bashkortostan, Russian Federation);

• Industrial specialized solutions for metro substations (currently being consolidated into the Group's structure: Metrotonnel, Moscow, Russian Federation);

• Industrial electric heating systems.

• Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):

350 people – the personnel headcount. 

EELT – the trading code for common shares of PJSC Evropeyskaya Elektrotekhnica on the Moscow Exchange, where shares are traded since September 2017. 

BBB- (RU), stable outlook – the credit rating of PJSC Evropeyskaya Elektrotekhnica is at the investment level; the rating confirmed by ACRA on January 30, 2020. 

Contacts:

PJSC Evropeyskaya Elektrotekhnica

Tel.: +7 (800) 600-71-18

Mailing address: 1 Lyotchika Babushkina Street, Building 3, Moscow, 129344

For more information, please contact:

Stanislav Martyushev

Director for Corporate Communications and Investor Relations

PJSC Evropeyskaya Elektrotekhnica

Tel. +7 (495) 660-71-18 ext. 164

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