SSA.L Regulatory News (SSA)

Sistema announces new dividend policy

Moscow, 24 May 2021 - Sistema PJSFC ("Sistema", the "Corporation" or, together with its subsidiaries and affiliates, the "Group") (LSE: SSA, MOEX: AFKS), a publicly traded Russian investment company, announces the resolutions adopted at a meeting of the Board of Directors held on 24 May 2021.

The Board of Directors approved Sistema's new dividend policy for 2021-2023, which is designed to strengthen the Corporation's equity story and support shareholder returns. Under the dividend policy, the Corporation targets annual payments of no less than RUB 0.31 per ordinary share in 2021, RUB 0.41 per ordinary share in 2022 and RUB 0.52 per ordinary share in 2023. Based on the current number of ordinary shares, the recommended basic dividend will grow every year and total approximately RUB 3 billion in 2021, approximately RUB 4 billion in 2022 and approximately RUB 5 billion in 2023. In addition to the basic dividend, the Board of Directors has recommended that, starting from 2022, Sistema distributes 10% of the absolute growth in its OIBDA[1] for the previous year to shareholders, in the event that the Corporation delivers absolute OIBDA growth of more than 5% for the previous year and that the net debt/OIBDA ratio stands at no more than 3.0x as of the end of the previous year.

In line with the new dividend policy, the Board of Directors has recommended that the Annual General Meeting of shareholders of the Corporation, which will take place on 26 June 2021 with absentee voting, approve a dividend for the 2020 financial year of RUB 2,991.5 million, or RUB 0.31 per ordinary share (RUB 6.2 per GDR), and to set the dividend record date as 15 July 2021.

Vladimir Chirakhov, President of Sistema, said:

"Over the past several years Sistema has significantly grown the value of its investment portfolio, including through the successful IPOs of Ozon and Segezha Group. Our diversified portfolio of assets has demonstrated resilience throughout the COVID-19 pandemic, both growing in value and providing stable dividend flows. These achievements give the Corporation the opportunity to propose to the shareholders an increase in the dividend of more than double the payout for 2020, as well as a new dividend policy focusing on consistent dividend growth going forward. The new dividend policy establishes an optimal balance between growth in the value of our portfolio and dividend yield, while maintaining our commitment to financial discipline. I believe that this dividend policy will further strengthen our equity story and give shareholders the opportunity to share in the success of the Corporation."

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Sistema PJSFC is a publicly traded Russian investment company with a diversified portfolio of assets serving over 150 million customers in the sectors of telecommunications, high technology, financial services, retail, e-commerce, paper and packaging, agriculture, real estate, hospitality and medical services. The company was founded in 1993. Revenue in 2020 reached RUB 691.6 billion; total assets stood at RUB 1.4 trillion as of 31 December 2020. Sistema's global depositary receipts are listed on the London Stock Exchange under the ticker "SSA". Sistema's ordinary shares are listed on Moscow Exchange under the ticker "AFKS". Website: www.sistema.com.

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

[1] Here and hereafter adjusted OIBDA as per the Corporation's consolidated IFRS financial statements.