Sistema PJSFC : Sistema and RDIF agree to jointly develop Binnopharm Group

Sistema PJSFC (SSA) 
Sistema PJSFC: Sistema and RDIF agree to jointly develop Binnopharm Group 
19-Feb-2021 / 10:00 MSK 
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 
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Sistema and RDIF agree to jointly develop Binnopharm Group 
19 February 2021, Moscow - Sistema PJSFC ("Sistema", the "Corporation" or, together with its subsidiaries and 
affiliates, the "Group") (LSE: SSA, MOEX: AFKS), a publicly-traded Russian investment company, announces completion of 
the establishment of the pharmaceutical holding company Binnopharm Group ("Binnopharm Group" or "the Holding"). 
To create the pharmaceutical holding company, Sistema and its financial partner, VTB Group ("VTB"), contributed their 
56.2% stake in OJSC Sintez (which includes CJSC Biocom) to the equity of Binnopharm Group. At the same time, Sistema, 
VTB and a consortium of investors consisting of the Russia-China Investment Fund (a fund established by the Russian 
Direct Investment Fund and China Investment Corporation) and major Middle East funds (collectively, the "Investor 
Consortium") contributed an 85.6% stake in JSC Alium (which includes JSC Binnopharm) to the equity of Binnopharm Group. 
As a result, the effective stake of Sistema together with VTB in Binnopharm Group will be 79%, and the Investor 
Consortium will have 15.8%. The remaining 5.2% of shares are distributed among individual minority shareholders. 
"Consolidation of pharmaceutical assets on the basis of Binnopharm Group is an important step towards transforming the 
holding into a leader on the Russian pharmaceutical market, with a diversified product portfolio, experienced 
management, and significant production and research potential. Binnopharm Group companies are already demonstrating 
impressive performance: in 2020, sales grew by 25% year-on-year to RUB 27.5 bn. Consolidation of assets into a single 
holding company will support further growth of the business and add shareholder value, including by achieving synergies 
from the merger, optimisation of marketing and promotion costs, reduction in administrative costs, and expansion of the 
geographic coverage of sales. We are pleased that our strategy for the development of the pharmaceutical business met 
with the approval of our partners and they supported the establishment of a single pharmaceutical holding company," 
said Vladimir Chirakhov, President of Sistema. 
"The creation of one of the leading diversified pharmaceutical holdings will allow the development and production of 
high quality and innovative medicines to increase the wellbeing and life expectancy of the Russian population. One 
example of such an approach was the start of production of the Sputnik V vaccine against the coronavirus infection at 
the Binnopharm plant in Zelenograd. The participation of RDIF's foreign partners in the consolidation project confirmed 
their interest in investing in the Russian pharmaceutical and healthcare sectors, their readiness to work together with 
RDIF on the implementation of national projects, as well as on the further development of the Binnopharm group, 
including its initial public offering in the future", said Kirill Dmitriev, CEO of the Russian Direct Investment Fund. 
Binnopharm Group is a full-cycle Russian pharmaceutical holding company that combines five production sites located in 
different regions of Russia: JSC Alium (formerly OBL Pharm in the Serpukhov district of the Moscow region), JSC 
Binnopharm (two sites: Zelenograd and Krasnogorsk), JSC Sintez (Kurgan) and JSC Biocom (Stavropol). Binnopharm Group 
companies produce a wide range of drugs across various therapeutic areas and collectively have the largest portfolio of 
drugs among Russian manufacturers (more than 450 registered products, including the COVID-19 vaccine Sputnik V). 
Binnopharm Group's Chief Executive Officer is Rustem Muratov. 
*** 
For further information, please visit www.sistema.ru  or contact: 
Press Service of Sistema PJSFC  IR Service 
Sergey Kopytov                  Nikolai Minashin 
Phone: [phone]       Phone: [phone] 
[e-mail]              [e-mail] 

***

Sistema PJSFC is a publicly-traded Russian investment company with a diversified portfolio of assets serving over 150 million customers in the sectors of telecommunications, technology, financial services, retail, timber processing, agriculture, real estate, e-commerce, hospitality and healthcare. The company was founded in 1993. Its revenue in 2019 reached RUB 656.9bn; its total assets equalled RUB 1.3tn as of 31 December 2019. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com -----------------------------------------------------------------------------------------------------------------------

ISIN:          US48122U2042 
Category Code: MSCM 
TIDM:          SSA 
LEI Code:      213800JSZ2UUK4QQK694 
Sequence No.:  93888 
EQS News ID:   1169528 
 
End of Announcement  EQS News Service 
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February 19, 2021 02:00 ET (07:00 GMT)