Annual report 2014

RU Go to Lenenergo

Shares. Capitalization

SHAREHOLDERS’ EQUITY

As at 31 December 2014, Lenenergo had a charter capital of 1,658,814,839.05 ordinary shares and 93,264311 preferred shares (each with a par value of RUB 1.0) amounting in total to RUB 1,752,079,150.05.

Authorized shares totaled 1,267,206,839.99 (each ordinary share with a par value of RUB 1.0). The authorized ordinary shares have the same rights as the placed ordinary shares.

Shareholders’ equity structure

Main shareholders of Lenenergo (over 1%) as at 31 December 2013
Interest in a charter capital, % Interest in ordinary shares, %
National Settlement Depository (nominal holder) 39.44 38.72
Depositary and Corporate Technologies (DCT) (nominal holder) 35.18 37.19
The subject of the Russian Federation — Federal city of St. Petersburg represented by the Committee on city property management 17.50 18.50
IDGC of Ural 6.03 4.98
Other 1.85 0.61
Total 100.00 100.00
Main shareholders of Lenenergo (over 1%) as at 31 December 2014
Interest in a charter capital, % Interest in ordinary shares, %
National Settlement Depository (nominal holder) 75.07 76.34
The subject of the Russian Federation — Federal city of St. Petersburg represented by the Committee on city property management 17.22 18.18
IDGC of Ural 5.93 4.89
Other 1.78 0.59
Total 100.00 100.00
Shareholders’ equity as at 31 December 2014
Information about shareholders Number of shareholders Interest in a charter capital, %
Nominal shareholders 1 75.07
Owners, legal entities 43 23.25
Owners, individuals 6,196 1.67
Shares in the shared ownership 47 0.01
Third-party-payment account 1 0.002
Total number of accounts in the shareholders register 6,288 100.00

Shareholder’s equity is given including disclosure of the nominal holder for the last closing date of the share register i.e. 19 May 2014 (before holding of the Annual General Shareholder Meeting on 23 June 2014) and including placement of additional shares during the additional issue of ordinary shares (SRN 1-01-00073-A-003D).Structure of shareholders — owners of at least 1% of ordinary shares including disclosure of the nominal holder

Shareholder’s equity is given including disclosure of the nominal holder for the last closing date of the share register i.e. 19 May 2014 (before holding of the Annual General Shareholder Meeting on 23 June 2014) and including placement of additional shares during the additional issue of ordinary shares (SRN 1-01-00073-A-003D).Structure of shareholders — owners of at least 1% of the charter capital including disclosure of the nominal holder

Free float (calculated by the method of Moscow Exchange)
Ordinary shares Preferred shares
9% 99%

Key shareholders of Lenenergo

Russian Grids (Rosseti), JSC is the largest in Russia and worldwide energy company providing transmission and distribution of electricity. http://www.rosseti.ru/

CCPM (Committee on city property management) is the executive body of the government of St. Petersburg. http://commim.spb.ru/

IDGC of Ural, JSC is a SDC of Rosseti, carries out electricity transmssion in electric networks 0.4-110 kV and technological connection of consumers to power grids in the Ural region. http://www.mrsk-ural.ru/

Rusenergo Fund (run by XENON Capital Partners) is the largest fund in Russia in the energy sector; its funds are long-term invested in the shares of Russian power generating and grid companies. http://www.xenoncp.com/

Energyo Solutions Russia Cyprus Limited (EOS) is the subsidiary of Swedish EOS AB investing in Russian power grid assets. http://www.eos-russia.se/

Citigroup Global Markets Limited is a part of Citigroup Inc., the largest international corporation which is one of the world leaders in the field of financial services. http://www.citiglobalmarkets.ru/

Brief history of issue activity
State registration number (SRN) Quantity
Initial issue 72-1p-191 2,951,852

The shares were issued in connection with the Company privatization on the basis of the Decree of the President of the Russian Federation of 15 August 1992, # 923

The issue was registered by the financial Committee of the city hall of St. Petersburg on 1 February 1993

During the issue the Company placed:

Ordinary shares 2,519,852
Preferred shares 432,000

Par value of each security of the issue: RUB 1,000 (non-denominated)

Date of state registration of the report on issue results: 6 September 1999

Additional issue (1) 72-1-2367 894,411,156

The issue was registered by the Committee on economics and finance of St. Petersburg on 29 November 1995

During the additional issue the Company placed:

Ordinary shares 763,515,156
A-type preferred shares 130,896,000

Par value of each security of the issue: RUB 1,000 (non-denominated)

Date of state registration of the report on issue results: 9 August 1999

Consolidation of issues

Consolidation of the issues of issue-grade securities was carried out by Order of the Federal Commission on Securities of Russia of 27 June 2003, # 03-1269/R

Par value of each security of the issue: RUB 1.0

The size of charter capital decreased as a result of repayment of shares pursuant to the decision on reorganization of the General Shareholder Meeting of 8 April 2005 (the report on repayment results of 1 August 2005)

By results of the shares repayment the charter capital included:

Ordinary registered shares 1-01-00073-A 691,854,144
A-type preferred shares 2-01-00073-A 93,264,311
The main objective of the additional issue of Lenenergo in 2008 was the creation on the territory of St. Petersburg of a joint network company with the increase in both technological and economic reliability, on the basis of technically indissoluble and interconnected network equipment.Additional issue (2) 1-01-00073-A-001D 234,167,535.04

The issue was registered by the Federal Financial Markets Service (FFMS of Russia) on 25 October 2007

During the additional issue the Company placed:

Ordinary registered shares 234,167,535.04

Par value of each security of the issue: RUB 1.0

Date of state registration of the report on issue results: 12 December 2008

After 3 months from the date of state registration of the report on results of additional issue of ordinary registered shares of Lenenergo the individual number of additional issue — 001D (SRN 1-01-00073-A-001D) was cancelled (notification of 1 April 2009, #09-EK-03/6679)

The main objective of the additional issues of Lenenergo ordinary shares in 2012-2014 was financing of the renovation program of cable lines 6-110 kV in St. Petersburg.Additional issue (3) 1-01-00073-A-002D 209 039 634.04

The issue was registered by the Federal Financial Markets Service (FFMS of Russia) on 21 February 2012.

During the additional issue the Company placed:

Ordinary registered shares 209,039,634.04

Par value of each security of the issue: RUB 1.0

Date of state registration of the report on issue results: 18 September 2012

After 3 months from the date of state registration of the report on results of additional issue of ordinary registered shares of Lenenergo the individual number of additional issue — 002D (SRN 1-01-00073-A-002D) was cancelled (notification of FFMS of Russia of 7 February 2013, #13-EK-03/3554)

The main objective of the additional issues of Lenenergo ordinary shares in 2012-2014 was financing of the renovation program of cable lines 6-110 kV in St. Petersburg.Additional issue (4) 1-01-00073-A-003D 926,876,304

The issue was registered by the Financial Markets Service of the Bank of Russia on 10 September 2013

During the additional issue the Company placed:

Ordinary registered shares 523,753,525.97

Par value of each security of the issue: RUB 1.0

Date of state registration of the report on issue results: 16 October 2014.

After 3 months from the date of state registration of the report on results of additional issue of ordinary registered shares of Lenenergo the individual number of additional issue — 003D (SRN 1-01-00073-A-003D) was cancelled (the notification the of Bank of Russia of 16 January 2015, #52-4/290)

Basic characteristics of Lenenergo shares
Type of shares Ordinary non-documentary registered shares A-type preferred non-documentary registered shares
State registration number 1-01-00073-A 2-01-00073-A
Volume of issue 1,658,814,839.05 93,264,311
Par value RUB 1.0 RUB 1.0
Exchange MICEX Stock Exchange MICEX Stock Exchange
Start date of trading 16 July 2003 16 July 2003
ISIN RU0009034490 RU0009092134
Ticker LSNG LSNGP
Quotation list level 2 level 2
Inclusion in stock indices

MICEX BMI

MICEX PWR

MICEX SC

MICEX BMI

MICEX PWR

MICEX SC

Over the past year, share prices of the Rosseti Group companies have declined. The decrease in market capitalization of distribution grid companies amounted to an average of 1.16%. In some cases the decline accounted for 51%. The industry index MICEX PWR lost 22.75% for the reporting period.

In 2014, Lenenergo shares were traded in the general downward trend with distribution grid companies and industry index, reflecting the mistrust of investors to the sector due to the ongoing uncertainty of state policy in respect of the distribution grid sector.

According to trading on MICEX Stock Exchange (http://www.micex.ru/).Share price performance of Lenenergo
Indicator 2012 2013 2014 2014 / 2013, %
Ordinary shares
Minimum price, RUB 5.47 2.15 1.40 — 34.88
Maximum price, RUB 11.48 7.00 3.17 — 54.71
Year-end price, RUB 6.55 2.32 1.75 — 24.57
Trading volume, shares 29,703,000 47,366,000 79,899,400 68.69
Trading volume, RUB 221,671,745 183,900,139 196,710,215 6.97
Quantity of trades 23,151 19,255 22,145 15.01
Preferred shares
Minimum price, RUB 15.271 10.8 10.401 — 3.69
Maximum price, RUB 26.749 20.29 — 9.36
Year-end price, RUB 17.60 11.37 11.20 — 1.53
Trading volume, shares 11,231,700 12,735,500 14,989,700 17.70
Trading volume, RUB 211,066,571 157,571,099 201,232,486 27.70
Quantity of trades 11,073 12,020 9,664 — 19.60
Key multiples of Lenenergo ordinary shares
Indicator 2012 2013 2014
Calculated as (net profit for the reporting year under RAS minus accrued dividends on preferred shares for the year)/number of outstanding ordinary shares.EPS, RUB 0.98 0.34 — 4.80
Calculated as the weighted average price of one ordinary share at the end of reporting period / earnings per share.P/E 6.75 7.04 — 0.37

Share price performance in 2014

Share price performance in 2014
Dynamics of MICEX, MICEX PWR and share prices of Lenenergo on MICEX Stock Exchange

As at 31 December

2012

As at 31 December

2013

As at 31 December

2014

2014 / 2013, %
MICEX 1474.72 1504.08 1396.61 –7
MICEX PWR 1707.42 1032.39 797.54 –23
The weighted average share price on the last trading day of the reporting year.Ordinary shares (LSNG), RUB 6.60 2.37 1.77 –25
The weighted average share price on the last trading day of the reporting year.Preferred shares (LSNGP), RUB 17.63 11.26 11.05 –2

Market capitalization

Dynamics of market capitalization of Lenenergo on MICEX Stock Exchange, RUB mln

Dynamics of market capitalization of Lenenergo on MICEX Stock Exchange

Hereinafter, calculation of market capitalization is made at the weighted average share price on MICEX Stock Exchange on the last trading day of the reporting period.

1 RUB 3,967 mln — market capitalization with regard to the additional issue of ordinary registered shares of Lenenergo — 003D (SRN 1-01-00073-A-003D).

Dynamics of market capitalization of Lenenergo on MICEX Stock Exchange in 2014, RUB mln

Dynamics of market capitalization of Lenenergo on MICEX Stock Exchange in 2014

Market capitalization of distribution grid companies on MICEX Stock Exchange in 2014, RUB bn

Market capitalization of distribution grid companies on MICEX Stock Exchange in 2014

Key macroeconomic indicators

Index

31 December

2012

31 December

2013

31 December

2014

2014/2013, %
S&P 500 1402.4 1841.1 2058.9 11.83
Dow Jones Industrial Average 12938.1 16576.7 17823.1 7.52
CAC 40 3620.3 4247.7 4245.5 –0.05
DAX 7612.4 9552.2 9805.6 2.65
UK FTSE 100 5925.4 6730.7 6566.1 –2.45
Nikkei 225 10395.2 16291.3 17450.8 7.12
Hang Seng 22666.6 23306.4 23605.0 1.28
MSCI World (MXWO Ind) 1338.5 1661.1 1709.7 2.93
MSCI EM (MXEF Ind) 1055.2 1002.7 956.3 –4.63
MSCI Russia (MXRU IND) 807.5 786.9 404.9 –48.54
USD/RUB 30.6 32.7 56.3 71.89
EUR/RUB 40.3 45.0 68.3 51.97
Oil, Brent 110.4 110.9 57.5 –48.12

GDR program

On 30 September 2008, Federal Service for Financial Markets (FFMS) of Russia issued permission for circulation of ordinary and preferred shares of Lenenergo outside the Russian Federation. The circulation of 74,206,626 ordinary shares and 19,585,504 preferred shares of the Company that accounts for 12.0% of total placed shares (at the moment of permission delivery) is authorized.

In Q4 2008, Lenenergo launched four sponsored programs of depository receipts (GDRs) with the right of circulation on the territory of Central Europe and USA. The issue of GDRs was carried out in the framework of the rule 144A and Regulation S. GDRs on Lenenergo shares are available in the over-the-counter (OTC) market. The Depositary Bank for Lenenergo GDRs is The Bank of New York Mellon.

Program Launch date Factor Number of GDRs, units
Ordinary shares 144A 24 October 2008 1:10 0
Preferred shares 144A 28 October 2008 1:10 0
Ordinary shares RegS 24 October 2008 1:10 7,496
Preferred shares RegS 28 October 2008 1:10 0