1 QUARTERLY REPORT Public Joint-Stock Company of Power Industry and Electrification of Kuban Публичное акционерное общество энергетики и электрификации Кубани Issuer’s code 00063-A Quarter 4, 2017 The issuer’s address: 2A Stavropolskaya str., Krasnodar, Russia 350033 Information contained in the quarterly report is subject to disclosure in accordance with the legislation of the Russian Federation on securities Director General Date: 13 February 2018 ____________ Gavrilov A.I signature Chief Accountant – head of Department of Financial Records, Accounts and Tax Returns _____________ Skiba I.V. Date: 13 February 2018 signature Contact person: Kruglova Svetlana Ivanovna, Chief Specialist of the Corporate Governance and Shareholder Relations Department Telephone: (861) 212-2510 Fax: (861) 212-2708 E-mail: [email protected] Internet page(s) used for disclosure of information contained in this quarterly report: www.kubanenergo.ru/stockholders/disclosure_of_information/amp_reports/, http://www.e-disclosure.ru/portal/company.aspx?id=2827. 2 Introduction ......................................................................................................................................................................... 5 I. Information on the bank accounts, auditor (auditing company), appraiser and financial consultant of the Issuer as well as other persons who signed the quarterly report ................................................................................................................ 6 1.1. Information on the issuer’s bank accounts ................................................................................................................... 6 1.2. Information on the issuer’s auditor .............................................................................................................................. 7 1.3. Information on the Appraiser(s) of the issuer .............................................................................................................. 9 1.4. Information on consultants of the Issuer ...................................................................................................................... 9 1.5 Information on other persons who signed the quarterly report ..................................................................................... 9 II. Information on the Financial and Economic State of the Issuer ..................................................................................... 9 2.1. Financial and economic performance indicators of the issuer ..................................................................................... 9 2.2. Market capitalization of the issuer ............................................................................................................................... 9 2.3. Liabilities of the issuer ............................................................................................................................................... 10 2.3.1. Borrowed funds and accounts payable .................................................................................................................... 10 2.3.2. Credit history of the issuer ...................................................................................................................................... 10 2.3.3. Liabilities of the issuer arising from guarantees provided to third persons ............................................................. 11 2.3.4. Other liabilities of the issuer ................................................................................................................................... 11 2.4. Risks related to acquisition of securities being placed (placed) ................................................................................. 11 2.4.2. Country and regional risks ...................................................................................................................................... 14 2.4.3. Financial risks ......................................................................................................................................................... 15 2.4.4. Legal risks ............................................................................................................................................................... 16 2.4.7. Risks connected with the Issuer’s activity .............................................................................................................. 17 III. Detailed information on the Issuer .............................................................................................................................. 18 3.1. History of foundation and development of the Issuer ................................................................................................ 18 3.1.1. Information on the Issuer’s business name (registered name) ................................................................................ 18 3.1.2. Data on the Issuer’s State Registration.................................................................................................................... 19 3.1.3 Information on establishment and development of the Issuer .................................................................................. 19 3.1.4. Contact information ................................................................................................................................................ 21 3.1.5. Taxpayer Identification Number ............................................................................................................................. 22 3.1.6. Branches and representative offices of the Issuer ................................................................................................... 22 3.2. Core business activities of the issuer .......................................................................................................................... 22 3.2.1. Core economic activities of the issuer ..................................................................................................................... 22 3.2.2. Core business activities of the issuer ....................................................................................................................... 22 3.2.3. Materials, goods (raw materials) and suppliers of issuer ........................................................................................ 22 3.2.4. Target markets of the Issuer's products (works, services) ....................................................................................... 22 3.2.5. Information on the Issuer’s licenses ........................................................................................................................ 24 3.3. Issuer's future activity plans ....................................................................................................................................... 25 3.5. Subsidiary and dependent companies of the Issuer .................................................................................................... 26 3.6. Composition, structure and value of the Issuer's fixed assets, information on plans for acquisition, replacement and retirement of fixed assets as well as all facts of encumbrance on the Issuer’s fixed assets ............................................... 26 IV. Information on the Issuer’s business activity .............................................................................................................. 26 4.1. Results of business activity ........................................................................................................................................ 26 4.2. Liquidity of the Issuer, sufficiency of equity and current assets ................................................................................ 27 4.3. Financial investments of the Issuer ............................................................................................................................ 27 4.4. Intangible assets ......................................................................................................................................................... 27 4.5. Information on the Issuer’s policy and expenses in the field of scientific and technical development, with regard to licenses and patents, new researches and developments ................................................................................................... 27 4.6. Analysis of development trends in the sphere of Issuer's core activity ...................................................................... 27 4.7. Analysis of factors and conditions affecting the Issuer’s activity .............................................................................. 27 4.8. Issuer's Competitors ................................................................................................................................................... 30 V. Information on persons that are members of the Issuer’s management bodies, the Issuer’s bodies in charge of control 3 of financial and business activity and brief details on the Issuer’s employees (workers) ................................................. 30 5.1. Information on the structure and competence of the Management Bodies of the Issuer ............................................ 30 During the reporting quarter changes in information disclosed in this chapter did not occur. .......................................... 30 5.3. Information on the amounts of reward, benefits and/or compensation