Operating Income Before Depreciation and Amortisation (OIBDA) and OIBDA margin. OIBDA represents operating income before depreciation and amortisation. OIBDA margin is defined as OIBDA as a percentage of our net revenues. Our OIBDA may not be similar to the OIBDA measures of other companies; is not a measurement under accounting principles generally accepted under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of profit and loss. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of businesses and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. OIBDA is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies.

Adjusted OIBDA, operating income and profit attributable to Sistema shareholders. The Company uses adjusted OIBDA, adjusted operating income and adjusted profit/(loss) attributable to Sistema shareholders to evaluate financial performance of the Group. These represent underlying financial measures adjusted for a number of one-off gains and losses. We believe that adjusted measures provide investors with additional useful information to measure our underlying financial performance, particularly from period to period, because these measures are exclusive of certain one-off gains and losses.

Adjusted operating income and adjusted OIBDA can be reconciled to our consolidated statements of profit and loss as follows: 


RUB millions                                            1Q 2021 1Q 2020 
Operating income                                        25 384  22 895 
Accruals related to LTI program at portfolio companies   -      19 
Impairment of hospitality assets                         -      1 109 
Impairment of non-current assets (MTS)                   -      319 
Other non-recurring income, net                          -      (450) 
Adjusted operating income                               25 384  23 893 
Depreciation and amortisation                           31 546  29 761 
Adjusted OIBDA                                          56 930  53 654

Adjusted loss attributable to Sistema shareholders can be reconciled to our consolidated statements of profit and loss as follows: 


RUB millions                                           1Q 2021  1Q 2020 
Net loss attributable to Sistema                       (2 400)  (10 214) 
Accruals related to LTI program at portfolio companies  -       18 
Impairment of hospitality assets                        -       975 
Impairment of non-current assets (MTS)                  -       160 
Other non-recurring income, net                         -       (348) 
Adjusted net loss attributable to Sistema              (2 400)  (9 409)

Consolidated net debt. We define consolidated net debt as consolidated total debt less cash, cash equivalents and deposits in banks. Consolidated total debt is defined as total borrowings plus finance lease. The total borrowings is defined as long-term borrowings, short-term borrowings and liability to the Russian Federation. We believe that the presentation of consolidated net debt provides useful information to investors because we use this measure in our management of consolidated liquidity, financial flexibility, capital structure and leverage.

Consolidated net debt can be reconciled to the borrowings as follows: 


RUB millions                 31 March 2021  31 December 2020 
Long-term borrowings        648 489        640 570 
Short-term borrowings       88 370         83 391 
Total borrowings            736 859        723 961 
Consolidated finance lease  18 8642        18 5073 
Consolidated total debt     755 723        742 468 
Cash and cash equivalents   (93 950)       (113 693) 
Deposits in banks           (1 623)        (1 777) 
Consolidated net debt       660 150        626 998

1 In accordance with the standard IAS 17

2 Including RUB 1,520 million of short-term finance lease

3 Including RUB 1,572 million of short-term finance lease

****

Full press please including financial statements is available on Sistema's website http://www.sistema.com/ investors-shareholders/financial-results/ and in the Attachment to the current release. -----------------------------------------------------------------------------------------------------------------------

[1] Taking into account the partial exercise of the over-allotment option in connection with stabilisation procedure after the IPO of Segezha Group PJSC and the exercise of the option by Mikhail Shamolin, President of Segezha Group PJSC.

[2] Here and hereinafter, see Appendix A of the financial results press release for 1Q 2021.

[3] Adjusted OIBDA calculated on the basis of the Corporation's consolidated IFRS financial statements.

[4] Here and hereinafter results for 1Q 2020 are presented to reflect the divestiture of AGK Yuzhny.

[5] Group adjusted OIBDA for 1Q 2021 reflects the Group's share in the reduction of Ozon's net loss in the amount of RUB 0.1 billion (the net loss for 1Q 2021 was RUB 2.3 billion versus RUB 2.4 billion for 1Q 2020). As of 28 May 2021, 8.4 mln shares were issued to be used in Ozon's management inventive programme. In the event that all options under the programme are exercised, the effective share of Sistema, including Sistema VC, would amount to 32.4%.

[6] MTS's results are presented including the divestment of Envision Group in 4Q 2020. Results for 2020 have been restated due to the divestment of Envision Group.

[7] Here and hereinafter net profit is presented as the share attributable to Sistema.

[8] ?apex are presented excluding M&A

[9] Approximately 29.1% of paper produced was supplied to Segezha Group's own converting facilities to produce paper packaging.

10 Including 18.8 million consumer paper bags.

11 Taking into account the partial exercise of the over-allotment option in connection with stabilisation procedure after the IPO of Segezha Group PJSC and the exercise of the option by Mikhail

Shamolin, President of Segezha Group PJSC.

[12] RZ Agro is accounted for as an investment in a joint venture in Agroholding Steppe's IFRS financial statements. Agroholding Steppe's financial results reflect the divestiture of AGK Yuzhny in May 2020.

[13] Adjusted for allocations related to the LTI programme and for the effect of the acquisition of the Izhevsk clinic.

[14] Based on management accounts.

[15] Average daily rate.

[16] Revenue per available room per day.

[17] Here and hereinafter the Corporate Centre's financial liabilities are presented based on management accounts.

[18] Based on management accounts. ----------------------------------------------------------------------------------------------------------------------- Attachment File: Sistema 1Q2021 results ----------------------------------------------------------------------------------------------------------------------- 


ISIN:          US48122U2042 
Category Code: QRF 
TIDM:          SSA 
LEI Code:      213800JSZ2UUK4QQK694 
Sequence No.:  111201 
EQS News ID:   1207895 
 
End of Announcement  EQS News Service 
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June 15, 2021 03:01 ET (07:01 GMT)