RUSNANO Board of Directors Meets in Regular Session

16 October 2013

Meeting in regular session, the Board of Directors of RUSNANO adopted a resolution to finance a network of integrated residential construction factories. Total investment of 9 billion rubles, including cofinancing of 2 billion rubles from RUSNANO, is planned. Project initiator Morton will build factories that use solutions from innovative companies in RUSNANO’s portfolio to manufacture precast concrete and allied products. The factories are without analogue in Russia, and the first will become test site for new construction technologies, demonstrating that along with achieving better building attributes, these innovations can significantly reduce the cost of bringing homes to the consumer and lower what he must pay to service and maintain his residence. In particular, the project will use paints, spackle, and plasticizing agents from Akrilan, window and frame units from STiS, hot-melt adhesives and special chemicals from Metaclay, and industrial printers from SUN. In the future, the new project will draw on products from other portfolio companies.

Final details of RUSNANO’s involvement in the new investment project will be published after the investment agreement has been signed by participants.

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The Board of Directors heard a report on RUSNANO’s partial exit from portfolio company Russian Quartz, producer of high purity quartz concentrates that are the bases for nanoelectronic, optical, lighting technology, and chemical industries. Japanese financial-industrial giant Sumitomo Corporation purchased 16.13 percent of the shares of the portfolio company from RUSNANO to become a new strategic investor in the enterprise.

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The Board of Directors agreed to changes in RUNANO’s involvement in an investment project that uses thin film technology from Swiss high-tech group Oerlikon to manufacture solar modules in Russia. Because of market changes-a dramatic fall in the price of solar modules causing uncertainties in international photovoltaic sales coupled with a Russian government initiative to promote the use of renewable energy sources in wholesale electric power and generation facilities-portfolio company Hevel will broaden its business model and enter projects to erect and operate solar parks, which is a high-margin segment of the photovoltaic market. In realizing its new strategy, the company plans to produce more than 600 megawatts of solar power by 2020.

To implement the new strategy, a shareholder in Hevel will loan the company five billion rubles to refinance more than half of its financial obligations to RUSNANO. In addition, Hevel’s shareholders will proportionally invest 2.7 billion rubles to finance construction of a solar power station in Russia. (RUSNANO owns a 49 percent interest)

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The Executive Board presented a report on progress in realizing RUSNANO’s investment projects. Management summarized decisions it had made during the third quarter of 2013 to finance projects whose investment size falls within the competence of the Executive Board: in accordance with the policy On Terms and Conditions for Financing Investment Projects of RUSNANO, the decision to participate in projects whose cofinancing from RUSNANO ranges from 300 million rubles to 1.3 billion rubles is made by the Executive Board of the company.

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Members of the Board of Directors approved the new composition of the Strategy Committee under the Board of Directors of RUSNANO. That committee oversees strategic activities of the company and the policy on financing investment projects. It makes preliminary review and prepares recommendations for investment in projects whose transaction size brings it within the purview of the Board of Directors. The newly composed Strategy Committee includes the following members:

  • Pavel Teplukhin, chief country officer, Deutsche Bank in Russia; chairman, Strategy Committee under the Board of Directors of RUSNANO
  • Mikhail Gamzin, founding partner Technoprom Innovation Corp.
  • Sergey Dubinin, chairman, Supervisory Board, VTB Bank and member of the Board of Directors of VTB Capital
  • Oleg Kiselev, deputy chairman of the Executive Board, RUSNANO
  • Roman Kosyachkov, chief strategy officer, Russian Venture Company
  • Mikhail Kopeikin, deputy chairman, Bank for Development and Foreign Economic Affairs (Vnesheconombank)
  • Maxim Mayorets, member Executive Board and M&A Director, Renova Group
  • Lev Nikolau, chairman of the Board of Directors, Asteros
  • Sergey Skvortsov, managing director for investment projects, Rostec State Corporation

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The Board of Directors approved a transaction for the impending establishment of limited liability management company RUSNANO in which Anatoly Chubais is an interested party. The Executive Board of RUSNANO has proposed Mr. Chubais’s candidacy for chairman of the board of the soon-to-be established entity. The transaction is RUSNANO’s 990,000 ruble contribution to shareholders’ capital of the new company. As has been noted in earlier releases, RUSNANO has adopted a new strategy under which during 2013–2014 it is changing its business model, separating the asset management and asset ownership functions. In accordance with common practice in the international arena of direct investment, a management company will be founded and under its direction new investment funds in nanotechnology will be formed and managed.

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During the meeting, the group consented to a number of transactions between RUSNANO and the Fund for Infrastructure and Education Programs in which members of the Board of Directors and the Executive Board of the company have responsibilities in management bodies of the fund. The transactions are for rental of office space and office and other equipment.

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To perfect RUSNANO’s procurement activities, the Board of Directors sanctioned a new version of the company’s rules for purchases. The two most salient are entrusting to a single purchasing commission the functions of specialized tenders and transferring to the purchasing office procedures for review of proposals and preparation of final determinations, which were earlier the province of the purchase initiator.

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Finally, during the meeting, members of the Board of Directors heard a report on progress in several projects that it had previously approved: manufacture of flexible displays and other devices using new generation plastic electronics technology, production of nanostructured magnesioum hydrate with modified surface, and manufacture of RFID tags and metalized packaging materials in Russia.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 95 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.