Sistema PJSFC Financial Results 3Q 2021

Vladimir Chirakhov

President

Vladimir Travkov

Vice President for Finance

DISCLAIMER

Certain statements in this presentation may contain assumptions or forecasts in respect to forthcoming events within Sistema PJSFC or its portfolio companies. The words "expect", "estimate", "intend", "will", "could" and similar expressions identify forward-looking statements. We wish to caution you that these statements are only predictions and that actual events or results may differ materially.

We do not intend to update these statements to reflect events and circumstances occurring after the above-mentioned date or to

reflect the occurrence of unanticipated events. Many factors could cause Sistema's actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, deteriorating economic and credit conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, impact of COVID-19 pandemic on macroeconomic situation on the markets of presence and financial results of Sistema and its subsidiaries and associates, as well as many other risks specifically related to Sistema and its operations.

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FINANCIAL REVIEW

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ROBUST PACE OF BUSINESS GROWTH ON THE BACK OF STRONG PERFORMANCE OF BOTH PUBLIC AND NON-PUBLIC ASSETS

Results of the Group

  • Acceleration of revenue growth in 3Q 2021 year-on-year due to strong results of MTS, Segezha Group and Agroholding Steppe ("Steppe"), as well as consolidation of Binnopharm Group's results.
  • Strong pace of OIBDA growth due to the performance of MTS, Segezha Group and Steppe.

Key events

-

Agreement to sell a minority stake in Segezha Group to Bonum

Capital Ltd for $150 mln3.

-

Agreement for Segezha Group to acquire 24 forestry assets in

Siberia from Bonum Capital Ltd for $515 mln. The transaction will

Consolidated revenue

RUB bln

+21.8%

225,1

184,9

3Q 2020

3Q 2021

Adj. OIBDA1

RUB bln

+4.7%

71,7

75,0

3Q 2020

3Q 2021

double Segezha Group's annual allowable cut and make the

company one of the largest leaseholder of forest land globally.

- The acquisition of Nearmedic Group which consists of

pharmaceutical, biotech, and medical assets.

- Sistema's divestment of Sistema Capital LLC for RUB 3.5 bln.

- Payment of dividends for FY 2020 totaling RUB 2,991.5 mln, or RUB

0.31 per ordinary share.

- Under the company's share buyback programme, in 3Q 2021

Sistema repurchased 74.7 mln ordinary shares, representing 0.77%

of the company's charter capital, for RUB 2,201 mln.

- Sistema rated amongst the top 3 companies in an ESG ranking of

Russia's publicly traded financial companies compiled by the

National Rating Agency.

Top performing assets

Net Corporate Centre financial

by revenue and OIBDA growth

liabilities2

3Q 2021 (year-on-year)

RUB bln

4,0%

+25.6%

8,4%

43,7%

28,0%

106,9%

204,4

208,6

35,0%

166,0

134,1%

88,0%

Adj. OIBDA

Revenue

3Q 2020

2Q 2021

3Q 2021

Hereinafter results of the Corporate Centre are presented based on management accounts. Numbers may not add up due to rounding.

  1. Hereinafter please see Appendix A of the financial results press release for 3Q 2021.
  2. Including total volume of borrowing with the exception of cash and cash equivalents at the Corporate Centre level.
  3. The precise number of Segezha Group shares to be sold will be determined on the date the transaction closes based on the USD-RUB exchange rate. Closing of the transaction is planned for 1Q 2022.

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FINANCIAL REVIEW: 3Q 2021

Revenue: 3Q 20211

RUB bln

+21.8%

10,7

6,8

6,6

0,5

0,4

2,2

225,1

13,0

184,9

Revenue

Steppe

MTS

Binnopharm

Segezha

Cosmos

Medsi

Other assets,

Revenue

3Q 2020

Group

Group

Hotel Group

net

3Q 2021

Adj. OIBDA: 3Q 20211

RUB bln

+4.7%

5,4

2,9

2,4

2,2

-2,9

-3,7

-3,1

75,0

71,7

Adj. OIBDA

Segezha

Steppe

MTS

Binnopharm

OZON Effect from the

Other assets,

Adj. OIBDA

3Q 2020

Group

Group

sale of Detsky Mir

net

3Q 2021

shares

MTS: sustained strong pace of revenue and OIBDA growth due to increased consumption of core telecom and financial services, development of enterprise digital and cloud solutions and media offerings. Non-telecom segments delivered more than 60% of Group revenue growth.

Segezha Group: significant revenue and OIBDA growth on the back of positive prices dynamics across all product types. OIBDA was additionally impacted by execution of the Group's strategy to produce higher-margin products across plywood, packaging and glulam products. OIBDA was also significantly impacted by management efforts to control growth of production costs.

Steppe: accelerated pace of revenue and OIBDA growth as a result of a record harvest and growth of prices for wheat and specialty crops; expansion of sales volumes in the Agrotrading segment and launch of a new division - Specialty Crops Trading; positive impact of the Dairy division and development of a division that produces packed cheeses, other dairy products and plant-based alternatives.

Binnopharm Group: accelerated pace of revenue growth as a result of implementation of a commercial strategy focused on strengthening the position of Binnopharm Group products across various segments of the pharmaceutical market. OIBDA growth as a result of optimisation of the product portfolio and improved operational efficiency.

(1) Binnopharm Group's financial results are consolidated in Sistema's financial statements as of 25 June 2021.

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Afk Sistema OAO published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 07:10:05 UTC.