Exchange information

Trading floors on which PJSC Inter RAO shares are traded
PJSC Inter RAO shares
Number of common shares 104,400,000,000
Nominal value of shares, RUB 2.809767
Total nominal value of issue, RUB 293,339,674,800
ISIN RU000A0JPNM1
State registration number 1-04-33498-E
Trading floor MOEX
Start date of trading December 1, 2009
Quotation list First-tier
Exchange code (МОEX) IRAO
Bloomberg ticker IRAO RX
Thomson Reuters Eikon ticker IRAO MM

As part of a review of the weights of companies in the MSCI Russia index in 2019, and in accordance with MSCI methodology, an increase in the free float of Inter RAO shares to 34.24% resulted in growth in their valuation by an independent agency in the free float category to 35%, which increased the Company’s weight in the index to 1.22.

Information about the inclusion of the Company’s shares in the following indices
Index name Ticker Weight of Inter RAO’s shares in index as of 12/31/2018, % Weight of Inter RAO’s shares in index as of 12/31/2019, %
MOEX Index (composite index) MICEXINDEXCF 1.36% 1.47%
Moscow Exchange Electric Power Industry Index MICEXPWR 14.60% 16.17%
Broad Market Index MICEXBMI 1.16% 1.18%
RTS Index RTSI 1.42% 1.47%
FTSE Emerging AWALLE 0.05% 0.08%
FTSE Russia WIRUS 1.19% 1.16%
FTSE All-World AWORLDS 0.01% 0.01%
FTSE4Good Emerging F4GEM 0.09% 0.10%
MSCI Russia MXRU 0.90% 1.22%
MSCI Emerging Markets MXEM 0.04% 0.05%
MSCI ACWI Index ACWI 0.004% 0.01%
RUSSIA ESG LEADERS 3.25% 4.17%
S&P Russia BMI SRUU 0.91% 1.11%
Dow Jones Russia DJRUSGD 0.88% 1.15%
Nasdaq Russia NQRU 1.40% 3.68%
Nasdaq AlphaDEX Emerging Markets NQDXEM 1.09% 1.16%
Market Vectors Russia Index (Van Eck) MVRSX 2.38% 2.66%
STOXX Russia Total Market TCRUP 0.79% 0.87%
STOXX Optimised Russia EEORGT 1.38% 1.47%

Overview of the stock indices and capitalization dynamics of energy companies:

Global stock indices, %
Global stock indices, %
Industry indices, %
Industry indices, %

One of the most important events on global markets in 2019 was the trade war between the United States and China. Markets became more volatile, reflecting the course of negotiations between countries on increasing mutual trade duties. The yield on the Moscow Exchange Index reached 28.6%. Both favorable external and internal factors contributed to the high profit margins on the Russian stock market. The U.S. Federal Reserve’s monetary policy, which had been easing since the start of the year, led investors to reassess the assets of emerging markets. After temporarily declining in the fall of 2018, oil prices stabilized by the end of the year, which also contributed to increased interest in the shares of Russian companies. Domestic macroeconomic stability as well as high dividend yield prompted greater interest in the securities of Russian issuers.

Capitalization of energy companies, %
Capitalization of energy companies, %

‘Electric Utilities’ ranked third among industry indices in the Russian Federation. Corporate events or the expectation of their materialization had the biggest influence on the dynamics of the ‘Electric Utilities’ Index. Inter RAO shares increased by 30%, which is higher than the industry-specific Electric Utilities Index and the Moscow Exchange Index.

Market Capitalization of PJSC Inter RAO
Year Market Capitalization, RUB mln Change vs. previous year
2019 526,385 +30%
2018 405,020 +14%
2017 354,960 –12%
Average daily trading volume with PJSC Inter RAO shares
Year Average daily trading volume, RUB thousand Change vs. previous year
2019 653,706 +82%
2018 358,308 –6%
2017 381,996 +7%
PJSC Inter RAO stock price dynamics in 2019

PJSC Inter RAO shares grew by 30% in 2019, which is higher than the industry-specific Electric Utilities Index and the Moscow Exchange Index.

Information Policy

The Regulation on the Information Policy of PJSC Inter RAO was approved by the Board of Directors on December 29, 2016. The Information Policy is based on the principles of regular, consistent, and prompt information disclosure as well as its availability, reliability, completeness, and comparability. The Regulation contains a list of information that is required to be disclosed, additional information as well as a procedure for communication in interaction with stakeholders.

For control purposes, the Board of Directors annually reviews an information policy compliance report. In 2019, this report was presented at a meeting on March 29, 2019 and contained information on full compliance with the obligations of the Regulation on the Scope of Information Disclosure.

Interaction with investors and analysts

Inter RAO uses a wide range of channels to interact with shareholders and investors. The Group’s management is committed to improving the quality of voluntary disclosure. For example, during webcasts, representatives of the Group’s management not only disclose financial statements, but also financial forecasts and plans, present a quarterly report on measures that have been taken to improve operating efficiency in key segments, highlight key and relevant market trends, and answer questions from investors and analysts. Inter RAO regularly updates information on its official website and publishes an Analyst’s Handbook, which aggregates operating and financial results of the Group’s core assets. The Company’s Investor Relations Team is in constant contact with investors and analysts.

In 2019, 188 meetings were held with Russian and foreign investors. The format of the meetings included Investor Day, road shows, webcasts, and conference calls. Most of the meetings with investors were held as part of conferences in the Russian Federation, particularly in Moscow.

Meetings with investors, %
Meetings with investors, %

Meetings were held with representatives of major global European and Russian investment funds, including:

  • Amundi Asset Management (>USD 985 bln)
  • T Rowe Price (>USD 772 bln)
  • Abu Dhabi Investment Authority (>USD 770 bln)
  • Aberdeen (>USD 669 bln)
  • Schroders (>USD 462 bln)
  • Pictet & CIE (>USD 437 bln)
Interaction with investors and analysts in 2019
Q1
  • IFRS webcast/conference call for 2018
  • Investor Day (London), which covered the following themes:
    • Strategic priorities and the long-term development forecast
    • Sustainable development and improvement of corporate governance
    • Modernization of generating equipment
    • Financial management
    • Export potential in the Russian electric utilities sector
  • Road show that covered Investor Day topics (Stockholm, Frankfurt, and Vienna)
Q2
  • Raiffeisenbank Conference (Zürs)
  • Moscow Exchange Forum and BCS Conference (Moscow)
  • IFRS webcast/conference call for 1Q 2019 (Moscow) on financial results and the preliminary results of the selection of the Group’s capacity proposed for modernization
  • Sberbank conference ‘Russia: The Inside Track’ (Moscow)
  • 23rd Renaissance Capital Investment Conference (Moscow)
Q3
  • IFRS webcast/conference call for 1H 2019 (Moscow)
  • Road show on the preliminary results of the selection of the Group’s capacity proposed for modernization and operational efficiency increase of business segments (London, Frankfurt, and Stockholm)
  • ATON Energy Day (Moscow) – focus on interaction with retail investors
  • Renaissance Capital Conference ‘Russia in Focus’ (London)
Q4
  • VTB Capital’s ‘Russia Calling!’ Investment Conference (Moscow)
  • IFRS webcast/conference call for 9M of 2019 (Moscow)
  • Investor Day (Moscow), which covered the following themes:
    • The Group’s strategic priorities for 2020
    • The Group’s long-term development forecast
    • Modernization of generating capacities
    • Development of the wholesale capacity market
    • Sustainable development of Inter RAO

The largest meetings were held at conferences in Moscow by such investment houses as Renaissance Capital, VTB Capital, and ATON. Members of the investment community were particularly interested in the Investor Day held in London in March 2019. Ronald James Pollett, an independent member of the PJSC Inter RAO Board of Directors, took part in this event for the first time. As part of a Q&A session involving the Group’s Management, representatives of major international funds, both current and potential shareholders of the Group, had an opportunity to ask questions directly and continue talking in a dialogue format. Several members of the investment community also attended the Investor Day event, which took place in Moscow in December 2019.

Information on the main events that were held and the presentation materials for them are available on thewebsite.

Interaction with minority shareholders

Inter RAO is expanding its forms of shareholder engagement as part of the PJSC Inter RAO Program for Interaction with Minority Shareholders for 2018-2020.

In 2019, the Group continued working on an animated product to answer the most common questions asked by shareholders about how to exercise the rights to their shares, updated the memo for shareholders in the run-up to the AGM, continued work with LLC Inter RAO Invest to provide services to shareholders on transactions with the Company’s shares, ensured electronic voting at the AGM with clarifications on the procedure for such voting in the Energy without Borders newspaper, and updated information booths at sites where the Group’s companies have a presence.

In 2019, the call center of the Company’s Registrar answered 5,635 calls from shareholders as well as 149 electronic queries. PJSC Inter RAO employees answered 187 calls and 76 electronic and 54 written queries from shareholders, prepared 26 personal income tax 2 certificates at the request of shareholders, and held 12 personal meetings with the Company’s shareholders.

An analysis of shareholders’ queries shows a slight increase in the percentage of requests for a personal income tax 2 certificate, the registration of inheritance rights and the sale of shares, and a reduction in queries on other issues. This can be attributed to work as part of the Program for Work with Minority Shareholders, the gradual displacement of shareholders with the younger generation as well as the introduction of digital technologies in the securities market.

Changes in shareholders’ queries