Evropeyskaya Elektrotekhnica improves its corporate governance system

Evropeyskaya Elektrotekhnica improves its corporate governance system

January 21, 2019. Moscow – PJSC Evropeyskaya Elektrotekhnica (hereinafter – "Company" or "Group"), a leader on the Russian engineering market, announces the decisions made by the Company in December 2018 aimed at further development and improvement of its corporate governance system.

A number of significant internal documents was accepted by the resolution made at the General Meeting of Shareholders of PJSC Evropeyskaya Elektrotekhnica on December 6, 2018, which are to regulate the activities of Company bodies, as well as a new version of the Articles of Association (actual versions of the Company's internal documents are available here).

Changes made to the Articles of Association

The new version of the Articles of Association includes not only new Russian laws, but also a number of significant provisions of the Corporate Governance Code as recommended by the Bank of Russia.

The effective version of the Articles of the Company defines a list of corporate actions which the Company considers to be essential and on which the Board of Directors makes decisions and develops a position based on the expertise of independent directors.

In order to provide shareholders with the opportunity to properly prepare for participation in the general meetings of shareholders, the main document of the Company has increased the period of information provision on the Company's website regarding these events, which are to be communicated no less than 30 days before.

Moreover, the period within which shareholders have the opportunity to nominate their candidates to the Board of Directors and the Audit Commission of the Company has been increased to 60 days.

The list of issues within the competence of the Company's Board of Directors has been expanded and the most important issues that can be resolved by the majority of all elected members of the Board of Directors, which is a significant factor in terms of management decisions, have been highlighted.

In addition, provisions defining the legal status, role and functions of the corporate secretary have been introduced to the Company's Articles for the first time. These provisions of the Articles of Association are primarily aimed at showing shareholders and potential investors that one of the Company's priorities is to respect shareholder rights. In addition, the Company's website provides an accessible way for shareholders to communicate with the Company via e-mail and telephone, allowing them to express their opinion and send their questions concerning the agenda of the shareholder meetings. In the same way, each shareholder is able to ask questions to the Head of the Board of Directors and Senior Independent Director of the Company.

New internal documents of the Company

In order to fully respect the rights of shareholders, Regulations on the General Meeting of Shareholders of PJSC Evropeyskaya Elektrotekhnica were developed, which describe in detail the processes of preparing for the General Meeting of Shareholders, how shareholders can introduce proposals to be included on the agenda, the procedure for participation in meetings, their chairmanship and voting. These processes increase the ability of Company shareholders to exercise their rights in full.

The new version of the Provisions on the Board of Directors of PJSC Evropeyskaya Elektrotekhnica was supplemented by substantial provisions on the role of the Senior Independent Director with regard to decision-making by the Board of Directors of the Company. This is because independent directors, in being independent of management and controlling shareholders and as representatives of minority shareholders, should facilitate the efficient and stable performance of the Board of Directors, the establishment of constructive dialogue between shareholders and Company management, and an increase in the degree of control that shareholders have over the activities of the Company and the Board of Directors.

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented on this event: “Taking into account the important business challenges our Company is facing, we are very interested in the progressive increase of business value. I consider a developed corporate governance system to be one of the important components of the investment attractiveness of any serious company.

Data from the annual analysis conducted by the Bank of Russia indicates a steady increase in compliance with the principles and recommendations provided in the Corporate Governance Code of Issuers in the Russian Federation. According to the results of 2017, analysts of the Bank of Russia noted that 47% of the 72 issuers had reached a high degree of compliance with the principles and recommendations (this figure was 21% two years earlier, in 2015). The companies in question are listed on Moscow Exchange Level 1 and Level 2 quotation lists as of June 30, 2018.

Our corporate governance decisions prove our commitment to the interests of both our current shareholders and future investors, who will be attracted by the positive growth rate of the Company and our profile markets.”

Source: http://www.cbr.ru/analytics/overview_practices/

About the Group of Companies PJSC Evropeyskaya Elektrotekhnica

PJSC Evropeyskaya Elektrotekhnica (MOEX: EELT) provides comprehensive services in the sphere of creating energy and electric power supply systems, electric lighting systems, and low current systems at all types of facilities, as well as industrial electric heating systems.

The Company has been working in the electrical engineering market since 2004, and at present has its own engineering and production facilities. The Company is one of the leading distributors of electrical equipment in Russia, offering customers a wide range of products made both in Russia and abroad. Thanks to a well-organized and efficient logistics system, the Company is able to supply products (including oversize loads) all over Russia, including to hard-to-reach areas of the North, as well as Belarus, Kazakhstan, Turkmenistan, Kyrgyzstan and Uzbekistan. The company established its own production of transformer substations, electric switchboard equipment of any complexity (up to 6300 A), electric lighting systems and electric heating systems.

The Company implements projects in the oil and gas sector, electric power sector, nuclear industry, metal industry, mining industry, and manufacturing industry and at transport infrastructure facilities. Evropeyskaya Elektrotekhnica's customers include companies such as Rosneft, Gazprom, NOVATEK, LUKOIL, and Nizhnekamskneftekhim. The Company's projects include Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, and the Domodedovo, Sheremetyevo, and Pulkovo airports, etc.

Since 2018, the Company has been producing highly efficient modular process equipment for clients in Oil&Gas and petrochemical markets at the site of its subsidiary ROG-Engineering, a research and production Company in Ufa (Republic of Bashkortostan, Russia).

Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):

The number of employees is about 400 (as of June 30, 2018). Since September 2017, common shares of PJSC Evropeyskaya Elektrotekhnica are traded on the Moscow Exchange with trading code EELT.

In June 2018, the Company was named "Leader of Import Substitution" at the "Leader of Competitive Sales" annual national awards, in which 450 domestic suppliers from various industries took part. 

Contacts:

PJSC Evropeyskaya Elektrotekhnica

Tel .: +7 (495) 640-93-48

Mailing address: Building 3, 1 Lyotchika Babushkina St., Moscow, 129344

Press contact                Contact for investors and analysts

press@euroet.ru           IR@euroet.ru

www.euroet.ru               www.euroetpao.ru

For more information, please contact:

Stanislav Martyushev

Director for Corporate Communications and Investor Relations

PJSC Evropeyskaya Elektrotekhnica

Tel. +7 (495) 640-93-48, ext. 164