SBER.L Regulatory News (SBER)

       February 15, 2022, Moscow

Sber alters organizational structure to implement Strategy, announces changes in the management team

In the framework of the implementation of its Strategy, Sber has decided to make changes to its organizational structure that will enhance client centricity.

The changes announced will be implemented by June 1, 2022.

Two ecosystems, for legal entities (B2B) and for individual clients (B2C), will be established in order to provide a comprehensive view of client needs and create a seamless customer experience when using Sber's services.

Sber's B2B and B2C ecosystems will cooperate closely with each other, as well as with other bank divisions and Sber subsidiaries based on common platform and technology solutions. Together they will form a coherent Sber ecosystem.

In the e-commerce segment, Sber Group's key non-banking industry, an e-commerce holding will be established that will combine Sber's investments in SberMarket, SberMegaMarket, SberLogistics, SBER EAPTEKA, and SMM Retail, as well as in O2O Holding, Sber's joint venture with VK. Unified asset management will ensure a better customer experience, create significant synergy, and strengthen Sber Group's position in the fast-growing e-com industry.

All Sber partners in companies set to join the holding will receive an offer to exchange their shares for shares in the holding at fair market value.

Herman Gref, CEO and chairman of the executive board, Sberbank:

"Sber is undergoing a successful business model transformation from bank to diversified ecosystem providing hundreds of useful everyday services in a variety of areas for over 105 million clients in the B2C and B2B segments. Ensuring synergy in products and services based on the customer journey, anticipating customer needs on a daily basis, and forming a comprehensive proposal for segments from Sber as an ecosystem - these are our team's key objectives. That is why it was important to bring together all products from our financial and non-financial industries under a single leadership in each of our key client segments.

"I am certain that we will be able to bring even more value to society and construct an efficient process to create and continuously develop comprehensive and advantageous offers for Sber clients in the framework of our new organizational structure."

Sber has also made a number of management changes

Alexander Vedyakhin, first deputy chairman of the executive board, will oversee the development of the B2B ecosystem. He will also supervise the Sales Network Unit.

As of June 1, 2022, Vedyakhin will also take over the International Business Unit and horizontal coordination of all the bank's subsidiaries specializing in services for legal entities.

Sberbank's Supervisory Board has decided to introduce a first deputy chair of the executive board that will oversee the B2C ecosystem.

In the case of a favorable decision by the Central Bank of the Russian Federation, Kirill Tsarev, currently deputy chairman of the executive board and head of Sberbank's Retail Business Unit, will be appointed to the position.

Starting February 16, 2022, Kirill Tsarev will oversee the Wealth Management Unit in addition to Retail Business.

Starting June 1, 2022, he will also take over the horizontal coordination of all bank subsidiaries specializing in services to retail clients.

Kirill Tsarev joined the Sberbank team in 2011 as deputy CEO of Sberbank Leasing, which he soon led. In 2018, he moved to the position of CIB department director. In 2020, he joined the Sberbank Executive Board as a deputy chairman and the head of Retail Business. Kirill has two degrees in economics and law. He also studied at London Business School (UK).

Kirill Tsarev, deputy chairman of the executive board, Sberbank:

"The work of Sber Group over the past five to seven years has resulted in the successful growth of its ecosystem companies. We now have a new goal - to provide a unified customer experience and maximum satisfaction for our clients. This is an interesting task and, most importantly an opportunity to make even better products and services for our clients."

Herman Gref, CEO and chairman of the executive board, Sberbank:

"Kirill Tsarev is a talented young manager who has formed a vibrant team and built excellent synergy between Sberbank divisions and new ecosystem industries in a short period of time. I am certain that Kirill's open-mindedness, his focus on finding win-win solutions as a team, and his variety of experience will make him a great leader for our B2C ecosystem. I wish him patience and good luck on this journey!"

In the case of a positive decision by the Central Bank of the Russian Federation, the Sberbank Supervisory Board will appoint CFO Alexandra Buriko to the position of deputy chair of the executive board.

Alexandra Buriko joined Sberbank in January 2020 as senior vice president and CFO. She joined the executive board in October of that year. She served as CFO of RUSAL Group from 2013 to 2019 and was CEO of RUSAL Group from March to May 2018. Starting in 1996, she worked for KPMG in Russia and Canada for 16 years and became a partner in 2005, heading the metals and mining segment in Russia and the CIS. She graduated with a degree in mathematical methods in economics from Lomonosov Moscow State University.

Alexandra Buriko, CFO, Sberbank:

"I feel great pride and responsibility working at Sber, where we bring together the best people and create new opportunities for the entire country. I am very pleased and ready to conquer new horizons together with the team."

Herman Gref, CEO and chairman of the executive board, Sberbank:

"In her two years at Sber, Alexandra Buriko has constructed a transparent model for managing the group's financial metrics, made progress in integrating the ecosystem companies into unified financial planning processes, and built the ecosystem's capital in the eyes of analysts and investors.

I am confident that she will take on the challenges of her new role with great energy."

Sberbank's Supervisory Board also considered a request from First Deputy Chairman Lev Khasis, who has decided to conclude his work on the board in order to pursue his own projects.

The supervisory board has agreed to relieve him of his position effective June 1, 2022, after which Khasis will continue to work with Sber as a consultant and will become president and chairman of the board of directors of the e-commerce holding that will be established by Sber.

The units, divisions, and subsidiaries currently supervised by Lev Khasis will be transferred to Alexander Vedyakhin and Kirill Tsarev, first deputy chairmen of the executive board, other members of the executive board, or placed under the direct supervision of Herman Gref, CEO and chairman of the Sberbank Executive Board, by June 1, 2022.

Lev Khasis joined Sberbank in 2013 as first deputy chairman of the executive board and has significantly contributed to its development. Under his leadership, major projects were implemented to transform Sber in the areas of technology, centralization of operational and service functions, increasing the efficiency of business processes, cybersecurity competences, marketing, communications, and the implementation of Sber's foreign market strategy. Khasis was involved in the creation of dozens of new products, services, and subsidiaries for Sber in both the financial and non-financial industries. Khasis was awarded the Certificate of Honor of the President of the Russian Federation and the Order of Friendship for his contribution to banking in Russia.

Lev Khasis, first deputy chairman of the executive board, Sberbank:

"My decision to end my tenure on the Sberbank Executive Board was made and agreed with Sberbank CEO Herman Gref many months ago. It was based on a balance of my professional and personal priorities. Now that Sber's Strategy 2023 is being successfully implemented, it is time to announce this decision and implement it.

"I am grateful to Herman Gref for the honor of being part of his amazing team, the Sber team, and for the opportunity to work with such bright, professional, fantastic, and endlessly supportive people.

"Over these long but fast-paced years, Sber has become much more than a place of work for me. It has become my home. The Sber team, which has managed to transform one of Russia's oldest companies into a young, fast-growing company recognized as the best in the country and one of the best in the world, has become an integral part of my life.

"One of the key goals of Sber's strategy is to achieve leadership in the e-commerce industry in Russia. This is a very ambitious challenge. When met, it will bring great value to the shareholders of Sberbank and its clients. I will be happy to invest my knowledge, experience and energy in a new capacity to achieve this and other strategic goals of Sber.

"I am certain that Sber will continue its successful evolution further and reach new highs while pursuing its mission of instilling confidence and reliability in people, making their lives better, and helping them with their aspirations and dreams."

Herman Gref, CEO and chairman of the executive board, Sberbank:

"Lev Khasis is one of the leaders who built the Sber we know today, a modern company with a diversified business model. Lev pioneered the transformation of Sberbank into a technology company and did a lot to improve the efficiency of our organization, create new services and products, increase our customer centricity, and develop Sber's corporate culture.

"Our ecosystem started to shape up and evolve with his active participation, and the Sber brand was recognized among the world's strongest brands. His mindset, original solutions, and ironic approach to both our wins and fails are vital for our entire team.

"I am certain that our partnership with Lev in his new position will benefit Sber a lot."

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PJSC Sberbank is Russia's largest bank and a leading global financial institution. Holding almost one-third of aggregate Russian banking sector assets, Sberbank is the key lender to the national economy and one of the biggest deposit takers in Russia. The Government of the Russian Federation represented by the Ministry of Finance of the Russian Federation is the principal shareholder of PJSC Sberbank owning 50% plus one voting share of the bank's authorized capital, with the remaining 50% minus one voting share held by domestic and international investors. Sberbank has customers in 18 countries. The bank has a major distribution network in Russia with about 14,000 branches, while its international operations - subsidiary banks, branches, and chapters - include the UK, US, CIS, Central and Eastern Europe, India, China, and other countries. It holds general banking license No. 1481 dd. August 11, 2015, from the Bank of Russia. Official websites of the bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.

In 2020 Sberbank underwent a rebranding, offering financial and non-financial services of the bank and Sberbank Group to individual and corporate customers. Today, the Sber ecosystem is a raft of services for life and daily assistance in handling pressing everyday issues for individual customers and businesses. The Sber ecosystem website: www.sber.ru.