Annual Report 2013

Relations with Shareholders and Investment Community

One of the key goals of the Company in dealing with the shareholders and representatives of the investor community is to increase the Company’s investment appeal.

The Company continued to implement the program of improving corporate governance in 2013 based on the principles of reserving shareholder rights and information transparency.

The Company achieved the following results under this program in 2013:

126
meetings

were held with the representatives of the investor community in 2013

17
analysts

carried out information and analytical coverage of the Company’s shares

8.5
points

out of 10 – evaluation of IR perfomance in 2013

  • Shares of the Company remained in the ‘A’ listing of the first tier of the MOEX. We signed an agreement with JSC FINAM on rendering the market-maker services. This allowed IDGC of Centre to significantly improve the liquidity of its shares.
  • In order to improve information transparency, we published the Company’s annual report for 2012 on the electronic trading floors (Bloomberg, Euroland.com, Finam.ru), which helped us to attract the interests of new investors.
  • The IR division increased the range of social media used to publish the main Company’s information.
  • The new ‘IR News’ section appeared on our corporate website to cover the key events which may be of interest to shareholders and investors.

The Company’s management maintains ongoing dialog with the institutional investors and analysts by holding meetings, presentations, online conferences and conference calls, meets with individual shareholders and submits all necessary information.

One hundred and twenty-six meetings were held with the representatives of the investor community in 2013. The Company attended 11 major IR events, including investor forums hosted by VTB Capital and Sberbank, and organized several meetings within the course of the international investment conference of HSBC in London.

Online conferences at Finam.ru have proven to be an efficient means of communication with the minority shareholders and private investors. A recent event devoted to the release of the unaudited consolidated financial statements for H1 2013 under IFRS attracted significant interest and became a useful tool of establishing relations with shareholders and investors.

IR EVENTS IN 2013:

April The Company’s management attended a conference of ATON investment company, within the course of which 16 meetings with the representatives of the investment and pension funds were held.
IDGC of Centre participated in the Russia Forum 2013, an investment forum hosted by Sberbank, within the course of which the Company’s management organized individual meetings with the representatives of 15 investment funds and the Company’s shareholders.
September IDGC of Centre held an online conference at Finam.ru devoted to the operating results for H1 2013 under IFRS, approval of the adjusted business plan and the 2013 Investment Program.
The Company’s management attended the 13th Annual CEEMEA Investor Forum of HSBC in London. Five one-on-one meetings with the investor community representatives acting on behalf of the major asset management funds and specializing in the investments on the developing markets were held during the conference.
General Director of the Company Oleg Isayev attended the 17th St. Petersburg International Economic Forum, one of the leading annual international summits addressing the issues of economics and business.
October The Company attended the annual RUSSIA CALLING! Conference hosted by VTB Capital, during which the management of IDGC of Centre held 14 individual meetings with the representatives of both Russian and foreign investment funds.
November During the Utilities’ Day conference hosted by BCS Financial Group, the management of IDGC of Centre met with the representatives of the investor community and discussed operating results of the Company for Q1-Q3 2013.

Regular information and research coverage of the electric power industry as a whole and IDGC of Centre stock in particular is carried out by 17 investment bank analysts, including VTB Capital, Sberbank CIB, Renaissance Capital and HSBC. We should point out that many banks stopped covering electric energy companies due to the increase of risks and the reduction of investment appeal of the industry in 2013. This is why the number of investors is slightly lower than in the previous year.

We have been surveying the investor community representatives for several years now in order to give an objective evaluation of the IR division operations and reveal the areas, in which shareholder and investor relations require improvement.

IR SERVICE PERFORMANCE EVALUATION:

The buy-side and sell-side respondents singled out information transparency, a high corporate governance rating and high qualification of management as the key strengths of the Company in 2013. The respondents gave positive evaluation to the operations of the IR division (8.5 out of 10 points).

The Company’s corporate website is one of the key means of interaction of the IR service with the investor community. For current information, news and reviews, please visit our corporate website.

Information for the analysts, shareholders and investors is also published in the social media:Twitter, LinkedIn, Slideshare and foreign information sources: Bloomberg, Thomson Reuters, Google finance, DJ Market watch.