Shares. Capitalization

Share capital

Authorized capital of JSC Lenenergo as of 31.12.2013 amounted to RUB 1,228,325,624.08:1,135,061,313.08 ordinary shares and 93,264,311 preferred shares (with par value of 1 rub each).

The number of declared shares constitutes 1,790,960,366.0 pieces (ordinary shares with par value of 1 rub each). Declared ordinary shares have the same rights as the placed ordinary shares.

Share capital structure

Major holders of JSC Lenenergo shares (over 1%) on 31.12.2012

Owners of securities

Stake in the authorized capital, %

Stake in ordinary shares, %

JSC Russian Grids

49.36

53.41

Subject of the Russian Federation – the city of federal value St. Petersburg represented by the Committee on state property management

24.56

26.57

NPO CJSC National Settlement Depository (nominal holder)

11.62

8.86

JSC IDGC of Ural

8.46

7.15

JSC J. P. Morgan Bank International (nominal holder)

1.78

1.88

JSC ING BANK (Eurasia) (nominal holder)

1.42

0.98

Other

2.80

1.15

Total

100.00

100.00

Major holders of JSC Lenenergo shares (over 1%) on 31.12.2013

Owners of securities

Stake in the authorized capital, %

Stake in ordinary shares, %

JSC Russian Grids

49.36

53.41

Subject of the Russian Federation – the city of federal value St. Petersburg represented by the Committee on state property management

24.56

26.57

NPO CJSC National Settlement Depository (nominal holder)

15.04

11.99

JSC IDGC of Ural

8.46

7.15

Other

10.80

1.15

Total

100.00

100.00

Information on holders of shares

Quantity of holders

Share in the authorized capital, %

Nominal holders of shares

2

64.39

Owners – legal entities

42

33.16

Owners – individuals

6,283

2.43

Shares in joint shared property

46

0.02

Total, quantity of persons in the register of shareholders

6,373

100.00

Structure of shareholders – owners of over 1% of ordinary shares considering disclosure of For the last closing date of the shareholders register – 23.12.2013nominal holders
Structure of shareholders – owners of over 1% of the authorized capital considering disclosure of For the last closing date of the shareholders register – 23.12.2013nominal holders
Free-float (calculated under design procedure of JSC Moscow Exchange)
JSC Rosseti

the largest Russian and worldwide energy company providing transmission and distribution of electric power (www.rosseti.ru).

CSPM

Committee on state property management, executive body of the Government of St. Petersburg (www.commim.spb.ru).

JSC IDGC of Ural

carries out electricity transmission by networks 0.4–110 kV and technological accession of consumers to power supply networks in the Ural region (www.mrsk-ural.ru).

Rusenergo fund (controlled by XENON Capital Partners)

the largest fund in Russia in the sphere of power industry which funds are invested in the shares of Russian power generating and grid companies on a long-term basis (www.xenoncp.com).

Energyo Solutions Russia Cyprus Limited (EOS)

subsidiary of EOS AB (Sweden) making investments into Russian power network assets (www.eos-russia.se).

Citigroup Global Markets Limited is a part of Citigroup Inc.

the largest global corporation, one of world leaders in the sphere of financial service (www.citiglobalmarkets.ru).

In 2013 the second stage of additional issue of ordinary shares was launched, the main goal of which is receiving funds of the federal budget (by means of participation in JSC Rosseti placement) for financing of the investment program of JSC Lenenergo, including renovation of cable network 6–110 kV of St. Petersburg.

The decision on additional issue of securities in the form of registered ordinary non-documentary shares with par value of 1 rub in the quantity of 926,876,304 pieces by public offering was approved by the decision of the Board of Directors of JSC Lenenergo on July 17, 2013 (Minutes # 1 of July 18, 2013) on the basis of the decision on increase in the authorized capital by the placement of additional shares approved by the Annual general meeting of shareholders of JSC Lenenergo on June 20, 2013 (Minutes # 1/2013 of June 21, 2013). The list of persons having the preemptive right of acquisition of the placed securities was made on 06.05.2013.

Additional issue of ordinary shares was registered by the Financial Markets Service of the Bank of Russia on September 10, 2013. State registration number of the issue: 1-01-00073-A-003D. The offering price constituted RUB 6.06 and was determined on the basis of the average value of prices of transactions with JSC Lenenergo ordinary shares at JSC MICEX Stock Exchange trades during the period from 18.01.2013 to 19.04.2013.

In September, 2013 JSC Rosseti during implementation of the preemptive right acquired 495,049,505 ordinary shares for the sum of RUB 3,000,000,000.3. The increase in authorized capital of JSC Lenenergo is expected in 2014 after registration of the report on results of additional issue.

Brief history of the Company’s issue activity

State registration number

Quantity of shares, pieces

First issue

72-1p-191

2,951,852

The issue of shares was carried out in connection with the Company’s privatization on the basis of the Decree of the President of the Russian Federation # 923 of 15.08.1992.

The issue was registered by the financial committee of the city hall of St. Petersburg on 01.02.1993.

During the issue there were placed:

Ordinary shares

2,519,852

Preferred shares

432,000

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

State registration date of the report on results of the issue: 06.09.1999

Additional issue (1)

72-1-2367

894,411,156

The issue was registered by the committee of economy and finance of St. Petersburg on 29.11.1995.

During the additional issue there were placed:

Ordinary registered shares

763,515,156

Preferred shares of type A

130,896,000

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

State registration date of the report on results of the issue: 09.08.1999

Consolidation of issues

The Resolution of the Federal Commission on Securities of Russia # 03-1269/R of June 27, 2003 carried out consolidation of the issues of issue-grade securities.

Par value of each security of the issue: RUB 1.

The size of authorized capital decreased by results of shares repayment pursuant to the decision of the General shareholder meeting on reorganization of 08.04.2005 (Report on repayment results of 01.08.2005).

By results of shares repayment authorized capital consisted of:

Ordinary registered shares

1-01-00073-A

691,854,144

Preferred shares of type A

2-01-00073-А

93,264,311

Main goal of the additional issue of JSC Lenenergo in 2008 was creation in the territory of St. Petersburg of the joint grid company with increase in reliability both technological and economic, on the basis of technically indissoluble and interconnected network equipment. Additional issue (2)

1-01-00073-А-001D

234,167,535.04

The issue was registered by the Federal Financial Markets Service (FFMS of Russia) on 25.10.2007.

During the additional issue there were placed:

Ordinary registered shares

234,167,535.0

Par value of each security of the issue: RUB 1.

State registration date of the report on results of the issue: 12.12.2008.

Upon expiration of 3 months from the state registration of the report on results of additional issue of ordinary registered shares JSC Lenenergo made a cancellation of the individual number of additional issue – 001D (SRN – 1-01-0073-A-001D) (notification message # 09-EK-03/6679 of 01.04.2009)

Main goal of the additional issues of ordinary shares of JSC Lenenergo in 2012-2013 was financing of the program of renovation of cable lines 6–110 kV in St. Petersburg.Additional issue (3)

1-01-00073-А-002D

209,039,634.04

The issue was registered by the Federal Financial Markets Service (FFMS of Russia) on 21.02.2012.

During the additional issue there were placed:

Ordinary registered shares

209,039,634.00

Par value of each security of the issue: RUB 1.

State registration date of the report on results of the issue: 18.09.2012.

Upon expiration of 3 months from the state registration of the report on results of additional release of ordinary registered shares JSC Lenenergo made a cancellation of the individual number of additional issue – 002D (SRN – 1-01-0073-A-001D) (notification message of FFMS of Russia # 13-EK-03/3554 of 07.02.2013).

Main goal of the additional issues of ordinary shares of JSC Lenenergo in 2012-2013 was financing of the program of renovation of cable lines 6–110 kV in St. Petersburg.Additional issue (4)

1-01-00073-А-003D

926,876,304

The issue was registered by the Financial Markets Service of the Bank of Russia on 10.09.2013.

For the end of 2013 the issue was in a placement stage

Shares

Since July 16, 2003 JSC Lenenergo shares are traded at the Russian stock exchange CJSC MICEX Stock Exchange entering into the group of JSC Moscow Exchange. On December 27, 2007 ordinary and preferred shares were included in the quoted list B.

Main characteristics of JSC Lenenergo shares

Type of shares

Ordinary registered non-documentary shares

Preferred registered non-documentary shares of type A

State registration number

1-01-00073-А

2-01-00073-А

Volume of the issue

1,135,061,313.08

93,264,311

Par value

RUB 1

RUB 1

Exchange

MICEX STOCK EXCHANGE

MICEX STOCK EXCHANGE

Start date of trades

16.07.2003

16.07.2003

ISIN

RU0009034490

RU0009092134

Ticker

LSNG

LSNGP

Quoted list

B

B

Inclusion in exchange indexes

Wide market (MICEX BMI)

Power industry (MICEX PWR)

Support echelon (MICEX SC)

Wide market (MICEX BMI)

Power industry (MICEX PWR)

Support echelon (MICEX SC)

For the last year stock quotations of the companies entering into JSC Rosseti group essentially decreased. Drop in the capitalization of distribution grid companies constituted on average from 40% to 70%. The branch index MICEX PWR (MICEX power) lost 40% for the reporting period.

In 2013 JSC Lenenergo shares traded in the general downward trend with other distribution grid companies and the branch index reflecting mistrust of investors to the sector due to the continued uncertainty of tariff regulation.

Data on trades at MICEX Stock Exchange (http://www.micex.ru/)Key indicators of JSC Lenenergo shares trade

2011

2012

2013

Changes, 2013/2012, %

Ordinary shares

Minimum price, RUB

9.6

5.5

2.2

-61

Maximum price, RUB

29.6

11.5

7.0

-39

Price for the year end

10.0

6.6

2.3

-65

Volume of trades, pieces

21,309,200.0

29,703,000.0

47,366,000.0

59

Volume of trades, RUB

375,007,537.0

221,671,745.0

183,900,139.0

-17

Number of transactions, pieces

17,286,0

23,151.0

19,255.0

-17

Actions exclusive

Minimum price, RUB

20.1

15.3

10.8

-29

Maximum price, RUB

50.0

26.8

20.3

-24

Price for the year end

22.0

17.6

11.4

-35

Volume of trades, pieces

8,071,500.0

11,231,700.0

12,735,500.0

13

Volume of trades, RUB

267,706,640.0

211,066,571.0

157,571,099.0

-25

Number of transactions, pieces

16,699.0

11,073.0

12,020.0

9

Key multiples of ordinary shares of JSC Lenenergo

2011

2012

2013

Calculated on the formula: (net profit for the reporting year calculated under RAS – the sum of accrued dividends on preferred shares for the reporting year) / number of ordinary outstanding shares.Profit per share (EPS), RUB

1.38

0.98

0.34

Calculated on the formula: average cost of one ordinary share for the end of the reporting year/profit per share.P/E

7.14

6.75

7.04

Key events which could affect the cost of shares according to the Company

Dynamics of cost and trade volumes of ordinary shares on MICEX Stock Exchange in 2013
Dynamics of stock quotations of JSC Lenenergo in comparison with dynamics of MICEX and MICEX PWR in 2013
Dynamics of MICEX, MICEX PWR and JSC Lenenergo shares on MICEX Stock Exchange in 2013

31.12.2011

31.12.2012

31.12.2013

Change 2013/2012, %

MICEX, p.

1,402.23

1,474.72

1,504.08

2

MICEX PWR, p.

2,053.02

1,707.42

1,032.39

-40

Weighted average stock value for the last trading day of the reporting yearOrdinary shares (LSNG), RUB

9,84

6,60

2,37

-64

Weighted average stock value for the last trading day of the reporting yearPreferred shares (LSNGP), RUB

21.74

17.63

11.26

-36

Capitalization

1Hereinafter calculation of capitalization is made on the average stock value on MICEX Stock Exchange (JSC Moscow Exchange) for the last trading day of the reporting period

Key macroeconomic indicators

Index

31.12.2012

31.12.2013

Change 2013/2012, %

S&P 500, p.

1,402.4

1,848.4

32

Dow Jones Industrial Average, p.

12,938.1

16,576.7

28

CAC 40, p.

3,620.3

4,296.0

19

DAX, p.

7,612.4

9,552.2

25

UK FTSE 100, p.

5,925.4

6,749.1

14

Nikkei 225, p.

10,395.2

16,291.3

57

Hang Seng, p.

22,666.6

23,306.4

3

MSCI World (MXWO Ind), p.

1,338.5

1,661.1

24

MSCI EM (MXEF Ind), p.

1,055.2

1,002.7

-5

MSCI Russia (MXRU IND), p.

807.5

786.9

-3

USD/RUR

30.6

32.7

7

EUR/RUR

40.3

45.0

12

oil, Brent, USD

110.4

110.9

0.5

Key world indexes completed the year of 2013 with a growth. Indexes of the majority of the developed countries demonstrated confident positive dynamics while indexes of emerging markets showed a slight growth (Hang Seng +3%; MICEX +2%). By results of 2013 the index of the developed markets MSCI World grew by 24%, and indicators of emerging markets (MSCI EM) and the Russian market (MSCI Russia) showed a decrease (–5% and –3% respectively).

The most outstanding result among the developed countries markets showed a Japanese index Nikkei 225, having increased by 57% for the year, that is caused by positive feedback of the investment community to policy of “Abenomics”, formulated by Sindzo Abe, the prime minister of Japan, which means a whole range of measures on monetary, fiscal policy and the strategy of economic growth.

For the American stock markets the year of 2013 became the best since 1997. At the end of 2013 S&P 500 showed growth over 30% in comparison with the similar period of last year, and Dow Jones Industrial Average grew by 28%.

For the European financial markets the year of 2013 became the best since 2009 that was promoted by leveling of fears of investors concerning disintegration of euro zone and its turn from recession to restoration. Among the European indexes the German DAX which has grown by 25% to the level of last year, and the French CAC 40 which has demonstrated growth by 19% became leaders of growth. The British FTSE 100 showed the best result for the four-year period and grew by 14%.

Decrease in MSCI Russia following the results of 2013 was promoted by the negative news background primarily connected with events round Ukraine, and stagnation signs in economics. The situation of geopolitical instability led to revision of IMF of the forecast on growth of the Russian economics in 2014 from 1.3% to 0.2%. According to the Ministry of Finance of the Russian Federation the average price for Urals oil brand, the main export goods of the country, in 2013 made USD 107.9 per barrel, having decreased by 2.4% from USD 110.5 fixed in 2012.

According to IMF, economic growth of the world economy in 2013 was at the level of 3%. In the long-term experts of the organization forecast increase of world growth rates to 3.6% in 2014 and 3.9% in 2015. In particular, emerging markets and developed markets a gradual increase in growth rates of economics from 4.7% in 2013 to about 5% in 2014 and 5.3% in 2015 is forecastedAnalytical summary of the report of IMF «Prospect of development of world economy», April 2014 http://www.imf.org/external/russian/pubs/ft/weo/2014/01/pdf/textr.pdf.

GDR program

The Federal Financial Markets Service (FFMS) of Russia issued permission to the circulation of ordinary and preferred shares of JSC Lenenergo outside the Russia Federation on September 30, 2008. The circulation of 74,206,626 ordinary shares and 19,585,504 preferred shares of the Company that constitutes 12.0% of total of the placed shares (at the moment of permission delivery) was authorized abroad.

In Q4 2008 JSC Lenenergo opened four sponsored programs of depository receipts (GDR) on JSC Lenenergo shares with the right of circulation on the territories of the Central Europe and the USA. GDR issue was carried out within programs by a rule 144А and by provision S. Global depository receipts on JSC Lenenergo shares are traded on the OTC securities market. GDR bank depositary of JSC Lenenergo is the Bank of New York Mellon.

Security

Program

Opening date

Factor

Quantity of receipts, pieces

Ordinary shares

144А

24.10.2008

1:10

0

Preferred shares

144А

28.10.2008

1:10

0

Ordinary shares

RegS

24.10.2008

1:10

7,496

Preferred shares

RegS

28.10.2008

1:10

0

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