Sistema announces financial results for the third quarter 2022

Moscow, Russia – 15 December 2022 – Sistema PJSFC (“Sistema”, the “Corporation”, or together with its subsidiaries and affiliates the “Group”) (LSE: SSA, MOEX: AFKS), a Russian publicly traded investment company, announces its unaudited consolidated financial results in accordance with International Financial Reporting Standards (IFRS) for the third quarter of 2022 (3Q 2022), ending 30 September 2022.

Sistema results review[1]

In 3Q 2022, Sistema's consolidated revenue increased by 9.2% year-on- year to RUB 239.7 billion due to the consolidation of Etalon Group's results since May 2022 as well as higher revenue at a number of key assets: at Medsi, thanks to the acquisition and opening of new clinics as well as increased patient flows; at MTS, due to continued growth in the telecom, fintech and media business verticals; and at Binnopharm Group, as a result of a significant increase in sales in the retail segment.

The Group's adjusted OIBDA decreased by 9.2% year-on-year to RUB 70.1 billion in 3Q 2022 due to a decline in Segezha Group’s financial results amid the considerable appreciation of the ruble year-on-year and the ongoing transformation of the company's sales geography, and also as a result of the postponement of crop sales at Steppe to future periods.

Group capex decreased by 39.8% to RUB 28.6 billion in 3Q 2022 due to forward investments on the part of key portfolio companies in prior periods.

The Corporate Centre's net financial liabilities increased by 10.0% year-on- year and decreased by 2.0% quarter-on-quarter to RUB 229.5 billion. The Corporate Centre's cash balance was RUB 16.4 billion. A portion of free cash flow, in the amount of RUB 15.3 billion, was invested in highly liquid securities. The Group's net financial liabilities amounted to RUB 935.4 billion.

Tagir Sitdekov, Sistema President: “Sistema has demonstrated sustainable business growth, reflecting the diversification of our investment portfolio and strong management at our Group companies. Our assets have been adapting to the new business environment, reshaping supply and logistical chains, creating new opportunities for growth and maintaining a high level of financial discipline. We will continue to implement our strategy, which is aimed at the development of leading companies in the Russian market in the interests of all stakeholders”.

For further information, please visit www.sistema.ru or contact:

Sistema PJSFC is a publicly traded diversified Russian holding company in the sectors of telecommunications,
high technology, financial services, retail, e commerce, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2021 was RUB 802.4 billion; total assets equalled RUB ⁠1.8 trillion as of 31 December 2021. 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.ru.

The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect,” "believe,” "anticipate,” "estimate,” "intend,” "will,” “could,” "may" or "might" the negative of such terms or other similar expressions. 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 date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with the deterioration of the geopolitical situation, as well as many other risks specifically related to Sistema and its operations.

1. The Group’s financial performance adjusted for accruals related to the LTI programme at portfolio companies and the impairment of MTS assets, as well as for Segezha Group’s financial expenses associated with the revaluation of interest rate swaps. The Corporate Centre’s financial liabilities net of cash and cash equivalents are presented based on management accounts. The Group’s financial liabilities include finance leases and are net of cash and cash equivalents and deposits in banks.