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Sistema PJSFC: Sistema announces financial results for the first quarter 2022

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Sistema PJSFC (SSA)
Sistema PJSFC: Sistema announces financial results for the first quarter 2022
09-Jun-2022 / 10:00 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

IFRS Financial Results for 1Q 2022


Moscow, Russia – 9 June 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 first quarter of 2022 (1Q 2022) ending 31 March 2022.


1Q 2022 FINANCIAL RESULTS

  • Consolidated revenue grew by 26.2% year-on-year to RUB 216.4 billion.

  • Adjusted OIBDA increased by 22.0% year-on-year to RUB 69.4 billion.

  • Adjusted OIBDA margin was 32.1%.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

  • High level of dividend income. In May 2022, the Board of Directors of MTS recommended that the Annual General Meeting of Shareholders approve a dividend payout for 2021 in the amount of RUB 66.3 billion.

In January 2022, Sistema received interim dividends from Segezha Group for 9М 2021 in the amount of RUB 4.1 billion. In May 2022, the General Meeting of Shareholders of Segezha Group approved final dividends for 2021 in the amount of RUB 10.0 billion.

  • Increased stake in the real-estate business. In May 2022, Sistema increased its effective share in Etalon Group to 48.8% with the acquisition of 72.9 million global depositary receipts for RUB 4.5 billion.

  • Continuation of foreign listing. In May 2022, Sistema received permission to continue trading in its depositary receipts outside Russia until 13 May 2023.


SISTEMA RESULTS REVIEW

 

(RUB mln)

1Q 2022

1Q 2021

Change

Revenue

216,435

171,536

26.2%

Adj. OIBDA

69,439

56,930

22.0%

Operating income

31,430

25,384

23.8%

Net loss attributable to Sistema

(18,536)

(2,400)

n/a

Adj. net loss attributable to Sistema

(10,582)

(2,400)

n/a

In 1Q 2022, Sistema’s consolidated revenue increased by 26.2% year-on-year to RUB 216.4 billion, driven by revenue growth at key assets: at MTS, thanks to higher revenues from telecommunication services and the development of smart targeted advertising services; at Segezha Group, due to higher sales volumes, positive pricing dynamics for key products, a positive impact from ruble depreciation as well as the consolidation of assets acquired in 2021; at Steppe, primarily due to an increase in milk production and sales as well as the aggressive development of niche crops trading; at Medsi, due to increased patient flows, the opening of new clinics and revenue from clinics acquired in late 2021. The consolidation of Binnopharm Group’s results in Sistema’s financial statements from 25 June 2021 also had an impact on the Corporation’s revenue.

The Group’s adjusted OIBDA increased by 22.0% year-on-year to RUB 69.4 billion in 1Q 2022 primarily as a result of higher adjusted OIBDA at subsidiaries: at MTS, following revenue growth in the telecom segment, higher margins and optimisation of retail network expenses; at Segezha Group, due to a considerable increase in revenue as well as improvements in operational and production efficiency; at Steppe, mainly as a result of effective sales of surpluses from the previous season’s record harvest and improved performance in trading operations and in the Dairy segment.

Group SG&A expenses rose 28.2% year-on-year in 1Q 2022, mainly on the back of an increase in SG&A at MTS, Segezha Group and Steppe, as well as the consolidation of Binnopharm Group’s results. SG&A at MTS increased as a result of accruals under the updated options programme for management and increased advertising expenses to develop the fintech segment and other ecosystem products. SG&A at Segezha Group increased as a result of revenue growth, as well as the consolidation of the assets of the Novoeniseisk Wood-Chemical Complex and Inter Forest Rus. The increase in SG&A at Steppe was mainly due to accruals under the LTI programme.

The Group’s adjusted net loss in the reporting quarter amounted to RUB 10.6 billion, compared with a loss of RUB 2.4 billion a year earlier, primarily due to provisions for deferred tax assets at the Corporate Centre level due to the decrease in the market value of Ozon shares.

Group capex increased by 38.5% to RUB 52.3 billion in 1Q 2022 mainly due to increased investments in telecom and IT equipment at MTS.

 


OVERVIEW OF PORTFOLIO COMPANIES


MTS

 

LEADING TELECOMMUNICATIONS OPERATOR AND DIGITAL SERVICES PROVIDER IN RUSSIA

 

(RUB mln)

1Q 2022

1Q 2021

Change

Revenue

134,447

123,940

8.5%

Adj. OIBDA[1]

56,086

55,422

1.2%

Adj. OIBDA margin[1]

41.7%

44.7%

(3.0 p.p.)

Operating income

26,294

28,640

(8.2%)

Adj. net profit attributable to Sistema[1]

2,059

8,090

(74.5%)

 

MTS’s revenue increased by 8.5% year-on-year in 1Q 2022 to RUB 134.4 billion due to higher revenues from telecommunication services (including as a result of M&A transactions in mid-2021), as well as the development of MTS Marketer, a smart targeted advertising service. The fintech and media business verticals demonstrated robust growth in a rapidly changing business environment.

In 1Q 2022, adjusted OIBDA increased by 1.2% year-on-year to RUB 56.1 billion following revenue growth in the telecom segment, increased profitability and optimisation of retail network expenses. Adjusted OIBDA growth was constrained primarily by accrued expenses for option programmes and by provisioning at MTS Bank due to current macroeconomic factors.

The adjusted OIBDA margin in 1Q 2022 was 41.7%.

Adjusted net profit in 1Q 2022 decreased year-on-year due to higher interest expenses in response to an increase in the Bank of Russia’s key rate, higher amortisation expenses as a result of recent intensive capital investments and M&A transactions, as well as an increase in exchange rate differences and securities revaluations.

Capex increased by 27.2% year-on-year in 1Q 2022 to RUB 37.3 billion due to increased investments in network and IT equipment.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

 

Extension of the American depositary receipt (ADR) programme. In May 2022, the Russian Government Commission on Foreign Investment Oversight granted MTS’s request to continue its ADR programme and gave the company permission to maintain trading in its ADRs outside Russia through 12 July 2022.

Dividends. In May 2022, the Board of Directors of MTS recommended that the Annual General Meeting of Shareholders approve the payout of final dividends for 2021 in the amount of RUB 66.33 billion, or RUB 33.85 per ordinary share. The dividend payout includes dividends paid on quasi-treasury shares.

Ecosystem expansion. In April 2022, MTS acquired a 58.38% stake in Gulfstream Security Systems JSC, a Russian provider of security and smart home services for individuals and businesses, for RUB 2 billion. Gulfstream Security Systems, a leader in the Russian market for comprehensive security solutions for private and business property, provides monitoring services in more than 200 cities under the Gulfstream trademark and has 360 response partners.

Bond issue. In May 2022, MTS placed two issues of exchange-traded bonds (001P-19 and 001P-20) of RUB 10 billion each, for three and four years and with coupon rates until maturity of 11.69% and 11.75% per annum, respectively.

 

 

SEGEZHA GROUP

LEADING RUSSIAN VERTICALLY INTEGRATED FORESTRY HOLDING

 

(RUB mln)

1Q 2022

1Q 2021

Change

Revenue

35,640

18,217

95.6%

OIBDA

11,757

5,028

133.8%

OIBDA margin

33.0%

27.6%

5.4 p.p.

Operating income

8,411

3,388

148.3%

Adj. net profit[2] attributable to Sistema  

2,286

2,361

(3.2%)

Revenue increased by 95.6% year-on-year to RUB 35.6 billion in 1Q 2022 on the back of higher sales volumes, positive pricing dynamics for key products, a positive impact from ruble depreciation as well as the consolidation of assets of the Novoeniseisk Wood-Chemical Complex and Inter Forest Rus.

OIBDA increased 2.3x year-on-year to RUB 11.8 billion in 1Q 2022 primarily due to considerable revenue growth as well as improvements in operational efficiency. The OIBDA margin was 33.0% in 1Q 2022.

Adjusted net profit amounted to RUB 2.3 billion, compared with RUB 2.4 billion in 1Q 2021.

Capex in 1Q 2022 was in line with the same period last year. The key investment targets were the modernisation of the Segezha PPM, the Sokol PPM and the Lesosibirsk sawmill; the expansion of the Vyatka plywood plant; and the development of Segezha Group’s own converting facilities.

Net debt[3] as of the end of 1Q 2022 increased by 64.8% year-on-year to RUB 92.8 billion as a result of cash payments for the acquisition of Inter Forest Rus as well as the payout of interim dividends for 9M 2021.

Segezha Group’s paper production in 1Q 2022 decreased by 1.2% year-on-year to 88.6 thousand tonnes. Sales volumes to third parties decreased by 9.1% to 47.0 thousand tonnes due to an increase in the share of sales for converting by Segezha Group to 48%, which was also influenced by a high base effect due to the sale of a significant volume of warehouse stock in 1Q 2021. Paper prices increased by 42% year-on-year to EUR 762 per tonne.

Production of paper sacks and bags increased by 15.7% year-on-year to 392.9 million units in 1Q 2022 thanks to the launch of new production lines, including a new plant in Lobnya. Segezha Group sold 345.3 million paper sacks,[4] an increase of 12.8% year-on-year, as a result of higher production volumes. The price of paper sacks increased by 32% year-on-year to EUR 201 per thousand units.

In 1Q 2022, production of plywood increased by 12.0% year-on-year to 55.8 thousand cubic metres. Sales volumes in the reporting period increased by 18.0% year-on-year to 55.8 thousand cubic metres. The main factor behind the increase in production and sales was the consolidation of a plywood mill into the assets of Inter Forest Rus. Plywood prices increased by 63% year-on-year to EUR 708 per thousand cubic metres.

Sawn timber production increased 2.5x year-on-year to 614.6 thousand cubic metres in 1Q 2022. Sales volumes of sawn timber[5] increased 2.7x year-on-year to 590.3 thousand cubic metres. The main factor behind the increase in production and sales was the consolidation of the results of the Novoeniseisk Wood-Chemical Complex and Inter Forest Rus. Sawn timber prices increased by 32% year-on-year to EUR 232 per thousand cubic metres.

In 1Q 2022, production of glulam products and house kits decreased by 6.2% year-on-year to 21.3 thousand cubic metres. Sales also decreased year-on-year, by 3.7%, to 21.0 thousand cubic metres amid a drop in production volumes. Prices for laminated beams and house kits increased by 52% year-on-year to EUR 483 per thousand cubic metres.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

High dividend payouts. In January 2022, Segezha Group completed the payout of interim dividends for 9M 2021 in the amount of RUB 6.6 billion, or RUB 0.42 per share. In May 2022, the General Meeting of Shareholders of Segezha Group approved final dividends for 2021 in the amount of RUB 10 billion, or RUB 0.64 per share.

Bonds. In January 2022, Segezha Group placed an issue of exchanged-traded bonds (002P-03R) for RUB 9 billion, to mature in January 2024. The coupon rate is 10.90% per annum.


AGROHOLDING STEPPE

AGRICULTURAL HOLDING WITH ONE OF THE LARGEST LAND BANKS IN RUSSIA
 

(RUB mln[6])

1Q 2022

1Q 2021

Change

Revenue

14,105

6,751

108.9%

Adj. OIBDA[7]

2,661

1,197

122.4%

Adj. OIBDA margin

18.9%

17.7%

1.1 p.p.

Operating income

1,467

892

64.4%

Adj. net profit attributable to Sistema[7]

244

299

(18.4%)

Steppe’s revenue in 1Q 2022 increased by 108.9% year-on-year to RUB 14.1 billion as a result of higher milk production as well as aggressive development of Niche Crops Trading. Sugar and Grocery Trading and the business lines launched in 2021 – production of packaged cheese and distribution of dairy products and plant-based alternatives – also contributed to the increase in revenue.

The 122.4% year-on-year increase in adjusted OIBDA, to RUB 2.7 billion, in 1Q 2022 was driven mainly by effective sales of surpluses from last year’s record harvest and upward price trends for product sales, implementation of effective sales strategies in Agrotrading and Niche Crops Trading, as well as improved metrics in the Sugar and Grocery Trading and the Orchards segments. The increase in adjusted OIBDA was also driven by revenue trends in the Dairy segment and a higher milk yield.

The adjusted OIBDA margin in 1Q 2022 reached 18.9%.

In 1Q 2022, adjusted net profit totalled RUB 0.2 billion.

Steppe’s capex in 1Q 2022 totalled RUB 0.7 billion. Investments focused on dairy farming development projects, acquisitions of agricultural machinery and purchases of land plots.

Net debt[8] at the end of the reporting period was RUB 37.4 billion, 56.2% higher year-on-year, due to an increase in working capital, including in trading operations; earlier dates for the purchase of production equipment; as well as the financing of projects to start secondary processing during 2021.

Steppe’s land bank stood at 578,000 hectares as of the end of the reporting period, putting the company among the six largest landowners in Russia.

The Dairy segment delivered record growth in operating performance, with gross yield in 1Q 2022 increasing by 73% year-on-year to 34.3 thousand tonnes. The dairy herd totalled 11,947 head of cattle at the end of the reporting period. Average daily productivity per cow in 1Q 2022 was 33.2 kg.

Sales volumes in the Agrotrading segment since the beginning of the 2021/2022 season totalled 1,668 thousand tonnes, up 38% year-on-year. Steppe shipped 234 thousand tonnes of niche crops, making it the leader among Russian exporters of niche agricultural products.

Sales volume in the Sugar and Grocery Trading segment in 1Q 2022 totalled 70 thousand tonnes, an increase of 4% year-on-year. Sales of packaged products, including private labels, are one of the priorities for the segment. Sales of packaged products in 1Q 2022 increased by 45% year-on-year.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

Successful completion of the sowing season. The 2022 spring sowing season was successfully completed thanks to implementation of the import substitution programme and advance purchases of production equipment at Steppe’s farms. Targets for the sowing of basic and niche crops were met in full.

ESG progress. In January 2022, the company approved a Sustainability Policy. The policy is in line with Sistema’s ESG strategy and forms a cornerstone of Steppe’s long-term strategy.

 

MEDSI

LEADING PRIVATE HEALTHCARE OPERATOR IN RUSSIA

 

(RUB mln)

1Q 2022

1Q 2021

Change

Revenue

8,467

7,240

17.0%

OIBDA

1,352

1,391

(2.8%)

OIBDA margin

16.0%

19.2%

(3.2 p.p.)

Operating income

634

630

0.7%

Net profit attributable to Sistema

340

495

(31.4%)

Medsi’s revenue increased by 17.0% year-on-year to RUB 8.5 billion in 1Q 2022 due to increased patient flows; the opening of new clinics in Moscow, the Moscow region and other regions of Russia; as well as revenue from clinics in the Promeditsina network in Ufa and the Dialine network in Volgograd acquired in December 2021.

OIBDA decreased by 2.8% year-on-year due to the indexation of wages and an increase in the share of low-margin inpatient care in the revenue profile, as well as the impact of recently opened clinics that have yet to reach full utilisation. Participation in the Nebo residential development project contributed RUB 64 million to OIBDA in 1Q 2022, compared with RUB 112 million a year earlier.

Net profit in 1Q 2022 amounted to RUB 0.3 billion.

Clinic utilisation[9] in 1Q 2022 decreased by 3 p.p. year-on-year to 50%. The 15 p.p. decrease in hospital utilisation,[10] to 71%, was associated with a decrease in the amount of daytime inpatient care provided for chemotherapy due to insurance-related limits as well as a decrease in inpatient services for COVID-19.

The average ticket in 1Q 2022 decreased by 9.6% year-on-year to RUB 2,800 due to the addition to Medsi of National Medical Network clinics with a low average ticket. The number of patient visits increased by 29.4% year-on-year to 3.1 million in 1Q 2022. The company’s total capacity is 4.5 million visits.[11]

The 34.7% year-on-year increase in floor space in 1Q 2022, to 288.6 thousand square metres, was due to the commissioning of the Michurinsky multifunctional medical centre and the acquisition of clinics belonging to the National Medical Network in Ufa and Volgograd in December 2021, as well as the opening of other clinics during 2021 and 2022.

Rapid growth in installations of the SmartMed telemedicine app. In 1Q 2022, installations of the SmartMed mobile app increased by 38.5% year-on-year to 297.1 thousand. The app was used to book 785.1 thousand appointments (excluding instrumental and laboratory diagnostics), an increase of 64.6% year-on-year.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

Network expansion. Since the beginning of 2022, Medsi has opened ten medical facilities: two SmartLab offices in Moscow, three primary care clinics and two new small-format SMART clinics in Moscow, one primary care clinic and one SMART-format clinic in Perm, and one SMART-format clinic in Nizhnevartovsk.

In April 2022, Medsi acquired 17 clinics from the Labdiagnostics network (with total floor space of 2,593 sqm) in Perm, increasing Medsi’s presence in the market for private medical services in the Perm region by expanding its outpatient component.

 

BINNOPHARM GROUP

LEADING PHARMACEUTICAL PRODUCER

 

(RUB mln[12])

1Q 2022

1Q 2021

Change

Revenue

6,603

5,362

23.1%

OIBDA

1,634

1,631

0.2%

OIBDA margin

24.8%

30.4%

(5.7 p.p.)

Operating income

765

1,320

(42.0%)

Net profit

55

752

(92.7%)

Revenue in 1Q 2022 increased by 23.1% year-on-year to RUB 6.6 billion as a result of higher sales across all business segments. Retail sales increased by 36% year-on-year, driven mainly by sales of kipferon, diclofenac and ibuprofen.

Export sales more than doubled year-on-year in 1Q 2022 due to increased sales in all countries where offices were opened.

OIBDA remained virtually unchanged year-on-year, amounting to RUB 1.6 billion in 1Q 2022. OIBDA trends were constrained by the increase in selling costs for the promotion of new brands in the portfolio.

Net debt at the end of the reporting period totalled RUB 12.2 billion. The 29.7% year-on-year increase in net debt was due to temporary changes in working capital – specifically, an increase in stocks of raw materials as well as auxiliary and packaging materials to ensure an uninterrupted production process amid changes in supply chains in the new environment. In addition, the purchase of new medications from Dr. Reddy’s also had an impact on net debt trends. Net debt / OIBDA LTM for 1Q 2022 was at the target level of 1.5x.


KEY HIGHLIGHTS IN 1Q 2022 AND AFTER THE REPORTING PERIOD

Launch of production of a drug to treat COVID-19. In April 2022, Binnopharm Group began production of Molnupiravir at its facility in the Moscow region. The production site has the capacity to produce up to 15 million packages of the drug per year. The medication’s full production cycle will be carried out in Russia.

Increased production capacity. In February 2022, Binnopharm Group completed the renovation of its production site for medications in the form of syrups and suspensions at the Sintez plant in Kurgan. This will enable the company to triple production of medications in these forms, to 6 million vials per year.

Acquisition of rights to new medications. In February 2022, Binnopharm Group signed an agreement to acquire the rights for two antibacterial medications from Dr. Reddy’s in Russia, Uzbekistan and Belarus.

 

CORPORATE CENTRE

 

(RUB mln[13])

1Q 2022

1Q 2021

Change

OIBDA

(2,389)

(5,000)

n/a

Net loss

(14,003)

(9,324)

n/a

Corporate Centre’s financial liabilities

251,073

207,874

20.8%

The Corporate Centre comprises Sistema and companies that control and manage Sistema’s interests in its subsidiaries and associates.

In 1Q 2022, the Corporate Centre’s SG&A decreased by 39.4% year-on-year to RUB 1.7 billion due to a decrease in remuneration for transactions. OIBDA trends at the Corporate Centre level during the reporting period were driven by SG&A dynamics.

The net loss at the Corporate Centre level in 1Q 2022 was RUB 14.0 billion (compared with a loss of RUB 9.3 billion in 1Q 2021), mainly due to the creation of provisions for deferred tax assets at the Corporate Centre associated with the decrease in the market value of Ozon shares.

The Corporate Centre’s financial liabilities increased by 20.8% year-on-year due to the placement of RUB-denominated bonds and the securing of new lines of credit. As of 31 March 2022, RUB-denominated liabilities accounted for 98% of the Corporate Centre’s financial liabilities. Bonds accounted for 74% of the Corporate Centre’s debt as of the end of 1Q 2022, up from 69% at the end of 1Q 2021. The average weighted rate on the bond portfolio was 7.7%.

In January 2022, the Corporation completed the share buyback programme launched on 17 September 2019, repurchasing a total of 315,195,371 ordinary shares.

In May 2022, the agreement concluded in May 2021 between Sistema and its financial partner on a non-deliverable swap regarding Etalon Group PLC global depositary receipts expired. As a consequence, Sistema Finance JSC, a Sistema subsidiary, acquired 72,854,619 GDRs for RUB 4.5 billion, increasing the Group’s effective share in Etalon Group PLC to 48.8%.

 

 

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

 

Investor Relations

Sergei Levitskiy

Tel: +7 (495) 730 66 00

s.levitskiy@sistema.ru

 

Public Relations

Sergei Kopytov

Tel.: +7 (495) 228 15 32

kopytov@sistema.ru

 

Sistema PJSFC is a publicly traded diversified Russian holding company in the sectors of telecommunications, high technology, financial services, retail, 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.

 

 

 

Appendix A

 

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 2022

1Q 2021

Operating income

31,430

25,384

Accruals related to LTI program at portfolio companies

402

-

Impairment of non-current assets (MTS)

207

-

Impairment of investment and other property

277

-

Adjusted operating income

32,316

25,384

Depreciation and amortisation

37,123

31,546

Adjusted OIBDA

69,439

56,930

 

 

 

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

RUB millions

1Q 2022

1Q 2022

Net profit attributable to Sistema

(18,536)

(2,400)

Accruals related to LTI program at portfolio companies

367

-

Impairment of non-current assets (MTS)

104

-

Impairment of investment and other property

277

-

Segezha Group’s financial expenses associated with the revaluation of interest rate swaps

7,206

-

Adjusted net profit attributable to Sistema

(10,582)

(2,400)

 

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 and short-term borrowings. 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 2022

31 December 2021

Long-term borrowings

673,783

641,511

Short-term borrowings

273,356

209,254

Total borrowings

947,139

850,765

Consolidated finance lease1

21,7732

21,1713

Consolidated total debt

968,912

871,936

Cash and cash equivalents

(85,776)

(81,883)

Deposits in banks

(894)

(1,549)

Consolidated net debt

882,242

788,504

 

(1) In accordance with the standard IAS 17.

(2) Including RUB 1,915 million of short-term finance lease.

(3) Including RUB 1,847 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) Adjustment for one-time impairment of assets.

(2) Net profit is adjusted for other financial expenses associated with the revaluation of interest rate swaps.

(3) Net debt includes financial leases.

(4) Including 27.3 million consumer paper bags.

(5) Including sawn timber produced at the Sokol PPM.

(6) RZ Agro is reflected in Steppe’s IFRS accounts as an investment in a joint venture.

(7) Adjusted for allocations related to the LTI programme.

(8) Net debt includes financial leases.

(9) Outpatient facilities in Moscow.

(10) Utilisation accounts for the multiple use of one inpatient bed at daytime inpatient facilities.

(11) Metrics are for 1Q 2022, with capacity calculated as the total number of possible outpatient visits at Medsi facilities, and visits as the actual number of patient visits for the period.

(12) Because Sistema has consolidated Binnopharm Group’s financial results since 25 June 2021, and also due to the absence of comparable IFRS data for the preceding periods, Binnopharm Group’s management accounting data is presented here. Consequently, net profit for Binnopharm Group has not been adjusted to reflect the amount attributable to non-controlling interests.

(13) Based on management accounts.

Attachment

File: Sistema 1Q2022 results

ISIN:

US48122U2042

Category Code:

QRF

TIDM:

SSA

LEI Code:

213800JSZ2UUK4QQK694

OAM Categories:

3.1. Additional regulated information required to be disclosed under the laws of a Member State

Sequence No.:

167039

EQS News ID:

1371395


 

End of Announcement

EQS News Service

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