Sistema PJSFC (Sistema, the “Corporation or, together with its subsidiaries and affiliates, the Group) (LSE: SSA, MOEX: AFKS), a publicly traded Russian investment company, notes that its subsidiary, Segezha Group PJSC (Segezha Group or the Company), announced its intention to conduct an initial public offering (the Offering) of ordinary shares (the Offer Shares) and to list on Moscow Exchange.

The Offering will consist of a primary offering of newly issued shares expected to raise at least RUB 30 billion and an over-allotment option of secondary shares of up to 15% of the Offer Shares expected to be granted by Sistema PJSFC and/or one of its fully owned subsidiaries. Sistema expects to remain majority shareholder post the Offering.

Vladimir Chirakhov, President of Sistema, said:

Since 2014, Sistema has transformed Segezha Group into a world-class company with an exceptional resource base, well-managed production costs, global leadership in attractive industry segments and a highly capable and motivated management team. These advantages  backed by investment of RUB 49 billion since 2015  have translated into strong profitability and growth metrics, with revenue and OIBDA more than doubling between 2015 and 2020.

We have also focused on improving the Company environmental, social and corporate governance (ESG) profile. This has included confirming Segezha Group approach to reforestation in line with internationally recognized practices, improving energy efficiency, introducing strict health and safety controls, fostering local community engagement and building strong corporate governance.

Segezha Group success illustrates the transformative value that Sistema adds to its portfolio companies. Bringing Segezha Group to the public markets will crystallize the value of our investment, raise funds that would allow Segezha Group to continue to pursue its investment projects and provide investors with the opportunity to benefit from the Companyâ strong growth and attractive returns to shareholders.

Full text of the announcement is available at Segezha Group website https://segezha-group.com/en/press-center/news/segezha-group-announces-intention-to-float-on-moscow-exchange/.

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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, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2020 was RUB 691.6 billion; total assets equalled RUB 1.4 trillion as of 31 December 2020. 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.com.

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