Statement from Management. Ilya Kalenkov: Evropeyskaya Elektrotekhnica notes the successful start of the Thermal Power Plants Modernization Program in Russia

Statement from Management. Ilya Kalenkov: Evropeyskaya Elektrotekhnica notes the successful start of the Thermal Power Plants Modernization Program in Russia

ABOUT THE PROGRAM: Russia launched a modernization program for the thermal electric power sector for the period 2022–2031. This includes CHPPs all over the country, with a total capacity of 41 GW. The first practical step consists in selecting modernization projects for generating equipment at thermal power stations with a capacity of up to 9.3 GW (commissioning of the infrastructure in 2022–2024). Electric power companies participated very actively in this program; the amount of companies that applied for the energy capacity contest (26.1 GW) was 2.8 times higher than the quota.

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented: “We are following the first part of the launch of this major nation-wide program with great interest. So far, the highly active participation of electric power companies in this program and the interest shown by players in the electrical engineering market gives us high hope.

The Russian engineering market is preparing to implement these projects by consolidating expertize, ensuring that new projects comply with the international engineering methodologies (EPC and EPCM) and have the necessary funding.

The number of applications, which has amounted to almost three times the quota established for the primary selection of projects during the first three years of the program implementation, shows how skillfully the experts of the Ministry of Energy structured the program and how attractive the conditions are for energy companies. We also consider it a hugely positive factor that Siemens, a leading global company in electrical engineering, confirmed that it is willing to fully localize its high-power turbines production in Russia.

Considering those facts, we can easily state that the program is off to a great start and shows a lot promise!

At the moment, we are working on opportunities for participation in major future projects and on cooperation with Russian and international partners.”

• 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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