line will boost output of finished glued products by 20% to 100,000 cu m per 
            year. 
 
  Completion of CLT plant construction. In October 2020, the first panel was 
 produced at a new cross-laminated timber (CLT) plant in the Vologda region. 
 The capacity of the new production line will amount to 50,000 cu m. The CLT 
 plant is at the final stage of construction, and is scheduled for launch in 
            December 2020. 
 
            Agriculture Holding Steppe 
 
            ONE OF RUSSIA'S LARGEST AGRICULTURE HOLDINGS AND LAND OWNERS 
 
          (RUB 3Q 2020 3Q 2019   Change 9M 2020 9M 2019   Change 
million)[10],[ 
           11] 
       Revenue  14,712   9,917    48.4%  22,292  19,103    16.7% 
         OIBDA   2,199   1,216    80.9%   4,893   3,563    37.3% 
  OIBDA margin   14.9%   12.3% 2.7 p.p.   21.9%   18.7% 3.3 p.p. 
     Operating   1,358     720    88.5%   3,594   2,589    38.8% 
        profit 
           Net   (227)    (42)        -   1,612     720   124.1% 
 (loss)/profit 
  attributable 
    to Sistema 
 
Steppe's revenue grew by 48.4% year-on-year and amounted to RUB 14.7 billion 
        in 3Q 2020. The significant increase was driven primarily by revenue 
     increase in the Crop Production and Agrotrading segments as a result of 
   increased sales volumes of agricultural products and higher grain prices. 
    Revenue growth was also driven by positive dynamics in the Dairy Farming 
  segment as a result of higher production volumes due to an increase in the 
   number of highly productive lactating cows and the improved efficiency of 
      dairy farms, in addition to increases in the sales volume and price of 
            sugar. 
 
       In 3Q 2020, Steppe's OIBDA increased by 80.9% year-on-year to RUB 2.2 
     billion as a result of an impactful sales strategy for own agricultural 
   products, improved operating efficiency in the Agrotrading segment, and a 
 successful time arbitrage strategy in the Sugar and Grocery Product Trading 
            segment. 
 
OIBDA margin amounted to 14.9% in 3Q 2020. 
 
 
Steppe's CAPEX amounted to RUB 0.9 billion in 3Q 2020. Capital investments 
were focused primarily on the renewal of agricultural machinery fleet, 
building and modernising dairy farms, and buying out of land shares. 
 
            In 3Q 2020, Steppe's net loss amounted to RUB 0.2 billion. 
 
            Land bank of Steppe in 3Q 2020 amounted to 560,000 hectares. 
 
           As of 30 September 2020, the gross harvest of Steppe grew by 6.8% 
     year-on-year to 1,238,000 tonnes. Despite adversary weather conditions, 
    Steppe managed to deliver high volume of the harvest. The average export 
            price of wheat sales rose by 20.3% year-on-year in 3Q 2020. 
 
            The total area of orchards amounted to 780 hectares. 
 
        Sales volumes of wheat in the Agrotrading segment increased by 15.1% 
   year-on-year and amounted to 817,000 tonnes in 9M 2020. Higher wheat sale 
  prices and improvements in operational efficiencies due to the adoption of 
  an efficient trading strategy helped to increase the OIBDA in the segment. 
 
 The Dairy Farming segment demonstrated stable growth: gross milk yield rose 
    by 28% year-on-year amounting to approximately 18,000 tonnes in 3Q 2020. 
      Productivity per lactating cow increased by 4.4% year-on-year, and the 
  lactating herd consisted of 6,526 cows at the end of the reporting period. 
 
         Sales volumes in the Sugar and Grocery Trading segment rose by 7,4% 
  year-on-year to 244,000 tonnes in 9M 2020. OIBDA growth was facilitated by 
 higher-margin transactions undertaken as part of a time arbitrage strategy. 
        In 3Q 2020, the sale price of sugar increased by 32.2% year-on-year. 
 
            Medsi 
 
            LEADING PRIVATE HEALTHCARE OPERATOR IN RUSSIA 
 
      (RUB 3Q 2020 3Q 2019     Change 9M 2020 9M 2019     Change 
  million) 
   Revenue   6,749   5,382      25.4%  17,244  16,084       7.2% 
      Adj.   1,835   1,516      21.0%   4,107   4,036       1.8% 
 OIBDA[12] 
Adj. OIBDA   27.2%   28.2% (1.0 p.p.)   23.8%   25.1% (1.3 p.p.) 
   margin2 
 Operating   1,163     766      51.7%   2,164   1,849      17.0% 
    profit 
  Adj. net     963     780      23.5%   1,622   1,918    (15.4%) 
    profit 
attributab 
     le to 
   Sistema 
 
   In 3Q 2020, Medsi's revenue grew by 25.4% year-on-year to RUB 6.7 billion 
        due to deferred demand for medical services following the lifting of 
      COVID-19 restrictions introduced in 2Q 2020, the resumption of routine 
    medical care services, and revenues from the repurposing of the Otradnoe 
       hospital as an in-patient infectious diseases' unit. Revenue was also 
 positively impacted by increased demand for COVID-19 testing, and growth in 
            home care and telemedical support services. 
 
 Adjusted OIBDA increased by 21.0% year-on-year to RUB 1.8 billion following 
            the growth in revenue in 3Q 2020. 
 
     In 3Q 2020, Medsi's adjusted OIBDA margin slightly declined by 1.0 p.p. 
            year-on-year and amounted to 27.2%. 
 
  Adjusted net profit increased by 23.5% year-on-year in 3Q 2020 on the back 
            of adjusted OIBDA dynamics and amounted to RUB 1 billion. 
 
  Revenue from the Clinical Diagnostic Centre (CDC) in Belorusskaya amounted 
     to RUB 766 million in 3Q 2020. OIBDA totalled RUB 328 million and OIBDA 
            margin was 43%. 
 
    Revenue from the CDC in Krasnaya Presnya stood at RUB 811 million. OIBDA 
            reached RUB 279 million at an OIBDA margin of 34.4%. 
 
     Net debt rose year-on-year in 3Q 2020 due to the drawing down of credit 
  lines to finance CAPEX programmes, including the construction of a medical 
    centre on Michurinsky Prospekt in Moscow. Debt to OIBDA LTM remains at a 
            comfortable level of 0.7x. 
 
 In 3Q 2020, the average cheque increased by 34.6% year-on-year to RUB 3,100 
        due to the rising share of cost-intensive services in the outpatient 
    coronavirus diagnostics segment, and the high average cost of a COVID-19 
            treatment at the hospital in Otradnoe. 
 
            KEY EVENTS IN 3Q 2020 AND AFTER THE END OF THE REPORTING PERIOD 
 
    Network expansion. In September and October 2020, Medsi opened three new 
clinics in Moscow: a family clinic with advanced diagnostics in Maryino with 
   a total area of 4,400 sq m, and two Smart 500 clinics on Poletayev Street 
         and Aviatsionnaya Street with a total area of 498 sq m and 675 sq m 
            respectively. 
 
   The construction of a new multifunctional centre on Michurinsky Prospekt, 
with more than 34,000 sq m of space, is nearing completion, with the opening 
 planned for 1Q 2021. The medical centre will include a CDC for children and 
 adults, a daytime in-patient clinic, and a 24-hour in-patient clinic with a 
            centre for high-tech surgery. 
 
    Active growth of SmartMed users. The number of downloads of the SmartMed 
        telemedical application, and the number of service users, is growing 
 rapidly. The share of appointments made through the application has reached 
35-40% of total bookings. A new version of the application has been released 
            that enables in-app payments. 
 
     COVID-19. In August 2020, a Centre for diagnostics and the treatment of 
            health complications caused by COVID-19 was opened at the CDC in 
            Belorusskaya. 
 
 In October 2020, Medsi launched clinical studies of the "Sputnik V" vaccine 
  against COVID-19. Free vaccinations have been made available at the CDC in 
            Solyanka. 
 
 During the recent new wave of COVID-19 infections, the hospital in Otradnoe 
has again been repurposed as an in-patient infectious diseases unit focusing 
            on comprehensive COVID-19 diagnostics. 
 
Business Nedvizhimost 
 
RENTAL ASSETS WITH A UNIQUE POOL OF PROPERTIES 
 
(RUB        3Q 2020 3Q 2019     Change 9M 2020 9M 2019   Change 
million) 
Revenue       2,140   2,368     (9.6%)   4,124   4,845  (14.9%) 
OIBDA           635   1,712    (62.9%)   1,321   3,448  (61.7%) 
OIBDA         29.7%   72.3%      (42.6   32.0%   71.2%    (39.1 
margin                           p.p.)                    p.p.) 
Operating       498   1,596    (68.8%)     926   3,113  (70.3%) 
profit 
Net profit      469   1,165    (59.8%)     744   2,224  (66.5%) 
attributabl 
e to 
Sistema 
 
        Revenue from Business Nedvizhimost's rental assets decreased by 9.6% 
   year-on-year in 3Q 2020 due to the completion of the 2019 commercial real 
            estate sales programme. 
 
    In 3Q 2020, OIBDA and OIBDA margin amounted to RUB 0.6 billion and 29.7% 
    respectively. The decline year-on-year was caused by a change in revenue 
            structure in favour of lower margin rental revenue. 
 
Business Nedvizhimost's net profit decreased year-on-year to RUB 0.5 billion 
            in 3Q 2020. The dynamics were driven by the decline in OIBDA. 
 
            KEY EVENTS IN 3Q 2020 AND AFTER THE END OF THE REPORTING PERIOD 
 
     Credit rating. RAEX rating agency assigned Business Nedvizhimost a ruA- 
            rating with a stable forecast. 
 
  Debt capital market debut. In August 2020, the Company successfully placed 
  the debut bond issue for RUB 4 billion at a 7.9% coupon rate with a 4-year 
            put option. 
 
 Appointment of new CEO. In September 2020, Artemy Marinin was appointed CEO 
of Business Nedvizhimost. Mr Marinin has extensive experience in real estate 
            and construction. 
 
 Launch of the "Territoria" project. In 2021, Business Nedvizhimost plans to 
 launch the "Territoria" project, using 20 buildings acquired from MGTS. The 
      project will develop a coworking network of 8,000 work places situated 
            across Moscow. 
 
RTI 
 
LEADING DEVELOPER OF HIGH-TECH SOLUTIONS 
 
(RUB million) 3Q 2020 3Q 2019      Change  9 2020 9M 2019 Change 
Revenue         5,240   5,431      (3.5%)  13,661  13,896 (1.7%) 
Adj.               64   1,317     (95.2%)    (59)   1,564      - 
OIBDA[13]

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