Evropeyskaya Elektrotekhnica becomes a new resident of SEZ Technopolis Moscow

Evropeyskaya Elektrotekhnica becomes a new resident of SEZ Technopolis Moscow

January 15, 2020. Moscow — Evropeyskaya Elektrotekhnica LLC (hereinafter — the "Company") successfully reviewed its business plan for a project to develop and manufacture high-tech low voltage complex devices, which is planned for implementation at the site in Pechatniki in the special economic zone Technopolis Moscow (hereinafter — "SEZ Technopolis Moscow").

The project review took place on December 24 at the meeting of the Supervisory Board of SEZ Technopolis Moscow, chaired by Aleksandr Prokhorov, Head of the Department for Investment and Industrial Policy in Moscow. The project will entail the development and production of electrical equipment:

• Input switching devices;

• Main distribution switchboards;

• Automatic switchboards;

• Hinged distribution switchboards.

The total volume of investment in the project will amount to RUB 55 million for 2020–2024, and more than 40% of investments will be made in 2020. The funding source are internal resources of the Evropeyskaya Elektrotekhnica Group of Companies.

The coefficient of production localization will amount to 58%. The revenue of the project is estimated at no less than RUB 3.24 billion for 2020–2029.

Andrey Smirnov, Deputy General Director and Member of the Board of Directors of PJSC Evropeyskaya Elektrotekhnica:

"We really like the prospect of joining the innovative ecosystem of the special economic zone Technopolis Moscow, the flagship of Industry 4.0. The modern infrastructure of the industrial cluster in Pechatniki, the convenient logistics and the location near the center of Moscow Metropolitan Area and similar high-tech industries at the same place are factors that, we believe, will allow us to get all the benefits of the right location with the appropriate atmosphere and incentive-based regulation.  In turn, this will provide achievable positive dynamics in fulfilling the Company's strategic aim to strengthen our market position in terms of implementing complex technical solutions and production, which is the key to our strategy.

Low-voltage complex devices produced by our Company are widely used in Oil&Gas complex and mining companies, metallurgy and engineering companies, in switchgear for power plants, urban and transport infrastructure, telecommunication systems and data processing and storage centers.

I am sure that this project will allow us to increase our Company's share in the market of low-voltage complete devices and to ensure long-term high-quality competitive advantage based on the broad integration of digital intelligent solutions.”

Anna Gorbatova, Deputy General Director for Investor Relations of SEZ Technopolis Moscow:

"We are glad that the Company has successfully passed the review of its investment project. The profile of the enterprise's activity, which involves creating high added value based on engineering innovation, fully corresponds to the specialization and tasks of the SEZ.

Over 140 high-tech companies are currently located on the territory of the SEZ Technopolis Moscow, 67 of which are its residents. There is a lot of interest from entrepreneurs in the opportunities offered by the SEZ: they have access to greenfield and brownfield sites, engineering infrastructure, along with a developed service and operational support system, etc.

We wish the Company success in implementing its planned project at the site in Pechatniki and fully realizing the potential of supplying electrical solutions to Russian customers and abroad.”

REFERENCE:

SEZ Technopolis Moscow is a special territory intended for the development of industrial and technology implementation activities for Moscow.Today over 140 high-tech companies are located in the SEZ, 67 of which are residents of the SEZ.The resident companies can make use of special tax regulations and a duty-free zone, which allows them to decrease their total tax burden up to 47%. The SEZ residents are creating developments and innovations in the field of high-tech production, including microelectronics, instrumentation, information and telecommunication technologies, and medical equipment. At present, the residents have already invested over RUB 25 billion in the development of their businesses and created over 6,000 jobs.

On September 7, 2016, the Moscow Government received authority to manage SEZ Technopolis Moscow. The Department for Investment and Industrial Policy in Moscow supervises the special economic zone.

The cumulative investment of the Moscow SEZ is expected to increase almost three times by 2025 and amount to over RUB 70 billion.

Sources: https://technomoscow.ru/about

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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