AFC Financial Indicators System

2020: Revenue growth by 5.7%, to 691.6 billion rubles, profit decrease by 64.3%, to 10.22 billion rubles

AFK Sistema completed 2020 with revenue of 691.6 billion rubles, which is 5.7% higher than a year ago. As reported in the statements, this growth is ensured by increasing the income of key assets:

• MTS - thanks to an increase in both mobile service revenue and strong dynamics in new business segments (Fintech, Media and B2B Digital & Cloud);
• Segezha Group - due to increased revenue against the background of increased sales of paper packaging and lumber and rising prices for plywood and lumber;
• Agroholding "Steppe" - thanks to an increase in revenue in all key segments;
• Medsi - due to the growth of the average check in connection with the provision of services for the diagnosis and treatment of COVID-19, as well as the expansion of the outpatient network in Moscow and the purchase of clinics in Izhevsk.

Our key consolidable portfolio companies have overcome the challenges associated with the COVID-19 pandemic, managed to quickly restructure their business models by adapting products and services to new realities, which is reflected in the strong dynamics of annual results, "said AFK Sistema President Vladimir Chirakhov, whose words are quoted by the company's press service.

According to the results of 2020, AFK Sistema's net profit amounted to 10.22 billion rubles, down by 64.3% compared to 2019. Adjusted net profit fell even more - by 70%. The dynamics of profits were influenced by the results of the sale of 100% of Leader Invest shares and its deconsolidation, the public offering of 18.3% of Detsky Mir shares, the deconsolidation and further reclassification of the remaining stake (33.4%) as an investment in an associated company in 2019.

Capital expenditures of AFK Sistema in 2020 increased by 8.6% and amounted to 127.8 billion rubles. The growth occurred as a result of an increase in MTS investments in the development of the network and under the influence of the foreign exchange component of capital expenditures against the backdrop of a weakening ruble exchange rate, as well as in connection with the expansion and modernization of capacities in the Segezha Group.^[1]

2019: Revenue 656.86 billion rubles (+ 5.1 %)

In 2019, the consolidated revenue of AFK Sistema in 2019 reached 656.86 billion rubles, which is 5.1% more than a year earlier. The rise was due to the contribution of MTS, Agroholding "Steppe," "Medsi," BESK and RTI, said group president Andrei Dubovskov.

In the case of MTS, the growth of revenues from mobile services, as well as other complementary areas, including financial services, system integration services and software sales, contributed. In the case of Medsi, due to an increase in the volume of services provided in key segments.

AFC Financial Indicators System

In 2019, AFK Sistema demonstrated steady business growth due to the growth of public and key non-public assets, significantly reduced the debt burden both at the group and corporate center levels, and also continued to invest in promising businesses and carried out several successful monetizations, he said.

In 2019, the net profit of AFK Sistema turned out to be 53.438 billion rubles, significantly increasing compared to 2018, when profit was measured at 1.11 billion rubles. Sales of a 100% stake in Leader Invest and its deconsolidation, a public offering of an 18.3% stake in Detsky Mir, deconsolidation and further reclassification of the remaining stake (33.4%) as an investment in an associated company affected.

According to the results of the year, the financial obligations of the AFK Sistema corporate center decreased by 15.3% and amounted to 189.2 billion rubles. The strategic goal of the holding is to reduce the debt to 140-150 billion rubles.

The holding noted that during 2019, AFK Sistema was active in the capital markets in order to diversify and optimize its debt portfolio, significantly increasing its duration and forming a comfortable repayment schedule, as well as increasing the share of ruble financing to more than 95%.^[2]

2013: Revenue $35.9 billion (+ 5.9 %)

In 2013, the revenue of AFK Sistema increased by 5.9% compared to 2012, to $35.9 billion. In 2013, almost all assets of the holding grew revenue - with the exception of the Indian operator SSTL and OJSC "."RTI

In 2013, the holding's adjusted net profit increased by 11.1% and amounted to $2 billion, the OIBDA indicator amounted to $8.9 billion, which is 5.8% higher than in 2012. Sistema's net debt as of December 31, 2013 amounted to $296.8 million.

The main contribution was made by previously reported OJSC Mobile TeleSystems"" () MTS and OJSC ANK "." Bashneft In total, both of these assets brought about 84% of the total dollar revenue of the holding. In the case of MTS, the total revenue for 2013 rose by 5.3% year on year, to 398 billion rubles. The main driver of its growth was the high-margin segment of mobile data transmission in the Russian Federation, which last year increased revenue by 43.4% year-on-year, to 47.4 billion rubles.

The revenue of the Mass Media System against the background of the launch of new services in Stream and an increase in the audience of channels in 2013 increased by 34.3% year-on-year, to $110 million.

Other telecommunications and IT assets of AFK Sistema, such as RTI and Sistema Shyam TeleServices Ltd. (SSTL), revenue for 2013 did not increase. In 2013, RTI's revenue remained at the level of 2012, as the growth in revenues in the Defense Solutions segment by 23% year-on-year was largely offset by a decrease in revenues in the Information and Communication Technologies segment.

SSTL revenues for 2013 due to the cessation of operations in 13 districts and the concentration of development in the nine most economically attractive regions of India decreased by 30.9% to $209 million. Nevertheless, SSTL managed to reduce the loss on OIBDA from $333 million to $147 million.

2012: Revenue $34.2 billion 80% increase in net profit

At the end of 2012, the corporation's consolidated revenue grew by 3.9% to $34.2 billion. OIBDA, excluding adjustments, increased by 3.3% compared to the previous year to $8.5 billion, OIBDA margin was 25.0%.

The net profit of AFK Sistema, excluding adjustments, increased by 80% compared to the same figure last year and amounted to $1.8 billion.

Net debt at the level of AFK Sistema corporate center amounted to $1.0 billion as of December 31, 2012, compared to net cash position of $580.5 million as of December 31, 2011, mainly due to investments of AFK Sistema in 2012.

2011: Revenue $32.9 billion, profit $218 million

Main indicators of AFK Sistema for 2011:

• Consolidated revenue grew by 23.0% to $32.9 billion (of which 29.2 billion accounted for the "base assets" of the group)
• The aggregate revenue of the group exceeded 1 trillion rubles.
• OIBDA, excluding one-time adjustments, increased by 16.2% compared to the previous year to $8.3 billion, the OIBDA margin was 25.1%.
• AFK Sistema's net profit amounted to $218.0 million, excluding one-time adjustments, net profit increased by 58.9% to $996.8 million.
• The net cash position of AFK Sistema Corporate Center was US $564.4 million compared to net debt of US $684.5 million in 2010.
• Capitalization at the beginning of March 2011 - $13.3 billion.

On June 30, 2012, the annual general meeting of shareholders of AFK Sistema OJSC decided to direct 2.702 billion rubles to pay dividends. Thus, dividends will amount to 0.28 rubles. for each ordinary share of AFK Sistema OJSC and will be paid by August 29, 2012.

2010: Total assets $42.6 billion

The consolidated revenue of AFK Sistema for 2010 increased by 49.9% compared to 2009, mainly due to the results of the Fuel and Energy Complex business unit. All assets except telecommunications, including the Fuel and Energy Complex business unit, in 2010 brought the group 59.2% of consolidated revenue, compared with 46.9% in 2009.

Business and administrative and administrative expenses in 2010 increased by 25.1% in comparison with 2009 - to $3,838.5 million, generally due to changes in expenses in MTS and Bashneft and also as a result of consolidation of expenses of Bashneft for all 2010 in comparison with nine months 2009.

The group's OIBDA for the whole of 2010 increased by 8.6% compared to the previous year as a result of significant revenue growth, and the OIBDA margin was 26.0%.

Depreciation expenses in 2010 increased by 18.3% compared to 2009 - to $2,946.4 million, mainly due to the consolidation of depreciation of Bashneft's fixed assets for the whole of 2010 compared to nine months of 2009.

In 2010, operating profit increased by 3.0% compared to operating profit in 2009, despite the recognition of profits from the acquisition of Bashkir assets in the amount of $2.8 billion in 2009. Such high results were achieved thanks to Bashneft's good operational performance. Operating profit margin in 2010 was 15.5% compared to 22.6% in 2009. The decrease in operating margin is caused by an increase in the share of Bashneft's low-margin operations in the group's consolidated results.

The group's interest expenses for the whole of 2010 amounted to $1,597.2 million, compared to $1,246.4 million in the previous year, mainly due to an increase in the share of non-dollar debt (in USA particular, SSTL debt in Indian rupees), as well as the effect of exchange rates as a result of the decline in the average exchange rate dollar to the ruble.

The effective tax rate for the whole of 2010 was 37.3%, compared to 24.4% in 2009. The increase in the effective tax rate was caused by a decrease in tax-free income, including profits from the acquisition of Bashkir assets in the amount of $2.8 billion.

Consolidated net profit in the share of AFK Sistema decreased by 44.1% from $1 643.4 to $918.7 million compared to 2009. The decrease occurred mainly as a result of recognition of income from the acquisition of Bashkir assets in 2009.

Total assets as of March 31, 2010 amounted to $42.6 billion.

2009: Revenue $18.75 billion, profit growth to $1.643 billion

The company's revenue in 2009 amounted to $18.75 billion, compared to $16.07 billion in 2008.

In 2009, AFK Sistema increased its net profit according to generally accepted accounting standards in the United States, US GAAP compared to 2008 ($62 million) by almost three hundred times to $1.643 billion due to large one-time revenues.

The largest revenue in 2009 was received in the business direction of Telecommunications - it amounted to $9.956 billion, net profit in this direction amounted to $422.3 million. Following is the direction of oil assets - revenue of $5.73 billion, net profit of $391.4 million.

2007: Revenue $13.7 billion, capitalization $14.8 billion

The total revenue of the group of companies for 2007 is $13.7 billion, net profit - $1571.9 million, OIBDA - $5 billion.

Since October 2007, Sistema has owned 51% of the smallest (for 2007) of the 13 mobile operators India Shyam Telelink^[3]The company's share in the mobile market in India is 0.05%. Shyam Telelink provides fixed-line services (150 thousand subscribers) and cellular (100 thousand subscribers), ^[4]

Capitalization for July 10, 2007 - $14.8 ^[5].

Notes