RUB 1 trillion reached! — Annual supply volume of electrotechnical equipment reaches new levels

RUB 1 trillion reached! — Annual supply volume of electrotechnical equipment reaches new levels

February 21, 2020. Moscow — PJSC Evropeyskaya Elektrotekhnica (hereinafter, the "Company" or the "Group"), a leader on the Russian engineering market, believes that, as of the end of 2019, the market volume of electrotechnical equipment in Russia exceeded RUB 1 trillion* in manufacturers' cost prices.

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Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented on this event: “Amid the "industrial Renaissance" happening in Russia, the market of engineering equipment and its participants are some of the key beneficiaries. Any new project in manufacturing, infrastructure, or civil engineering requires modern electrotechnical firmware, adequate high-tech equipment and services.

Based on the observed market dynamics, our sales specialists in certain segments of the market and our marketers base their assumptions on the fact that at the end of 2019, the market volume of electrotechnical equipment in Russia exceeded RUB 1 trillion if we are to estimate it in cost prices of sellers/manufacturers of electrotechnical components and products.

At the same time, we estimate the market volume of end (complete) engineering solutions in the field of electrical engineering as of the beginning of 2020 as being 1.8–2 times larger, ranging from RUB 1.8–2 trillion in absolute terms. This means the cost of solutions for end customers, including design, production of complete electrotechnical products, installation, commissioning, and after-sales service.

Our Company is actively involved in the development of this market. We have established our own production of the following categories of electrotechnical equipment:

• Complete transformer substations;

• Medium voltage units;

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

• Electric lighting systems;

• Industrial electric heating systems;

• Cabling and wiring products.

I congratulate my colleagues and partners on this major milestone in our market's development!”

Note:

*The estimate was obtained by analyzing revenues of domestic manufacturers of electrotechnical equipment in all significant categories, according to SPARK-Interfax system data. The estimate covers Russian companies whose main economic activity is listed as OKVED 27 — Production of Electrical Equipment (excluding household appliances), including:

·         Cable manufacturing;

·         Production of electrical distribution and control equipment;

·         Production of electric engines, generators and transformers;

·         Production of other electrical equipment;

·         Production of electric lamps and lightning equipment;

·         Battery manufacturing;

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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