PJSC Evropeyskaya Elektrotekhnica's Board of Directors approved the new versions of the Dividend Policy and the Regulations on the Information Policy

PJSC Evropeyskaya Elektrotekhnica's Board of Directors approved the new versions of the Dividend Policy and the Regulations on the Information Policy

April 23, 2019. Moscow — The Board of Directors of PJSC Evropeyskaya Elektrotekhnica (hereinafter referred to as the “Company”), one of the leaders in the Russian engineering market, approved the revised Dividend Policy and the Regulations on the Information Policy of the Company.

The updated documents are published on the Company's website.

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented on the event: "The trigger that led to the amendment of those documents was the sustained upgrading of the Company's corporate governance system. The source of the new features is the recommendations of PJSC Moscow Exchange for public companies to develop and implement dividend policies.

The Management of Evropeyskaya Elektrotekhnica takes seriously the functioning of the Company's corporate governance system. It is important for us that our practices develop in accordance with the requirements of the financial market participants and the Russian regulator.

I am pleased to note that the Board of Directors initiated the necessary innovations in the local normative acts of our Company. The position of independent directors is often the starting point for innovations.”

The Company's Dividend Policy was supplemented by a number of new basic principles, which completed the basis of the Company's policy in the fulfillment of the dividend rights of its shareholders:

• The Company set the time scope of the new Dividend Policy for the medium-term development perspective, i.e. 5 years, detailed its step-by-step approach to make recommendations on profit distribution, as well as to determine the moment when the payment of dividends may not be appropriate for the Company.

• The Board of Directors continues to play a major role in making recommendations on the distribution of the Company's net profit, taking into account the interests of shareholders, the strategic priorities of the Company, its further development and the improvement of investment attractiveness. Independent members of the Board of Directors play an important role in making decisions on dividend payments. Indeed, they are a significant element in management decision-making and serve as guardians of the Company's minority shareholders' interests.

• We have clearly stated in the policy our intention to pay dividends to our shareholders annually, which will allow them, as well as potential investors, to anticipate the receipt of income from the Company's shares.

• Detailed description of the procedures for acceptance and fulfillment of dividend payments, including the setting of the date on which shareholders entitled to receive dividends are determined; specific time limits for the Company to fulfill its obligations of payment of the announced dividends; and statutory restrictions on decision-making and payment of dividends show the Company's desire to implement one of the main principles of the Dividend Policy aimed at ensuring maximum transparency of the decision-making process of dividend payment (declaration), and in determining the size and order of their payment.

• The most important approaches to the Company's Dividend Policy remained unchanged: the type of financial statements of the Company, on the basis of which dividend payments are calculated, and the amount of Evropeyskaya Elektrotekhnica Group of Companies' consolidated net profit under International Financial Reporting Standards (IFRS) remains at its previous level of not less than 20%.

As for the Regulations on the Information Policy, the changes are small in comparison to the Dividend Policy. In the section on the provision of information to shareholders, the Company identified cases where the shareholders should be warned about the confidentiality of information provided to them in order to comply with the Company's internal documents aimed at protecting insider information, as well as comply with Russian legislation on insider information and on the protection of personal data. 

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):

The personnel headcount is around 400 people. 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 Import Substitution Leader 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 (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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