Evropeyskaya Elektrotekhnica's management has inspected the site in SEZ Dubna where our investment project will be implemented

Evropeyskaya Elektrotekhnica's management has inspected the site in SEZ Dubna where our investment project will be implemented

December 5, 2019. Moscow — On December 3, the management of Evropeyskaya Elektrotekhnica Group of Companies (hereinafter — the Company or Group), one of the leaders in the Russian engineering market, inspected a land plot in the special economic zone of technical-innovation type Dubna located in Moscow Oblast (hereinafter — SEZ Dubna) for the purpose of implementing the Company's investment project.

The site was attended by: 

Representatives of Evropeyskaya Elektrotekhnica Group of Companies:

• Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica,

• Aleksey Naidenkov, Executive Director of Evropeyskaya Elektrotekhnica Dubna LLC.

Representatives of SEZ Dubna:

• Denis Ivanov, Head of Investor Relations Department of SEZ Dubna,

• Sergei Pisarev, Deputy General Director for Investments and Innovations of SEZ Dubna.

The Company representatives conducted a preliminary inspection of the land plot with an area of 1.16 hectares on the right-bank site, where a production building will be constructed covering an area of 5,000 square meters. The proposed site is provided with all the necessary utilities. The following production areas are planned for the site:

• Final assembly, adjustment and testing of innovative equipment for the Oil&Gas and petrochemical industries,

• Assembly and testing of electric switchboard equipment,

• Production and testing of industrial electric heating systems.

Context:

On November 21, the Moscow Oblast government's board of experts approved the business plan of Evropeyskaya Elektrotekhnica Dubna LLC, a subsidiary of the Evropeyskaya Elektrotekhnica Group of Companies. The agreement with the Russian Federation's Ministry of Economic Development on the implementation of the resident company's technical and innovative activities will be concluded in December 2019.

The Company's investment project provides for the construction of a 5,000 sq.m. facility on the SEZ territory  for the production of state-of-the-art electric switchboard equipment, electric heating systems and Oil&Gas equipment. The planned amount of investment in the project is over RUB 335 mln.

Funds will be attracted through proprietary investments and financial resources drawn from the Evropeyskaya Elektrotekhnica Group of Companies. The facility plans to employ 90 people.

Aleksey Naidenkov, Executive Director of Evropeyskaya Elektrotekhnica Dubna LLC, commented on the event: "Within 5 years, we will construct a production building on the proposed site, with a total office and laboratory area of 5,000 square meters. The building will be constructed in two stages, 2,500 square meters each. Today we start the engineering stage, where we prepare a statement of work for the project partner. I would like to express my gratitude to my colleagues from SEZ Dubna, who are supervising our project, for their prompt responses to our questions and their assistance in obtaining our status as SEZ resident."

Denis Ivanov, Head of Investor Relations Department of SEZ Dubna, noted in this regard: "Our team provides full support to SEZ residents at every stage. We welcome the Evropeyskaya Elektrotekhnica Group of Companies as our new resident. The project planned by the Company is an example of the Russian innovation and establishment of high-tech exports with high added value. At this stage of the project, we are integrating Evropeyskaya Elektrotekhnica into the SEZ Dubna ecosystem, trying to promptly solve emerging issues, and complete the early stage as soon as possible, which usually involves high risks."

REFERENCE:

The  DubnaTechnical-Innovative Special Economic Zone was created in 2005 on the territory of the town of Dubna (Moscow Oblast) in accordance with Russian federal legislation. The SEZ includes three sections with a total area of 187.7 hectares.

Technical-innovative special economic zones are created with the aim to increase Russian presence in global high-tech markets, and refine concentration mechanisms in modern conditions of intellectual and other resources in a specific area for solving prioritized scientific and technological tasks.

Areas of activity developed by SEZ Dubna:

• Information technology

• Nuclear physics and nanotechnology

• Bio- and medical technologies

• Composites

• Design of complex process systems.

157 resident companies have been registered in SEZ Dubna by November 2019.

Investments in projects implemented by the resident companies comprised RUB 24 billion.

Dubna is located 120 km north of Moscow. The town has a population of about 70,000 people; 13,000 residents have a higher education and over 1,000 have PhDs. There are about 300 Doctors of Science.

The International Intergovernmental Organization Joint Institute for Nuclear Research, the largest science center in Russia, is located in Dubna.

In total, over 200 enterprises carry out their high-tech projects in the town.

In total, there are four special economic zones in Moscow Oblast — in the urban districts of Dubna, Fryazino, Stupino and Kashira.

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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