Sistema PublicFinancial : Presentation 4Q 2020

Sistema PJSFC

Financial Results

4Q and FY 2020

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.

2

FINANCIAL REVIEW

3

STRONG PACE OF BUSINESS GROWTH, SUCCESSFUL CAPITAL MARKETS TRANSACTIONS AND PROGRESS IN ESG

Results of portfolio companies

- Revenue in Q4 2020 and in FY 2020 grew significantly year-on- year1 as a result of strong results from MTS, Segezha Group, Agroholding Steppe ("Steppe") and Medsi.

• Adj. OIBDA in 4Q 2020 and FY 2020 demonstrated significant growth year-on-year, driven by adj. OIBDA growth at MTS, Segezha Group, Steppe and Medsi.

Key events in 4Q 2020 and after the reporting period

• In November 2020 Ozon held an IPO on NASDAQ and obtained listing of its American Depositary Shares on Moscow Exchange. Gross proceeds to Ozon amounted to approximately USD 1.25 bln, including from the underwriters' overallotment option and the concurrent private placement through which Sistema invested USD 67.5 mln.
• With the aim of creating a unified pharmaceutical holding, in February 2021 Sistema and financial partner VTB contributed their 56.2% stake in OJSC Sintez to the equity of Binnopharm Group. Concurrently, Sistema, VTB and an investor consortium consisting of the Russia-ChinaInvestment Fund (created by RDIF and CIC) and leading Mideast funds contributed an 85.6% stake in JSC Alium to the equity of Binnopharm Group. As a result, Sistema's effective stake in the holding, together with VTB, is 79%, with the investor consortium owning 15.8%.
• In November 2020, Sistema attracted its first ESG financing, a RUB 10 bln credit line from Sber with the interest rate on each loan tied to sustainability performance.
• In December 2020, Sistema's Board of Directors approved new investment criteria, whereby the investment process integrates ESG factors, which was one of the KPIs under the Sber credit line agreement.

Consolidated revenue

RUB bln

+5.7%

+6.9%

654,3

691,6

180,8

193,4

FY 2019

FY 2020

4Q 2019

4Q 2020

Adj2 OIBDA

RUB bln

+5.5%

+6.1%

224,0

236,3

53,0

56,2

FY 2019

FY 2020

4Q 2019

4Q 2020

Assets leading by revenue growth in 2020

12,2%

15,2%

17,9%

1 Hereinafter results for 4Q 2020 and FY2020 are presented to reflect the divestiture of AGK Yuzhny and the results of previous periods have been recalculated to reflect the effect of divestiture.

2 Hereinafter please see Appendix A of the financial results press release for 4Q 2020.	4

FINANCIAL REVIEW: FY 2020

Revenue: FY 2020

RUB bln

+5.7%

	4,3	2,7	-2,5	-1,2	-0,8	691,6	1
10,5

24,3

654,3

Revenue	MTS	Segezha	Steppe	Medsi	Cosmos	BPGC	Other	Revenue
FY 2019		Group			Group		assets,	FY 2020
							net

Adj. OIBDA: FY 2020

MTS: growth in revenue from mobile services as well as other segments (Fintech, Media and B2B Digital & Cloud services); adj. OIBDA grew on the back of revenue growth, despite a significant decrease in revenues from international roaming and the creation of provisions at MTS and MTS Bank.

Segezha Group: revenue grew due to increased sales volumes of paper packaging and sawn timber as well as higher prices for plywood and sawn timber; OIBDA rose following revenue despite higher prices for logistics services and price pressure on most products throughout the year.

Steppe: significant revenue and OIBDA growth on the back of higher revenue dynamics in the Field Crop and Agrotrading segments due the use of more effective sales strategies and an increase in grain prices; positive dynamics in the Dairy Farming segment were the result of an increase in the herd of dairy cows and increased productivity as well as

RUB bln

224,0	5,1

+5.5%

2,1	1,0	-1.8	2,5	236,31
3,5

sales growth in the Sugar and Grocery Product Trading segment.

Medsi: revenue growth resulted from a higher average cheque as Medsi delivered COVID-19 diagnostics and treatment, and also from expansion of the out-patient network in Moscow and the acquisition of a clinic in Izhevsk; positive OIBDA dynamics followed revenue growth and were positively impacted by participation in Project Michurinsky LLC, a JV with Capital Group to build the Nebo residential complex.

Скорр. OIBDA 4 кв.	А/х "Степь"	Segezha Group	МТС	Медси	БЭСК	Прочие		Скорр. OIBDA
2019г.	Steppe	Segezha	MTS	Medsi	BPGC	активы,		4 кв. 2020г.
Adj.	Other assets,	Adj.
						нетто	2
OIBDA		Group				net		OIBDA
FY 2019								FY 2020

BPGC: the negative revenue dynamic was due to a reduction in capacity and net supply as a result of a decrease in energy consumption in the oil sector, as well as a slowdown of economic activity amid the COVID-19 pandemic; OIBDA declined on the back of revenue dynamics and due to an increase in costs.

1Numbers may not add up due to rounding.
2Group OIBDA in FY 2020 was impacted by reflection of the Group's share in the increase of Ozon's net loss in the amount of RUB 0.6 bln (FY 2020 net loss was RUB 8.4 bln, FY 2019 net loss was RUB 7.8 bln)	5