Sistema PJSFC: Joint venture of Sistema and Sber acquires Elektrozavod Group

Joint venture of Sistema and Sber acquires Elektrozavod Group

28 December 2020, Moscow - Sistema PJSFC ("Sistema", the "Corporation" or, together with its subsidiaries and affiliates, the "Group") (LSE: SSA, MOEX: AFKS), a Russian public diversified holding company, announces that LLC Megapolis Invest (the "Purchaser"), a joint venture between Sistema (75.86%) and LLC Sberbank Investments ("SberInvest") (24.14%), has closed the transaction whereby it acquired a 64.37% stake in JSC Elektrozavod and 100% in LLC Elektrokombinat ("Elektrozavod Group") from certain private investors ("the Transaction"). The Transaction was valued at RUB 24.7bn. The goal of the Transaction is to create Russia's leading manufacturer of transformer equipment and implement a real estate development project on land plots located in Moscow owned by Elektrozavod Group.

Sistema and SberInvest provided equity financing to the Purchaser in the amount of RUB 11.0bn and RUB 3.5bn, respectively. Additionally, SberInvest provided the Purchaser with debt financing of RUB 10.2bn. The parties also concluded an agreement granting Sistema the right to acquire and SberInvest the right to sell to the Group its stake in the equity capital of the Purchaser. Additional co-investors may be brought in at a later stage for both the transformer business and the real estate development project of Elektrozavod Group.

Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre and land plots totalling 19 hectares near the Elektrozavodskaya metro station in Moscow.

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Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2019 reached RUB 656.9bn; its total assets equalled RUB 1.3tn as of 31 December 2019. Sistema's global depositary receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Stock Exchange. Website: www.sistema.com.

SberInvest (Sberbank Investments LLC) is a wholly owned subsidiary of PJSC Sberbank and part of its Corporate and Investment Unit. Its core operations include financial solutions and structuring through equity and mezzanine instruments, which it offers to the bank's customers.