SISTEMA PUBLICFINANCIAL CORPORATION 2020
ANNUAL
REPORT
PUBLIC JOINT
STOCK FINANCIAL
CORPORATION
//sistema.com
ABOUT THIS REPORT
This annual report was approved by the General Annual Meeting of Sistema PJSFC on 26 June 2021 (Minutes No.1-21, dated 30 June 2021).
This annual report presents information on business operations of Sistema Public Joint Stock Financial Corporation and its portfolio companies in 2020.
The annual report of Sistema PJSFC for the year 2020 has been prepared in compliance with Federal Law on Joint Stock Companies, Federal Law on Securities Market, Bank of Russia Regulation on Disclosure by Issuers as amended.
Unless specifically noted otherwise, all financial performance indicators in this annual report are based on consolidated financial statements under IFRS.
Certain immaterial discrepancies in percentage calculations and in arithmetic operations of addition in tables and charts in this annual report are attributable to rounding.
You may access other annual reports of the Corporation at its official website, www.sistema.com, in Information Disclosure and Investors & Shareholders.
DISCLAIMER
Certain statements in this annual report may contain assumptions or projections regarding forthcoming or expected events related to Sistema PJSFC or its portfolio companies. Statements of this nature may be expressed by using the words "expect," "estimate," "intend," "will," "could," negations of such words, as well as similar expressions. These statements are only predictions, and actual events or results may differ materially.
ПSistema PJSFC does not commit to reviewing these statements in order to correlate them with actual events and circumstances that may occur after the above-mentioned date or to highlight the events that were not expected to occur when this annual report was prepared. Many factors could cause the actual results of Sistema PJSFC or its portfolio companies to differ materially from those set forth in our projections or forward-looking statements, including, among others, macroeconomic conditions, our competitive environment, country-specific risks of operating in Russia, rapid technological and market changes in the industries where Sistema PJSFC and
its portfolio companies operate, the impact of the COVID-19 pandemic on the macroeconomic situation in the markets where Sistema PJSFC and its portfolio companies operate and on their financial performance, as well as many other risks specifically related to Sistema and its operations.
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168
СONTENT
SISTEMA
SISTEMA PROFILE
Sistema overview - 4 / Investment portfolio - 6 / CEO's statement - 8 / Strategic overview - 10
RESULTS
PERFOMANCE
Key events at the corporation in 2020 and after reporting period - 16 / Financial overview for 2020 - 21 / Shareholders' equity - 25 / Report on dividends declared (accrued) on Sistema shares - 26
ASSETS
KEY ASSETS' PERFOMANCE
МТС - 30 / Ozon - 38 / Segezha Group - 44 / Etalon Group - 56 / MEDSI - 64 / Steppe Agroholding - 76 / Binnopharm Group - 84 / JSC BPGC - 90 / Business Nedvizhimost - 98 / Cosmos Hotel Group - 104 / Other assets - 110 / Funds - 122
GOVERNANCE
CORPORATE GOVERNANCE
Corporate governance system - 136 / Remuneration policy applied to board members and senior management - 156 / Risk management - 159
SUSTAINABILITY
SUSTAINABILITY MANAGEMENT
Management system - 170 / Key ESG areas - 174 / Social investing and operations of Sistema Charitable Foundation - 180
182 ANNEXES
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SISTEMA PROFILE
PERFOMANCE
KEY ASSETS'
PERFOMANCE
CORPORATE
GOVERNANCE
SUSTAINABILITY
MANAGEMENT
ANNEXES
//sistema.com
SISTEMA | OVERVIEW | 276.4 | ||||
147.0 | ||||||
77.2 | ||||||
'18 | '19 | '20 | ||||
Market Capitalization,
RUB bln
Sistema overview
Sistema is the largest publicly traded investment company in Russia. Founded in 1993, Sistema is today represented across over 15 high-potential sectors of the Russian economy through its portfolio companies that serve over 150 million consumers. Sistema's investment portfolio includes mostly Russian companies in such sectors as telecommunications, forestry, agriculture, healthcare, real estate and electronic commerce, and others
The Corporation's shares trade on Moscow Exchange (ticker: AFKS) and on London Stock Exchange in the form of global depositary receipts (ticker: SSA). One GDR represents
20 ordinary shares.
Strategy
Sistema's strategic goal is to create long-term growth of shareholder value by boosting returns on investments in existing assets and reinvesting available cash in new investment projects to diversify its portfolio and increase overall returns on investment.
2020 Results1 | |
RUB | |
691.6bln | FITCH |
Revenue | BB- |
stable | |
RUB | |
236.3bln | S&P |
Adjusted OIBDA | BB |
RUB | stable |
16.0bln | |
Adjusted net income | |
RAEX | |
RUB | ruAA- |
1.421bln | stable |
Total assets |
ANNUAL REPORT / 2020
2020RESULTS | Market | INVESTMENTPORTFOLIO | МТS | AWARDS | "THE FIRST |
Тop- | COMMUNICATIONS | ||||
position | Assets | WELL-KNOWN | |||
INVESTMENT | |||||
Top- | >15 | BRAND IN RUSSIA" | |||
25Largest Russian | Sectors | ||||
companies by | |||||
revenue (RBC) | "THE BEST PRIMARY | ||||
20 | OFFERING IN THE | ||||
NYSE: MBT, MOEX: MTSS | SEGMENT" | ||||
Sistema's series 001P-15 bond | |||||
issue for RUB 10 bn. | |||||
Public Russian | 50.02% | Cbonds Awards 2020 | |||
companies in | |||||
Forbes Global 2000 | |||||
rating | |||||
Ozon | |||||
>150mln | NASDAQ and MOEX: OZON | ||||
33.1% | NO 11 OUT OF | ||||
Consumers | 725 GLOBAL | ||||
DIVERSIFIED | |||||
МOEX: | FINANCIAL | ||||
Segezha Group | COMPANIES | ||||
AFKS | MOEX: SGZH | Sustainalytics ESG rating | |||
LSE: | 73.7% | ||||
SSA | Etalon Group | ||||
LSE and MOEX3: ETLN |
25.6%
39RUB .5bln
Investments in 2020
- Here and hereinafter results for 2020 are presented to reflect the divestiture of AGK Yuzhny. The results for 2019 have been restated to reflect the effect of the divestiture.
- Etalon's GDRs started trading on Moscow Exchange from 03.03.2020.
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//sistema.com
ASSETS OUR
МТS
Telecommunications
MOEX: MTSS / NYSE: MBT
50.02%
ETALON
GROUP
Real estate development
LSE / MOEX: ETLN
25.6%
OTHER | FUNDS |
ASSETS |
49.53% | 90% |
ELEMENT | SISTEMA VENTURE |
High tech | CAPITAL |
43% | 83% |
CONCEPT GROUP | SISTEMA ASIA FUND |
Retail |
100% | 49% |
EAST-WEST UNITED | SISTEMA CAPITAL |
BANK S.A. | PARTNERS GROUP |
Banking |
70%
SISTEMA
CAPITAL MC
ANNUAL REPORT / 2020
OZON | SEGEZHA | ||||||||
Online retailer | GROUP | ||||||||
Forestry holding | |||||||||
33.1% | 73.7% | ||||||||
MEDSI | STEPPE | ||||||||
Private healthcare | Agroholding | ||||||||
chain | |||||||||
95.5% | |||||||||
BINNOPHARM | BPGC | ||||||||
GROUP | Power grids company | ||||||||
Pharmaceuticals | |||||||||
business | |||||||||
92.8% | |||||||||
COSMOS | |||||||||
HOTEL | |||||||||
GROUP | |||||||||
Hospitality | |||||||||
79% | 91% | ||||||||
BUSINESS
NEDVIZHIMOST
Real estate
100% 100%
SISTEMA PROFILE
PERFOMANCE
KEY ASSETS' PERFOMANCE
CORPORATE GOVERNANCE
SUSTAINABILITY MANAGEMENT
ANNEXES
SISTEMA PJSFC
6 | 7 |
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Afk Sistema OAO published this content on 28 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2021 09:42:08 UTC.
