Evropeyskaya Elektrotekhnica will pay out more than 50% of its profit for 2018 (IFRS) as it successfully continues with its investment program

Evropeyskaya Elektrotekhnica will pay out more than 50% of its profit for 2018 (IFRS) as it successfully continues with its investment program

July 30, 2019. Mocsow — PJSC Evropeyskaya Elektrotekhnica (hereinafter, the "Company" or "Group"), a leader on the Russian engineering market, will pay out final dividends on the results of 2018 activities in the amount of RUB 58.6 million.

This decision was made at the Annual General Shareholders Meeting held on June 27, 2019.

The final dividend amount for 2018 will amount to RUB 0.0961 per ordinary registered share of PJSC Evropeyskaya Elektrotekhnica (before taxation on income acquired as dividends). The persons who were shareholders of the Company as of July 17, 2019 have the right to receive the specified dividends.

The nominal holder registered in the list of PJSC Evropeyskaya Elektrotekhnica shareholders shall receive payment no later than July 31, 2019, and other persons registered in the list of PJSC Evropeyskaya Elektrotekhnica shareholders shall receive payment no later than August 21, 2019.

Dividend payments of PJSC Evropeyskaya Elektrotekhnica based on the results of 2018 activities:

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented on this event: “Our Company is still in its active investment development phase. We are working through a number of promising projects in the field of Engineering Systems. At the same time, priority is given to investments in expanding production of innovative oil treatment and electric power plants and bringing this to the market within the framework of Technological Systems.

Taking into account what is needed for the Company's further business development, we strive to balance the amount of investments and dividends paid to shareholders. The increased development rate of the Company is also due to the fact that most of the paid dividends are received by majority owners of the Company (the Company's free float amounts to 7.1% of the total number of ordinary shares), and these funds are mainly allocated to development of the Company's prospective products.

The total amount of dividends for 2018 (RUB 150.1 mln) amounted to 51.22% of the Company's profit for the year gone by, calculated in compliance with the financial statements according to International Financial Reporting Standards (RUB 293.1 mln). The share of dividends paid out significantly exceeded the minimal level of 20% of the net profit as prescribed by the Company's Dividend Policy (approved by the Board of Directors in April 2019).

Taking into account the high net profit margin of the Company's business and our new projects, the current dividend profitability of the shares of PJSC Evropeyskaya Elektrotekhnica is quite attractive, at about 2.1% At the same time, we acknowledge that at the Company's current investment development stage, where it is launching in-demand Russians innovations on the market, we must attract interest from investors by means of opportunities for market capitalization growth.”

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 350 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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