Moscow, Russia – April 07, 2016  Sistema JSFC (“Sistema” or “the Company”, together with its subsidiaries, “the Group”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, today announces its consolidated financial results in accordance with International Financial Reporting Standards (IFRS) for the fourth quarter and the full year ended December 31, 2015.

EXCELLENT OPERATIONAL AND STRATEGIC PROGRESS

• Strong results from MTS and increased portfolio diversification driven by growth of non-public assets
• Transformation of Segezha Group, leading to robust growth of the asset
• Growing footprint in agricultural sector through new attractive acquisitions
• Increasing cash flow to the Corporate Centre level 

STRONG FULL YEAR 2015 FINANCIAL PERFORMANCE

• Consolidated revenues up 9.7% YoY to RUB 708.6 billion    
• Adjusted OIBDA up 6.7% YoY to RUB 176.4 billion, with an adjusted OIBDA margin of 24.9%
• Net income attributable to the Group of RUB 33.6 billion compared to net loss in 2014 

SOLID FOURTH QUARTER 2015 FINANCIAL RESULTS

• Revenues down 0.7% YoY to RUB 192.7 billion
• Adjusted OIBDA up 19.6% to RUB 35.6 billion
• As of  December 31, 2015, cash position at the Corporate Centre level reached RUB 50.6 billion, excluding RUB 38.0 billion represented by deposits
• Net debt at the Corporate Centre level amounted to RUB 66.2 billion as of December 31, 2015

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented: 

“Despite a challenging year, Sistema delivered strongly in 2015 both in terms of strategy execution and key financial targets. Our efforts to develop our portfolio companies and to monetise investments resulted in further accumulation of cash, which we reinvested into some of the most promising assets in Russia.

“In 2015, we posted revenue growth of nearly 10%, with the increased contribution from our non-public assets to both top-line and OIBDA. In particular, the share of our non-public subsidiaries in consolidated revenues went up from 36% in 2014 to 41% in the fourth quarter of 2015.

“Our flagship asset, MTS, delivered robust financial performance supported by impressive growth in data traffic revenue and retail handset sales. The company also retained market leadership in Russia as it expanded its active subscriber base by 3.5% to 107.8 million. Detsky Mir continued aggressive organic expansion resulting in 12.4% like-for-like sales growth and a 33% year-on-year increase in revenues. Our pulp and paper holding Segezha Group delivered a double-digit increase in revenues and more than doubled its OIBDA as we boosted exports and continued to grow this business both organically and through M&A.

“During the year, we deployed RUB 26 billion into new acquisitions as we sought to invest in undervalued assets and to expand into sectors that are particularly attractive in the current economic environment and where we can achieve clear competitive advantages. Specifically, we invested in agriculture by acquiring businesses with a strong growth potential, clear production cost advantages and great prospects to capitalise on import substitution. We have also supported Segezha’s operating strategy to expand its assets and to enter new export markets as we believe its investment program continues to be an important driver of value for Sistema and its shareholders.

“I have no doubt that we are well on track to build new market leaders as we continue to leverage our Russia-focused expertise and remain strong believers in the potential of our home economy. We expect our new businesses to become important drivers of shareholder returns continuing our track record of success.”

Conference call information

Sistema’s management will host a conference call for analysts and investors today at 10:00 am (EST)/ 3:00 pm (London) / 4:00 pm (CET)/ 5:00 pm (Moscow) to present and discuss the fourth quarter and full year 2015 results.

The dial-in numbers for the conference call are:

Russia

+7 495 213 0978

8 800 500 9312 (toll free)

United Kingdom

+44 20 3427 1907

0800 279 4977 (toll free)

US

+1 646 254 3366

+1 877 280 1254 (toll free)

Conference ID: 6924522

Alternatively, you can quote the conference call title: “Sistema Fourth Quarter and Full Year 2015 Financial Results”.

A replay of the conference call will be available on the Company’s website www.sistema.comfor 7 days after the event.

For further information, please visit www.sistema.comor contact:

Download full version of press release

Download presentation