Investor Relations
In 2011, the Company provided effective two-way communication between the Management of IDGC of Centre, JSC and the investment community, providing investors with the opportunity to gain exact insight into the current condition of the Company, its perspectives and effect their own assessment of the fair value of the Company.
Key directions of activities of the Shareholder and Investor Relations Department
IR measures focused on the improvement of availability of the information on the Company, expansion of the analytical coverage of IDGC of Centre, JSC, and development and implementation of IR-tools for the use by the investment community.
The reporting period saw intensive news background on the topic of tariff regulation. As a result there was a high demand within the investment community to obtain additional information on the results of performance of the Company and its branches, and on expected decisions on the establishment of new tariffs within the switch to the RAB-regulation method. At the end of 2011 the Company’s Management and Shareholder and Investor Relations Department conducted 74 in-person meetings with investors,
Interaction with investors in 2011:
| Period | Initiator of meetings | Number of meetings |
|---|---|---|
| I quarter | IDGC of Centre, JSC | 2 |
| II quarter | IDGC of Centre, JSC | 1 |
| VTB Capital | 9 | |
| Deutsche Bank | 10 | |
| Renaissance Capital | 1 | |
| III quarter | IDGC Holding, JSC | 17 |
| Unicredit Securities | 6 | |
| IV quarter | VTB Capital | 15 |
| Goldman Sachs (NDR) | 9 | |
| IDGC of Centre, JSC | 3 | |
| TOTAL | 74 |
About 14% of the equity capital of the Company is accrued to shareholders from the Nordic countries (Finland, Sweden). Management of the Company in the reporting year held meetings with the representatives of investment funds from these countries with the assistance of Goldman Sachs investment bank.
In the reporting period the IR-services of the Company actively cooperated with analysts of investment banks, and by the end of the year 17 banks and investment companies released reviews on the performance of the Company and prospects for growth of the shares of IDGC of Centre, JSC.
Expansion of the analytical coverage of IDGC of Centre, JSC in 2011:
| Bank/company name | Reports on the distribution grid sector, pcs. | Reports on the Company, pcs. |
|---|---|---|
| IB Otkritie | 3 | 5 |
| ING Bank | — | 1 |
| Aton | 1 | — |
| VTB Capital | 2 | 2 |
| BCS | 1 | 2 |
| Goldman Sachs | 2 | 1 |
| RMG | 1 | 1 |
| Deutsche Bank | 3 | — |
| JP Morgan | — | 1 |
| Gazprombank | 1 | 1 |
| Metropol | 1 | 1 |
| Morgan Stanley | 2 | — |
| Russ Invest | 1 | — |
| Alemar | 1 | — |
| TKB Capital | 1 | 1 |
| Alfa Bank | 1 | 1 |
| TOTAL | 21 | 17 |
Assessment of the IR-activities of the Company on the part of the representatives of minority stakeholders is also very important for the Company, for which reason the Committee for Strategy and Development of the Board of Directors of IDGC of Centre, JSC reviewed the report on the IR-activities for 2011 (Minutes No. 16/11 of December 21, 2011).
In the fourth quarter of 2011 the Shareholder and Investor Relations Department of IDGC of Centre, JSC obtained the diploma “The Best Practice in the Sphere of Investor Relations” from among major Russian companies within the framework of a contest arranged by the agency IBS OJCS and Stock Market Magazine. The IR-Department of IDGC of Centre, JSC took the first place.
Management of the Company on a regular basis holds meetings with representatives of investment banks and funds and participates in investment conferences. Information on the measures carried out and the list of events scheduled by the Company for 2012 is available on the website in the Information for the Shareholders and Investors section.