SISTEMA PUBLIC
JOINT STOCK FINANCIAL
CORPORATION
Annual Report
2021
sistema.ru

Responsibility
statement
About
thereport
Disclaimer
To the best of my knowledge (a) the consolidated financial
statements, prepared in accordance with IFRS, give a true and
fair view of the assets, liabilities, financial position and profit
or loss of Sistema PJSFC and theundertakings included in the
consolidation taken as awhole; and (b) themanagement report
includes a fair review ofthedevelopment and peormance
of the business and the position ofSistema PJSFC and
the undertakings included in the consolidation taken as
awhole, together with a description of the principal risks and
uncertainties that they face.
Yours sincerely,
Vladimir Chirakhov
PRESIDENT AND CHIEF EXECUTIVE
OFFICER SISTEMA PJSFC
This annual report contains information about the activities of Sistema
Public Joint Stock Financial Corporation and its porolio companies
(hereinaer, "Sistema", "Sistema PJSFC" "the Corporation" or, together with
its subsidiaries and ailiates, "the Group"or "Sistema Group") in 2021.
Unless otherwise stated, the financial results presented in this annual
report are based on IFRS consolidated financial statements. The audit
of Sistema's 2021 consolidated financial statements in accordance with
IFRS was peormed by CJSC Deloitte and Touche CIS. The report also
provides information about the Corporation's environmental, social and
governance eectiveness.
The annual report may contain minor inaccuracies in the estimation
of shares, percentages and amounts due to the rounding of numbers.
There may be insignificant discrepancies between the data contained
in this annual report and the data disclosed earlier due to the rounding
dierences.
For other annual reports of the Corporation please go to Investors and
Shareholders sections on the company's website (www.sistema.ru).
Some of the statements in this annual report may contain assumptions
orforecasts concerning the forthcoming or expected events at Sistema
or its porolio companies. Such forward-looking statements contain
phrases like "expected", "estimated", "intended", "will", "could", negatives
of such statements and other similar expressions. Such statements are
assumptions only and the actual course of events and their results may
dier significantly from those implied in the forward-looking statements.
Sistema expressly disclaims any obligation to revise any forward-looking
statements whether as a result of new events and circumstances that
may arise in the future or to reflect any events that are not expected
at the time of compiling this report. The actual results of Sistema and
its porolio companies could dier materially from those expressed in
the assumptions and forecasts of this annual report due to a number
offactors.
Such factors may include general economic conditions, competitive
environment, risks associated with the deterioration of the geopolitical
situation and business operations in Russia, fast technological and market
changes in the segments where Sistema and its porolio companies
operate, the impact of COVID-19 on the macroeconomic situation in the
markets where Sistema and its porolio companies operate and on their
financial results, as well as many other risks that are directly related to
Sistema or its activities.
SISTEMA PJSFC
SISTEMA.RU2 3
SISTEMA PJSFC / ANNUAL REPORT 2021
SISTEMA PJSFC

5
199 SUSTAINABILITY
MANAGEMENT
200 Management system
202 Responsible investment
206 Key ESG areas
212 Social investments
3
53 RESULTS OF KEY ASSETS
54 MTS
66 Ozon
72 Segezha Group
90 Etalon Group
98 Medsi
110 Steppe AgroHolding
120 Binnopharm Group
128 Other consolidated assets
156 Venture capital funds
1
7 COMPANY OVERVIEW
8 Sistema today
10 Investment porolio
12 Key highlights
14 Awards & recognition
4
165 CORPORATE
GOVERNANCE
166 Corporate governance
system
186 Remuneration policy
188 Risk management
6
215 AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
2
17 PERFORMANCE
OFTHECORPORATION
18 Strategy and governance
model
30 Key events of 2021 and aer
thereporting date
40 Financial overview
44 Securities and share capital
CONTENT
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
54 SISTEMA PJSFC CONTENTSISTEMA PJSFC

COMPANY
OVERVIEW
SISTEMA TODAY ..............................................................
8
INVESTMENT PORTFOLIO ...................................................
10
KEY HIGHLIGHTS ..............................................................
12
AWARDS & RECOGNITION ...................................................
14
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
76

SISTEMA TODAY
1. 4
SOCIAL INVESTMENTS
BN
RUB
251.9
ADJUSTED OIBDA
BN
RUB
12.1
LOW ESG RISK
Sustainalytics
BB
MSCI ESG
TOP
5
INTERNATIONAL
INVESTMENT
COMPANIES
ESG Reporting
Award
50
INDEPENDENT
DIRECTORS
%
BB
FITCH CREDIT
RATING
1
BB
S&P CREDIT
RATING
1
RUAA
RAEX CREDIT
RATING
1
802.4
REVENUE
BN
RUB
AFKS
MOEX
SSA
LSE
1.8
ASSETS
TN
RUB
134.1
HEADCOUNT
THSD
PEOPLE
The Corporation’s shares trade on Moscow Exchange
(ticker:AFKS) and on London Stock Exchange in the form
ofglobal depositary receipts (ticker: SSA). One GDR
represents 20ordinary shares.
2020 2021
1 As of the end of 2021. 1 As of the end of 2021.
SISTEMA'S STRATEGIC GOAL
Is to ensure long-term growth of shareholder value
byboosting return on investments in the existing assets
and reinvesting available cash in new investment
projects to diversify its porolio and increase return
oninvestments.
INVESTMENT
PORTFOLIO
Public assets
SISTEMA'S SUSTAINABILITY GOAL
Is to build competitive businesses with high added
value that meet the principles of social and
environmental responsibility and contribute to the
sustainable development of industries and regions of
operations and to the steady growth of socioeconomic
and technological potential, human capital, quality of
life and social well-being.
Sistema Public Joint Stock Financial Corporation
is Russia's largest public investment company
and one of the country's systemically important
companies. Founded in 1993, Sistema is today
represented across over 20 high-potential
sectors of the Russian economy, including
telecommunications, forestry, agriculture,
pharmaceuticals, healthcare, real estate and
e-commerce. The Corporation's investment
porolio is made up mostly of Russian companies
operating across Russia and in more than
25 other countries.
+16.0%
MTS
NYSE: MBT, MOEX: MTSS
OZON
NASDAQ and MOEX: OZON
SEGESHA GROUP
MOEX: SGZH
ETALON GROUP
LSE and MOEX: ETLN
› 20 SECTORS
› 25 COMPANIES
› 25 COUNTRIES
TOP
20
PUBLIC RUSSIAN COMPANIES
IN FORBES GLOBAL 2000RATING
TOP
25
LARGEST RUSSIAN COMPANIES
BY REVENUE RBC
0.6
CONTRIBUTION TO RUSSIA'S
GROSS DOMESTIC PRODUCT
%
Sustainability
management
COMPANY OVERVIEW SISTEMA TODAY SISTEMA.RU8
SISTEMA PJSFC / ANNUAL REPORT 2021
9

INVESTMENT
PORTFOLIO
62.2 %
FORESTRY INDUSTRY
Segezha Group
Largest vertically integrated
forestry holding in Russia
91.3 %
AGRICULTURE
Steppe
AgroHolding
Major agriculture holding
and one of Russia’s largest
land owners
49.9 %
TELECOMMUNICATIONS
MTS
1
Leading public
telecommunications
operator in Russia
31.8 %
ECOMMERCE
Ozon
2
Leading multi-category
online sales plaorm
inRussia
95.5 %
HEALTHCARE
Medsi
Russia’s
largest national
healthcare chain
91 %
UTILITIES
BPGC
One of Russia’s
largest power grid
companies
100 %
INFORMATION TECHNOLOGY
Sitronics Group
Leading vertically integrated
ICT holding in Russia
75.3 %
PHARMA
Binnopharm
Group
Leading Russian
pharmaceutical producer
100 %
HOSPITALITY
Cosmos
Hotel Group
One of the largest hotel
management companies
in the Russian market
100 %
COMMERCIAL PROPERTIES
Business
Nedvizhimost
ne of the largest real estate
owners in Moscow
29.8 %
REAL ESTATE DEVELOPMENT
Etalon Group
One of the Russia’s largest
public development and
construction companies
Venture capital funds
Sistema Venture Capital — 98%
Sistema Asia Fund — 66%
1 In March 2022, as part of the long-term incentive programme, Vyacheslav Nikolaev
acquired 19,983,816 ordinary shares of MTS owned by Bastion LLC, a wholly owned
subsidiary of MTS. With the transfer of shares to Mr Nikolaev, his stake in MTS increased
to above 1%. Sistema’s eective ownership stake in MTS decreased to 49.9%.
2 12.2 m shares were issued to be used in the Ozon’s management inventive
programme, considering exercise of all options under the programme, the
eective share of Sistema, including Sistema VC, would amount to 31.8%.
PUBLIC ASSETS
KEY NONPUBLIC ASSETS
OTHER CONSOLIDATED ASSETS
COMPANY OVERVIEW INVESTMENT PORTFOLIO SISTEMA.RU10 11
SISTEMA PJSFC / ANNUAL REPORT 2021

KEY HIGHLIGHTS
Group's peormance Corporate Centre's peormance
3
Revenue, RUB bn Dividends from assets, RUB bn
3 According to management accounts.
Selling, general and administrative
expenses(SG&A), RUB bn Monetisations, RUB bn
Adjusted OIBDA
1
, RUB bn Investments, RUB bnNet debt
2
, RUB bn Net debt, RUB bn
9.6 %
CAGR 20192021
+
39.3
AVERAGE 20172021
16.5 %
CAGR 20192021
+
0.4 %
CAGR 20172021
–
10.7 %
CAGR 20192021
+
35.1
AVERAGE 20172021
6.0 %
CAGR 20192021
+
32.8
AVERAGE 20172021
2017
2017
2017
2017
2018
2018
2018
2018
2019
2019
2019
2019
2020
2020
2020
2020
2021
2021
2021
2021
28.2
43.3
213.4
35.2
16.0
25.4
213.4
34.9
29.6
52.4
183.8
43.1
39.5
183.7
34.3
45.1
41.1
210.4
2019 2020 2021
224.0
236.3
251.9
2019 2020 2021
128.4
134.2
154.3
2019 2020 2021
580.9
627.0
788.5
33.7
1 In this Annual Report, adjusted OIBDA is used to assess the operational success of the Corporation and Sistema Group companies and as such do not include
one-o incomes or losses that are not related to business operations. The reconciliation of these indicators is provided in “Financial overview” section.
2 Consolidated net debt is defined as consolidated total debt less cash, cash equivalents and deposits in banks. Consolidated total debt is defined as total
borrowings plus finance lease. The total borrowings are defined as long-term and short-term borrowings.
2019 2020 2021
654.3
691.6
802.4
34.2
COMPANY OVERVIEW KEY HIGHLIGHTS SISTEMA.RU12 13
SISTEMA PJSFC / ANNUAL REPORT 2021

AWARDS & RECOGNITION
TOP 1000
GLOBALLY AND TOP 15 IN RUSSIA
BY TOTAL SHAREHOLDER RETURNS TSR
in Value Creators Ranking 2021
by Boston Consulting Group (BCG)
TOP 10
OF RUSSIA'S MOST
VALUABLE BRANDS
in Brand Finance Russia 50
TOP 30
ENVIRONMENTALLY FRIENDLY
COMPANIES IN RUSSIA
Forbes
TOP 10
RUSSIAN DEVELOPERS
BY REVENUE
RBC 500
TOP 50
AGRICULTURAL COMPANIES
OF RUSSIA
Expert
TOP 10
PRODUCERS OF NUTRITIONAL
SUPPLEMENTS IN RUSSIA BY
SALESVALUE
DSM Group
TOP 5
IN THE 2021 RANKING OF
ST.PETERSBURG FASTEST
GROWINGMEDICAL CENTRES
TOP 200
RUSSIAN EMPLOYERS AND
#1 IN THE IT AND INTERNET CATEGORY
HeadHunter's ranking
TOP 10
IN THE ESG RANKING
OF RUSSIAN COMPANIES
RAEX Europe
TOP 3
IN THE RANKING OF RUSSIA'S
TIMBER COMPANIES
Sbo-paper
URBAN
AWARDS 2021
Developer of the year
and digital developer
No. 1
RUSSIA'S MOST EFFICIENT
DAIRY FARMS
Soyuzmoloko
PHARMA COMPANY
OF THE YEAR 2021
Award from the Green cross
pharmacies association
PATIENTS'
CHOICE 2021
BEST CLINICS OF MOSCOW
TOP 15
PRIVATE COMPANIES &
TOP 10 RUSSIAN EMPLOYERS
in the Forbes ranking
SEGEZHA GROUP'S EUROPEAN PAPER
PACKAGING ASSETS WERE AWARDED
GOLD LEVEL
from the international
plaorm EcoVadis
EUROPEAN
PROPERTY AWARDS
nominations for residential development
and residential renovation
AGRICULTURAL INVESTOR 2021
Innovation of the year, Top manager of
the year, Socially responsible initiative
(during pandemic) and Reliable grain
supplier
TOP 10
BEST MOBILE BANKS
FOR DAILY BANKING
in mobile banking rank 2021
(Markswebb)
RUSSIA M&A AWARDS
BEST DEAL OF 2021
TOP 3
MOST VALUABLE INTERNET
COMPANIES IN RUSSIA
Forbes
TOP 5
FASTEST GROWING
PRIVATE RUSSIAN COMPANIES
Forbes
TOP 200
PRIVATE RUSSIAN
COMPANIES
Forbes
TOP 25
RUSSIAN COMPANIES
BYREVENUE
RBC 500
SISTEMA PUBLIC
JOINT STOCK
FINANCIAL
CORPORATION
TOP 20
PUBLIC RUSSIAN
COMPANIES
in Forbes Global 2000
TOP 20
RUSSIAN COMPANIES
BYREVENUE
in RAEX 600
TOP 20
COMMERCIAL REAL
ESTATE OWNERS
Forbes
CBONDS
AWARDS 2021
Issuer of the Year
SEGEZHA
GROUP'S IPO
best placement
in Russia (SPB Exchange)
No. 1
IN THE TIMBER INDUSTRY
INTHEESG RANKING OF RUSSIAN
COMPANIES
RAEX Europe
No. 1
ESG RANKING OF RUSSIAN
COMPANIES RAEX EUROPE
Agricultural sector
TOP 200
PRIVATE RUSSIAN
COMPANIES
Forbes
TOP 10
DEVELOPERS IN THE MASS
HOUSING CATEGORY
Forbes
TOP 5
RUSSIAN
LAND OWNERS
Forbes
TOP 10
VENOTONICS IN THE RUSSIAN
PHARMA MARKET
No. 1
RUSSIA'S TOP 20 PRIVATE CLINICS
AND #1 RUSSIA'S TOP 200 PRIVATE
MULTISPECIALTY CLINICS
Forbes and Vademec
MTS IS THE WORLD'S SECOND
STRONGEST TELECOM BRAND
and the only Russian telecom
brand in Brand Finance
Telecoms 150
TOP 10
PRODUCERS OF GENERICS
IN THE RUSSIAN MARKET
IQVIA
TOP 3
IN THE RANKING OF MULTISPECIALTY
CLINICS BY NUMBER OF DOCTORS
BusinesStat / RBC
COMPANY OVERVIEW AWARDS & RECOGNITION SISTEMA.RU14 15
SISTEMA PJSFC / ANNUAL REPORT 2021SISTEMA PJSFC / ANNUAL REPORT 2021

PERFORMANCE
OF THE
CORPORATION
STRATEGY AND GOVERNANCE MODEL
....................................
18
KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE
.................
30
FINANCIAL OVERVIEW
......................................................
40
SECURITIES AND SHARE CAPITAL
..........................................
44
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
1716

STRATEGY
AND GOVERNANCE MODEL
Mission
Strategic goals and development areas
LONGTERM GOALS FOCUS AREAS
01
Building and continuously developing
businesses worth over USD 1 billion
03
Creating value in assets through team
strengthening, strategic development,
business transformation, operational
improvements, equity structure
optimisation, digitalisation, etc
02
Embracing unique investment
opportunities in traditional
and new sectors
04
Continuous enhancement
of corporate governance
Sistema's mission is to build Russia's leading investment company
with diverse expertise and a strong track record, which will become
an investment plaorm for managing both its own and third-
party capital, while also providing access to unique investment
opportunities in the most attractive sectors and high-potential
technologies and fueling long-term growth in shareholder value.

Steady growth of the Corporation's
shareholder value

Maximising net asset value

Building profitable and growing
companies that are leaders in their
sectors

Paying dividends to the Corporation's
shareholders
Strategy
The Corporation's goals are matched
with the elements of business model,
which are inter-related
Our goals can be achieved
by answering 3 key questions
underpinning the Corporation's
strategy
PORTFOLIO
STRATEGY
How do we invest
in new projects?
How do we manage
our porolio?
How do we create
value in our Assets?
INVESTMENT
PROCESS
GOVERNANCE
MODEL
21
3
PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL SISTEMA.RU18
SISTEMA PJSFC / ANNUAL REPORT 2021
19

Porolio strategy:
current assets and new opportunities
Investments in existing assets: investments
in own porolio companies with potential to become
businesses worth over USD 1 bn:
The porolio strategy is based on classification of assets
depending on market appeal, the competitiveness of the team
and the company as a whole.
Depending on the final score,
there are four basic development
options for assets in Sistema's
porolio.
DEVELOP
MONETISE
INVEST
SELECTIVELY
OPTIMISE
The asset's position in the matrix determines shareholder decisions
for the asset: active investment, testing of hypotheses with selected
financing of projects, relaunching the asset's business model.
Investment
strategy:
investments in porolio
companies to increase their
competitiveness and market
share, entering adjacent
segments and launching
new products with
a synergistic eect
Investment
geography:
in accordance with the
approved strategy for
porolio companies
Industries and business
segments:
companies' industries and
adjacent sectors/segments
with a synergistic eect
Discounted payback
period (DPBP):
from 3 to 10 years
Sistema's strategy is based on the idea
of gradual movement of assets from
the le to the right side of the matrix
as assets become more mature and
grow in size.
As part of its strategy Sistema aims
to look for new points of growth that
may become the core of the company's
porolio in 5 years.
Idea and
implementation
MARKET
ATTRACTIVENESS
ASSET
COMPETITIVENESS
TEAM
Asset's position in relation
to the top 3 players and opportunity
for consolidation
Industry sustainability
in conditions of economic decline
Risks, barriers and challenges
of doing business
Market size
Existing competitive
advantages
Asset's financial stability
and a proven business model
COMPANY
Assessment of the team's
competences compared
to industry leaders
Confidence in business plan:
the target and actual returns
coinside
Areas
of development
Market attractiveness
Asset competitiveness
PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL SISTEMA.RU20 21
SISTEMA PJSFC / ANNUAL REPORT 2021

NEW INVESTMENTS: UNIQUE OPPORTUNITIES IN TRADITIONAL INDUSTRIES
NEW INVESTMENTS IN TECH SECTOR AND TECHNOLOGIES OF THE FUTURE
MATURE
UNDERVALUED
ASSETS
FASTGROWING
SEGMENTS
MINERAL RESOURCES
used in electronics,
batteries, conductors
TECHNOLOGIES
INVESTMENTS IN ASSETS
IN SPECIAL SITUATIONS
(distressed assets)
TECHNOLOGY ASSETS
GROWING
ASSETS
VC FUNDS
Investment strategy:
acquisition of substantial or controlling stakes in large assets in attractive
markets with a possibility of increasing equity value, getting a premium in
valuation and selling within 2-3 years.
Investment strategy:
Direct investments in large stakes in technology companies that do not meet the
requirements of investment theses of Sistema's own funds, with an opportunity
to create new fast-growing businesses, make a breakthrough in the development
of key technologies of the future and monetise them in 5-7 years.
Investment
strategy:
acquiring and consolidating
players in certain industries
or market segments,
enhancing the asset's
competitive advantages,
leveraging economies
of scale and entering new
market segments; exit in
4-5 years through a sale to
a strategic investor or IPO.
Investment
strategy:
investments by Sistema's
existing and new VC funds;
investment monetisation.
Mandatory engagement
of external investors as
financial partners (the share
of outside partners in new
funds is at least 50%).
Investment
geography:
mostly in Russia.
Investment
geography:
no restrictions.
Industries and business
segments:
sectors with large markets,
high growth or transformation
rates, and significant
potential for growing
eiciency, digitalisation,
import substitution or exports.
Sistema relies on its practical experience and
focuses on the following types of transactions
when entering new assets:
Our investment thesis: key criteria
for selecting new investment projects
and assets.
Rubbing out toxic investments
(alcohol, tobacco, casinos, etc)
Industries and business
segments:
e-commerce, internet of
things, artificial intelligence,
cloud and edge computing,
machine learning and neural
networks, autonomous
vehicles, robotics, augmented
and virtual reality (AR/VR),
blockchain, etc.
Investment process:
taking investment decisions
TRANSACTION AMOUNT
ESG CRITERIA
1
2
TARGET RETURNS
over 4–5 years
STAKE IN THE BUSINESS
25 % › 1 BN RUB ›
2× CASHONCASH › 30 % › IRR
Priority investments for companies
with ESG rating
Buy & build
strategic investments
in creating leaders
Smart deals
non-cash deals with
retained control
GR deals
monopoly,
goverment
contracts
Special situations
turning around distressed
companies
VC funds
high-risk investments
TYPE OF
TRANSACTION
Pharmaceuticals
CleanTech
Lithium
Rare earth metals
Hydrogen Power
HealthTech
FoodTech
Nickel
Biotechnology
AI
IoT
Blockchain
Graphite
5G
AR/VR
Robotics
Autonomous Vehicles
CyberTech
Quantum Computing
Silicon
Online Games
Cloud computing
PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL SISTEMA.RU22
SISTEMA PJSFC / ANNUAL REPORT 2021
23

Management model:
how the Corporation manages assets and creates value
Sistema has adopted a partnership
management model that allows the
Managing Partners to share the risks
and returns from investment activities
with the shareholders.
Investing in the development of existing
porolio assets in order to increase their
value is one of the key stages of Sistema's
value creation model.
The governance model is based
on the elements that are the same
for all the Group members:
1. Strategic planning
2. Finance: budget, monitoring, control
3. Approval of important projects
4. Corporate governance standards
5. HR management
ASSET MANAGEMENT PRINCIPLES
The key element of Sistema's
management model is the idea
of transformation and creation
of industry champions.
In the course
of transaction As part of the Budgeting and Strategic Planning Cycles of the Corporation
At the transaction stage, the investment idea has a planning horizon
of more than 5 years. The Corporation has an eicient process that makes
it possible to implement the original investment idea by developing the
asset's strategy for 3-5 years, making a road map with an action plan
for 2 years and setting budget and financial targets for the calendar year.
Corporate centre
Assets
Sistema has adopted a partnership management model that allows
the Managing Partners to share the risks and returns from investment
activities with the shareholders. Managing Partners are responsible
for implementing the investment strategies of porolio companies.
In most cases, Managing Partners chair the boards of directors
of porolio companies and are in charge of forming the board and
organising its work. They also bear responsibility for the recruitment
and appointment of top management.
The Corporation's functions and departments actively advise respective
departments of porolio companies as part of forming development
strategies, preparing key investment projects for assets, raising debt
and equity financing, developing long-term incentive plans, forming
optimum legal and tax structures, implementing corporate governance
standards and improving security systems, thereby contributing
to long-term value creation.
Goal-settong horizon
INVESMENT IDEA /
PROJECT
STRATEGY
OF THE ASSET
ROAD
MAP
BUDGET, MONITORING
AND CONTROL
PRESIDENT
PRESIDENT
TEAM PORTFOLIO
MANAGEMENT
FUNCTIONS
BOARD OF DIRECTORS
+ committees
BOARD
OF DIRECTORS
+ committees
MANAGEMENT BOARD
MANAGEMENT BOARD
SUBDIVISIONS
PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL SISTEMA.RU24 25
SISTEMA PJSFC / ANNUAL REPORT 2021

Value creation
in assets
ompetencies
A Board of Directors is formed at porolio
companies, which must include independent
directors with recognised industry and
functional expertise. The boards of directors
support the management of porolio
companies in making key decisions on
the areas of development and oversee
the quality of execution and the results
ofdecisions made.
anagement
Forming a best-in-class, eicient
management team, establishing
strategic goals and an incentive system
for it, and determining a strategic
development plan, eicient operating
management model and required
resources.
Planning and control
Introducing processes of strategic,
financial and operational planning
and control and best international
practices of investment and project
management.
Innovations
Identifying new technologies and
advanced work tools to increase
profitability and accelerate growth at
the company. Developing innovative
products and services, improving their
quality, entering new markets and
attracting new customers.
Peormance assessment
Continuously and comprehensively
assessing the company's peormance and
contributions of its board of directors and
management team. This process ensures
that the asset is managed in accordance
with the Corporation's strategic goals
andprinciples.
Implemented by assets
must have
Assistants provided to assets
if necessary

Management Incentive
System
HR

Organisational structure +
standard agreements

Budgeting cycle
FINANCE

Financial planning
and control

Strategic cycle
STRATEGY

Investment process

Corporate governamce
system
CORPORATE GOVERNANCE

Board of Directors

Management dashboard
IT

If neccessary
GR

Risk management
Management system, including governence and policies
SUSTAINABILITY

Dislclosure
Personnel recruitment
Debt porolio, taxes, reporting
Investmen analysis
Support on legal matters,
support for M&A deals
IT audit, development of IT strategy,
icreasing digitilisation, etc.
Contracts, organisation of meetings
with federal and local goverments
Self-assessment
Sustainability strategy development
SISTEMA.RU 27
SISTEMA PJSFC / ANNUAL REPORT 2021
26 PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL

Responsible investment and ESG principles
Responsible investment is an integral
element of Sistema's investment strategy
and long-term success. It means that
at all stages of its investment activities
and asset ownership the Corporation
takes into account not only financial and
operating aspects but also significant
environmental, social and governance
(ESG ) factors to create long-term value
for shareholders and other stakeholders.
In 2020, the Board of Directors approved
updated investment criteria as part of
the Corporation's investment strategy.
Among other things, the investment
process for the first time involved the
consideration of ESG factors reflecting
the Corporation's guiding principles
on responsible business conduct and
international ESG standards, which
solidified Sistema's strategic approach
to responsible investment.
At the porolio building stage, Sistema
excludes “sin stocks”, which is consistent
with the Corporation's established
investment culture, and also considers
the ESG profiles of acquisition targets in
other industries when making investment
decisions.
ENVIRONMENTAL SOCIAL GOVERNANCE
E S G
To learn more about responsible
investment and sustainability
management, please refer
to the section “Sustainability
management”.
Sistema’s indirect ESG impact through its
porolio assets is more significant than
the direct one. Therefore, at the stage
of asset management the Corporation
makes eorts to promote the following
principles in Sistema Group companies
through their governance bodies using
established corporate procedures:

Compliance with high standards of
corporate governance and principles
of responsible business conduct

Improvement of their sustainability
management approaches and
peormance indicators

Minimisation of negative and
maximisation of positive impact
through innovation, services, products
and investments in local communities
12.1
LOW ESG RISK
Sustainalytics
1.4
BN
RUB
DIRECT SOCIAL INVESTMENTS
OF THE GROUP
B
MANAGEMENT LEVEL
CDP
PERFORMANCE OF THE CORPORATION STRATEGY AND GOVERNANCE MODEL SISTEMA.RU28 29
SISTEMA PJSFC / ANNUAL REPORT 2021

KEY EVENTS OF 2021
AND AFTER THE
REPORTING DATE
Corporation
CORPORATE GOVERNANCE
MONETISATIONS
AND INVESTMENTS
DIVIDENDS
AND SHAREHOLDER RETURN
MONETISATIONS
AND INVESTMENTS
In May 2021, the Board of Directors approved a new dividend policy, which
stipulates that the Corporation will aim to pay annual dividends in the amount
of at least RUB 0.31 per share in 2021, RUB 0.41 per share in 2022 and RUB 0.52
per share in 2023. Starting from 2022, in addition to the basic dividend amount,
the Board of Directors recommends distributing in dividends to shareholders
10% of absolute increase of adjusted OIBDA for the previous year, if it grew
by more than 5% and Net Debt/OIBDA at the end of the previous year
did not exceed 3.0×.
Dividend payout for 2020
In August 2021, in accordance with the approved dividend policy, Sistema paid
dividends for 2020 in the amount of RUB 2,991.5 m, or RUB 0.31 per ordinary share.
Development of the pharma business
In February 2021, Sistema and its financial partner VTB contributed 56.2%
of shares in OJSC Sintez to Binnopharm Group as part of the project to create
a combined pharmaceutical holding company. Sistema, VTB, and a consortium
of investors comprising the Russian Direct Investment Fund (RDIF), the Russia-
China Investment Fund (RCIF) established by the RDIF and China Investment
Corporation, and leading Middle Eastern funds contributed an 85.6% stake
in JSC Alium to the equity of Binnopharm Group.
In March 2021, Sistema acquired 32.4% of Sintez from JSC National
Immunobiological Company controlled by Rostec and in May 2021, it contributed
this stake to the equity of Binnopharm Group.
In June 2021, Sistema sold 11.2% in Ristango Holding Limited, the owner of 100%
of Binnopharm Group, to Nevsky Property Investments Limited, controlled by VTB
Capital, for RUB 7 bn. As a result, the eective stake of Sistema and VTB Group
in Binnopharm Group amounted to 75.3%.
In July and December 2021, Sistema exercised its right and bought the stakes
in Sinocom Investments Limited and Ristango Holding Limited held by VTB
for a total of RUB 15.76 bn. Aer the deal, Sistema's eective equity holding in
Binnopharm Group increased to 75.3%.
The share of the consortium of investors including the Russian Direct Investment
Fund (RDIF), the Russia-China Investment Fund (established by the RDIF and
China Investment Corporation), and major Middle Eastern funds equaled 12.5%,
and VTB Capital held 11.2% through Nevsky Property Investments Limited. The
remaining 1% of shares in Ristango Holding Limited is owned by a minority
shareholder (an individual).
IPO Segezha Group
In April 2021, Segezha Group held an initial public oering on the Moscow
Exchange. The company raised RUB 30 bn to finance its investment activities
and optimise debt. Aer the IPO, Segezha Group's capitalisation amounted
to RUB 125.5 bn; Sistema's share in Segezha Group decreased to 72.0%
1
,
with the share of free float being 23.9%.
Sale of a minority stake in Segezha Group
In December 2021, Sistema sold an 8.7% stake in Segezha Group
toBonumCapital for USD 150m. Aer the deal, the Corporation's shareholding
inSegezhaGroup decreased to 62.2%.
Buyback programme
In June 2021, Sistema announced an increase in the volume of its share
buyback programme launched on 17 September 2019 to RUB 7.0 bn, with the
programme extended until 17 September 2022. In January 2022, the Corporation
completed the programme, having bought a total of 315,195,371 ordinary shares.
Acquisition of Nearmedic Group
In September 2021, New Investment Holding JSC, jointly controlled by Sistema
and Sberbank, acquired Nearmedic Group for RUB 1. The net debt of the group,
which operates in the pharma and healthcare sectors, on the closing date
was RUB 5.9 bn.
Sistema SmartTech
In April 2021 , Sistema SmartTech invested RUB 200m in Urent, which develops
one of the largest scooter-sharing services in Russia.
In May 2021, Sistema SmartTech invested USD 300,000 in The Mashina, which
develops a car subscription plaorm.
In July 2021, Sistema SmartTech closed two deals: (1) it invested RUB 200m
in Checkbox, a last-mile delivery plaorm; and (2) invested RUB 130m in LLC
Profilum, a career guidance service for school-aged children.
In December 2021, Sistema SmartTech invested in LLC Directual, a developer
of an eponymous low-code plaorm. The money will go towards plaorm
enhancements and expansion into new markets.
1 Taking into account the partial exercise of the
over-allotment option as part of the stabilisation
procedure post-IPO and exercise of the option
of Segezha Group's president M. Shamolin.
PERFORMANCE OF THE CORPORATION KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE SISTEMA.RU30 31
SISTEMA PJSFC / ANNUAL REPORT 2021

STRENGTHENING
OF FINANCIAL POSITION
ENHANCING SUSTAINABILITY
Sistema SmartTech
In January 2022 Sistema, Sistema SmartTech invested RUB 50m in MyGig Invest
Ltd, a developer of a plaorm for finding one-time or regular side jobs. Sistema
SmartTech led the funding round for a total of RUB 120m, which also included
Altus Capital and shareholders of the Brayne family oice.
Sistema Asia Fund
In March 2021, Sistema Asia Fund took part in the series D investment round
of Uniphore, a global leader in automation of speech interaction. As a result,
Uniphore raised USD 140m from Sistema Asia Fund and other investors from
Europe and the Middle East.
In May 2021, Sistema Asia Fund and other investors participated in the series
B investment round of ANSR, which oers leading international companies
services of accelerating their digital transformation on the basis of global
service centres. The round size totaled USD 15 m.
In July 2021, Sistema Asia Fund and other investors participated in the series
C investment round of the startup HealthifyMe, the developer of India's most
popular wellness and fitness application, to a total amount of USD 75 m.
In September 2021, Sistema Asia Fund and other investors participated in the
series C investment round of Exotel, the developer of India's most popular CPaaS
plaorm, to a total amount of USD 35 m.
In February 2022, Sistema Asia Fund participated in the series B investment
round of Airmeet, a comprehensive new generation plaorm for virtual
interactions between companies and their customers or other audiences. As a
result, Airmeet raised USD 35 m from Sistema Asia Fund and other investors.
Sistema Venture Capital
In February 2021, Sistema Venture Capital sold its stake in the agricultural startup
Observe Technologies, in which it had invested in 2017. The returns on investment
exceeded 300%.
In August 2021, Sistema Venture Capital exited Datasine, a Russian-British service
for personalisation of marketing campaigns.
In February 2022, Sistema Venture Capital exited VisionLabs, one of the global
leaders in computer vision and machine learning.
Comfortable debt levels
As of 31 December 2021, the Corporate Centre's net financial liabilities equaled
RUB 210.4 bn (+14.5% YoY). The Corporate Centre's entire debt is denominated
in Russian roubles.
Active participation in debt capital markets
Sistema was active in the debt capital markets on the back of a significant
demand for its debt securities in 2021.
In the reporting year, the Corporation issued six bond series to a total amount
of RUB 62.5 bn (001P-18, coupon rate 6.90%; 001P-19, coupon rate 7.35%; 001P-20,
coupon rate 8.20%; 001P-21, coupon rate 8.40%, 001P-22, coupon rate 8.20%,
001P-23, coupon rate 9.95%) and also completed a secondary placement of
series 001P-07 registration-exempt bonds in the amount of RUB 2.8 bn at 99.55%
of the nominal price.
Upgrade in credit ratings
In May 2021, S&P confirmed Sistema's credit rating at BB, with outlook
upgraded to "positive."
In June 2021, Fitch upgraded Sistema's credit rating from BB- to BB,
with a "stable" outlook.
In September 2021, Expert RA upgraded the outlook for the Corporation's credit
rating from "stable" to "positive", with the rating confirmed at ruAA-.
In May 2021, Sistema's Board of Directors approved the Environmental Policy
and the Human Rights Policy of Sistema. These documents complement the ESG
management system and elaborate the provisions of Sistema's Sustainability
Policy. They set an example for porolio companies in part related to enhancing
the eiciency of environmental protection management and human rights
protection, thus reducing the investment porolio's exposure to environmental
and social risks.
In October 2021, Sistema was named among the three leaders of the ESG ranking
of public financial companies compiled by the National Rating Agency (NRA).
The ranking includes 30 leading banks, financial and infrastructure institutions
and insurance companies; Sistema was put in the first group, which means an
advanced level of introduction of sustainability principles in the core business.
In December 2021, Sistema joined the National ESG Alliance. The Alliance
was designed as a permanent plaorm for dialogue and engagement of all
stakeholders, exchange of knowledge and experience between various business
segments, the government and society, and development and promotion of new
ESG norms and standards.
MONETISATIONS
AND INVESTMENTS
PERFORMANCE OF THE CORPORATION KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE SISTEMA.RU32 33
SISTEMA PJSFC / ANNUAL REPORT 2021

Dividend payouts
In August 2021, MTS completed payment of dividends for 2020 in the amount
of RUB 26.51 per ordinary MTS share (RUB 53.02 per ADR). In November 2021, MTS
completed payment of dividends for 1H 2021 in the amount of RUB 10.55 per
ordinary share (RUB 21.1 per ADR).
Buyback programme
In July 2021, MTS completed its share buyback programme announced in
March, having bought 45,401,921 ordinary shares (including American depositary
receipts) to a total amount of about RUB 15 bn, which equals 2.27%
of outstanding MTS shares.
Spin-o of infrastructure and tower assets
In September 2021, the extraordinary general meeting of shareholders approved
the company's reorganisation through spin-o of tower infrastructure in a 100%
subsidiary, LLC BIK, and a part of active and digital infrastructure in another
100% subsidiary, JSC MVS.
Consolidation of 100% of Sistema Capital
In September 2021, MTS completed acquisition of 70% in LLC Sistema Capital
MC, thus increasing its stake in the management company to 100%. The deal will
enable MTS to accelerate the launch of new products for retail investors and
HNWI and will expand the range of financial services oered by the company.
Acquisition of VisionLabs
In February 2022 , MTS acquired VisionLabs B.V., a global leader in computer
vision and machine learning products, for RUB 6.5 bn. VisionLabs soware
is used in more than 1.7 m cameras worldwide. VisionLabs’ revenue in 2020
exceeded RUB 1.1 bn.
Upgrade in credit ratings
In February 2021, NCR set MTS's credit rating at AAA.ru (the highest score on the
agency's scale) with a "stable" outlook.
In March 2021, Expert RA upgraded MTS Bank's credit rating to ruA- with a "stable"
outlook, considering the bank's growing role in the MTS digital ecosystem.
In June 2021, Fitch confirmed MTS's ratings, changing the outlook from "stable"
to "positive."
Enhancing sustainability
In March 2021, MTS announced it was establishing an ESG Committee
(Committee for Corporate Governance, Environmental and Social Responsibility)
of the Board of Directors.
In March 2021, MTS placed social registration-exempt bonds of series 001P-18
to a total amount of RUB 4.5 bn on the Moscow Exchange. The funds raised will
be used to finance the operator's project to provide communication services
(internet access) to about 5,000 socially important facilities in eight regions
of Russia.
Infrastructure development and foreign expansion
In 1Q 2021, fulfilment centres were opened in Novosibirsk and Khabarovsk. The
fulfilment centre in Khabarovsk will help Ozon with pursuing its strategic goal of
expansion in the Far East.
In May 2021, Ozon announced start of foreign expansion of its logistical
infrastructure and operations. The company is upscaling business in Belarus,
where it opened a logistics centre in October 2021. In addition, as part of its
expansion into the CIS countries, the company signed partner agreements with
national postal operators of Belarus and Kazakhstan, ensuring countrywide
coverage by last mile deliveries.
Development of ecosystem of financial services
In May 2021, Ozon acquired 100% of Oney Bank from Sovcombank for the
purpose of integrating it into its fintech vertical. The bank licence will give Ozon
additional flexibility in supporting existing and launching new financial products
for customers and sellers, and will also help it to optimise acquiring expenses.
In May 2021, the Russian Central Bank included Ozon Credit in the register
of microfinancial organisations. Ozon Credit is expected to become a full
participant of Ozon.Invest, a lending plaorm for sellers, which entrepreneurs
use to finance their business on the marketplace. As of 31 December 2021, about
2 m Ozon Cards were issued.
Development of express deliveries
As the popularity of express deliveries grew, Ozon Express continued its regional
expansion in 2021. Dark stores emerged in 10 Russian regions. In October, the
service launched its own deli production, expanding the range of its private
labels with ready-to-eat food.
Raising funds for development
In February 2021, Ozon placed convertible bonds for USD 750m. The funds will
be used for organic growth, expansion into new business verticals and general
corporate purposes.
Porolio assets
PERFORMANCE OF THE CORPORATION KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE SISTEMA.RU34 35
SISTEMA PJSFC / ANNUAL REPORT 2021

Dividend payouts
In April 2021, the company approved a dividend policy, which envisages payout
of up to RUB 5.5 bn per year in 2021-2023 and up to 100% of free cash flow starting
from 2024. It also envisages a possible increase of the payout subject to market
stability and a safety margin in terms of debt.
In January 2022, Segezha Group completed payment of interim dividends
for 9M 2021 in the amount of RUB 6.6 bn or RUB 0.42 per share.
Consolidation and development of production facilities
In February 2021, Russia's first CLT plant with an annual capacity of 50,000 cu m
was commissioned in Sokol, the Vologda region.
In September 2021, Segezha Group completed consolidation of JSC
Novoyeniseisky TCC (NTCC). Following the acquisition of NTCC, Segezha Group's
allowable cut grew by 2.2 m cu m, while sawn timber production capacity
increased by 30% per annum.
In December 2021, Segezha Group completed acquisition of LLC Inter Forest
Rus (IFR) for USD 515 m. IFR comprises 24 timber assets in the Krasnoyarsk
and Irkutsk regions and significant forest resources. The transaction doubled
Segezha Group's allowable cut to 23.6 m cu m, making it one of the world's
biggest forest users.
ESG progress
In March 2021, Segezha Group joined the UN Global Compact, which unites
over 16,000 organisations from more than 160 countries whose strategies meet
ESG criteria.
In April 2021, the company's Board of Directors approved its sustainability
strategy and policy till 2025. The strategy is focused on four key areas: innovative
forest business, comfortable living environment in the forest regions of Russia,
climate-oriented forest management and production and a responsible supply
chain in the forest industry.
In August 2021, Segezha Group received its first international ESG rating
from Sustainalytics, a leading rating agency in the sphere. The agency
assessed the company's risk level as average (21.4, where 0 is the best result),
which corresponds to the first quartile for companies in the Paper and Forest
Industry sector.
Dividend payouts
In December 2021 a new dividend policy was approved. Etalon Group intends
to pay dividends in the amount of 40%-70% of net income under IFRS before
purchase price allocation (PPA). Payments will be made once a year aer
release of the financial statements according to IFRS. In order to improve
transparency, the Board of Directors will issue its recommendation on dividends
on or before 31 May, and payments will be made on or before 31 December
of the year following the reporting period.
In December 2021, Etalon Group completed payment of final dividends for 2020
in the amount of RUB 3.6 bn or RUB 9.39 per share (global depositary receipt),
which corresponds to 61% of net income before purchase price allocation.
Regional expansion and porolio growth
In 2021, Etalon Group grew its porolio by acquiring new projects in St Petersburg,
Moscow and other regions: Novosibirsk, Omsk, Tyumen and Yekaterinburg. The
total sellable area of the acquired projects is 3.6 m sq m.
Raising capita
In May 2021, Etalon Group raised over USD 150m in a secondary public oering
(SPO). The company placed almost 88.5 m ordinary shares, including shares in
form of GDRs, which represent 30% of its authorised capital, at a price of USD
1.7 per share.
Credit rating awarded
In September 2021, Expert RA awarded Binnopharm Group a credit rating
at ruA with a "stable" outlook.
First-time bond issue
In November 2021, the company placed its first issue of registration-exempt
bonds to the amount of RUB 3 bn with a coupon rate of 9.90% and a put option
in 2 years. The funds will be used to carry out investment projects and refinance
the existing debt porolio.
Start of international expansion
In December 2021, Binnopharm Group registered its oicial representative
oice in Kazakhstan and opened oices in five other CIS countries – Belarus,
Azerbaijan, Moldova, Armenia and Uzbekistan. This will enable the company
to double its export revenue in 2024 and will be the first step in building
its international infrastructure.
Extension of product porolio
In January 2022, Binnopharm Group and Dr. Reddy's signed an agreement
on acquisition by Binnopharm Group of two antibacterial drugs from Dr. Reddy's
in Russia and the CIS.
PERFORMANCE OF THE CORPORATION KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE SISTEMA.RU36 37
SISTEMA PJSFC / ANNUAL REPORT 2021

Expansion of the healthcare chain
In 2021, Medsi continued developing its chain in the Moscow region, opening
a clinicodiagnostic centre in Shchyolkovo and 5 clinics of the local format.
Two family clinics were opened in Moscow under a franchise model. As part
of its regional development strategy, Medsi opened the first clinic in the South
federal district (in Rostov-on-Don) and a third clinic in St Petersburg.
In November 2021, Medsi opened its own lab chain, SmartLab, with an area
of over 2,000 sq m and an annual capacity of over 20m tests on the basis
of the clinical hospital in Otradnoye. Total investments in the project exceeded
RUB 400m.
In November 2021, Medsi inaugurated a children's hospital (with an area of over
4,000 sq m) on the basis of the clinical hospital in Otradnoye. Total investments
in the project exceeded RUB 1 bn. The children's department is based on the
concept of 360 degrees medicine, which means that outpatient and in-patient
care, rehabilitation and home care are oered at one medical establishment.
In December 2021, Medsi opened a multi-specialty medical centre
in the Michurinsky avenue with a total area of 33,475 sq m. It comprises
a clinicodiagnostic centre for adults and children, a day hospital, an in-patient
facility and a centre of high-tech surgery. Total investment in the project
exceeded RUB 8 bn.
In January 2022, Medsi closed the transaction for acquisition of 100%
in the ProMedicina chain in Ufa and the Dialine chain in Volgograd from
the owners of the National Healthcare Chain. Medsi acquired 31 clinics
(with an aggregate area of 22,585 sq m), becoming a leading healthcare
operator in the economically attractive Volgograd and Ufa.
Development of the telemedicine app SmartMed
The number of installations of the mobile app SmartMed grew by 53,600
year-on-year to 376,000; the number of active users grew by 72.3% year-on-year
to 528,000; the number of appointments, including for instrumental and lab
diagnostics, grew 3.1-fold to 2.5 m.
Expansion of land assets
As of the end of 2021, Steppe AgroHolding's land assets totaled 578,000 ha,
making it one of Russia's top 6 land owners. The company gradually increases its
land holdings by consolidating neighbouring assets.
Record-high harvest and exports
In August 2021, Steppe AgroHolding completed harvesting of early grains and
grain legumes (wheat, barley and peas). Gross wheat harvest surged by 50%
year-on-year to unprecedented 970,000 t.
In the first half of the 2021/2022 farming season (July-December), Steppe
AgroHolding exported 200,000 t of niche crops, which was an absolute record
among Russian exporters of niche produce. Steppe is the absolute market
leader in pea, mustard, and chickpea exports.
Acquisition of assets
In July 2021, Steppe AgroHolding acquired 100% of the PIR Group holding
company, Russia's leading producer of pre-packaged cheese and a major
distributor of cheese, dairy products and plant-based alternatives.
ESG progress
Steppe AgroHolding was included in the ESG ranking RAEX Europe. The ranking
has been published since 2018 and is updated monthly. Steppe AgroHolding
was the second agricultural company to be added to the list and was ranked
54th. Before that, the only agricultural company in the ranking was Rusagro,
ranked 58th.
PERFORMANCE OF THE CORPORATION KEY EVENTS OF 2021 AND AFTER THE REPORTING DATE SISTEMA.RU38 39
SISTEMA PJSFC / ANNUAL REPORT 2021

FINANCIAL
OVERVIEW 2021
In 2021, Sistema’s consolidated revenue increased by 16.0% year-on-year to
RUB 802.4 bn, driven by revenue growth at key assets: at MTS, thanks to higher
consumption of telecoms services and internet traic, increased consumption
of ecosystem services and higher sales of handsets and accessories; at Segezha
Group, on the back of an increase in production volumes and positive dynamics
in prices for key products; at Steppe AgroHolding, thanks to an increased
gross harvest in the Field Crops segment and increased milk production in the
Dairy segment, as well as the successful development of agrotrading and the
development of new business lines. The consolidation of Binnopharm Group’s
results in Sistema’s financial statements from 25 June 2021 also had an impact
on the Corporation’s revenue.
The Group’s adjusted OIBDA increased by 6.6% year-on-year to RUB 251.9 bn
in 2021 mainly as a result of higher adjusted OIBDA at subsidiaries: at MTS,
partly as a result of higher demand for financial services, the recovery in the
entertainment industry and changes to the product porolio; at Segezha Group,
due to an increase in prices across all of the Group’s product types, and also
due to increases in the eiciency of Segezha Group’s own logging operations
and overall productivity; at Steppe AgroHolding, on the back of improved
operational eiciency and higher crop yields, upward price trends for the sale
of agricultural products, an increase in the number of high-yield dairy cattle and
an increase in gross milk yield, as well as the development of new business lines.
Group SG&A costs increased by 15.0% year-on-year in 2021, mainly on the back
of an increase in SG&A at MTS and Segezha Group, as well as the consolidation
of Binnopharm Group’s results. SG&A at MTS increased as a result of accruals
under the updated options programme for management and increased
advertising expenses to promote ecosystem products. SG&A at Segezha Group
increased primarily driven by bonus payments to management triggered by the
company’s IPO and the costs associated with conducting M&A transactions.
Group capex increased by 30.8% to RUB 167.2 bn in 2021 as a result of investments
by key assets in promising new business lines and in improving eiciency:
at MTS, in network development with a focus on expanding 4G capacity,
as well as in new business areas in its digital ecosystem; at Segezha Group,
in the modernisation of the Segezha and Sokol PPMs, the expansion of the
Vyatka Plywood Mill, the construction of a boiler and pellet plant in Sokol as well
as the modernisation of the Onega woodworking plant; at Steppe AgroHolding,
in the construction and modernisation of dairy farms and processing facilities,
acquisitions of agricultural machinery and the development of logistics
infrastructure.
The Corporate Centre’s financial liabilities increased by 20.5% year-on-year
due to the issue of RUB-denominated bonds. Cash position amounted
to RUB 19 bn. As of 31 December 2021, RUB-denominated liabilities accounted
for 100% of the Corporate Centre’s financial liabilities. Bonds accounted
for 82% of the Corporate Centre’s debt as of the end of 4Q 2021, up from 66%
at the end of 4Q 2020. The weighted average rate on bonds in the debt
porolio was 7.8% at the end of 2021.
1 Hereinaer, adjusted OIBDA and adjusted net profit are non IFRS indicators used
to evaluate financial peormance of the Corporation and Sistema Group companies
and represent underlying financial measures adjusted for a number of one-o gains
and losses that are not related to business operations. The reconciliation of these
indicators is provided in “Alternative peormance measures” section below.
2 Based on management accounts.
3 Including the total volume of borrowings
with the exception of cash and cash
equivalents at the Corporate Centre level.
4 RUB bond series 001-01/06/09/10 with a put option in 2022; series 001-04/11/14/16/18 with
a put option in 2023; series 001-05/08/12/13/15 with a put option in 2024; series 001P-07/17/19
with a put option in 2025; series 001P-20/21/22/23 with put option in 2026.
DEBT PORTFOLIO OVERVIEW
The Corporate Centre’s financial liabilities , RUB bn
Revenue, RUB bn
Adjusted OIBDA, RUB bn
Net profit, RUB bn
Schedule for repayment of financial obligations of the Corporate Centre , RUB bn
Structural analysis of debt
porolio, RUB bn
31 Dec
2020
30 Sep
2021
31 Dec
2021
20262025202420232022
190.4
65.5 –32.7
17.0 –10.8
223.2
229.4
44.1
36.0
44.1
34.8
28.9
6.4
22.7
3.4
9.1
42.4
66.8
38.238.0
Total debt
Net financial liabilities
3
New debt raised
Repayment of liabilities
RUB bonds
Bank loans and other
Local bonds with put option
4
Loans and other debt
183.7
208.6
210.4
As of December 31, 2021
+16%
+6.6%
+69.8%
802.4
2021
251.9
2021
17.3
2021
691.6
2020
236.3
2020
10.3
2020
2020 2021
2020 2021
2020 2021
RUB m  2021 2020 CHANGE, %
Revenue 802,398 691,626 16.0%
OIBDA 278,128 229,896 21.0%
Adjusted OIBDA 251,927 236,340 6.6%
Operating income 143,968 109,405 31.6%
Net profit attributable to Sistema 17,344 10,217 69.8%
Adjusted net profit /(loss)
attributable to Sistema
(8,895) 15,998 −
229.4
RUB BN
82%
18%
PERFORMANCE OF THE CORPORATION FINANCIAL OVERVIEW 2021 SISTEMA.RU40 41
SISTEMA PJSFC / ANNUAL REPORT 2021

ALTERNATIVE PERFORMANCE MEASURES
Operating Income Before
Depreciation and Amortisation
(OIBDA) and OIBDA margin.
Operating Income Before
Depreciation and Amortisation
(OIBDA) and OIBDA margin.
Adjusted OIBDA, operating income
and profit attributable to Sistema
shareholders.
OIBDA represents operating income before depreciation and amortisation.
OIBDA margin is defined as OIBDA as a percentage of our net revenues.
Our OIBDA may not be similar to the OIBDA measures of other companies;
is not a measurement under accounting principles generally accepted
under IFRS and should be considered in addition to, but not as a substitute
for, the information contained in our consolidated statement of profit
and loss.
We believe that OIBDA provides useful information to investors because
it is an indicator of the strength and peormance of our ongoing business
operations, including our ability to fund discretionary spending such
as capital expenditures, acquisitions of businesses and other investments
and our ability to incur and service debt.
While depreciation and amortization are considered operating costs
under IFRS, these expenses primarily represent the non-cash current
period allocation of costs associated with long-lived assets acquired
or constructed in prior periods. OIBDA is commonly used as one of the
bases for investors, analysts and credit rating agencies to evaluate
and compare the periodic and future operating peormance and value
of companies.
The following table presents a reconciliation of OIBDA to operating income
for the periods indicated:
Adjusted operating income and
adjusted OIBDA can be reconciled to our
consolidated statements of profit and
loss as follows:
Adjusted net profit attributable to
Sistema shareholders can be reconciled
to our consolidated statements of profit
and loss as follows:
The Company uses adjusted OIBDA, adjusted operating income and
adjusted profit/(loss) attributable to Sistema shareholders to evaluate
financial peormance of the Group. These represent underlying
financial measures adjusted for a number of one-o gains and losses.
We believe that adjusted measures provide investors with additional
useful information to measure our underlying financial peormance,
particularly from period to period, because these measures are exclusive
of certain one-o gains and losses.
RUB m 2021 2020
Operating income 143,967 109,404
Depreciation and amortisation (134,160) (120,492)
OIBDA 278,128 229,896
RUB m 2021 2020
Operating income 143,967 109,405
Accruals related to LTI program at porolio
companies (except for Segezha and MTS LTI)
534 577
Impairment of non-current assets (MTS) − 2,023
Revaluation of equity investment in the
consolidation of pharmaceutical assets
(25,327) −
Impairment of investment and other property − 2,789
Other non-recurring loss /(profit), net (1,409) 1,054
Adjusted operating income 117,767 115,848
Depreciation and amortisation 134,160 120,492
Adjusted OIBDA 251,927 236,340
RUB m 2021 2020
Net profit attributable to Sistema 17,343 10,217
Accruals related to LTI program at porolio
companies
496 551
Impairment of non-current assets (MTS) − 1,011
Revaluation of equity investment in the
consolidation of pharmaceutical assets
(25,327)
Impairment of investment and other property − 3,446
Other non-recurring loss /(profit), net (1,409) 773
Adjusted net profit /(loss) attributable to Sistema (8,895) 15,998
PERFORMANCE OF THE CORPORATION FINANCIAL OVERVIEW 2021 SISTEMA.RU42 43
SISTEMA PJSFC / ANNUAL REPORT 2021

SECURITIES
AND SHARE CAPITAL
SHAREHOLDERS 2021 2019 2020
V. Evtushenkov 59.2% 59.2% 59.2%
Ordinary shares in free float 26.1% 21.2% 25.0%
GDRs in free float 5.6% 10.3% 6.9%
Ordinary shares and GDRs held
by Sistema Group companies
2.6% 2.8% 1.4%
Ordinary shares and GDRs held
by members of the Board
of Directors and the Management
Board of Sistema
6.5% 6.5% 7.5%
Shareholding structure at the end of the calendar year, %
Quote Information
and transaction prices
Free float breakdown, RUB bn
Number of shareholders who are individuals, thousand people
Shareholding structure in 2021, %
Sistema has 9,650,000,000 ordinary shares outstanding with a nominal
value of RUB 0.09 each. Its authorised capital is RUB 868,500,000.
Sistema’s principal shareholder is its Board Chairman Vladimir
Evtushenkov, who owns 49.2%  of the Corporation’s equity.
Sistema conducted an initial public oering in 2005. Its shares are traded
on the London Stock Exchange in the form of global depositary receipts
(GDRs) under the ticker symbol “SSA.” One GDR represents 20 ordinary
shares. The Corporation’s ordinary shares are also listed on the Moscow
Exchange in the first listing level under the ticker symbol “AFKS.” The GDRs
traded on the London Stock Exchange represent about 5.6 % of Sistema’s
equity, and the shares traded on the Moscow Exchange, 26.1%. Shares
in free float constitute approximately 31.7% of the company’s equity.
Sistema is also the largest shareholder in four other public companies:
MTS PJSC (MTSS ticker symbol on the Moscow Exchange and MBT on the
New York Stock Exchange), Segezha Group PJSC (SGZH ticker symbol
on the Moscow Exchange), ETALON GROUP PLC (ETLN ticker symbol on the
Moscow Exchange and the London Stock Exchange) and Ozon Holdings
PLC (OZON ticker symbol on the Moscow Exchange and the NASDAQ).
The Moscow Exchange includes
Sistema’s share prices in the calculation
base of its key indices (MOEX Russia
and RTS), as well as its Broad Market
Index and the Small and Medium
Capitalisation Index.
The list of shareholders with non-zero balances on personal accounts
as of 31 December 2021 included:
224,174 individuals and 1,963 legal entities
Shareholders’ equity
Securities
868.5
BN
RUB
AUTHORISED CAPITAL
in 2021
V. Evtushenkov
Ordinary shares in free float
GDRs in free float
Ordinary shares and GDRs held
by Sistema Group companies
Ordinary shares and GDRs held
by members of the Board of Directors
and the Management Board of Sistema
Moscow Exchange (ordinary shares)
London Stock Exchange (GDRs)
TYPE OF SECURITIES SHARES ORDINARY GDR 1 GDR = 20 SHARES
Registration number 1-05-01669-A −
ISIN RU000A0DQZE3 US48122U2042
Ticker AFKS SSA
Primary trading plaorms Moscow Exchange London Stock Exchange
MOEX.COM
LONDONSTOCKEXCHANGE.COM
NYSE.COM
NASDAQ.COM
THE MOEX
RUSSIA INDEX
MOEX SMID
INDEX
MOEX BROAD
MARKET INDEX
THE RTS INDEX
MSCI RUSSIA
SMALL CAP
IMOEX
MCXSMMOEXBMI
RTSI
MSCI RUSSIA
2021
2020
2019
224
133
39
59.2%
26.1%
5.6%
2.6%
6.5%
5.6%
31.7%
Up-to-date information on Sistema’s
shareholding structure can be found
on the Company’s website.
2021
26.1%
1 In April 2022, Vladimir Evtushenkov has transferred a 10% stake in the share capital of Corporation to Sistema’s member of the Board
of Directors and Senior managing partner, Felix Evtushenkov. As a result of this transaction, Felix Evtushenkov’s stake in the share capital
of Sistema has increased to 15.2%, whereas Vladimir Evtushenkov’s shareholding in Sistema has decreased to 49.2%.
PERFORMANCE OF THE CORPORATION SECURITIES AND SHARE CAPITAL SISTEMA.RU44 45
SISTEMA PJSFC / ANNUAL REPORT 2021

Results of trading in shares and GDRs on stock exchanges
1
, % Share prices of Sistema (GDR) and its publicly traded assets
4
, %
Sistema’s average daily trading volume on the Moscow Exchange
6
, RUB m
In 2021, the price of Sistema ordinary shares and GDRs
decreased, respectively, by 18.1% and by 19.0%. The market
cap at the end of 2021 was USD 3.0 bn, down from
USD 3.7 bn at the end of 2020.
Despite the Group’s strong operating and financial
peormance, Sistema share price was under pressure
due to declining share prices of the key public porolio
companies (Ozon, MTS and Etalon Group).
Share prices of Sistema and its publicly traded assets
2
, %
INDICATOR 2021 2020 2019 2018 2017
Sistema shares on the Moscow Exchange
Year low, RUB 21.8 10.8 8.0 7.7 9.0
Year high, RUB 38.0 33.6 16.2 12.8 25.1
Year-end price, RUB 23.4 28.6 15.2 8.0 12.1
Year-end market cap, RUB bn 226.2 276.4 147.0 77.2 116.7
Sistema GDRs on the London Stock Exchange
Year low, USD 5.9 2.7 2.3 2.2 3.0
Year high, USD 10.0 8.7 5.0 4.5 10.0
Year-end price, USD 6.2 7.7 4.9 2.3 4.2
Year-end market cap, USD bn 3.0 3.7 2.4 1.1 2.0
Sistema shares MTS shares IMOEX Etalon shares OZON shares Segezha shares
60%
50%
40%
30%
20%
10%
0%
10%
20%
30%
40%
50%
1 Source: Bloomberg
2 Source: Bloomberg. The indicator is calculated as appreciation/deprecation of a share/index in relation to the value as of 31 December 2020.
3 Since 28 April 2021
4 Source: Bloomberg. The indicator is calculated as appreciation/deprecation of a share/index in relation to the value as of 31 December 2020.
5 VWAP of shares traded on Moscow Exchange for the last 60 trading days of 2020 was RUB 28,987, while their VWAP for the last 60 trading days of 2021 was RUB 25,556.
6 Source: Moscow Exchange
Sistema shares MTS shares IMOEX Etalon shares OZON shares
On the first trading day of 2021, the closing price of one
ordinary share on the Moscow Exchange was RUB 29.3.
Although the share price was growing in the first half
of the year, it ended the year in the red, mainly under the
influence of increased geopolitical risks. The highest share
price in 2021 was on 14 April at RUB 38.0; the lowest price
was recorded on 14 December at RUB 21.8. On the last
trading day of 2021, the closing price was RUB 23.4.
The liquidity of Sistema’s shares increased
year-on-year: the average daily trading volume
on the Moscow Exchange in monetary terms increased
from RUB 1,123 m in 2020 to RUB 1,164 m in 2021.
On the first trading day of 2021, the closing price of one
GDR on the LSE was USD 7.5. Although the price was
growing in the first half of the year, it ended the year
in the red, mainly under the influence of increased
geopolitical risks. The highest price in 2021 was on 14 April
at USD 10.0; the lowest price was recorded on 14 December
at USD 5.9. On the last trading day of 2021, the closing
price was USD 6.2 .
2017 2018 2019 2020 2021
297
158
245
1,123
1,146
JAN
2021
APR
2021
JUL
2021
OCT
2021
DEC
2021
60%
50%
40%
30%
20%
10%
0%
10%
20%
30%
40%
50%
DEC
2020
MAR
2021
JUL
2021
SEP
2021
DEC
2021
+
40.7 %
ADTV CAGR 2O172O21
PERFORMANCE OF THE CORPORATION SECURITIES AND SHARE CAPITAL SISTEMA.RU46 47
SISTEMA PJSFC / ANNUAL REPORT 2021

BANK BEGINNING OF 2021 END OF 2021
JPMorgan Chase & Co — Hold
Goldman Sachs Buy Buy
Raieisen Bank Buy Buy
Gazprombank Hold Buy
Sber CIB Buy Buy
Sova Capital Buy Buy
VTB Capital Buy Buy
Aton Hold Buy
Renaissance Capital Buy Buy
Wood & Company — Buy
BCS — Buy
1 Source: Bloomberg
2 Where analysts only give price targets for global depositary receipts (GDRs), the corresponding price of one GDR is multiplied by the USD/
RUB exchange rate on the relevant date and divided by 20 (the number of Sistema ordinary shares per one GDR).
3 USD/RUB exchange rate: 74.41
4 USD/RUB exchange rate: 74.68
5 Operating income before depreciation and amortisation.
6 All financial indicators used to determine the amount
of dividends are determined in accordance with the
Corporation's consolidated financial statements prepared in
accordance with International Financial Reporting Standards.
Dividends and share buyback programme
DIVIDEND POLICY
ANALYST RECOMMENDATIONS
1
DIVIDENDS DISTRIBUTED FOR THE FULL YEAR 2020
UNPAID DIVIDENDS
The full text of the new dividend policy
is available on the Company‘s website.
In May 2021, the Board of Directors approved a new Dividend Policy
that established the recommended dividend amount for 2021-2023.
In accordance with the Policy, the recommended dividend amount
is at least RUB 0.31 per ordinary share in 2021, at least RUB 0.41 per share
in 2022 and at least RUB 0.52 per share in 2023. Thus, based on the current
number of the Corporation’s ordinary shares, the recommended total
dividend payout is at least ~RUB 3 bn in 2021, ~RUB 4 bn in 2022 and
~RUB 5 bn in 2023.
Additionally, starting from 2022, the Policy also recommends increasing
dividend payments by an amount equal to 10% of the absolute increase
in adjusted OIBDA  for the last completed financial year, provided that
adjusted OIBDA grew by more than 5% in the last completed financial year
and the net debt /adjusted OIBDA ratio does not exceed ×3.
On 26 June 2021, the Annual General Meeting of shareholders of
Sistema resolved (minutes No 1-21) to pay dividends in the amount of
RUB2,991,500,000.00, or RUB 0.31 per ordinary share.
As of 31 December 2021, the total amount of dividends distributed
equaled RUB 2,990,719,017.93. Withholding tax on dividends distributed
to shareholders totaled RUB 40,203,566.00.
As of 31 December 2021, the total amount of unpaid dividends equaled
RUB2,214,075,392.23, including:

RUB 2,213,003,658.88 not paid on the basis of a written request from
a shareholder

RUB 1,071,733.35 not paid due to the lack of the necessary information
about the recipients of dividends to transfer the corresponding amounts
0.31 RUB
DIVIDEND PER SHARE
in 2021
78%
82%
22%
18%
Buy Hold
Buy Hold
22.8
AVERAGE TARGET
PRICE , RUB
46.5
AVERAGE TARGET
PRICE , RUB
13.5–30.5
TARGET PRICE
RANGE, RUB
30.9–61.2
TARGET PRICE
RANGE, RUB
9
NUMBER
OF ANALYSTS
11
NUMBER
OF ANALYSTS
01.01.2021
3
31.12.2021
4
PERFORMANCE OF THE CORPORATION SECURITIES AND SHARE CAPITAL SISTEMA.RU48 49
SISTEMA PJSFC / ANNUAL REPORT 2021

DIVIDEND AMOUNTS AND PAYMENT DATES
INDICATOR
TOTAL AMOUNT
OF DECLARED DIVIDENDS, RUB DIVIDEND PER SHARE, RUB DECLARATION DATE PAYMENT DATE
2021
(for the full year 2020) 2,991,500,000 0.31 26/06/2021 28/07/2021
2020
(for the full year 2019) 1,254,500,000 0.13 27/06/2020 29/07/2020
2019
(for the full year 2018) 1,061,500,000 0.11 29/06/2019 31/07/2019
2018
(for the full year 2017) 1,061,500,000 0.11 30/06/2018 31/07/2018
2017
(for 9M 2017) 6,562,000,000 0.68 28/11/2017 22/12/2017 –19/01/2018 
2017
(for the full year 2016) 7,816,500,000 0.81 24/06/2017 28/07/2017
2016
(for 1H 2016) 3,667,000,000 0.38 23/09/2016 20/10/2016
2016
(for the full year 2015) 6,465,500,000 0.67 25/06/2016 27/07/2016
BONDS
Credit ratings
2 991 500 000
1 Date of payment of dividends to the nominee
shareholders and custodians being professional
participants of the securities market, who are
included in the shareholders register.
2 Date of payment of dividends to other persons
included in the shareholders register.
3 Standard & Poor’s and Fitch ratings were
withdrawn by agencies in 1Q 2022.
SHARE BUYBACK PROGRAMME
In September 2019, the Corporation launched a share buyback programme
for RUB 3 bn. In June 2021, Sistema increased the volume of its share
buyback programme to RUB 7.0 bn and extended it until 17 September
2022. The buyback under the programme was carried out by Sistema’s
subsidiary JSC Sistema Finance. In 2021, Sistema bought back 180.9 m
ordinary shares representing 1.87% of its authorised capital for RUB 5,063 m.
At the end of January 2022, the Programme was implemented in full.
Since the announcement of the programme, JSC Sistema Finance
acquired 315,195,371 ordinary shares of the Corporation for an aggregate
amount of approximately RUB 7 bn, which represents 3.27% of outstanding
Sistema shares.
DIVIDEND AMOUNT
IN 2021, RUB
Detailed information on debt instruments
is available on the Company‘s website.
Detailed information on credit ratings
is available on the Company‘s website.
Sistema is one of the largest issuers of corporate bonds in Russia.
The Company uses bond proceeds to refinance its debt porolio
and implement its investment programme.
DATE
OF LISTING ISIN BOND ISSUE
VOLUME,
RUB BN COUPON
INTEREST
RATE TYPE MATURITY
PUT
OPTION
01/03/2021 RU000A102SV8 Sistema, 1P-18 5 6.90% Fixed 17/02/2031 30/11/2023
01/03/2021 RU000A102SX4 Sistema, 1P-19 13 7.35% Fixed 17/02/2031 27/02/2025
12/05/2021 RU000A103372 Sistema, 1P-20 10 8.20% Fixed 30/04/2031 12/05/2026
05/07/2021 RU000A103C95 Sistema, 1P-21 15 8.40% Fixed 23/06/2031 02/07/2026
13/09/2021 RU000A103P33 Sistema, 1-22 15 8.20% Fixed 01/09/2031 10/12/2026
03/12/2021 RU000A104693 Sistema, 1-23 5 9.95% Fixed 21/11/2031 04/03/2026
Sistema’s financial stability is reflected in its
ratings from leading rating agencies. They conduct
independent assessment of the Corporation’s
strategy and competitive position.
Sistema’s achievements in growing the value of its
diversified porolio and optimising the debt burden
caused several rating agencies to upgrade the
company’s credit ratings throughout 2021. In May
2021, S&P airmed Sistema’s credit rating at “BB”,
with outlook upgraded to “positive.” In June 2021,
Fitch upgraded Sistema’s credit rating to “BB,” with
a “stable” outlook. In September 2021, the Expert
RA rating agency upgraded the outlook on the
Corporation’s credit rating from “stable” to “positive”
(the rating was airmed at “ruAA-”).
LONGTERM
CREDIT RATING OUTLOOK
RATING
UPDATES IN 2021
Standard & Poor’s BB Positive 11/05/2021
Fitch BB Stable 25/06/2021
Expert RA ruA- Positive 22/09/2021
Sistema’s credit ratings 
PERFORMANCE OF THE CORPORATION SECURITIES AND SHARE CAPITAL SISTEMA.RU50 51
SISTEMA PJSFC / ANNUAL REPORT 2021

RESULTS
OF KEY ASSETS
MTS ..........................................................................
54
OZON ........................................................................
66
SEGEZHA GROUP ............................................................
72
ETALON GROUP ..............................................................
90
MEDSI .........................................................................
98
STEPPE AGROHOLDING .....................................................
110
BINNOPHARM GROUP .....................................................
120
OTHER CONSOLIDATED ASSETS ..........................................
128
VENTURE CAPITAL FUNDS .................................................
156
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
5352

MTS.RU
MTS is a leading telecom operator in Russia and the
CIS oering mobile and fixed-line communication
services, data transfer and Internet access, cable
and satellite TV broadcasting; a provider of digital
services, including fintech and media as part of
ecosystems and mobile applications; a provider of IT
solutions in the area of unified communications, the
Internet of Things, monitoring, data processing and
cloud computing.
SISTEMA'S
EFFECTIVE STAKE
1
49.9
%
Vyacheslav Nikolayev
CEO
Felix Evtushenkov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
›
88 M
MOBILE SUBSCRIBERS
in Russia, Belarus
andArmenia
8.4 M
PAY TV SUBSCRIBERS
4M
OTT PLATFORM
SUBSCRIBERS
8.8 M
ECOSYSTEM CLIENTS
2
+40% annual growth
+
95 %
GROWTH IN REVENUE FROM
CLOUD TECHNOLOGIES AND
DATA CENTRES
+
72 %
GROWTH IN THE NUMBER OF
REGISTERED USERS OF THE
ECOSYSTEM SERVICE MTS
CASHBACK
›
50 %
CONTRIBUTION OF NONTELECOM
SEGMENTS TO THE GROUP'S
REVENUE GROWTH
›
15
PROJECTS TO LAUNCH
CORPORATE LTE/5G
NETWORKS FOR MAJOR
RUSSIAN COMPANIES
14
DATA CENTRES
›
25 M
USERS OF MTS MOBILE
APPLICATION
›
26.4 THSD
4G BASE STATIONS LAUNCHED
5.6 THSD
RETAIL OUTLETS
No. 1
1.3
M
ANNUAL INCREASE IN THE
NUMBER OF ACTIVE USERS
OF MY MTS APP
AMONG THE STRONGEST
TELECOM BRANDS
INRUSSIA
1 In March 2022, as part of the long-term incentive programme,
Vyacheslav Nikolaev acquired 19,983,816 ordinary shares
of MTS owned by Bastion LLC, a wholly owned subsidiary
of MTS. With the transfer of shares to Mr Nikolaev, his
stake in MTS increased to above 1%. Sistema’s eective
ownership stake in MTS decreased to 49.9%.
89.0
BN
RUB
DISTRIBUTED IN DIVIDENDS
IN 2021
4
DIGITAL SOLUTIONS AND CLOUDS
MEDIA
ECOSYSTEM DEVELOPMENT
1.8 M
ACTIVE USERS OF MTS BANK'S
MOBILE APPLICATION
No.1
RANK OF MTS BANK BYPOS
LENDING VOLUMES
3
No.3
MTS BANK RANKS BYPOS
LOAN PORTFOLIO
3
+
75 %
GROWTH OF MTS BANK'S
RETAIL LOAN PORTFOLIO
+
38 %
GROWTH OF MTS BANK'S
REVENUE IN 2021
+
47 %
GROWTH OF MTS BANK'S
OPERATING INCOME
before provisions
3,000,000
CUSTOMERS OF MTS BANK
2 Ecosystem customers are the customers who are actively and consciously using two and more products or services provided by MTS.
3 According to data from MTS Bank based on Frank Research reports.
4 Including MTS's share buyback programme.
RESULTS OF KEY ASSETS MTS SISTEMA.RU54 55
SISTEMA PJSFC / ANNUAL REPORT 2021

Industry overview for 2021
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
1597
0.6%
2.7%
3.3%
2.6%
3.2%
2.11%
2.19%
2.1%
1.9%
1.8%
0.5%
1641
1694
1739
1747
1804
1842
1882
1921
1957
1992
Revenue, RUB bn
2021 2020
Growth rate, %
Overall telecoms
Mobile services
Broadband internet access
Pay TV
Fixed telephony
Inter-operator services
3.2%
0.5%
4.4%
0.9%
3.0%
1.5%
2.1%
-8.1%
-11.7%
-4.0%
-1.2%
3.5%
14 12 10 8 6 4 2 0 2 4 6 8 10
Telecoms market in Russia
1
Annual growth of Russian telecoms segments
1
1 Source: TMT Consulting
Business model
BUSINESS LINES
TOOLS
TELECOM
NEW DIGITAL
SERVICES
CUSTOMER EXPERIENCE
LOYALTY PROGRAMME
ARTIFICIAL INTELLIGENCE
ONE CUSTOMER ID
BIG DATA
IT
FINTECH
PARTNERSHIPS
MEDIA
RETAIL CHAIN
CLOUD AND
INFRASTRUCTURE
ForecastFact
SISTEMA.RU 57
SISTEMA PJSFC / ANNUAL REPORT 2021
56 RESULTS OF KEY ASSETS MTS

KEY TRENDS ON THE RUSSIAN TELECOMS MARKET LEGAL FRAMEWORK & REGULATORY CHANGE
MACROECONOMIC FACTORS THAT INFLUENCED
THE COMPANY'S BUSINESS IN 2021
In 2021, the Russian telecommunications market was valued
atRUB1.8 tn
1
, up by 3.2%, which is the highest level over the recent
years. This growth was mainly driven by a recovery in mobile
communications (+4.4% in 2021 compared to +0.9% in 2020).
At the same time, a slowdown was recorded in such important
segments as fixed-line broadband Internet (+3% in 2021 vs +3.5% in 2020)
and pay TV (+1.5% in 2021 vs +2.1% in 2020): subscriber base growth rates
fell aer a rise in new connections during the lockdown period of 2020,
which could not be oset by one-o increases in taris.
The number of subscribers (active SIM cards) in the mobile segment
inRussia rose by 3.3% in 2021, up to 259 m, approaching the level
of2019(260 m), with mobile penetration at 178%.
Mobile revenue in 2021 grew by 4.4% compared to 0.9% in the previous
year. This growth was prompted by subscriber base expansion and
higher roaming revenues due to a rise in outbound tourism. Another
factor was a considerable increase in revenue from additional
services in the B2B segment.
In November 2021, the Ministry of Digital Development and the
representatives of the telecom industry developed 10 initiatives, which
will be included in the first package of measures for supporting the
industry. The main objective of the support measures is to decrease
the operators' investment burden related to growing data traic in
conditions of stable subscriber numbers.
The Russian government has approved an action plan to create
additional incentives for the development of the information
technology industry. The road map includes 62 measures, of which 20
will be sector-wide. The remaining 42 actions are aimed at stimulating
the development and adoption of Russian technologies in specific
segments.
In March 2022, the government's measures aimed at addressing
sanctions and supporting the telecom and IT industries took eect.
On 2 March 2022, the Russian President issued an order exempting
IT companies from income tax until 31 December 2024. At the end
of March 2022, the Russian government also approved measures
aimed at supporting the telecom sector, including a moratorium
on implementation of the "Yarovaya" law by telecom operators,
introduction of a mechanism for phased indexation of taris by
operators to match inflation rates, shared use of communication
infrastructure by operators as part of inter-network roaming, one-
year suspension of regulations requiring operators to ensure LTE
coverage on federal highways and in small residential communities.
Moreover, the Ministry of Digital Development has taken steps aimed
at retaining soware developers and creating favourable conditions
for IT companies.
Inflationary pressures in Russia are negatively aecting capital
spending on acquisition of telecom equipment. Acceleration of
inflation is also having a negative impact on labour costs; however,
this situation is easier to control. In particular, MTS continues
implementing its cost-cutting initiatives, making it possible to partially
mitigate inflation risks.
In 2021, the company continued its
eorts to address the issue of 5G
frequencies. Mobile operators are
actively implementing pilot projects
in the available frequency bands and
developing mechanisms for freeing up
more radio frequencies.
This growth was driven by the easing
oflockdown restrictions and the resulting
increase in customer traic inretail outlets,
as well as paial recovery in the numbers
ofmigrant workers, who traditionally
make up abig share of mobile operators'
customer base in Russia.
In the mobile segment
1 Source: TMT Consulting
+
8M
THE SUBSCRIBER BASE INCREASED
IN ABSOLUTE NUMBERS IN 2021
The highest result over
the last 5 years
259M
THE NUMBER OF SUBSCRIBERS
INTHE MOBILE SEGMENT
+3.3% growth YoY in 2021
Measures included in the road map
Sector-wide actions
Stimulating actions
42
20
62
RESULTS OF KEY ASSETS MTS SISTEMA.RU58 59
SISTEMA PJSFC / ANNUAL REPORT 2021

Business development in 2021
TELECOM
In 2021, MTS revenue from communication services in Russia
increased by 5.1% up to RUB 416.5 bn, which was driven by
high consumption of services, both in mobile and fixed-
line segments. In particular, positive trends in the mobile
segment reflect growth in the number of subscribers (+2.5%)
and consumption of Internet traic, as well as partial
recovery in roaming revenues amid revival of international
travel in the second half of 2021 as opposed to the same
period of 2020, when more rigid Covid restrictions were
inplace. Growth in the fixed-line communications segment
inRussia was prompted by the consolidation of new assets
acquired by the company.
FINTECH
MTS Bank's revenue for 2021 rose by 37.9% year-on-year,
up to RUB 48.3 bn, which reflects the ongoing fast growth
of consumer banking and lending services. MTS Bank's
operating income (before provisions) increased by
47%. Net income reached RUB 5 bn, which significantly
exceeds RUB 1.1 bn in 2020, when the results were hit by
the Covid-19 pandemic. MTS Bank's retail loan porolio
before provisions grew by 75% in 2021, up to RUB 206 bn.
The number of users of MTS Bank mobile app totaled 1.8 m
bythe end of the year.
In July 2021, MTS acquired a 51% stake in LLC Factorin for
RUB 867 m, including a RUB 350 m investment to support
the company's development. Factorin is the developer
and owner of an innovative blockchain-based plaorm
for trade financing. The purpose of the transaction is
to expand the financial services ecosystem of MTS Group
for the corporate market.
In September, MTS completed the acquisition of 70%
ofshares in LLC Sistema Capital for RUB 3.5 bn as part
of an agreement with JSC Sistema Finance and LLC
Sistema Telecom Assets, the wholly-owned subsidiaries
ofSistema. As a result of the transaction, MTS increased
its shareholding in JSC Sistema Capital up to 100%. The
transaction aims to strengthen MTS Group's positions
inthefast-growing market of investment services.
INTERNET OF THINGS IOT
In June 2021, MTS launched an IoT Hub. The service allows
developers, startups and large companies to create their
own products and IoT solutions based on a ready-made
set of tools.
In January 2022, MTS launched "Digital Water Service",
an IoT solution for collecting and analysing data from
pressure sensors and meters in water supply systems.
RETAIL
Revenue in MTS's retail chain in 2021 rose by 8.7% year-on-
year, up to RUB 86.4 bn, while OIBDA increased by 24.6%,
upto RUB 6.2 bn, amid growing sales of mobile phones and
accessories and increased eiciency of MTS's retail chain.
DIGITAL SOLUTIONS AND CLOUDS
In January 2021, the cloud provider #CloudMTS launched
aservice of cloud project solutions for businesses.
In June 2021, MTS launched MTS GROM, the third most
poweul supercomputer in Russia able to peorm
computing operations at a speed of up to 2.26 petaflops.
In January 2022, MTS launched Cloud CDN, a fast content
delivery service for the corporate customers of #CloudMTS.
The service can be used for live streaming, game
streaming and video-on-demand services.
In February 2022, MTS's Board of Directors established
a dedicated committee for development of cloud
technologies and infrastructure under the chairmanship of
independent director Nadia Shouraboura.
ARTIFICIAL INTELLIGENCE AI
In March 2021, MTS's subsidiary LLC Artificial Intelligence
Centre of MTS (MTS AI) invested about USD 10m in Kneron,
a producer of AI chips. The investment will allow MTS AI
to become the exclusive distributor of Kneron chips and
technologies in Russia and create its own line of AI-ready
products using Kneron technologies.
In February 2022, Intema, a subsidiary of MTS AI, bought
VisionLabs B.V. for RUB 6.5 bn. VisionLabs is one of the
world's leaders in computer vision and machine learning.
VisionLabs has become the biggest porolio company
of Intema, which was established by MTS AI as a new
brand aimed at developing marketable AI products and
operating on international markets.
MEDIA
In 2021, revenue in the Media segment rose by 30%, up to
RUB 13.7 bn, due to an increase in the number of users of
convergent services that combine TV and communication
services, as well as a rise in the number of users of
streaming plaorm KION. OIBDA in the Media segment
went up by 34%, up to RUB 5.7 bn, on the back of revenue
growth. The total number of pay TV subscribers grew by
27% year-on-year, up to 8.4 m users. The subscriber base of
the OTT plaorm gained 58%, growing up to 4 million users.
In April 2021, MTS launched a new streaming plaorm
called KION, with a catalogue that oers more than
200 TV channels, thousands of films, series, cartoons and
documentaries. Own production of original films and a new
type of content– cinema stories – constitute an important
part of the streaming service. KION's library has been
supplemented with content from MTS's partner, Channel 1.
DEVELOPMENT OF THE 5G NETWORK
In February 2021, MTS announced the construction
of three private LTE networks:
1. commercial 5G-ready network for the steel
manufacturing and mining company EVRAZ
2. pilot underground LTE network to support the mining
operations of Uralkali, one of the world's leading
potash producers
3. networks on the premises of the Kochubeevskaya
wind farm (JSC NovaWind) combining Rosatom's wind
energy assets
In September 2021, MTS completed the construction and
launched the pilot operations of Russia's first commercial
dedicated LTE/5G-ready network for Polymetal, one of the
world's leading gold and silver producers.
In October 2021, MTS signed an agreement for building
adedicated LTE/5G-ready network for Karelsky Okatysh,
an iron ore producing and processing plant that is part of
Severstal, the world's largest steel and mining company.
MTS has more than 15 projects to launch corporate LTE/5G
networks for major Russian companies.
In June 2021, MTS and its partners rolled out a pilot 5G
network in the Innopolis special economic zone in the
Republic of Tatarstan.
In November 2021, MTS successfully tested Russia's first
OpenRAN-based 5G telecom solution using Russian-made
soware developed by the Skolkovo Institute of Science
and Technology (Skoltech).
In 2021, MTS launched Russia's first 5G user pilot network
in the 4.9 GHz range in fourteen popular locations of
Moscow and sixteen popular places of St. Petersburg and
Kronstadt.
In January 2022, MTS launched the world's first uplink
aggregation tests in a pilot 5G network built on the basis
ofnetwork functions virtualisation in a vRAN network.
RESULTS OF KEY ASSETS MTS SISTEMA.RU60 61
SISTEMA PJSFC / ANNUAL REPORT 2021

PARTNERSHIPS AWARDS SUSTAINABLE DEVELOPMENT
MTS and Vodafone Group announced their decision to
continue their strategic partnership until 2023.
January 2021
January 2021
May 2021
November 2021
February 2022
MTS Premium and Yandex Plus agreed to set up a partnership, that
involves MTS Premium users of the MTS Premium plan automatically
becoming the subscribers of Yandex Plus, which oers access to
Kinopoisk HD plaorm, music and podcasts, enables them to get
cashback in points and spend it on Yandex.Taxi, Yandex.Drive and
other Yandex services.
In March 2021, MTS announced it was establishing an ESG Committee
(Committee for Corporate Governance, Environmental and Social
Responsibility) of the Board of Directors to ensure more focus on the
implementation of sustainability principles and develop a general
strategy on corporate governance, environmental and social
responsibility. The ESG Committee of MTS's Board of Directors is
chaired by independent director Regina von Flemming.
In October 2021, Russian agency AK&M granted MTS the highest score
in the rating of ESG reporting (RESG1) based on its assessment of the
fullness of disclosed information on corporate sustainability and ESG
reporting.
In June 2021, Generation M, MTS's charitable project promoting
creativity, was included in the UN's oicial list of SDG Good Practices.
In December 2021, MTS obtained a "B" score (management level) inthe
CDP rating, the world's leading plaorm for disclosing information
about the impact of companies on the environment.
In December 2021, MTS was assigned the highest A+ category
intheannual Leaders of Corporate Charity rating that is sponsored
by the Donors Forum (an association of Russia's largest charity
organisations) with the aim of identifying best practices in the area
of corporate social investments and charity and promoting them
inthe business community and among the general public.
MTS and LUKoil agreed on a strategic partnership to launch Russia's
first subscription that combines payment for fuel at filling stations
and access to the digital products of the MTS ecosystem.
MTS became the first Russian company to join 5G Future Forum (5GFF),
an international association of telecom operators whose goal is to
develop specifications and implement advanced solutions based on
5G technologies and multi-access edge computing (MEC).
MTS signed a strategic cooperation memorandum with the Korean
telecom leader KT Corporation, aiming to develop new business lines,
including data centres, AI solutions, and media content.
Award in the area of customer experience
CX WORLD AWARDS 2021
April 2021
MTS won in the category “Best corporate
customer experience B2B. Telecom services”
by submitting a case on improvement of CJM
and EJM during the pandemic in 2020.
National award
RUNET AWARD 2021
December 2021
MTS won in the category “SME Development
in Russian Internet Domain” for its project
"Know in Person."
Professional award
"DIGITAL HEIGHTS 2021"
January 2022
MTS won in the category “Best IT
Solution for the Energy Industry”.
IOT AWARDS 2021
November 2021
MTS became the winner in the category
“IoT Company of the Year in Russia”.
RESULTS OF KEY ASSETS MTS SISTEMA.RU62 63
SISTEMA PJSFC / ANNUAL REPORT 2021

MTC
In 2021, MTS's revenue increased by 8% year-on-year, up to RUB 534.4 bn due to
growing consumption of communication services, data traic and ecosystem
services (including fintech and media) and a surge in sales of mobile phones
and accessories.
By the end of 2021, adjusted OIBDA rose by 6.9% reaching RUB 229.8 bn on the
back of increased demand for financial services, revival of the entertainment
industry and renewal of the product porolio.
Adjusted net income for 2021 remained at the level of 2020 due to higher
amortisation charges caused by an increase in capital spending and M&A
deals, growth of interest expenses on the back of the rise in the key rate and
greater foreign exchange dierences and derivative transactions.
In the calendar year 2021, the total amount of dividends stood at RUB 74 bn.
InJuly 2021, MTS completed a share buyback programme totally worth RUB 15 bn
(2.27% of the total number of listed MTS shares).
The main goal of the Customer Lifetime Value 2.0 (CLV 2.0)
strategy is to maximise Value that MTS gets from the Customer
throughout entire Lifetime (a period during which the customer
uses MTS's services). The key marketing tool that is used for
achieving this goal is an integrated and deeply customised
ecosystem including a range of proprietary and partner digital
services with the highest value for the customer that meets
thecustomer's needs in various areas of life.
Development of services is the responsibility of business segments that may
be significantly dierent in scale, development trends and nature of activities.
They work independently in close mutually beneficial cooperation with
partners within the ecosystem (joint use of technologies, customer data, shared
marketing and branding, etc).
Aer achieving considerable scale, the business segments will be spun o as
stand-alone companies with prospects for an IPO at multiples exceeding those
of the core communications business, making it possible to maximise MTS's
value based on the sum-of-the-parts valuation approach.
MTS's CAPEX in 2021 reached RUB 111 bn, of which RUB 109 bn was spent in Russia,
with the enhancement of network capacity, coverage and quality remaining the
main investment focus. Over the course of 2021, MTS built 27,300 base stations
across Russia, of which 26,400 are 4G towers. Smartphone data usage was up
22% year-on-year, with the smartphone penetration rate within the MTS network
up from 78.1% in 4Q 2020 to 80.2% at the end of 2021.
Revenue, RUB m
Adjusted OIBDA, RUB m
+8.0%
+6.9%
534.4
2021
229.8
2021
494.9
2020
214.9
2020
2020 2021
2020 2021
RUB m 2021 2020 CHANGE, %
Revenue 534,403 494,926 8.0%
Adjusted OIBDA 229,780 214,895 6.9%
Operating income 118,692 112,638 5.4%
Adjusted net income
attributable to Sistema 31,840 31,753 0.3%
Development strategy and results of CLV 2.0 strategy Financial peormance in 2021
CUSTOMER
LIFETIME
VALUE 2.0
74.0
BN
RUB
THE TOTAL AMOUNT
OF DIVIDENDS PAID
In the calendar year 2021
15.0
BN
RUB
A SHARE BUYBACK
PROGRAMME TOTALLY
WORTH
Completed inJuly 2021
RESULTS OF KEY ASSETS MTS SISTEMA.RU64 65
SISTEMA PJSFC / ANNUAL REPORT 2021

OZON.RU
Ozon is a leading multi-category online marketplace
in Russia's e-commerce market with a broad product
mix and extensive logistical infrastructure enabling
the company to make one of the best oers to
itscustomers.
SISTEMA'S
EFFECTIVE STAKE
1
31.8
%
Management Board
Elena Ivashentseva
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM
1 12.2 m shares were issued to be used in the
Ozon’s management inventive programme,
considering exercise of all options under the
programme, the eective share of Sistema,
including Sistema VC, would amount to 31.8%
KEY HIGHLIGHTS
›
445
BN
RUB
GMV IN 2021
including services
178.2
BN
RUB
REVENUE
›
80 M
UNIQUE SKUs
›
25 M
ACTIVE CUSTOMERS
›
90THSD
ACTIVE SELLERS
No. 2
RETAILER IN RUSSIA
BYGMV
gross merchandise value
+
125 %
GMV GROWTH IN 2021
›
200M
ORDERS DELIVERED IN 2021
+
200 %
GROWTH IN THE NUMBER
OF ORDERS 2021
›
3
×
INCREASE IN NUMBER
OF ORDERS
compared to 2020
1,000,000
SQ M OF TOTAL
WAREHOUSE SPACE
As of 31 December 2021, Ozon was a leading
logistical operator inRussia
RESULTS OF KEY ASSETS OZON SISTEMA.RU66 67
SISTEMA PJSFC / ANNUAL REPORT 2021

Key e-commerce trends in Russia in 2021Business model
The key factors hindering the development of e-commerce in Russia
included limitations of logistical infrastructure due to the lack of
investments and perception of online shopping as complicated and unsafe
by the customers.
Covid-19 restrictions in 2020 and 2021 had a significant impact on the
development of the e-commerce sector in Russia. The limited mobility of
customers resulted in a considerable growth in the number of Internet
users and active buyers, boosting the frequency of orders and improving
customers' trust in online shopping in general and in Ozon in particular.
The Russian e-commerce market has strong potential for fast growth
on the back of investments in logistical and fulfilment infrastructure by
online players, considerable improvement in the accessibility of financial
technologies and active development of online trade in Russia’s regions
and small towns.
The Russian retail market is the 4th largest in Europe, and its total value may
reach RUB 54.3 tn by 2026. According to analysts' estimates, the penetration
of e-commerce may reach 24.5% by 2026, creating vast potential for the
company's growth.
Multi-category retailers, such as Ozon, are the leading players in the
Russian e-commerce market. Through a peect combination of product
mix, prices and services, multi-category players continue actively
expanding their market share. According to analysts' findings, the share of
multi-category marketplaces may go up from 35% in 2021 to 72% in 2026.
Developed e-commerce markets have been mostly consolidated by major
players, while the Russian market remains very fragmented. Consolidation
trends in the e-commerce market open up significant opportunities for
major players in the fragmented Russian market
In 2021, the Russian e-commerce
market grew by 41% year-on-year,
reaching atotal value of RUB 4.1 tn,
with the overall retail market gaining
15%, up to RUB 39 tn, according
to INFOLine. Despite the growing
penetration of e-commerce, the
Russian market is at an initial stage
of development. E-commerce
penetration in 2021 stood at 10.5%,
which is significantly lower than in
other countries (21.0% in the USA, 25.5%
in theUK and 27.4 in China).
One of the largest networks of pick-up
points and parcel lockers
in the Russian retail market
Banking licence to launch
full-fledged banking
products
B2C lending: 2 m debit
cards and accounts as
of the end of 2021
B2B lending: a flexible payment
schedule enables vendors
to finance their working
capital and speeds up growth
ofturnover both for the vendors
and themarketplace
Dark store concept with awide range
of food, FMCG, best-selling electronic
devices and other items
Development of a branded network of
pick-up points and parcel lockers based
on afranchise model to ensure fast growth
at low capital intensity
Own brands and deli production
65 %
OF THE COMPANY'S
GMV
›
1 M SQ M
OF TOTAL
WAREHOUSE SPACE
~
80 M
UNIQUE SKUS
›
3 ×
YOY GROWTH OF TOTAL
WAREHOUSE SPACE IN 2021
~
25 M
CUSTOMERS
› 90 THSD
MERCHANTS
› MARKETPLACE
LOGISTICS
FULFILMENT
INFRASTRUCTURE
FINANCIAL
SERVICES
OZON FRESH
(formerly Ozon Express)
SISTEMA.RU 69
SISTEMA PJSFC / ANNUAL REPORT 2021
68 RESULTS OF KEY ASSETS OZON

Strategic goals
Financial peormance in 2021Business development in 2021
The key priorities of the company include further improvement of customer
loyalty by expanding the product range and oering quality customer
service; attraction of vendors by enhancing existing and creating new
vendor solutions; development in other regions, including further expansion
of operations in Belarus and Kazakhstan; development of promising business
streams and enhancement of eiciency.
The company expects its GMV to grow by 80% or more in 2022 compared to
2021 and aims to improve unit economics.
In 2021, GMV including services grew by 127% year-on-year to RUB 448.3 bn.
Keygrowth drivers:

the number of orders increased by more than 3.0 times year-on-year,
exceeding 220 m in 2021 on the back of increased customer loyalty and
engagement

the frequency of orders per customer rose by about 60% year-on-year,
upto 8.7x
In 2021, the company conducted a successful seasonal sales campaign,
Megasales, which included Bachelor's Day and Back Friday and achieved
record day turnovers of RUB 6 bn and RUB 5 bn respectively.
The ratio of adjusted EBITDA to GMV (including services) was (9.2%) compared to
(5.9%) in 2020 due to investments in infrastructure and the low base eect related
to the 2020 Covid-19 pandemic. The Company demonstrated an improvement in
profit margins in 4Q vs. 3Q that was driven by greater utilisation of infrastructure
due to economies of scale, as well as by operating leverage eect and
optimization in marketing expenses. In 2021, the Company's cash flow from
operations totaled RUB (13.6 bn) compared to RUB 6.6 bn in 2020.
In 2021, Ozon significantly expanded its logistical and fulfilment infrastructure,
including warehouses, distribution centres and a network of dark stores.
Asaresult, the storage capacity of the company almost tripled compared
to2020. As of 31 December 2021, the company was a leading logistical operator
inRussia: it operated about 1 m sq m of warehousing and logistical capacity.
Accelerated growth of the marketplace in 2021: Ozon marketplace's
share inGMV reached 65% compared to 48% in 2020 and 17% in 2019.
Themarketplace's product range has grown more than 7-fold year-on-year,
exceeding 80millionSKUs as of 31 December 2021.
In 2021, Ozon successfully launched a number of fintech products, including
the acquisition of a banking licence, as well as development of such products
as Ozon.Card (a debit card), Ozon.Account (an e-wallet) and lending products.
These products improve customer experience, increase the flexibility
ofpayments and enhance customer loyalty, resulting in a greater frequency
ofpurchases on the marketplace.
In 2021, the e-grocery service Ozon Express successfully launched regional
development, expanding beyond the Moscow region. To enhance its
perception as a service of quick delivery of fresh products the business unit
was rebranded as Ozon Fresh in March 2022.
Ozon fresh product range includes both food and non-food items. Theservice
also oers its customers an express 1-hour delivery and a super express
15-minute delivery in Moscow.
Ozon fresh continues developing its private label goods including coee, milk,
snacks and other products, as well as in-house production of ready meals
under the Ozon brand.
In 4Q 2021, Ozon fresh started scaling up its operations outside Moscow and
St.Petersburg and launched dark stores in Tver, Krasnodar, Rostov-on-Don,
Kazan, Sochi and Volgograd, oering its customers across regions the benefits
of fast delivery.
Financial results, RUB bn
1
Ozon marketplace's share in GMV, %
2021
2020
2019
65%
48%
17%
›
80%
EXPECTED GMV
GROWTH IN 2022
compared to 2021
Ozon.Card remains one of the most
popular payment tools on Ozon’s
marketplace. In 4Q 2021, the company
launched Ozon.Account based on
theacquired banking licence.
GMV, including services, RUB bn
Revenue, RUB bn
+127%
+71%
448.3
2021
178.2
2021
197.4
2020
104.4
2020
2020 2021
2020 2021
1 Ozon’s financial results are not consolidated within Sistema’s financial statements.
Investments in Ozon are reflected in Sistema’s financial reporting using the equity
method. The share of Ozon’s profit/loss attributable to Sistema is included in
Sistema’s operating results. Investments are reflected at book value adjusted for
attributable share of profit/loss for the period and are not marked to market.
2 GMV incl. services is the value of goods sold on Ozon together with revenue from other
services provided to buyers and sellers, inclusive of VAT minus discounts, cost of returns
and cancelled orders. This figure does not take into account sales from Ozon.Travel.
3 Adjusted EBITDA is not an IFRS metric. Adj. EBITDA is treated as a pre-tax loss, prior to the
deduction of non-operating income (expenses), depreciation and option programme expenses.
RUB bn 2021 2020 CHANGE, %
GMV, including services
2
448.3 197.4 127%
Revenue 178.2 104.4 71%
Adjusted EBITDA
3
(41.2) (11.7) −
Cash flow from operations (13.6) 6.6 −
RESULTS OF KEY ASSETS OZON SISTEMA.RU70 71
SISTEMA PJSFC / ANNUAL REPORT 2021

CLT panels
Glulam
Pre-fabricated
house kits
SEGEZHAGROUP.COM
Segezha Group is one of Russia’s largest vertically
integrated holding companies with a full cycle of
logging and advanced wood processing. Segezha
Group comprises forest, wood processing and pulp
and paper assets in Russia and Europe.
SISTEMA'S
EFFECTIVE STAKE
62.2
%
Mikhail Shamolin
CEO
Ali Uzdenov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
12
REGIONS
OFOPERATIONS
in Russia
26
PRODUCTION
SITES
15 THSD
EMPLOYEES
›
100
COUNTRIES OF SALES
74 %
OF REVENUE IS IN
FOREIGN CURRENCY
5
COUNTRIES WITH
REPRESENTATIVE OFFICES
Segezha Group operates a vertically
integrated business model with presence in
all the key value segments – from in-house
logging at leased forest plots to sale of
high-margin products in the most attractive
markets, both in Russia and abroad.
Business model
The business model’s vertical integration is
meant to create added value and ensure high
business stability. 84% of Segezha Group’s
demand for raw wood is met by its own forest
resources. It allows Segezha Group to have
leading positions in terms of production costs
in all its business segments.
PRODUCTION BYPRODUCTS MAIN PRODUCTS
Pulp wood
3040%
Sowood
saw logs
4060%
Birch veneer
logs
Firewood,
bark and
low-quality
pulwood
Stumps
Pulp and
papermills
Forest chemicals Paper
Converting
plants Paper
packaging
Sawmills Sawn timber
Pellets
Chips
Fiberboard
Plywood mills
Briquettes
Plywood
Multyfuel boiler Heat
Remain in the ground to ensure preservation of the roots
and futher regeneration
SEGEZHA GROUP
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU72
SISTEMA PJSFC / ANNUAL REPORT 2021
73

Segezha Pulp
and Paper Mill
is Russia’s only
manufacturer of
high-porosity
and high-strength
unbleached sack
paper.
8%
IS SEGEZHA GROUP’S
SHARE IN THE GLOBAL
OUTPUT OF PAPER FOR
INDUSTRIAL MULTILAYER
SACKS
77
%
IS THE SHARE OF
SEGEZHA GROUP IN THE
RUSSIAN OUTPUT OF
SACK PAPER
60%
OF SEGEZHA GROUP’S
SACK PAPER IS
EXPORTED
2
1
3 Source: Fisher International,
Segezha Group estimate.
1 Fisher International estimate.
2 The share of paper sold for
export to a third party, excluding
the Company's in-house
converting facilities.
Industry overview for 2021
In 2021, there was a strong price increase in the sack paper market due
to a shortage of supply. This market environment was caused by the
energy crisis in Europe and by decreased output of a number of global
players due to scheduled repairs, adverse weather conditions and a
reorientation to the production of cardboard due to increased demand
for packaging.
Against this backdrop, European manufacturers
announced an increase in prices for their products,
introducing the so-called “energy surcharges.” In
the fourth quarter of 2021, unbleached sack paper
prices in the European market increased by more
than 30% year-on-year. As a result of shortages and
government restrictions on electricity consumption in
China, massive production cuts in the pulp and paper
sector were announced at the end of the third quarter
of 2021, which negatively aected the supply volume
and aided the rising price trend. Product inventories
throughout the supply chain were kept low.
In Segezha Group’s target segment (paper for
industrial multilayer sacks), paper consumption grew
by 1.9% vs 2020 to 4.2 m tonnes, due to the recovery of
markets in China, Europe and the Americas.
GLOBAL MARKET
Sack paper
1.9
%
PAPER CONSUMPTION
GROWTH
2021 vs 2020
4.2
M
TONNES
PAPER CONSUMPTION
3
in 2021
4 EUROSAC, Fisher International.
5 EUROSAC, Fisher International.
6 Segezha Group internal
research, EUROSAC data.
In the European market, Germany, Turkey, Italy,
France, Poland and Spain accounted for about 62%
of demand for paper sacks in 2021.
63% of demand came from the construction industry
(cement and dry construction mixes)
4
. The share of paper
sack manufacturers integrated into the production of sack
paper was 66%. The largest suppliers include Segezha
Group, Mondi and Gascogne Papier.
The key factor in the growth of prices for paper sacks in
the European market was the increase in the cost of raw
materials (kra paper). The growth of demand in Europe
was driven by the construction industry and the chemical
industry.
Paper sack consumption in Europe totaled 6.03 bn items
in 2021, an increase of 4.5% compared to the previous
year. The highest growth in demand was in Italy, Czechia,
Germany, Spain and Turkey.
In the reporting year, along with the growth in demand in
traditional segments, Segezha Group increased its share in
the construction segment (dry construction mixes)
5
, as well
as in the production of packaging for chemical products.
EUROPEAN MARKET
Paper sacks
The construction industry accounts for the largest
share (87%) of paper sacks consumption in Russia,
just as in the European market. At the same time,
demand exceeds domestic production, and the
deficit is compensated with imports, the share of
which in 2021 was 20%.
In 2021, consumption of paper sacks in Russia totaled
826 m
6
items, up 8.6% from the previous year. The growth of
consumption was mainly driven by business activity in the
construction sector (extension of the subsidised mortgage
programme, commissioning of new housing and liing of
restrictions related to COVID-19). Segezha Group’s output of
industrial paper sacks increased by 11% compared to 2020
due to the launch of two new industrial lines in the town of
Segezha.
RUSSIAN MARKET
4.5 %
INCREASING DEMAND OF
CONSUMPTION
OF PAPER SACKS
2021 vs 2020
6.03
BN
ITEMS
TOTEL PAPER SACK
CONSUMPTION
in Europe in 2021
8%
IS SEGEZHA GROUP’S SHARE
in the European
paper sack market
65%
IS SEGEZHA GROUP'S SHARE
in the Russian
paper sack market
SISTEMA.RU 75
SISTEMA PJSFC / ANNUAL REPORT 2021
74 RESULTS OF KEY ASSETS SEGEZHA GROUP

Plywood
In 2021, the birch plywood market was characterised
by roaring demand due to the recovery of a number of
sectors aer the pandemic. The total market volume
increased by 4% year-on-year to 4.8 m cu m
1
. Demand
exceeded supply, leading to unprecedented growth in
birch plywood prices. Segezha Group’s price for plywood
rose to peak values in 2021 reaching 678 euro per cu m (+67%
year on year)
Europe and Russia remained the biggest global consumers
of plywood in 2021, accounting for 69% of total consumption.
Moreover, anti-dumping duties on birch plywood were
introduced by the European Union for Russian producers in
the reporting year, which was an additional growth driver
for prices in the EU market.
GLOBAL MARKET
Russia continues to be the undisputed global leader in the
production of birch plywood, with a 76% share of the global
market in 2021
2
. In the reporting year, Russia’s plywood
output increased by 8% compared to 2020, to 4.1 m cu m.
RUSSIAN MARKET
Sawn timber
The global market of sowood sawn timber was
estimated at 350 m cu m in 2021.
The United States and China were the biggest consumers
of sawn timber, mostly in the construction sector and
furniture production. Sawn timber consumption is
estimated to have increased in 2021 by 6% year-on-year
5
.
Growth in demand and prices in 2021 was mainly driven by
government support measures, lower mortgage rates, high
demand growth in DIY channels and deferred demand for
new housing from 2019 to 2020. In 2021, all markets where
Segezha Group operates were characterised by low
inventories of sawn timber and a shortage of supply.
Sawn timber prices peaked in 2021 reaching 239 euro per
cu m or +73% year on year. The development of trade was
significantly impeded by growing transport costs, shortage
of containers and port restrictions.
GLOBAL MARKET
The output of sowood sawn timber in Russia
is estimated at 41 m cu m in 2021, an increase of
4%
6
vs 2020. Russia is the world’s No 5 producer of
sowood sawn timber aer Europe, the US, China
and Canada with a market share of 11%
7
. Russian
products compete with European products in
Europe, China and MENA countries.
Russia’s exports of sowood sawn timber fell by 5% to
29m cu
8
, mainly due to China, which remains the biggest
consumer of Russian sowood sawn timber.
RUSSIAN MARKET
5 Source: ISC 2021 (industry conference), estimate by Segezha Group
6 Source: Rosstat, FAOSTAT, estimate by Segezha Group
7 Source: FAOSTAT, ISC 2021 (industry conference), estimate by Segezha Group
8 Source: Woodstat, estimate by Segezha Group
1 Estimate by Vision Hunters.
2 Estimate by Vision Hunters.
3 Estimate by Vision Hunters.
4 According to Segezha Group's internal research in 2021, Whatwood.
4.4 %
SEGEZHA GROUP’S SHARE
in the Russian birch
plywood market
79%
RUSSIA’S SHARE
in the global output
of birch plywood
No. 5
GLOBALLY IS SEGEZHA
GROUP’S RANKING
in terms of large-size birch plywood output
3
98%
SEGEZHA GROUP’S SHARE
of exported sawn timber
11%
RUSSIA’S SHARE
in the global sawn
timber market
9
No. 5
RUSSIA IS THE WORLD’S
No. 5 PRODUCER
of sowood sawn timber
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU76 77
SISTEMA PJSFC / ANNUAL REPORT 2021

In 2021, the size of Russia’s housing construction
market using laminated beams amounted to
157,000 cu m (+20% year-on-year)
1
.
According to expert estimates, the wooden housing
construction grew by 15%-17% in 2021 year-on-year. The
market for wooden housing construction in Russia is
relatively small. However, the share of housing built using
timber has more than doubled in the last 15 years
2
. The
key regions consuming prefab houses are still the Central,
Northwest and Volga federal districts.
Glulam
In 2021, the CLT market in Europe continued its
rapid growth, with the key demand driver being the
trend towards the construction of environmentally
friendly and safe housing, including multi-storey
buildings.
In the first half of 2021, there was a rapid increase in
consumption and market prices; output was estimated at
1.2 m cu m (+20% year-on-year) with capacities of 1.6 m cu m.
CLT panels
European countries and Japan remain the biggest
consumers of laminated beams.
The key markets in Europe are Italy, Germany and Austria.
The largest producers of laminated beams in Europe
are located in Austria and Germany (about 90% of
production). European manufacturers are usually local
players supplying products to regional markets. In 2021, the
European output of laminated beams totaled 3.7 m cum
4
,
growing 5% year-on-year, mostly thanks to production
growth in Germany and Austria.
Laminated beams
1 Source: Estimate by Segezha Group
2 Source: analytical article by Okna Media posted on the website
of the Association of Wooden Housing Construction.
3 Source: analytical article by Okna Media posted on the website
of the Association of Wooden Housing Construction.
13%
SEGEZHA GROUP’S SHARE
in the Russian prefab
houses market
3
157
THSD
CU M
SIZE OF RUSSIA’S HOUSING
CONSTRUCTION MARKET
+20% y-o-y
Business development in 2021
No. 1
BY PAPER OUTPUT
in Russia
1
No. 3
BY OUTPUT OF HIGHQUALITY
UNBLEACHED SACK PAPER
globally
1
Paper sales, thsd tPaper output, thsd t
Structure of paper sales in 2021 by country , %
RUSSIA
15
EGYPT
9
GHANA
7
CHINA
6
SAUDI ARABIA
6
TURKEY
5
ITALY
5
MEXICO
4
PAKISTAN
4
OTHER
39
Segezha Group produces over 77%
ofsack paper in Russia. About 40% of
paper produced is supplied to Segezha
Group’s own facilities in Russia and
Europe for the production of paper
sacks and bags. The remaining 30%
ofpaper is sold in export markets and
in Russia. The share of exports in sales
to external customers nears 90%, and
geography of supply is more than
78countries. The main export markets
for Segezha Group are China, Latin
America, Southeast Asia, North Africa,
the Middle East, and also Europe.
In 2021, Segezha Group’s paper output
decreased by 8.1% year-on-year to
369,400 t, primarily due to shutdowns for
the planned modernisation of Segezha
Pulp and Paper Mill (continuation of
the approved programme). Paper sales
decreased by 22.6% in the reporting
period, to 223,700 t, as a larger volume
of paper was used by Segezha Group’s
own converting facilities.
1 According to Segezha Group's internal research as of 31 December 2021.
Paper & Packaging
-8.1%
2020 2021
402
369
-22.6%
2020 2021
289
224
Revenue, RUB bn
+11.5%
2020 2021
35.7
39.7
4 Source: Forecast: https://www.timber-online.net/
wood_products/2021/05/over-3-million-m--for-the-first-time---record-
years-for-glulam.html, estimate by Segezha Group
PAPER
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU78 79
SISTEMA PJSFC / ANNUAL REPORT 2021

Plywood Boards
Plywood sales, thsd cu m
Plywood output, thsd cu m
No. 5
BY OUTPUT OF LARGESIZE
BIRCH PLYWOOD
globally
80%
Revenue of the Plywood & Wood Boards segment totaled RUB
12.5 bn in 2021, an increase of 63.6% from 2020. This growth was
driven mainly by rising prices, which hit record highs in the third
quarter of 2021, as well as an increasing share of high-margin
products.
Most of the plywood produced by Segezha Group is made for exports
(80% of the output in 2021). Plywood is supplied to more than 50 countries.
The key export markets are Europe, the United States, Canada and Asia
Pacific, including China, South Korea and India.
In 2021, Segezha Group’s plywood output increased by 2.2%, to 196,300 cu
m. Sales of plywood decreased slightly by 4.0%, to 178,200 cu m, due to
continued high demand. The Group also saw a positive eect from the
development of special products and promotion of its brand in North
America, South Korea and China.
THE SHARE OF EXPORTS IN SEGEZHA
GROUP’S PLYWOOD SALES IN 2021
in 2021
1 According to Segezha Group's internal research as of 31 December 2021.
Structure of Segezha Group’s plywood sales
in 2021 by country, %
USA
23
RUSSIA
17
GERMANY
11
CANADA
8
NETHERLANDS
7
SOUTH KOREA
5
UK
5
ISRAEL
3
SPAIN
2
OTHER
19
Paper sacks sales, thsd t
Paper sacks output, thsd t
Packaging products of Segezha Group’s enterprises in Europe and Turkey
are sold mostly in the European, Middle Eastern and African markets, while
the needs of the Russian and CIS market are met by its Russian facilities
located in the Republic of Karelia, the Moscow region and the Rostov
region. About 40% of Segezha Group’s sack paper is converted into paper
packaging at its own plants. Segezha Group is actively increasing the
production capacity in the segment of consumer packaging, investing into
acquisition of new production lines.
In 2021, Segezha Group sold 1,445.6 m paper sacks, up 11.0% from the
previous year, due to the development of the consumer packaging
segment.
In 2021, output increased by 10.6% year-on-year to 1,428.0m units thanks to
the implementation of the investment programme to expand capacities.
+10.6%
2020 2021
1,291
1,428
+11.1%
2020 2021
1,302
1,446
PAPER SACKS
No. 1
BY OUTPUT
OF PAPER SACKS
in Russia
1
No. 2
BY OUTPUT
OF PAPER SACKS
in Europe
1
1 According to Segezha Group's internal research as of 31 December 2021.
Revenue, RUB bn
Structure of paper sack sales in 2021 by country, %
RUSSIA
36
GERMANY
11
ROMANIA
5
THE NETHERLANDS
5
DENMARK
5
TURKEY
5
KAZAKHSTAN
4
SWITZERLAND
3
FRANCE
3
OTHER
23
40%
OF SEGEZHA GROUP’S SACK
PAPER IS CONVERTED INTO
PAPER PACKAGING AT ITS OWN
FACILITIES
+2.2%
2020 2021
192
196
2020 2021
186
178
-4.0%
+63.6%
2020 2021
7.7
12.5
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU80 81
SISTEMA PJSFC / ANNUAL REPORT 2021

Forestry management and woodworking
Revenue
2
, RUB bn Sawn timber sales
2
, thsd tSawn timber production
2
, thsd t
No. 3
BY CAPACITY OF
SOFTWOOD SAWN TIMBER
in Europe
1
›
20
Revenue of the Forestry management and woodworking segment totaled RUB 29.0 bn in 2021, an increase of
30.4% from 2020. This growth was driven by higher sawn timber prices compared to 2020 (on the back of strong
demand due to the post-Covid-19 global economic recovery), low inventory levels across the entire sales chain
and challenges in supply chains.
NUMBER OF COUNTRIES THAT
PURCHASE SAWN TIMBER
FROM SEGEZHA GROUP
Structure of Segezha Group’s sawn timber sales in 2021 by country, %
CHINA
41
EGYPT
20
UK
10
FRANCE
7
FINLAND
6
GERMANY
3
ESTONIA
3
BELGIUM
2
RUSSIA
2
OTHER
6
Segezha Group exports ~100% of its
sawn timber to dozens of countries,
with most volumes consumed
by construction companies and
producers of furniture and packaging.
The main markets for the company’s
sawn timber are China, Europe
and MENA
3
.
In 2021, sawn timber output decreased
slightly by 1.8% year-on-year, to
1,2 m cu m, as a result of increased
output of laminated beams at Sokol
Woodworking Plant (SDOK) due to the
installation of a new press line. Sawn
timber sales decreased by 13.3% in 2021,
to 1,1 m cu m, against the backdrop
of a seasonal price decline in winter,
as a result of which Segezha Group
ended the year with high inventories,
predicting a recovery in prices in 2022.
SAWN TIMBER
1 According to Segezha Group's internal research as of 31 December 2021.
2 The indicators take into account sawn timber produced by Sokol WP and are included in the results of the Laminated wood products segment.
3 MENA (Middle East and North Africa) is a geographic region with an aggregate population of 335 m people.
Prefabricated Houses
Revenue, RUB bnRevenue of the Prefabricated Houses segment totaled RUB 6.2 bn in
2021, an increase of 54.4% from 2020. This growth was driven by higher
output and sales, in particular due to the start of production and
sales of CLT panels, as well as higher product prices on the back of a
recovery in construction.
54.4
%
REVENUE OF THE LAMINATED
WOOD PRODUCTS SEGMENT
GREW BY 54.4%
2021 vs 2020
6.2
BN
RUB
TOTAL REVENUE OF THE
LAMINATED WOOD PRODUCTS
SEGMENT
in 2021
CLT PANELS
Structure of Segezha Group’s CLT sales in 2021 by country, %
LATVIA
37
ITALY
35
GERMANY
16
RUSSIA
4
BELGIUM
3
OTHER
6
In 2021, Segezha Group started
the production of CLT panels;
~9,000 cum were produced in the
reporting period. Sales totaled
~7,000 cu m.
CLT output, thsd cu m CLT sales, thsd cu m
No. 1
SEGEZHA GROUP IS THE LARGEST
MANUFACTURER OF CLT PANELS
in Russia
2020 2021
1,192
1,170
-1.8%
2020 2021
1,217
1,056
-13.3%
+100%
2020 2021
0.0
7.0
+100%
2020 2021
0.0
9.0
+54.4%
2020 2021
4.0
6.2
+51.2%
2020 2021
19.2
29.0
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU82 83
SISTEMA PJSFC / ANNUAL REPORT 2021

LAMINATED BEAMS
No. 1
SEGEZHA GROUP IS NO 1 PRODUCER
OF LAMINATED BEAMS
1
in Russia
In 2021, output of laminated
beams increased by 67.5% year-
on-year, to 63,400 cu m, as a result
of increased output of laminated
beams at Sokol Woodworking Plant
(SDOK) due to the installation of a
new press line. Sales of laminated
beams increased by 75.2% in 2021,
to 66,300 cu m.
Structure of Segezha Group’s laminated beam sales in 2021 by country, %
ITALY
48
GERMANY
18
JAPAN
8
AUSTRIA
7
HUNGARY
4
GREECE
3
POLAND
3
SPAIN
2
ISRAEL
1
OTHER
6
1 According to Segezha Group's internal research as of 31 December 2021.
PREFABRICATED HOUSES
80%
IS SEGEZHA GROUP’S SHARE
IN PREFAB HOUSES MARKET
1
in Russia
In 2021, output of prefab houses
increased by 7.8% year-on-year, to
20,100 cu m, as a result of increased
output due to the installation of
a new press line. Sales of prefab
houses slightly increased by 2.7%
in2021, to 19,200 cu m.
Structure of Segezha Group’s prefab house sales in 2021 by country, %
RUSSIA
95
KAZAKHSTAN
2
USA
1
ITALY
1
SWEDEN
1
OTHER
1
Laminated beam output, thsd cu m Laminated beam sales, thsd cu m
+69.4%
2020 2021
38.4
65.1
+67.5%
2020 2021
37.9
63.4
Output of prefab houses, thsd cu m Sales of prefab houses, thsd cu m
+7.8%
2020 2021
18.7
20.1
+2.7%
2020 2021
18.7
19.2
NEW TECHNOLOGIES

The first plant in Russia for the large-
scale industrial production of CLT
panels with a capacity of 50,000 cu m
per year was put into operation.

Segezha Forest, an automated system
for timber shipment accounting
and control, was put into full-scale
operation.

An R&D Centre was opened in the
Republic of Karelia, the first of its kind in
the Russian pulp and paper industry.

Segezha Packaging’s paper sack
plant in Denmark (Aalborg) completely
transitioned to wind power.

In April 2021, Segezha Group had an
initial public oering on the Moscow
Exchange. The company raised RUB 30
bn, which will be used to finance the
investment programme and optimise
the debt porolio. The shares are
included in the Level 1 Quotation List of
the Moscow Exchange under the ticker
SGZH.

Segezha Group acquired a 100%
stake in LLC Inter Forest Rus, which
combines a number of timber assets
in the Krasnoyarsk region and the
Irkutsk region with substantial volumes
of wood resources, for USD 528 m
(estimate). As a result of the transaction,
Segezha Group strengthened its
leading position in Russia and Europe
in terms of sawn timber output
and became a top 3 European
manufacturer in this segment.

Segezha Group acquired the assets of
CJSC Novoyeniseysky Timber Chemical
Complex. Production capacities: up to
500,000 cu m of sawn timber, 60,000 t
of pellets and 20 m reference sq m of
fibreboard. The company also has
2.2 m cu m of annual allowable cut.
The assets are located in the town of
Lesosibirsk, the Krasnoyarsk region.

The Expert RA rating agency upgraded
the credit rating of Segezha Group
to “ruA+” and changed the outlook to
“positive.”

Segezha Group was named one of
the top 30 environmentally friendly
companies in Russia by Forbes.

Segezha Group joined the UN Global
Compact.

Segezha Group received an ESG rating
from Sustainalytics and was included
among the top 25 companies in the
Paper and Timber industry and among
the top 20 companies in the Paper and
Pulp subindustry.

Segezha Group Packaging assets in
Europe were awarded a Gold level from
the international plaorm EcoVadis.
KEY ACHIEVEMENTS
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU84 85
SISTEMA PJSFC / ANNUAL REPORT 2021

Operations & investment development strategy
MANUFACTURING ASSETS
CONSTRUCTION OF A PLYWOOD MILL IN GALICH.
UPGRADE OF THE SEGEZHA GROUP PPM TO INCREASE
CAPACITY AND REDUCE PRODUCTION COSTS.
MODERNISATION OF ONEGA WOODWORKING
PLANT WITH EXPANSION OF PRODUCTION
CAPACITY BY 48,000 CU M OF SAWN TIMBER
AND BY 30,000 T OF PELLETS.
Segezha Group’s strategy is aimed at creating an
industry leader in production eiciency on the basis of
a vertically integrated and diversified business model.
INCREASE OF SACK PAPER OUTPUT AT SOKOL PPM.
EXPANSION OF PLYWOOD PRODUCTION
AT VYATKA PLYWOOD MILL BY 64,000 CU M.
MODERNISATION OF LESOSIBIRSK WOODWORKING
PLANT WITH EXPANSION OF PRODUCTION CAPACITY
BY 50,000 CU M OF SAWN TIMBER AND BY 100,000 T
OF PELLETS.
WOOD RESOURCES
INCREASE OF THE SHARE OF OWN WOOD
RESOURCES BY EXPANSION OF ALLOWABLE
CUT AND INCREASE OF ITS UTILISATION RATE.
HIGHQUALITY REFORESTATION
CONSTRUCTION OF HAULAGE ROADS
INNOVATION
FULL IMPLEMENTATION OF SAP S/4HANA
AT ALL DIVISIONS.
INCREASED NUMBER OF AUTOMATED DATA
SOURCES AND DEPLOYMENT OF A SINGLE DATA
LAKE TO STORE AND PROCESS PRODUCTION DATA.
TRANSITION TO CREATIO CRM SYSTEM AT RUSSIAN
AND FOREIGN ASSETS OF SEGEZHA GROUP.
SUSTAINABLE DEVELOPMENT
CREATING AND DEVELOPING R&D CENTRES
AT SEGEZHA GROUP.
AUTOMATION AND INTRODUCTION
OF STATEOFTHEART IT SOLUTIONS.
HEALTH AND SAFETY OF EMPLOYEES.
REDUCTION OF THE ENVIRONMENTAL IMPACT
AND USE OF STATEOFTHEART PRODUCTION
TECHNOLOGIES.
UMBRELLA CHARITY PROJECTS: CITY INFRAST
RUCTURE, SPORTS, EDUCATION AND ENVIRONMENT.
THE FOREST SEED CENTRE IN THE KOSTROMA REGION
WILL GROW THE FIRST 4 M SEEDLINGS AS PART OF
THE COMPANY’S POLICY OF SUSTAINABLE FOREST
MANAGEMENT BY 2023.
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU86 87
SISTEMA PJSFC / ANNUAL REPORT 2021

2021 2020 CHANGE, %
Revenue 92,442 68,987 34.0%
OIBDA 29,253 17,457 67.6%
Operating income 22,351 11,185 99.8%
Net income
attributable to Sistema 12,041 (1,324) n/a
Financial peormance in 2021
In 2021, revenue increased by 34.0% year-on-year to
RUB 92.4 bn due to increased production volumes and
favourable prices for key products.
Revenue growth was also supported by the increased average
exchange rates of foreign currencies against the rouble year-
on-year. The rouble's exchange rate decreased by 6% against
the euro and by 2% against the US dollar in 2021. The share of
foreign currency revenue grew by 2.5 p.p. year-on-year, to 74.5%.
In 2021, adjusted OIBDA increased by 67.6% year-on-year, to
RUB 29.3 bn, mainly due to higher prices for all types of the
company's products and improved productivity and eiciency
of its own logging.
In 2021, adjusted net profit attributable to Sistema amounted to
RUB 12.0 bn compared to a net loss of RUB 1.3 bn in 2020.
Segezha Group's shareholders decided to pay dividends for the
nine months of 2021 in the amount of RUB 6.6 bn. The payment
was completed in January 2022.
Financial results, RUB m
29.3
BN
RUB
OIBDA
67.6% y-o-y
92.4
BN
RUB
REVENUE IN 2021
34.0% y-o-y
RESULTS OF KEY ASSETS SEGEZHA GROUP SISTEMA.RU88 89
SISTEMA PJSFC / ANNUAL REPORT 2021

Etalon Group is one of the largest and oldest real
estate development companies in Russia specialising
in mid-market housing construction projects.
A leading player in St. Petersburg and Moscow, it is
now actively expanding into other regions of Russia.
The company is on Forbes's Top-10 list of major Russian
property developers
1
, enjoys the highest reliability rating 
in the industry and belongs to the nation's top 3 construction
companies present in 6+ Russian regions .
SISTEMA'S
EFFECTIVE STAKE
29.8
%
Gennady Shcherbina
CEO
Sergey Egorov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
6
M
SQ M
IN NSA 
270
BN
RUB
IN ASSET MARKET
VALUE
27
PROJECTS IN DESIGN
AND CONSTRUCTION
PHASES 
1 Position in the 2021 Russian mass housing developers ranking.
2 Developer timing discipline rating by ERZRF.RU.
3 Ranking of developers present in 6+ regions of
Russia as of 01.01.2022 (in terms of sq m under
construction) according to data collected from
nash.dom. and oicial company websites
4 Net Saleable Area
5 As of 31.12.2021, according to Colliers International.
ETALONGROUP.COM
446
THSD
SQ M
SOLD
in 2021
84.4
BN
RUB
SALES
in 2021
84.1
BN
RUB
CASH COLLECTIONS
in 2021
+
34 %
IN AVERAGE HOME PRICES
in 2021
421 THSD SQ M
COMMISSIONED IN 2021
ACROSS 9 PROJECTS
RESULTS OF KEY ASSETS ETALON SISTEMA.RU90 91
SISTEMA PJSFC / ANNUAL REPORT 2021

Industry overview for 2021
The national real estate market
peormed strongly throughout
2021 despite the persisting
pandemic-related threats, with
developers increasingly competing
for attractive urban land.
The top 20 players further solidified their market standing by virtue
of strong demand, governmental programmes to subsidise mortgage
loans, and geographic expansion.
Strong demand for urban housing throughout 2021 was fueled both
by people needing new homes and by a rising appeal of real estate
as an investment vehicle.
Although per-capita housing area in Russia is just 27 sq m (far behind
European figures), the numbers grew in 2021 in Russia's most aluent
cities of Moscow and St. Petersburg.
High inflation led to negative eective returns on bank deposits, pushing
people to look for alternative vehicles to invest in. While retail bank
deposits in Russia are up just 6% (RUB 1.9 tn) year-on-year, with the growth
rate 1 p.p. lower than in 2020 , funds on the escrow accounts of o-plan
homebuyers (i.e. revenue of residential developers from units being sold
while construction is still in progress) tripled year-on-year, reaching a
staggering RUB 3.1 tn. The trend is especially pronounced in St. Petersburg,
where escrow-account figures quadrupled, while Moscow statistics
dovetail with the national average.
The persistent threat of Covid-19 puts the squeeze on demand for oice
space, driving the category's share in the overall real estate investment
structure from 32% in 2020 to 19% in 2021 , while investment in land plots for
development projects went up from 50% to 64% . According to Knight Frank,
developers continue vying for land in Saint Petersburg where housing
demand is strongest. That said, as Moscow runs out of commercially
sound empty space and competition among top market players
intensifies, demand for land will increasingly follow a decentralisation
trajectory.
By 2025, the national top 20 developers are projected to generate a record
high 60% of supply in Moscow and St Petersburg, while the number of
small and medium-sized players will continue shrinking as the Central
Bank's interest rate grows.
Housing area per capita , sq m
Top-20 developers continue building up porolios 
Saint Petersburg
27
Moscow
20
Berlin
40
Stockholm
34
Warsaw
33
Rome
39
London
33
2025 TARGET 
1 Source: Rosstat, national statistics
agencies, Statistik Berlin-Brandenburg,
Centre for cities, ISTAT, SOW
2 The target used here is 30 sq m per capita,
as specified in the national Housing
Development Strategy Through 2025.
3 Source: the Central Bank of Russia.
4 According to CBRE's Recovery of the
Russian real estate investment market due
to the country’s GDP growth in 2021.
5 Source: Knight Frank.
6 Sources: Etalon Group's analysis of data
available at nash.dom. and from ERZ
7 Source: UISIS, nash.dom.
3.5
TN
RUB
REVENUE OF RESIDENTIAL DEVELOPERS
FROM UNITS BEING SOLD
while construction is still in progress
While Moscow and St Petersburg remain Russia's key regions
for real estate development, the top 20 national players
are looking to enter new geographies, which influences
housing construction and commissioning trends.
New housing supply in Russia's biggest metropolitan
areas reached an all-time high of 25 m sq m in 2021.
The governmental programme Housing is progressing with
strong momentum. While deliveries in 2021 reached 93 m sq m
(up 13% year-on-year), the programme targets a much more
ambitious 120 m sq m a year, which, though feasible, requires
a highly favourable construction environment and a sound
national economy overall.
2018 2019 2020 2021 20222025
16.4
17.1
14.0
18.4
38.6
39% 45%
46%
48%
60%
Delivered in total, m sq m
Aggregate market share of Top-20 players
Home floorspace delivered in cities
with 1m+ populations , m sq m
2021
24.6
2020
22.1
2019
22.6
2018
20.5
2017
20.6
2016
22.0
2015
23.6
Home floorspace delivered
in Saint Petersburg , m sq m
2021
3.5
2020
3.4
2019
3.5
2018
4.0
2017
3.5
2016
3.1
2015
3.0
Home floorspace delivered in Moscow , m sq m
2021
7.8
2020
5.0
2019
5.2
2018
3.5
2017
3.4
2016
3.4
2015
3.9
RESULTS OF KEY ASSETS ETALON SISTEMA.RU92 93
SISTEMA PJSFC / ANNUAL REPORT 2021

Business development in 2021
PROJECT PORTFOLIO EXPANSION
In a bid to upscale business, in May of 2021 Etalon Group
launched a sweeping land acquisition programme
targeting both current and new regions across Russia.
By February 2022, Etalon Group had more than doubled
its land assets, having acquired 3.7 m sq m, including
parcels in four new regions: Omsk, Novosibirsk, Tyumen and
Yekaterinburg. The acquisitions were partially funded with
proceeds from a secondary public oering organised in
May of 2021, an initiative that brought the company over
150 m US dollars.
STEADY SALES GROWTH
AND STRONGER FINANCIAL POSITION
In 2021, the company set a new record in rouble-
denominated sales and cash collections. The growth
was driven by sales launches for a number of "upmarket"
housing projects, such as Zil-Yug, Nagatino i-Land and
Voxhall, and an overall strong price growth across the
porolio. With new land parcels under the belt, the
company plans to at least triple sales launches in 2022,
which in turn will support its operating peormance
in the next few years.
Growing revenue and eicient cost management made
Etalon one of the leading Russian public developers in
terms of pre-PPA gross profit margin, which reached 36%.
With net debt reduced to RUB 2.6 bn and Net Debt/pre-
PPA LTM EBITDA  to 0.12×, the company is prepared to go
forward with its ambitious strategic programme.
INCREASING FOCUS ON SUSTAINABLE
DEVELOPMENT ESG
Among corporate policies and standards adopted and
updated by Etalon Group in 2022 (such as the Policy on
Insider Information, the Policy on Information Disclosure
and the Code of Transactions in Securities) is a new ESG
Policy designed to systematise the company's approach
to sustainable development. Among other things, the
company sets out specific steps to be taken across the
Group for more profound ESG practices.
ADVANCING NEW TECHNOLOGIES
Etalon's key R&D areas are the development of seamless
digital architecture for the entire value chain, product
standardisation and the introduction of new housing
construction technologies. The company's technological
transformation aims to increase its operating eiciency
and profit margins. At the time of the report , Etalon Group
is working on:

a pilot "digital districts" project in partnership with MTS

first construction projects using prefabricated elements

rolling out a dynamic pricing system and an automated
land plot analysis system that's now being tested

implementing a set of standard designing solutions for
Phase 1 of Project Green River in Omsk

launching of pilot production of modules, a recently
acquired housing construction technology (to be
completed by the end of 2022)
Etalon Group's development eorts in 2021 centred on the
main goals and targets declared in its recently adopted
development strategy through 2024.
1 EBITDA for the past twelve months before purchase price allocation (PPA).
2 February 2022.
Development strategy
Strategy implementation
Etalon Group's strategic goal
for 2022-2024 is to become the national
No.1 by square metres under construction,
the area of land owned, and business
eiciency.
The industry's highest return rates coupled with ongoing eort to cut costs,
speed up construction and develop complementary businesses enable
a higher eiciency of land development in Moscow, Saint Petersburg
and elsewhere, whether in the highly lucrative central locations (where
eiciency excellence is driven by superior cost control, standardisation
and prefabrication) or in urban fringe areas.
DEVELOPMENT
ACROSS VALUE
CREATION
CHAIN
the entire design function
is going through a sweeping
conceptual overhaul, which
involves the establishment
of a whole "product oice"
the company is launching
a production site of its own
to manufacture modular
building components
it is also developing and
launching a ra of tenant
services, while also collecting
feedback for further product
enhancements
BUSINESS
UPSCALING
in the first few weeks of 2022
alone (as of February 2022),
the company has acquired
some 1.5 m sq m of new land
in Moscow and Saint
Petersburg
once the intensive phase of
land acquisitions (2021–2022)
is completed, the company
plans to continue going with
up to 1.0 m sq m of added
land per year
the 2021–2022 expansion
programme targets 5+ new
regions across Russia
LEADERSHIP
IN EFFICIENCY
the company is increasingly
integrating prefabrication
technologies in traditional
cast-in-place processes
in a bid to cut costs and
speed up construction
a standardised "product
2.0" that's scheduled to
be launched in 2022 will
apply to both mass-market
and upmarket projects,
to be followed by an
overhaul of the entire value
proposition and the launch
of a fundamentally revised
product by 2024
a digital tech plaorm
that's now being developed
will serve to speed up
upscaling and reduce
accompanying costs
RESULTS OF KEY ASSETS ETALON SISTEMA.RU94 95
SISTEMA PJSFC / ANNUAL REPORT 2021

PARAMETER 2024 TARGET CURRENT STATUS 
Porolio growth Increase porolio by 6 m+ sq m
Start projects in 5+ new regions
in Russia
3.7 m sq m acquired since programme launch, including 3.3 m sq m
in regions other than Moscow and St Petersburg. Currently considering
M&A deals in St Petersburg
Projects started in 4 new geographies (Omsk, Novosibirsk,
Yekaterinburg and Tyumen)
Increase new sales
in rouble terms
Double-digit growth With sales up 5.6% in 2021, the company expects a further increase
in new contract sales throughout 2022–2024 as the porolio grows
and more properties are launched for sale
Gross profit margin before
purchase price allocation (PPA)
35% 36% in 2021
Net debt/pre-PPA LTM EBITDA 2×-3× 0.12× as of 31/12/2021
Customer experience Best in class CJM  enhancement project completed in 2021.
Currently piloting a ra of standard solutions in Omsk
(targeting a finalised product proposition by the end of 2022)
and preparing to launch the production of prefab construction
elements (also being piloted in several projects) later this year
2021 2020 CHANGE , %
Revenue 87,138 78,655 10.8%
Pre PPA EBITDA  21,139 16,482 28.3%
EBITDA 17,880 12,601 41.9%
Pre-PPA net income 6,536 5,875 11.3%
Net corporate debt 2,581 19,580 (86.8%)
2021 2020 CHANGE, % 
Sales, RUB m 84,388 79,922 5.6%
Sales, thsd sq m 446 538 (17.0%)
Average price,
RUB thsd / sq m 189 149 27.3%
Average home price,
RUB thsd / sq m 239 179 33.6%
Cash collections, RUB m 84,094 81,985 2.6%
Progress made so far towards 2024 strategic targets
Financial results , RUB m
Largest completed projects
1 As of February 2022, if not stated otherwise
2 Customer Journey Map, or a history of a customer's
interactions with the company from first becoming aware
of a need for its product to repeat communications.
3 The results are presented in line with Etalon’s financial statements.
Alternative peormance measures reconciliation is provided
in Etalon’s disclosure materials. The results of Etalon Group are
not consolidated in the financial statements of Sistema PJSFC.
4 W/o regard to rounding.
5 EBITDA before purchase price allocation (PPA).
Financial peormance in 2021
Operating peormance in 2021
For Etalon, 2021 became a year of a record-high revenue
of RUB 87 bn, up 11% year-on-year. An eicient system
of selling drove gross profit up 27% year-on-year, to RUB 28 bn.
The Company also maintains focus on trimming SG&A costs,
which are down from 12.5% in 2020 to 12% in 2021.
As a result of eiciency enhancements, pre-PPA EBITDA
increased by 28%, to RUB 21 bn. Pre-PPA net income is up 11%,
from RUB 5.9 bn in 2020 to RUB 6.5 bn in 2021.
Despite a record-high increase in land acquisitions,
the company generated a positive operating cash flow
adjusted for receipts on escrow accounts, standing
at RUB 19 bn and free cash flow (adjusted for cash receipts
on escrow accounts) at RUB 15 bln. Etalon's shareholders
received RUB 3.6 bn distributed in 2021 dividends
(or RUB 9.4 per ADR).
In 2021, Etalon Group demonstrated a strong operational
peormance, coming very close to the previously projected
figures. The company reached record highs in new contract
sales (RUB 84.4 bn) and cash collections (RUB 84.1 bn), with
the porolio-average selling price up 27% and the average
home price up 34%. To drive further growth of the business, the
company more than doubled its land holdings in 2021, from
2.8 m sq m at the end of 2020 to 6.0 m sq m as of 31 December
2021. With sales to start from 2022 on, the new land parcels will
translate into yet higher financial peormance figures, also
buoyed by strategic initiatives, cost control, and technological
advancement.
Progress on specific projects
Among the important
events that took place
in 2021 is the launch
of a large-scale Zil-Yug
project in Moscow
in May of 2021.
By the end of the year, the company had sold nearly
30
thsd sq m here, with the average price up from
RUB 282
thsd to RUB 337 thsd per sq m. The company also
started sales on Project Voxhall in central Moscow and on
new properties n the previously launched Nagatino i-Land.
In a move to expand geographically, the company
acquired land in the Siberian cities of Omsk and
Novosibirsk in 2021 and in Yekaterinburg and Tyumen
in 2022. With first construction permits in Omsk received
in late 2021, the company is launched sales at the project
in April 2022.
PROJECT LOCATION
AREA,
THSD SQ M
Summer Garden, Phase 3 Moscow 87
Galaktika, buildings 4.13 and 4.15 St Petersburg 78
Etalon on the Neva St Petersburg 76
Petrovskiy Landmark St Petersburg 74
Silver Fountain, building 4 Moscow 38
Normandy, Phase 2 Moscow 36
RESULTS OF KEY ASSETS ETALON SISTEMA.RU96 97
SISTEMA PJSFC / ANNUAL REPORT 2021

MEDSI.RU
Medsi is Russia's biggest national private healthcare
plaorm oering a full range of medical services,
from primary and ambulance care to high-tech
diagnostics, complex surgeries and rehabilitation
programmes, as well as a broad range of services
aimed at improving the quality of life.
SISTEMA'S
EFFECTIVE STAKE
95.5
%
Elena Brusilova
CEO
Tagir Sitdekov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
24 %
OIBDA
MARGIN
71 %
BRAND RECOGNITION
IN MOSCOW
12
REGIONS IN RUSSIA
›
90
FACILITIES
No. 1
AMONG RUSSIA'S TOP 20 PRIVATE
CLINICS IN 2021 ACCORDING
TO FORBES
3
THSD
RUB
AVERAGE CHEQUE
279
THSD
SQ M
OF FLOORSPACE
269THSD
BEDDAYS
›
10,000,000
VISITS
3.3 %
SHARE ON RUSSIAN PRIVATE
HEALTHCARE MARKET
MEDSI
RESULTS OF KEY ASSETS MEDSI SISTEMA.RU98 99
SISTEMA PJSFC / ANNUAL REPORT 2021

Business model
Medsi is a three-tier medical plaorm
that provides an array of care services,
from preventive health improvement
programmes to complex high-tech
surgeries and rehabilitation.
An eective patient routing system and vertically integrated centres
of excellence enable a continuous care cycle relying on uniform corporate
standards and superior eiciency.
2021 marked the establishment of Medsi's very own laboratory business,
a major step towards yet higher quality of clinical and diagnostic service.
Increasing focus has been placed on developing the digital plaorm
that is both a means of communication and a backbone on which
to add ecosystem products both for patient and doctor use.
SELFPAY
PATIENTS
HOME
CARE
OCCUPATIONAL
HEALTHCARE
(Corporations)
LABORATORIES
VMI
(Individuals)
CLINICS
IN REGIONS
HOSPITAL 3
(Michurinsky)
REGIONAL HUBS
Oering advanced diagnostics and day care services (CDC)
ADULTS AND CHILDREN CLINICS IN MOSCOW AND MOSCOW REGION
HOSPITAL 2
(Botkinskaya)
HOSPITAL 4
(Children's)
OMI
DIGITAL PLATFORM/
ECOSYSTEM
PPP WITH REGIONS
(OMI stream)
REGIONAL PATIENTS
for high-tech medical care under the OMI
HOSPITAL 1
(Otradnoye)
ASSETS OVERVIEW
20212020
PAEDIATRIC CLINICS
2 2
HOSPITALS
2 2
WELLNESS CENTRES
AND RETREATS
3 3
HOME CARE
1 1
TOTAL FACILITIES
49 91
CLINICS OUTSIDE
MOSCOW, TOTAL
16 49
5 Perm
1 Nizhnevartovsk
1 Nyagan
1 Volgograd
1 Bryansk
1 Barnaul
4 Izhevsk
3 St Petersburg
+1 St Petersburg
+1 Rostov-on-Don
+8 Ufa
+23 Volgograd
+33
PRIMARY CARE
CLINICS
20 27
+7
CLINICAL DIAGNOSTIC
CENTRES CDCS, TOTAL
5 7
CDC Krasnaya Presnya
CDC Belorusskaya
CDC Grokholsky
CDC Maryino
CDC Solyanka
+CDC Michurinsky
+CDC Shchelkovo
+2
+42
SISTEMA.RU 101
SISTEMA PJSFC / ANNUAL REPORT 2021
100 RESULTS OF KEY ASSETS MEDSI

Industry overview for 2021
In 2021, Russia's market of commercial
medical services grew by 15.8%, to RUB
753 bn, out of which RUB 263 bn (34.9%)
was recorded in and around Moscow.
The retail segment (self-pay patients) remains the main source of
commercial revenue, up 19.8% year-on-year, to RUB 567.5 bn. Self-pay
patients generate 58.9% of proceeds in Moscow and 75.3% in other
regions of Russia. Revenue from voluntary medical insurance (VMI)
is up 5% year-on-year, to RUB 185.9 bn, despite a 2.2% decrease in visits.
The increase in VMI revenue results from (1) growing prices of medical
services; (2) pandemic eects; (3) limited access to free medical services
(obligatory medical insurance, or OMI).
Covid-19 continued influencing the healthcare industry throughout
2021, with new pandemic waves and shelter-in-place restrictions driving
demand for telemedicine, home care services, PCR testing, and paid
vaccination.
For Medsi, 2021 was a year of strong growth across operational and
financial peormance metrics. Medsi's revenue is up 20.2%, to RUB 30.1 bn,
driven by higher occupancy rates, sustained demand for Covid-related
services, new openings in Moscow and other regions, the development of
telemedicine and home care services and the launch of the brand-new
SmartLab business.
Cancer care, Covid-19, surgeries and injury care dominated the company's
hospital business throughout the year, with total visits up 29%, to 10.1 m.
The average cheque, however, is down 5.9%, to RUB 2,954, largely due to
statutory price restrictions imposed on a range of state-subsidised (OMI)
services.
The self-pay business segment
demonstrated strong peormance in 2021
in terms of both revenue and visits. Medsi's
self-pay revenue is up 32.0%, well ahead
of the market average 19.8%. As of the
year-end, Medsi's share on the retail
healthcare market was estimated at 2.0%
nationally and 6.6% in and around Moscow.
Commercial healthcare market by geography , bn RUB
Commercial healthcare market structure (2021) , %
30.1
BN
RUB
MEDSI'S REVENUE IS UP 20.2%
driven by higher occupancy rates
32%
MEDSI'S SELFPAY
REVENUE GROWTH IN 2021
well ahead of the market
average growth (+19.8%)
2023
280
533
813
2022
272
511
783
2020
246
404
650
2019
250
441
691
2018
232
395
627
2016
207
326
533
ForecastFact
Russia Moscow & outskirts
Self-pay
VMI
Moscow & outskirts Other regions
1 Source: BusinesStat 2 Source: BusinesStat, company data
MARKET MARKET
MEDSIMEDSI
75%
59%
46%46%
54%54%
25%
41%
2017
218
358
576
2021
263
490
753
MEDSI'S MARKET POSITION
SELFPAY PATIENTS
Medsi's share of the Russian market , %
Medsi's market share in Moscow and its outskirts , %
Visits
2021
1.5
2020
1.3
Visits
2021
8.1
2020
6.4
Revenue
2021
2.0
2020
1.8
Revenue
2021
6.6
2020
5.4
RESULTS OF KEY ASSETS MEDSI SISTEMA.RU102 103
SISTEMA PJSFC / ANNUAL REPORT 2021

Revenue
Revenue
Medsi's share of the Russian market , %
Medsi's market share in Moscow and its outskirts , %
2021
2021
7.1
11.3
2020
2020
5.7
9.4
Visits
Visits
2021
2021
14.8
26.9
2020
2020
11.6
22.1
Medsi's VMI revenue in 2021 went up 5.0% year-on-year,
despite a 30.5% slump in visits. Medsi's share on the VMI
market as of year-end 2021 is pegged at 7.1% nationwide
and 11.3% in Moscow.
Although the average cheque amount decreased
under the pressure of government-imposed price
restrictions in the OMI segment, the negative eect
was oset by rising visits and brand-new laboratory
services.
Whereas the uptick in clinic occupancy is primarily
owing to a low-base eect (with patient activity
notoriously feeble throughout 2020), the decrease
in hospital occupancy is associated with a decline
in volume of services of the day hospital for
chemotherapy due to the limited volume of OMI.
Visits and services provided are also up YoY due
to the 2020 low-base eect, new openings and high
service quality. Service categories that commanded
the highest demand in 2021 are laboratory tests
and imaging studies.
Despite expectations, 2021 brought no decrease
in Covid-19 sales, with lab-test revenue at 99% of what
it was in 2020 and PCR testing a regular routine for
many. Revenue from hospital admissions remained
on par with 2020, with a particular upswing in Covid-19
related hospitalisations observed in 4Q. Although CT
scanning revenue went down 25% as patients gained
more access to free services in state-run clinics,
vaccination revenue oset the eect for Medsi.
VMI SEGMENT
Revenue
Revenue
Medsi's share of the Russian market , %
Medsi's market share in Moscow and its outskirts , %
2021
2021
0.22
1.7
2020
2020
0.29
1.2
Visits
Visits
2021
2021
0,011
0.1
2020
2020
0,013
0.1
Medsi's OMI revenue in 2021 is down 9.8%, with visits down
2.5% year-on-year. At the end of the year, Medsi's market
share in the OMI segment was estimated at 0.2% in Russia
and 1.2% in Moscow.
OMI SEGMENT
1 Source: BusinesStat, company data 2 Source: company data
Business development in 2021
MEDSI'S OPERATING PERFORMANCE 2021 2020 CHANGE, %
Total floorspace, thsd sq m 279.2 215.7 29.4%
Medical floorspace, thsd sq m 127.7 105.6 20.9%
Average cheque, RUB thsd 3.0 3.2 -6.9%
Hospital occupancy 87% 97% 15.8%
Clinic occupancy 55% 37% 35.4%
Services provided, m 21.2 13.9 36.0%
Total visits, m 10.1 7.9 29.1%
Hospital bed-days, thsd 268.8 275.9 -2.6%
Avg. hospital cheque, RUB thsd 32.2 30.4 5.9%
Visits to clinics, m 9.7 7.4 31.1%
Avg. clinic cheque, RUB thsd 2.0 2.0 -
Operating performance
2021 2020
Revenue 30 087 25 041
Insurance 54% 59%
Individuals 38% 35%
Corporate 5% 5%
Other 3% 1%
Revenue by channel , %
2021 2020
Revenue 30 087 25 041
Clinics 33% 32%
Hospitals 30% 35%
CDC 31% 27%
Other 6% 6%
Revenue by asset type , %
99%
COVID19 LABORATORY
TEST REVENUE
comparing with the
previous year
The 2021 floorspace increase primarily results
from the inauguration of a new Michurinsky
multi-specialty medical centre and the
acquisition of National Medical Chain clinics
in Ufa and Vologda.
MEDSI
RESULTS OF KEY ASSETS MEDSI SISTEMA.RU104 105
SISTEMA PJSFC / ANNUAL REPORT 2021

CHAIN EXPANSION
NEW SERVICES
DIGITAL
TRANSFORMATION
OPENING OF OUTPATIENT
CANCER CENTRES
ECOSYSTEM
DEVELOPMENT
Acquisition of 100% of shares in ProMedicina in Ufa and Dialine in Volgograd,
previously owned by National Medical Chain. Medsi received 31 clinics
(with an aggregate floorspace of 22,585 sq m), becoming a leading healthcare
provider in two economically attractive cities.
Opening of CDC Shchyolkovo, five "local clinics" and two franchise "family
clinics" in Moscow, a clinic in Rostov-on-Don, and another one in St. Petersburg
(where Medsi now has three facilities).
Opening of Michurinsky Multi-Specialty Medical Centre in Moscow. The new
33,475 sq m facility comprises a clinicodiagnostic centre for adults and children,
a hospital and a high-tech surgical centre. The company's investment in the
project exceeded RUB 8 bn.
Launch of SmartLab, a laboratory chain in Otradnoye (Moscow) with 2,000+
sq m in testing floorspace and a capacity to process 20m+ tests a year.
Medsi's total investment in the project exceeded RUB 400 m.
Opening of a children's hospital (with an area of 4,000+ sq m) in Otradnoye,
oering a full range of paediatric services. Medsi's total investment in the
project exceeded RUB 1 bn. The hospital relies on a "360-degree medicine"
principle, where outpatient, inpatient, rehabilitation and home care services
are centralised under one roof.
A fertility preservation programme for cancer patients launched at Medsi's
Centre for Assisted Reproductive Technology in Moscow makes Medsi one
of three healthcare providers in Russia possessing relevant expertise.
The new Eye Surgery Centre in Moscow oers a full range of high-tech
ophthalmological care.
A new centre of excellence in St. Petersburg specialises in the treatment
of giant melanocytic nevi in children.
A new cancer check-up programme QuickHelpClinic helps detect malignant
growth early on.
Launch of a SAP S/4HANA Cloud Private Edition process flow harmonisation
project. The plan is to consolidate all business processes in one intelligent ERP
system to reduce human error and increase the flexibility of planning and the
quality of services provided. The company's implementation partner in the
project is the Russian IT company Novardis.
A new outpatient cancer centre in Shchyolkovo (Moscow) has capacity
to receive 180 visits per shi and incorporates a 3-bed day-care hospital.
New cancer centres in Perm and Izhevsk oer diagnostic, treatment and
supportive care services.
In 2021, like in the years before, Medsi continued developing its digital plaorm
SmartMed, adding new online services for patients. The app showed strong
peormance over the year, with downloads reaching 376 k (up 53.6 k YoY), active
users 528 k (up 72.3%), and appointments through the app up 3.1x, to 2.5 m.
In September 2021, Medsi launched a remote psychological counseling
programme in partnership with the online therapy startup YouTalk (available
through SmartMed). The company also joined Sber Unity, an online VC plaorm
bringing together startups, corporations and investors.
In December 2021, Medsi partnered up with the AI developer Third Opinion
to implement a brand-new chest imaging analysis soware designed to
dramatically enhance the quality of radiography readings
Key events in 2021
MEDSI
RESULTS OF KEY ASSETS MEDSI SISTEMA.RU106 107
SISTEMA PJSFC / ANNUAL REPORT 2021

Financial peormance in 2021
Medsi's revenue growth by 20.2% year-on-year, to RUB 30.1 bn, was primarily
driven by higher occupancy rates, sustained demand for Covid-19 related
services, new openings in Moscow and other regions, the development of
telemedicine and home care services and the launch of the brand-new
SmartLab business.
Adjusted OIBDA increased by 5.3%, to RUB 7.3 bn, on the back of growing revenue
and proceeds from the Nebo Residence housing project (JV with Capital Group),
which alone brought the company RUB 1.4 bn in OIBDA in 2021 (and RUB 1.6 bn a
year before).
Adjusted net income is up 7.4%, to RUB 3.7 bn, on the back of the OIBDA increase.
RUB M 2021 2020 CHANGE, %
Revenue 30,087 25,040 20.2%
Adjusted OIBDA 7,255 6,888 5.3%
Operating income 3,978 3,704 7.4%
Adjusted net income
attributable to Sistema 3,721 3,464 7.4%
Financial results , RUB mRevenue, RUB bn
+20.2%
30.1
2021
25.0
2020
2020 2021
Adjusted OIBDA, RUB bn
+5.3%
7.3
2021
6.9
2020
2020 2021
3.7
BN
RUB
ADJUSTED NET INCOME
is up 7.4% on the back of the
OIBDA increase
4.0
BN
RUB
OPERATING INCOME
+7.4% year-on-year
INCREASING MARKET SHARE
IN MOSCOW AND OTHER REGIONS

Complete 11 investment projects launched, with clinics to
open in 2022.

Pursue M&A projects as the priority avenue of regional
expansion .

Launch a 5 thsd sq m radiology centre in Otradnoye
(Moscow).

Launch a 6 thsd sq m infectious disease hospital
in Otradnoye.

Develop laboratory facilities, add lab services and open
SmartLab oices in every region where Medsi is by now
present (all in 2022).
IMPROVED OPERATING EFFICIENCY

Streamline clinic/hospital referral procedures.

Introduce additional workflow standards and enhance
business manageability.

Adopt healthcare BI analytics.

Introduce standard algorithms for new openings
and integrations.
VERTICAL INTEGRATION

Create a centralised clinical diagnostic lab and
a nationwide chain of medical oices.

Develop reference centres for radiology, sonography
and imaging studies.

Create referral centres of excellence specialising
in cardiovascular disease, oncology, traumatology,
orthopaedics, neurology, paediatrics and other
sought-aer fields
ECOSYSTEM DEVELOPMENT AND R&D
2

Continue SmartMed upgrades, add new telehealth
services.

Develop a digital inteace for doctors to ergonomically
optimise workflow (with decision support and otherwise)
and enhance personalisation

Introduce biotech and genetic products

Develop industrial healthcare (in-house health services
for large industrial players)

Adopt a P5-Medicine model and add biohacking
& predictive products
Strategic goals
Medsi's multi-pronged strategy is aimed at creating Russia's first nationwide
healthcare provider oering a full range of medical services.
1 Mergers and Acquisitions.
2 Research and Development.
MEDSI
RESULTS OF KEY ASSETS MEDSI SISTEMA.RU108 109
SISTEMA PJSFC / ANNUAL REPORT 2021

Steppe AgroHolding is one of Russia's largest
vertically integrated agricultural players with
578 thsdha of land and a diversified asset porolio.
Steppe AgroHolding is among Russia's Top-6 land owners,
with assets located in the uniquely attractive Krasnodar,
Rostov and Stavropol regions in the Russian south.
A long-standing operational eiciency leader in crop
and dairy farming, Steppe AgroHolding also engages
in international trading in grain and niche crops, relying
on production sites in close proximity to major export ports
in southern Russia as a major competitive advantage.
SISTEMA'S
EFFECTIVE STAKE
91.3
%
Andrey Neduzhko
CEO
Ali Uzdenov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
Business model
Steppe AgroHolding uses a vertically integrated
diversified business model, where crop farming
as the central business is closely integrated with
logistics and international and domestic trading in
grain, niche crops, sugar and groceries.
High-quality assets in dairy farming make it possible
to process raw milk and produce pre-packaged
cheeses, ingredients and dairy products. Steppe
also processes its crops to produce plant-based
confectionery, eco products, plant proteins and
dairy alternatives.
1 BEFL.
2 Steppe AgroHolding plus RZ Agro.
100 %
STEPPE
100 %
STEPPE
50 %
RZ AGRO
No. 6
CROP FARMING
Base
segment
DAIRY
FARMING
SUGAR & GROCERY
TRADING
GRAIN TRADING &
LOGISTICS
PACKAGED CHEESE,
DAIRY AND PLANT-BASED
PRODUCTS
MARKET
POSITION
MARKET
POSITION
23.2 THSD
COWS
as of the end of 2021
87
THSD
T
OF MILK PRODUCED
IN 2021
No. 1
IN RUSSIA IN TERMS
OF MILK YIELD PER
COW
No. 1
IN TERMS OF NICHE
CROP EXPORTS
No. 6
1
IN RUSSIA BY
LAND AREA
45
THSD
T
OF PACKAGED CHEESES
AND DAIRY PRODUCTS PRODUCED
AND DISTRIBUTED IN 2021
10.4 THSD
LACTATING COWS
as of the end of 2021
1.8 M T
OF CROPS
HARVESTED
IN 2021
2
No. 1TOP-10 No. 1No. 1
BY PERCOW
YIELD
RESULTS OF KEY ASSETS STEPPE AGROHOLDING SISTEMA.RU110
SISTEMA PJSFC / ANNUAL REPORT 2021
111

Industry overview for 2021
1 Preliminary estimate.
2 Source: RosStat, UISIS.
3 Source: RusAgroTrans.
Gross grain and grain legume
harvest in Russia
2
, m t Grain exports (EAEU included)
3
, m t
2020/2021
51.1
2019/2020
45.6
2018/2019
45.4
2017/2018
56.0
2016/2017
37.0
2015/2016
35.4
2014/2015
32.0
SEASONS
DAIRY FARMING
Russia's raw milk output in 2021 reached 32.3 m t, up
0.2% year-on-year. The raw milk output of agricultural
companies increased by 1.5%, to 18.1 m t.
The increase is primarily due to the inauguration of new
dairy farms and gradual productivity advancements.
However, the rate of such output growth decreased
year-on-year due to the shutdowns of multiple
ineicient farms, resulting in an accelerated reduction
in the number of lactating cows used in the industry.
Agricultural companies produce 56% of all Russian milk,
the rest coming from private households.
The 2021 output of market-grade milk in Russia is
estimated at 23.7 m t, or 73% of all milk produced
nationally. The figure will likely grow further going
forward as more dairy farms appear and embrace
high standards of raw milk production.
Milk output
5
, m t Total lactating cows across farm categories
6
, thsd
2021
7,784
3,227
2020
7,898
3,271
2019
7,964
3,274
2018
7,942
3,283
2017
7,951
3,316
Corporate farms OtherCorporate farms Other
2021
32.3
18.1
14.1
2020
32.2
17.9
14.3
2019
31.4
17.0
14.4
2018
30.6
16.2
14.4
2017
30.2
15.7
14.5
Per-cow milk yield in the corporate
sector
4
, kg per year
2021
7,162
2020
6,872
2019
6,492
2018
6,091
2017
5,871
Russia's gross harvest of grain and grain legumes in 2021
is pegged at 121.4 m t, down 9% from 2020. The decrease
was due to lower harvest numbers in central Russia
and the Volga region, while the southern-Russia figures
continued to rise. Total grain and grain legume field areas
went down 1.9%, from 47.9 m ha in 2020 to 47.0 m ha in 2021.
An important landmark of the 2021/2022 crop season
was the introduction of floating export duties on wheat,
barley and corn, a governmental move aiming to establish
a "grain buer", with export duty proceeds
to be redistributed back to farmers in subsidies.
Russian grain exports in the 2020/2021 crop season
(including exports to the Eurasian Economic Union, or EAEU)
reached 51.5 m t, up 12.8% year-on-year.
A global leader in wheat exports, Russia exported 39.2 mt
in the 2020/2021 crop season (EAEU included), which
exceeds 20% of the global grain exports. In the first half
of the new 2021/2022 crop season, Russia exported 27.2 mt
of grain, including 21.8 m t of wheat, down 17% year-on-
year. The key importers of Russian grain are Egypt, Turkey,
Bangladesh, Iran, Saudi Arabia and other countries in the
Middle East and Southeast Asia1.
CROP FARMING
GRAIN TRADING
Land prices in Russia are generally on the rise, with investors
increasingly looking to acquire farmland. The trend will likely
continue in the long term due to the ongoing implementation
of advanced agricultural technologies, growing food
consumption, land shortages and an overall high investment
appeal of land assets, with local farmland prices potentially
on track to reach a par with other countries.
2021
121.4
2020
133.5
2019
121.2
2018
113.3
2017
135.5
2016
120.7
2015
2014
2013
2012
104.7
105.2
92.4
70.9
4 Source: UISIS.
5 Source: RosStat.
6 Source: UISIS, SoyuzMoloko.
RESULTS OF KEY ASSETS STEPPE AGROHOLDING SISTEMA.RU112 113
SISTEMA PJSFC / ANNUAL REPORT 2021

1 Source: Rosstat, SoyuzMoloko.
The Russian cheese market continues growing, with output
in 2021 going up 5.4%, to 602 thsd t. The industry remains
highly dependent on imports, which account for up to
30% of the market. That said, the potential for import
substitution and further enhancement of domestic output
is strong. Cheese consumption in 2021 totaled 860 thsd t,
up 5.3% from the previous year.
The development of the Russian cheese market is helped
along by imports substitution, an increased production of
pre-packaged cheeses and a consumption structure shi
towards greater prevalence of pre-packaged products,
on track to reach a par with other national markets.
Another source of market growth is the rising per-capita
consumption of cheese. Between 2014 and 2021, this
parameter went from 5.9 to 6.9 kg, in stark contrast to
20.4 kg in Europe, 17.9 kg in the US and 11.8 kg in Australia.
Further enhancement to a par with global values, the
cultivation of a consumer culture and the growing
prevalence of food services where cheese is an essential
ingredient will drive future cheese market evolution.
Russia’s gross pomaceous fruit harvest in 2021 went up
11%, to 2.6 m t, the result of recently planted orchards
edging towards design capacity and new intensive-type
facilities bringing their first fruit. That said, the area of
perennial pomaceous fruit plantings is down 5.6 thsd ha, to
226.2 thsdha. The national pomaceous fruit market is still
heavily dependent on imports, with 19% of fruit consumed
coming from outside Russia.
Cheese consumption in Russia
1
, thsd t
2021
602
258
2020
572
245
2019
540
221
2018
467
203
2017
860
817
761
670
641
464
177
Output Net imports
32.3
M
T
RUSSIA'S RAW
MILK OUTPUT
by the end of 2021
CHEESE MARKET FRUIT GROWING
Russia’s gross pomaceous fruit harvest
and apple imports
2
, thsd t
Gross pomaceous fruit harvest Apple imports
2021
2020201920182017
2,607
2,342
2,179
1,997
1,521
616
646
696
845
710
2.6 M T
GROSS POMACEOUS
FRUITHARVEST
by the end of 2021
2 Source: RosStat, UISIS.
RESULTS OF KEY ASSETS STEPPE AGROHOLDING SISTEMA.RU114 115
SISTEMA PJSFC / ANNUAL REPORT 2021

TRADING IN NICHE CROPS
In 2021, Steppe AgroHolding instituted a brand-new niche
crop trading business. In the first year of operation, the
business sold 208 thsd t of niche crops, an absolute record
high among Russian peers. In the first half of the new crop
season 2021/2022, Steppe AgroHolding re-established itself
as Russia's biggest exporter of peas and one of the top
exporters of mustard and chickpeas.
Niche crop trading is part of the company's strategy to
diversify its product and shipment porolio amid swily
changing market conditions.
TRADING IN SUGAR AND GROCERIES
Sugar and grocery trading is a logical extension of the crop
farming business, where Steppe AgroHolding -grown beets
are processed into Steppe AgroHolding -traded sugar
and staple ingredients for Steppe AgroHolding -made
processed products.
In 2021 alone, the company sold 306 thsd t of sugar and
groceries. A priority business line here is pre-packaged
groceries, branded and otherwise, a category that went
up 27% year-on-year, reaching 23.2 thsd t.
PRODUCTION OF PREPACKAGED CHEESE
AND DISTRIBUTION OF DAIRY PRODUCTS
AND DAIRY ALTERNATIVES
Consistent with its strategy's thrust towards enhancing
processing capacities, in 2021 Steppe AgroHolding
acquired the industrial assets of PiR Group, a major Russian
producer of pre-packaged cheeses and slice-on-slice
cheese for the HoReCa sector and a leading distributor
of dairy products and plant-based alternatives, selling
up to 45,000 t of products a year.
The business acquired comes with quality production
facilities and profound industrial expertise, becoming
a harmonious link in the process chain from raw milk
to processing to distribution. The dairy processing plant
in Vologda region is also among Russia's seven
businesses certified to produce the uniquely delicious
"Vologda Butter".
PiR's yet another business line is the production and
distribution of plant-based dairy alternatives, a food
category coming on strong both nationally and worldwide.
PiR Group has been a distributor of plant-based since the
national market first came into being in 2009.
Steppe AgroHolding's sales
of sugar and groceries, thsd t
Steppe AgroHolding's sales
of packaged groceries, thsd tSteppe AgroHolding's grain sales, thsd t
Business development in 2021
STEPPE AGROHOLDING'S MARKET POSITIONS
IN KEY SEGMENTS
For Steppe AgroHolding, 2021 was a year of improvements
across the entire spectrum of business lines. In addition
to a gross harvest of 1.8 m t+, the company yet again
established itself as the national No.1 dairy farm by
eiciency, while also taking steps on its ambitious plan to
launch and develop new dairy production facilities.
Steppe also established itself as a stronger grain trader
with a vibrant business, growing sales, and a brand-
new niche crop trading business, a market the company
ventured into in 2021, swily rising to the national No.1 status.
CROP FARMING
Steppe AgroHolding's land assets as of YE 2021 stood
at 578 thsd ha. The national No.6 by land area, the
company owns farmland in the Russian regions that
are most attractive in terms of climate, crop yield, and
logistical accessibility. A significant share of Steppe
AgroHolding's assets are owned or leased for a long term.
In 2021, the company harvested a record-high 1.8 m t
of agricultural crops (including ~1 m t of wheat), up 45%
from 2020. The achievement is in large part due to eicient
management and the adoption of the latest agricultural
technologies, IT solutions (AI-driven and otherwise) and
machinery (including autonomous vehicles).
DAIRY FARMING
As one of the leaders in dairy farming, Steppe operates
seven state-of-the-art farms with smart online control
systems. Out of a total of 23,240 cows, 10,405 are lactating,
up 56% (or 3,718 head) year-on-year. The total milk output
in 2021 went up 22% year-on-year, to 87.1 thsd t.
Among initiatives implemented in 2021 is a new dairy farm
in the Krasnodar region designed for 3,000 lactating cows,
scheduled to reach design capacity in 2022. A mega-farm
in the Stavropol region designed to accommodate as
many as 9 thsd lactating cows is now in the works, with new
animals arriving as we speak.
GRAIN TRADING AND LOGISTICS
Steppe's grain trading sales in 2021 totaled 1.7 6 m t, up 47%
from a year before.
The main eorts here went towards developing international
trading capabilities, which involves a partnership closed
with the Black Sea's leading broker Actava Trading and first
landmark import/export transactions. Progress made in 2021
alone increased the company's international grain trading
revenue by a factor of 3.
2017 2018 2019 2020 2021
269
1,115
1,198 1,200
1,761
2018
176
2019
307
2021
306
2020
330
2019
12.7
2021
23.2
2020
18.3
RESULTS OF KEY ASSETS STEPPE AGROHOLDING SISTEMA.RU116 117
SISTEMA PJSFC / ANNUAL REPORT 2021

Financial and operational peormance in 2021
In 2021, revenue grew by 74.1% year-on-year, to RUB 57.2 bn, mainly due to higher
crop-farming and grain-trading revenues, which in turn resulted from a higher
gross harvest, rising prices for agricultural produce, an eicient sales strategy,
strong eort being invested in international trading in grain and niche crops,
the launch of new business segments (such as the production of pre-packaged
cheese and the distribution of dairy products and plant-based alternatives)
and growth in dairy farming peormance.
Adjusted OIBDA went up 54.1% year-on-year as a result of higher operational
eiciency, increased crop yields, rising prices for agricultural produce, better
peormance in the international trading business, a successful development
of trading in niche crops as a brand-new business line, the production
of pre-packaged cheese and the distribution of dairy products and plant-based
alternatives.
CAPEX totaled RUB 4.2 bn, primarily spent on the construction and upgrades
of dairy farms, the acquisition of agricultural equipment and the development
of logistics infrastructure.
RUB M 2021 2020 CHANGE, %
Revenue 57,150 32,824 74.1%
Adjusted OIBDA 14,368 9,321 54.1%
Operating income 11,234 7,368 52.5%
Adjusted net income
attributable to Sistema 7,505 3,909 92.0%
Revenue, RUB bn
Adjusted OIBDA, RUB bn
+74.1%
+54.1%
57.2
2021
14.4
2021
32.8
2020
9.3
2020
2020 2021
2020 2021
Steppe AgroHolding: Production
Steppe AgroHolding's gross harvest
(RZ Agro included)
THSD T 2021 2020 CHANGE, %
Milk production 87.1 71.4 22.0%
Grain trading sales 1,761.4 1,200.0 46.8%
Sugar and grocery
trading sales
306.1 330.0 −7.2%
Pre-packaged product sales
(sugar & groceries)
23.2 18.3 26.6%
Niche crop trading sales 207.8 47.0 341.8%
THSD T 2021 2020 CHANGE, %
Wheat 965.1 647.8 49.0%
Sunflower 96.3 68.7 40.2%
Peas 88.1 59.1 49.0%
Corn 51.4 22.0 133.7%
Sugar beet 338.7 206.8 63.8%
Barley 45.3 56.8 −20.2%
Other 236.0 192.0 22.9%
Total 1,820.8 1,253.4 45.3%
Development strategy
Steppe AgroHolding's
development strategy aims
to further the evolution of the
company's key business lines,
which involves:
Acquiring more high-quality land
in southern and central Russia,
increasing operating eiciency and
adopting new technologies, including
AI and autonomousvehicles
Developing the
international grain trading
business, aiming at 50%+
of revenue to come from
abroad
Increasing the output of pre-
packaged and slice-on-slice
cheese for the HoReCa sector
and the sales of both dairy
products and plant-based
alternatives
Building and
commissioning new dairy
farms and increasing
livestock numbers and
high-quality milk output
Further enhancing the company's
standing as a sugar and grocery
trader by boosting sales (including
branded pre-packaged products)
and broadening product porolio
Driving projects to process
milk and produce plant-based
proteins and alternatives from
Steppe AgroHolding -grown
raw materials
SISTEMA.RU 119
SISTEMA PJSFC / ANNUAL REPORT 2021
118 RESULTS OF KEY ASSETS STEPPE AGROHOLDING

Antibiotics
Gastroenterology
Phlebology
Musculoskeletal
Cardiovascular
Anti cold
Other
Binnopharm Group is Russia's leading
pharmaceutical company specialising in the
development, manufacturing, promotion and sales of
drugs and medical products in the markets of Russia
and the CIS.
SISTEMA'S
EFFECTIVE STAKE
75.3
%
Rustem Muratov
CEO
Dmitry Zubov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
KEY FIGURES

450
MARKETING
AUTHORISATIONS FOR
DRUGS IN RUSSIA
5
PRODUCTION
FACILITIES

20-30
NEW MARKETING
AUTHORISATIONS PER YEAR
IN RUSSIA
1
st
PRODUCTION SITE TO
START MANUFACTURING
SPUTNIK V VACCINE
20 %
PRODUCTS ARE
MANUFACTURED
FROM INHOUSE
PRODUCED APIs
6
REPRESENTATIVE
OFFICES IN THE CIS
13
EXPORT
SEGMENTS
Business model
PRODUCTION
Binnopharm Group comprises production facilities across
Russia: JSC ALIUM (formerly OBL Pharm in the Serpukhov
district of the Moscow region), Binnopharm JSC (with its
two sites in Zelenograd and Krasnogorsk near Moscow),
SINTEZ PJSC (in the Urals city of Kurgan) and "Biocom"
JSC (in Stavropol in Russia's south). In aggregate, these
production facilities manufacture products in more than
200 pharmaceutical groups in various dosage forms
(tablets, capsules, gels, suppositories, infusion solutions, etc).
PROMOTION
Binnopharm Group's key advantage is the combination of
a diversified porolio of drugs and an eective system of
promotion through media tools, contracts with pharmacy
chains and medical and pharmaceutical representatives.
PRODUCT PORTFOLIO
The Group's diversified porolio comprises more than
450 marketing authorisations for drugs in the following
major medical areas: gastroenterology, cardiovascular
diseases, respiratory diseases, infectious diseases,
neurology, musculoskeletal disorders and dermatology.
Each of the 450 drugs accounts for 7% of revenue or less.
More than 100 drugs from Binnopharm Group's porolio are
included in the list of vital and essential drugs.
RESEARCH AND DEVELOPMENT
Binnopharm Group is doing continuous research aimed at
developing new drugs and expanding its product porolio.
The company has started construction of a modern R&D
centre in the Krasnogorsk district of the Moscow region
with a total floor area of 12,000 sq m.
The R&D centre will comprise two research units:

centre for development of synthetic drugs

centre for development of biotech drugs
The new R&D centre will employ 450 people. By 2025,
Binnopharm Group expects to launch more than
100 new products (dermatology, neurology, gynaecology,
pediatrics, etc).
Revenue breakdown by distribution, 2021
Retail porolio breakdown, 2021
Revenue breakdown by product type, 2021
Full range of dosage forms, 2021
24%
7%
69%
48%
24%
44%
47%
27%
17%
7%
14%
11%9%
7%
7%
12%
12%
4%
3%
8%
Retail segment
Public procurement
Export
Branded Gx
INN Gx
Original drugs
Tablets
Powder
Solutions
Capsules
Gels
Creams
Other
25.5
RUB BN
25.5
RUB BN
25.5
RUB BN
25.5
RUB BN
RESULTS OF KEY ASSETS BINNOPHARM GROUP SISTEMA.RU120 121
SISTEMA PJSFC / ANNUAL REPORT 2021

Industry overview for 2021
In 2021, the pharma market in Russia, including drugs
sold by pharmacy chains to the government sector,
grew by 12% year-on-year in monetary terms, up to
RUB 1,994 bn, and decreased by 9% in volume terms,
down to 5.9 bn packages. At the same time, drug sales
in the retail segment increased by 6% year-on-year in
monetary terms, reaching RUB 1,218 bn, and dropped
by 8% in volume terms, down to 5.1 bn packages.
Drug supplies in the public segment in 2021 totaled
828 m packages worth RUB 777 bn. The public pharma
segment grew by 24% in monetary terms and went
down by 11% in volume terms.
Development of the Russian
pharmaceutical market
1
, RUB bn
The rouble weakened amid changes in the macroeconomic
environment, driving growth in the production cost of
drugs with a high share of imported ingredients. In 2021, the
pharmaceutical market slowed down, as real household
incomes decreased.
At the beginning of 2021, sales of life-improving drugs (mostly
over-the-counter) were on the decrease, while the demand
for essential drugs rose. In 1Q 2021, the situation stabilised, and
the second half of the year saw a rise in consumer demand for
life-improving drugs. A new wave of Covid-19 in the autumn of
2021 prompted a rise in demand for antiviral drugs, while the
consumption of antibiotics didn't grow as fast as during the
initial waves of the Covid-19 pandemic in 2020.
The priorities of the government's policy in the pharmaceutical
industry until 2030 include:

import substitution (including substances; drugs from the
list of strategically important products; low-margin drugs
and medications that are in high demand in the domestic
healthcare segment, etc) to ensure sustainability of drug
supplies in Russia

ensuring the required growth of production capacity in the
pharmaceutical and medical segments to achieve the goals
of the government's policy, including with the help of targeted
financing of major construction projects from the federal
budget

developing a mechanism for securing the high quality of drugs
and medical products for the national healthcare system

creating and improving conditions for developing innovative
drugs and medical products
2018 2019 2020 2021
777
1,218
1,151
624
984
489
1,473
1,775
905
1,376
471
1,994
1 Source: AlPharm, audit of retail and public
pharmaceutical market, 2018-2021
Commercial segment Public segment
The main goal of the government's Pharma-2030 programme
is to increase the output of domestically manufactured drugs
and medical products twofold in monetary terms by 2030
vs 2021: up to RUB 1.5 tn. This goal can be achieved by means
of building scientific, technological and manufacturing
capabilities in the pharmaceutical and medical industries.
The government is also planning to stimulate the exports of
drugs and medical products, which are expected to reach
RUB311 bn by 2030.
Another focus area of the government's programme is
organising the production of pharmaceutical ingredients. By
the end of 2030, the government expects to increase the share
of strategically important drugs that are fully manufactured in
Russia up to 90%.
311
BN
RUB
EXPECTED EXPORT OF
DRUGS AND MEDICAL
PRODUCTS
By the end of 2030

1.5
TN
RUB
EXPECTED OUTPUT
OF DOMESTICALLY
MANUFACTURED DRUGS AND
MEDICAL PRODUCTS
By the end of 2030
RESULTS OF KEY ASSETS BINNOPHARM GROUP SISTEMA.RU122 123
SISTEMA PJSFC / ANNUAL REPORT 2021

FORMATION OF BINNOPHARM GROUP AND
CHANGES IN SHAREHOLDING STRUCTURE
In February 2021, Sistema and VTB Bank (Europe) SE via
Sinocom Investments Limited contributed their 56.2% stake
in PJSC Sintez (formerly known as OJSC Sintez) to the
equity of Binnopharm Group. At the same time Sistema,
VTB, and a consortium of investors comprising the Russia-
China Investment Fund (established by the Russian Direct
Investment Fund and China Investment Corporation)
and leading Middle Eastern funds (RCIF consortium)
contributed an 85.6% stake in JSC Alium to the equity of
Binnopharm Group. Following the transaction, Sistema's
eective interest collectively owned with VTB Group
stood at 79.0%, with another 15.8% held by RCIF consortium
and remaining 5.2% held by the minority shareholders-
individuals (minority shareholdings were partially acquired
by Sistema in April 2021).
In March 2021, Sistema Group acquired 32.4% stake in PJSC
Sintez from JSC National Immunobiological Company. In
May 2021, Sistema contributed this stake to the equity of
Binnopharm Group, increasing Binnopharm Group's interest
in Sintez to 88.6%. Following the transaction, Sistema's
eective interest collectively owned with VTB Group in
Binnopharm Group increased to 86.5%, with another 12.5%
held by RCIF consortium and remaining 1.0% held by the
minority shareholder-individual.
In June 2021, Sistema's wholly-owned subsidiary LLC
Sistema Telecom Assets sold an 11.2% stake in Ristango
Holding Limited, which owns 100% of the authorised capital
of Binnopharm Group to Nevsky Property Investments
Limited (controlled by VTB Capital). The total price tag of the
transaction was RUB 7 bn.
MODERNISATION PROJECTS AND CONSTRUCTION
OF NEW PRODUCTION FACILITIES
In February 2021, Binnopharm Group tripled its capsule
production capacity at Alium plant located in Obolensk,
the Moscow region, up to 15 m packages a year.
In August 2021, Binnopharm Group completed an
investment project for upgrading Biocom plant in
Stavropol. The total amount of investment in the
development of the production facility reached
approximately RUB 1 bn.
In December 2021, the company completed modernisation
of a sachet production line at Alium (in Obolensk, the
Moscow region), increasing its capacity to 50 m sachets
per annum. The company plans to gradually relocate
production of all medications in sachet form to Alium. Total
investments in the project amounted to RUB 100 m.
In February 2022, the company completed renovation of
Sintez plant in Kurgan that produces drugs in the form
of syrups and suspensions, driving overall production
capacity to RUB 6 m bottles a year, or three times the pre-
upgrade output.
In February 2022, Binnopharm Group launched design
works at the Sintez plant in Kurgan to build a modern
GMP/GDP pharmaceutical warehouse facility that will store
raw materials and finished products. The facility will be
divided into five areas with dierent temperature regimes,
it will also have a temporary warehouse for customs
clearance that will significantly optimise the logistics for
delivering imported materials to the plant.
R&D DEVELOPMENT
In September 2021, the company announced its plans for
creating a modern R&D centre in the Krasnogorsk district
of the Moscow region that will combine the research units
of all enterprises. The centre will develop synthetic and
biotech drugs.
INTERNATIONAL EXPANSION
In December 2021, the company announced its plans for
international expansion and opening of oices in the CIS:
Kazakhstan, Belarus, Azerbaijan, Moldova, Armenia and
Uzbekistan. The company has long been operating in the
CIS markets through partners, being a leader in the sales
of medical products among Russian companies. Opening
of representative oices abroad will make it possible
to create an in-house promotion service to speed up
development in these markets. The company expects its
export revenue to double by 2024.
PRODUCT PORTFOLIO EXPANSION
In 2021, Binnopharm obtained 27 marketing authorisations
in Russia and registered more than 30 drugs abroad. At
the beginning of 2021, Binnopharm Group and Glenmark
Pharmaceuticals Limited agreed to localise the production
of the antiviral drug favipiravir (which is used for the
treatment of Covid-19, among other deceases) at Alium
plant in Obolensk, the Moscow region, and at Biocom plant
in Stavropol.
In February 2022, Binnopharm Group signed an agreement
to purchase a manufacturer licence for antibacterial
drugs under the brands of Ciprolet and Levolet in
Russia, Uzbekistan and Belarus from the international
pharmaceutical company Dr. Reddy's.
Acquisition of these drugs will strengthen Binnopharm
Group's leadership in the antibiotics market, which is
a prirotity market for the company.
In July 2021, Sistema exercised its right and bought the
stakes in Ristango Holding Limited (which owns 100% of
the equity of Binnopharm Group) held by VTB for a total of
RUB 6.7 bn. In December 2021, Sistema exercised its right to
acquire RUB 9.06 bn worth of shares of Sinocom Investments
Limited from VTB Bank (Europe) SE through its subsidiary
LLC Sistema Telecom Assets. Sinocom held a 28.4% stake
in Ristango Holding Limited. Following the transaction,
Sistema's eective interest in Ristango Holding Limited
stood at 75.3%, with another 12.5% held by the consortium,
11.2% held by Nevsky Property Investments and remaining
1.0% held by the minority shareholder-individual.
Business development in 2021
RESULTS OF KEY ASSETS BINNOPHARM GROUP SISTEMA.RU124 125
SISTEMA PJSFC / ANNUAL REPORT 2021

Operations & investment development strategy Financial peormance in 2021
In 2021, revenue rose by 19.3% year-on-year due to increased penetration of
Binnopharm Group's products in various segments of the pharmaceuticals
market. Sales increased across all segments: retail, export and inpatient. The
inpatient segment was up 27% year-on-year, with export sales rising by 15%. Sales
in the retail segment increased by 20% year-on-year, the main growth drivers
being the products aimed at improving the quality of life of consumers: vein
tonic Angiorus, synbiotic Maxilac, antimicrobial and anti-inflammatory agent
Oflomelid and antispasmodic Neobutin.
In 2021, OIBDA jumped by 48.7% year-on-year amid growing revenue, tighter
control over administrative and selling expenses and optimisation of product
porolio. OIBDA margin grew by 6.3 p.p. year-on-year, up to 31.8%. Net income
soared by 72.9% year-on-year on the back of OIBDA growth.
By the end of 2021, net debt decreased by 16.9% year-on-year, down to RUB 7.6 bn.
Net debt /OIBDA went down from 1.7× in 2020 to 0.9× in 2021.
RUB M 2021 2020 CHANGE, %
Revenue 25,496 21,372 19.3%
OIBDA 8,113 5,456 48.7%
Operating income 5,691 4,081 39.5%
Net income 3,353 1,939 72.9%
7.6
BN
RUB
NET DEBT
By the end of 2021
72.9 %
NET INCOME GROWTH
FY 2021
Revenue, RUB bn
CLEAR STRATEGY WITH
MULTIPLE LEVERS
SUPPORTING FUTURE
GROWTH
OIBDA, RUB bn
+19.3%
+48.7%
25.5
2021
8.1
2021
21.4
2020
5.5
2020
2020 2021
2020 2021
Continue to organically
gain market share in fast
growing Russian Gx and
OTC markets
Actively enhance
product porolio: dierent
mixes, new launches,
category brands,
biopharma investments
Successful promotion
strategy increasing
salesforce eectiveness
via pharma and
medical representatives
Maintain focus on cost
competitiveness and
operational eiciency (new
launches of in house API,
R&D eiciencies)
Expansion in foreign
markets, to increase
presence in the CIS
countries
Inorganic growth
via value accretive
M&As
Binnopharm ambition is to build a
leading pharma company in the Eastern
Europe and CIS markets
SISTEMA.RU 127
SISTEMA PJSFC / ANNUAL REPORT 2021
126 RESULTS OF KEY ASSETS BINNOPHARM GROUP

Bashkir Power Grid Company (BPGC) is a dominant
power grid company in the Republic of Bashkortostan
and a provider of power facility engineering and
construction services.
SISTEMA'S
EFFECTIVE STAKE
91
%
Sergey Gurin
CEO
Dmitry Sharovatov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
100 %
IMPLEMENTATION
OF SMART GRID
TECHNOLOGY IN UFA
78
2
%
SHARE ON
BASHKORTOSTAN'S
POWER TRANSMISSION
MARKET
41 %
SHARE OF SAEM
Business model
360.8
THSD
PCS
SAEM
1
84.6
THSD
KM
LENGTH OF GRIDS
7.8
THSD
FTEs
HEADCOUNT
GAS HOMES
COAL OFFICES
FUEL OIL INDUSTRIAL
RENEWABLES
LLC BGK
INTER RAO
THERMAL
LLC BGK
INTER RAO
HYDROELECTRIC
LLC BASHKIR ENERGY SELLING COMPANY
BPGC
TRANSMISSION
GRIDS
BASHKIRENERGO
DISTRIBUTION
GRIDS
LLC BASHKIR
ENERGY SELLING
COMPANY
FUEL SUPPLY POWER
GENERATION
TRANSMISSION & DISTRIBUTION SELLING CONSUMPTION
1 Smart automated electric meters.
2 In terms of revenue.
14,706 PCS
NEW CONNECTIONS
BASHES.RU
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU128 129
SISTEMA PJSFC / ANNUAL REPORT 2021

In 2021, electricity consumption in Russia
grew 5.4% year-on-year, to 1,107 tn kWh,
with electricity generation up 6.3%,
to anew all-time high of 1,131 tn kWH,
primarily due to significant rises in both
domestic and international demand.
Although electricity consumption by
oil producers and refineries had been
decreasing throughout 1H 2021 under
pressure from the OPEC+ agreement
to reduce oil production, the trend
reversed in 2H, with net supply and power
consumption back on the rise.
BPGC leads the Russian electricity
grids market by operating eiciency,
maintaining high quality and reliability
of services despite lower average prices
and unit operating costs.
Bashkortostan's largest grid company, BPGC
is also the biggest investor in local market
infrastructure. In 2021, BPGC's investment in the
republic's infrastructure totaled RUB 3.68 bn
(net of VAT), out of which RUB 2.1 bn was applied
toward new connections.
Domestic demand for electricity climbed up as economy started emerging
from a lockdown, a trend further buoyed by the cold weather of 1Q and
heat waves of the summer of 2021. All types of power generation facilities
ramped up their output, with renewable energy generation growing
fastest and nuclear and hydropower plants hitting fresh highs in electricity
output.
Russia's electricity exports in 2021 increased YoY by a factor of 2.2, to 25
bn kWh. The Russian government approved a one-o 5% increase in retail
electricity taris for households and an annual 3.0% increase in those for
industrial users throughout 2021–2023 (eective from 01 July 2021).
In Bashkortostan, net electricity supply is projected to grow by 0.95 bn
kWh, or 6.3% year-on-year, including: (1) an additional 1.1 bn kWh for oil
producers (up 47%); and (2) an additional 0.15 bn kWh for oil refineries (up
8.2%).
Industry overview for 2021
Business development in 2021
GROWTH IN OUTPUT & EFFECT OF PRICE INCREASES
The overall supply of electricity to consumers and territorial grid
operators (TGOs) in 2021 went up 3.5%. While the increase was primarily
driven by the tapering of the OPEC+ production cuts, consumption in the
retail (household) segment also went up 4.1% year-on-year, to 3,117.8 m
kWh.
As Bashkortostan exceeded its designated cross-subsidisation volume
ceiling in 2021, the federal government decided to impose a freeze on
certain categories of local transmission rates. This resulted in zero (0%)
annual indexation of the grid maintenance component of two-part rates
and of one-part rates for high and medium-1 voltage levels, while the
power loss component of two-part rates was adjusted by +5.6%, eective
from July of 2021.
NEW CONNECTIONS
KEY PROJECTS
To enhance the reliability of power supply to consumers in the
republic's Beloretsky district, BPGC continued the construction
of the Uzyan-Bainazarovo 110 kV overhead power transmission
line, a project that will cost the company a total of RUB 325 m,
including RUB 60.4 m invested in 2021 in transmission towers.
Distribution grid upgrades
In 2021, the company spent RUB 917 m on
grid overhauls and upgrades aimed to
modernise the partly worn infrastructure
and eliminate failure threats:
14,706
CONNECTIONS TO POWER GRIDS IN 2021
up 7.1% year-on-year
as economic activity picked up
The company recorded

replacements of outdated switchgear with latest low-maintenance
remote-controlled solutions (3 sets in the 35-110 kV grid and 24 sets
inthe 0.4-10 kV grid)

microchip installations in the relay protection and automation
systems of 14 substations

overhauls of DC control power systems at 5 substations for greater
survivability and a better functioning of protection, automation and
remote-control systems

upgrades of telecontrol systems at 26 substations and installations
offibre optic communication lines
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU130
SISTEMA PJSFC / ANNUAL REPORT 2021
131

OPTIMISATION AND AUTOMATION
OFWORKFLOW AND OPERATIONS
SMART METER DEPLOYMENT: PLANS, RESULTS, ANDPOTENTIAL GAINS
In the vein of technological modernisation, the company
installed 25.4 thsd meters at the consumers' end
and at main substations, reaching a total of 327 thsd
smart meters at the end of 2021. This makes 41% of
the total number of meters (802 thsd) used by BPGC
for the commercial and technical metering of power
consumption.
BPGC's mid-term strategic plans are
aimed atgreater operating eiciency and
thefollowing specific goals:
Improved operating eiciency

Installation of smart electricity meters

Reduction of technical losses through newer
and more eicient technology and equipment
Digital transformation

Extensive programme to upgrade grid
infrastructure with advanced technology

Production of power grid equipment for
digitalisation projects

Comprehensive digitalisation intechnological
and managerial workflows
Business upscaling

Consolidation of grid assets in Bashkortostan,
including ones managed by territorial grid
operators

Signing up as manager for infrastructure
projects to monetise managerial expertise and
evolve into acentralised operator of heating,
water supply, and water disposal assets

Development of non-regulated business lines
leveraging expertise gained in grid assets (IT
services, power facility designing, outdoor
lighting,etc.)
BPGC spent 2021 working on the enhancement
ofoperating eiciency, which involved:

the implementation of a pilot automated workflow
management system SK11

the launch of a call centre voice assistant for customers

steps to optimise and automate connection costs
2021 marked the completion of the following automation
projects:

business intelligence data collection & reporting tools for
corporate use

compromised meter identification system (acollabora-
tion with MTS)
Strategic goals Financial peormance in 2021
Revenue is up 5.1% year-on-year, mainly due to electricity consumption
rising as business activity started picking up in the wake of the pandemic
and specifically as oil companies resumed active oil production in 2H 2021.
Part of the growth was also supplied by grid connection and engineering
revenue streams.
OIBDA is up 21.4% on the back of growing revenue along with a reduction
inprovisions for receivables to RUB 5.3 bn. Net income is up 53.6%, to
RUB1.8 bn. RUB 0.3 bn was distributed in dividends in 2021.
RUB M 2021 2020 CHANGE, %
Revenue 20,740 19,733 5.1%
OIBDA 5,319 4,381 21.4%
Operating income 2,457 1,574 56.1%
Net income attributable
to Sistema 1,804 1,174 53.6%
Revenue, RUB bn
OIBDA, RUB bn
+5.1%
+21.4%
20.7
2021
5.3
2021
19.7
2020
4.4
2020
2020 2021
2020 2021
2.5
BN
RUB
OPERATING INCOME
FY 2021
1.8
BN
RUB
NET INCOME
By the end of 2021
327,000
TOTAL NUMBER OF SMART METERS
By the end of 2021
RUB M UOM
2021 2020 DEVIATION
Bashkirenergo BGC Bashkirenergo BGC Bashkirenergo BGC
Power losses % 7.4 1.2 7.7 1.3 0.3 p.p. 0.1 p.p.
Power losses m kWh 1,588 313 1,582 308 0.4% 1.5%
Power in m kWh 21,327 25,926 20,662 23,441 3.2% 10.6%
Power out m kWh 19,739 25,613 19,080 23,133 3.5% 10.7%
New connections connections 14,706 1 13,727 − 7.1% −
Connected capacity MW 349 7.5 344 − 1.5% −
Financial results, RUB m
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU132
SISTEMA PJSFC / ANNUAL REPORT 2021
133

Business Nedvizhimost is one of the key players in Moscow’s
commercial real estate market, with a porolio of 79
properties. The company owns and manages a unique real
estate porolio in Moscow and St Petersburg, including
mansions in central Moscow and class B and C oice and
retail premises located in almost every administrative district
of Moscow.
SISTEMA'S
EFFECTIVE STAKE
100 %
Denis Beer
CEO
Sergey Egorov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM KEY HIGHLIGHTS
SISTEMABN.RU
~ 400
THSD
SQ M
TOTAL AREA
OF COMMERCIAL
REAL ESTATE
79
COMMERCIAL PROPERTIES
in Moscow and
St Petersburg
100 %
OF PROPERTIES
IN OWNERSHIP
ruBBB
+
CREDIT RATING
Expert RA
Business model
Main focus areas
ASSET MANAGEMENT
ASSET MANAGEMENT TO INCREASE CAPITALISATION AND
LIQUIDITY OF ASSETS AND TO OPTIMISE THE ENTIRE PORTFOLIO
OF OWNED AND MANAGED COMMERCIAL REAL ESTATE
PROPERTY MANAGEMENT
PROPERTY MANAGEMENT TO IMPROVE THE EFFICIENCY
OF ITS USE AND MAXIMISE NET OPERATING INCOME
FACILITY MANAGEMENT
OPERATION AND MAINTENANCE OF COMMERCIAL AND
RESIDENTIAL REAL ESTATE TO ENSURE GOOD CONDITION
AND AVOID ACCIDENTS
FLEXIBLE SPACE CHAIN OFFICELESS
READY-MADE OFFICES THAT MEET TODAY’S BUSINESS REQUIREMENTS: THE ABILITY TO
QUICKLY ACCOMMODATE EMPLOYEES WITHOUT CAPITAL EXPENDITURES FOR REPAIRS
AND FURNITURE, FLEXIBLE TERMS OF RENT AND A FULL RANGE OF SERVICES
THE COMPANY ALSO DEVELOPS THE OLYMPIC STAR FITNESS CLUB IN MOSCOW
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU134
SISTEMA PJSFC / ANNUAL REPORT 2021
135

Since the beginning of the year, the vacancy rate in class A decreased
by 2.3 percentage points to 9.5%. Thus, less than 480,000 sq m of oices
remain vacant at the moment. In class B, the vacancy rate is around
5.6%, 0.5 percentage points lower than in 2020. The total vacant space
in class B is 704,000 sq m. At the same time, the vacancy rate in class
A within the Moscow Ring Road already reached 6.5% (-1.7 percentage
points year-on-year).
Aer a period of market uncertainty
and reduced activity of developers,
with only 224,400 sq m of oice space
commissioned in 2020, commissioning
of oice space increased 2.6x in 2021,
to 587,000 sq m. This figure exceeds the
results in 2016–2020.
Total supply
1
Class A
49%25%
Industry overview for 2021
19.5
M
SQ M
New supply
1
587
THSD
SQ M
Oice space absorption – a key indicator of demand demonstrating
for a certain period the dierence between all the space that
became occupied and all the space that entered the market vacant–
increased significantly in 2021, to 701,500 sq m, vs 262,100 sq m in 2020.
Increased absorption rate is driven by both increased activity of
oice users, who not only change oice location but also increase the
occupied area, and new built-to-suit buildings, which are created for
a specific user and enter the market occupied.
Oice rental rates increased in both classes in 2021. In class A, the
asking rental rate for oices increased by 1.2% compared to the
beginning of the year and is now at the level of RUB 25,827 sq m a year
(excluding operating expenses and VAT). In class B, the rental rate
also increased by 2.5% compared to the beginning of the year, to RUB
17,556 sq m a year (excluding operating expenses and VAT). There is
an interesting trend regarding class A properties within the Moscow
Ring Road: the indicator has been steadily growing over the past
years, and over the past year the weighted average rate increased
by almost RUB 2,000 (+6.3% year-on-year), to RUB 32,988 sq m a year
(excluding operating expenses and VAT).
26%
Class B Class B-
Class A Class B
22%
78%
480
THSD
SQ M
THE TOTAL SPACE
OF OFFICES REMAIN VACANT
decreased by 2.3%
year-on-year
704
THSD
SQ M
THE TOTAL VACANT SPACE
IN CLASS B
in 2021
701.5
THSD
SQ M
OFFICE SPACE ABSORPTION IN 2021
vs 262,100 sq m in 2020
1 Source: Knight Frank
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU136 137
SISTEMA PJSFC / ANNUAL REPORT 2021

In 2021, Business Nedvizhimost adopted
its medium-term development strategy.
According to the strategy, the company’s
management will focus its eorts on
optimising the commercial real estate
porolio to increase its liquidity and
capitalisation. In 2021, a non-core asset
Mosdachtrest was spun o from Business
Nedvizhimost.
The company managed to lease out about
40,000 sq m in 2021. One of the key deals
was the lease of buildings at 11 Tushinskaya
St in Moscow with an area of more than
8,000 sq m to the Moscow Metro.
IN 2022, JSC BUSINESS NEDVIZHIMOST
PLANS TO IMPLEMENT THE FOLLOWING TASKS:

launch up to 3 flexible oice spaces under the Oiceless project in
Moscow with 1,800 workstations

maintain net operating income in the classic rental segment at 50%,
given temporary downtime during renovation and transfer of the
most high-margin properties to the Oiceless project

increase the eiciency of using space freed up by MGTS and
maximise operating income

sell non-core assets

develop a project of self-storage facilities at the company’s porolio
properties
Business development in 2021
The development potential in the traditional rental oices segment is
limited. The most attractive segment for the company’s development
is flexible workspaces.
According to JLL, flexible oice formats will take up to 30% of the oice
market in Europe by 2030. The segment of flexible oice spaces in
Russia is expected to grow at the rate of 22% per year. Rental rates for
flexible spaces exceed the rates for traditional formats (RUB 35 k/sq
m a year vs RUB 25 k/sq m a year). JSC Business Nedvizhimost plans to
capture up to 30% of the flexible oice space market and become a
leader in this market.
Global trends show that decentralised locations are in demand
among companies that have switched to a hybrid format of work,
because they provide convenient access for employees close to
their homes, while the location of properties allows maintaining
communication and mobility of employees. Flexible oice spaces
will be in demand among clients in the enterprise sector, while the
possibility of built-to-suit format will be relevant for companies
seeking to diversify their porolio of leased oice properties.
At the moment, there is a shortage of high-quality flexible work
spaces due to excess demand from large Russian and international
businesses, as well as a declining vacancy rate in the oice space
market due to insuicient new supply in 2021.
As part of the Oiceless project, JSC Business Nedvizhimost plans
to create a unique ecosystem for business and professional growth
– both an internal plaorm for residents and an external plaorm
for integration with the chain’s partners. Networking and informal
communication with the help of the Oiceless team will form a
business community of a new format.
By the end of 2025, it is planned to open up to 20 Oiceless locations in
Moscow and St Petersburg with 14,000 workstations.
20
OFFICELES
LOCATIONS
IS PLANNED TO OPEN UP
IN MOSCOW AND ST PETERSBURG
by the end of 2025
3
FLEXIBLE
OFFICE SPACES
JSC BUSINESS NEDVIZHIMOST
PLANS TO LAUNCH UP
In 2022
2021 2020 CHANGE, %
Revenue 4,164 6,296 -33.9%
Operating income 473 1,904 -75.1%
OIBDA 1,001 2,423 -58.7%
Net income -355 1,378 -
Financial results, RUB m
Financial peormance in 2021
The decline in revenue, OIBDA and income in 2021 was mainly
caused by the absence of significant sales of commercial real
estate. Despite the reduction in the area occupied by MGTS
equipment and the closure of two significant properties in
the second half of 2021 for the purpose of renovation as part
of the Oiceless project, the company managed to maintain
net operating income from leases at the level of 2020. OIBDA
decreased mainly due to the write-o of expenses previously
capitalised for the Territory project. The company's net profit
was aected by decreasing OIBDA and growing loan porolio.
INDICATOR 2021 2020 CHANGE, %
Area of commercial real estate
in Moscow, k sq m
371 380 -2.4
Area of commercial real estate
in St Petersburg, k sq m
26 26 -
TOTAL 397 406 -2.2
Structure of assets by region
The area of commercial real estate in Moscow decreased as a
result of the sale of the Zarya recreation centre.
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU138 139
SISTEMA PJSFC / ANNUAL REPORT 2021

COSMOSGROUP.RU/EN
Cosmos Hotel Group owns and manages a porolio
of 20 hotels in 15 cities of Russia and abroad, with a
total of approximately 4,600 rooms. Cosmos Hotel
Group is one of the largest hotel companies in Russia.
SISTEMA'S
EFFECTIVE STAKE
100
%
Alexey Akindinov
CEO
1
Alexander Shvein
CHAIRMAN OF THE BOARD
OF DIRECTORS
2
TEAM KEY HIGHLIGHTS
20
HOTELS UNDER
MANAGEMENT
in Russia
›
1.2
+ GUESTS IN COSMOS
HOTEL GROUP HOTELS
in 2021
4,653
ROOMS UNDER
MANAGEMENT
83.1 %
OF COSMOS HOTEL
GROUP’S REVENUE
ISGENERATED
in Russia
4,302 RUB
AVERAGE ADR
OF COSMOS HOTEL
GROUP HOTELS
Cosmos Hotel Group operates its own hotels and third-
party hotels. The company is developing rapidly through
the construction of new hotels under its own brand and the
execution of contracts for external management.
The company has expertise in managing hotels and
creating new hotels, as well as a single centre of excellence
(marketing, sales, procurement and accounting).
Business model
Cosmos Hotel Group oers a full range of value creation and
management services for hotel assets, from project consulting
and preparation of hotels for opening to cost-cutting and
capitalisation enhancement.

Cosmos Collection – unique luxury hotels and resorts.

Cosmos – modern urban hotels with developed infrastructure
and excellent service.

Cosmos Smart Hotels – bright ideas for budget urban hotels.

Cosmos Stay – modern aparthotels for extended stays and a
range of additional services.
1 As of 31 December 2021, Alexander Shvein.
2 As of 31 December 2021, Andrey Kolokolnikov.
M
51 %
AVERAGE OCCUPANCY
RATE OF COSMOS
HOTEL GROUP HOTELS
CLOTHES ECO STORES
CHILDREN'S CLOTHING LOUNGE
HOTELS
RETAIL
ECOMMERCE
SERVICES
TECHNOLOGY
TRAVEL
TRAINING CENTRE
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU140
SISTEMA PJSFC / ANNUAL REPORT 2021
141

Innovative solutions for hotel guests,
management and owners
GADGETS INSTEAD
OF KEYS
SOLUTIONS
FOR GUESTS
ORDERING SERVICES
VIA AN APP E-COMMERCE
VIRTUAL ASSISTANT
(CHATBOT)
INTERNAL
COMMUNICATIONS
VIA A GADGET
DIGITAL
LOYALTY CARD
“SMART” SYSTEM
FOR FACILITY
MANAGEMENT
SOLUTIONS
FOR BUSINESS
TECHNOLOGIES
AIMED AT REDUCING
HEAT LOSS

Saving up to 40% in electricity costs

Eliminating pipe bursts and small fire
outbreaks before real damage occurs

Saving on facility management costs thanks
to centralisation

Saving up to 30% in heating costs

Increasing the level of comfort
ONLINE MONITORING
OF BUILDINGS VIA
A SPECIAL INTERFACE
SOLUTIONS
FOR HOTEL OWNERS
ONLINE MONITORING
OF REVENUE
Hotel rooms in Moscow
Industry overview for 2021
In 2021, the hospitality industry demonstrated
its ability to adapt to the new reality caused by
the coronavirus pandemic, with key operating
indicators generally stabilising.
The hotel occupancy rate in Moscow did not fall below
50% amid a significant increase in domestic demand. The
ADR in 2021 in Moscow was 22% higher than in 2020 and
only 6.2% lower than in 2019. The St Petersburg market also
peormed better compared to 2020: the ADR increased by
5%, while the occupancy rate rose by 16 p.p.
The ADR of quality hotels averaged RUB 6,483 in Moscow
and RUB 4,480 in St Petersburg. The weighted average
occupancy rate of hotels was 60.5% in Moscow and 51% in
St Petersburg.
22
%
THE INCREASE OF ADR
IN MOSCOW
year-on-year
The fourth wave of COVID-19 in October-November 2021 once
again postponed the recovery of the usual demand structure:
the activity of the MICE industry in large cities decreased by
an average of 40%-60%, while the average booking window
decreased to 2-3 weeks. As a result, the seasonality of business
changed and it became more diicult for hotels to forecast
revenues and service loans.
5%
THE INCREASE OF ADR
IN ST PETERSBURG
year-on-year
Rooms available at the start of the year
Rooms added during the year
2013 201720152014
14,974
2019
778
2018
19,303
2016 20212020
2.4%
THE INCREASE OF ROOMS
IN MOSCOWHOTEL ROOMS
2021 vs 2020
1,003
13,791
1,661
17,645
1,237
15,937
1,143
128
20,084
471
17,174
497
20,482
270
20,212
SISTEMA.RU 143
SISTEMA PJSFC / ANNUAL REPORT 2021
142 RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS

Due to the ongoing pandemic, the opening dates of new
hotels get postponed: about 40% of projects were delayed
for a period of 6 to 12 months. Nevertheless, three new
quality hotels in Moscow (Hampton by Hilton Rogozhskiy
Val with 83 rooms, Vertical Boutique BW with 152 rooms
and Marriott Imperial Plaza with 268 rooms) and four in
St Petersburg (Wawelberg with 79 rooms, Holiday Inn St.
Petersburg with 158 rooms, Kravt Nevsky Hotel & Spa with 95
rooms and MARIA with 87 rooms) opened in 2021.
As of the end of 2021, there were 21,000 quality rooms in
Moscow and 26,000 rooms in St Petersburg. The most
attractive markets for hoteliers in 2021 were St. Petersburg,
Moscow, Sochi, Rostov-on-Don, Krasnodar, Yekaterinburg
and Kazan.
The key national players in the Russian hotel market are
Azimut (over 10,000 rooms under management), Amaks
(6,500 rooms) and Cosmos Hotel Group (4,600 rooms).
The leading international hotel chains operating in Russia
are Radisson (10,000 rooms), Accor (9,000 rooms), IHG
(7,000 rooms), Marriott International (6,500 rooms) and
Hilton (4,800 rooms).
Cosmos Hotel Group’s share in the supply of quality rooms
in Russia is more than 8%.
Most of the factors aecting the business of Cosmos Hotel
Group in 2021 were in one way or another related to the
ongoing COVID-19 pandemic, with the key factor being the
almost complete absence of inbound tourist flow.
The revival of the industry in 2021 was mainly caused
by the redistribution of tourist flows with domestic
tourism becoming the key driver of hotel occupancy. For
instance, the Moscow Aviation Hub’s passenger traic
from domestic commercial flights in 2021 increased by 8%
compared to the peak year of 2019. International passenger
traic also increased compared to 2020 but remains 65%
below pre-pandemic levels.
In general, 2022 is expected to be similar to 2021, as inbound
tourism remains scarce, vaccination rates in Russia are
relatively low, and agreements with other countries on
mutual recognition of vaccines have not yet been reached.
The market is expected to recover to 2019 levels no earlier
than the second half of 2023, with a full recovery of
business tourism by 2025.
The growth of domestic tourism will have a positive
impact on the hospitality industry and will help restore the
peormance of mid-price hotels.
Business development in 2021
Cosmos Hotel Group’s strategy is aimed at becoming a
leader in the Russian hotel market by the number of rooms
and by brand strength/recognition.
The strategy’s priorities are to vigorously expand the
porolio of hotel assets (owned and operated), improve
operational eiciency and develop Cosmos Hotel Group’s
umbrella brand (Cosmos Smart, Cosmos, Cosmos Collection,
Cosmos Stay, Cosmos Food, Cosmos Travel).
The company’s investment programme includes the creation
of 20 new urban and resort hotels under the Cosmos brand
with a total of more than 4,000 rooms. Cosmos Hotel Group
will continue its active expansion in the market of third-party
hotel management.
The company will continue to take measures to improve its
operational eiciency and strengthen the single centre of
excellence.
Cosmos Hotel Group implements high-tech solutions at all
stages of value creation: from planning and implementing
new projects to interacting with guests and owners of hotels
under management.
PLANS FOR 2022:

open two new own hotels in Segezha and Omsk and
two hotels owned by third parties (Hilton Garden Inn in
Moscow and PSB Patriot by Cosmos in the Moscow region)

start construction of new own hotels in Sheremetyevo,
Yekaterinburg, Sheregesh and near Lake Baikal

attract under management over 1,000 rooms owned
by third parties.
In 2021, a large-scale programme was launched to create
new hotels under the company’s own brand Cosmos:
the construction of 12 urban hotels and 8 resort hotels in
dierent regions of Russia with a total of 4,000 rooms is in
progress at various stages with a total budget of about
RUB 50 bn. The first hotels will open as early as 2022: a
3-star hotel in Segezha (Republic of Karelia) and a 4-star
hotel in Omsk.
Agreements in principle on joint implementation of new
projects were reached with strategic partners: JSC
Corporation Tourism.RF, PJSC Promsvyazbank and Baltros
Group.
The company entered into new contracts for 750 rooms
owned by third parties. Third-party hotels under
management operate under Cosmos Hotel Group’s
own brands, under international brands and under a
co-branding arrangement. As a result, the number of
rooms managed by the Company increased by 12%
compared to 2020.
In 2021, Cosmos Hotel Group was accredited to operate
hotels under the international brands Radisson, Hilton,
Intercontinental Hotel Group and Wyndham.
The company rebranded seven regional Park Inn hotels,
which now operate under the brand of Cosmos. A Member of
Radisson Individuals.
For the construction of new hotels, Cosmos Hotel Group
raises debt financing from leading Russian banks with
participation in the interest rate subsidising programme of
the Federal Agency for Tourism.
The company is implementing high-tech solutions at the
Cosmos Collection Izumrudny Les Hotel, including unmanned
taxi and food delivery to rooms using rovers with the
technical support from Yandex.
4
THSD
TOTAL NUMBER
OF NEW ROOMS
CONSTRACTED
in 2021
50
BN
RUB
TOTAL BUDGET
OF LARGESCALE
PROGRAMME
in 2021
Strategic goals
In the next three years, the company plans to create 12
urban hotels and 8 resort hotels in various regions of Russia
with a total of 4,000 rooms and a combined budget of
about RUB 50 bn.
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU144 145
SISTEMA PJSFC / ANNUAL REPORT 2021

2021 2020 CHANGE, %
Revenue 4,013 2,516 + 59.5%
Adjusted OIBDA 296 -85 -
Operating income -369 -1 893 -
Net income (loss) -614 -1 167 -
Financial results, RUB m
Financial peormance in 2021
In 2021, Cosmos Hotel Group’s financial peormance recovered
compared to 2020. The company’s revenue grew by 59.5%
year-on-year to RUB 4.0 bn due to the fact that most of the
pandemic-related restrictions imposed on hotels were lied,
whereas in 2020 hotel operations did not fully recover. The
growing exchange rates also had a positive eect on revenue.
Following a partial recovery in revenue, adjusted OIBDA
amounted to RUB 0.3 bn in 2021 compared to minus RUB 0.1 bn a
year earlier. Adjusted OIBDA margin was 7.4%. Adjusted net loss
amounted to RUB 0.6 bn.
2021 2020 CHANGE, %
NUMBER
OF ROOMS
4,653
4,162 +12%
Hotels in Russia 4,512 4,021 +12%
Hotels abroad 141 141 -
OCCUPANCY RATE OF THE
CHAIN’S HOTELS, INCL.
51.1%
36.6% +14.5 p.p.
Hotels in Russia 52.2% 37.2% +15.0 p.p.
Hotels abroad 22.5% 20.7% +1.8 p.p.
ADR OF THE CHAIN’S
HOTELS RUB, INCL.
4,302
3,639 +18%
Hotels in Russia 3,667 3,136 +17%
Hotels abroad 42,119 27,979 +51%
REVPAR OF THE CHAIN’S
HOTELS RUB, INCL.
2,197
1,331 +65%
Hotels in Russia 1,913 1,166 +64%
Hotels abroad 9,458 5,783 +64%
Operating results
The average occupancy rate of Cosmos Hotel Group hotels in
2021 was 51.1%, which is 14.5 p.p. higher than in 2020 and 15.5 p.p.
lower than in the pre-pandemic year of 2019.
The chain’s ADR in 2021 increased compared to the level of 2019-
2020 and amounted to RUB 4,302 both due to rising prices in
foreign hotels caused by the euro’s appreciation and due to
higher ADR in Russian hotels, which confirms the trend towards
growing domestic tourism.
In the reporting period, the chain’s RevPAR amounted to RUB
2,197, which is 65% higher than in 2020 and only 8% lower than in
2019. The growth was driven by market recovery and increased
demand.
Cosmos Hotel Group increased the number of rooms in 2021 by
signing contracts for 750 rooms owned by third parties.
51.1 %
AVERAGE OCCUPANCY
RATE OF COSMOS HOTEL
GROUP HOTELS IN 2021
which is 14.5 p.p. higher
than in 2020
2,197
RUB
AMOUNT OF THE
CHAIN’S REVPAR
IN THE REPORTING PERIOD
which is 65% higher
than in 2020
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU146
SISTEMA PJSFC / ANNUAL REPORT 2021
147

SITRONICS.COM
Sitronics Group is a vertically integrated IT holding
company oering a broad range of digital
transformation solutions for B2B and B2G customers.
SISTEMA'S
EFFECTIVE STAKE
100
%
Nikolay Pozhidayev
CEO
Alexey Katkov
CHAIRMAN OF THE BOARD
OF DIRECTORS
TEAM
OTHER CONSOLIDATED ASSETS
SITRONICS GROUP'S KEY BUSINESS LINES ARE:
IT SERVICES FOR B2B AND B2G
CUSTOMERS
DEVELOPMENT OF INTELLIGENT
MARINE SOLUTIONS AND HIGHTECH
NAVIGATION PRODUCTS
MANUFACTURING OF INFORMATION,
COMPUTER AND TELECOM ICT
EQUIPMENT
COMPREHENSIVE SMART CITY
PROJECTS
MANUFACTURING OF INFORMATION,
COMPUTER AND TELECOM ICT
EQUIPMENT
DEVELOPMENT OF ELECTRIC VEHICLE
CHARGING INFRASTRUCTURE
29 200 000 000
REVENUE IN 2021, RUB
top 25
IT COMPANIES
IN 2020 ACCORDING
TO CNEWS
AMONG RUSSIA'S
KEY HIGHLIGHTS
79 %
CAGR REVENUE
IN 20182021
2.5
BN
RUB
ADJUSTED OIBDA
IN 2021
›
1,500
EMPLOYEES
›
400
PARTNERS
No. 2
MICROSOFT PARTNER IN
CORPORATE LICENSING
LSP IN RUSSIA
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU148 149
SISTEMA PJSFC / ANNUAL REPORT 2021

Business model Industry overview for 2021
Global IT market, USD m
Sitronics Group uses a business model that is standard
for the IT industry and employs traditional tools for communicating
its value proposition, including implementation advice, system
integration, the installation and maintenance of hard- and soware
and the development and implementation of comprehensive projects.
The company also possesses unique know-how in the spheres
of marine navigation and the manufacturing of small-size spacecra,
which can serve as independent sources of information for further
services and solutions.

Space industry

Oil and gas industry

Telecommunications

Retail

Timber industry

Transport and logistics

Banks and insurance
companies

State organizations and law
enforcement agencies

Machine engineering

Healthcare

Construction
INDUSTRIES

Design and manufacture
of satellite spacecra
weighing from 1 to 200 kg

Computer vision

Infrastructure for electric
vehicles

Big Data

Industrial Internet of Things

Autonomous unmanned
air system

In-house production
of server hardware

Intelligent transport systems

Automated production
complexes

Digital complexes
for maritime navigation
TECHNOLOGIES

Soware development
and implementation

Design and implementation
of computing complexes

and data storage systems

System integration, support,
IT outsourcing

Information security

Design and construction
of communication networks

Design and construction
of data centers

Development and production
of radioelectronics

Providing digital services
for shipping traic

Development and production
of microsatellite and
nanosatellite systems

Providing services based on
the Earth Observation data
COMPETENCES
Although Russia's share in dierent segments
of the global IT market varies within the modest
range of 0.6% to 2%, its annual growth rate
in 2021 (preliminary estimated at 10-15%) is almost
the double of that of the global market.
According to the market intelligence firm IDC,
the Russian IT market in 2020 totaled RUB 1.8 tn,
with hardware generating 65% of total revenue.
The IT research agency Gartner estimates the global ICT
market at year-end 2021 at USD 4.2 tn, up 7.7% from 2020,
with the strongest growth observed in enterprise soware
sales (up 14.4% year-on-year).
The global IT market is characterised by a deep penetration
of IT services, with hardware generating an increasingly small share
of total revenue.
2020 2021 2022 2023
ForecastFact
3.9 TN
1,396,334
1,071,281
696,990
517,834
194,200
+7.7%
+7.1%
+4.4%
4.2 TN
1,444,324
+3.4%
1,186,103
+10.7%
787,417
+13.0%
604,946
+14.4%
216,337
+11.4%
4.7 TN
1,494,167
+2.2%
1,391,742
+8.8%
804,253
−1.2%
751,937
+12.0%
237,021
+4.7%
4.5 TN
1,462,717
+1.3%
1,279,737
+7.9%
813,699
+3.3%
671,732
+11.0%
226,475
+4.7%
1 IT services include system integration, advisory
services, soware development, firmware
development and maintenance, and IT training.
Data Centres
Enterprise soware
Hardware
IT services 
Telecom
SISTEMA.RU 151
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150 RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS

MTC
Russian IT market, RUB bn

global shortages of electronic components and limited access
to foreign-made electronics

limited access to foreign soware, with domestic solutions
dependent on foreign open-source products

strong demand for IT talents globally and shortage of skilled
professionals
BARRIERS AND RISKS PREDICTED
TO CONTAIN IT MARKET GROWTH
IN THE MIDTERM
Industry players estimate the Russian government digitalisation market
to have grown 30% year-on-year, with government's eort to automate
public administration eectively driving digital transformation across
multiple spheres of life, and government projects responsible for roughly
one-third of all soware development contracts signed nationwide.
In the mid-term, the Russian IT-market evolution will continue to be
driven by accelerating import substitution initiatives in both soware
and hardware space as well as a growing digitalisation of public
administration and strategic industries. The national programme Russia's
Digital Economy requires that the percentage of domestically developed
soware being procured from 2024 on reach a least 90% for government
agencies and 70% for state-owned businesses.
+
30%
GROWTH OF THE
RUSSIAN GOVERNMENT
DIGITALISATION MARKET
year-on-year
ForecastFact
2020
1,889
1,215
406
268
2025
2,333
1,451
498
384
2024
2,240
1,410
479
351
2023
2,143
1,361
462
320
2022
2,088
1,343
449
296
2021
2,132
1,417
434
281
Hardware IT services Soware
1 Source: IDC, preliminary estimates of industry players in 2021.
Business development in 2021
A lack of visible advancements in Sitronics's operating
peormance in 2021 is primarily due to a recent revision
of the group's strategy and the establishment of new business
segments whose first economic eects will only come
to fruition in 2022–2025.
KEY BUSINESS
INITIATIVES IN 2021
Three trials of a new autonomous marine navigation system
on commercial vessels.
Three launches of CubeSat satellites to support scientific research and refine
on plaorm capabilities.
Establishment of a brand-new charging-stations business line and the launch
of a related user app Sitronics Electro for e-vehicle owners (currently available
in Moscow and Nizhny Novgorod).
Launch of the production of Sitronics-designed servers as part of the national
import substitution programme.
2021 was a transformative year for Sitronics Group, with corporate development
strategy taking a swing from a niche telecom integrator to a vertically
integrated ICT holding company possessing a broad array of unique expertise.
As part of the process, the company established new business lines and
conducted several M&A deals:
In February, JSC Sitronics acquired 100% of shares in JSC Kronstadt Technologies
(Sitronics KT), enriching its product porolio with high-tech marine navigation
and logistical management solutions.
In May, Sitronics KT presented its unmanned marine navigation technology
to the International Maritime Organisation (IMO). The technology is being tested
as we speak on three commercial vessels.
Sitronics KT also received an order from the shipbuilding industry department
of the Russian Ministry of Industry and Commerce to develop e-navigation
services (geoinformation etc.) to be integrated in shore- and ship-based
systems.
In April a rebranding carried out, gave all entities within the group a common
Sitronics name.
OTHER CONSOLIDATED ASSETS
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU152 153
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MTC
KEY BUSINESS
INITIATIVES IN 2021
SITRONICS GROUP IS AN
ACTIVE MEMBER OF A
NUMBER OF PROFESSIONAL
ASSOCIATIONS
In November, the company launched the production of computer servers
in Novosibirsk as part of the national import substitution programme. The first
product line uses x86 architecture, and the facility has capacity to produce
30K+ servers a year.
In 2021, Sitronics Group acquired a 75.0% equity stake in the private Russian
space company Sputnix. In the future, the company plans to provide digital
services to a broad range of customers using data from low-orbit satellites.
The company also started an e-vehicle charging business, with pilot
infrastructure successfully deployed in multiple Russian regions (including
Moscow).
In May 2021, Sitronics Group's president Nikolay Pozhidayev joined the
supervisory board of the non-profit Telecom Technologies consortium,
established to support the national telecom hardware manufacturing industry.
In December 2021, Sitronics Group joined the AI Ethics Code prepared by the
national AI Alliance where Russia's leading tech companies make concerted
eort to develop and implement AI solutions for educational, research and
business applications.
STRATEGIC FOCUS AREAS

development of a porolio of proprietary products for industrial
and urban digitalisation

growth acceleration via new IT products and services

active involvement in the national Northern Sea Route
development project with autonomous navigation solutions

formulation and implementation of ESG principles across
the product porolio
SITRONICS GROUP'S INVESTMENT
PROGRAMME PROVIDES FOR

acquiring assets complementary to the Group's existing businesses

investing in proprietary product developments
Strategic goals
Sitronics's new development strategy
aims to build a leading ICT holding
company possessing unique expertise
across an array of IT domains. That
involves a corporate transformation
from a niche telecom integrator into
a provider of a broad range
of products and services (including
proprietary Sitronics solutions)
for attractive markets.
OTHER CONSOLIDATED ASSETS
RESULTS OF KEY ASSETS OTHER CONSOLIDATED ASSETS SISTEMA.RU154 155
SISTEMA PJSFC / ANNUAL REPORT 2021

VENTURE CAPITAL
FUNDS
SISTEMA'S
EFFECTIVE STAKE
98
%
Dmitry Filatov
CEO
TEAM KEY HIGHLIGHTS
45
THSD T
OF PREPACKAGED CHEESES AND
DAIRY PRODUCTS PRODUCED AND
DISTRIBUTED IN 2021
Sistema Venture Capital is a venture capital
fund investing in growth-stage high-
tech companies capable of transforming
conservative industries with tech solutions or
creating new market niches.
Overview of the VC market in 2021
INVESTMENT FOCUS
Deep tech projects:

Projects using AI-based computer vision solutions for
face and object recognition tasks in cybersecurity,
agriculture, construction, real estate and other
industries

Projects using machine learning to process data and
improve the eiciency of data use

Projects with data transmission and processing
technologies (SDN, NFV and SQL GPU Database)

Projects in the segments of education, e-commerce
and C2C services.

Priority investment stages: Late seed, Series A, Series B.
EUROPE
In 2021, VC funding to European startups
1
basically doubled
and amounted to EUR 100 bn vs EUR 46 bn in 2020. With this
impressive growth, the European VC ecosystem entered a
mature stage, just like the US and China. The share of late-
stage rounds in the total volume of VC investments was
70%, which also indicates the maturity of the market. The
UK, France and Germany remain Europe’s largest venture
capital markets and systematically produce unicorns,
which have tripled in number since 2018.
RUSSIA
In 2021, the Russian venture capital market generally
followed the global trends and grew to RUB 80 bn. As
in the previous year, this growth was mainly due to
foreign investments in companies with founders from
Russia. Such deals accounted for more than 50% of the
market. Following the reform of development institutions
announced by the Russian Government in 2020, the activity
of funds with state participation decreased considerably.
In 2021, investments representing the state segment
amounted to only RUB 2.3 bn vs RUB 3.9 bn a year earlier
2
.
AKVA Group (Norway)
acquired the stakes of
financial investors in
Observe Technologies,
a company specialising
in computer vision
technologies for industrial
fish farms.
Sberbank acquired a
100% stake in GOSU Data
Lab, an AI-based training
plaorm for competitive
gamers.
Shutterstock (USA)
acquired UK-based
DataSine to strengthen
its artificial intelligence
(AI) division. DataSine
uses AI to build a user’s
psychological profile.
MTS signed a definitive
agreement to acquire a
100% stake in VisionLabs, a
leading Russian developer
of facial recognition
technologies.
The transaction was
closed in February 2021.
The transaction was
closed in July 2021
The transaction was
closed in July 2021.
The transaction was
closed in February 2022.
10
BN
RUB
TARGET FUNDSIZE
2016
YEAR ESTABLISHED
INDUSTRIES
FUND LIFE
TARGET RETURNS
GROWTHSTAGE
TECH COMPANIES
NO FIXED TERM
20-25 %
The first fund of Sistema Venture Capital
completed the investment phase and
began active sales of its porolio
companies in the reporting year.
PORTFOLIO COMPANY
BUYER
EXITS
›
40,000,000 USD
PORTFOLIO COMPANIES RAISED IN 2021
1 According to PitchBook.
2 Source: RBC.
RESULTS OF KEY ASSETS SISTEMA_VC SISTEMA.RU156 157
SISTEMA PJSFC / ANNUAL REPORT 2021

AWARDS
The annual ceremony of Russia PE&VC Awards
took place during the 13th Russian Congress
of Private Equity and the 9th Forum of Venture
Investors in Moscow.
This is one of the main events dedicated to the
PE and VC industry in Russia and the CIS. The
team of Sistema Venture Capital was awarded
as the best team in Russia’s VC market, while its
successful exit from GOSU, an AI-based training
plaorm for esports athletes, was named the
Exit of the Year.
KEY PARTNERSHIPS
HeadHunter Group invested USD 5 m in YouDo, a
porolio company of Sistema Venture Capital,
to jointly develop the YouDo for Business
plaorm. This plaorm helps legal entities enter
into contractual relations with self-employed
individuals.
A PLATFORM THAT USES MACHINE
LEARNING TECHNOLOGIES TO TARGET
DIGITAL ADVERTISING

The most accurate targeting
because of combination of
online and oline data.

One of the largest
programmatic advertising
plaorms in Russia.

Unique position in the market
due to access to data of MTS
and Sberbank
AN INDEPENDENT DEVELOPER OF
GAMES FOR EDUCATION.
Luden.io games are played by
over 4.7 m users.
A FREE GAMEBASED COURSE FOR
AUTISTIC CHILDREN THAT PROVIDES
ACCESS TO DISTANCE LEARNING AND
DOING HOMEWORK.
Developed with and for autism
professionals.
ULTRAFAST PROCESSING OF BIG
DATA TO IDENTIFY TRENDS IN
TELECOM, RETAIL AND FINANCE.
PARTNERS:
Alibaba Group, Mangrove Capital,
Hanaco Ventures.
Five AI
A PLATFORM FOR THE DEVELOPMENT
AND TESTING OF TECH SOLUTIONS
FOR SELFDRIVING CARS.
PARTNERS:
Lakestar, Notion, Trustbridge,
Kindred, Amadeus Capital Partners.
ARTIFICIAL INTELLIGENCE TO
OPTIMISE THE SUPPLY OF GRAIN
CROPS.
PARTNERS:
ABInBev, Notion, IQ Capital,
University of Cambridge (Judge
Business School).
CONSTRUCTION AUTOMATION
POWERED BY DRONE DATA.
PARTNERS:
Engeo, Independent Construction,
Fivepoint, Lennar, Sibur, Morton,
Norilsk Nickel.
Overview of the fund’s assets
AI ASSISTANT FOR FARMERS AND
ANALYTICS FOR THE DAIRY INDUSTRY.
Increasing productivity and
product quality by reducing the
use of antibiotics.
Growth in annual farm profits by
an average of EUR 30,000.
PARTNERS:
Danone, Monsanto-Bayer and
Rabobank.
DIGITAL TWINS OF INFRASTRUCTURE
FACILITIES: PRECISE SOLUTIONS
BASED ON DATA FROM MULTIPLE
SOURCES, NOT ASSUMPTIONS OR
PERSONAL EXPERIENCE
The company’s core product is
Mapp, a cloud-based plaorm.
SenSat operates on a SaaS
model, with customers paying to
interact with digital copies using
Mapp.
PARTNERS:
Tencent, Heathrow, Murphy,
National Grid, Highways England.
SOLUTIONS THAT HELP COMPANIES
BUILD NETWORKS WITH THE
FLEXIBILITY AND SCALABILITY THAT
THEY NEED TO BE READY FOR 5G, THE
IOT AND THE FUTURE OF THE DIGITAL
WORLD.
PARTNERS:
Intel, Mail.ru Group, Telefonica,
Lenovo, Hewlett Packard.
Wimark
CLOUD SOLUTIONS FOR MANAGING
MULTIVENDOR WIFI NETWORKS.
A solution for managing access
points from dierent vendors.
Customers retain the ability to
independently plan, configure
and administer multi-vendor
networks from a single centre,
save on network deployment
and make money on Wi-Fi
services.
PARTNERS:
Beeline, MegaFon, MGTS, QTech.
A SIMULATOR OF A MACHINE
LEARNING SPECIALIST WHO USES
VISUAL PROGRAMMING TO MAKE HIS
AND HIS CAT’S LIVING.
The game is actively used by
schools and universities for
educational purposes. All tasks
in the game correspond to
the logic of real-life machine
learning development. WTL was
included in Apple’s list of the
best mobile games for players
stuck at home.
THE BEST HOTEL DEALS WORLDWIDE
BY SUBSCRIPTION.
FinalPrice invites users to
subscribe and book hotels at
the best prices. Customers
can save from hundreds to
thousands of dollars compared
with a regular buyer at Expedia,
Priceline, Booking.com, etc.
AN INTERNATIONAL COMPANY CREATING
SCIENTIFIC AND EDUCATIONAL
PRODUCTS FOR CHILDREN:

MEL Science kits are used
by families and schools in 40
countries

The bulk of the company’s sales
come from the US

Chemistry and physics
experiment kits are suitable for
children aged 5 to 14years
MARKETPLACE OF DOMESTIC AND
BUSINESS SERVICES

YouDo is an active
participant in the formation
of a culture of the self-
employed in Russia

One the top 20 most valuable
Internet companies in Russia
in 2019 according to Forbes
71
M
MOBILE DEVICES
AUDIENCE
›
1.5
M
CONTRACTORS
200
M
USER PROFILE
COVERAGE
›
1
M
REVIEWS ON THE
QUALITY OF SERVICES
PARTNERS:
Sberbank, MTS, Lukoil, Toyota, Huawei, Acer, IVI, HP, Kaspersky.
PARTNERS:
Ozon, IKEA, hh.ru
RESULTS OF KEY ASSETS VENTURE CAPITAL FUNDS SISTEMA.RU158 159
SISTEMA PJSFC / ANNUAL REPORT 2021
159

SISTEMA'S
EFFECTIVE STAKE
66 %
120
M
USD
8
+
2
3
×
2015
42,000,000
USD RAISED FROM PRIVATE AND INSTITUTIONAL INVESTORS IN 2021
KEY HIGHLIHTS
Sistema Asia Fund (SAF) is Sistema's venture
fund which invests in high-tech companies in
India and Southeast Asia.
Business model
Overview of venture
capital market in India
and China
Sistema Asia Fund invests in companies at various
growth stages in the markets of India and Southeast
Asia. SAFis focused on investments in high-tech
companies that operate in the sector of technology
products and services and also invests in other
types of businesses and consumer brands that use
technologies as their key competitive advantage and
operate in India and/or have significant presence in
the Indian market.
In 2021, investors began to invest more in Indian
startups, with more than 30 IPOs of companies from
this country.
The long-running competition between the Chinese
and Indian venture capital industries for the attention
of foreign investors entered a new stage in the summer
of 2021, when investments in Chinese startups fell
from USD 17.3 bn in June to USD 4.8 bn in July, but
investments in Indian startups rose from USD 1.6 bn to
USD 8 bn over the same period.
In the third quarter of 2021, India had 10 new unicorns,
second only to the US. In 2021, the total number of
unicorns in India increased to 44.
India is also keeping up with international VC trend
for “decacorns” (privately held startups valued at USD
10 bn or more), with Byju’s (an EdTech startup) valued
at USD 18 bn and Paytm (a payment gateway and
e-commerce plaorm) valued at USD 16 bn.
According to Pitchbook, Indian tech startups raised
USD23.5 bn in 2021, nearly double the amount collected
in the previous two years.
The top three invested sectors in 2021: FinTech (Pine
Labs, OfBusiness, BharatPe and CRED), EdTech (Byju’s,
Eruditus and Unacademy) and SaaS (Gupshup,
Postman and BrowserStack). India’s technology sector
that is being created now can make the country’s
economy No 2 or No 3 in the world in 20-25 years. This
sector will allow the country to repeat the success of
China in a shorter time.
TARGET FUNDSIZE
YEAR ESTABLISHED
FUND LIFE
TARGET FUNDING ROUNDS
GEOGRAPHY
YEARS AS DECIDED BY
SHAREHOLDERS
CASHONCASH
TARGET RETURNS
B/
INDIA
SOUTHEASTASIA
INDUSTRIES
CONSUMER TECH
ENTERPRISE TECH
SAAS
UNICORNS
2
4
AGGREGATE VALUATION
OF 4 UNICORNS IN THE PORTFOLIO
7.4
BN
USD
1 MOIC (multiple of invested capital) allows investors to
measure how much value an investment has generated.
2 Unicorns are private companies valued at USD
1 bn or more. Data as of the end of 2021.
3
×
GROSS MULTIPLE OF INVESTED
CAPITAL MOIC 
RESULTS OF KEY ASSETS SISTEMA ASIA FUND SISTEMA.RU160 161
SISTEMA PJSFC / ANNUAL REPORT 2021

Key porolio companies
The company is creating a complex brand
selling meat and seafood in the market
where over 90% of players represent
unorganised retail with poor quality and low
sanitary standards. The company manages
the entire value creation chain, from supply
to processing and delivery to customers,
using uninterrupted cold chain.
Investment in March 2017
In February 2022, Sistema Asia Fund
participated in the series B investment
round of Airmeet, a comprehensive new
generation plaorm for virtual interactions
between companies and their customers
or other audiences.
Business
development in 2021
IN 2021, SAF INVESTED IN THE
FOLLOWING COMPANIES:
In September 2021, Sistema Asia Fund
participated in the series C funding round
of Exotel, India’s most popular CPaaS
plaorm.
In July 2021, Sistema Asia Fund
participated in the Series C funding round
of HealthifyMe, a developer of a health
and fitness app that helps its users eat
healthy and track exercise with real
coaches or a smart bot.
In May 2021, Sistema Asia Fund made
a series B investment in ANSR, which
oers leading international companies
services of accelerating their digital
transformation on the basis of Global
Capability Centres (GCCs).
In March 2021, Sistema Asia Fund took
part in the series D investment round of
Uniphore, a global leader in automation of
speech interaction.
It is planned to launch a new
venture capital fund specialising
in investments in tech companies
in India and Southeast Asia–
Sistema Asia Fund-2 (SAF-2).
The goal of SAF-2 will be to build a
scalable and high-quality base of
investors acting as long-term partners.
SAF’s team is also preparing a “harvest”
strategy (exit strategy for SAF-1) that
ensures the porolio value growth and
a full exit from investments within the
predetermined time frame.
The company is the world’s largest
chain of internet restaurants with a
single infrastructure for preparing
and delivering food to customers
in India and other countries under
several brands, including Faasos,
Behrouz Biryani, Oven Story and
Mandarin Oak.
Investment in August 2018
Uniphore is the leader in the Indian
market of conversational AI. Uniphore
was founded in 2008 and aims to bridge
the communication gap between man
and machine using voice and speech.
The company develops and sells
soware solutions for conversational
analytics, conversational assistance
and conversational security. Uniphore
products are used by more than 4 m
people in 80 companies globally. The
company has oices in the US, India and
Singapore. Its headcount exceeds 150.
Investment in July 2019
The company specialises in serial
production under its own brands and
solves the local market’s issues like
lack of price transparency, quality,
fragmented vendor base, and ineicient
logistics and delivery in the unorganised
market.
Investment in December 2020
NO. 1 BRAND IN INDIA FOR
ONLINE SALES OF MEAT AND
MEAT PRODUCTS
SPEECH RECOGNITION, VOICE
BIOMETRICS AND VIRTUAL
ASSISTANTS
NO. 1 "CLOUD KITCHEN" IN
INDIA AND GLOBALLY
COMPREHENSIVE
MARKETPLACE FOR BUILDING
MATERIALS
1.4
BN
USD
MOIC OF OVER
3.0×
2.5
BN
USD
MOIC OF OVER
5.3×
2.5
BN
USD
MOIC OF OVER
8.4×
1.0
BN
USD
MOIC OF OVER
6.0×
RESULTS OF KEY ASSETS SISTEMA ASIA FUND SISTEMA.RU162
SISTEMA PJSFC / ANNUAL REPORT 2021
163

CORPORATE
GOVERNANCE
CORPORATE GOVERNANCE SYSTEM .....................................
166
REMUNERATION POLICY ...................................................
186
RISK MANAGEMENT ........................................................
188
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
165164

CORPORATE GOVERNANCE
SYSTEM
Corporate governance principles
A crucial element of the strategy of Sistema as an investment company
is maintaining a high level of corporate governance and information
transparency. The Corporation strives to meet the best international
standards in these areas and consistently enhances its corporate
governance practices.
SISTEMA'S CORPORATE GOVERNANCE PRINCIPLES
01
Clear and eective procedures for
taking investment decisions
04
Professionalism of the Board of
Directors and its active involvement
in strategic planning and the
management and oversight of
business processes
02
Reasonable transparency of
management processes for investors,
counterparties, employees and other
stakeholders
03
A dividend policy that takes due
account of both reasonable
expectations of investors and
Sistema's financial resources
05
Special focus of the Board of Directors
on related-party transactions and
potential conflicts of interestof
corporate governance
Sistema is guided by these principles in all of its activities,
including strategic and financial management, HR policy,
reporting, control and audit, and risk management.
In its corporate governance practices Sistema abides
by applicable legislation, the Listing Rules of Moscow
Exchange, the recommendations of the Russian Corporate
Governance Code
1
and the guidelines set out in the UK
Corporate Governance Code
2
. Sistema's Charter and
internal regulations define its corporate governance
principles and procedures, as well as the composition,
procedures and powers of its governance and control
bodies. The Corporate Governance Code and the Ethics
Code of Sistema set out the additional commitments of
the Corporation, its top management and employees in
terms of transparency and ethical conduct of business.
Sistema's corporate governance structure
as of 31 December 2021
Board of Directors
President, Management Board Chairman,
Management, President's Oice
V. Chirakhov
Company Secretary
Internal Audit Department
Chief Audit Executive
Managing Partners Senior Managing Partners
Finance Function
Vice President for Finance
Corporate Governance
and Legal Function
Vice President for Corporate
Governance and Legal Aairs
Strategy and Development
Function
Vice President for Strategy
and Development
Corporate Communications
Function
Vice President for Corporate
Communications
HR Department
Vice President for HR
Security Department
Vice President for Security
Administrative Department
Head of Administrative
Depatment
Protocol Service
Managing Director for Protocol
1 The Corporate Governance Code recommended by the Russian Central Bank's letter No 06-52/2463 dated 10 April 2014 is available at
https://www.cbr.ru/statichtml/file/59420/inf_apr_1014.pdf.
2 The text of the UK Corporate Governance Code is available at:
https://www.frc.org.uk/getattachment/88bd8c45-50ea-4841-95b0-d2f4f48069a2/2018-UK-Corporate-Governance-Code-FINAL.pdf
IN ACCORDANCE WITH ITS
CHARTER, SISTEMA'S GOVERNANCE
BODIES ARE:

General Meeting of shareholders

Board of Directors

President

Management Board
CORPORATE GOVERNANCE CORPORATE GOVERNANCE SYSTEM SISTEMA.RU166 167
SISTEMA PJSFC / ANNUAL REPORT 2021

General Meeting of shareholders
OBSERVANCE OF SHAREHOLDERS' RIGHTS
Shareholders who own at least 2% of the Corporation's
voting shares are entitled to propose items for the agenda
of the General Meeting of shareholders and nominate
candidates for election to the Corporation's Board of
Directors. Such proposals, including any attachments
thereto, should be submitted to the Corporation no later
than 100 days aer the end of the reporting year, in
accordance with the Terms of Reference of the General
Meeting of shareholders and other internal regulations of
the Corporation. Candidates nominated by shareholders
to the Board of Directors of the Corporation are
provisionally reviewed by the Nomination, Remuneration
and Corporate Governance Committee of the Board of
Directors.
PARTICIPATION IN GENERAL MEETINGS OF
SHAREHOLDERS AND VOTING ON AGENDA ITEMS
Sistema aims to ensure maximum protection of the right
of shareholders to take part in the governance of the
Corporation by participating in the AGM, voting on agenda
items and receiving income in the form of dividends.
To ensure that shareholders can exercise their right to take
part in the General Meeting, the Corporation actively uses
electronic means of communication. All materials relating
to the General Meeting's agenda items are published on
the Corporation's website in Russian and in English
(www.sistema.ru / www.sistema.com) at least 30 days
before the date of the meeting and are then sent to
nominee shareholders in electronic form
2
.
Sistema's shareholders may use the e-voting option
available on the website of the Corporation's registrar, JSC
Reyestr. To use this service, shareholders should contact
the oice of JSC Reyestr for access to their personal
DIVIDENDS
The Corporation announces the amount of dividends
recommended by the Board of Directors and the record
date in advance. Shareholders are thus able to take
informed decisions with respect to disposing of their
shares.
In May 2021, the Board of Directors approved a new
Dividend Policy, setting the recommended amount of
dividends for 2021-2023. In accordance with the Policy, the
recommended dividend amount is at least RUB 0.31 per
The General Meeting of shareholders is the supreme
governing body of the Corporation. The activities and
powers of the General Meeting are governed by the laws
of the Russian Federation, the provisions of Sistema's
Charter and the Terms of Reference of the General Meeting
of shareholders. The Corporation seeks to create the most
favourable conditions for its shareholders to participate
in the General Meeting.
shareholder accounts on the registrar's website. If a
shareholder has a personal account on the e-government
portal, they may get access to the service without
applying to the registrar. More detailed information on
the procedure for connecting to the e-voting service is
available on the website of the Corporation's registrar at
http://www.aoreestr.ru/shareholders/e-voting.
Each shareholder is also entitled to vote on agenda items
either in person or through a representative (if the General
Meeting is held as an in-person meeting of shareholders).
The shareholders whose title to the shares is recorded
in the shareholder register may complete ballot papers
and send them to Sistema by mail ahead of the General
Meeting.
The owners of Sistema's global depositary receipts (GDR)
may vote on the agenda items of the General Meeting
by means of a proxy vote in line with the established
procedure via a depositary bank servicing the GDR
programme of Sistema. In 2021, Sistema's depositary bank
was Citibank, N.A. For information about the depositary
bank and voting, please visit the bank's website at
https://depositaryreceipts.citi.com/. The votes of the GDR
holders registered with the depositary are collected by the
depositary bank via clearing systems and are included
in the general ballot along with information about the
number of votes cast for and against the proposed dra
resolutions, as well as abstentions.
The results of voting on the agenda items of General
Meetings of shareholders held as in-person meetings are
announced before the meeting is closed. Aer the minutes
of the meeting are draed, shareholders may also view
the voting results on the Corporation's website.
1 If an extraordinary General Meeting of shareholders is conducted and its agenda contains an item on the election of the Board of
Directors, shareholders who own a suicient number of shares are also entitled to nominate candidates to the Board of Directors.
Such proposals should be submitted to the Corporation no later than 30 days prior to such General Meeting.
2 The notice of the General Meeting of shareholders and ballots are also sent by mail to shareholders whose
rights to the shares of the Corporation are recorded in the shareholder register.
ordinary share in 2021, at least RUB 0.41 per share in 2022
and at least RUB 0.52 per share in 2023. Thus, based on the
current number of the Corporation's ordinary shares, the
recommended total dividend payout is at least c.RUB 3 bn
in 2021, c.RUB 4 bn in 2022 and c.RUB 5 bn in 2023.
Additionally, starting from 2022, the Policy recommends
increasing dividend payments by an amount equal to 10%
of the absolute increase in adjusted OIBDA for the latest
completed financial year, provided that adjusted OIBDA
grew by more than 5% that year and the net debt
2
/adjusted
OIBDA
1
ratio does not exceed 3x.
When determining the recommended dividend amount for
2020, Sistema's Board of Directors was guided by the above
Dividend Policy and recommended that the AGM allocate
RUB 2,991.5 m for dividends, which corresponds to RUB 0.31
per ordinary share or RUB 6.20 per GDR.
Information about General Meetings
of shareholders in 2021
DATE 26 JUNE 2021
Form of the meeting Absentee voting
Items reviewed and decisions taken

Annual report and financial statements for FY 2020 were approved.

Dividends for 2020 were distributed in the amount of RUB 2,991.5 m, or RUB 0.31 per ordinary share (RUB 6.20
per GDR).

The Board of Directors was elected.

Auditors were appointed for RAS and IFRS audits for 2021.

A new version of the Policy on Remuneration and Compensations for Members of the Board of Directors
of Sistema PJSFC was approved.
Attended Shareholders that held a total of 76.4% of votes
Date and reference number of the
minutes
26 June 2021, No 1-21
Annual General Meeting of shareholders
In 2021, a new law was passed in Russia allowing joint-stock companies to conduct their annual general meetings of shareholders
in the form of absentee voting. In addition to absentee voting, the Corporation organised live streaming for shareholders on the
final date of voting, in the course of which the management presented the company's results for 2020 and took questions from
shareholders.
1 Operating income before depreciation and amortisation.
2 All financial indicators used to determine the amount of dividends are determined in accordance with the Corporation's
consolidated financial statements prepared in accordance with International Financial Reporting Standards.
CORPORATE GOVERNANCE CORPORATE GOVERNANCE SYSTEM SISTEMA.RU168 169
SISTEMA PJSFC / ANNUAL REPORT 2021

Board of Directors
The Board of Directors is a collective
governance body in charge of the
oversight and strategic management of
the Corporation.
Under Sistema's Charter, the
responsibilities of the Board of Directors
include:

Supervising the operations of the Corporation in general

Formulating strategic and financial development plans

Determining investment principles and criteria

Assessing management's peormance

Defining corporate governance principles

Approving transactions and strategic projects in accordance
with applicable legislation and the Corporation's internal
regulations
Composition of the Board of Directors as of 31 December 2021
1 The Chairman and Deputy Chair of the Board of Directors were elected at the first Board meeting on 26 June 2021 (which was held aer the AGM).
2 Independent director.
3 In line with the Moscow Exchange's Listing Rules, R. Munnings was deemed independent by Sistema. Information pertaining to the decision is available on Sistema's website.
4 In line with the Moscow Exchange's Listing Rules, D. Iakobachvili was deemed independent by Sistema. Information pertaining to the decision is available
on Sistema's website
Changes in the membership of the Board of Directors
In 2021, A. Dubovskov and R. Kocharyan resigned from the Board
of Directors. New members elected to the Board of Directors
at the General Meeting of shareholders on 26 June 2021 were
independent directors Y. Kuzminov and A. Shokhin.
Sistema's Board meetings are held on a regular basis in
accordance with the annual work plan, which is made based
on Sistema's strategic planning and reporting cycle.
Sistema's Board of Directors held 16 meetings in 2021: eight
scheduled in-person meetings and eight extraordinary letter
ballot votes. The Board of Directors reviewed a total of 73
agenda items in 2021.
Meetings of the Board of Directors
2021 2020
Number of in-person meetings 8 7
Number of absentee votes 8 5
Number of items according to the
Board's work plan
36 40
Actual number of items reviewed by
the Board
73 68
1. Vladimir Evtushenkov
(Chairman of the Board of Directors)
2. Anna Belova (Deputy Chair
of the Board in 2021)
3. Ron Sommer
4. Mikhail Shamolin
5. Felix Evtushenkov
6.
Vladimir Chirakhov
2021
The Board of Directors considered the following key items
in the reporting period:
1. Sistema's development strategy
2. Investment policy, strategy of Sistema's investment
funds and priority areas for investment in the short
and medium term
3. New investment projects
4. Managing and creating value for Sistema's
investments in the following industries:
5. Sistema's quarterly and annual results and
peormance against budget
6. Budget planning, approval of the consolidated budget
of Sistema and key peormance indicators of the
management
7. Management of the Corporation's risks
8. Activities of the Internal Audit Department
9. HR matters and employee incentive systems
10. Assessment of the quality of corporate governance
11. ESG strategy of the Corporation
12. Mandatory corporate procedures, including
convening the General Meeting and developing the
work plan of the Board of Directors
13. Composition of Board Committees and determining
the status of Board members
14. Approval of transactions, including acquisition of
equity stakes in various companies

timber industry assets

agricultural assets

development and construction assets

pharmaceutical assets

banking assets

high-tech assets

electrical assets

rental assets

healthcare assets
7. Yaroslav Kuzminov
2
8. Roger Munnings
2 3
9. Anatoly Chubais
2
10. Etienne Schneider
2
11. Alexander Shokhin
2
12. David Iakobachvili
2 4
COMPOSITION OF THE BOARD OF DIRECTORS
The Board of Directors eective as of 31 December 2021
was elected at the AGM held on 26 June 2021. Independent
directors accounted for 50% of the Board of Directors.
Independent directors
Non-executive directors
Executive directors
Number of Board members: 12.
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BOARD OF
DIRECTORS
STRATEGY
COMMITTEE
AUDIT, FINANCE
AND RISK
COMMITTEE
NOMINATION,
REMUNERATION
AND CORPORATE
GOVERNANCE
COMMITTEE
ETHICS AND
CONTROL
COMMITTEE
SUSTAINABILITY
AND INVESTOR
RELATIONS
COMMITTEE
1
Attendance
2
V. Evtushenkov 16/16 5/5
A. Belova 16/16 4/5 20/20 7/7 8/8 9/9
A. Dubovskov
3
7/7 5/5 6/7 4/4
F. Evtushenkov 16/16 5/5
R. Sommer 16/16 3/5 10/10 7/7 9/9
R. Kocharyan
3
6/7 2/5 6/7 3/4
Y. Kuzminov
4
9/9 5/5
R. Munnings 16/16 20/20 12/12 8/9
V. Chirakhov 16/16 4/5 4/8
A. Chubais 15/16 3/4
M. Shamolin 16/16 4/5 3/4 2/4
E. Schneider 16/16 18/20 5/5 5/5
A. Shokhin
4
8/9 9/10 5/5 4/4
D. Iakobachvili 15/16 4/5 20/20 11/12 4/4 4/4
Business strategies, investments, new types of activity
Financial reporting, planning and audit
Approval of transactions
Shareholding in porolio companies, groups, JVs, branches
Appointments and HR policy
Corporate governance and securities
Approval of internal documents
Functional strategies
Items reviewed by the Board of Directors in 2021 by subject
Distribution of issues considered by the board of directors in 2021 and 2020, by topics
Preparation for meetings and quorum of the Board of Directors
0
5
10
15
20
25
30
27
9
18
4
7
9
3
6
23
6 6
8
2
4
8
1
2020
2021
Business strategies,
investments, new
types of activity,
, 
 
Appointments
and HR policy
Corporate
governance and
securities
Approval
of transactions
Approval
of internal
documents
Shareholding
in porolio
companies,
groups, JVs,
branches
Functional
strategies
Financial
reporting,
planning
and audit
9
2
3
23
8
18
4
6
2021
Most of the items reviewed by the Board of Directors in
2021 were related to the Corporation's business strategy
and management of its porolio of investments in various
industries, financial planning and approval of transactions
(including shareholdings in companies).
The existing procedures of preparation for Board meetings
are designed to ensure the best use of the experience and
expertise of Board members. Materials on the agenda
items are published on the Board's electronic portal at
least 10 days before the meeting, which gives members
suicient time to form an informed opinion on all agenda
items. Most agenda items (including the approval of
transactions) undergo a mandatory preliminary review at
meetings of the Board's Committees.
The Corporation organises regular meetings of
independent Board members for in-depth immersion in
materials of strategic items to be reviewed by the Board. At
these meetings, independent directors discuss such items
in detail with the Corporation's management. This makes it
possible to increase the involvement of the Board members
in the development of the Corporation's strategy.
Meetings of Sistema's Board of Directors usually have a
high attendance rate: the average quorum of meetings in
2021 was 97.9%.
Participation of Sistema Board members in meetings of the Board of Directors and its committees in 2021
Assessment of the peormance of the Board of Directors and its Committees
Assessment of the Board's work is an important tool for
preserving and improving its eectiveness. The assessment
procedure is designed to identify the strengths and
potential areas for improvement in the Board's work.
Regular external assessment is part of international best
practices and is recommended by the Russian Corporate
Governance Code. Sistema introduced this practice in 2017
and consistently implements it.
A regular external assessment of the Board of Directors took
place in 2021. It was peormed by a consortium of two firms
with global footprint and high reputation: Nestor Advisors
Ltd., a London consultancy that specialises in corporate
governance, and EY, one of the global leaders in professional
services that has substantial presence in the Russian market.
1 Before 26 June 2021 — Investor Relations and Dividend Policy Committee.
2 The first number shows the number of meetings attended by the Board member, the second number is the total number of meetings.
3 Member of Sistema's Board of Directors until 26 June 2021.
4 Member of Sistema's Board of Directors from 26 June 2021.
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SISTEMA PJSFC / ANNUAL REPORT 2021

01
Sistema's Board of Directors works actively, using
advanced corporate governance procedures in its
work and the work of its Committees.
03
In future, it is advisable for the Board of Directors
to concentrate more on matters of long-term
porolio strategy. The Board should also be guided
by approaches to determining the independence
profile of its members that are used by peer
international investment firms and continue paying
significant attention to the eectiveness of boards
of directors of Sistema's key porolio companies.
02
Board members have a high professional level,
significant experience in management decision-
making, expertise in strategy and a relevant
professional reputation. These qualities enable
Board members to complement the Board
Chairman who traditionally plays a leading role in
the Board's work.
04
In order to achieve these goals, it is advisable to
better regulate the succession planning process at
all levels.
The assessment covered the following areas of of the
Board's work:

key duties of the Board of Directors, including
determination of the strategy, oversight over
peormance indicators, strategic HR issues, internal
control and risk management

relationship between the Board of Directors and the
management, the quality of information flows between
them

composition of the Board of Directors, the member
nomination process

the Board's practices and dynamics

the role of the Chairman of the Board

the structure and work of Board Committees

procedures of the Board and organisational support to its
activities

eectiveness of Board Committees
Sistema has five committees of the Board of Directors:

Strategy Committee

Audit, Finance and Risk Committee

Nomination, Remuneration and Corporate Governance
Committee

Ethics and Control Committee

Sustainability and Investor Relations Committee
1
The assessment of the Board of Directors had the
following objectives:

to increase the eectiveness of the Board of Directors by
identifying opportunities for improvement in its structure,
procedures, practices, work dynamics and ability to
constructively challenge the Corporation's management

to help Board members to develop a common vision as to
the ways in which the Board can be most instrumental in
promoting Sistema's eectiveness

to increase trust in Sistema's corporate governance
mechanisms among the shareholders and key
stakeholders

to assist Sistema with remaining a leader in corporate
governance practices, including compliance with
recommendations of the Russian Corporate Governance
Code, and implementing best international practices
related to the eectiveness of Board work

to assess changes in the Board's work since the previous
external assessment in 2017
The main role of the Committees is to assist the
Board in the preparation and adoption of decisions
in specific functional areas, as well as to ensure prior
in-depth scrutiny of matters put forward for the Board's
consideration.
The status, procedures for nominating members,
responsibilities and decision-making procedures of
the Board's Committees are regulated by the terms of
reference of the relevant committees as approved by the
Board of Directors and published on the Corporation's
website in the Corporate Documents section at
https://sistema.ru/about/corpmanage/docs.
The assessment of the Board of Directors was conducted using a detailed questionnaire and follow-up
interviews with Board members and several executives reporting to the Board of Directors. Key conclusions
of the assessment are as follows:
Committees of the Board of Directors
Functions of the Board Committees
NAME OF THE COMMITTEE KEY FUNCTIONS OF THE COMMITTEE
Strategy Committee

Analysing strategic management issues of Sistema Group

Reviewing the strategy planning methodology

Reviewing M&A transactions with a value exceeding USD 100m

Reviewing Sistema Group's investment projects requiring an entry into new
geographies or industries and projects with significant state ownership.
Audit, Finance and Risk Committee

Assisting the process of preparation and audit of the Corporation's financial reports
and supervising them

Assessing the quality of audit services based on the audit of Sistema's financial
statements and making preliminary recommendations to the Board of Directors with
respect to the selection of RAS and IFRS auditors

Assessing the risk management system and ensuring compliance with applicable legal
requirements in financial reporting, audit and planning

Peorming a provisional appraisal of transactions submitted to the Board of Directors

Budgeting and financial modelling
Nomination, Remuneration and Corporate Governance
Committee

Facilitating the development of an eective corporate governance system meeting
international standards at the Corporation and its porolio companies

Conducting a preliminary review of candidates:
a. for the Board of Directors of Sistema
b. for the boards of directors of porolio companies
c. for senior management positions across Sistema Group
d. for the position of the Corporation's Company Secretary

Developing the Corporation's incentive and remuneration policies

Organising the assessment of the peormance of the Board of Directors
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NAME OF THE COMMITTEE KEY FUNCTIONS OF THE COMMITTEE
Ethics and Control Committee

Ensuring an eective system of economic and corporate security

Monitoring compliance with the requirements of the Corporation's Code of Ethics

Assessing the functioning of the system for preventing corruption and fraud and other
misconduct related to violations of applicable legislation at Sistema Group companies
Sustainability and Investor Relations Committee

Supporting the strategy development and transformation of the Corporation's business
processes in line with the sustainability and responsible investment principles

Strengthening the Corporation's investment case

Developing Sistema's dividend policy, including recommendations for the Corporation's
Board of Directors with respect to the amount of payable dividends

Protecting the rights and interests of Sistema's shareholders
Composition of Sistema's Board Committees as of 31 December 2021
STRATEGY COMMITTEE
AUDIT, FINANCE
AND RISK COMMITTEE
NOMINATION,
REMUNERATION
AND CORPORATE
GOVERNANCE
COMMITTEE
1
ETHICS AND CONTROL
COMMITTEE
SUSTAINABILITY AND
INVESTOR RELATIONS
COMMITTEE
V. Evtushenkov CHAIR
A. Belova CHAIR
F. Evtushenkov
R. Sommer
Y. Kuzminov
CHAIR
R. Munnings CHAIR
V. Chirakhov
A. Chubais
M. Shamolin
E. Schneider
A. Shokhin
D. Iakobachvili
CHAIR
1 The President of Sistema PJSFC attends Committee meetings in the capacity of a permanent invitee and
does not vote on the matters submitted for consideration of the Committee.
Composition of the Committee, %
Subjects of the items considered by the Board Committees in 2021
37.5%
50.0%
12.5%
40%
20%
40%
20%
80%
25%
75%
Independent director
Non-executive director
Executive director
Independent director
Non-executive director
Executive director
Independent director
Non-executive director
Independent director
Non-executive director
Independent director
Non-executive director
NAME OF THE COMMITTEE
NUMBER
OF MEETINGS IN 2021 SUBJECTS CONSIDERED
Strategy Committee 5
Value creation by the Corporation's investments in various industries
Analysis of investment opportunities
Audit, Finance and Risk Committee 20
Appraisal of the auditor's services, development of recommendations
for the Board of Directors on appointing an external auditor
Review and approval of the Corporation's financial reports, the annual
report and report on peormance against the Corporation's budget
Review of management's reports on risk management at Sistema, risk
maps and mitigation plans
Preliminary review and evaluation of transactions and investment
projects to be submitted to the Board of Directors
Review of peormance and work plans of internal audit units
CHAIR
CHAIR
CHAIR
CHAIR
CHAIR
STRATEGY
COMMITTEE
ETHICS
AND CONTROL
COMMITTEE
AUDIT, FINANCE
AND RISK
COMMITTEE
NOMINATION,
REMUNERATION
AND CORPORATE
GOVERNANCE
COMMITTEE
SUSTAINABILITY
AND INVESTOR
RELATIONS
COMMITTEE
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SISTEMA PJSFC / ANNUAL REPORT 2021

NAME OF THE COMMITTEE
NUMBER
OF MEETINGS IN 2021 SUBJECTS CONSIDERED
Nomination, Remuneration and
Corporate Governance Committee
7
Assessment and development of corporate governance across Sistema
Group
Incentive system and key parameters, peormance assessment and
bonuses for the key managers and employees of Sistema
HR process and preview of candidates for senior management positions
at Sistema and nominees to the boards of directors of the key porolio
companies
Succession planning for the Board of Directors and its Committees
Corporate culture development
Ethics and Control Committee 8
Peormance of the Internal Audit Department in 2020 and its work plan
for 2022
Results of the ethics declaration campaign at Sistema
Functional strategy in the area of corporate security (including
information security)
Sustainability and Investor Relations
Committee
9
Amount of dividends and dividend policy of the Corporation
ESG strategy of the Corporation and development of ESG culture
Analysis and monitoring of Sistema's market and investment base
Risks and opportunities for the Corporation's investment strategy
Approach to non-financial reporting and potential for applying
integrated reporting principles
PRESIDENT MANAGEMENT BOARD
The President of Sistema is a permanent chief executive
oicer whose main tasks include managing the current
operations of the Corporation and dealing with matters
outside the remit of the General Meeting of Shareholders,
the Board of Directors and the Management Board, with
the aim of achieving the strategic goals set by the Board
of Directors, ensuring the Corporation's profitability
and safeguarding the rights and legitimate interests of
its shareholders. The President reports to the Board of
Directors and the General Meeting of shareholders of
Sistema. The President chairs the Management Board of
Sistema.
In April 2020, the Board of Directors approved the
appointment of Vladimir Chirakhov as the President and
Chairman of the Management Board of Sistema.
The Management Board of Sistema determines methods
for the implementation of the Corporation's development
strategy, formulates development plans, determines and
monitors investment processes and previews strategic
matters to be subsequently submitted to the Corporation's
Board of Directors.
In 2021, the Management Board held eight meetings and
reviewed 33 agenda items in the following key areas:
1. Sistema's development strategy
2. development strategy, value creation and
monetisation of Sistema's investments in various
industries
3. management of Sistema's investment funds
4. Sistema Group's strategic planning cycle
5. corporate governance practices at the Corporation
6. financial planning and control
7. ESG strategy of Sistema
In May 2020, the Board of Directors approved the
composition of the Management Board. As of 31 December
2021, the Corporation's Management Board consisted of
eight members.
Members of the Management Board of Sistema as of 31 December 2021
Changes in Sistema's Management Board in 2021
GOVERNANCE BODIES REPORTING TO THE PRESIDENT AND THE MANAGEMENT BOARD
Finance and Investment Committee
1. Vladimir Chirakhov
2. Felix Evtushenkov
3. Artyom Zasursky
4. Igor Kozlov
5. Svetlana Matveyeva
6. Vladimir Travkov
7. Ali Uzdenov
8. Sergey Shishkin
President, Chair of Management Board
Senior Managing Partner
Vice President for Strategy
Vice President for IT
Vice President for HR
Vice President for Finance
Senior Managing Partner
Vice President for Corporate Governance and Legal Aairs
DATE OF CHANGE DESCRIPTION
V. Kulubekov 8 February Elected to the Management Board
A. Sirazutdinov 16 February Powers terminated
A. Kolokolnikov 20 February Elected to the Management Board
V. Rozanov 2 April Powers terminated
T. Sitdekov 14 May Elected to the Management Board
I. Alyoshin,
S. Egorov,
A. Katkov,
A. Kolokolnikov,
V. Kulubekov,
L. Monosov,
O. Mubarakshin,
L. Petukhov,
T. Sitdekov 20 December Powers terminated
F. Evtushenkov 20 December Elected to the Management Board
To improve its managerial decision-making processes
Sistema has established a number of governance bodies
that report to the President and the Management Board,
namely the Finance and Investment Committee, the Risk
Committee, the Tender Committee and the IT Committee.
The responsibilities of the Finance and Investment
Committee include:

review of the Corporation's investment projects at
dierent stages from conception to completion

approval of the financial model, business plan and hurdle
rate for each investment project

making recommendations regarding viability of projects,
exit scenarios, and sources of financing

review of external financing terms
These committees are permanent consultative collective
bodies tasked with a detailed analysis of current aairs
and processes within their remit and with assisting the
President and the Management Board in decision-making.
The Committee considers the Corporation's investment
projects once they are approved by the Expert Council. An
approval by the Committee is required for further review of
the project by the Board of Directors.
As of 31 December 2021, the Committee consisted of six
members. The Corporation's President V. Chirakhov is the
chair of the Committee.
In 2021, the Committee met 53 times.
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The Finance and Investment Committee oversees the work
of the Expert Council, the Budget Subcommittee and the
Remuneration Subcommittee.
The Expert Council consists of 16 members and considers
all of the Corporation's new investment ideas and projects
for acquisition of assets in new and adjacent industries,
as well as in industries where Sistema already has a
presence. The Expert Council is charged with verification
of the conformity of the projects with a series of formal
requirements set out in the Corporation's regulatory
documents, the scoring of projects, and the preparation
of written opinions thereon. Once approved by the Expert
Council, projects are submitted to the Finance and
Investment Committee.
The Risk Committee's responsibilities include:

Assessment of the most material risks facing the
Corporation and its porolio companies

Ensuring the preparation of a risk register and a
generalised risk map of Sistema

Preparation and approval of risk assessment reviews

Development of proposals regarding acceptable risk
levels (risk appetite) for Sistema

Coordination of risk management strategies and plans
and monitoring of their implementation
As of 31 December 2021, the Committee consisted of 13
members. Vice President for Finance V. Travkov is the chair
of the Committee.
In 2021, the Risk Committee held four meetings.
The Risk Committee has an Expert Group consisting of
eight members that reviews matters pertaining to the
approval of counterparty limits (applying to banks, insurers
and management companies) and guarantees (including
bank guarantees) securing counterparty obligations, the
pre-approval of WACC
1
estimates for the evaluation of
investment projects of porolio companies to be further
reported to the Finance and Investment Committee, and
other operational matters pertaining to risk management
across Sistema Group.
The responsibilities of the Tender Committee include:

Ensuring the acquisition of goods, works and services on
the best terms available

Minimising the costs of purchase (ownership, operation)
of goods, works and services without compromising their
quality

Ensuring the sale of Sistema's property and rights as they
become irrelevant to the company's operations on the
best economic terms available

Ensuring the transparency of procurement procedures
and impartial decision-making

Facilitating the prevention of corruption, fraud and other
wrongdoing in procurement
The Committee consists of eight members and is chaired
by Vice President for Finance V. Travkov.
In 2021, the Tender Committee held 27 meetings.
The IT Committee's responsibilities include:

Coordinating the work of subdivisions and employees
of the Corporation on matters related to information
technologies

Creating conditions conducive to eective
implementation of Sistema's IT projects and initiatives

Building and maintaining the integrated IT architecture of
the Corporation based on advanced digital technologies
Sistema's risk management system employs a two-level
approach, under which the risks identified at Sistema and
its porolio companies are consolidated to assess their
impact on Sistema Group as a whole.
The enterprise risk management system (ERM) used in the
Corporation addresses the following tasks:

Identification of risks at all levels of management (from the
top to line management), which includes identifying risk
owners and making risk passports

Primary assessment of the materiality of identified risks
and their analysis (VaR methodology)

Ranging risks by management levels

Assessment of the aggregate influence of material risks
on the Corporation's key financial indicators (Monte Carlo
modelling)

Development of plans to mitigate identified risks at all
management levels

Regular monitoring of peormance against mitigation
plans and assessment of their eectiveness

Risk monitoring, quarterly reports on risks facing the
Corporation
Sistema's risk management procedures are carried out
by risk owners with the support of risk management
professionals from the Finance Function.
The reassessment of identified and/or new risks, the
eects of mitigation and response measures and the
approval of limits applying to counterparties (banks,
management companies and insurers) are monitored at
least on a quarterly basis by a special Expert Group of the
The Budget Subcommittee consists of four members
and aims to improve budgeting policies, principles and
procedures and to develop guidelines in this area for the
governance bodies of the Corporation.
The Remuneration Subcommittee consists of seven
members and aims to improve policies, principles and
procedures related to HR management and to develop
guidelines in this area for the governance bodies of the
Corporation.
Risk Committee Tender Committee
Information Technologies Committee
Risk management
Internal control system
1 Weighted Average Cost of Capital

Ensuring the uniformity of corporate IT standards and tools
at Sistema

As of 31 December 2021, the Committee consisted of 12
members. Vice President for IT I. Kozlov is the chair of the
Committee.
In 2021, the IT Committee did not hold meetings.
SPECIFIC CHARACTERISTICS OF RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT SYSTEMS
Risk Committee, which includes representatives of all of
the Corporation's key departments. The risk management
system is monitored by Sistema's Risk Committee and
Management Board.
Sistema's senior executives make regular reports on risk
management at the Corporation to the Audit, Finance and
Risk Committee, which translate into further reports to the
Board of Directors.
Sistema's internal control system is based on advanced
international and Russian internal control practices and
methodologies, covers all the main material decision-
making levels and serves the best interests of the
Corporation's shareholders, investors and management.
The internal control system and the responsibility for
implementation of control procedures are formalised in
codes, policies, procedures and other internal regulations
of the Corporation.
The Internal Control Policy was approved by the
Corporation's Board of Directors and is an internal top-level
document describing the key principles of internal control
as a continuous and integrated process that involves all
units and governance bodies of the Corporation.
The Corporation methodically works on the development
of a regulatory framework designed to govern all matters
relating to internal control by means of cascading them
from the level of the Board of Directors to the level of
employees.
The key objectives of the internal control system are:

Creating new and improving existing control mechanisms
that will ensure eicient business processes and the
implementation of the Corporation's investment projects
CORPORATE GOVERNANCE CORPORATE GOVERNANCE SYSTEM SISTEMA.RU180 181
SISTEMA PJSFC / ANNUAL REPORT 2021


Ensuring the safety of the Corporation's assets and
eicient use of its resources

Protecting the interests of the Corporation's shareholders
and preventing and resolving conflicts of interest

Creating conditions for the timely preparation and
submission of reliable reports and other information that is
legally required to be publicly disclosed

Ensuring the Corporation's compliance with applicable
laws and requirements of regulators
In accordance with advanced practices and approaches
in internal control and audit, the eectiveness of the
Corporation's internal control system is ensured at three
levels (in addition to the Board of Directors and senior
management):

Level 1. Heads and employees of the Corporation's
subdivisions are responsible for building an eective
internal control system and assessing and managing risks
within their remit.

Level 2. Sistema's controlling bodies and Committees
peorm control functions, e.g.:

The Risk Committee and the risk management function
are responsible for developing and monitoring the
implementation of eective risk management practices

The Finance and Investment Committee of the
Corporation approves and monitors the implementation
of investment projects
The Internal Audit Department reports to the Board
of Directors (functionally) and Sistema's President
(administratively). The Audit Department is headed by
a Chief Audit Executive who is appointed and dismissed
by the President based on the resolutions passed by the
Corporation's Board of Directors following a preliminary
approval by the Board's Audit, Finance and Risk
Committee.
The key objectives of the Internal Audit Department are:

to assist with increasing the eectiveness of the internal
control, corporate governance and risk management
systems of the Corporation and to give recommendations
on their improvement to the governance bodies, the
relevant committee, the subdivisions and employees of
the Corporation

to coordinate its activities with the external auditor of the
Corporation and other persons providing assurance to the
Corporation

The Security Department is in charge of comprehensive
security at the Corporation, including economic security,
prevention of corruption and information security

Level 3. The Internal Audit Department, which conducts
independent assessments of the eectiveness of the
internal control system, the risk management procedures,
and the corporate governance system.
The Corporation's internal control system includes, among
other things, the following:

Regulation of processes and procedures

Division of roles and responsibilities in decision making

Prevention and identification mechanisms of control

Notification about irregularities, abuse of oice, conflicts
of interest

Ethical standards of business conduct

Awareness of the Corporation's employees about the
internal control system
All of the Corporation's employees as persons in charge of
control procedures bear responsibility for the eectiveness
of such controls and risk management activities as
prescribed in their job descriptions, internal regulations and
legislation of the Russian Federation and other applicable
jurisdictions.
Internal audit External audit Resolution of conflicts of interest

to provide consultations to the subdivisions and employees
of the Corporations
To meet these objectives, the Internal Audit Department
carries out the following:

provides assurance (audits) by objectively analysing
available audit evidence aiming at independent evaluation
of the risk management, internal control and corporate
governance processes. The contents and scope of the
audit assignment for providing assurance are determined
by the customer and the Internal Audit Department

assesses the reliability and eectiveness of the internal
control system and gives recommendations to the
governance bodies, the relevant committee, the divisions
and employees of the Corporation improving it

assesses the level of corporate governance at the
Corporation and gives recommendations to the
governance bodies, the relevant committee, the divisions
and employees of the Corporation on improving it

assesses the reliability and eectiveness of the risk
management system of the Company and gives
recommendations to the governance bodies, the relevant
committee, the divisions and employees of the Corporation
on improving it

provides consultations to the subdivisions and employees
of the Corporation. The contents, scope and format of
consultations shall be determined by the Chief Audit
Executive of the Corporation aer consultations with the
divisions and/or employees of the Corporation that initiated
(requested) the consultations

provides consultations to the governance bodies,
subdivisions and employees of the Corporation on ensuring
eective functioning of the Single Whistleblowing Hotline.
Peorms selective audits of messages received on the
Single Hotline at the discretion of the Chief Audit Executive
and subject to availability of the required competences at
the Internal Audit Department

regularly meets with the external auditor of the Corporation
and other persons providing assurance to the Corporation
The Internal Audit Department has all the resources and
powers required to peorm the above functions and is an
independent structural unit. In its work, the Department
is guided by applicable laws of the Russian Federation,
International Professional Standards of Internal Audit, the
Code of Ethics of the Institute of Internal Auditors and the
Corporation's Charter and other internal regulations.
The Internal Audit Department closely interacts with
Sistema's independent auditors, helping them to better
coordinate their work and providing consultations to ensure
better annual audit planning with respect to evaluation of
the eectiveness of the internal control system in the area of
financial reporting, and assessing the identified risks.
Regular reports on the peormance of the Internal Audit
Department are reviewed by the Audit, Finance and Risk
Committee and the Ethics and Control Committee of the
Board of Directors of Sistema and are also submitted for
consideration by the Board of Directors.
In 2021, the Internal Audit Department conducted 24 audits
to assess the eectiveness of the Corporation's internal
control, risk management and corporate governance
systems. The audits peormed by the Internal Audit
Department did not uncover any weaknesses or risks that
could aect the sustainability of the Corporation's business
as a whole. Specific comments pertaining to various aspects
audited were communicated to stakeholders in a timely
manner and followed up by recommendations on how to
eliminate them.
Sistema's Internal Audit Department actively develops
automation technologies in an eort to improve the
eectiveness of audit procedures.
In compliance with the decision of the Audit, Finance
and Risk Committee, the Corporation uses the following
procedures to appoint the independent auditors of
Sistema's financial statements. The Committee peorms an
annual assessment of the quality of audit services received.
If the quality of services provided by the current auditor
is deemed unsatisfactory, the Audit, Finance and Risk
Committee organises a tender for engaging a new auditor.
If the quality is deemed satisfactory, Sistema negotiates
the price of the services with the current auditor for the
following period. The Audit, Finance and Risk Committee
recommends that a tender for external audit services
be held at least every five years to ensure the auditor's
impartiality and objectivity.
Matters related to conflicts of interest are governed by
the Corporation's Code of Ethics as well as the laws of
applicable jurisdictions. The Corporation has an ethics
assessment procedure: all top managers complete
Ethics and Conflict of Interest Declarations annually or as
conflicts of interests arise. Moreover, all new employees are
introduced to the requirements of the Code of Ethics and the
procedure for completion of Declarations and are required
to report relevant conflicts of interest (if any) before starting
to peorm their responsibilities.
In 2021, the results of the ethics declaration campaign were
reviewed by the Ethics and Control Committee of Sistema's
Board of Directors. In most cases, the declared conflicts of
interest did not require any resolution measures, as they
posed no risks to the Corporation's interests. However,
action plans on conflict resolution were implemented with
respect to several declarants in accordance with best
corporate governance practice.
CORPORATE GOVERNANCE CORPORATE GOVERNANCE SYSTEM SISTEMA.RU182 183
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CORPORATE GOVERNANCE ACROSS SISTEMA GROUP
DEVELOPMENT OF THE CORPORATE GOVERNANCE SYSTEM IN 2021
The quality of strategic planning and the investment appeal
of Sistema's porolio companies depend, inter alia, on
the quality of the corporate governance procedures. To
increase the value of its investments, Sistema is giving
particular attention to improving the quality of corporate
governance at its porolio companies.
The Corporation carries out strategic management of its key
porolio companies through the eicient work of boards
of directors. The boards of directors of the key porolio
companies include professional independent members with
expertise in the relevant industries, as well as in strategy,
finance, audit and corporate governance. Independent
directors account for about one third of members of the
boards of key porolio companies (depending on the level
of the company's organisational maturity).
The Corporation continuously improves its corporate
governance system in order to increase eiciency and
keep in line with best practices. Improving the quality of
corporate governance processes at porolio companies
and attracting competent professionals to their boards of
directors is designed to increase the quality of decision-
making and the shareholder value of Sistema's porolio
assets. With that in mind, the Nomination, Remuneration and
Corporate Governance Committee of Sistema's Board of
Directors gives priority to the selection of candidates to be
nominated to the boards of directors of porolio companies
and is deeply involved in the process, from formulating
the skills and expertise requirements for each key asset to
making recommendations with regard to specific lists of
candidates.
In May 2021, the Corporation's Board of Directors approved
two new internal documents detailing Sistema's approach
to sustainability management: the Environmental Policy
and the Human Rights Policy. In September 2021, the Board
of Directors approved an ESG action plan for 2022-2023 and
in November, the Corporation's ESG strategy including key
targets.
In June 2021, Sistema's Board of Directors approved the
Terms of Reference of the Sustainability and Investor
Relations Committee, which was established to replace the
Investor Relations and Dividend Policy Committee. The new
Terms of Reference provide for the Committee's leading role
in setting the Corporation's ESG agenda. The ESG activities
of the Committee are aimed at the development of the
Company's corporate culture based on the ESG principles
and the integration of ESG into the Company's strategy in
order to increase the sustainability of Sistema's investment
porolio. A. Belova was elected chair of the Committee.
The Nomination, Remuneration and Corporate Governance Committee of Sistema's Board of Directors annually develops and
approves the Corporation's action plan for improving corporate governance in the next year and later adjusts it as necessary. The
plan for 2022, which was developed taking into account the results of the external assessment of the Board of Directors, among
other things, envisages the following steps:
In 2021, 12 members were elected to the Corporation's Board
of Directors, six of whom qualify as independent directors
or were recognised as independent according to the
Moscow Exchange's Listing Rules and the Russian Corporate
Governance Code.
The current Board comprises the following independent
directors:

Yaroslav Kuzminov

Roger Munnings

Anatoly Chubais

Etienne Schneider

Alexander Shokhin

David Iakobachvili
The boards of directors of porolio companies and their
committees ensure control and coordination and support
the management of their respective companies in decision-
making in the following main functional areas, seeking to
further enhance the quality of management of porolio
companies:

strategy and key transactions

budget planning

HR policy and incentive system

internal audit

risk management
The committees of the boards of directors of porolio
companies play a pivotal role in the collective review of
relevant matters to be reported to the boards of directors.
Independent directors on the Corporation's Board of Directors
Development of ESG strategy
Plans for the development of corporate governance
All of the Corporation's independent directors have broad
recognition in the professional community and vast
experience in managing large organisations, which ensures
the objectivity of their judgements and independence
from the influence of the Corporation's management and
shareholders when making decisions.
As a responsible investor, Sistema sets itself targets that go
beyond financial metrics and aspires to high eiciency of
social and environmental impact management throughout
the entire value chain. By enhancing management
approaches, the Corporation sets the vector for its porolio
companies to go by when pursuing their sustainability
agendas and making ESG aspects an integral part of their
business strategies.
01
development and implementation of succession
plans for the management and members of the
Board and Board Committees based on individual
competences (before the end of 2022)
02
implementation of ESG measures approved by the
Board of Directors, with corresponding elements of
the strategy submitted for the Board's review (for
2022-2023)
CORPORATE GOVERNANCE CORPORATE GOVERNANCE SYSTEM SISTEMA.RU184 185
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REMUNERATION POLICY APPLIED TO SISTEMA’S SENIOR MANAGEMENT
REMUNERATION PAID TO SISTEMA’S BOARD MEMBERS AND SENIOR MANAGEMENT
1
Remuneration policy applied
to Sistema’s Board members
Supplementary remuneration of members
of the Board of Directors
Reimbursement of expenses
and other conditions
Miscellaneous
Basic remuneration of members
of the Board of Directors
Remuneration for peormance
of additional duties
Remuneration for the work of members of the Board of
Directors is calculated and paid in accordance with the
Policy on Remuneration and Compensations Payable
to Members of the Board of Directors of Sistema PJSFC
(hereinaer, “the Policy”) approved by the General Meeting
of shareholders.
In accordance with the amended Policy being in eect
during the reporting period, additional remuneration in the
form of ordinary shares is paid to the members of the Board
of Directors subject to capitalisation growth in the reporting
year
1
. The size of additional remuneration is set as a variable
amount equal to a share of the increase in capitalisation
achieved in the relevant financial year
2
.
The amount of additional remuneration is at any rate limited
by the amount of basic remuneration (not more than RUB
17.8 m a year).
Members of the Board of Directors are reimbursed for their
expenses associated with peormance of their duties,
including participation in the meetings of the Board of
Directors and Board committees.
Sistema insures the liability of the members of the Board of
Directors.
Sistema does not provide loans to the members of the Board
of Directors.
The short-term incentive scheme for the top managers of Sistema PJSFC in 2021 consisted of:

A fixed monthly salary determined in line with the internal system of job categories (grades)

Bonuses paid for implementation of projects, generation of cash income, achievement of KPIs and set objectives. Remuneration
is paid based on employees’ individual peormance and positive cashflow generated by projects implemented by the teams
of Managing Partners andDepartments of Sistema. Payments may amount to ) up to 20% of cash income from implemented
projects, b) fixed percentage of annual income for achievement of KPIs
For the purpose of calculating bonuses, cash income means:

an increase in the value of an asset (in the event of an asset sale or an IPO) net of (a) hurdle rate determined by the Finance and
Investment Committee chaired by the President of the Corporation prior to the start of a project or the acquisition of an asset,
(b) investments made in such an asset and project costs

percentage of the project team’s annual income
No extra compensation above the level stipulated by labour laws of the Russian Federation is paid to the President or other senior
executives in case of termination of employment.
Sistema does not pay remuneration to executive management for serving on the Management Board.
The Corporation does not provide loans to senior executives.
In 2021, basic remuneration of members of the Board of
Directors amounted to RUB 13.7 m or RUB 17.8 m per year
depending on whether a director is a tax resident of Russia.
Basic remuneration was paid to Board members in cash in
equal quarterly instalments.
Members of the Board of Directors peorming additional
duties, i.e., the Chairman of the Board, Deputy Chair of
the Board and Chairs of the Board Committees, receive
remuneration on a quarterly basis in the amount stipulated
by the Policy.
1 For an increase in capitalisation to be recorded for the purposes of the Policy, the weighted average price of one ordinary
share of Sistema on the Moscow Exchange at the end of the reporting year (for 60 preceding trading days) should exceed the
weighted average price of one share at the beginning of the reporting year (for 60 preceding trading days).
2 0.1% or 0.125% (depending on tax residency) of the increase in capitalisation for the financial year.
1 All figures in this section are given before the applicable income tax.
2 Remuneration in the form of salaries and bonuses is the compensation allocated in the reporting period to the non-executive members of the Board of Directors.
3 This amount includes holiday pay and severance pay. In 2021, holiday pay to the non-executive members of the Board of Directors
amounted to RUB 69,452,000, while severance pay totaled RUB 222,154,000. No such payments were made in 2020.
4 Including Sistema's President and other executive members of the Board of Directors.
5 This amount includes holiday pay. Holiday pay to the members of the Management Board amounted to RUB 557,404,000 in 2021 and RUB 148,560,000 in 2020.
Remuneration and compensation paid to Sistema’s Board members, RUB
Remuneration paid to Sistema’s Management Board members
4
, RUB
ITEM 2021 2020
Remuneration for work as member of the Board
of Directors 390,957,500 365,497,500
Salaries
2 3
398,492,500 122,499,000
Bonuses 351,123,200 393,456,200
Remuneration for work as member of the Board’s
committees 9,380,000 5,820,000
Reimbursement of expenses incurred by Board
members in connection with their duties 1,069,500 824,200
ITEM 2021 2020
Salaries
5
988,800,200 584,901,900
Bonuses 3,982,281,800 4,889,969,300
Other types of remuneration 6,870,000 861,000
REMUNERATION
POLICY
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Sistema’s potential risks are the manifestations of processes
and factors that Sistema has little or no influence on. That
said, it is within the Corporation’s power to take steps to
reduce the negative consequences of such factors should
they materialise. This makes the eicient assessment of
existing risks and of their occurrence probability, as well as
eective risk management, an important part of Sistema's
strategy.
Sistema has in place an Integrated Risk Management
Policy.
Integrated Risk Management aims to build and maintain an
eicient system for:

the regular and systematic identification and analysis of
risks faced by Sistema

the identification and assessment of risks associated with
every specific managerial decision

the distribution of responsibilities for risk management

the preparation of careful response/mitigation plans and
the control of their implementation

the monitoring of risks and risk management eectiveness

the preparation of risk management reports for various
collective bodies within Sistema and for other stakeholders

the accumulation of knowledge on Integrated Risk
Management

Risk avoidance means refraining from particular actions
or foregoing particular assets fraught with high risk. Risk
avoidance is used in exceptional cases where the cost of
treating a particular risk would be too high, such treatment
action would not reasonably result in its satisfactory
mitigation, and transferring such risk to a third party would
be impossible or impractical.

Risk mitigation means controlling and preventing a risk
while owning it and treating it in a proactive manner.
Mitigation steps aim to bring the probability of a particular
risk event and/or the potential damage it can cause
down to a level that is deemed acceptable according
to Sistema's Risk Appetite. Mitigation is the priority risk
management method at Sistema PJSFC.

Risk acceptance means assuming a risk without taking
any steps to modify it. This method is used where the
associated risk level is acceptable to Sistema PJSFC
or where modifying the risk would be impossible or
economically impractical.

Risk transference means handing a risk over to a third
party where modifying it within Sistema PJSFC would be
impossible or economically impractical and its monetary
value is greater than the limit deemed acceptable to
the company. Risk transference may take the forms of
insurance, hedging, outsourcing, etc.
For Sistema, insurance is an inextricable part of risk
management. Insurance is fully integrated in the corporate
risk management system toolkit and protects the financial
interests of Sistema PJSFC and its shareholders against
unforeseen losses that may arise in the course of business
processes, whether as a result of external eects or
otherwise.
Sistema PJSFC has in place a comprehensive insurance
programme that covers a wide spectrum of operational
risks and is reviewed on an annual basis. This includes
various types of compulsory and optional third-party
insurance, motor insurance, property insurance, health
insurance for employees, and accident insurance.
Such insurance contracts are closed with Russia's largest
insurers selected in open tender processes where insurer
reliability is the key criterion.
One of the key principles of risk management at Sistema
Group is the use of the risk appetite concept. This
approach involves the identification and monitoring of
the Corporation's target risk profile in light of current
strategic goals and their integration into risk management
procedures.
Part and parcel of Sistema’s each and every business
process, risk management is built into strategy planning
and implementation, investing, budgeting, procurement
and everyday operations. Sistema's integrated risk
management system relies on international standards,
recommendations and best practices in risk management.
Integrated Risk Management aims to reasonably guarantee
the achievement of strategic goals and contain risk within
limits that Sistema's management and shareholders deem
acceptable.
Board of Directors
Audit, Finance and
Risk Committee
Management Board
President
Managing
Partners
Functions
and Departments
1
st
line
of defence
Risk Management,
Internal Control, Compliance
2
nd
line
of defence
Internal
Audit Dept
3
rd
line
of defence
Risk management oicers across the Group regularly
update the top risks of their respective businesses and the
Group as a whole and analyse their potential eect on
financial peormance, which involves the use of financial
models and simulation methods.
To address the risks so identified, risk owners develop risk
mitigation and response plans, conduct risk monitoring and
update action plans as necessary.
Sistema PJSFC uses the following methods of risk management
RISK
MANAGEMENT
CORPORATE GOVERNANCE RISK MANAGEMENT SISTEMA.RU188 189
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GLOBAL AND COUNTRY RISKS
Sistema Group's risk appetite determines the level of risk
acceptable to its shareholders and involves the following
fundamental principles:

the amount of potential losses arising from risks accepted
by Sistema Group may not reach a level where it would
lead to a complete termination of the Group's operations,
whether in case of any crisis or otherwise

the Group's cash flows are required to be organised in a
way assuring the timely fulfilment of obligations towards
counterparties both in the medium and long term

the Group at all times aims to avoid the concentration of
risks in specific counterparties, industries, and countries/
regions associated with high risk

sustainable development and long-term economic
eiciency

compliance with the requirements of national regulators
wherever group companies operate and with the
standards and recommendations of international
regulatory bodies
Risks related to changes in the political and economic
situation in Russia are material for Sistema because most of
the Group's business is conducted in Russia. The companies
and investment funds of Sistema Group also operate in the
CIS, the EU, South and Southeast Asia. Many products of
the Group's companies are exported to the CIS, Southeast
Asia, Eastern Europe and North Africa. In the event of any
major political turmoil in these regions, the Group's local
business may be disrupted or discontinued, which may
lead to material loss.
Political and economic instability, as well as any potential
downturn or slowdown in Russia's economic growth, may
lead to a decrease in household incomes and consumer
demand, which could be damaging to the peormance
and financial standing of the entire group.
The business of the Group may be adversely influenced by
a toughening of sanctions, a complete economic blockade
and change in the political situation in the country, as
well as potential involvement of the Russian Federation in
military conflicts.

impeccable business reputation and avoidance of any
action potentially damaging to such business reputation

maintaining credit ratings from international rating
agencies
Risk management reports are submitted for review to the
relevant collective governance bodies of the Corporation
at least once a quarter. Each such report contains a
relevant assessment of risks and their impact on the
Corporation's financial peormance, the eectiveness of
risk mitigation and response plans, and potential risk areas
(areas requiring attention) identified for future periods.
The Corporation has built a unified compliance system that
involves a comprehensive mitigation programme including
anti-corruption and stock exchange rules, the protection
of personal data and confidential information, and steps
against money laundering and terrorism funding.
Due to the situation in Ukraine, western countries imposed
sanctions on a number of Russian citizens and companies.
The sanctions might conceivably be extended to, or
complemented by additional sanctions categories that
would apply to, specific companies or individuals within the
Group. Any breach of sanctions so imposed may prevent
the companies of the Group from cooperating with the
government authorities of the USA/EU/UK, result in civil or
criminal penalties being applied to the sanctioned persons
or their personnel in accordance with the laws of the USA/
EU/UK, or lead to significant fines being imposed on the
companies of the Group along with potential damage to
their reputation.
Any further tension between Russia and other countries
and any escalation of existing conflicts, introduction of
additional sanctions, or continued uncertainty as to their
scope may adversely impact the national economy, the
financial status of the Group's partners and suppliers,
and the capability of the Group's companies to conduct
trading and financial operations and to secure funding on
commercially viable terms, and may increase the volatility
of stocks of Sistema and particular companies within the
Group.
INDUSTRY RISKS
SISTEMA'S EXTERNAL RISKS
Sistema is faced with diverse risks associated with the
presence of Sistema's porolio companies in various
sectors of the economy. The most material risks are
related to the Group's operations in the telecom, electric
power, retail (including e-commerce), banking, high
tech, hospitality, healthcare, pharmaceuticals, timber,
agricultural and real estate industries.
Sistema's business is inextricably bound with the
global economy and financial markets. In particular, it
is sensitive to movements in the prices of oil, gas and
other commodities exported by Russia. A weakening or
strengthening of the rouble against the US dollar and the
euro amid fluctuating oil prices and imposed sanctions
may result in a rise in costs and/or a drop in revenues
or impede the achievement of financial targets and the
repayment of debt by Sistema Group companies.
An oulow of foreign investment from Russia under the
pressure of sanctions and restrictions applying to the
business of foreign companies may adversely aect the
joint ventures (partnerships) and new investment projects
of Sistema Group.
Growing inflation may result in higher expenses and
therefore put downward pressure on profit margins and
also aect domestic demand for the products and services
of Sistema Group companies.
Servicing and refinancing the Corporation's current and
future financial liabilities might require a significant oulow
of cash. If sanctions persist in the medium term and the
The introduction of sanctions against Russia or Russian
companies and individuals may cause disruptions in
international payment systems, which in turn may make
Due to the wide variety of industries where the companies
of Sistema Group operate, social and environmental risks
faced by the assets dier materially across the Group.
However, a number of major trends currently observed
may be seen both as risks and opportunities for such
companies:

change in consumer sentiment, with people increasingly
opting for sustainable consumption and healthy living,
Any significant change in these industries may have a
material negative impact on the financial standing of
Sistema's Group’s companies and on the Group as a whole.
access of Russian banks and businesses to foreign debt
remains restricted, market liquidity deficit will grow along
with interest rates, inhibiting the acquisition of funding
both for the operations and for debt refinancing across the
Group. An inability to raise the required funding on such
terms and in such time as required may lead to substantial
restrictions on business development, operations and
investments.
Unfavorable macroeconomic environments in many
countries where Sistema has businesses may make
it necessary to re-evaluate goodwill for some of the
Corporation's assets.
Foreign currency controls and restrictions on capital
repatriation may adversely aect capital flows and reduce
the value of Sistema's investments in Russia, which in turn
may have a significant negative impact on the business of
Sistema Group.
A potential bankruptcy of one of the Russian banks acting
as the Group's counterparty may reduce the availability
of borrowing funds and lead to Sistema losing money
deposited with such bank.
it impossible for companies across the Group to settle
accounts, damaging Sistema's investment appeal as a
result.
and growing expectations as regards brand missions,
corporate responsibility, and business sustainability

changing population age structure making it necessary to
adjust and update products and services to best meet the
needs of the ageing national population

increased competition for talents due to a demographic
decline and changing job expectations of the young
workforce
Financial risks
Political risks
Social and environmental risks
CORPORATE GOVERNANCE RISK MANAGEMENT SISTEMA.RU190 191
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
climate change and extreme weather conditions that may
impact crop yields, people's health, and the operation of
infrastructure

new technological solutions and economic
transformation, including digitalisation and automation
in the manufacturing and service sectors conducive to
workforce displacement

growing cyber security threats and tightening regulations
in confidentiality and personal data protection

deteriorating living standards and potential rise in social
tensions in specific regions where the Group operates
eroding profits of the Corporation and companies across
the Group

tightening regulations in sustainable development, carbon
control, and information disclosure
Among material risks faced by the Group's industrial
companies are environmental, occupational health and
safety and waste disposal risks, as well as risks related
to infrastructure health, shutdowns and electromagnetic
safety, which are critical for telecommunications and
power grid companies.
In the agricultural sector the most material risks include
climate risks and challenges related to the need to adapt
to changing weather conditions, greenhouse gases, water
consumption and animal farming.
Emergencies and accidents at production facilities across
Sistema Group may have significant environmental eects,
including land and water pollution, excessive atmospheric
discharges, eluent disposals and hazardous spills,
potentially harmful for local communities, ecosystems and
biodiversity. Any irrational use of natural resources (such as
land and forests) may deplete raw materials and lower the
economic peormance of agricultural and forest assets.
To manage these risks the companies of the Group
implement advanced technological solutions, enhance
management systems in environmental protection,
energy eiciency, occupational health and safety, and
develop measures to prevent and mitigate accidents and
emergencies.
Risks related to non-compliance with the principles of
sustainable development in supply chains may result in
disruptions in supply chains and hurt Sistema Group's
reputation. As part of their eorts to minimise such risks,
companies across the Group impose strict requirements on
suppliers, contractors and partners as regards compliance
with law and internal regulations.
With global and local terrorism threats rising, potential
attack incidents across the Group's enterprises and
infrastructure facilities may cause material economic
damage, harm human health and lives, and provoke a
regulatory tightening on data access requirements.
A risk of unpredictable court rulings and administrative
decisions being passed with respect to the business of
Sistema and its porolio companies may adversely aect
the Group's operations. This risk stems from numerous
factors, including:

potential discrepancies and ambiguities in: (i) federal and
other laws; (ii) bylaws issued by the government agencies
of countries where Sistema Group operates; (iii) regional
and local laws, rules and requirements

gaps in legislation and lack of court and administrative
guidelines on the interpretation of some laws, as well as
conflicts between certain court guidelines and rulings

the influence of political, social and commercial factors on
the judicial system

potential selective or discretionary actions of government
authorities
Gaps in Russia's existing corporate and securities
legislation may create barriers to securing funds in the
future.
A lack of clarity on the applicability of the Federal Law
"On Procedures for Foreign Investment in Business Entities
of Strategic Importance for National Defence and State
Security" and the regulations of the Customs Union of the
Eurasian Economic Union to Sistema Group may have a
negative impact on the business of Sistema Group.
There is also a risk of amendments being made to the laws
of the countries where Sistema Group companies operate,
due to potential change in the laws and regulations
governing international trade and investments that may be
introduced by foreign states or international organisations.
Since Russian corporate law makes shareholders liable for
the obligations of their controlled companies, Sistema may
incur financial losses related to the liabilities of its porolio
companies.
Legal risks
The minority shareholders of Sistema's subsidiaries may
contest or vote against related-party or other transactions,
which may limit Sistema's capabilities of closing investment
deals and restructuring businesses.
Should the Russian Federal Anti-Monopoly Service conclude
that Sistema or one of its material subsidiaries has violated
any of the existing anti-monopoly laws, the relevant
business will be subject to serious administrative sanctions,
entailing losses for the Corporation. The Federal Anti-
Monopoly Service may also prevent the Corporation and its
porolio companies from closing and/or peorming certain
transactions, which may also limit Sistema's capacity to
conclude investment deals and restructure businesses.
Tax laws, regulations and practices of the jurisdictions
where Sistema's assets operate are oen intricate, opaque
and prone to frequent modifications and ambiguous
interpretations. Should any action of the Corporation or its
porolio company be interpreted as a breach of tax law,
the Group's business may be significantly injured.
Russian transfer pricing law may make it necessary to
introduce adjustments to pricing practices used at Sistema
Group's companies and entail additional tax liability in light
of certain transactions.
Geopolitical tensions, sanctions imposed against certain
Russian companies, a worsening macroeconomic
environment and an oulow of capital and investors from
the Russian market aect the value of Russian businesses.
Sistema Group's access to investor funding through stock
markets may therefore be restricted further as a result of
the introduction of sectoral sanctions in industries where
In March 2020, the World Health Organisation (WHO)
declared the rapid spread of the novel coronavirus disease
(COVID-19) a pandemic. Steps taken by many countries,
including Russia, to contain the spread of COVID-19 created
serious operational diiculties for many businesses and
significantly aected financial markets. COVID-19 had a
material impact on the operations of many companies
In April 2022, Russia's lower chamber of parliament passed
a bill requiring Russian companies to terminate their
foreign depositary programs under which depositary
receipts representing shares of such companies (including
the Corporation) are listed and traded on foreign stock
exchanges. Remaining steps of the legislative process
involve consideration of the bill by the Federation Council
(upper chamber of the Russian parliament) and the
President of the Russian Federation.
The termination of Sistema’s depositary program would,
inter alia, result in the cancellation of Sistema’s GDRs, with
the underlying ordinary shares represented by those GDRs
being distributed to shareholders, and the delisting of the
In 2015, Russia adopted new rules relating to the taxation of
undistributed profits of controlled foreign companies and
profits from indirect property sale in Russia, the concept
of a beneficiary owner, and new criteria to be used to
establish tax residency of foreign legal entities in Russia.
These rules have already undergone several revisions since
they were first introduced, with new amendments having
retroactive eect. The new taxation rules may result in
more tax liability for the Group due to uncertainty on legal
interpretation and a lack of relevant legal precedents.
the companies of Sistema Group operate and/or due to the
investors growing increasingly wary of Russian companies
in general. In particular, Sistema's ability to raise funding via
debt instruments may be limited, which is liable to lead to a
lack of working capital and cash available for investment
and significantly undermine the Corporation's financial
peormance.
in various sectors, including but not limited to temporary
or permanent production stoppages, supply chain
disruptions, quarantines, and decreased demand. The
magnitude of the pandemic's impact on Sistema Group's
operations will largely depend on the duration and extent
of its eect on the global and national economies
GDRs from the London Stock Exchange. The underlying
shares would continue to be listed on the Moscow Stock
Exchange, which would remain the sole listing venue of
the Corporation’s equity securities. The mechanics and
timing relating to how the GDRs will be converted into the
underlying shares and how such underlying shares are
to be traded following their withdrawal from Sistema’s
depositary program as well as a number of other relevant
parameters remain uncertain. Recipients of such underlying
shares may also be subject to restrictions on holding these
(either as a matter of applicable law or their own policies).
The adoption of this legislation could materially adversely
aect the liquidity in, and the trading price of, Sistema’s
GDRs and ordinary shares.
Tax risks
Risks related to stock markets
Risks related to the coronavirus pandemic
Risks related to delisting
CORPORATE GOVERNANCE RISK MANAGEMENT SISTEMA.RU192 193
SISTEMA PJSFC / ANNUAL REPORT 2021

RISKS RELATED TO SISTEMA GROUP'S OPERATIONS
Implementation of the business strategy Cash flows from Sistema Group companies
Uncertainty of estimates in reporting
Licences and permits
Loan covenants
Privatised companies
Borrowings
Implementation of the business strategy
Management and key personnel
The Corporation's strategy aims to develop a balanced
and diversified asset porolio in sectors and regions where
Sistema has expertise and competitive advantages, while
attracting leading international and Russian partners.
Despite having a well-formulated strategy, Sistema cannot
guarantee the achievement of its goals, the eicient
management of its porolio companies or benefits from
new investment opportunities for a number of reasons,
including high leverage and limited funds available for
investment. Sistema's failure to achieve its strategic goals
may damage its financial peormance.
The Corporation's financial peormance depends on
the ability of Sistema Group companies to generate cash
flows needed to service its financial liabilities, including
the repayment of debt and interest, and to make other
investment activities in the future. Such cash-generation
capacity may be constrained due to regulatory, tax or any
other barriers, which may have an adverse eect on the
Corporation's financial position and liquidity.
In implementing the Company's accounting policy,
management is required to make assumptions, estimates
and judgements with respect to the book value of assets
and liabilities that cannot be reliably valued on the basis of
other sources. Estimates and their underlying assumptions
are formed on the basis of past experience and other
factors that are deemed relevant in specific circumstances.
The actual results may dier from these valuations,
which may have a material adverse eect on the Group's
financial peormance.
Estimates and assumptions are regularly reviewed. Any
change in such estimates is recognised in such period in
which the estimate is revised if such change influences only
this period, or also applies to future periods if such change
influences both the current and future periods.
The operations of Sistema Group's companies are
regulated by dierent government bodies and agencies
issuing and renewing licences, approvals, and permits,
and also depend on applicable laws, regulations, and
standards. Regulatory authorities to a large extent rely on
their own judgement when interpreting and implementing
legal requirements, issuing and extending licences,
approvals and permits, and monitoring compliance with
such licences. There is no guarantee that the existing
licences and permits, including those issued to the Group's
companies, will be extended, that new licences and permits
will be issued or that the companies will be able to comply
with the terms of such licences. There is no guarantee
either that existing or future licences or permits will not be
suspended or revoked on whatever grounds. Any of these
circumstances may have material negative consequences
for Sistema's business.
Loan and debt securities agreements signed by the
Corporation and companies across the Group contain
certain restrictive covenants that limit their capacity
to borrow further funds, collateralise or sell assets and
enter into transactions with ailiates. They may also
restrict certain aspects of Sistema's operations, such as
the financing of capital expenses, or limit its capacity to
repay debt and service other liabilities. Any breach of
covenants, however inadvertent, may entitle the creditors
of the Corporation and/or its porolio companies to call
in on their loans, which poses a threat to the Corporation's
financial peormance.
The porolio of Sistema Group contains several privatised
assets. In the future the Corporation and specific
companies of the Group may also take part in other
asset privatisations. Since Russia's privatisation-related
legislation remains somewhat unclear and inconsistent
and contradicts other provisions of law (e.g., federal and
local privatisation norms are in discrepancy), many of
such privatisations can potentially be contested, however
selectively, which may have a material negative eect
on the business, financial situation, peormance, or
development prospects of the Corporation.
Cash flows from porolio companies may be insuicient
to finance all of the Corporation's investments scheduled
for a particular period. This may create a need to obtain
additional external funding and increase the debt burden
of the Corporation, which, in turn, would put downward
pressure on credit ratings across the Group. A downgrading
of a credit rating may increase the cost of debt servicing,
make new borrowings more expensive or inaccessible
and, in some cases, trigger loan acceleration. The risk of
deterioration or withdrawal of the Corporation's credit
rating correlates with reputation and liquidity risks.
The Corporation's current debt level also constrains its
borrowing capacity.
Sistema implements its strategy via acquisitions, disposals
and restructuring of assets. New investment opportunities
come with various risks, including failure to find relevant
targets or their not being available for acquisition, failure
to conduct suicient or appropriate due diligence of the
target company's operations and/or financial situation,
and potential overvaluation of/overpayment for assets.
These risks can also aect Sistema's financial peormance.
The acquisition of assets may increase pressure on the
Corporation's cash position and make it necessary to
obtain external funding.
Delays in the implementation of investment deals or failure
to close them may hamper the achievement of Sistema's
strategic goals and negatively influence the Corporation's
results, financial position and investment appeal.
Sistema may struggle with building an eicient system for
managing and controlling new assets. The top risks in this
area include:

inability to eiciently integrate the operating assets and
personnel of the acquired company

inability to establish and integrate necessary control
mechanisms, including those related to logistics and
distribution
The implementation of Sistema's strategy in large
part depends on the eort and professionalism of its
management team. Failure to hire a suiciently competent
and motivated management team may jeopardise
Sistema's business, peormance, financial position and
development prospects.
The development of Sistema Group companies depends
on numerous factors, including the receipt of necessary
permits from state authorities, suicient demand from
consumers, the successful development of technologies,
eicient risk and cost management and the timing of R&D
completion and market launches of new products and
services. Diiculties arising in any of these areas may have
a detrimental eect on the development of Sistema Group
companies and the Corporation's financial figures.

conflicts between shareholders

hostility and/or unwillingness to cooperate on the part of
the management and personnel of the acquired asset

loss of customers aer the acquisition
If any of the above risks materialise, the relevant asset may
lose part of its value and/or worsen Sistema's financial
peormance.
When disposing of its assets, the Corporation may face the
following risks:

delays in closing or failure to close a deal due to inability to
obtain corporate or governmental approvals

valuation errors

assuming excessive obligations towards the buyer

loss of synergies with other assets within the porolio
If one or several of such risks materialise, the Corporation
may lose some of its potential profit and thus see poorer
financial peormance.
CORPORATE GOVERNANCE RISK MANAGEMENT SISTEMA.RU194 195
SISTEMA PJSFC / ANNUAL REPORT 2021

Compliance with applicable laws and regulations
Human rights
Digitalisation of business, development of IT and protection of personal data
Competition
In conducting their business, the Corporation and
companies across Sistema Group are required to
comply with a number of rules and regulations regarding
market competition, corporate governance, fraud and
corruption prevention, conflict of interest management,
compliance with sanctions, fair treatment of customers, the
prevention of money laundering and terrorism financing,
adherence to the information security policy and the
prevention of illegitimate use of insider information and
market manipulations. Any failure to comply with these
requirements may create the risk of legal and regulatory
sanctions, significant financial losses and reputational
damage.
The Corporation is aware of its responsibility for observing
human rights, preventing any exertion of undue influence
on human rights, and eliminating or mitigating the potential
consequences of such influence should it ever take place.
In its activities and dealings with suppliers, contractors,
partners and other stakeholders the Corporation may
directly or indirectly influence the rights of employees, local
communities, customers and consumers. Any instance
of human rights violations would adversely aect the
With digitalisation of businesses (implementation of
modern IT solutions and systems) and comprehensive
penetration of the Internet, risks related to cyber security
and personal data protection are becoming a major
threat to businesses across Sistema Group. Any inability
to prevent cyber attacks and unsanctioned access to
Sistema's networks and data bases may cause, inter
alia, leaks of personal data and confidential information,
damage to the assets of the Group's porolio companies,
disruptions in production processes, network security
breaches and costs related to the restoration of IT systems
All industries where Sistema operates are exposed to
competition from other companies. Telecom, electric
power, retail (including e-commerce), hospitality, private
healthcare, pharma, banking, high tech, real estate, timber
and agricultural markets in Russia and elsewhere are highly
Moreover, the operations of Sistema and its porolio
companies are also regulated by the anti-corruption laws
of other jurisdictions where they conduct their business or
where their securities are traded, including Russian law,
the UK Bribery Act and the US Foreign Corrupt Practices
Act (FCPA). Any investigation into potential violations of the
FCPA, UK Bribery Act or other anti-corruption laws of the
US, the UK or other jurisdictions may negatively aect the
reputation, business, financial situation and peormance
of Sistema and the companies of Sistema Group.
Corporation's reputation and lead to court disputes, loss
of investor, customers or employee trust, or backlash from
local communities, trade unions and NGOs.
Risks associated with human rights are taken into account
in the risk management systems of Sistema Group
companies, with material items regularly reviewed by the
boards of directors of relevant porolio companies. For
more details on the management of human rights risks
please refer to Sustainability Management.
and equipment, which may materially and adversely aect
the business of Sistema Group.
Risks associated with the protection of personal data are
most relevant for assets in telecommunications, online
services, finance and e-commerce. Sistema's porolio
companies implement their own programmes, projects and
measures that make it possible to reduce the likelihood and
potential negative consequences of their industry-specific
risks.
competitive. An inability of any company of the Group to
compete eiciently may have a material negative eect
on the business, peormance, financial situation and
development prospects of the Corporation.
Brand quality and reputation
Developing and maintaining brand awareness for the
Group's companies is crucial to shaping the public opinion
about their existing and future products and services.
Sistema believes that the importance of a company
brand is growing steadily in highly competitive markets.
Successful development and improvement of brand
awareness depends to a great extent on the eiciency
of marketing and ability to provide quality products and
services at competitive prices. The eort and money
invested in brand development may prove greater than the
incomes they yield, which means potential financial losses
for the Group's companies.
Sistema's reputation may suer from any unethical
business practices, professional errors, negligence, failure
to comply with human rights, dissemination of inside
information and any corruption oence, should any of the
above take place anywhere within the Group.
CORPORATE GOVERNANCE RISK MANAGEMENT SISTEMA.RU196 197
SISTEMA PJSFC / ANNUAL REPORT 2021

SUSTAINABILITY
MANAGEMENT
MANAGEMENT SYSTEM ....................................................
200
RESPONSIBLE INVESTMENT ...............................................
202
KEY ESG AREAS .............................................................
206
SOCIAL INVESTMENTS ......................................................
212
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
199198

MANAGEMENT SYSTEM
Sistema's Board of Directors plays a key
role in determining the strategic areas of
the Corporation's sustainability activities
and overseeing their results. In the middle
of 2021, Sistema's Board of Directors
approved the Terms of Reference of the
Sustainability and Investor Relations
Committee, which was established
to replace the Investor Relations and
Dividend Policy Committee. The new
Terms of Reference provide for the
Committee's leading role in setting the
Corporation's ESG agenda.
The key responsibilities of the Sustainability and Investor Relations
Committee include: facilitating the formulation, development and
implementation of the Corporation's strategy in the area of investor
relations, dividend policy and sustainability; developing recommendations
for improving the ESG strategy of the Corporation and its porolio
companies; facilitating the transformation of the Corporation's business
processes based on the principles of sustainable development and
responsible investment; reviewing the corporate charity strategy.
Other Committees of the Board of Directors also consider certain aspects
of ESG factors (including corporate governance and ethical business
conduct) within their respective mandates.
The key principles and approaches of the ESG strategy are communicated
to the Group companies through their boards of directors, where Sistema
is represented by its key managers (managing partners).
In May 2021, Sistema's Board of Directors approved new documents: the
Human Rights Policy and the Environmental Policy that set out in detail
the provisions of Sistema's Sustainability Policy and support the ESG
management system.
The Human Rights Policy is a voluntary public document that defines
Sistema's approaches in the area of human rights, including preventing
any adverse impact on human rights or promotion of such impact,
eliminating or mitigating the consequences of such impact if it does take
place, and, if necessary, compensating for damage.
This Environmental Policy contributes to the implementation of the
guiding corporate responsibility principles set out in Sistema's Corporate
Governance Code and Sustainability Policy, including the principle of
respect for the environment.
For more details please go to:
https://www.sistema.com/upload/
iblock/9f2/b4c5yd01g4d8i8514c0c4sc78vxhn9be/
ToR_ESG_IR-Committee.pdf
Human Rights Policy
https://www.sistema.com/upload/iblock/70d/
tejazhtom0mt8b3eugvucqwkcmvnx03l/
Sistema_Human-Rights-Policy.pdf
Environmental Policy
https://www.sistema.com/upload/
iblock/3a8/n6ceomgl3p88f4eyoqxr6boqm86ujbeb/
Sistema_Environmental-Policy.pdf
In 2021, Segezha Group approved its Sustainability Strategy
and Policy and set long-term goals for reducing its impact on
ecosystems. The document is focused on four key areas:

innovative forest business

comfortable living environment in the forest regions of Russia

climate-oriented forest management and production

sustainable supply chain.
RISK MANAGEMENT
INTEGRITY AND TRANSPARENCY
OBSERVANCE OF HUMAN RIGHTS
Sistema's responsible
business principles
ETHICS, LOYALTY AND HONESTY
IN RELATIONS WITH PARTNERS,
COUNTERPARTIES AND STAFF
EMPLOYEE CARE
FOCUSED ALLOCATION OF FINANCIAL
AND INTELLECTUAL RESOURCES FOR
THE DEVELOPMENT OF INNOVATION
RESPECT FOR THE ENVIRONMENT
INVESTING PART OF PROFITS IN SOCIALLY
SIGNIFICANT PROJECTS AND PROGRAMMES
For more details please go to:
https://www.sistema.com/upload/
iblock/0b6/0b6ebeabe7c86c5ccb7f3bb96b76c45c.pdf
The implementation of defined ESG agenda at the
operational level, communication of these policies to
investors and public non-financial reporting are the
responsibilities of the Sustainability Function, which
reports directly to the Corporation's President.
The aspects of corporate social responsibility,
social communications, regional policy and
charitable activities are supervised by the Corporate
Communications Function; corporate governance and
compliance are overseen by the Company Secretary,
the Corporate Governance & Legal Matters Function
and the Internal Audit Department; while the HR
Department is responsible for HR policy. If necessary,
cross-functional working groups are created in the
Corporate Centre to develop common approaches
to managing the key aspects of sustainable
development.
ESG risk management is part of the corporate risk
management system. To learn more about ESG risks,
please go to the Risk Management section. All risks
associated with human rights are taken into account
in the risk management systems of Sistema Group
companies, and related material matters are regularly
reviewed by their boards of directors. The Corporation
has zero tolerance for human rights violations across
its entire value chain and expects its suppliers,
contractors and partners to ensure the same degree
of commitment to legal compliance and respect for
human rights. The Group's companies use accessible
and properly formalised whistleblowing mechanisms,
which ensure confidentiality and fair review, protect
whistleblowers from retaliation, and provide post-
investigation feedback.
In implementing its investment and social programmes,
Sistema draws upon its extensive corporate expertise,
strikes synergistic intersectoral partnerships with local
authorities, academia, civic & non-profit organisations,
and encourages cooperation between businesses
across the Group.
Transparency and an ongoing dialogue with
stakeholders are the basic principles of Sistema's
activities as a public company. Sistema prepares
public non-financial reports in accordance with
recognised international standards and promotes the
disclosure of material non-financial information by its
key porolio companies and funds.
For more details please go to:
https://segezha-group.com/upload/iblock/0ec/
aobxzutgrr44dz0lqqacbbmn7lcqnwrf.pdf
SUSTAINABILITY MANAGEMENT MANAGEMENT SYSTEM SISTEMA.RU200
SISTEMA PJSFC / ANNUAL REPORT 2021
201

RESPONSIBLE INVESTMENT
The responsibility of Sistema as
an investor is in the eective
management of porolio assets
and funds to build value for
shareholders and a wide range
ofstakeholders in the long term.
The Corporation aims to build
competitive high-added-value
businesses that honour the principles
of social and environmental
responsibility and contribute to
the sustainable development of
their respective industries and
geographies and to the steady growth
Implementation of responsible investment principles
WHEN FORMING
A PORTFOLIO OF ASSETS

No "sin stocks" and activities that
are forbidden by local law or
international standards

Reviewing a company's ESG profile
when making investment decisions
WHEN MANAGING ASSETS

Basic sustainability standards in
porolio companies and extra
requirements for pre-IPO ones

Engagement with porolio
companies via their boards (as per
established corporate procedures)
to enhance sustainability
management and drive ESG
peormance
WHEN DIVESTING ASSETS

Ensuring the independence and
reliability of sustainability management
systems within the company

Issuing reference notes and guidelines
on sustainability where necessary
Sistema’s position in ESG ratings
In 2021, RAEX-Europe included Segezha Group and Steppe AgroHolding in its ESG ranking of
Russian companies for the first time. At the end of 2021, MTS ranked 10th, Sistema 17th, Segezha
Group 49th and Steppe AgroHolding 50th in the general ESG ranking of more than 150 companies
from more than 20 industries.
No. 1
BEST SCORE
AMONG RUSSIAN
COMPANIES
in the industry
group "Diversified
Financials"
TOP 11
SISTEMA AND MTS MADE IT TO THE TOP 11 OF 66 RUSSIAN COMPANIES
THAT RECEIVED A REQUEST FROM INVESTORS TO DISCLOSE
INFORMATION ABOUT CLIMATE CHANGE RISKS
GROUP A
WHICH COMPRISES 30 COMPANIES
WITH POSITIVE CHANGES
in the “Responsibility and
Transparency” index
CONFIRMED ITS STATUS
AS A CONSTITUENT
OF THE INDEX
constituent since 2016
of socioeconomic and technological
potential, human and natural capital,
standards of living and social well-
being.
Sistema's investment process is
regulated by internal documents and
procedures. Potential investment
projects and investment programmes
of porolio companies are subject
to detailed examination as part of
Sistema's multi-stage investment
process. In addition to financial
analysis and industry analysis
that underlie decision-making for
each project, such components as
management quality, staing, state
Participation in sustainability initiatives
In 2002, Sistema became a signatory to the UN Global Compact to
promote shared values and responsible business practices, and, in
2017, to the Social Charter of the Russian Business, a set of fundamental
principles of responsible business practices adopted by the Russian
Union of Industrialists and Entrepreneurs.
of production base, infrastructure and
technology, related social obligations
and environmental risks can also be
considered for specific projects.
At the end of 2020, Sistema's strategic
approach to responsible investment
was incorporated into a new set of
investment criteria approved by the
Board of Directors (that included ESG
factors for the first time) and into
the updated corporate governance
regulations. Sustainable development
became an integral element of
Sistema's strategy, carrying weight
in all investment decisions and asset
management strategies.
30.9
2019
High ESG risk
15.3
2020
12.1
2021
Low ESG risk
B
2018
BB
2019
BB
2020
BB
2021
No. 30
OUT OF 900+
COMPANIES
in the industry
group "Diversified
Financials"
The value of the company has low exposure to the risk
of significant financial impact caused by ESG factors.
B
Management
TOP 20
IN THE GENERAL RATING
OF 150+ LARGEST RUSSIAN
COMPANIES
GROUP A
WHICH COMPRISES 21 COMPANIES WITH
THE HIGHEST INDIVIDUAL SCORES
in the “Responsibility and
Transparency” index
SUSTAINABILITY MANAGEMENT RESPONSIBLE INVESTMENT SISTEMA.RU202 203
SISTEMA PJSFC / ANNUAL REPORT 2021

Sustainability awards
INTERNATIONAL AWARD FOR ESG REPORTING
Sistema's public sustainability report was named among the five best in the
financial and investment sector at ESG Reporting Awards 2021. The Corporation
was the only Russian finalist in its category.
SURVEY OF THE COMPANIES' CONTRIBUTION
TO THE NATIONAL PROJECTS
Sistema received a diploma for best practices in covering the company's
contribution to the National Projects from the Sustainable Business Development,
CSR and Volunteering Council of the Russian Chamber of Industry and Commerce.
CHANGE MANAGEMENT. VISIONARIES AWARD
Sistema's case of ESG transformation in approaches to investment and asset
management ranked 2nd in the category "Economy. Business" at the annual
Russian award ceremony in the area of sustainable impact in the economy,
environment and society Change Management. Visionaries.
CORPORATE GOVERNANCE INDEX
TOP 20
Sistema is among the leaders of disclosure
of corporate governance
ESG RANKING OF PUBLIC FINANCIAL COMPANIES
TOP 3
Sistema is among the top 3 out of 30 leading Russian banks,
financial organisations and insurance companies
CORPORATE CHARITY RATING
A
Sistrema is among
12 participants of the
2021 Leaders of Corporate
Charity rating
A+
MTS is a leader
in the rating
C+
Segezha Group is included
in the list of companies with
developing practices
ESG RATING OF SUSTAINABLE CORPORATE GOVERNANCE
A
MTS is demonstrating
best corporate
ESG practices
B+
Segezha Group has
well-developed corporate
ESG practices
A+
Sistema is one of the
leaders of corporate ESG
practices in Russia
AK&M SOCIAL PERFORMANCE RANKING
No. 1
Segezha Group's social
responsibility ranking
in the the pulp and paper and
timber processing industry
TOP 3
Segezha Group made it
to the top 3 by social eiciency
in the industry
TOP 3
MTS was ranked 2nd in the
telecommunications industry
and among the top 25 Russian
companies with RUB 100 bn+
revenues in 2020
ESG REPORTING RATING
MTS, Segezha Group and Etalon Group were included in the first sustainability
reporting rating of 61 companies. In October 2021, MTS's ESG reporting rating was
upgraded to the highest level.
ESG TRANSPARENCY RATING
1.95 POINTS
Information disclosure
at MTS is close to
maximum levels
1.80 POINTS
Segezha Group is the
only pulp and paper
company in the rating
1.98 POINTS
Sistema has the highest
level of transparency among
the companies of the
financial sector
Cooperation with Russia's regions
In the past year, Sistema signed strategic
cooperation agreements with several
entities of Russia (the Vologda, Irkutsk,
Nizhny Novgorod and Tyumen regions).
These agreements are aimed at
promoting a favourable economic and
social climate in the regions, making
them attractive for businesses and
comfortable for local residents and
tourists. The key areas of cooperation
include telecommunications, healthcare,
tourism, construction of residential
properties and infrastructure, timber
processing.
A strategic cooperation agreement between Sistema and the
government of the Vologda region provides for the establishment of a
special economic area that will include textile and timber processing
clusters. Plans for the future include advanced processing of timber and
manufacturing of new types of products. Development of the textile
industry envisages expansion of production capacity, creation of a
comfortable environment for the employees of the clothes manufacturing
industry and establishment of a textile cluster that will focus on the design
and making of clothes.
The cooperation agreement with the Tyumen region also provides for
development in the timber processing sector. Sistema will share its
competences in the field of implementation of information systems for
managing security at various facilities and processing data. Sistema is
also considering investing in the healthcare sector of the region.
Under the cooperation agreement with the Irkutsk region the parties aim
to bring investment, technologies and personnel training systems to the
region to ensure competitiveness of the forest industry enterprises. In
addition to supporting the manufacturing sector, Sistema also seeks to
develop the hospitality and recreation segment in the Irkutsk region.
SUSTAINABILITY MANAGEMENT RESPONSIBLE INVESTMENT SISTEMA.RU204 205
SISTEMA PJSFC / ANNUAL REPORT 2021

Key ESG areas Accessibility
andquality

Access to products, services
and information

Customer experience

Responsibility for products
Well-being

Human capital

Health and safety

Confidentiality and personal
data protection
Smart environment

Smart homes, cities and
industries

Operational eco-eiciency

Energy management and
climate change
The Corporation's activities are underpinned by developed corporate governance practices
and eective cooperation of the Group's companies.
Corporate
governance
and synergies

Business ethics

Human rights and relations
with stakeholders

Risk management

Innovation management

Sustainable supply chain
KEY ESG
AREAS
Sistema identified three key
ESG areas to cultivate through
investing, with a view to achieving
a meaningful positive impact
Sistema consistently invests in building intellectual potential: science
and education, advanced research, tech startups, new developments
and digitalisation. The Corporation cooperates with innovation support
institutes, creates its own R&D centres and facilitates the adoption of
advanced technologies and organisational innovations in its porolio
companies. Most of the projects implemented by the Corporation, its
assets and Sistema Charitable Foundation contribute to solving socially
important issues at the intersection of the key ESG areas.
Innovation and digital transformation
are the focus of the Corporation's
strategy.
ACCESSIBILITY AND QUALITY
SMART ENVIRONMENT
WELLBEING

Access to products,
services and information

Responsibility for products

Customer experience

Smart homes, cities
and industries

Operational eco-eiciency

Energy management
and climate change

Human capital

Health and safety

Confidentiality and personal
data protection
SISTEMA.RU 207
SISTEMA PJSFC / ANNUAL REPORT 2021
206 SUSTAINABILITY MANAGEMENT KEY ESG AREAS

Recognition of
achievements
in customer experience

MTS won in the category "Best corporate customer experience B2B. Telecom services,"
submitting a case on improvement of CJM
1
and EJM
2
in 2020. MTS pays substantial
attention to customers' satisfaction with every product, especially in the corporate
segment, where innovative services and new technologies appear much earlier than
in the mass market.

Etalon Group won a record number of awards - seven - in the residential housing
segment of Urban Awards 2021, a national award that was given for the 13th time.
Etalon was also named the Developer of the Year and was awarded by the award's
partner Mitsubishi Electric "For use of cutting-edge technology in construction."
Accessibility
for remote
regions

In 2021, MTS carried out over 50 projects for improvement and upgrade of mobile
communications in its regions of operations. An important task for the reporting
year was to provide communication and mobile internet to remote residential areas.
Mobile communications and internet networks were upgraded in the Central, Volga,
Ural and Siberian federal districts. Over 100 towns and villages in these districts
received access to internet and mobile communications. MTS also worked to improve
mobile communication along major transport arteries.

MTS deployed an NB-IoT network at Russia's Progress research station in Antarctica
to transmit data from devices of the Arctic and Antarctic Research Institute. The
trackers, sensors and network sensors will be used to study the movement of glaciers
and snow cover and to monitor the integrity of snow runways and microclimate in
residential and work premises. MTS also provided 2G mobile communication at the
Novolazarevskaya Antarctic research station. Now polar researchers will be able to
call their families and use messengers, thus remaining in touch with and not being
isolated from the outside world.

Ozon expanded its reach last year, expanding in the Siberian market and opening
its first fulfilment centre in the Novosibirsk region. The new centre has the capacity
to store up to 4 m SKUs
3
and process over 85,000 parcels per day. In addition to its
eastward expansion, Ozon opened the first fulfilment centre in Russia's westernmost
region, the Kaliningrad special economic zone. The new centres will enable the
company to increase the serviced area and the speed of delivery and also to create
new jobs.
Examples of key ESG eorts of porolio companies
Sistema and its porolio companies contribute
significantly to the formation of a competitive labour
and procurement market (including the engagement of
small and medium-size businesses), the modernisation of
infrastructure, industry and agriculture, the enhancement
of the accessibility and safety of products and services,
the development of the health and education systems and
the social and environmental well-being of communities
where they operate.
Given the vast diversity of sectors Sistema invests in,
sustainability risks and value creation potential vary across
the Group. Below we provide some of the most illustrative
examples of the eort’s porolio companies made in 2021.
Traditional synergies between assets enabled many cross-
sectional projects.
Development
of services
for business

VisionLabs and the digital construction ecosystem BIMDATA announced start of
technological partnership. The companies joined eorts to develop a system that
will enhance control over implementation of construction projects, personnel and
work progress. Their cooperation is expected to produce a new digital service for the
construction industry. It will be based on the BIMDATA plaorm and VisionLab's face
and object recognition technology.

The AI Centre of MTS signed a cooperation agreement with Plug and Play, a Silicon
Valley accelerator. This will give Russian startups access to Western investments
and expertise, while Plug and Play will get access to the Russian market. Under the
agreement, startups from MTS's accelerator will be able to undergo training at Plug
and Play and raise funding from its partners across the world.
Development
of human
capital

MTS started an academic programme to teach students of several leading Russian
tech schools to develop NB-IoT devices. The schools participating in the project
are the ones where the operator has its NB-IoT network deployed: The Moscow
Institute of Electronics and Mathematics of the Higher School of Economics, the
Russian Technological University, the St Petersburg State University of Aerospace
Instrumentation, the Tomsk State University of Control Systems and Radioelectronics,
the Ural Federal University and the Northeastern Federal University. The students will
get access to the necessary equipment to develop energy-saving devices, while the
teachers are invited to take advice from the company's experts.

Segezha Group's Segezha Pulp and Paper Mill (PPM) and the Northern College,
a vocational school in the Republic of Karelia, launched a programme for the
development of the college and upgrade of its facilities in 2021-2025. The programme
was developed under the previously signed agreement on cooperation in training
personnel for Segezha PPM. The funds allocated by the company during the five
years of the programme will go towards upgrading the facilities and creating a
comfortable study environment. The Northern College, in turn, will train students in
occupations required by the mill. In 2021, Segezha PPM allocated about RUB 2 m for
the development of the college.
Development
of healthcare
services

MTS and the Cardiology Research Institute of Tomsk National Research Medical
Centre of the Russian Academy of Sciences announced a strategic partnership
in digital healthcare. The parties intend to cooperate in the development and
implementation of digital solutions, IT tools and services for the medical, research
and educational activities of the cardiology centre. The agreement envisages
experimental and clinical testing of these solutions at the Cardiology Research
Institute.

MTS and representatives of the Vologda region's healthcare department and
Vologda city clinic No 3 signed an agreement on launch of a pilot project for remote
blood pressure monitoring, MTS 120/80. The system makes it easier to monitor patients
with cardiovascular diseases. It enables doctors to check on patients remotely, which
is especially relevant during lockdowns caused by the COVID-19 pandemic.

Medsi continues introducing digital solutions at its clinics. Last year, it introduced
the MUSE information system and the Onconet remote monitoring system. Both
services aim at improving the quality of telemedicine, reducing the number of errors
in diagnosing and simplifying communications between doctors and patients. They
also make it possible for doctors to exchange information within the chain of clinics.
At present, about 20 Medsi clinics are connected to MUSE, with the remaining clinics
across the country expected to join next year.
1 CJM (customer journey map) is a tool for studying customer experience and points of interaction with a brand, product or service provided by a company.
2 EJM (employee journey map) is a tool for studying experience of an employee or candidate and their interaction with customers or other employees.
3 SKU – stock keeping unit.
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SISTEMA PJSFC / ANNUAL REPORT 2021

Development
of healthcare
services

In 2021, Medsi opened several specialised clinics for various diseases. In cooperation
with the best clinics and experts of Israel, the United States and Australia, it opened
the International Melanoma Centre in Moscow as part of Medsi's International
Oncology Centre. It brings together the best competences and expertise of the
parties and oers patients a comprehensive checkup for skin growths that takes just
one day.

On the basis of the same International Oncology Centre, Medsi opened a centre for
breast diagnostics, the Quick Help Clinic. One of its advantages is that a patient with
suspected cancer may receive a doctor's opinion and referral for treatment on the
day of appointment.

During the workshop "Breast Cancer: Patient's Journey Today. Secondary
Lymphostasis," the centre organised Russia's first ever live streaming of
transplantation of lymph nodes for treating lymphostasis during breast cancer. The
demonstration of the technique thus became available to oncologists from remote
regions of the country.

In autumn 2021, Medsi opened an Ophthalmology Centre with a surgery department
in Moscow. The centre will provide multi-specialty care for a wide range of vision
disorders. Its daily capacity is about 50 patients, and its cutting-edge equipment will
make it possible to peorm some 13,000 surgeries a year.

Specialised or multi-specialty centres are being opened on the basis of Medsi's
clinicodiagnostic centres across the country. Notably, an outpatient cancer centre
opened in Shchyolkovo, the Moscow region, which oers free consultation and
treatment to any resident of the region. In Perm and Izhevsk, Medsi opened the
regions' first centres for prevention of strokes and heart attacks. The company plans
to later use them as centres for outpatient cancer treatment. In Moscow, Medsi
opened five multi-specialty local clinics last year, the capacity of each being about
80,000 patients a year.
Improving quality
of life in regions
of operations

MTS began developing a 5G network in larger cities of Russia. In mid-2021, the
operator launched 19 pilot 5G zones in the most popular areas of Moscow. In addition
to development of wireless communication in 2021, MTS focused on the development
of products aimed at improving city infrastructure. One of the key solutions was the
development of smart video surveillance, which helps to ensure security of individual
apartment blocks and the city in general. In future, video analytics using 5G networks
may be used to optimise traic flows in the city, to ensure traic safety and create a
safe city environment for pedestrians.

Etalon Group entered the Kuzbass real estate market. The company will develop
residential construction projects in Kemerovo and Novokuznetsk. State-of-the-
art comfortable housing will be built in the suburbs of the two cities. In addition to
Kuzbass, the company began developing projects in Novosibirsk and Omsk, thus
venturing beyond the Urals.

Sitronics Group began developing infrastructure for electric cars. Aer commissioning
a pilot project for placement of charging stations in Moscow, Sitronics started
development of such infrastructure in Nizhni Novgorod and Ulyanovsk. Charging
stations are mostly placed in cities' transport hubs (railway stations, airports, etc.)

Segezha Group supports the regions where it has industrial assets by investing
in the development of social and urban infrastructure. One of the key areas in
the company's sustainability eorts is ensuring comfortable living conditions for
local population. Last year, the company invested in the development of social
infrastructure, construction of roads and supply of essential products and services.
Special attention is paid to supporting local communities in the social and cultural
sphere and in the areas of healthcare, education and sports.
Restoration
of natural
ecosystems

Being one of the country's largest logging companies, Segezha Group takes
reproduction of forest resources very seriously. Its enterprises are working towards
ensuring that the area of clear cutting is equal to the area of reforestation.
Reforestation work is peormed on all clear-cut plots within three years aer the
end of logging and removal of logged timber. At the time of logging, eort is made
to preserve undergrowth on logging plots and to mineralise the soil suace. Forest
crops receive technological and silvicultural care to prevent growth of grass, bush
and tree weeds, washaway of soil by water, its blowout and squeezing out by frost.
At each stage of forest use, the company takes into account the transformation of
animal habitats and the state of water, soil and unique vulnerable landscapes that
are classified as protective forests. In 2021, the company increased the reforestation
area by almost 32% compared to the previous year, to 38,647 ha.

In addition, Segezha Group implements an intensive forest use model which ensures
forming of sustainable forests, increase of economic eect from improvement
cutting in young forests and preservation of the forest's biological functions. New
rules of forest use intensification came into force on 1 January 2021. They were
developed by the Natural Resources and Ecology Ministry of the Republic of Karelia
and the St Petersburg Research Institute of Forest Management with Segezha
Group's involvement. Field studies were peormed on the plots leased by the
company in Karelia. Segezha Group's enterprises in the republic were the first to start
implementing the new rules. The project's preparatory phase alone took roughly RUB
365 m in investment.

In 2021, Lesosibirsk Woodworking Plant No 1 and Novoyeniseisky Timber and
Chemical Plant (both subsidiaries of Segezha Group) released about 300,000 young
sturgeons and graylings in the Yenisey river as part of an ecological programme for
reproduction ofbiological water resources and habitats. Next year, Segezha Groups
plans another release in the Krasnoyarsk region so that surviving fish will produce
spawn in a few years and replenish the population of Siberian sturgeons.

Steppe AgroHolding has a large-scale project for improvement of environment and
preservation of soil fertility, which envisages planting of trees in the Rostov region. The
project provides for plantings on 55 ha of land and will cost the company some RUB
4.5 m. This is the company's another step in the implementation of the environmental
part of its ESG strategy. The new project addresses two sustainable development
goals: climate change and rational use of the ecosystem.
Enhancement
of operating
eco-eiciency

Steppe AgroHolding has received its first I-REC certificate
6
, which confirms the
consumption of 100 MWh of electricity from renewable energy sources. One
of Steppe's dairy farms has transitioned to use of power supplied by a small
hydropower plant in Bashkortostan. The new experience marks the start of a large-
scale programme that envisages increase of the share of electricity produced by
renewable energy sources.

Segezha Group has carried out an environmental programme at Segezha Pulp and
Paper Mill aimed at reducing air emissions, including from lime kilns and surrounding
machines. The company is moving away from use of fuel oil, replacing it with timber
processing waste (branches, small trees, bushes, bark, etc.), which is used as fuel in
the mills' energy cycle. The timber processing enterprises in the Krasnoyarsk and St
Petersburg regions have completed transition to use of organic fuel. In addition, the
company is replacing equipment used for timber processing and paper production.
The new equipment will consume less energy and produce less air emissions.
1 I-REC (International Renewable Energy Certificate) - international certificates for renewable energy.
SUSTAINABILITY MANAGEMENT KEY ESG AREAS SISTEMA.RU210 211
SISTEMA PJSFC / ANNUAL REPORT 2021

Sistema Charitable Foundation (SCF) is one of the largest charitable foundations in Russia. It was
established back in 2004 to manage the social activities and projects of Sistema and its porolio
companies. SCF invests in education and professional development, supports cultural and
educational projects, and provides social assistance through the creation of a plaorm for the
implementation and promotion of the Corporation's charitable initiatives. In addition to investments
and support of charitable projects, SCF organises various charitable events and campaigns targeting
people of various ages and social categories in all regions of Russia.
In 2021, SCF was able to fully launch its educational IT
plaorm of the Li to the Future. It also established a
sustainable network of partnerships with experts and
organisations required for its key projects.
The Foundation currently has several key programmes:

Li to the Future - an all-Russian career guidance and
training program that promotes career opportunities at
Sistema Group

Culture and Education - launch and development of
projects to develop and promote inclusive museum
environment

Social Environment - support of underprivileged groups of
population, implementation of projects supporting people
and non-profits, events targeting interaction within
various groups

Sistema Charity - development and promotion of best
practices in the area of charity and social protection
In the area of culture and education, SCF introduces
digital solutions and new approaches that are the most
eicient way to increase accessibility of culture and art.
In 2021, SCF supported the Russian Museum in opening its
first permanent tactile exposition and the first exhibition
of artists with special mental needs. The launch of this
project resulted in creation of five virtual guides on the
Russian Culture Ministry's plaorm Artefact, which were
used by over 1.3 m online visitors; and about 100,000 people
participated in the Cultural Weekend oline events.
The following events were organised as part of the Social
Environment section:

Regional festivals Sistema Fest were held in the Republic
of Altay, Udmurtia, the Kurgan and Kostroma regions. They
were attended by about 20,000 people in total

Over 50 corporate volunteering events were held, with
500+ employees of Sistema Group involved in volunteering

SCF oers support for war veterans to strengthen
connection between generations and preserve memory
about the country's history

In support of sports and a healthy lifestyle, Sistema
organised a charitable race, #ZaLes (#ForForest in
Russian), in the Rostov region, during which participants
planted about 3,250 oaks and ash-trees
Sistema Charity is one of the key focus areas of SCF. In
2021, SCF organised a grant contest, Sistema for a Good
Cause, and received 69 initiatives with an aggregate
budget of over RUB 12 m. Employees from 11 Sistema Group
companies from 23 regions of Russia participated in the
competition, submitting projects aimed at preserving
cultural and historical heritage, child rearing, development
of comfortable city infrastructure, animal protection and
support of sports.
›
100 THSD
PEOPLE PARTICIPATED IN
THE CULTURAL WEEKEND
OFFLINE EVENTS
›
50
CORPORATE
VOLUNTEERING
EVENTS WERE HELD
›
500
EMPLOYEES OF SISTEMA
GROUP INVOLVED IN
VOLUNTEERING
23
REGIONS OF RUSSIA
PARTICIPATED IN THE
CHARITY COMPETITION
BEST SUSTAINABILITY PRACTICES UN 2021
An array of inspiring cases is appearing around the world that can be
replicated and scaled up. Having set out to create an SDG Good Practices
database, a committee of UN experts studied submissions made over 2020-
early 2021 and picked 400 best cases from around the globe.
The Li to the Future project was named among the SDG Good Practices.
The programme is designed to pursue four sustainable development goals:
Quality Education, Decent Work & Economic Growth, Gender Equality, and
Reduced Inequalities.
AMONG
400
BEST CASES FROM
AROUND THE GLOBE
Li to the Future
Li to the Future is a flagship educational programme of Sistema
Charitable Foundation. It was launched in 2020 and since then has
attracted about 235,000 participants. About 70 educational materials
were issued, and hundreds of young professionals and students received
help with finding internships or first jobs.
In 2021, an IT plaorm was launched to attract new users.
This made it possible to assess the demand for developed
products and determine focus areas for attracting new
users.
Aer a full-scale launch of the plaorm and based on
the feedback received from the target audience, SCF
analysed the key aspects of the project and the opinions of
stakeholders, which enabled it to formulate the key areas
of project development.

Development of online education oriented towards
comprehensive personal development

Expansion of the plaorm's focus to include
metadisciplinary skills and competences in sustainable
development, which will later help to train highly sought
professionals

Development of a programme of internships and
employment at the Corporation
In 2021, the Li to the Future programme proved to be
eective in the achievement of the set targets and was
greatly sought aer by users and partners, creating
prerequisites for making it an open plaorm.
The main objective for 2022 is to transform the process and
increase the value of user engagement with the plaorm.
The Li to the Future programme acts as a consolidator
of SCF's key projects, making it possible to create a
comprehensive educational and social programme across
the regions where the Corporation operates.
235 THSD
PARTICIPANTS TOOK PART IN
EDUCATIONAL PROGRAMME
SOCIAL INVESTMENTS
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AUDITED
CONSOLIDATED
FINANCIAL
STATEMENTS
SISTEMA.RU
SISTEMA PJSFC / ANNUAL REPORT 2021
215214

SISTEMA PJSFC
AND SUBSIDIARIES
Consolidated Financial Statements for 2021
and Independent Auditor’s Report

SISTEMA PJSFC AND SUBSIDIARIES
TABLE OF CONTENTS
Page
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION
AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR 2021 1
INDEPENDENT AUDITOR’S REPORT 2-7
CONSOLIDATED FINANCIAL STATEMENTS FOR 2021:
Consolidated statement of profit or loss 8
Consolidated statement of comprehensive income 9
Consolidated statement of financial position 10-11
Consolidated statement of changes in equity 12
Consolidated statement of cash flows 13-14
Notes to the consolidated financial statements
1. General 15
2. Basis of preparation 15
3. Significant accounting policies, judgements, estimates and assumptions 15
4. Segment information 20
5. Discontinued operations 23
6. Business combinations 24
7. Capital transactions of subsidiaries 31
8. Revenue 32
9. Impairment of long-lived assets 37
10. Impairment of financial assets 38
11. Income taxes 38
12. Employee benefits expenses 41
13. Property, plant and equipment 41
14. Investment property 44
15. Goodwill 45
16. Other intangible assets 48
17. Investments in associates and joint ventures 51
18. Profit on disposal of other assets 58
19. Other financial assets 58
20. Restricted cash 65
21. Inventories 65
22. Accounts receivable 66
23. Equity 67
24. Accumulated other comprehensive income 67
25. Loans and borrowings 68
26. Lease liabilities and right-of-use assets 72
27. Bank deposits and liabilities 73
28. Other financial liabilities 74
29. Provisions 74
30. Earnings/(loss) per share 76
31. Capital and financial risk management 76
32. Derivative instruments 79
33. Fair values 81
34. Related party transactions 83
35. Subsidiaries 84
36. Non-cash transactions 85
37. Reconciliation of liabilities arising from financing activities 86
38. Contingencies and commitments 87
39. Subsequent events 91

1
SISTEMA PJSFC AND SUBSIDIARIES
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL
OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Management is responsible for the preparation of the consolidated financial statements that present fairly
the financial position of Sistema Public Joint Stock Financial Corporation and its subsidiaries (the “Group”)
as of 31 December 2021, and the results of its operations, cash flows and changes in equity for 2021,
in compliance with International Financial Reporting Standards as issued by the International Accounting
Standards Board (“IFRSs”).
In preparing the consolidated financial statements, management is responsible for:
• Properly selecting and applying accounting policies;
• Presenting information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information;
• Providing additional disclosures when compliance with the specific requirements in IFRSs are
insufficient to enable users to understand the impact of particular transactions, other events and
conditions on the Group’s consolidated financial position and financial performance;
• Making judgements and assumptions that are reasonable and prudent;
• Stating whether IFRSs have been followed, subject to any material departures disclosed and
explained in the consolidated financial statements; and
• Making an assessment of the Group’s ability to continue as a going concern.
Management is also responsible for:
• Designing, implementing and maintaining an effective and sound system of internal controls,
throughout the Group;
• Maintaining adequate accounting records that are sufficient to show and explain the Group’s
transactions and disclose with reasonable accuracy at any time the consolidated financial position of
the Group, and which enable them to ensure that the consolidated financial statements of the Group
comply with IFRSs;
• Maintaining statutory accounting records in compliance with the Russian legislation and accounting
standards;
• Taking such steps as are reasonably available to them to safeguard the assets of the Group; and
• Preventing and detecting fraud and other irregularities.
The consolidated financial statements of the Group for 2021 were approved by:
________________________
Vladimir Chirakhov
Chief Executive Officer (President)
________________________
Vladimir Travkov
Vice President for Finance (CFO)
7 April 2022

AO Deloitte & Touche CIS

5 Lesnaya Street

Moscow, 125047,

Russia

Tel: +7 (495) 787 06 00

Fax: +7 (495) 787 06 01

deloitte.ru

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© AO Deloitte & Touche CIS. All rights reserved.

INDEPENDENT AUDITOR’S REPORT

To the Shareholders and the Board of Directors of Sistema Public Joint Stock Financial

Corporation

Opinion

We have audited the consolidated financial statements of Sistema Public Joint Stock

Financial Corporation (“Sistema”) and its subsidiaries (the “Group”), which comprise the

consolidated statement of financial position as at 31 December 2021 and the consolidated

statement of profit or loss, consolidated statement of comprehensive income, consolidated

statement of changes in equity and consolidated statement of cash flows for the year then

ended, and notes to the consolidated financial statements, including a summary of

significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all

material respects, the consolidated financial position of the Group as at 31 December 2021,

and its consolidated financial performance and its consolidated cash flows for the year then

ended in accordance with International Financial Reporting Standards (“IFRSs”).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”).

Our responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Consolidated Financial Statements section of our report.

We are independent of the Group in accordance with the Auditor’s Independence Rules and

the Auditor’s Professional Ethics Code, that are relevant to our audit of the financial

statements in the Russian Federation together with the ethical requirements of the

International Ethics Standards Board for Accountants’ Code of Ethics for Professional

Accountants (the “IESBA Code”), and we have fulfilled our other ethical responsibilities in

accordance with these requirements and the IESBA Code. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the consolidated financial statements of the current period.

These matters were addressed in the context of our audit of the consolidated financial

statements as a whole, and in forming our opinion thereon, and we do not provide

a separate opinion on these matters.

3
Why the matter was determined to be
a key audit matter
How the matter was addressed in the audit
Diversified structure of the Group
Sistema is a holding company that owns
mainly controlling stakes in its subsidiaries,
whose results are included in the
consolidated financial statements. The
large number of entities of the Group and
diversified nature of their operations
require the Group’s management to design
and implement group wide controls,
including monitoring and control activities
to ensure timely, reliable and complete
financial information received from its
subsidiaries.
Audit procedures regarding the financial
information of the subsidiaries included in
the consolidated financial statements may
be performed by us or by the auditors of
those subsidiaries (“components”) acting
under our supervision. As the group
auditor, we are fully responsible for
conducting the audit and forming our audit
opinion.
We focused on this matter because the
diversified structure of the Group has a
significant impact on our audit approach,
and the nature and extent of our
involvement in component auditors’ work
is significant.
We obtained an understanding of the group-wide
controls over the consolidation process and the
preparation of the consolidated financial
statements, including instructions of the Group’s
management to its subsidiaries.
Our audit approach was developed considering the
Group’s diversified structure and associated risks of
material misstatement of the consolidated financial
statements. It included determination of necessary
procedures and audit scope in relation to each
component’s financial information, depending on
its significance for the Group and identification of
risks of misstatement of their financial information.
The nature and extent of our involvement in the
component auditors’ work was also dependent on
our assessment of their professional competence
in the context of allocated scope.
To obtain reasonable assurance of fair presentation
of the components’ financial information, we
assessed risks and determined audit procedures
performed by the component auditors, and
evaluated the results of the procedures. This
included a critical analysis of the component
auditors’ documentation, discussion of significant
matters with the component auditors, component
or Group management and, if applicable, designing
and performing additional audit procedures.
We also performed procedures with respect
to consolidation adjustments to the financial
information of the subsidiaries in order to assess
their nature, completeness and accuracy.
Significant non-routine transactions
In light of its strategy, the Group regularly
conducts complex acquisitions and
disposals, debt restructurings and other
significant non-routine transactions.
We focus on these matters because the
appropriate accounting treatment of such
transactions is often complex and requires
exercise of significant judgement, in
particular, in determining whether or not
the Group has control over its investees,
Our procedures included reviewing legal documents
to fully understand the terms and conditions of
each transaction and therefore the associated
accounting implications and evaluating
documentation of management’s positions on how
IFRSs were applied to the transactions.
In relation to the previously mentioned specific
transactions, we:
• analysed legal documents and evaluated the
appropriateness of management’s conclusions
on whether or not the Group has control over

4
Why the matter was determined to be
a key audit matter
How the matter was addressed in the audit
and whether or not the Group has assumed
obligations to third-party investors.
In the current period, this included, among
others, obtaining control over Binnopharm
Group, the Group’s investment in Inter
Forest Rus and its subsidiaries and loss of
control over Segezha Zapad. See Note 6 and
Note 17 to the consolidated financial
statements.
the investees in the context of investee’s
governance structure, size of the Group’s
shareholding relative to other shareholders,
dispersion of other vote holdings and other
factors relevant to determining whether the
Group has current ability to direct relevant
activities of the investees;
• verified the correctness of the approach for
valuation of identified assets acquired and
liabilities assumed through business
combinations;
• assessed other aspects of the transactions,
evaluated management’s conclusions on
accounting for any financial assets and
liabilities stipulated by transaction documents,
and, where relevant, assessed the
appropriateness of fair value measurements;
• verified the compliance of the disclosures
contained in the consolidated financial
statements with IFRS requirements.
Compliance with anti-bribery laws and
regulations and associated accounting and
disclosure implications
In March 2019, the Group’s subsidiary MTS
reached a resolution with the United States
Securities and Exchange Commission
(“SEC”) and the United States Department
of Justice (“DOJ”) relating to the
investigation concerning the Group’s
former subsidiary in Uzbekistan. The Group
consented to the commencement of an
administrative cease-and-desist order (the
“Order”) by the SEC and entered into a
deferred prosecution agreement (“DPA“).
Under the DPA and the Order in September
2019 the Group appointed an independent
compliance monitor (“Independent
Monitor”) for, inter alia, review, testing and
improving MTS’ anti-corruption compliance
code, policies, and procedures for a period
of three years. In 2021, the DOJ and SEC
approved a one year extension of the
monitorship, which is permitted by the
terms of the DPA and the Order.
Our audit procedures related to the Group’s
estimation of any contingencies related to any
potential instance of non-compliance with anti-
corruption laws and regulations included the
following, among others:
• We inspected the laws and regulations MTS
has to comply with in order to obtain an
understanding of the relevance and
applicability to MTS and to assess any
potential penalties that may arise for non-
compliance;
• We read the procedures performed by the
Independent Monitor and evaluated the
implications of their findings, including
discussing these with management as well as
internal and external legal advisors;
• We inquired management regarding their
follow up on the results of internal and
external investigations and on the design and
operational effectiveness of the MTS’s
compliance programs and internal controls
relating to the prevention and detection of
fraud and corruption;

5
Why the matter was determined to be
a key audit matter
How the matter was addressed in the audit
Given the significant judgments required to
be made by management in order to
estimate contingencies related to any
potential instance of non-compliance with
anti-corruption laws and regulations, the
audit procedures necessary to evaluate
management’s judgments in this area as of
31 December 2021 required a high degree
of auditor judgment in evaluating whether
the audit evidence obtained supports
management’s estimate.
• We tested the design and operating
effectiveness of internal controls at MTS,
including, amongst others, the control
environment (including whistle-blower and
internal fraud management cases) and the
controls for the adherence of business
partners to the anti-corruption codes;
• We read the minutes of the MTS Board of
Directors’ meetings;
• We evaluated management’s assessment of
compliance with anti-corruption laws and
regulations as well as an estimation of
contingencies related to any potential
instances of non-compliance;
• We obtained letters from external and internal
legal counsel; and
• We evaluated the Group's accounting policy
with respect to the accounting for provisions
and disclosure of contingent liabilities to
determine if the existing policy continues to
be appropriate, and assessed the compliance
of the disclosures in the consolidated financial
statements against the requirements of IAS 37
“Provisions, Contingent Liabilities and
Contingent Assets”.
Other Information
Management is responsible for the other information. The other information comprises
the information included in the annual report and quarterly report, but does not include the
consolidated financial statements and our auditor’s report thereon. The annual report and
quarterly report are expected to be made available to us after the date of this auditor’s
report.
Our opinion on the consolidated financial statements does not cover the other information
and we will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
When we read the annual report and quarterly report, if we conclude that there is
a material misstatement therein, we are required to communicate the matter to those
charged with governance.

6
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with IFRSs, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.

7
• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated financial statements
of the current period, and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Vladimir Biryukov,
(ORNZ #21906100113),
Engagement partner,
Acting based on the power of attorney issued by the General Director on 24.12.2021
authorizing to sign off the audit report on behalf of AO “Deloitte & Touche CIS”
(ORNZ #12006020384)
7 April 2022

8
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(In millions of Russian Rubles, except for per share amounts)
Notes
2021
2020
Continuing operations
Revenue
8
802,398
691,626
Cost of sales
(392,762)
(330,055)
Selling, general and administrative expenses
(154,271)
(134,176)
Depreciation and amortisation
(134,160)
(120,492)
Reversal of impairment/(impairment) of long-lived assets
9
408
(5,621)
Impairment of financial assets
10
(4,101)
(2,956)
Taxes other than income tax
(3,489)
(4,134)
Share of the profit or loss of associates and joint ventures, net
17
19,830
(405)
Profit on disposal of other assets
18
-
11,142
Other income
17,440
14,829
Other expenses
(7,326)
(10,354)
Operating income
143,967
109,404
Finance income
6,304
5,330
Finance costs
(71,503)
(71,468)
Currency exchange loss
(1,651)
(18,643)
Changes in the fair value of financial instruments
16,050
21,883
Profit before tax
93,167
46,506
Income tax expense
11
(40,294)
(8,341)
Profit from continuing operations
52,873
38,165
Discontinued operations
Profit from discontinued operations
5
470
3,122
Net profit for the year
53,343
41,287
Attributable to:
Shareholders of Sistema PJSFC
17,343
10,216
Non-controlling interests
36,000
31,071
53,343
41,287
Profit per share (basic and diluted), Russian Rubles:
30
From continuing operations
1.81
0.91
From continuing and discontinued operations
1.83
1.09
The accompanying notes are an integral part of these consolidated financial statements.
________________________
Vladimir Chirakhov
Chief Executive Officer (President)
________________________
Vladimir Travkov
Vice President for Finance (CFO)
7 April 2022

9
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In millions of Russian Rubles)
2021
2020
Net profit for the year
53,343
41,287
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Currency translation (loss)/gain on foreign operations in subsidiaries
(1,458)
12,320
Currency translation gain/(loss) on foreign operations in associates
and joint ventures
95
(98)
Items that will not be reclassified subsequently to profit or loss:
Unrecognised actuarial gain
215
-
Other comprehensive (loss)/income, net of tax
(1,148)
12,222
Total comprehensive income
52,195
53,509
Attributable to:
Shareholders of Sistema PJSFC
15,375
21,517
Non-controlling interests
36,820
31,992
Total comprehensive income
52,195
53,509
The accompanying notes are an integral part of these consolidated financial statements.
________________________
Vladimir Chirakhov
Chief Executive Officer (President)
________________________
Vladimir Travkov
Vice President for Finance (CFO)
7 April 2022

10
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(In millions of Russian Rubles)
31 December
31 December
Notes
2021
2020
Assets
Non-current assets
Property, plant and equipment
13
521,041
427,311
Investment property
14
13,160
12,649
Goodwill
15
89,120
57,204
Other intangible assets
16
139,958
99,749
Right-of-use assets
26
195,525
153,103
Investments in associates and joint ventures
17
63,490
73,856
Deferred tax assets
11
31,471
41,402
Other financial assets
19
214,986
158,629
Deposits in banks
20
22
Other assets
13
36,156
22,916
Total non-current assets
1,304,927
1,046,841
Current assets
Inventories
21
77,674
46,449
Contract assets
8
8,272
6,306
Accounts receivable
22
70,029
56,458
Advances paid and prepaid expenses
18,237
15,302
Current income tax assets
5,103
5,449
Other taxes receivable
25,245
17,636
Other financial assets
19
154,465
104,573
Deposits in banks
1,549
1,755
Restricted cash
20
4,909
4,310
Cash and cash equivalents
81,883
113,693
Other assets
2,563
2,544
Total current assets
449,929
374,475
Total assets
1,754,856
1,421,316

11
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
(In millions of Russian Rubles)
31 December
31 December
Notes
2021
2020
Equity and liabilities
Equity
Share capital
23
869
869
Treasury shares
23
(6,435)
(3,029)
Additional paid-in capital
95,768
75,279
Accumulated loss
(21,623)
(27,025)
Accumulated other comprehensive income
24
16,785
18,753
Equity attributable to shareholders of Sistema
85,364
64,847
Non-controlling interests
40,994
22,482
Total equity
126,358
87,329
Non-current liabilities
Loans and borrowings
25
641,511
640,570
Lease liabilities
26
165,221
147,803
Bank deposits and liabilities
27
16,755
4,199
Deferred tax liabilities
11
42,398
34,769
Provisions
29
8,026
7,388
Other financial liabilities
28
15,972
3,745
Other liabilities
12,159
6,774
Total non-current liabilities
902,042
845,248
Current liabilities
Loans and borrowings
25
209,254
83,391
Lease liabilities
26
22,616
17,772
Accounts payable
132,353
102,148
Bank deposits and liabilities
27
225,795
195,346
Income tax payable
951
1,029
Other taxes payable
22,547
15,540
Dividends payable
5,258
3,325
Provisions
29
23,256
16,612
Contract liabilities and other liabilities
8
52,390
49,844
Other financial liabilities
28
32,036
3,732
Total current liabilities
726,456
488,739
Total equity and liabilities
1,754,856
1,421,316
The accompanying notes are an integral part of these consolidated financial statements.
________________________
Vladimir Chirakhov
Chief Executive Officer (President)
________________________
Vladimir Travkov
Vice President for Finance (CFO)
7 April 2022

12
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(In millions of Russian Rubles)
The accompanying notes are an integral part of these consolidated financial statements.
Accumulated other
comprehensive
Equity
income/(loss)
attributable to
Non-
Additional
Treasury
Accumulated
Currency
shareholders
controlling
Share capital
paid-in capital
shares
loss
reserve
Other
of Sistema
interests
Total equity
1 January 2020
869
75,045
(5,971)
(36,020)
6,534
918
41,375
24,353
65,728
Net profit for the period
-
-
-
10,216
-
-
10,216
31,071
41,287
Other comprehensive income/(loss),
net of tax
-
-
-
-
11,400
(99)
11,301
921
12,222
Total comprehensive income/(loss)
-
-
-
10,216
11,400
(99)
21,517
31,992
53,509
Accrued compensation under long-term
motivation programs
-
431
2,663
-
-
-
3,094
-
3,094
Settlements under long-term
motivation programs
-
32
-
-
-
-
32
528
560
Capital transactions of subsidiaries (Note 7)
-
(229)
-
-
-
-
(229)
(8,194)
(8,423)
Sale of own shares
-
-
279
-
-
-
279
-
279
Dividends declared by Sistema PJSFC (Note 23)
-
-
-
(1,221)
-
-
(1,221)
-
(1,221)
Dividends declared by subsidiaries
-
-
-
-
-
-
-
(26,197)
(26,197)
31 December 2020
869
75,279
(3,029)
(27,025)
17,934
819
64,847
22,482
87,329
1 January 2021
869
75,279
(3,029)
(27,025)
17,934
819
64,847
22,482
87,329
Net profit for the period
-
-
17,343
-
-
17,343
36,000
53,343
Other comprehensive (loss)/income,
net of tax
-
-
-
-
(1,961)
(7)
(1,968)
820
(1,148)
Total comprehensive income/(loss)
-
-
-
17,343
(1,961)
(7)
15,375
36,820
52,195
Acqusition and sale of subsidiaries
-
-
-
-
-
-
-
15,374
15,374
Accrued compensation under long-term
motivation programs
-
442
1,521
-
-
-
1,963
-
1,963
Settlements under long-term
motivation programs of subsidiaries
-
1,374
-
-
-
-
1,374
3,016
4,390
Capital transactions of subsidiaries (Note 7)
-
24,752
-
-
-
-
24,752
10,910
35,662
Purchase of own shares
-
-
(5,425)
-
-
-
(5,425)
-
(5,425)
Sale of own shares
-
(218)
498
-
-
-
280
-
280
Effect of derivatives reclassification (Note 6)
-
(5,861)
-
(8,179)
-
-
(14,040)
(13,881)
(27,921)
Dividends declared by Sistema PJSFC (Note 23)
-
-
-
(2,944)
-
-
(2,944)
-
(2,944)
Dividends declared by subsidiaries
-
-
-
(818)
-
-
(818)
(33,727)
(34,545)
31 December 2021
869
95,768
(6,435)
(21,623)
15,973
812
85,364
40,994
126,358

13
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions of Russian Rubles)
2021
2020
Cash flows from operating activities
Net profit for the year
53,343
41,287
Adjustments for:
Depreciation and amortisation
134,160
120,492
Share of the profit or loss of associates and joint ventures, net
(19,830)
405
Profit from sales of stakes in associates and joint ventures
-
(3,368)
Finance income
(6,304)
(5,330)
Finance costs
71,508
71,468
Changes in the fair value of financial instruments
(15,935)
(21,798)
Income tax expense
40,294
8,341
Currency exchange loss
1,626
18,621
Gain from discontinued operations
(470)
(2,880)
Profit on disposal of property, plant and equipment
(3,483)
(3,000)
Profit on disposal of other assets
-
(11,142)
Expected credit losses allowance on loans to customers
12,218
9,601
Non-cash compensation to employees
7,045
3,933
(Reversal) of impairment/impairment of long-lived assets
(408)
5,621
Impairment of financial assets
4,101
2,956
Other non-cash items
(5,314)
2,332
272,551
237,539
Movements in working capital:
Bank loans to customers and interbank loans due from banks
(102,038)
(36,748)
Bank deposits and liabilities
46,161
27,777
Restricted cash
163
(853)
Financial assets at fair value through profit or loss
(919)
(5,227)
Accounts receivable
(1,671)
(6,572)
Advances paid and prepaid expenses
(665)
(17,030)
Other taxes receivable
(4,700)
250
Inventories
(18,277)
(15,327)
Accounts payable
(7,892)
6,540
Subscriber prepayments
2,215
(143)
Other taxes payable
5,277
(195)
Advances received and other liabilities
27,532
34,607
Interest paid
(71,469)
(70,302)
Income tax paid
(31,708)
(23,706)
Dividends received from associates and joint ventures
7,015
6,217
Net cash provided by operating activities
121,575
136,827

14
SISTEMA PJSFC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
(In millions of Russian Rubles)
2021
2020
Cash flows from investing activities
Payments for purchases of property, plant and equipment
(123,541)
(94,123)
Proceeds from sale of subsidiaries, net of cash
1,336
2,988
Proceeds from sale of property, plant and equipment
6,141
6,661
Payments to obtain and fulfill contracts
(4,224)
(5,355)
Payments for purchases of intangible assets
(43,635)
(33,655)
Payments for businesses, net of cash acquired
(36,153)
(3,410)
Payments for investments in associates and joint ventures
(11,522)
(18,909)
Proceeds from sale of investments in associates and joint ventures
-
25,808
Payments for financial assets, long-term
(25,848)
(15,190)
Proceeds from sale of financial assets, long-term
10,503
7,236
Proceeds from disposal of other assets
-
5,104
Payments for financial assets, short-term
(4,888)
(5,294)
Proceeds from sale of financial assets, short-term
6,105
16,728
Interest received
6,739
4,338
Other
(217)
(982)
Net cash used in investing activities
(219,204)
(108,055)
Cash flows from financing activities
Proceeds from borrowings
259,820
412,392
Principal payments of loans and borrowings
(147,999)
(318,492)
Debt issuance costs
(308)
(113)
Principal payments of lease liabilities
(19,682)
(17,094)
Acquisition of non-controlling interests in existing subsidiaries
(34,454)
(17,169)
Proceeds from transactions with non-controlling interests
50,366
394
Dividends paid
(35,560)
(39,661)
Repurchase of own shares
(5,425)
-
Net cash provided by financing activities
66,758
20,257
Effect of foreign currency translation on cash and cash equivalents
(939)
995
Net (decrease)/ increase in cash and cash equivalents
(31,810)
50,024
Cash and cash equivalents at the beginning of the year
113,693
63,669
Cash and cash equivalents at the end of the year
81,883
113,693
The accompanying notes are an integral part of these consolidated financial statements.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
15
1. GENERAL
Sistema Public Joint Stock Financial Corporation or Sistema PJSFC (the “Company”, together with its
subsidiaries, the “Group”) invests in, and manages a range of companies which operate in various
sectors of economy, including telecommunications, retail, high technology, finance, pulp and paper,
utilities, pharmaceuticals, healthcare, agriculture, real estate and tourism. The Company and the
majority of its subsidiaries are incorporated in the Russian Federation (“RF”). The Company’s
registered address is building 1, 13 Mokhovaya street, 125009, Moscow.
The controlling shareholder of the Company is Vladimir Evtushenkov. Minority holdings are held by
certain top executives and directors of the Company. The shares are listed on the London Stock
Exchange in the form of Global Depositary Receipts (“GDRs”) and on the Moscow Exchange.
2. BASIS OF PREPARATION
These consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board
(“IASB”).
These consolidated financial statements have been prepared on the assumption that the Group will
continue to operate in the foreseeable future. As of 31 December 2021 short-term liabilities of the
Group exceeded its current assets by RUB 276,527 million. The Group determines that it generates
sufficient operating cash flow and has sufficient cash available to repay the Group’s current liabilities,
including, if necessary, unused credit facilities of RUB 485,128 million. The cash flows forecast
prepared by the management of the Group for a period of at least twelve months after the end of
the reporting period demonstrates the Group’s ability to pay off current liabilities within the terms
set by the contractual obligations.
These consolidated financial statements were approved by the Company’s Chief Executive Officer
(President) and authorised for issue on 7 April 2022.
3. SIGNIFICANT ACCOUNTING POLICIES, JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
This note sets out significant accounting policies that relate to the Group’s consolidated financial
statements as a whole and describes the critical accounting judgements that management has
identified as having a potentially material impact on the Group’s consolidated financial statements.
When an accounting policy is generally applicable to a specific note to the accounts, the policy is
described within that note.
Summary of significant accounting policies
Basis of consolidation. The consolidated financial statements incorporate the financial statements
of the Company, entities controlled by the Company and their subsidiaries. Control is achieved when
the Company:
• Has the power over the investee;
• Is exposed, or has rights, to variable returns from its involvement with the investee; and
• Has the ability to use its power to affect its returns.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
16
The Company reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the
investee when the rights are sufficient to give it the practical ability to direct the relevant activities
of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing
whether or not the Company’s voting rights in an investee are sufficient to give it power, including:
• The size of the Company’s holding of voting rights relative to the size and dispersion of holdings
of the other vote holders;
• Potential rights held by the Company, other vote holders or other parties;
• Rights arising from other contractual arrangements; and
• Any additional facts and circumstances that indicate that the Company has, or does not have,
the current ability to direct the relevant activities at the time that decisions need to be made,
including voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and
ceases when the Company loses control of the subsidiary. Specifically, income and expenses of
a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit
or loss from the date the Company gains control until the date when the Company ceases to control
the subsidiary.
Profit or loss and each component of other comprehensive income is attributed to the owners of the
Company and to the non-controlling interests. Total comprehensive income of subsidiaries is
attributed to the owners of the Company and to the non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with the Group’s accounting policies. All intragroup assets and liabilities,
equity, income, expenses and cash flows relating to transactions between members of the Group are
eliminated in full on consolidation.
Non-controlling interests. Non-controlling interests represent the equity in a subsidiary not
attributable, directly or indirectly, to a parent. Non-controlling interests are presented separately in
the consolidated statement of profit or loss and within equity in the consolidated statement of
financial position, separately from parent shareholders’ equity.
Functional currency. Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which the entity operates
(functional currency). The functional currency of the Group and the majority of its subsidiaries
operating in Russia is the Russian Ruble (“RUB”). The presentation currency of the consolidated
financial statements of the Group is also the Russian Ruble.
Sources of estimation uncertainty
In the application of the Group’s accounting policies management is required to make estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
17
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and
future periods.
Lease liabilities. The Group uses management’s judgement to estimate:
• Lease term. The lease term corresponds to the non-cancellable period of each contract except
in cases where the Group is reasonably certain of exercising renewal options. The Group also
considers the cases where the Group is reasonably certain of not exercising early termination
options. When assessing such options management assesses residual useful life of the major
non-separable improvements to the respective leased premises, investment strategy of the
Group and relevant investment decisions and duration of the renewal and early termination
options.
• Discount rate. When calculating the present value of the lease payments the Group uses the
incremental borrowing rate. Discount rate is determined for each asset based on the incremental
borrowing rate for the respective company of the Group at the inception of the contract.
Stage of completion of project type contracts. The Group uses management’s judgement to estimate
stage of completion to recognize revenue under project type contracts. This estimate is based on
costs forecasts and calculations and historical experience on similar projects.
Impairment of financial assets. The Group regularly reviews its financial assets to assess for
impairment. The Group uses management’s judgement to estimate allowance for Expected Credit
Losses (ECL) for financial assets at amortised cost. ECL are measured in a way that reflects the unbiased
and probability-weighted amount, the time-value of money and reasonable and supportable
information at the reporting date pertaining to past events, current conditions and forecasts of future
economic conditions.
ECL are measured as probability-weighted present value of all cash shortfalls over the expected life
of each financial asset. For receivables from financial services, ECL are mainly calculated using
a statistical model based on three major risk parameters: probability of default, loss given default
and exposure of default.
The estimation of these risk parameters incorporates all available relevant information, not only
historical and current loss data, but also reasonable and supportable forward-looking information
reflected by the future expectation factors. This information includes macroeconomic factors
(unemployment rate, inflation rate) and forecasts of future economic conditions. Significant changes
in risk parameters could affect the estimated amount of ECL.
Impairment of long-lived assets. IFRS requires management to perform impairment tests annually
for indefinite lived assets and, for finite lived assets, if events or changes in circumstances indicate that
their carrying amounts may not be recoverable. Impairment testing requires management to judge
whether the carrying value of assets can be supported by the higher of the fair value of the asset or
the net present value of future cash flows that they generate. Calculating the net present value of
the future cash flows requires assumptions to be made in respect of highly uncertain matters.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
18
Recoverable amount of cash-generating units is estimated based on value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
The growth rate in the post-forecast period is determined on the basis of the nominal GDP growth
rate for each country and adjusted for the specific risk inherent in each generating unit. The discount
rate used to calculate value in use is the weighted average cost of capital, calculated on the basis of
the average capital structure for the economic sector. The cost of equity is determined on the basis
of the risk-free rate for long-term government bonds issued in the country in which the generating
unit operates. These rates are adjusted for the risk premium reflecting the risk of investing in ordinary
shares and the specific risk of each cash-generating unit.
Deferred tax assets. Deferred tax asset is recognised to the extent that it is probable that taxable
profits will be available against which deductible temporary differences can be utilised. The valuation
of probability is based on management estimation of future taxable profit.
Fair value measurements. Some of the Group’s assets and liabilities are measured at fair value for
financial reporting purposes. Where the fair value of assets and liabilities recorded in the
consolidated statement of financial position cannot be derived from active markets, their fair value
is determined using valuation techniques, including discounted cash flow models. The inputs to these
models are taken from observable markets where possible, but when this is not feasible, a degree of
judgment is required in establishing fair values. Information about assets and liabilities measured at
fair value on recurring basis is disclosed in Note 33.
Useful lives of property, plant and equipment and intangible assets. Estimates may change due to
technological developments, competition, changes in market conditions and other factors and may
result in changes in the estimated useful life and in the amortisation or depreciation charges.
Technological developments are difficult to predict and management views on the trends and pace
of development may change over time. The estimated useful lives are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis.
Provisions and contingencies. The Group is subject to various legal proceedings, disputes, claims and
regulatory reviews related to the Group’s business, licenses, tax positions and investments, where
the outcomes are subject to significant uncertainty. Management evaluates, among other factors,
the degree of probability of an unfavourable outcome and the ability to make a reasonable estimate
of the amount of loss or related expense. Unanticipated events or changes in these factors may
require the Group to increase or decrease the amount recorded or to be recorded for a matter that
has not been previously recorded because it was not considered probable. See Notes 29 and 38 for
further information.
Critical judgments in applying accounting policies
The following are the critical judgements, apart from those involving estimations, that management
have made in the process of applying the Group’s accounting policies and that have the most
significant effect on the amounts recognised in consolidated financial statements.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
19
Judgment identifying accounting impacts of acquisitions and business combinations – The Group
regularly carries out complex structured transactions for the acquisition and disposal of shares in
subsidiaries, debt restructuring and financing arrangements. Determining the accounting treatment
of such transactions is often complex and requires management’s judgment, in particular in
determining whether or not the Group has control over the investees, and whether or not the Group
has obligations to third-party investors. In 2021, transactions in respect of which management has
made significant judgments in these areas include the Group’s acquisition of Inter Forest Rus (Note 6),
loss of control over Segezha Zapad (Note 17) and obtaining control over Binnopharm Group (Note 6).
Standards, interpretations and amendments adopted in current year
In 2021 the Group adopted the following standards, interpretations and amendments:
Amendments to IFRS 9, IAS 39 and IFRS 7, IFRS 4
and IFRS 16
Interest Rate Benchmark Reform and its Effects on Financial Reporting
(Phase 2)
Amendments to IFRS 16
Lease concessions related to the COVID-19 pandemic
Amendments to IFRS 1 and IAS 12
1)
Deferred tax on assets and liabilities arising from a single transaction
1) Voluntary early adoption
These IFRS pronouncements do not have a material impact on the Group’s consolidated financial
statements.
Standards, interpretations and amendments in issue but not yet effective
The Group has not applied the following new and revised IFRSs that have been issued but are not yet
effective:
Amendments to IAS 37
Onerous Contracts – Cost of Fulfilling a Contract
1)
Amendments to IAS 16
Property, Plant and Equipment—Proceeds before Intended
Use
1)
Amendments to IFRS 3
Reference to the conceptual framework
1)
Amendments to IFRS
Annual Improvements to IFRS Standards 2018-2020 Cycle
1)
Amendments to IAS 1
Classification of Liabilities as Current or Non-current
2)
IFRS 17 and amendments to IFRS 17
Insurance Contracts
2)
Amendments to IAS 8
Definition of Accounting Estimate
Amendments to IAS 1 and IFRS Practice Statement 2
Disclosure of accounting policy
2)
Amendments to IFRS 10 and IAS 28
Sale of Contribution of Assets between an Investor and its
Associate or Joint Venture
3)
1) Effective for annual reporting periods from 1 January 2022, early application permitted
2) Effective for annual reporting periods from 1 January 2023, early application permitted
3) The effective date for these amendments was deferred indefinitely. Early adoption continues to be permitted.
The Group does not expect that the adoption of these standards will have a material impact on the
Group's consolidated financial position and financial performance in future periods.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
20
4. SEGMENT INFORMATION
As a diversified holding corporation, the Company invests in a range of businesses, which meet its
investment and return criteria. The Company has determined that the chief operating decision maker
(“CODM”) is Management Board. Information reported to the Management Board for the purpose
of resource allocation and the assessment of segment performance is focused on each individual
business. No operating segments have been aggregated in arriving at the reportable segments of the
Group. The Group’s reportable segments are businesses that offer different products and services
and are managed separately.
The Group’s reportable segments are Mobile TeleSystems PJSC (“MTS”), Segezha Group JSC (formally
Segezha Group LLC) (“Segezha Group”), Medsi Group JSC (“Medsi”), Ozon Holdings PLC (“Ozon”) and
Corporate. MTS is one of the leading telecommunications group in Russia and the CIS, offering mobile
and fixed voice, broadband, internet access, pay TV, financial services, as well as content and
entertainment services in Russia and Armenia. Segezha Group is a Russian vertically integrated forest
industry holding that performs a full cycle of timber harvesting and advanced wood processing
operations. Medsi is the largest federal private network of medical and preventive institutions in the
country, providing a full range of services for the prevention, diagnosis and treatment of diseases, as
well as rehabilitation services for children and adults. Ozon is one of the largest Russian e-commerce
internet platforms. Corporate segment comprises the Company and entities, which hold and manage
the Company’s interests in its subsidiaries, joint ventures and associates. The Other category includes
other operating segments including East-West United Bank (EWUB), Sitronics, Agroholding “Steppe”
(Steppe), Sistema Venture Capital, Hospitality assets, Bashkirian Power Grid Company (“BPGC”),
Business Nedvizhimost, Binnopharm Group, Megapolis-Invest, Etalon Group, “Zarya”,
“New Investment Holding”, none of which meets the quantitative thresholds for determining
reportable segments.
The accounting policies of the operating segments are the same as those described in the Significant
accounting policies, judgements, estimates and assumptions (Note 3) and other relevant notes. The
Group’s CODM evaluates performance of the segments on the basis of operating income and OIBDA.
OIBDA is defined as operating income before depreciation and amortisation of property, plant and
equipment, intangible assets and right-of-use assets.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
21
The following is an analysis of the Group’s revenue and results from continuing operations by
reportable segment for 2021 and 2020:
2021 2020 2021 2020 2021 2020
MTS 530,181 491,030 4,222 3,896 117,679 111,233
Segezha Group 92,438 68,982 4 5 22,351 11,185
Medsi 30,040 25,011 47 30 3,978 3,704
Ozon (Note 17) - - - - (12,584) (8,428)
Corporate 3,427 3,619 903 1,289 5,955 (14,262)
Total reportable segments 656,086 588,642 5,176 5,220 137,379 103,432
Other 146,312 102,984 15,350 8,799 9,002 7,530
802,398 691,626 20,526 14,019 146,381 110,962
Inter-segment
eliminations (2,414) (1,558)
Operating income
143,967 109,404
Finance income 6,304 5,330
Finance costs (71,503) (71,468)
Currency exchange loss (1,651) (18,643)
Changes in the fair value of financial
instruments 16,050 21,883
Profit before tax
93,167 46,506
revenues
revenue
income/(loss)
External
Inter-segment
Segment operating
The following is an analysis of the Group’s depreciation and amortisation, additions to non-current
assets (comprising property, plant and equipment, investment property, other intangible assets,
right-of-use assets and advances paid for non-current assets), impairment of certain long-lived assets
and other non-cash items (comprising impairment of current assets and financial assets) by
reportable segment:
2021 2020 2021 2020 2021 2020 2021 2020
MTS 141,400 135,646 111,088 100,205 17 2,023 721 2,469
Segezha Group 24,490 16,805 6,947 6,273 907 20 339 119
Medsi 7,639 5,414 3,256 2,708 - - 67 -
Corporate 1,383 1,651 963 200 5 - 2,190 (700)
Other 27,162 12,899 11,906 11,106 (1,337) 3,578 784 1,068
202,074 172,415 134,160 120,492 (408) 5,621 4,101 2,956
(Reversal) of
impairment/ im-
Other
non-current assets
and amortisation
current assets
non-cash items
Additions to
Depreciation
pairment of non-

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
22
The following is an analysis of the Group’s segment assets and liabilities by reportable segment:
31 December 31 December
2021 2020
Segment assets
MTS
1,028,277 932,281
Segezha Group
208,117 88,572
Medsi 49,850 39,160
Corporate
169,853 182,515
Total reportable segments 1,456,097 1,242,528
Other 397,788 288,360
Total segment assets 1,853,885 1,530,888
Inter-segment eliminations
(99,029) (109,572)
Consolidated total assets 1,754,856 1,421,316
Segment liabilities
MTS
1,001,311 886,609
Segezha Group
163,118 80,549
Medsi 24,928 17,643
Corporate
256,491 213,340
Total reportable segments
1,445,848 1,198,141
Other
269,081 231,982
Total segment liabilities
1,714,929 1,430,123
Inter-segment eliminations
(86,431) (96,136)
Consolidated total liabilities
1,628,498 1,333,987
As of 31 December 2021 and 2020 the carrying amount of investment in MTS Belarus, an associate
of MTS, included in its reportable segment assets was RUB 6,265 million and RUB 5,124 million,
respectively. The carrying amount of investment in Ozon, included in assets of Corporate, as of
31 December 2021 and 2020 was RUB 0 million and RUB 12,584 million, respectively. The carrying
amount of investments in other associates and joint ventures representing separate operating
segments are included in the assets of Corporate.
The Group’s revenue from continuing operations from external customers by location of operations
and information about its non-current assets (property, plant and equipment, investment property,
other intangible assets, right-of-use assets, advance payments for non-current assets and goodwill)
by location of assets are detailed below.
2021 2020 2021 2020
Russia
711,682 615,900 964,116 741,297
Other
90,716 75,726 19,935 21,348
802,398 691,626 984,051 762,645
Revenue from
external customers
Non-current assets

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
23
5. DISCONTINUED OPERATIONS
The Group enters into transactions to sell shares of subsidiaries, which result in the Group losing
control over its subsidiaries. The results of subsidiaries disposed of during the reporting period are
included in the consolidated financial statements prior to the date of loss of control over subsidiaries.
Information on the sale of shares in subsidiaries, representing separate major lines of business or
geographical areas of operations, and their impact on the Group's results is provided below.
The amounts recognised in profit from discontinued operations are as follows:
2021 2020
Gain from disposal of VF Ukraine - 2,101
Currency translation on disposal of VF Ukraine 93 127
Change in the fair value of contingent consideration VF Ukraine 377 645
Other disposals - 249
Profit from discontinued operations 470 3,122
Attributable to:
Shareholders of Sistema PJSFC 237 1,650
Non-controlling interests 233 1,472
The results of the companies are presented as part of discontinued operations in the accompanying
consolidated profit and loss statement for all periods presented.
The results of the disposed subsidiaries included in discontinued operations in the consolidated
statements of profit or loss for 2021 and 2020 are as follows:
2021 2020
Revenue - 1,223
Expenses - (1,033)
Profit before income tax - 190
Income tax benefit - 8
Net income attributable to discontinued operations - 198
Other
Cash flows from discontinued operations included in the consolidated statements of cash flows for
2021 and 2020 are as follows:
2021 2020
Net cash used in operating activities - (318)
Net cash provided by investing activities 1,234 15
Net cash provided by financial activities - 366
Total net cash increase in cash and cash equivalents 1,234 63
Other

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
24
6. BUSINESS COMBINATIONS
Acquisitions of businesses are accounted for using the acquisition method, with the identifiable
assets acquired and the liabilities assumed recognised at their fair value at the acquisition date.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts
of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration
transferred, the amount of any non-controlling interests in the acquiree and the fair value of the
acquirer’s previously held interest in the acquiree (if any), the excess is recognised immediately in
profit or loss as a bargain purchase gain.
Those interests of non-controlling shareholders that are present ownership interests entitling their
holders to a proportionate share of net assets upon liquidation may initially be measured at fair value
or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable
net assets. The choice of measurement is made on an acquisition-by-acquisition basis.
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the acquisition occurs, the Group reports in its consolidated financial statements provisional
amounts for the items for which the accounting is incomplete. During the measurement period,
which could be up to one year from the acquisition date, the Group retrospectively adjusts the
provisional amounts recognised at the acquisition date to reflect new information obtained about
facts and circumstances that existed as of the acquisition date.
Business combinations in 2021
The business combinations which took place in 2021 is summarized below:
Principal
Date of
Interest Acquiring Conside-
Acquiree activity
acquisition
acquired segment ration
MTT
Telecomunications
June
100%
MTS 5,798
GreenBush
Telecomunications
June 100% MTS 5,200
Other acquisitions of MTS Telecomunications
April 100% MTS 3,161
Binnopharm Group
Pharmaceuticals
June n/a
Other
38,343
Inter Forest Rus
Timber procurement
December 100% Segezha 38,748
Novoyeniseysky wood-
chemical complex Timber procurement September 100% Segezha 3,708
Zarya
Fishing
July 49%
Other
3,000
Acquisitions of Medsi
Healthcare
December 100%
Medsi
2,131
Other acquisitions Other
July-August
Other
3,574
Total
103,663

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
25
The following table summarizes the amounts of the identifiable assets acquired and liabilities assumed relating to such acquisitions at the acquisition date:
MTT
GreenBush
Other
acquisitions
of MTS
Binnopharm
Group
Inter Forest
Rus
Novoyeni-
seysky
wood-
chemical
complex
Zarya
Acquisitions
of Medsi
Other
acquisitions
Total consideration
satisfied by:
Cash consideration 3,680 5,200 1,512 -
16,951 3,708 3,000 2,131
3,574
Fair value of the previously held
interest in the acquiree - - 1,582 38,343 - - - - -
Deferred payment 160 - 7 - 21,797 - - - -
Fair value of financial assets 1,958 - - - - - - - -
Fair value of contingent
consideration arrangement - - 60 -
- - - -
-
5,798 5,200 3,161 38,343 38,748 3,708 3,000 2,131 3,574
Recognised amounts
of identifiable assets
acquired and liabilities
assumed:
Property, plant and equimpment 588 5,171 623 13,296
23,490 4,058 756 232
1,655
Right-of-use assets 114 - - 403 28,731 4,923 - 956 679
Other intangible assets 1,947 1 360 20,783 557 - 5,985 8 1,000
Other non-current assets 140 17 43 988 771 929 - - 54
Inventories - - - 8,360 8,031 1,250 633 67 1,587
Other current assets 3,396 93 1,590 10,082 5,375 746 19 423 2,376
Current liabilities (2,656) (26) (736) (14,326) (8,556) (1,315) (3,388) (174) (5,515)
Lease liabilities - - - (389) (8,270) (1,837) - (957) (592)
Non-current liabilities (715) (56) (118) (8,942) (11,381) (1,224) (366) - (468)
Net assets 2,814 5,200 1,762 30,255 38,748 7,530 3,639 555 776
Non-controlling interests - - - (14,746) - - (639) - 13
Goodwill 2,984 - 1,399 22,834 - - - 1,576 2,785
Bargain purchase gain - - - - - (3,822) - - -

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
26
The excess of the consideration transferred over the value of the identifiable assets acquired and
liabilities assumed was allocated to goodwill mainly arising from the following:
MTT
Expected synergy effect
Other acquisitions of MTS
Expected synergy effect
Binnopharm
Skilled workforce, ability to develop new medicine
Other
Expected synergy effect and development of new competencies
Acquisition of MTT- In June 2021, MTS acquired a 100% ownership interest in OJSC Multiregional
TransitTelecom (MTT), a provider of intelligent connectivity solutions for businesses, to expand its
connectivity services portfolio. The purchase price constituted a cash payment of RUB 3,680 million
paid in June 2021, transfer of financial assets offset against the purchase price of RUB 1,958 million
and contingent consideration of RUB 160 million.
Acquisition of GreenBush - In June 2021, MTS acquired a 100% ownership interest in LLC GDTs Energy
Group (GreenBush), the operator of the GreenBush data center in Technopolis special economic area,
to use the facility's additional capacity to offer colocation and cloud solutions to customers as well as
to facilitate the Group's own compute and storage needs. The purchase price constituted a cash
payment of RUB 5,200 million paid in July 2021.
Binnopharm Group
Incorporation of a pharmaceutical holding company – In February 2021, the incorporation of
a pharmaceutical holding company, Binnopharm Group was completed. In order to set up a single
pharmaceutical holding, Sistema and its financial partner, VTB Group, have contributed a 56.2% stake
in Sintez OJSC (including Biocom GSC) to the capital of Binnopharm Group. At the same time, Sistema,
VTB, and a consortium of investors comprising the Russian Direct Investment Fund (RDIF), the Russia-
China Investment Fund (RCIF) established by the RDIF and China Investment Corporation, and leading
Middle Eastern funds, contributed an 85.6% stake in Alium JSC (which includes Binnopharm JSC) to the
capital of Binnopharm Group. As a result, the effective share of Sistema together with VTB in the holding
company amounted to 79%, and the Consortium of Investors - 15.8%. The remaining 5.2% of the shares
were distributed among the minority shareholders-individuals. The Group continued to account for
investments in Ristango Holding Limited and Sinocom Investments Limited (holding companies through
which investments in JSC "Alium" and OJSC "Sintez" were made) under equity method.
Acquisition of stake in OJSC Sintez (hereinafter - Sintez) – In March 2021, Sistema (through
a subsidiary Sistema Telecom Assets LLC) purchased a stake of 32.39% of the authorized capital of
Sintez from the Holding Company Nacimbio controlled by State Corporation Rostec. The transaction
amounted to RUB 6.9 billion. In May 2021, Sistema contributed the stake in OJSC Sintez acquired
from the Holding Company Nacimbio to the capital of Binnopharm Group, as a result of which the
share of Binnopharm Group in OJSC Sintez amounted to 88.6%.
Increase of stake in Ristango Holding Limited – In April 2021, the Group purchased a stake of 3.95%
of the authorized capital of Ristango Holding Limited from minority shareholders for RUB 1.2 billion.
Obtaining control over Binnopharm Group – On 25 June 2021, amended and restated Shareholder
Agreement was signed between the members of Ristango Holding Limited, as a result of which the
Group has obtained control over the operating activities of Ristango Holding Limited, the owner of
100% of the authorized capital of Binnopharm Group.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
27
For the period from 1 January 2021 until the date of acquisition of control over Ristango Holding
Limited by the Group, the amount of profit from the revaluation of financial instruments in relation
to the partners' participation interests in Ristango Holding Limited amounted to RUB 5.5 billion. After
control was obtained, these financial assets were derecognised and financial liabilities in the amount
of the present value of the redemption amount were recognized as part of other financial liabilities,
which resulted in an effect of RUB 8.2 billion, RUB 5.9 billion and RUB 13.9 billion on accumulated
loss, additional capital and non-controlling interests, respectively.
As a result of the transaction, the umbrella brands "Alium" and “Sintez” were identified. These
intangible assets are expected to have indefinite lives based on their history and the Group’s plans
to continue to support and build the acquired brands.
Sale of stake in Ristango Holding Limited to Nevsky Property Limited – On 28 June 2021, Sistema
Telecom Assets LLC, a 100% subsidiary of Sistema, sold an 11.2% stake in Ristango Holding Limited to
Nevsky Property Investments Limited (controlled by VTB Capital) for RUB 7 billion. The transaction
was recognized directly in equity (Note 7).
Exercise of the contract to acquire VTB’s share in Ristango Holding Limited – In July 2021, the Group
exercised its right under the forward agreement with VTB and early purchased VTB's 20.97% share in
Ristango Holding Limited for RUB 6.7 billion.
Exercise of the contract to acquire VTB’s share in Sinocom Investments Limited – In December 2021,
Sistema Telecom Assests LLC, a 100% subsidiary of Sistema, exercised its right to acquire the VTB
Bank’s (Europe) SE shares of Sinocom Investments Limited, which owns shares of Ristango Holding
Limited, for the amount of RUB 9.06 billion. As a result of the transaction, the effective share of the
Corporation in Binnopharm Group increased to 75.3%.
As of 31 December 2021, the Group, with the involvement of an independent appraiser, completed
the assessment of the fair value of the acquired assets and liabilities.
Acquisition of LLC Inter Forest Rus and its subsidiaries – On December 28, 2021, the Group acquired
100% control over LLC Inter Forest Rus and its 24 subsidiaries from a third party, including four
sawmills, plywood and pellet manufacturers, as well as logging assets with an estimated cutting area
of about 10.9 million cubic meters. All acquired assets are located in the Krasnoyarsk Region and the
Irkutsk Region.
The preliminary purchase price includes a cash payment of USD 528 million (RUB 38,748 million at
the transaction date exchange rate), of which USD 230 million (RUB 16,951 million at the transaction
date exchange rate) was paid during 2021. The provisional purchase price may be subject to
adjustment depending on the actual OIBDA and working capital of the acquired assets for 2021, as
well as other applicable adjustments. Deferred payments in the total amount of USD 50 million (RUB
3,715 million at the exchange rate as of 31 December 2021), included in long-term other financial
liabilities from the acquisition of companies, are payable in equal amounts in 2 and 4 years from the
date of signing of the sale and purchase agreement, but not discounted, since act as security against
possible property losses of the Group related to the decisions of the previous owners (Note 28). The
security covers, among other things, the risks of loss of property, additional taxes, penalties and fines,
disposal of allowable forest cut.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
28
As at 31 December 2021, the Group has not completed the fair value measurement of the acquired
assets and liabilities and the allocation of the purchase price. The allocation of the acquisition cost to
the fair value of the acquired assets and liabilities will be completed within 12 months from the
acquisition date.
Consolidation of CJSC Novoyeniseysky wood-chemical complex – On 15 February 2021, the Group
submitted an application to participate in an auction held by the bank of non-core assets "Trust" to
sell assets related to CJSC Novoyeniseysky wood-chemical complex (NLHK). NLHK is one of the largest
closed-cycle woodworking enterprises located in the Lesosibirsk, Krasnoyarsk Region, specializing on
the lumber production, dispersed wood fraction,chipboard, pellets, as well as joinery for the
construction of residential and industrial premises.
The auction lot included the bank's rights to claims on loans and other liabilities in the total amount
of RUB 11.5 billion in different currencies, as well as the right to enter into an option for 71% of NLHK
shares, the condition for the exercise of which was, among other things, the termination of
arbitration proceedings in the bankruptcy proceedings against NLHK. The Group purchased the lot
for a cash consideration of RUB 2,306 million paid in February 2021.
On 20 May 2021, the Group signed an agreement to acquire a minority interest of 29% of NLHK
shares. The transaction was completed on 27 July 2021, the shares became the property of the
Group's subsidiary, JSC Lesosibirsky LDK №1. The total remuneration amounted to USD 17 million
(RUB 1.2 billion), of which RUB 620 million was paid on 8 June 2021, the remaining amount RUB 601
million was due after the transfer of ownership, and was paid on 19 August 2021.
On 15 September 2021, the Arbitration Court of the Krasnoyarsk Region decided to terminate the
bankruptcy proceedings in relation to NLHK, and the option to acquire 71% of the shares became
exercisable, and, accordingly, the Group obtained control over operating activities and consolidated
100% of the assets and liabilities of NLHK.
As of 31 December 2021, with the involvement of an independent appraiser the Group completed
the assessment of the fair value of the acquired assets and liabilities.
As a result of the acquisition of NLHK, the Group received gain from the acquisition in the amount of
RUB 3,822 million, which was recognized as part of “Other income” in the Consolidated statement of
profit or loss and other comprehensive income. The gain is related to the bankruptcy proceedings
against NLHK, initiated as a result of a corporate conflict between the previous owners of the
company. As a result of this conflict, NLHK's potential in terms of both harvesting volumes and sawn
timber production volumes was not fully utilized. In the 4
th
quarter 2021, having terminated the
bankruptcy procedure, as well as having ensured a sufficient level of working capital, the Group,
without additional capital investments, increased the volumes of logging and production of sawn
timber, increasing the operating profitability of the company.
Acquisitions of Medsi – In December 2021, the Group acquired the Dialine clinic chain in Volgograd
(DIALINE Clinical Diagnostic Laboratory LLC and DIALINE Multidisciplinary Medical Center LLC), as well
as the Promedicine clinic chain in Ufa (“MMC "Clinic of Allergology and Pediatrics" LLC, "KNTS" LLC,
"MC" Preventive Medicine" LLC, "MMC" Preventive Medicine" LLC and "Preventive Medicine-Pharm"
LLC).

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
29
Part of the consideration for the Promedicine chain in the amount of RUB 973 million was paid by
transfer under a letter of credit. As of 31 December 2021, the Group recorded the letter of credit as
restricted cash. The Group recorded other payables for the acquisition of the Promedicine chain and
the Dialine chain in the amount of RUB 1,023 million and RUB 56 million, respectively.
Since accounting for the acquisition of business has not been completed as at 31 December 2021 yet,
the Group has recorded the preliminary amounts of the acquired identifiable assets.
Acquisition of Zarya – In July 2021, the Group acquired a 49% stake in LLC Zarya for RUB 3 billion.
The main activity of the company is fish production. The Group and other participants entered into
a shareholder agreement, according to which the Group received control over operating activities.
In December 2021, the Group acquired an additional 41% stake in the authorized capital for
RUB 3.2 billion. As a result of the transaction, the share of the Group in this subsidiary increased
to 90%.
As of 31 December 2021, the Group has not completed the assessment of the fair value of the
acquired assets and liabilities and the purchase price allocation, the Group recorded the estimated
amounts of the acquired identifiable assets, determined, among other inputs, based on the carrying
value at the date of acquisition.
Business combinations in 2020
The business combinations which took place in 2020 is summarized below:
Principal
Date of
Interest
Acquiring
Purchase
Acquiree
activity
acquisition
acquired
segment
price
Medsi Izhevsk
Healthcare services
March
100%
Medsi
130
Karelian Wood Company
Forest procurement
January
100%
Segezha
950
Other logging companies
Forest procurement
January-April
75.02%-100%
Segezha
74
Stopol LLC
Telecomunications
June
100%
MTS
321
Agriculture businesses
Agriculture
May
100%
Agroholding
Steppe
4,736
Total
6,211

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
30
The following table summarizes the final amounts of the identifiable assets acquired and liabilities
arising from the following:
Medsi Izhevsk
Karelian Wood
Company
Other logging
companies
Stopol LLC
Agriculture
businesses
Total consideration satisfied by:
Cash consideration
130
829
74
312
2,111
Equity instruments of subsidiary
-
-
-
-
2,625
Fair value of contingent
consideration arrangement
-
121
-
9
-
130
950
74
321
4,736
Recognised amounts of identifiable
assets acquired and liabilities
assumed:
Property, plant and equipment
431
704
1
2
2,382
Lease rights
-
1,084
185
-
3,028
Other non-current assets
10
350
-
-
-
Other current assets
6
712
4
300
1,088
Current liabilities
(196)
(287)
(49)
(263)
(976)
Lease liabilities
-
(428)
(92)
-
(1,475)
Other non-current liabilities
(19)
(197)
-
-
(1,000)
Net assets
232
1,938
49
39
3,047
Non-controlling interest
-
-
4
-
-
Goodwill
-
-
21
282
2,425
Bargain purchase gain
(102)
(988)
-
-
(736)
The excess of the consideration transferred over the value of the identifiable assets acquired and
liabilities assumed was allocated to goodwill mainly arising from the following:
Stopol LLC
Ensuring the entry into the market of the smart multimedia systems for cars
Other logging companies
Expected synergy effect
Agriculture businesses
Market position, expected synergy effect
As a result of the acquisition of Karelian Wood Company, Medsi Izhevsk and Agricultural Businesses,
the Group has received gain in the amount of RUB 1,826 million, which was recognised in other
income in the consolidated statement of profit or loss.
The gain received from the acquisition of Karelian Wood Company is associated with a limited
number of possible buyers, as well as with the underutilization by the previous owners of the
potential of Karelian Wood Company in terms of both the volume of logging, and the volume of
production and geography of shipments of lumber. In 2020, with no additional capital investment,
the Group increased company’s logging and sawn timber production, improving its operating
profitability.
The gain received from the acquisition of Medsi Izhevsk is related to the long-term development
strategy of Medsi in the regions of the Russian Federation, and is due to the decision of the previous
owner to sell non-core assets of his business in connection to disinterest in the development of this
sector. Medsi by means of modern high-tech medical equipment, changes in medical and marketing
programs will aim to attract additional patients to the clinics of the network and increase the
efficiency of their work.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
31
The gain received from the acquisition of individual Agriculture businesses is due to the general trend
of price growth in the grain market in the reporting period. The terms of long-term lease agreements
acquired under this transaction were recognised as favourable, and the right-of-use assets associated
with the favorable terms of the lease agreements amount to RUB 772 million.
As of the reporting date, purchase price allocation of acquisitions of Medsi Izhevsk, Karelian Wood,
Other logging companies, Stopol LLC and Agriculture businesses have been finalised.
The following table summarises the details of purchase of subsidiaries, net of cash acquired, reported
in the statements of cash flows:
2021 2020
Cash consideration
39,756 3,456
Net of cash acquired
(3,603) (46)
Acquisitions of subsidiaries less cash acquired
36,153 3,410
7. CAPITAL TRANSACTIONS OF SUBSIDIARIES
The Group enters into transactions to acquire or dispose ownership interests in its existing
subsidiaries that do not result in the Group losing control over the subsidiaries. Also, the entities of
the Group enter into transactions with each other to transfer ownership interests in subsidiaries
within the Group. Such transactions are accounted for as equity transactions. The carrying amounts
of the Group’s interests and the non-controlling interests (“NCI”) are adjusted to reflect the changes
in their relative interests in the subsidiaries. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is
recognised directly in equity in additional paid-in capital (“APIC”) and attributed to shareholders of
the Company.
Transactions in 2021
The information on capital transactions of subsidiaries which took place in 2021 and their impacts on
the Group’s equity is summarised below:
Increase/ Increase/
(decrease) of (decrease) of
additional non-controlling
paid-in capital interests
Purchase of own shares by MTS
(3,239) (10,541)
Initial Public Offering of Segezha Group
19,540 10,399
Sale of stake in Ristango Holding Limited to
Nevsky Property Investments Limited (Note 6)
3,313 3,388
Sale of stake in Segezha Group
6,738 4,300
Other
(1,600) 3,364
Total impact
24,752 10,910

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
32
Purchase of own shares by MTS – In 2021 MTS acquired 65,308,610 ordinary shares, including
acquisition of 22,796,040 ordinary shares from Sistema PJSFC and Sistema Finance S.A., the
subsidiary of the Group, in the amount of RUB 7.5 billion.
Initial Public Offering of Segezha Group – On 28 April 2021, Segezha Group carried out an initial
public offering of 3.75 billion ordinary shares on the Moscow Exchange. As a result, Segezha Group
has raised RUB 30 billion. The amount of expenses directly related to the issue and placement of
shares amounted to RUB 1 billion. Subsequently, Sistema has exercised the option for additional
placement of secondary shares as part of the initial public offering and listing of ordinary shares of
Segezha Group on the Moscow Exchange. The total amount of Sistema's proceeds from the exercise
of the option for the additional placement is approximately RUB 0.8 billion.
Sale of a stake in Segezha Group – In December 2021, Sistema sold a 8.7% stake in ordinary shares
of PJSC Segezha Group for USD 150 million (RUB 11 billion).
Transactions in 2020
The information on capital transactions of subsidiaries which took place in 2020 and their impacts on
the Group’s equity is summarised below:
(Decrease)/
increase of Decrease of
additional non-controlling
paid-in capital
interests
Purchase of own shares by MTS
(532) (7,993)
Other
303 (201)
Total impact
(229) (8,194)
MTS Share Acquisition Program – As a part of the implementation of the share acquisition plan
approved in 2020, MTS acquired 48,797,719 ordinary shares, including acquisition of 22,758,872
ordinary shares from Sistema Finance S.A., the subsidiary of the Group, in the amount of
RUB 7.49 billion.
8. REVENUE
Revenue from contracts with customers specific to the reporting segments of the Group is recognised
in the following way.
MTS – Revenue for access charges, voice and video calls, rendering of cloud services, messaging,
interconnect fees and fixed and mobile broadband is recognised as services are rendered. This is
based upon either usage (minutes of traffic processed, volume of data transmitted) or passage of
time (monthly subscription fees). Products and services may be sold separately or in bundle packages.
The most significant part of revenue relates to prepaid contracts.
The Group capitalizes costs of obtaining contracts (such as sales commissions) and costs of fulfilling
contracts and amortises over the period expected to benefit from the contract. The Group used the
practical expedient allowed by of IFRS 15 whereby such costs may be expensed if the amortisation
period is one year or less.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
33
Revenue from sales of goods (mainly mobile handsets, other mobile devices, software licenses) is
recognised when the significant risks and rewards of ownership have been transferred to the
customer.
Revenue from providing financial services mainly relates to interest bearing assets of MTS Bank. Such
revenue is recognised on an accrual basis using the effective interest method.
Medsi – Medsi recognises revenue from the provision of medical services when (or to the extent
that) it fulfills the obligation to perform by transferring the promised good or service to the buyer.
An asset is transferred when (or as) the buyer gains control of the asset.
The Group provides medical services under contracts for payment upon the provision of services and
from advance contracts.
Under contracts that provide for payment upon the provision of services, the Group fulfills the
performance obligation at a certain point in time. Revenue is recognised at the time when the service
is rendered in full.
Revenue from advance contracts (concluded in the usual practice for 1 year) that provide for the
customer's right to receive a certain package of services during the term of the contract is recognised
on a straight-line basis over the entire term of the contract.
In most cases, fitness services are provided on the basis of an advance payment form and are also
recognised on a straight-line basis over the entire term of the contract.
As medical examination reports on services rendered to insurance companies are received with some
delay, the Group recognises revenue less the provision for services rendered unwarranted, which is
estimated based on historical data.
Segezha Group – Segezha Group receives revenue from the sale of goods (paper and packaging,
lumber, plywood and other goods) and from the provision of finished goods delivery services to the
buyer after the transfer of control over the goods. Sales are recognised at the time when control of
goods is transferred, i.e. when the goods are delivered to the buyer in accordance with the terms of
delivery (Incoterms 2010), the buyer has complete freedom of action with respect to the goods and
when there is no unfulfilled obligation that may affect the acceptance of the goods by the buyer.
Delivery is deemed to have been made when the goods have been delivered to a certain place, the
risks of damage and loss passed to the buyer, and the buyer accepted the goods in accordance with
the contract, the validity of the acceptance provisions has expired or the Group has objective
evidence that all acceptance terms have been met.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
34
The following is analysis of the Group’s revenue from continuing operations for 2021:
MTS
Segezha
Medsi Corporate Other Total
Type of goods/services
Mobile and fix line services
401,707 - - - - 401,707
Sale of goods
76,726 - - - - 76,726
Works under specification
- - - - 15,340 15,340
Production
- 92,438 - - 76,287 168,725
Financial services
46,532 - - - 2,226 48,758
Medical services
- - 30,040 - - 30,040
Other services
- - - 3,427 29,484 32,911
Other
5,216 - - - 22,975 28,191
530,181 92,438 30,040 3,427 146,312 802,398
Revenue from goods or services
transferred to customers
At a point in time
96,046 92,438 28,714 3,427 122,643 343,268
Over time
434,135 - 1,326 - 23,669 459,130
530,181 92,438 30,040 3,427 146,312 802,398
Reportable segments
The following is analysis of the Group’s revenue from continuing operations for 2020:
MTS
Segezha
Medsi Corporate Other Total
Type of goods/services
Mobile and fix line services
384,327 - - - - 384,327
Sale of goods
69,478 - - - - 69,478
Works under specification
- - - - 20,559 20,559
Production
- 68,982 - - 36,951 105,933
Financial services
33,667 - - - 1,263 34,930
Medical services
- - 25,011 - - 25,011
Other services
- - - 3,619 26,796 30,415
Other
3,558 - - - 17,415 20,973
491,030 68,982 25,011 3,619 102,984 691,626
Revenue from goods or services
transferred to customers
At a point in time
78,884 68,982 23,771 3,619 78,350 253,606
Over time
412,146 - 1,240 - 24,634 438,020
491,030 68,982 25,011 3,619 102,984 691,626
Reportable segments

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
35
The Group expects to recognize revenue related to performance obligations that were unsatisfied
(or partially unsatisfied) as of 31 December 2021 as follows:
2022 2023-2027 2028-2032 Total
Mobile telecommunication services 21,087 901 76 22,064
Other services 10,481 14,443 - 24,924
Loyalty programme 451 - - 451
Total 32,019 15,344 76 47,439
Contract assets and liabilities
Contract balances include trade receivables related to the recognised revenue, contract assets and
contract liabilities.
Trade receivables represent an unconditional right to receive consideration (primarily in cash).
Contract assets represent accrued revenues that have not yet been billed to customers due to certain
contractual terms other than the payments terms.
Contract assets of MTS represent accrued revenue in a bundled offering which combines the sale of
a mobile device and the provision of mobile services for a fixed-period. The mobile device is invoiced
at a reduced price leading to the reallocation of a portion of amounts invoiced for mobile
communication services to the supply of the mobile phone. The excess of the amount allocated to
the mobile phone over the price invoiced is recognised as a contract asset and thus transferred to
trade receivables as the service is rendered.
Contract assets of MTS also relate to the MTS’s rights to consideration for work completed but not
yet billed for integration services projects.
Contract liabilities represent amounts paid by customers to the Group before receiving the goods or
services promised in the contract. Contract liabilities consisted of advances received from customers
and also amounts invoiced and paid for goods or services that are yet to be transferred.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
36
The following table provides information about receivables, contract assets and contract liabilities
from contracts with customers as of 31 December 2021 and 2020:
31 December 2021 31 December 2020
Trade accounts receivable 33,939 33,063
Contract assets 8,272 6,306
Total assets 42,211 39,369
Less: current portion
(40,070) (37,206)
Total non-current assets 2,141 2,163
Contract liabilities (32,953) (32,395)
Thereof:
Mobile telecommunication services (22,064) (21,780)
Project type works (10,438) (10,181)
Loyalty programmes (451) (433)
Total liabilities (32,953) (32,394)
Less: current portion 31,125 31,305
Total non-current liabilities (1,828) (1,089)
Changes in the contract assets and the contract liabilities balances during the 2021 and 2020 are
as follows:
Contract
assets
Contract
liabilities
Contract
assets
Contract
liabilities
Balance as of 1 January
6,306 (32,395) 6,474 (30,361)
Revenue recognized that was included
in the contract liability balance
at the beginning of the period
- 26,424 - 21,174
Cash received, excluding amount recognized
as revenue during the period
136 (27,355) 1,659 (23,208)
Transfer to assets held for sale
- - (96) -
Effect of changes in estimates
(1,942) 373 (1,731) -
Increase in revenue for which no payment
was received
3,772 - - -
Balance as of 31 December
8,272 (32,953) 6,306 (32,395)
2021
2020
Cost to obtain and fulfill a contract
The Group capitalizes certain incremental costs incurred in acquiring or fulfilling a contract with
a customer if the management expects these costs to be recoverable and includes them in other
intangible assets and other non-current assets, accordingly.
Costs of acquiring a contract include commissions paid to a third-party distributor as well as the
associated remuneration of the Group’s commercial employees for obtaining a contract with
a customer. These costs are amortised on a straight-line basis over the average subscriber life.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
37
Costs to fulfil a contract mainly relate to costs of equipment transferred to the subscribers required
for the provision of services. These costs are amortised on a straight-line basis for the shorter of
equipment useful life or average subscriber life.
The Group uses a practical expedient from IFRS 15, which allows to expensing of contract costs as
incurred when the expected contract duration is one year or less.
As of 31 December 2021 and 31 December 2020, the balances of cost to obtain and fulfil contracts
capitalized by the Group amounted to:
31 December
2021
31 December
2020
Cost to obtain contracts
7,779 7,549
Cost to fulfil contracts
3,155 2,506
As of 31 December 2021 and 2020 the accumulated amortisation expense related to cost to obtain
and fulfill contracts amounted to RUB 9,015 million and RUB 8,228 million, respectively. Amortisation
expense related to cost to obtain and fulfill contracts recognised for the year ended 31 December
2021 amounted to RUB 4,076 million (2020: RUB 3,819 million). There was no impairment loss
relating to the costs capitalized.
9. IMPAIRMENT OF LONG-LIVED ASSETS
Impairment of long-lived assets recognised in the consolidated statement of profit or loss for 2021,
includes impairment of property, plant and equipment, investment property, goodwill and other
intangible assets.
2021 2020
(Reversal)/Impairment of property,plan and equipment (313) 3,027
Impairment of investment property
- 870
Impairment of intangable assets 40 202
(Reversal)/Impairment of other non-current assets
(274) 241
Impairment of goodwill (Note 15)
139 1,281
Total impairment of long-lived assets (408) 5,621
Impairment of investment property – As of 31 December 2020, the Group estimated the recoverable
value of assets based on their value in use, taking into account the OIBDA margin in the range of
2.9% - 3.9%, the ratio of capital expenditures to revenue in the range of 31.2%, the growth rate in
the post-forecast period of 1% and the discount rate before tax of 11.4%, and recognised an
impairment loss of RUB 870 million in the consolidated statement of profit or loss for 2020.
Impairment of property, plant and equipment – As of 31 December 2020 the Group estimated the
recoverable amount of assets in the Other segment based on their value in use, taking into account
the negative OIBDA margin in the range of (1.2)% - (25.1)%, the ratio of capital expenditures to
revenue in the range of 2%-3%, the growth rate in the post-forecast period in the range of 2%-3%
and the discount rate before tax of 13.45%, and recognised in the consolidated statement of profit
or loss for 2020 an impairment loss of RUB 2,954 million.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
38
In 2021 the Group assessed whether there were any indicators of the possible impairment of fixed
assets and properties in the course of construction. The Group identified impairment in the total
amount of RUB 130 million relating to Buildings and facilities, Machinery and equipment and other
fixed assets of Segezha Sawmills LLC due to production closure. The Group has also accrued
impairment in the total amount of RUB 777 million relating to the detailed design documentation
and other capitalized costs due to revised and updated technical parameters of the projects. Also for
the year ended 31 December 2021, the Group reversed the provision for property, plant and
equipment in the “Other” segment in the amount of RUB 1,430 million due to improved financial
performance.
10. IMPAIRMENT OF FINANCIAL ASSETS
Impairment of financial assets for 2021 and 2020 comprise the following:
2021 2020
Allowance for expected credit losses of accounts receivable 1,922 3,434
Impairment/(Reversal of impairment) of loans carried at amortised cost 1,958 (424)
Impairment/(Reversal of impairment) of other financial assets 221 (54)
Total impairment of financial assets 4,101 2,956
Loans carried at amortised cost – For the years ended 31 December 2021 and 2020, the Group
recognised in the consolidated statement of profit or loss impairment of loans in the amount of
RUB 1,958 million and RUB 520 million, respectively. At the same time, for the year ended
31 December 2020, the Group reversed the provision for loans issued in the amount of
RUB 944 million.
11. INCOME TAXES
The Group measures and records its current income tax payable and its tax bases in its assets and
liabilities in accordance with the tax regulations of the countries where the Group and its subsidiaries
operate, which may differ from IFRS.
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for tax purposes.
Deferred tax assets are not recognised when management believes that it is more than 50% probable
that deferred tax assets or some portion of them will not be realized. At the same time, the Group
takes into account all available evidence, including projected future taxable profit, tax planning
strategies and recent financial transactions.
The tax rate used for the reconciliations below is the corporate tax rate of 20% payable by corporate
entities in the RF on taxable profits (as defined) under tax law in that jurisdiction.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
39
The Group’s income tax expense for 2021 and 2020 comprise the following:
2021 2020
Current income tax expense (31,705) (23,507)
Deferred income tax benefit (8,589) 15,166
Total income tax expense recognised in the current year
relating to continuing operations (40,294) (8,341)
Income tax expense calculated by applying the Russian statutory income tax rate to income from
continuing operations before income tax differs from income tax expense recognised in the
consolidated statements of profit or loss as a consequence of the following adjustments:
2021 2020
Profit before tax
93,167 46,506
Income tax expense calculated at 20%
(18,633) (9,301)
Adjustments due to:
Earnings distribution from subsidiaries and associates
(6,221) (6,598)
(Decrease)/increase of unrecognised deferred tax assets
(11,077) 5,966
Non-deductible expenses
(5,438) (417)
Different tax rate of subsidiaries
600 692
Non-taxable income
3,213 630
Other
(2,738) 687
Income tax expense
(40,294) (8,341)
The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated
statements of financial position for 2021 and 2020:
Recognised
Opening in profit Recognised Acquisitions Closing
2021
balance or loss in capital /disposals balance
Deferred tax (liabilities)/
assets in relation to:
Accrued expenses and
accounts payable
6,516 1,795 - 1,519 9,830
Property, plant and equipment
(27,351) (1,743) 32 (9,819) (38,881)
Intangible assets
(8,358) 1,244 - (4,217) (11,331)
Cost capitalization
(1,668) (162) - - (1,830)
Deferred connection fees
1,430 176 - - 1,606
Inventory obsolescence
436 (128) - 427 735
Allowance for expected
credit losses
2,676 761 3 85 3,525
Undistributed earnings
of subsidiaries and joint
ventures and assoсiates
(4,436) 166 (86) - (4,356)
Right-of-use asset
4,242 789 - (3) 5,028
Tax losses carried forward
32,465 (11,904) 168 919 21,648
Debt modification
(123) 52 - (7) (78)
Effect of derivatives reclassification
- - 2,045 - 2,045
Other
805 365 166 (204) 1,132
Total 6,634 (8,589) 2,328 (11,300) (10,927)

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
40
Recognised
Opening in profit Recognised Acquisitions Closing
2020
balance or loss in OCI /disposals balance
Deferred tax assets/
(liabilities) in relation to:
Accrued expenses and
accounts payable
5,800 716 - - 6,516
Property, plant and equipment
(25,387) (2,711) 628 119 (27,351)
Intangible assets
(8,949) 591 - - (8,358)
Cost capitalization
(1,448) (220) - - (1,668)
Deferred connection fees
1,230 200 - - 1,430
Inventory obsolescence
88 347 - - 435
Allowance for expected
credit losses
(19) 2,695 - - 2,676
Deferred revenues
1 - - - 1
Undistributed earnings
of subsidiaries and joint
ventures and assoсiates
(5,887) 1,451 - - (4,436)
Right-of-use asset
3,428 814 - - 4,242
Tax losses carried forward
16,713 15,612 (8) 148 32,465
Debt modification
(433) 310 - - (123)
Other
5,443 (4,639) - - 804
Итого (9,420) 15,166 620 267 6,633
As of 31 December 2021 and 2020 the Group reported the following deferred income tax assets and
liabilities in the consolidated statements of financial position:
31 December 2021 31 December 2020
Deferred tax assets
31,471 41,402
Deferred tax liabilities
(42,398) (34,769)
Net deferred tax assets/(liabilities) (10,927) 6,633
In 2021 the Group wrote off previously recognised deferred tax assets of the Corporate segment in
the amount of RUB 14 billion based on forecasts for possible assets sales.
As of 31 December 2021 and 2020 the tax losses carried forward, for which deferred tax assets were
recognised, amounted to RUB 108,238 million and RUB 162,327 million, respectively.
The Group accrued uncertain income tax positions as a component of income tax payable of
RUB 160 million and RUB 595 million as of 31 December 2021 and 2020, respectively.
Russian Federal law №401-FZ dated 30 November 2016 allowed for the indefinite carry forward of
tax losses, whereas this was previously restricted to 10 years. Also, the law specified that the tax
base for the years 2017-2024 may not be reduced by tax losses carried forward in an amount
exceeding 50% of the base.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
41
The following table summarizes temporary differences, for which deferred tax assets were not
recognised in the consolidated statements of financial position as of 31 December 2021 and 2020:
Carry-forward
Jurisdiction period 2021 2020
India 2022-2028 81,463 95,589
Russia Unlimited 305,335 235,685
Total 386,798 331,274
12. EMPLOYEE BENEFITS EXPENSES
Employee benefits expenses consist of salaries, bonuses and social security contributions.
Employee benefits expenses included in cost of sales, selling, general and administrative expenses
and result from discontinued operations for 2021 and 2020 comprised RUB 159,886 million and
RUB 141,823 million, respectively.
13. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at historical cost. Cost includes major expenditures for
improvements and replacements, which extend useful lives of the assets or increase their revenue
generating capacity. Repairs and maintenance, including preventive maintenance, are charged to the
consolidated statement of profit or loss as incurred.
The cost of major overhauls and replacements, which extend useful lives of the assets or increase
their revenue generating capacity, are capitalised to the cost of the assets.
After recognition as an asset, an item of property, plant and equipment is carried at its cost less any
accumulated depreciation and any accumulated impairment losses.
Depreciation for property, plant and equipment is computed under the straight-line method utilizing
estimated useful lives of the assets as follows:
Buildings
7 – 150 years
Leasehold improvements
the term of the lease
Base stations
3 – 44 years
Other network equipment
3 – 20 years
Power and utilities
up to 60 years
Other
up to 15 years
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale. The Group considers a construction period of more
than six months to be substantial. Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period
in which they are incurred.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
42
Property, plant and equipment, net of accumulated depreciation and impairment, as of
31 December 2021 and 2020 consisted of the following:
31 December 31 December
2021 2020
Carrying amount
Switches, transmission devices, network and base station equipment
229,863 219,038
Buildings and leasehold improvements
93,736 74,183
Power and utilities
30,854 29,893
Land
24,153 22,982
Other
142,435 81,215
Total 521,041 427,311
As of 31 December 2021 and 2020 the “Other” line includes, among other things, timber processing
equipment of PJSC “Segezha Group” in the amount of RUB 61,781 million and RUB 28,936 million
respectively. The increase in the cost of timber processing equipment is driven by the company’s
investment program (RUB 18,544 million in 2021 compared to RUB 8,390 million in 2020) and
business combinations (RUB 21,409 million in 2021 compared to from 265 million rubles in 2020).
Switches,
transmission
devices, Buildings
network and
and leasehold Power
base station improve- and
equipment ments utilities Land Other
Total
Cost
Balance as of
1 January 2020
574,011 110,924 48,845 21,932 133,090 888,802
Additions
54,862 5,928 3,561 350 35,269 99,970
Disposals
(38,293) (3,735) (80) (6) (11,377) (53,491)
Business
combinations
578 1,519 - 686 1,323 4,106
Reclassified to
assets held for sale
(2,890) (475) - - (37) (3,402)
Currency translation
adjustment
2,286 2,096 - 62 2,335 6,779
Disposal of subsidiaries
- (3,568) - (3) (261) (3,832)
Reclassified from
right-of-use assets - - - - 459 459
Other (4) 966 - (39) 1,050 1,973
Balance as of
31 December 2020 590,550 113,655 52,326 22,982 161,851 941,364
Additions
59,927 6,963 4,392 490 45,591 117,363
Disposals
(44,394) (872) (741) (5) (7,484) (53,496)
Business
combinations
973 17,897 - 477 30,522 49,869
Reclassified to
assets held for sale
(992) (1) - - (51) (1,044)
Currency translation
adjustment
1,306 (155) - (32) (169) 950
Reclassified from
right-of-use assets
- - - 56 1,034 1,090
Sale of companies
- - - - (326) (326)
Other
(341) 673 - 185 1,897 2,414
Balance as of
31 December 2021 607,029 138,160 55,977 24,153 232,865 1,058,184

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
43
Switches,
transmission
devices, Buildings
network and
and leasehold Power
base station improve- and
equipment ments utilities Land Other
Total
Accumulated
depreciation and
impairment
Balance as of
1 January 2020 (361,276) (33,875) (19,728) - (73,840) (488,719)
Disposals
33,058 1,457 40 - 9,177 43,732
Disposals from sales of
subsidiaries
- 1,466 - - 168 1,634
Reclassified from
assets held for sale
1,899 146 - - (7) 2,038
Depreciation expense
(43,220) (4,659) (2,745) - (14,133) (64,757)
Currency translation
adjustment
(1,968) (806) - - (1,205) (3,979)
Reclassified from
right-of-use assets - (246) - - (169) (415)
Impairment
- (2,623) - - (404) (3,027)
Other
(5) (332) - - (223) (560)
Balance as of
31 December 2020 (371,512) (39,472) (22,433) - (80,636) (514,053)
Disposals 38,225 572 125 - 6,250 45,172
Disposals from sales of
subsidiaries - - - - 255 255
Reclassified to
assets held for sale 1,247 1 - - 15 1,263
Depreciation expense (44,387) (6,367) (2,815) - (15,516) (69,085)
Currency translation
adjustment (1,016) 154 - - (29) (891)
Reclassified from -
right-of-use assets - - - - (358) (358)
(Impairment)/recovery
of impairment - 831 - - (518) 313
Other 277 (143) - - 107 241
Balance as of
31 December 2021 (377,166) (44,424) (25,123) - (90,430) (537,143)
Advances issued for the acquisition of non-current assets are included in Other assets within non-
current assets and amount to RUB 25,247 million and RUB 12,630 million as at 31 December 2021
and 2020, respectively. The growth is related to the capital expenditure programs of the Group's
subsidiaries.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
44
14. INVESTMENT PROPERTY
Investment property primarily includes cottages, office and commercial space and business centers
owned by the companies of the Group operating in real estate sector, mainly Business Nedvizhimost.
Investment property is stated at cost less accumulated depreciation and impairment losses.
Depreciation for investment property is recognised using the straight-line method based on the
average estimated useful lives of the assets of 25 years. Accumulated depreciation as of 31 December
2021 and 2020 amounted to RUB 5,735 million and RUB 5,271 million, respectively.
2021 2020
Balance at the beginning of the year
12,649 13,660
Reclassified from / (to) property, plant and equipment
735 168
Additions 914 554
Disposals (1,547) (683)
Depreciation expense (465) (501)
Impairment (Note 10) - (870)
Other comprehensive income - 498
Reclassified from/(to) inventories 874 (177)
Balance at the end of the year 13,160 12,649
Included in revenue is investment property rental income for 2021 of RUB 2,570 million
(2020: 1,960 million). Operating expenses arising from the investment property that generated rental
income during 2021 totalled RUB 1,515 million (2020: 1,486 million).
In estimating the fair value of the investment property, the Group classified the properties within
Level 3 of the fair value hierarchy. As of 31 December 2021 the Group determined the fair values of
the investment property at RUB 48,367 million (2020: RUB 40,136 million).
The fair values as of 31 December 2021 and 2020 were determined based either on discounted cash
flows or by reference to market values of similar properties in the relevant region. The main inputs
to the fair value measurement are the post-tax discount rate, revenue growth rates, OIBDA margin
and adjustments to market values of similar properties. OIBDA is defined as operating profit, adjusted
on depreciation and amortisation.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
45
15. GOODWILL
Goodwill arising on an acquisition of a business is carried at cost recognised at the acquisition date
less accumulated impairment losses, if any.
The carrying amounts of goodwill attributable to operating segments are as follows:
Binno-
Segezha
Pharm
MTS Medsi Steppe
Group Group
Other
Total
Balance as of
1 January 2020
Gross amount of goodwill
54,964 697 6,927 689 - 13,459 76,736
Accumulated impairment
loss
(7,570) (168) - (241) - (13,369) (21,348)
47,394 529 6,927 448 - 90 55,388
Business combinations
282 - 2,425 21 - - 2,728
Impairment
(1,281) - - - - - (1,281)
Currency translation
adjustment
365 - - - - - 365
Other
- 3 - - - 1 4
Balance as of
31 December 2020
Gross amount of goodwill
55,611 700 9,352 710 - 13,460 79,833
Accumulated impairment
loss
(8,851) (168) - (241) - (13,369) (22,629)
46,760 532 9,352 469 - 91 57,204
Business combinations
4,383 1,576 2,694 - 22,834 91 31,578
Impairment
- (35) - - - (104) (139)
Currency translation
adjustment
395 - - - - 82 477
Balance as of
31 December 2021
Gross amount of goodwill
60,389 2,276 12,046 710 22,834 13,633 111,888
Accumulated impairment
loss
(8,851) (203) - (241) - (13,473) (22,768)
51,538 2,073 12,046 469 22,834 160 89,120
The Group performs impairment test for the goodwill assigned to cash-generating units (CGUs) at
least annually and when there are any indications that the carrying amount of the CGU is impaired.
When the carrying amount of the CGU to which goodwill is allocated exceeds its recoverable amount,
goodwill allocated to this CGU is impaired.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
46
MTS – For the purposes of impairment testing, goodwill attributable to the MTS segment is allocated
to enlarged CGUs as follow:
Unallocated
Telecom Other goodwill Total
Balance as of 1 January 2020
Gross amount of goodwill 32,801 11,380 10,783 54,964
Accumulated impairment loss (1,466) (4,040) (2,064) (7,570)
31,335 7,340 8,719 47,394
Acquisitions - 282 - 282
Reclassification (1,877) 1,877 - -
Impairment - (1,281) - (1,281)
Currency translation adjustment - 365 - 365
Balance as of 31 December 2020
Gross amount of goodwill 30,924 13,904 10,783 55,611
Accumulated impairment loss (1,466) (5,321) (2,064) (8,851)
29,458 8,583 8,719 46,760
Acquisitions 4,337 46 - 4,383
Reclassification 253 (253) - -
Currency translation adjustment - 395 - 395
Balance as of 31 December 2021
Gross amount of goodwill 35,514 14,092 10,783 60,389
Accumulated impairment loss (1,466) (5,321) (2,064) (8,851)
34,048 8,771 8,719 51,538
The enlarged CGU (which represents a group of CGUs) "Telecom" includes the following business
units:
The “Russia convergent” – represents mobile and fixed line operations, which encompasses services
rendered to customers across regions of Russia. Russia convergent also includes sales of equipment
and accessories. Goodwill allocated to these CGUs has arisen on acquisitions made by MTS.
The “Moscow fixed line” – represents the results of fixed line operations carried out in Moscow by
MGTS, a subsidiary of MTS, and divided into two CGU – «MGTS commercial» and «MGTS service».
The enlarged CGU “Other” includes CGU “Armenia”, CGU “Cloud Retail” and CGU “Entertainment”.
Unallocated goodwill represents goodwill recognized as a result of the purchase of MTS shares by the
Group. It is not subject to allocation to CGUs as it is reviewed by management at the MTS segment
level. Unallocated goodwill is tested for impairment based on the market capitalization of MTS.
The recoverable amounts of the CGUs are determined based on their value in use. In assessing value in
use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the CGU.
Future cash flows calculations are based on a five-year operation plan. Estimation of future cash flows
requires assumptions to be made in respect of uncertain factors, including management’s
expectations of OIBDA margins, timing and amount of future capital expenditure, terminal growth
rates and appropriate discount rates to reflect the risks associated.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
47
In 2021 according to impairment test results, no impairment was recognized.
As a result of the impairment test performed on 31 December 2020, other CGU was impaired in
amount of RUB 1,281 million.
The key assumptions used in the value in use calculations
The table below presents OIBDA margin applied for value in use calculation of related CGUs:
December 31,
CGU
2021
2020
Russia Convergent
41.3%-46.9%
43.2%-44.3%
Armenia
53.5%-60.3%
51.8%-54.0%
MGTS Commercial
59.9%-63.0%
Not available
MGTS Service
42.5%-51.8%
Not available
Entertainment
4.8%-12%
8.8%-32%
Cloud
37.7%-67.3%
41.3%-69.0%
Other CGUs
4.3%-5.0%
3.5%-5.2%
The table below presents capital expenditure as a percentage of revenue applied for value-in-use
calculations of related CGUs:
December 31,
CGU
2021
2020
Russia Convergent
18%
20.9%
Armenia
22%
22.2%
MGTS Commercial
16%
Not available
MGTS Service
16%
Not available
Entertainment
3%
0.0%
Cloud
17%
15.4%
Other CGUs
1%
1.2%
The terminal growth rate into perpetuity has been determined based on the nominal gross
domestic product rates for the country of operation, adjusted for specific characteristic of the
CGUs.
The table below presents terminal growth rates applied for value-in-use calculations of related
CGUs:
December 31,
CGU
2021
2020
Russia Convergent
1%
1%
Armenia
nil
nil
MGTS Commercial
1%
Not available
MGTS Service
1%
Not available
Entertainment
1.5%
1.5%
Cloud
1%
1%
Other CGUs
2%
2%

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
48
The table below presents pre-tax rates for the discounting of cash flows in functional currencies of
related CGUs:
December 31,
CGU
2021
2020
Russia Convergent
10.1%
11.4%
Armenia
11.2%
13.3%
MGTS Commercial
12.7%
Not available
MGTS Service
9.9%
Not available
Entertainment
13.1%
13.6%
Cloud
13.6%
13.2%
Other CGUs
6.0%
6.1%
Management believes that no reasonably possible change in the current period any of the above key
assumptions would cause the carrying value of any cash-generating unit to materially exceed its
recoverable amount.
Agroholding “Steppe” – The recoverable amounts of the CGUs were determined based on their value
in use. Cash flow models were prepared in Russian rubles. These calculations use cash flow
projections based on financial budgets approved by management covering a five-year period. The
growth rate does not exceed the long-term average growth rate for the business sector of the
economy in which CGU operates.
Key assumptions used for value-in-use calculations are determined based on market analysis, which
is performed regularly. The table below presents key assumptions used for value in-use calculations:
2021 2020
Terminal cash flows growth rate 3.8% 3.8%
Discount rate 14% 14%
Range of average annual market price growth rate 3.8-8.5% 3.8-4%
Management believes that no reasonably possible change in the current period in any of the above
key assumptions would cause the carrying value of any cash-generating unit to materially exceed its
recoverable amount.
Binnopharm Group – The recoverable amounts of the CGUs were determined based on their fair
value less costs of disposal. It was determined with the reference to the sale of stake in Ristango
Holding Limited in June 2021 and valuation of similar companies.
16. OTHER INTANGIBLE ASSETS
Other intangible assets are mainly represented by billing and telecommunication software and other
software, operating licenses, acquired customer bases of MTS, patents and trademarks of
Binnopharm Group.
Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and impairment losses. Intangible assets acquired in a business
combination and recognised separately from goodwill are initially recognised at their fair value at the
acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets
acquired in a business combination are reported at cost less accumulated amortisation and
impairment losses, on the same basis as intangible assets that are acquired separately.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
49
All finite-life intangible assets are amortised using the straight-line method utilising estimated useful
lives of the assets as follows:
Operating licenses
1-20 years
Billing and telecommunication software
1-20 years
Radio frequencies
1-15 years
Customer base
4-31 years
Cost to obtain contracts
2-5 years
Software and other
1-10 years
The estimated useful life and amortisation method are reviewed at the end of each reporting period,
with the effect of any changes in estimate being accounted for on a prospective basis.
Trademarks with indefinite contractual life are not amortised, but are reviewed, at least annually, for
impairment.
Intangible assets other than goodwill as of 31 December 2021 and 2020 consisted of the following:
31 December 2021 31 December 2020
Carrying amounts of:
Amortised intangible assets:
Billing and telecommunication software
70,627 65,179
Operating licenses
9,317 9,791
Radio frequencies
905 1,242
Acquired customer base
3,409 360
Software and other
22,874 9,085
Cost to obtain contracts
7,778 7,549
Patents and amortisable trademarks
12,314 -
127,224 93,206
Unamortised intangible assets:
Trademarks 12,734
6,543
Total 139,958 99,749
MTS operating licenses – In connection with providing telecommunication services, the Group has
been issued various GSM operating licenses by the Russian Ministry of Information Technologies and
Communications (the “Ministry”). In addition to the licenses received directly from the Ministry, the
Group has been granted access to various telecommunication licenses through acquisitions of
subsidiaries. In foreign subsidiaries, the licenses are granted by the local communication authorities.
Operating licenses contain a number of requirements and conditions specified by legislation.
The requirements generally include the start date of service, territorial coverage and expiration date.
Management believes that the Group is in compliance with all material terms of its licenses.
The Group’s operating licenses do not provide for automatic renewal. As of 31 December 2021, all
expired licenses covering the territories of the Russian Federation were renewed. The cost to renew
the licenses was not significant. The weighted-average period until the next renewal of licenses in the
Russian Federation is two and a half years.
The license for the provision of telecommunication services in Armenia is valid until 2034.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
50
Billing and Software Non- Cost to Patents and
telecom Operating Customer Radio and amortisable obtain amortisable
software licenses bases frequencies other trademarks contracts trademarks Total
Cost
Balance as of 1 January 2020 129,476 29,408 11,114 5,714 25,108 6,543 13,517 - 220,880
Additions
35,277 1,492 - 32 4,045 - 10,390 - 51,236
Disposals
(28,035) (117) (73) (172) (3,491) - (9,758) - (41,646)
Disposal of subsidiaries
(356) - - - - - - - (356)
Currency translation adjustment
386 914 108 - 105 - - - 1,513
Reclassified to other non-current assets
- - - - (1,157) - - - (1,157)
Other
(83) 25 - 30 (47) - - - (75)
Balance as of 31 December 2020 136,665 31,722 11,149 5,604 24,563 6,543 14,149 - 230,395
Additions
34,421 1,365 2,963 - 8,077 - 3,653 43 50,522
Disposals
(14,783) (44) (680) (233) (2,111) - (3,287) - (21,138)
Business combinations
571 35 1,147 - 9,745 6,191 - 12,884 30,573
Currency translation adjustment
381 992 (34) - (35) - - - 1,304
Other
(114) - - 1 (17) - - - (130)
Balance as of 31 December 2021 157,141 34,070 14,545 5,372 40,222 12,734 14,515 12,927 291,526
Accumulated depreciation and impairment
Balance as of 1 January 2020
(73,916) (19,305) (10,272) (4,124) (15,731) - (6,394) - (129,742)
Disposals
27,953 74 72 160 2,281 - 3,069 - 33,609
Amortisation expense
(25,194) (1,796) (589) (367) (2,148) - (3,275) - (33,369)
Impairment
(167) - - - (35) - - -
(202)
Disposal of subsidiaries
36 - - - - - - -
36
Currency translation adjustment
(275) (894) - - 5 - - - (1,164)
Reclassified to right-of-use assets
- - - - 150 - - - 150
Other
77 (10) - (31) - - - - 36
Balance as of 31 December 2020 (71,486) (21,931) (10,789) (4,362) (15,478) - (6,600) - (130,646)
Disposals
14,716 7 679 244 2,076 - 3,287 - 21,009
Amortisation expense
(29,737) (1,857) (1,026) (349) (3,988) - (3,424) (613) (40,994)
Impairment
- (1) - - (39) - - - (40)
Currency translation adjustment
(211) (971) - - 55 - - - (1,127)
Other
204 - - - 26 - - - 230
Balance as of 31 December 2021 (86,514) (24,753) (11,136) (4,467) (17,348) - (6,737) (613) (151,568)

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
51
17. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
An associate is an entity over which the Group has significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence is the power to participate in the financial and
operating policy decisions of the investee but is not control or joint control over those policies. A joint
venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when decisions about the relevant activities require
unanimous consent of the parties sharing control.
An investment in an associate or a joint venture is accounted for using the equity method from the
date on which the investee becomes an associate or a joint venture. On acquisition of the investment
in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of
the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill,
which is included within the carrying amount of the investment. Any excess of the Group’s share of
the net fair value of the identifiable assets and liabilities over the cost of the investment, after
reassessment, is recognised immediately in profit or loss in the period in which the investment is
acquired.
Additional investments in associates and joint ventures are added to the carrying amount of the
equity-method investee without specific allocation to the underlying assets and liabilities of the
investee. The additional ownership interest effectively increases the notional goodwill relating to the
equity-method investee. After a transaction, the share of investee’s profit or loss recognised by the
Group is based on the new ownership interest.
Investments in associates and joint ventures as of 31 December 2021 and 2020 consisted of the
following:
Participating Carrying Participating Carrying
share
value
share
value
Assosiates
Etalon Group 29.79% 18,312 25.58% 13,529
MTS Belarus 49.00% 6,265 49.00% 5,124
Real estate projects 48%-50% 1,136 48%-50% 1,431
Ozon 33.04% - 33.78% 12,584
25,713 32,668
Joint ventures
Megapolis-Invest 75.86% 10,375 100.00% 11,002
Michurinskiy project 50.00% 5,646 50.00% 4,229
New Investment Holding 50.00% 557 0.00% -
Segezha Zapad 100.00% 410 0.00% -
Alium 0.00% - 24.90% 4,344
Sintez 0.00% - 1.52% 216
16,988 19,791
Other associates and joint ventures 20,789 21,397
Total 63,490 73,856
2021
2020

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
52
Participating share in profit or loss of associates and joint ventures is determined based on the
percentage of the equity interest owned by the Group or on allocations of profits and losses between
investors if designated by shareholders agreements.
Etalon Group is one of the largest development and construction companies, includes companies in
Russia and abroad. Carries out development projects in the markets of St. Petersburg and Moscow,
the holding company is registered in the Republic of Cyprus.
In May 2021, Sistema, through its 100% subsidiary Capgrowth Investments Limited («Capgrowth»),
participated in the subscription right offer to the existing holders of Etalon Group equity securities
within the secondary public offering (SPO), in proportion to Capgrowth's share in the capital of Etalon
Group - 25.6%. Capgrowth has subscribed for 22.63 million shares of the Company at a price of US
1.7 per ordinary share for a total amount of RUB 2.8 billion.
Sistema PJSFC has also entered into a Total Return Swap agreement with Alfa Bank JSC (the "Bank")
in respect of Etalon Group's global depositary receipts (the "GDRs" and the "TRS Agreement"), which
envisages the transfer of exclusively property, but not voting rights to Sistema, under which the Bank
acquired a total of 72.85 million GDRs for RUB 9.4 billion («Purchase price»). The TRS agreement was
concluded for a period of 30 months, taking into account a various early termination provisions
provided for by the TRS Agreement. TRS stipulates that any excess of the Purchase Price plus interest
over the market value of underlying GDRs at completion of the agreement is to be paid by Sistema
to the Bank and the other way round - any excess of the market value of underlying GDRs over the
Purchase Price plus interest are to be paid by the Bank to Sistema.
Simultaneously with the TRS Agreement, an Option Agreement was signed between the Bank and
Capgrowth, according to which (i) Capgrowth has the right to purchase all GDRs acquired by the Bank
pursuant to the TRS Agreement (the "Call Option") and (ii) in the event that Capgrowth does not
exercise the Call Option, the Bank has the right to sell the entire package of GDRs to a third party and,
further, in the absence of an interested buyer, to Capgrowth, in each case within the terms and
conditions provided for in the Option Agreement.
In June 2021, Capgrowth acquired 4.2% (16.16 million GDR's) from other investors and increased its
share in the capital of Etalon Group up to 29.79%.
Global depositary receipts of Etalon Group Plc are publicly traded. As of 31 December 2021 the
market quoted price based value of the investment in Etalon Group Plc amounted to RUB 9.8 billion.
Based on the available facts and information regarding the operating results of Etalon Group Plc, the
ability and intention of the Group to hold the investment until recovery and comparing the carrying
amount of the investment with the Group's share of net assets, the Group concluded that recognition
of an impairment loss was not required.
Ozon is one of the largest players in the Russian e-commerce market, representing goods in various
categories: electronics, household appliances, home goods and others. It has its own logistics
network, operating marketplace technology, a developed web platform. Ozon Holdings PLC is
registered in the Republic of Cyprus.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
53
The Group's share in the loss of Ozon recognized for the year ended 31 December 2021 amounted
to RUB 12,584 million. The unrecognized loss represents the Group's share of the additional losses
after the carrying amount of the Group's investment in Ozon amounted to nil. The group did not incur
legal or constructive obligations or make payments on behalf of Ozon. The amount of unrecognized
loss for 12 months 2021 amounted to RUB 6,409 million.
Megapolis-Invest – In 2020 the Group and Sberbank Investments signed the shareholders agreement
and agreements granting Sistema the right to acquire in 2022-2023 and Sberbank Investments the
right to sell to the Group its stake in the equity capital of Megapolis-Invest in 2023 (hereinafter –
Option agreements). The right of claim under loan agreement given by Sberank Investments to
Megapolis-Invest shall be acquired by the Group in any of the events of execution under Option
agreements. The fair value of the financial instruments arising from Option agreements is determined
on the basis of the Black-Scholes model using the discounted cash flow method when calculating the
cost of a stake in Megapolis-Invest. The fair value of the financial instruments as of 31 December
2021 is approximately nil.
The Group does not have the exclusive right to manage the relevant activities of Megapolis-Invest
and therefore the investment is accounted for under equity method.
The change in the Group’s share in the authorized capital of Megapolis-Invest in 2021 is due to the
registration of the share of Sberbank Investments in the Unified State Register of Legal Entities.
In February 2021, Megapolis-lnvest LLC signed an agreement to acquire an additional 29.64% stake
in Elektrozavod JSC from the third party for RUB 5.8 billion. As a result, upon the completion of the
deal, the Megapolis-lnvest LLC total ownership interest in Elektrozavod JSC increased to 94.01% of
the company's authorized capital. As a result of transaction, the Group did not obtain control over
Elektrozavod JSC.
“MTS Belarus” is a telecommunications operator in the Republic of Belarus.
Ristango Holding Limited - On 25 June 2021, amended and restated Shareholders Agreement was
signed between the members of Ristango Holding Limited (holding company through which
investments in Alium and Sintez were made), as a result of which the Group has obtained control
over the relevant activities of Ristango Holding Limited (Note 6). At the acquisition date, the Group
remeasuared its previously held interest in Ristango Holding Limited to fair value and as result
recognized the gain in the amount of RUB 25,107 million in the share of the profit or loss of associates
and joint ventures line.
Project Michurinsky carries out construction and sale of apartments, as well as construction of
a medical center. The company is registered in the Russian Federation.
Purchase of share in the fixed-line operator Zelenaya Tochka (MTS) – In February 2020, the Group
acquired a 51% share in Achemar Holdings Limited and Clarika Holdings Limited, which own the
operating companies of the Zelenaya Tochka Group, which provides fixed-line services in a number
of regions of the Russian Federation. The purchase price includes a cash payment in the amount of
RUB 1.37 billion. The acquisition of 51% of the shares was accounted for as an investment in a joint
venture based on the terms of the shareholder agreement.
In April 2021, the Group performed a step acquisition and obtained control over Achemar Holdings
Limited, owner of Stavropol and Tambov subsidiaries of Zelenaya Tochka.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
54
As of the acquisition date the Group remeasured the previously held equity interest in Achemar
Holdings Limited from RUB 1,166 million to fair value of RUB 1,582 million and recognized the
resulting gain of RUB 415 million in the operating share of the profit of the associates and joint
ventures in the accompanying consolidated statement of profit or loss.
The Group continued to account for its investment in other operational companies of Zelenaya
Tochka, owned by Clarkia Holdings Limited, as investment in joint venture.
New Investment Holding - In September 2021, New Investment Holding JSC, jointly controlled by
Sistema and Sberbank, acquired the Niarmedic International Limited, which owns 100% of the
authorized capital of Nearmedic Plus LLC, Nearmedic Pharma LLC and a number of other companies
conducting business in Russia and Italy in the fields of pharmaceuticals and medicine for one ruble.
The net debt of the Nearmedic Group as of the closing date of the Transaction amounted to
RUB 5.9 billion.
Sistema and Sberbank Group (hereinafter – Sberbank) provided equity financing in equal shares for
the total amount RUB 1.2 billion to repay part of the Nearmedic Group's debt to Sberbank. The Group
and Sberbank Investments have entered into a shareholders agreement and option agreements with
a maturity of 3.5 years from the closing date of the Deal, granting Sistema the right to acquire and
Sberbank Investments the right to sell to the Group Sberbank Investments' stake in the capital of
New Investment Holding JSC with the simultaneous transfer to the Corporation the rights to claim
Sberbank on a loan granted to the Nearmedic Group in the amount of up to RUB 2.8 billion. The fair
value of financial instruments arising from entering into Option Agreements as of 31 December 2021
is close to zero.
As of 31 December 2021, the Group has not completed the assessment of the fair value of the
acquired assets and liabilities and the purchase price allocation. The purchase price allocation to the
fair value of the acquired assets and liabilities will be completed within 12 months from the
acquisition date. The Group has recorded estimated amounts of identifiable assets acquired,
including those based on their carrying amounts at the date of acquisition.
Other – During 2021, the Group entered into the following investments in associates and joint
ventures:
• In July 2021 the Group purchased 51% stake in Amaran Limited, 100% owner of LLC Factorin
(«Factorin»), for RUB 867 million. Factorin is the developer and owner of blockchain-based
platform for trade finance transactions with a focus on supply chain finance and invoice
factoring. The purchase of 51% stake was accounted as investment in joint venture based on
the terms of the shareholders’ agreement;
• In 2020 the Group formed a partnership with “LLC Fancy Show”, for the purposes of production,
release and promotion of “Chess” musical in Russia. The Group received the right to 36% net
profit of the partnership and accounted for investment as investment in joint venture. The joint
venture was ceased in September 2021;

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
55
• Loss of control over Segezha Zapad – On 30 December 2021 the Group has signed with its two
financial partners a share purchase agreement for the sale of 20% less one share for each
partner of the Project and a Corporate agreement on the governance of the Project. Under the
terms of the signed Corporate Agreement, the parties to the agreement have the equal rights
to manage the significant activities of the investee. Taking into account the provisions of the
Corporate agreement, the management concluded that starting from 30 December 2021 the
Group loses control over the Segezha Zapad project and recognizes it as joint venture with a
100% interest as the Investments in joint ventures and associates. On 25 January 2022 the
transfer of ownership over the 40% minus 2 shares stake in Segezha Zapad Project to the
Group’s partners has been registered, this did not amend the rights to govern significant
activities. By concluding the options agreements the Group’s partners have the right to quit the
Project upon expiration of the 13th month from the date of the agreement. The Group also has
corresponding options to buy back the shares belonging to the partners during the 13th and
14th months. The Group’s conclusions over the significant activities and control over such
activities are subject to reevaluation upon acceptance of offers on options exercised by any
party or should significant provisions of the above agreements be amended.
The Group retained its ownership interests in the remaining projects and continues to account for
them as investments in associates and joint ventures as at 31 December 2021.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
56
The financial position and results of operations of associates as of and for the years ended 31 December 2021 and 2020 were as follows:
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Non-current assets
16,648 15,568 19,030 20,008 25,796 26,429 74,752 29,800 136,226 91,805
Current assets
205,450 170,951 15,386 12,705 3,917 3,874 166,586 124,808 391,339 312,338
Total assets
222,098 186,519 34,416 32,713 29,713 30,303 241,338 154,608 527,565 404,143
Non-current liabilities (105,910) (69,429) (9,062) (11,257) (14,607) (14,101) (86,794) (15,140) (216,373) (109,927)
Current liabilities (54,831) (66,017) (12,568) (10,999) (6,714) (7,193) (123,936) (60,211) (198,049) (144,420)
Total liabilities
(160,741) (135,446) (21,630) (22,256) (21,321) (21,294) (210,730) (75,351) (414,422) (254,347)
Equity attributable to owners
of the Company 61,357 51,073 12,786 10,457 8,392 9,009 30,608 79,257 113,143 149,796
The Group’s share
in the profit and loss 29.79% 25.58% 49.00% 49.00% 48%-50% 48%-50% 33.04% 33.78% n/a n/a
Fair value adjustment - -
on the date of acuisition 28 465 - - 688 688 (14,189) (14,189) (13,473) (13,036)
Accumulated impairment - - - - (3,581) (3,581) - - (3,581) (3,581)
Сapital transactions - - - - - - (2,333) - (2,333) -
Unrecognised loss - - - - - - 6,409 - 6,409 -
Carrying amount of the
Group’s interest 18,312 13,529 6,265 5,124 1,136 1,431 - 12,584 25,713 32,668
Total revenues 87,138 78,655 39,383 36,121 - 7,862 178,215 104,350 304,736 226,988
Total profit/(loss) for the year 3,006 2,036 10,379 10,267 (616) (5,726) (56,779) (22,264) (44,010) (15,687)
The Group’s share
in profit/(loss)
843 529 5,086 5,031 (296) (2,748) (12,584) (8,428) (6,951) (5,616)
Total comprehensive
income/(loss) 3,006 2,036 10,562 4,836 (616) (5,726) (56,782) (22,264) (43,830) (21,118)
The Group’s share in
comprehensive income/
(loss) for the year
843 529 5,175 2,370 (296) (2,748) (12,584) (8,428) (6,862) (8,277)
Dividends paid
(1,076) (905) (4,034) (4,212) - - - - (5,110) (5,117)
Etalon Group
Total
MTS Belarus
Ozon
Real Estate Projects

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
57
The financial position and results of operations of joint ventures as of and for the years ended 31 December 2021 and 2020 were as follows:
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Non-current assets
33 889 28 157 929 1 744 5 745 - 3 217 - - 11 131 - 16 396 43 780 57 428
Current assets
8 256 7 456 18 842 15 978 1 420 - 900 - - 7 663 - 7 959 29 418 39 056
-
Total assets
42 145 35 613 19 771 17 722 7 165 - 4 117 - - 18 794 - 24 355 73 198 96 484
Non-current liabilities (24 047) (16 022) - - (4 736) - (2 947) - - (4 520) - (2 905) (31 730) (23 447)
Current liabilities (6 127) (6 404) (7 003) (7 802) (1 315) - (760) - - (6 556) - (4 870) (15 205) (25 632)
Total liabilities
(30 174) (22 426) (7 003) (7 802) (6 051) - (3 707) - - (11 076) - (7 775) (46 935) (49 079)
Non-controlling interest - 5 385 - - - - - - - - - - - 5 385
Equity attributable to owners
of the Company 11 971 7 802 12 768 9 920 1 114 - 410 - - 7 718 - 16 580 26 263 42 020
The Group’s share
in the profit and loss 75,86% 100,00% 50,00% 50,00% 50,00% 0,00% 100,00% 0,00% 0,00% 24,90% 0,00% 1,52% n/a n/a
Fair value adjustment - -
on the date of acuisition 1 294 3 200 (738) (731) - - - - - 2 422 - (36) 556 4 855
Accumulated impairment - - - - - - - - - - - - - -
Carrying amount of the
Group’s interest 10 375 11 002 5 646 4 229 557 - 410 - - 4 344 - 216 16 988 19 791
Total revenues 6 806 - 9 731 11 184 1 092 - - - - 8 336 - 12 965 17 629 32 485
Total profit/(loss) for the year (2 548) - 2 848 3 276 (87) - - - - 257 - 813 213 4 346
The Group’s share
in profit/(loss)
(1 957) - 1 392 1 631 (43) - - - 220 64 17 12 (371) 1 707
Total comprehensive
income/(loss) (2 548) - 2 848 3 276 (87) - - - - 257 - 813 213 4 346
The Group’s share in
comprehensive income/
(loss) for the year
(1 957) - 1 392 1 631 (43) - - - 220 64 17 12 (371) 1 707
Dividends paid
- - - - - - - - - - - - - -
Megapolis-
Invest
(1)
Total
New Investment
Segezha
project
Holding
Zapad
Alium
Sintez
Michurinskiy
(1)
Current assets, including cash and cash equivalents in the amount of RUB 2,058 million. (2020: RUB 827 million)
Total loss for the year, including depreciation of RUB 989 million, finance costs of RUB 1,578 million, finance income of RUB 89 million, income tax expense of RUB 156 million.
The financial results of Megapolis-Invest for 2020 are immaterial, as the company was established in December 2020.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
58
The financial position and results of operations of other associates and joint ventures as of and for
the years ended 31 December 2021 and 2020 relating to the Group’s share were as follows:
2021 2020
Non-current assets
23,798 21,851
Current assets
17,820 16,493
Total assets
41,618 38,344
Non-current liabilities (11,724) (10,671)
Current liabilities (12,452) (10,268)
Total liabilities
(24,176) (20,939)
Non-controlling interest (977) (1,123)
Equity attributable to owners of the Company
16,466 16,282
The Group’s share in the profit and loss n/a n/a
Fair value adjustment on the date of acuisition 4,323 5,115
Accumulated impairment - -
Carrying amount of the
Group’s interest 20,789 21,397
The Group's share in revenues 24,495 22,974
The Group’s share in profit 720 781
The Group’s share in comprehensive income
for the year
737 853
Dividends paid
(1,104) (1,110)
Other
18. PROFIT ON DISPOSAL OF OTHER ASSETS
In 2020, as a result of a series of transactions on the disposal of various assets and related liabilities,
the Group made a profit of RUB 11,142 million. The assets sold are mainly represented by property,
plant and equipment, receivables, advances issued and contract assets, the total carrying amount of
which at the date of disposal was RUB 54,541 million. The total carrying amount of liabilities related
to disposed assets at the date of disposal was RUB 46,611 million.
19. OTHER FINANCIAL ASSETS
The Group’s financial assets, other than cash and cash equivalents, deposits in banks and accounts
receivable shown separately on the face of the consolidated statements of financial position,
primarily comprise assets of MTS Bank and East-West United Bank, the Group’s subsidiaries engaged
in banking activities, and investments of the Corporate segment.
The Group applies expected credit losses model for impairment analysis of financial assets classified
at amortised cost. The Group applies the simplified approach for its trade and other receivables which
requires recognition of expected credit losses at a lifetime from initial recognition of trade
receivables.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
59
Financial assets are recognised initially at fair value plus transaction costs that are directly
attributable to the acquisition or issue of the financial asset, except for a financial asset accounted
for at fair value through profit or loss, in which case transaction costs are expensed. Subsequently
such financial assets are measured either at amortised cost or fair value depending on the
classification of those assets.
Financial assets are classified into the following categories depending on their nature and purpose:
Financial assets measured at fair value through profit or loss (FVTPL), financial assets measured at
fair value through other comprehensive income (FVTOCI), financial assets measured at amortised
costs.
If the financial assets are held for collecting contractual cash flows in the form of principal and
interest on the specified dates, they are classified as carried at amortised cost.
If the financial assets are held not only for collecting contractual cash flows in the form of principal
and interest on the specified dates, but also for selling the financial asset, they are classified as
measured at fair value through other comprehensive income.
All other financial assets are classified as measured at fair value through profit or loss.
As of 31 December 2021 and 2020 financial assets, other than those shown separately on the face of
the statements of financial position, less allowance for impairment losses, comprise:
31 December 31 December
2021 2020
Financial assets measured at fair value through profit or loss
Debt and equity securities
79,282 64,950
Contingent consideration
1,867 2,631
Option contracts
112 228
Derivatives embedded in lease agreements
434 562
Forwards and stock options
-
4,723
Cross-currency derivatives not designated as cash flow hedges
110
-
Currency rate swaps not designated as hedge instruments
4,640 4,508
86,445 77,602
Financial assets measured at fair value through
other comprehensive income
Debt and equity securities
12,804 14,557
12,804 14,557
Financial assets measured at amortized cost
Debt securities
22,996 21,949
Bank loans to customers
217,525 131,136
Interbank loans due from banks
4,010 3,386
Other loans
25,671 14,572
270,202 171,043
Total financial assets
369,451 263,202
Current 154,465 104,573
Non-current 214,986 158,629
Total financial assets
369,451 263,202

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
60
The following table summarizes changes in loss allowance for financial assets other than for financial
assets attributable to the Group’s banking activities and accounts receivable for 2021 and 2020:
2021
2020
Balance as of 1 January calculated under IFRS 9
4,688 5,722
Charge for the period
(54) 1
Amounts written off against the allowance
(619) (661)
Currency translation adjustments
568 (374)
Balance as of 31 December calculated under IFRS 9
4,583 4,688
As of 31 December 2021 and 2020, financial assets attributable to the Group’s banking activities (MTS
Bank and its subsidiaries, East-West United Bank) comprise:
31 December 31 December
2021 2020
Financial assets measured at fair value
through profit or loss
Debt and equity securities
23,278 19,586
23,278 19,586
Financial assets measured at fair value through
other comprehensive income
Debt and equity securities
11,782 13,789
11,782 13,789
Financial assets measured at amortized cost
Cash and cash equivalents
30,371 35,540
Bank loans to customers
239,698 148,647
Interbank loans due from banks 4,010 3,386
Debt securities
22,999 21,812
297,078 209,385
Less: allowance for loan losses (22,173) (17,511)
309,965 225,249
The movement in the allowance for loan losses, attributable to the Group’s banking activities, during
2021 and 2020 was as follows:
2021
2020
Allowance for loan losses, 1 January
17,511 11,886
Charge for the period 11,032 8,385
Amounts written-off against the allowance
(3,361) (3,281)
Disposal
(4,334) (282)
Reversal of allowance written-off
1,557 565
Currency translation adjustment (232) 238
Allowance for loan losses, 31 December
22,173 17,511

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
61
In accordance with IFRS 9, the Group records an allowance for expected credit losses (ECL) for all
financial assets not held at fair value through profit or loss in “cost of sales” line. ECLs are based on
the difference between the contractual cash flows due under the contract and cash flows that the
Group expects to receive. The shortfall is discounted at an approximation to the asset’s original
effective interest rate. The allowance expense for expected credit losses relating to banking activities
is recorded in the "Cost of sales" line.
The expected credit-loss approach uses three stages for allocating impairment losses:
• Stage 1: expected credit losses within the next twelve months.
Stage 1 includes all contracts with no significant increase in credit risk since initial recognition and
usually contains new contracts that are fewer than 31 days past due date. The portion of the lifetime
expected credit losses resulting from default events possible within the next 12 months is recognised.
• Stage 2: expected lifetime credit losses- not credit impaired.
If a financial asset has a significant increase in credit risk since initial recognition but is not yet credit
impaired, it is moved to Stage 2 and measured at lifetime expected credit loss. This is defined as the
expected credit loss that results from all possible default events over the expected life of the financial
instrument.
• Stage 3: expected lifetime credit losses – credit impaired.
If a financial asset is defined as credit impaired or in default, it is transferred to Stage 3 and measured
at lifetime expected credit loss. The Group considers a financial asset to be in default when the
borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group
to actions such as realizing security (if any is held).
Movements in impairment loss allowance attributable to loans to individuals for the year ended
31 December 2021 and 2020 were as follows:
Stage 1 Stage 2 Stage 3 POCI* Total
Balance as of 1 January 2021 3,099 1,446 8,019 128 12,692
- Transfer to Stage 1
1,809 (1,633) (176) - -
- Transfer to Stage 2 (939) 1,220 (281) - -
- Transfer to Stage 3
(278) (4,691) 4,969 - -
New financial assets originated or
purchased 3,821
- - - 3,821
Change due to change of credit risk (1,419) 7,019 2,887 - 8,487
Write-offs - - (3,282) - (3,282)
Sale - - (4,324) - (4,324)
Recovery of previously
written-off assets
- - 581 - 581
Balance as of 31 December 2021 6,093 3,361 8,393 128 17,975

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
62
Stage 1 Stage 2 Stage 3 POCI* Total
Balance as of 1 January 2020 1,808 923 2,978 358 6,067
- Transfer to Stage 1 1,396 (1,172) (224) - -
- Transfer to Stage 2 (415) 594 (179) - -
- Transfer to Stage 3 (2) (3,848) 3,850 - -
New financial assets originated or
purchased
1,226 - - - 1,226
Change due to change of credit risk
(914) 4,949 2,843 (230) 6,648
Write-offs
- - (1,631) - (1,631)
Recovery of previously
written-off assets
- - 382 - 382
Balance as of 31 December 2020 3,099 1,446 8,019 128 12,692
* POCI – financial assets purchased or originated credit-impaired
Movements in impairment loss allowance on loans to legal entities for the year ended 31 December
2021 and 2020 were as follows:
Stage 1 Stage 2 Stage 3 POCI* Total
Balance as of 1 January 2021 1,028 221 3,209 361 4,819
- Transfer to Stage 1
119 (119) - - -
- Transfer to Stage 2 (46) 49 (3) - -
- Transfer to Stage 3
(105) (26) 131 - -
New financial assets originated or
purchased 355 - - - 355
Change due to change of credit risk (168) (67) (1,433) - (1,668)
Write-offs - - (49) - (49)
Recovery of previously
written-off assets - - 975 - 975
Foreign exchange difference (180) (3) (51) - (234)
Balance as of 31 December 2021 1,003 55 2,779 361 4,198
Stage 1 Stage 2 Stage 3 POCI* Total
Balance as of 1 January 2020 711 135 4,672 294 5,812
- Transfer to Stage 1 1 (1) - - -
- Transfer to Stage 2 (66) 66 - - -
- Transfer to Stage 3 (30) (47) 77 - -
New financial assets originated or
purchased 458 - 119 - 577
Change due to change of credit risk (103) 46 38 - (19)
Sales of financial assets - - (279) - (279)
Write-offs - - (513) - (513)
Recovery of previously
written-off assets - - (1,110) - (1,110)
Foreign exchange difference 57 22 205 67 351
Balance as of 31 December 2020 1,028 221 3,209 361 4,819

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
63
The following valuation categories represent the Group’s classification of credit quality of the loans:
• Low to fair risk – loans of high credit quality and low probability of default, not past due or
immaterially overdue;
• Monitoring – loans with increased probability of default including restructured loans;
• Impaired – impaired loans including more than 90 days overdue.
The table below summarizes information regarding the quality of loans to individuals as of
31 December 2021 and 2020:
31 December 2021 Stage 1 Stage 2 Stage 3 POCI Total
Low to fair risk 174,667 756 - - 175,423
Monitoring - 7,125 831 - 7,956
Impaired - - 10,072 - 10,072
Loss allowance (6,093) (3,361) (8,521) - (17,975)
Total 168,574 4,520 2,382 - 175,476
31 December 2020 Stage 1 Stage 2 Stage 3 POCI Total
Low to fair risk 88,058 - - - 88,058
Monitoring - 3,816 306 - 4,122
Impaired - - 9,518 128 9,646
Loss allowance (3,099) (1,446) (8,019) (128) (12,692)
Total 84,959 2,370 1,805 - 89,134
The table below summarizes information regarding the quality of loans to legal entities as of
31 December 2021 and 2020:
31 December 2021 Stage 1 Stage 2 Stage 3 POCI Total
Low to fair risk 34,643 721 - - 35,364
Monitoring 5,700 1,321 - - 7,021
Doubtful - - 767 - 767
Impaired - - 3,095 - 3,095
Loss allowance (894) (194) (3,110) - (4,198)
Total 39,449 1,848 752 - 42,049
31 December 2020 Stage 1 Stage 2 Stage 3 POCI Total
Low to fair risk 27,066 2,947 - - 30,013
Monitoring 6,106 5,868 - - 11,974
Doubtful - - 877 - 877
Impaired - - 3,957 - 3,957
Loss allowance (983) (266) (3,570) - (4,819)
Total 32,189 8,549 1,264 - 42,002

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
64
Analysis by credit quality of loans to individuals outstanding as of 31 December 2021 is as follows:
As of31 December 2021 Gross loans
Impairment loss
allowance
Net loans
Impairment loss
allowance to
gross loans
Collectively assessed
Not past due 175,421 (6,296) 169,125 4%
Overdue:
up to 30days 3,989 (1,090) 2,899 27%
31 to 60days 2,007 (1,240) 767 62%
61 to 90days 1,584 (1,093) 491 69%
91 to 180days 3,248 (2,499) 749 77%
over 180days 6,641 (5,659) 982
85%
Total collectively assessed 192,890 (17,877) 175,013 9%
Individually impaired
Not past due 367 (25) 342 7%
Overdue:
up to 30days - - - 0%
31 to 60days 8 - 8 0%
61 to 90days 3 (1) 2 33%
91 to 180days 5 (1) 4 20%
over 180days 178 (71) 107 40%
Total individually impaired 561 (98) 463
17%
Total 193,451 (17,975) 175,476 9%
Analysis by credit quality of loans to small and medium-sized enterprises outstanding as of
31 December 2021 is as follows:
As of31 December 2021 Gross loans
Impairment loss
allowance
Net loans
Impairment loss
allowance to
gross loans
Collectively assessed
Not past due 1,079 (22) 1,057 2%
Overdue:
up to 30days 19 (8) 11 42%
31 to 60days 15 (14) 1 93%
61 to 90days 11 (10) 1 91%
91 to 180days 14 (11) 3 79%
over 180days 568 (374) 194
66%
Total collectively assessed loans 1,706 (439) 1,267 26%

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
65
The table below summarizes carrying value of loans to customers analysed by type of collateral
obtained by the Group:
31 December 31 December
2021 2020
Loans collateralized by cash deposits
556 817
Loans collateralized by guaranties of legal entities
36,746 32,346
Loans collateralized by pledge of real estate
19,115 18,733
Loans collateralized by pledge of equipment
1 100
Loans collateralized by securities
1,946 2,058
Loans collateralized by pledge of inventories
924 165
Unsecured loans
180,410 94,428
Allowance for impairment losses
(22,173) (17,511)
Total loans to customers, net
217,525 131,136
20. RESTRICTED CASH
As of 31 December 2021 several companies of the Group has RUB 4,909 million (2020: RUB 4,310
million) of cash on special accounts which are presented as restricted cash within current assets.
21. INVENTORIES
Inventory mainly include the retail network of MTS and raw materials and product of Segezha Group
and Steppe.
Inventory is accounted at the lower of net realisable value and carrying amount. The Group
periodically assesses its inventories for obsolete or slow-moving stock.
The cost of raw materials includes the cost of purchase, customs duties, transportation and handling
costs. Work-in-progress and finished goods are stated at production cost which includes direct
production expenses and manufacturing overheads.
Inventories as of 31 December 2021 and 2020 consisted of the following:
2021 2020
Raw materials and spare parts
26,051 16,002
MTS finished goods and goods for resale
18,806 15,204
Other finished goods and goods for resale 15,691 5,760
Other work-in-progress 17,126 9,483
Total 77,674 46,449
The cost of inventories recognised as an expense during the year in respect of continuing operations
was RUB 141,081 million (2020: RUB 110,389 million). The cost of inventories recognised as an
expense includes RUB 2,935 million (2020: RUB 2,174 million) in respect of write-downs of inventory
to net realisable value and has been reduced by RUB 451 million (2020: RUB 674 million) in respect
of the reversal of such write-downs.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
66
22. ACCOUNTS RECEIVABLE
Accounts receivable include amounts owed by the customers to the Group.
The carrying value of all trade receivables is reduced by appropriate allowances for ECL. For trade
receivables the Group applies a simplified approach and calculates ECL based on lifetime expected
credit losses.
Accounts receivable, net of allowances, as of 31 December 2021 and 2020 consisted of the following:
2021 2020
Accounts receivable 77,395 63,547
Allowance for ECL (7,366)
(7,089)
Total
70,029
56,458
Below is the age analysis of receivables that are past due but not impaired:
2021 2020
60-90 days 1,634 1,064
more than 90 days 3,404 2,709
Total
5,038 3,773
Movement in the allowance is as follows:
2021 2020
Balance at the beginning of the year (7,089) (6,547)
Charge for the period (3,061) (5,560)
Usage of allowance to doubtful accounts write-off 1,808 4,847
(Acquisition)/Disposal of subsidiaries - (13)
Allowance recovery 850
437
Currency exchange gain/(loss) 126 (253)
Balance at the end of the year (7,366) (7,089)

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
67
23. EQUITY
Share capital – As of 31 December 2021 and 2020, the Company had 9,650,000,000 voting common
shares with a par value of RUB 0.09 issued, of which 9,393,161,501 and 9,506,184,291 shares were
outstanding, respectively.
Treasury shares – Movement of treasury shares during 2021 and 2020 years in quantity was as
follows:
2021 2020
Balance at the beginning of the year
143,815,709 271,803,250
Purchase of own shares
192,072,542 -
Purchase of own shares of the Company by empoyees
(20,997,160) (21,539,922)
Settlements under long-term motivation program
(58,052,592) (106,447,619)
Balance at the end of the year
256,838,499 143,815,709
Dividends – Dividends declared to the holders of the Company’s ordinary shares are included in the
financial statements in the period in which the dividends are approved for distribution by the
shareholders.
On 28 June 2021, an annual general meeting of shareholders approved the total dividend payment
of RUB 2,991.5 million (including dividends on treasury shares of RUB 47.4 million) representing
RUB 0.31 per ordinary share or RUB 6.2 per one global depository receipt. The dividends were paid
in 2021.
24. ACCUMULATED OTHER COMPREHENSIVE INCOME
Components of accumulated other comprehensive income balance, net of taxes, as of 31 December
2021 and 2020:
2021 2020
Cumulative effect of translation to the presentation currency 21,264 22,627
Unrecognized actuarial income 518 303
Total accumulated other comprehensive income 21,782 22,930
Less: attributable to non-controlling interests
(4,997) (4,177)
Total accumulated other comprehensive income,
attributable to Shareholders of Sistema PJSFC
16,785 18,753

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
68
25. LOANS AND BORROWINGS
The Group’s borrowings primarily comprise bank loans and corporate bonds. The Group enters into
variable-to-fixed interest rate swap agreements to manage exposure to changes in variable interest
rates related to a portion of its obligations, as well as into cross-currency interest-rate swap
agreements to mitigate the impact of both, interest rate and exchange rate fluctuations, for a certain
portion of its USD- and Euro-denominated borrowings.
Borrowings are initially recognised at fair value less transaction costs and subsequently measured at
amortised cost using the effective interest method.
Finance costs in profit or loss consist of interest expense for financial liabilities not classified as at
FVTPL. In 2021, finance costs did not include borrowing costs that were included in the cost of
qualifying assets in amount of RUB 853 million (2020: RUB 581 million).
At 31 December 2021 and 2020, the Group’s borrowings comprised:
31 December 31 December
2021 2020
Bank loans
425,479 367,769
Corporate bonds
414,911 346,204
Other
10,375 9,988
Total 850,765 723,961
Current 209,254 83,391
Non-current 641,511 640,570

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
69
Bank loans – As of 31 December 2021 and 2020, the Group’s loans from banks and financial
institutions consisted of the following:
Interest rate
(as of 31 December 31 December 31 December
Maturity 2021) 2021 2020
EUR-denominated:
Alfa Bank 2022-2028 3.08% 16,548 18,136
Sberbank 2022 0.36% 6,682 12,792
ING Bank 2022-2027
EURIBOR+1.5%
(4.13%)
3,609 4,490
Other
1,221 1,434
28,060 36,852
RUB-denominated:
Sberbank 2022-2031
5.99%-12.00%
CB+1.05%-1.19%
(9.55% - 9.69%)
181,311 143,034
VTB 2022-2031
10.10%;
CB+0.5%-4.8%
(9.00%-13.30%)
143,480 139,929
Alfa Bank 2022-2030 5.82%-12.05% 29,652 25,932
Gazprombank 2022-2027
7.6%-9.3%;
CB+1.60% (10.10%)
22,011 16,682
ICBC Bank 2022 9.5% 3,600 324
Otkrytie 2022 11.05%-11.45% 2,412 4,020
Other 14,589 825
397,055 330,746
Other currencies 364 171
Total bank loans 425,479 367,769

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
70
Corporate notes – As of 31 December 2021 and 2020, the Group’s notes consisted of the following:
Interest rate (as
of 31 December
31 December
31 December
Currency
2021)
2021 2020
MTS International 2023 USD 5.00% 32,800 32,596
MTS Notes 2025
RUB
8.00% 14,990 14,987
MTS Notes 2022
RUB
7.70% 14,991 14,980
MTS Notes 2023
RUB
6.85% 14,982 14,971
MTS Notes 2027
RUB
6.60% 14,975 14,970
Sistema PJSFC March 2027
RUB
8.90% 10,607 10,623
Sistema PJSFC May 2030
RUB
6.60% 14,741 14,723
MTS Notes 2026
RUB
7.90% 9,999 9,998
MTS Notes 2022
RUB
9.00% 10,000 9,998
MTS Notes 2021
RUB
8.85% - 9,999
Sistema PJSFC July 2030
RUB
6.35% 9,218 9,218
Sistema PJSFC January 2028
RUB
6.90% 9,943 9,980
MTS Notes 2021
RUB
7.10% - 9,997
MTS Notes 2022
RUB
6.45% 9,994 9,988
MTS Notes 2025
RUB
7.25% 9,882 9,816
MTS Notes 2024
RUB
8.70% 9,831 9,766
Sistema PJSFC February 2029
RUB
9.90% 3,800 3,800
Sistema PJSFC August 2030
RUB
6.70% 9,858 9,846
Sistema PJSFC November 2026
RUB
6.85% 9,624 9,694
Sistema PJSFC October 2029
RUB
7.85% 9,689 9,649
Sistema PJSFC March 2029
RUB
9.90% 9,641 9,626
Sistema PJSFC July 2029
RUB
9.40% 9,849 9,607
Sistema PJSFC October 2026
RUB
6.35% 6,181 6,171
Segezha Group JSC January 2023
RUB
7.10% 9,605 9,482
Segezha Group JSC October 2036
RUB
9.85% 10,000 -
Segezha Group JSC November 2036
RUB
9.70% 10,000 -
MTS Notes 2023
RUB
6.50% 9,923 9,860
MTS Notes 2022
RUB
5.50% 9,995 9,983
MTS Notes 2024
RUB
8.60% 7,491 7,488
MTS Notes 2027
RUB
6.60% 6,983 6,980
Sistema PJSFC November 2030
RUB
6.10% 4,748 4,750
MTS Notes 2022
RUB
8.40% 4,997 4,994
MTS Notes 2026
RUB
6.60% 4,992 4,990
Sistema PJSFC November 2030
RUB
6.75% 14,000 14,000
Sistema PJSFC September 2025
RUB
9.75% 4,817 4,207
Sistema PJSFC February 2031
RUB
6.90% 4,819 -
Sistema PJSFC February 2031
RUB
7.35% 12,055 -
Sistema PJSFC April 2031
RUB
8.20% 9,912 -
Sistema PJSFC June 2031
RUB
8.40% 14,851 -
Sistema PJSFC September 2031
RUB
8.20% 15,000 -
Sistema PJSFC November 2031
RUB
9.95% 4,294 -
Business Nedvizhimost August 2024
RUB
10.45% 3,330 3,319
Binnopharm Group November 2036
RUB
9.90% 3,000 -
MTS Notes 2031
RUB
7.50% 78 891
Sistema PJSFC February 2028
RUB
9.00% 244 244
MTS Notes 2024
RUB
6.50% 4,172 -
Other 10 13
Total
414,911 346,204
The Group has an unconditional obligation to repurchase certain notes at par value if claimed by the
noteholders subsequent to the announcement of the sequential coupon. Such notes are disclosed
maturing in the reporting period when the demand for repurchase could be submitted, irrespective
of the Group’s expectations about the intentions of the noteholders.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
71
The dates of the announcement for each particular note issue are as follows:
Sistema PJSFC February 2029 March 2022
Sistema PJSFC Semtember 2025 April 2022
Sistema PJSFC March 2027 April 2022
Sistema PJSFC March 2029 October 2022
Sistema PJSFC November 2030 March 2023
Sistema PJSFC July 2030 April 2023
Sistema PJSFC July 2029 July 2023
Sistema PJSFC October 2026 November 2023
Sistema PJSFC February 2031 November 2023
Binnopharm Group November 2036 November 2023
Sistema PJSFC November 2026 February 2024
Sistema PJSFC May 2030 May 2024
Sistema PJSFC February 2028 August 2024
Sistema PJSFC August 2030 September 2024
Sistema PJSFC October 2029 October 2024
Segezha Group JSC October 2036 November 2024
Sistema PJSFC February 2031 February 2025
Sistema PJSFC November 2030 June 2025
Sistema PJSFC January 2028 July 2025
MTS Notes 2031 February 2026
Sistema PJSFC November 2031 February 2026
Sistema PJSFC April 2031 May 2026
Sistema PJSFC June 2031 June 2026
Segezha Group JSC November 2036 November 2026
Sistema PJSFC September 2031 December 2026
Covenants – Loans and notes payable by the Group are subject to various restrictive covenants and
events of default, which permit lenders to demand accelerated repayment of debt. Such covenants
and events include noncompliance with certain financial ratios, cancellation of principal telecom
licenses, significant court rulings, encumbrances and confiscation of certain assets and other material
adverse changes.
As of 31 December 2021 and 2020, the Group had long-term debt denominated in Russian rubles,
presented as part of current liabilities in the consolidated statement of financial position for the
following reasons:
2021 2020
Violation of other non-financial restrictive conditions
10,685 -
Total
10,685 -
Assets pledged as security – As of 31 December 2021 and 2020, land and buildings with carrying
amounts of RUB 23,399 million and RUB 42,254 million, respectively, have been pledged to secure
borrowings of the Group. The freehold land and buildings have been pledged as security for bank
loans under a mortgage. The Group is not allowed to pledge these assets as security for other
borrowings or to sell them to another entity. As of 31 December 2021 and 2020, other assets
including inventories and deposits with carrying amounts of RUB 9,105 million, RUB 5,820 million
respectively have been pledged to secure borrowings of the Group.
Stakes in some subsidiaries and affiliates of Segezha, Steppe, Hospitality assets and others have been
pledged to secure borrowings of the Group.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
72
26. LEASE LIABILITIES AND RIGHT-OF-USE ASSETS
The Group assesses whether a contract is or contains a lease at inception of a contract. The Group
recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements
(including sub-lease and lease of intangible assets), which conveys the right to control the use of
identified assets for a period of time in exchange for consideration, except for short-term leases (with
lease term of 12 months or less). For these leases, the Group recognizes the lease payments as
operating expense on a straight-line basis over the term of the lease. When identifying the lease, the
Group uses practical expedient of IFRS 16 permitting the lessee not to separate non-lease
components of the contract and, instead, to account for any lease and associated non-lease
components as a single arrangement.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the incremental borrowing rate of the respective
companies of the Group.
The following table presents a summary of net book value of right-of-use assets:
31 December 31 December
2021 2020
Sites for placement of network and base station equipment
91,607 94,510
Land and buildings
100,483 58,378
Other 3,435 215
Rights-of-use assets, net
195,525 153,103
Depreciation of the right-of-use assets for the year ended 31 December 2021 and 2020, included in
the depreciation and amortisation of fixed assets, intangible assets and the right-of-use assets in the
accompanying consolidated statement of profit or loss. Amounts of RUB 0 million and RUB 4 million,
respectively, were recognised as part of the financial result from discontinued operations in the
accompanying consolidated statement of profit or loss.
Depreciation of the right-of-use assets included in depreciation and amortisation expense in the
accompanying consolidated statement of profit or loss was as follows:
2021 2020
Sites for placement of network and base station equipment
11,521 7,224
Land and buildings
11,325 14,241
Other
119 70
Depreciation charge, total
22,965 21,535
Additions to right-of-use assets during the year ended 31 December 2021 amounted to 65,231 million
(including RUB 35,838 million through acquisitions within business combinations) and for the year
ended 31 December 2020 amounted to RUB 17,954 million. The main additions of right-of-use assets
in 2021 relate to MTS, Segezha, Steppe and Medsi.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
73
Interest expenses on lease obligations for the year ended 31 December 2021 and 2020, were included
in finance expenses in the accompanying consolidated statement of profit or loss. Wherein amounts
of RUB 0 million and RUB 2 million, respectively, were recognised as part of the financial result from
discontinued operations in the accompanying consolidated statement of profit or loss.
The following table presents expenses related to lease, recognised in the consolidated statement of
profit or loss for:
2021 2020
Depreciation of right-of-use assets
22,965 21,535
Interest expense on lease liabilities
13,761 14,471
Expenses relating to variable lease payments not included
in the measurement of the lease liability 10,721 9,641
The following table presents future minimum lease payments under lease arrangements together
with the present value of the net minimum lease payments as of 31 December 2021 and 2020:
31 December 31 December
2021 2020
Minimum lease payments, including:
Less than 1 year 36,324 30,634
From 1 to 5 years 118,696 109,250
Over 5 years 156,629 127,510
Total minimum lease payments 311,649 267,394
Less amount representing interest (123,812) (101,819)
Present value of net minimum lease payments, including:
Less than 1 year 22,616 17,772
From 1 to 5 years 82,886 70,833
Over 5 years 82,335 76,970
Total present value of net minimum lease payments 187,837 165,575
Less current portion of lease obligations
(22,616) (17,772)
Non-current portion of lease obligations
165,221 147,803
Total cash outflows for leases for the year ended 31 December 2021 amounted to RUB 32,950 million
(31 December 2020: RUB 30,922 million), including interest paid in amount of RUB 13,269 million
(31 December 2020: RUB 13,828 million).
27. BANK DEPOSITS AND LIABILITIES
Liabilities of MTS Bank and EWUB primarily consist of customer accounts and deposits. These
liabilities are initially measured at fair value, net of transaction costs. Liabilities are subsequently
measured at amortised cost using the effective interest method and classified based on their
contractual maturity.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
74
Bank deposits and liabilities as of 31 December 2021 and 2020 consisted of the following:
2021 2020
Customer accounts
213,236 170,273
Bank loans received 21,430 24,644
Debt securities issued
5,581 1,897
Other liabilities
2,303 2,731
242,550 199,545
Less: amounts maturing within one year
(225,795) (195,346)
Total bank deposits and liabilities, net of the current portion 16,755 4,199
28. OTHER FINANCIAL LIABILITIES
Other financial liabilities as of 31 December 2021 and 2020 consisted of the following:
31 December 31 December
2021 2020
Payables for the acquisition of LLC Inter Forest Rus
22,126 -
Factoring operations liability
5,459 920
Payables for the acquisition of a stake in OJSC Sintez (Note 6)
4,775
-
Financial instruments in relation to
non-controlling interests of Binnopharm Group (Note 6)
3,732 -
Obligations under swap agreement with Alpha Bank (Note 17)
3,175 -
Repo transaction on Steppe subsidiaries shares
2,050 2,049
Obligation of Binnopharm Group in relation to
preferred shares of subsidiary owned by RDIF
2,000 -
Interest rate and cross-currency swaps not designated
as hedging instruments 974 943
Contingent consideration and other liabilities 383 1,067
MTS liabilities under put option agreement
- 55
Other
3,334 2,443
Non-current
15,972 3,745
Current
32,036 3,732
Total other financial liabilities
48,008 7,477
29. PROVISIONS
Provisions primarily consist of provisions related to employees’ bonuses and other rewards,
decommissioning and restoration obligations.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of past event, it is probable that the Group will be required to settle that obligation and a reliable
estimate can be made of the amount of obligation. Provisions are measured at the management’s
best estimate of the expenditure required to settle the obligation at the reporting date and are
discounted to present value where the effect is material.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
75
Provisions as of 31 December 2021 and 2020 consisted of the following:
31 December 31 December
2021 2020
Employees’ bonuses and other rewards
13,741 9,246
Provisions for decomissioning and restoration
7,490 5,273
Tax provisions other than for income tax
47 792
Other
10,004 8,689
Total 31,282 24,000
Current 23,256 16,612
Non-current 8,026 7,388
Employees’ Tax
bonuses and Provisions provisions
other for decomis- other than
rewards sioning income tax Other Total
Balance as of
1 January 2020
(11,123) (4,788) (541) (4,206) (20,658)
Additional provisions
recognized
(15,779) (914) (593) (6,305) (23,591)
Payments
17,776 54 333 1,100 19,263
Unwinding of discount and
effect of changes in the
discount rate
67 (138) 1 (74) (144)
Unused amounts reversed (125) 513 8 297 693
Currency translation adjustment
(62) - - 499 437
Balance as of
31 December 2020
(9,246) (5,273) (792) (8,689) (24,000)
Additional provisions
recognized
(19,204) (2,329) (165) (5,870) (27,568)
Payments 14,169 31 298 2,946 17,444
Unwinding of discount and
effect of changes in the
discount rate
4 (145) - - (141)
Unused amounts reversed
713 226 820 1,565 3,324
Other
(18) - (1) 47 28
Purchases
(159) - (207) (3) (369)
Balance as of
31 December 2021
(13,741) (7,490) (47) (10,004) (31,282)

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
76
30. EARNINGS PER SHARE
Earnings per share is the amount of earning for the year attributable to ordinary shares of the
Company divided by the weighted average number of ordinary shares outstanding during the year.
The earnings and weighted average number of ordinary shares used in the calculation of basic and
diluted earnings per share are as follows.
2021 2020
Earning for the year from discontinued operations
attributable to shareholders of Sistema PJSFC
238 1,650
Loss for the year from continuing operations
attributable to shareholders of Sistema PJSFC
17,105 8,566
Earnings used in the calculation of basic and
diluted earnings per share
17,343 10,216
Weighted average number of ordinary shares for the purposes
of basic and diluted earnings per share
9,466,994,541 9,394,766,486
Earnings per share – basic and diluted
1.83 1.09
From continuing operations
1.81 0.91
From discontinued operations
0.02 0.18
31. CAPITAL AND FINANCIAL RISK MANAGEMENT
Capital risk management – The Group manages its capital to ensure that entities of the Group will
be able to continue as a going concern while maximising the return to the shareholders through the
optimisation of the debt and equity balance.
The capital structure of the Group consists of net loans and borrowings (loans and borrowings offset
by cash and cash equivalents) and equity of the Group.
The Group’s policy is to maintain a strong capital base to maintain investor, creditor and market
confidence and to sustain future development of the business. The Group manages its capital
structure and adjusts it, in light of changes in economic conditions. The Group may sell assets to
reduce debt, maintain or adjust the capital structure.
The Board of Directors monitors the net loans and borrowings to OIBDA ratio. Since these are not
IFRS measures, the Group’s definition of OIBDA and net borrowings may differ from that of other
companies. The Group’s net borrowings to OIBDA ratio was as follows:
2021 2020
Net loans and borrowings
768,882 610,268
OIBDA 278,127 229,896
Net loans and borrowings to OIBDA ratio
2.76 2.65
The Group is subject to certain externally imposed capital requirements and restrictions that are
incorporated into the management of capital.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
77
MTS Bank – The CBR requires that banks comply with the minimum capital adequacy ratio of 8%
calculated based on statutory standalone financial statements. MTS Bank met the requirements
established by the CBR. As of 31 December 2021 and 2020, MTS Bank’s capital adequacy ratio was
12.54% and 12.82% respectively.
Financial risk management objectives – The Board of Directors has overall responsibility for the
establishment and ongoing management of the Group’s risk management framework, and the
implementation and operation of the Board’s policies are handled by the Management Board.
The Management Board monitors and manages the financial risks relating to the operations of the
Group through internal management reports, which analyses exposures by degree and magnitude of
risks. These risks include market risk (including foreign currency risk, interest rate risk and other price
risk), liquidity risk and credit risk.
Foreign currency risk – Foreign currency risk is the risk that the financial results of the Group will be
adversely impacted by changes in exchange rates to which the Group is exposed. The Group
undertakes certain transactions denominated in foreign currencies and is primarily exposed to the
US Dollar and Euro.
The Group manages its net exposure to foreign exchange risk by balancing both financial assets and
financial liabilities denominated in Russian Ruble, US Dollar and Euro and by using certain derivative
instruments (Note 32).
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary
liabilities (excluding hedged items) at the year-end are as follows:
2021 2020 2021 2020
US Dollar 63,395 63,451 34,497 46,968
Euro 39,940 51,432 5,081 8,607
Liabilities
Assets
The table below details the Group’s sensitivity to the strengthening of the US Dollar and Euro against
the Russian Ruble. This analysis assumes that all other variables, in particular interest rates, remain
constant. This analysis is based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the end of the reporting period. The analysis was applied to
monetary items at the year-end denominated in the respective currencies.
Increase in US
Dollar and Euro
Decrease in profit
before tax
2021 50% 31,879
2020 30% 17,792
The effect of a corresponding strengthening of the Russian Ruble against the US Dollar and EUR is
equal and opposite.
Interest rate risk – Interest rate risk arises from the possibility that changes in interest rates will affect
finance costs. The Group is exposed to interest rate risk because entities in the Group borrow funds
at both fixed and floating interest rates. The risk is managed by the Group by maintaining an
appropriate mix between fixed and floating rate borrowings and by using certain derivative
instruments (Note 32).

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
78
A change of floating rates by 1% applied to the borrowings (excluding hedged items) would result in
an increase in the Group's future interest expense by RUB 1,786 million.
Fixed rate loan agreements often stipulate creditor’s right to increase interest rates under certain
circumstances, including increase of the key rate of the Central Bank of Russia. Therefore, in addition
to the effect from changes in floating interest rates, the Group is also exposed to interest rate risk
arising from these agreements.
Other price risks – Price risk is the risk that the value of a financial instrument will fluctuate as a result
of changes in market prices. These changes may be caused by factors specific to the individual
security or its issuer or factors affecting all securities traded in the market. The sensitivity analysis
below has been determined based on the exposure to price risks at the end of the reporting period.
Sensitivity analysis was prepared on pre-tax basis.
If prices of securities as of the year-end had been higher/lower:
Change in prices Profit before tax increase
Other comprehensive
income increase
2021
30% 10,282 2,828
2020
30% 9,311 3,309
The effect of a corresponding decrease in prices of securities is equal and opposite.
Liquidity risk – Liquidity risk is the risk that the Group will not be able to settle all its liabilities as they
fall due.
The Group’s liquidity position is monitored and managed at the level of operating segments. The Group
manages liquidity risk by continuously monitoring forecasted and actual cash flows, by matching the
maturity profiles of financial assets and liabilities and by maintaining available credit facilities.
As of 31 December 2021, the schedule of repayments of financial liabilities (except for lease liabilities,
presented in Note 26) of the Group for the next five years and thereafter was as follows:
<1 year 1-2 years 2-3 years 3-4 years 4-5 years >5 years
Loans and borrowings
209,254 167,881 173,355 170,957 83,574 45,744
Accounts payable
132,353 - - - - -
Bank deposits and
liabilities
225,795 11,728 2,513 1,675 839 -
Other financial liabilities
32,036 10,383 - 1,857 3,732 -
Total financial liabilities
599,438 189,992 175,868 174,489 88,145 45,744
For day-to-day liquidity requirements the Group had unused credit facilities of RUB 485,128 million
as 31 December 2021 (31 December 2020: RUB 428,363 million).
Credit risk – Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in a financial loss to the Group. The Group is exposed to credit risks on cash and cash
equivalents, deposits, derivatives and certain other financial instruments with financial institutions,
loans and receivables carried at amortised cost and debt securities.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
79
The determination of whether a financial asset has experienced a significant increase in credit risk is
based on an assessment of the probability of default, which is made at least quarterly, incorporating
external credit rating information as well as internal information on the credit quality of the financial
asset. For debt instruments that are not receivables from financial services, a significant increase in
credit risk is assessed mainly based on past-due information.
For contract assets, trade and other receivables, a simplified approach is applied whereby ECL are
initially measured over the lifetime of the instrument.
Financial assets in financial institutions – the Group maintains mixture of cash and cash equivalents,
deposits, derivatives and certain other financial instruments in financial institutions. These financial
institutions are located in different geographical regions and the Group’s policy is designed to limit
exposure to any one institution. As part of its risk management processes, the Group performs
periodic evaluations of the relative credit standing of the financial institutions.
As of 31 December 2021 and 2020, the Group has a significant cash balances, cash equivalents and
deposits in the following financial institutions:
31 December 31 December
2021 2020
The Central bank the Russian Federation
9,721 16,304
The Central bank of Luxemburg
10,902 9,240
VTB
10,430 17,797
Sberbank
1,745 10,673
Total 32,798 54,014
Bank loans to customers and interbank loans due to the banks – MTS Bank performs daily monitoring
of future expected cash flows on clients’ and banking operations, which is a part of assets/liabilities
management process. The credit risk exposure is monitored on a regular basis to ensure that the credit
limits and credit worthiness guidelines established by the MTS Bank’s risk management policy are not
breached. The Group structures the levels of credit risk it undertakes by placing limits on the amount
of risk accepted in relation to one borrower, or group of borrowers, and to geographical segments.
Other loans and receivables carried at amortised cost – Concentrations of credit risk with respect to
loans and trade receivables are limited given that the Group’s customer base is large and unrelated.
Management believes there is no further credit risk provision required in excess of ECL allowance.
32. DERIVATIVE INSTRUMENTS
The Group uses derivative instruments, including interest rate and foreign currency swaps, to manage
foreign currency and interest rate risk exposures. The Group measures derivatives at fair value and
recognizes them either other current or other non-current financial assets or liabilities in the
consolidated statement of financial position. Cash flows from derivatives are classified according to
their nature. The Group reviews related fair value hierarchy classifications on a quarterly basis. The
fair value measurement of the Group’s derivative instruments is based on the observable yield curves
for similar instruments.
Gain and losses from changes in the fair value are recorded immediately in profit or loss.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
80
Assets and liabilities related to multiple derivative contracts with one counterparty are not offset by
the Group.
Cross-currency interest rate swap agreements – The Group has entered into several cross-currency
interest rate swap agreements. The contracts are designated to manage the exposure to changes in
currency exchange rate. The contracts assumed periodic exchange of principal and interest payments
from RUB-denominated amounts to USD- and Euro-denominated amounts at a specified rate. The
rate was determined by the market spot rate upon issuance. Cross-currency interest rate swap
contracts mature in 2023-2024.
In aggregate the Group entered into cross-currency interest rate swap agreements designated to
manage the exposure to changes in currency exchange rate for 65% of the Group’s bank loans
denominated in USD and EUR outstanding as of 31 December 2021 (2020: 43%).
The notional amounts related to currency derivative instruments amounted to RUB 39,788 million
and 29,663 million as of 31 December 2021 and 2020 respectively.
The Group has entered into currency forward and swaps agreements to minimize the foreign
currency risk exposure for operating activities. The contracts assumed the purchase or sale of the
agreed amount of currency at a specified exchange rate and on a specific date. The rate was
determined by the market spot rate upon issuance. As the result of currency forward and swap
agreements, unfulfilled as of 31 December 2021 and 2020, the Group recognised loss RUB 83 million
and RUB 1,136 million gain in the consolidated statement of profit or loss for the 2021 and 2020,
respectively.
The notional amounts of currency forward and swap instruments, unfulfilled as of
31 December 2021 and 2020 was RUB 9,993 million and RUB 7,911 million, respectively.
Fixed-to-variable interest rate swap agreements – The Group’s notes and bank loans denominated
in Russian Rubles bear primarily fixed interest rates. To eliminate the exposure to changes in fair
value of debt obligations, the Group enters into fixed-to-variable interest rate swap agreements. In
aggregate the Group entered into fixed-to-variable interest rate swap agreements designated to
manage the exposure to changes in value of the debt related to 6% of the Group’s notes and bank
loans with fixed rates outstanding as of 31 December 2021 (2020: 5%).
The notional amounts related to interest rate derivative instruments amounted to
RUB 39,788 million as of 31 December 2021 (2020: RUB 29,663 million).

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
81
33. FAIR VALUES
The following fair value hierarchy table presents information regarding Group’s financial assets and liabilities measured at fair value on a recurring basis at
31 December 2021 and 2020. Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety. Level 1 classification comprises financial
instruments where fair value is determined by unadjusted quoted prices in active markets for identical assets or liabilities that the Group can access at the
measurement date; Level 2 – from inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
indirectly; Level 3 – from unobservable inputs.
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
At fair value through other
comprehensive income
11,782 - 1,022 12,804 13,789 - 768 14,557
Contingent consideration
asset related to the sale of business
- - 1,867 1,867 - - 2,631 2,631
At fair value through profit
- - - - - - -
or loss
34,274 11,974 38,330 84,578 31,035 14,587 29,349 74,971
46,056 11,974 41,219 99,249 44,824 14,587 32,748 92,159
Financial liabilities
Derivative instruments
- (4,150) - (4,150) - (943) - (943)
Contingent considerations
- - (188) (188) - - (1,067) (1,067)
Liabilities under put
option agreements
- - - - - - (55) (55)
- (4,150) (188) (4,338) - (943) (1,122) (2,065)
31 December 2021
31 December 2020
The fair value of financial assets and liabilities categorised into Level 3 is primarily measured using the discounted cash flows technique. The unobservable
inputs to the models include assumptions regarding the future financial performance of the investee, its risk profile, and economic assumptions regarding the
industry and jurisdiction in which the investee operates.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
82
There were no changes made during the year to valuation methods or the processes to determine
classification and no transfers were made between the levels in the fair value hierarchy. Carrying
value of the Group’s financial instruments accounted for at amortised cost approximates their fair
value due to their short-term nature and market interest rates, except for borrowings as disclosed in
the table below:
Carrying value Fair value Carrying value Fair value
Loans and borrowings 850,765 839,849 723,961 734,919
31 December 2021
31 December 2020
The table below presents the change in fair value of financial assets and liabilities of Level 3 as of
31 December 2021 and 2020.
Liabilities
under Other Other
put option financial financial
agreements assets liabilities Total
Balance as of 1 January 2020 (73) 19,560 (907) 18,580
Total gains/(losses):
- in profit or loss 53 9,909 (68) 9,894
- in other comprehensive income - 2,746 - 2,746
Reclasses to other categories - (97) - (97)
Disposals - (1,217) - (1,217)
Repayments - (112) - (112)
Purchases (35) 1,959 (92) 1,832
Balance as of 31 December 2020 (55) 32,748 (1,067) 31,626
Total gains/(losses):
- in profit or loss 55 18,996 392 19,443
- in other comprehensive income - (650) - (650)
Reclasses to other categories
(1)
- (10,085) - (10,085)
Disposals - (3,194) - (3,194)
Repayments - (880) 487 (393)
Purchases - 4,284 - 4,284
Balance as of 31 December 2021 - 41,219 (188) 41,031
(1)
The principal amount is represented by the reclassification of financial instruments in respect of
non-controlling interests to other financial liabilities after obtaining the control over Binnopharm
Group (Note 6).
During 2021 and 2020, unrealized gains or losses were not recognised as a result of the assessment
of Level 3 liabilities at fair value.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
83
34. RELATED PARTY TRANSACTIONS
The Group has a number of related parties including its controlling shareholder and entities under
common control, associates and joint ventures, and key management personnel.
Trading transactions – The Group’s trading transactions with related parties that are not members
of the Group comprise sales and purchases of goods and services in the normal course of business.
The counterparties for these transactions are predominantly associates and joint ventures.
During the year ended 2021 sales to related parties comprised RUB 1,634 million
(2020: RUB 1,234 million), purchases from related parties comprised RUB 5,554 million
(2020: RUB 6,642 million). As of 31 December 2021, trade balances receivable from and payable to
related parties comprised RUB 6,935 million and RUB 1,936 million, respectively (31 December 2020:
RUB 5,626 million and RUB 2,083 million). Bank loans to related parties as of 31 December 2021 are
amounted to RUB 4,665 million (31 December 2020: RUB 4,195 million). Debt obligations to related
parties as of 31 December 2021 are RUB 8,016 million (31 December 2020: RUB 5,785 million).
Dividends received – In 2021, the Group received dividends from MTS Belarus in the amount of
RUB 4,034 million (2020: RUB 4,212 million), Etalon Group in the amount of RUB 1,076 million
(2020: 905 million) and Detsky mir in 2020 in the amount of RUB 452 million.
Financial transactions – The Group’s financial transactions with related parties primarily comprise
loans, deposits and other debt instruments issued to or by the Group entities. At 31 December 2021
and 2020, amounts owed by or to related parties under such arrangements are as follows:
31 December 31 December 31 December 31 December
2021 2020 2021 2020
Controlling shareholder and
entities under common
control
31,143 20,919 26,897 30,483
Key management personnel
- - 5,392 5,482
Other related parties
- - 11,859 5,090
Amounts owed by related parties
Amounts owed to related parties
Finance costs related to such transactions with related parties and recognised in the consolidated
statement of profit or loss in 2021 amounted to RUB 1,171 million (2020: RUB 1,494 million).
Turnover from other financial transactions with related parties for the twelve months ended
31 December 2021 amounted to RUB 3,496 million (2020: RUB 9,184 million).
Compensation of key management personnel – In 2021 and 2020, the aggregate compensation for
key management personnel, being the members of the Company’s Board of Directors and
Management Board was as follows:
2021 2020
Short-term benefits 4,643 3,507
Share-based payments
1,486 2,857
6,129 6,364

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
84
35. SUBSIDIARIES
Details of the Group’s most material subsidiaries at the end of the year are as follows:
Significant entities Short name Principal activity
2021 2020
Mobile TeleSystems PJSC MTS Telecommunications 50.58% 50.02%
Medsi Group JSC Medsi Healthcare services 95.49% 95.49%
Bashkirian Power Grid Company JSC BPGC Energy transmission 90.96% 90.96%
Segezha Group JSC Segezha Group
Pulp and paper 62.17% 98.33%
Agroholding Steppe JSC Steppe Agriculture 91.26% 92.82%
Binnopharm Group LLC Binnopharm Group Pharmaceuticals 75.32% n/a
Beneficial ownership
as of 31 December
The table below shows details of non-wholly owned subsidiaries of the Group that have material non-
controlling interests:
Principal place of
Name of subsidiary business
2021 2020 2021 2020
MTS
Russia 31,633 30,672 4,286 13,601
Segezha Group
Russia 3,229 (22) 17,015 132
Accumulated non-controlling
interests
Profit/(loss) allocated to
non-controlling interests
Summarised financial information in respect of each of the Group’s subsidiaries that has material
non-controlling interests is set out below. The summarised financial information below represents
amounts before intragroup eliminations. The consolidated financial information presented below is
indicative of pre-exclusion of intra-group transactions.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
85
2021 2020 2021 2020
Current assets
263,299 262,354 56,319 24,535
Non-current assets
752,518 656,849 152,991 64,883
Total assets
1,015,817 919,203 209,310 89,418
Current liabilities
473,364 328,614 73,222 16,516
Non-current liabilities
527,851 557,899 89,896 64,033
Total liabilities
1,001,215 886,513 163,118 80,549
Equity attributable to shareholders of Sistema
5,480 15,100 29,150 8,609
Non-controlling interests
9,123 17,590 17,041 259
Revenue
534,403 494,926 92,442 68,987
Expenses
(470,134) (432,852) (77,205) (70,335)
Profit for the year
64,269 62,074 15,237 (1,348)
Profit attributable to shareholders of Sistema
31,840 30,741 12,041 (1,324)
Profit attributable to the non-controlling interests
32,429 31,333 3,196 (24)
Other comprehensive income attributable to
shareholders of Sistema
605 822 140 952
Other comprehensive income attributable to
the non-controlling interests
592 822 - -
Other comprehensive income for the year
1,197 1,644 140 952
Total comprehensive income attributable
to shareholders of Sistema
32,445 31,563 12,181 (372)
Total comprehensive income attributable
to the non-controlling interests
33,021 32,155 3,196 (24)
Total comprehensive income for the year 65,466 63,718 15,377 (396)
MTS
Segezha Group
2021 2020 2021 2020
Dividends accrued to non-controlling interests
30,747 25,935 2,493 75
Net cash inflow from operating activities
142,579 155,507 13,092 14,734
Net cash outflow from investing activities
(116,165) (81,133) (50,497) (12,925)
Net cash (outflow)/inflow from financing activities
(71,214) (27,360) 46,154 (1,623)
Net cash (outflow)/inflow
(44,800) 47,014 8,749 186
MTS
Segezha Group
36. NON-CASH TRANSACTIONS
The Group entered into the following non-cash investing and financing activities, which are not,
reflected in the consolidated statements of cash flows:
2021 2020
Additions to the assets leased 29,393 17,954
Offsetting of counter-obligations
- 13,532
Capital expenditure liabilities 5,402 12,701
Employee benefits 7,045 3,933
Fair value of the equity consideration of a subsidiary - 2,625
Deferred payment 26,579 -
Information on non-cash acquisitions of subsidiaries is disclosed in Note 6.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
86
37. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Cash flows Cash flows
Disposal/
from from acquisition
financing operating of Changes Other
1 January activities activities subsidiaries Currency in changes 31 December
2021 (i)
(ii)
(Note 5, 6) exchange equity (iii) 2021
Loans and borrowings
723,961 111,514 - 20,376 (2,243) - (2,843) 850,765
Capital transactions
of subsidiaries - 31,680 - - - (35,466) 3,786 -
Lease liability
165,574 (19,682) (13,269) 12,174 (8) - 43,048 187,837
Dividends payable 3,326 (35,557) - - - 37,489 - 5,258
Other financial liabilities 7,476 (21,197) - 44,916 - 5,425 11,385 48,005
Total 900,337 66,758 (13,269) 77,466 (2,251) 7,448 55,376 1,091,865
Cash flows Cash flows Disposal/
from from acquisition
financial operation of Changes Other
1 January activities activities subsidiaries Currency in changes 31 December
2020 (i) (ii) (Note 5, 6) exchange equity (iii) 2020
Loans and borrowings 620,870 93,787 - (1,477) 16,078 - (5,297) 723,961
Capital transactions
of subsidiaries - (8,288) - - - 7,864 424 -
Lease liability 165,625 (17,094) (13,828) 1,795 1,529 - 27,547 165,574
Liability under agreement with Rosimuchestvo 7,232 (8,487) - - 1,285 - (30) -
Dividends payable 15,569 (39,661) - - - 27,418 - 3,326
Other financial liabilities 6,995 - - - - (279) 760 7,476
Total 816,291 20,257 (13,828) 318 18,892 35,003 23,404 900,337
Non-cash changes
Non-cash changes
(i) The cash flows from bank loans, loans from related parties and other borrowings make up the net amount of proceeds from borrowings and repayments of borrowings in the consolidated
statement of cash flows.
(ii) The cash flows are represented by lease liability interest paid.
(iii) Other changes include new lease agreements, interest accruals and newly recognized other financial liabilities.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
87
38. CONTINGENCIES AND COMMITMENTS
Capital commitments – A capital commitment is a contractual obligation for future payments mainly
for the acquisition of network infrastructure. These amounts are not recorded in the consolidated
statement of financial position since the Group has not yet received goods or services from suppliers.
As of 31 December 2021, the Group had capital commitments of RUB 104,616 million (31 December
2020: RUB 78,797 million), relating to the acquisitions of property, plant and equipment.
Guarantees – As of December 31, 2021, MTS-Bank and EWUB acted as guarantors for loans received
by several companies in the amount of RUB 16,172 million (31 December 2020: RUB 23,774 million),
and also had commitments to provide loans under open credit lines in the amount of RUB 37,327
million (31 December 2020: RUB 24,206 million). The Group will be required to make payments under
these guarantees only if the respective debtors fail to meet their payment obligations. These
guarantees would require payment by the Group in the event of default on payment by the respective
debtor. Such guarantee contracts issued by the Group are initially measured at their fair values and
are subsequently measured at the higher of the amount of the expected credit losses allowance, and
the amount initially recognised less, where appropriate, cumulative income recognised in accordance
with the revenue recognition policies.
Telecommunication licenses – The management believes that as of 31 December 2021, the Group is
in compliance with conditions of the used licenses.
Restriction on transactions with the shares of BPGC – In 2014, in the course of litigation, which the
Group is not a party to, the court imposed restrictions on transactions with the shares of BPGC owned
by the Group. The restrictions do not limit the Group’s voting rights, rights to receive dividends or
any other shareholders rights.
Taxation – Russian legislation on taxation for business purposes continues to change rapidly.
Management’s interpretation of such legislation as applied to the activity of the Group may be
challenged by tax authorities. Recent events suggest that the tax authorities are taking a more
assertive position in their interpretation of the legislation and assessments and as a result, it is
possible that transactions and activities that have not been challenged in the past may be challenged.
Fiscal periods generally remain open to tax audit by the tax authorities in respect of taxes for three
calendar years preceding the year of tax audit. Under certain circumstances, reviews may cover
longer periods. Management believes that it has provided adequately for tax liabilities in accordance
with its interpretations of the Russian tax legislation. However, the tax authorities may have different
interpretations, and the effects on the consolidated financial statements could be significant.
Where uncertainty exists, the Group has accrued tax liabilities as management’s best estimate of the
probable outflow of resources, which will be required to settle such liabilities. 31 December 2021,
provisions for additional taxes and customs settlements comprised RUB 414 million
(31 December 2020: RUB 1,216 million).
The Group also assesses the following contingent liabilities in respect of additional tax settlements:
31 December 31 December
2021 2020
Contingent liabilities for additional taxes other than income tax
860 1,043
Contingent liabilities for additional income taxes
1,132 892

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
88
In accordance with the rules on controlled foreign companies, undistributed profits of the Group
foreign subsidiaries, qualifying as controlled foreign companies, should be included in the income tax
base of the controlling entities in particular cases.
Operating Environment – Emerging markets such as Russia are subject to different risks than more
developed markets, including economic, political and social, and legal and legislative risks. Laws and
regulations affecting businesses in Russia continue to change rapidly, tax and regulatory frameworks
are subject to varying interpretations. The future economic direction of Russia is heavily influenced
by the fiscal and monetary policies adopted by the government, together with developments in the
legal, regulatory, and political environment.
Starting from 2014, sanctions have been imposed in several packages by the U.S. and the E.U. on
certain Russian officials, businessmen and companies. Because Russia produces and exports large
volumes of oil and gas, its economy is particularly sensitive to the price of oil and gas on the world
market.
Due to the deterioration of the geopolitical situation since February 2022 the EU, the US, the UK and
several other countries have introduced significant new sanctions and export controls on certain
Russian individuals and entities. These include, among other things, restrictions targeting a number
of large Russian financial institutions and the Central Bank of Russia, several companies and
individuals, and technology export controls.
Changes in these matters are highly unpredictable, occur quickly and often without warning, and are
largely beyond the control of the Group.
The Group is currently assessing its currency, interest rate, credit and other market risks.
Current and future risks include, but are not limited to, the risk of limitation and complete closure of
access to capital markets and the possibility of obtaining financing on commercially reasonable
terms, the risk of decrease of fair value of financial assets, the risk of restrictions on the import of
certain equipment and software and the export of finished products, as well as the risk of further
depreciation of the Russian ruble against other currencies, which could adversely affect the Group's
investment program as a significant portion of its capital expenditures are closely linked to foreign
currencies. In addition, an increase in the interest rate by the Central Bank of Russia, which raised
the key rate to 20%, will increase the cost of financing the Group. Violation of financial and non-
financial covenants stipulated by loan agreements of the Group may result in banks’ demand of
accelerated repayment of existing loans. The Group's management regularly analyzes the
implementation of covenants. To date, the Group's covenants stipulated by loan agreements have
not been violated.
The negative impact on the Russian economy is likely to increase the credit risk of many customers,
leading to the need to recognize a significant additional amount of expected credit losses. However,
it is currently not possible to quantify the corresponding financial effect.
The operations of MTS Bank, a company of the Group, are subject to risks that affect the ability of
borrowers to repay amounts due to the Group, which may depend on the overall macroeconomic
and business environment. Unfavorable changes in economic conditions could lead to a deterioration
in the value of collateral for loans and other liabilities.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
89
The above events require the business of the Group to adapt to a changing operating environment,
characterized by significant uncertainty and having a significant impact on the Group and its
operations. The actual future operating environment and its impact on the Group may differ from
the management's current expectations. The management of the Group is currently assessing the
possible impact of the above events and is taking all necessary measures to ensure the sustainability
of the Group's operations.
Starting from early 2020 a new coronavirus disease (COVID-19) has begun rapidly spreading all over
the world resulting in announcement of the pandemic status by the World Health Organization in
March 2020. Responses put in place by many countries to contain the spread of COVID-19 are resulting
in significant operational disruption for many companies and have significant impact on global
financial markets. As the situation evolves rapidly, COVID-19 could significantly impact the operations
of many companies in various sectors of the economy, including but not limited to disruption to
operations due to production suspensions or closures, supply chain disruptions, staff quarantines,
reduced demand, and difficulties in obtaining funding. Therefore, the Group may face the increasingly
broad effects of COVID-19 as a result of its negative impact on the global economy and major financial
markets. The significance of the effect of COVID-19 on the Group’s business largely depends on the
duration and the incidence of the pandemic effects on the world and Russian economy.
Legal proceedings – In the ordinary course of business, the Group is a party to various legal
proceedings, and subject to claims, certain of which relate to the developing markets and evolving
regulatory environments in which the Group operates. At 31 December 2021, management estimates
the range of possible losses, if any, in all pending litigations or other legal proceedings being up to
RUB 5,681 million.
In August 2018, the Federal Antimonopoly Service of Russia (“FAS Russia”) charged MTS and other
federal operators with violation of antimonopoly laws in respect to establishing discriminatory terms
and conditions for bulk SMS pricing for economic entities with state participation in comparison with
the conditions established for economic entities without state participation in the authorized capital.
In addition, the FAS Russia saw in the actions of MTS PJSC signs of establishing a monopoly high price
for bulk SMS services.
In May 2019, FAS Russia considered that MTS had breached the provisions of antimonopoly laws in
respect to establishing discriminatory terms and conditions for bulk SMS pricing and charging
unreasonably high bulk SMS prices, prescribing MTS to cease its violations. MTS contested the
decision and the prescription of FAS Russia in the Moscow Arbitration Court, which upheld the
position of FAS Russia in November 2019, following by the Arbitration Court of Appeal in March 2020.
MTS filed a cassation appeal to the Arbitration Court of the Moscow District, which also upheld the
position of FAS Russia. In December 2020, MTS cassation appeal was rejected by the Judicial Chamber
of the Supreme Court. In March 2021, Deputy Chairman of the Supreme Court of the Russian
Federation upheld the rejection. In August 2021, the Group paid the fine imposed by FAS Russia in
full amount of RUB 189 million.
In April, June and July 2021, JSC “Tinkoff Bank”, PJSC “Sovсombank” and JSC “Raiffeisenbank”
initiated litigations against the Group, claiming reimbursement for losses incurred in connection with
violation of antimonopoly laws in respect to establishing unreasonably high bulk SMS prices.
Commercial Court of the City of Moscow has dismissed all three claims in full. It’s currently impossible
to predict the timing or outcome of the litigations on violation of antimonopoly laws in respect to
establishing unreasonably high bulk SMS prices. Management of the Group believes that as of
31 December 2021 it has adequately provided for claims related to SMS pricing.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
90
Investigation into former operations in Uzbekistan – In March 2019, MTS reached a resolution with
the United States Securities and Exchange Commission (“SEC”) and the United States Department of
Justice (“DOJ”) relating to the previously disclosed investigation concerning the Group’s former
subsidiary in Uzbekistan, consented to the entry of an administrative cease-and-desist order (the
“Order”) by the SEC and entered a deferred prosecution agreement (“DPA“). Under the DPA and the
Order in September 2019 the Group appointed an independent compliance monitor for, inter alia,
review, testing and perfecting MTS’ anti-corruption compliance code, policies, and procedures.
As of 31 December 2021 MTS has not received notice from the SEC, the DOJ or the monitor of any
breach of the terms of the DPA or the Order. However, given a variety of factors, including the COVID-
19 pandemic, MTS has agreed to a one-year extension of the DPA and the monitorship with the DOJ
and the SEC to provide the Group with adequate time to implement necessary enhancements to
certain critical components of its anti-corruption compliance and ethics program and allow the
monitor sufficient time to be able to complete its review of the remedial efforts, including the MTS’s
implementation of the monitor’s recommendations and an assessment of the sustainability of the
MTS’s remedial actions. The term of the monitorship will continue until September 2023.
In connection with compliance monitorship, certain transactions were identified relating to the MTS’s
subsidiary in Armenia, and such transactions were disclosed to the DOJ and SEC. The DOJ and SEC
have requested information regarding the transactions and MTS has initiated an investigation into
the matter. It’s currently impossible to predict the timing or outcome of the investigation.
In December 2020, MTS received a request for information from the DOJ concerning certain historical
transactions with a supplier of telecommunication and information technology. Currently, MTS is
cooperating to provide information to the DOJ and the SEC responsive to the request.
Litigation related to operations in Turkmenistan - In September 2017, the MTS’s subsidiary
in Turkmenistan MTS Turkmenistan or MTS-TM, suspended the provision of telecommunication
services to its subscribers, due to the termination by Turkmen state-owned companies and state
authorities of line rental, frequency allocation, interconnect, and other agreements necessary to
provide telecommunication services. The license for the provision of telecommunication services on
the territory of Turkmenistan was valid until July 2018.
In July 2018, the MTS filed a Request for Arbitration against the Sovereign State of Turkmenistan with
the World Bank’s International Center for Settlement of Investments Disputes (“ICSID”) in order to
protect its legal rights and investments in Turkmenistan. As of December 31, 2021 the case is pending.
Class action complaint – In March 2019, a proposed class action complaint on behalf of Shayan Salim
and all other persons similarly situated has been filed in the United States District Court for the
Eastern District of New York against MTS PJSC and certain of its managers. In March 2021, US District
Judge of Eastern District Court of New York granted MTS’s motion to dismiss with prejudice and
dismissed the complaint in full. The plaintiff has filed an appeal for dismissal resolution of Eastern
District Court of New York. The appeal is pending. It’s currently impossible to predict the outcome of
the litigation.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
91
License fee and spectrum charges for 2002-2011 in India – In December 2019, SSTL received the
Supreme Court of India judgment regarding license fee and spectrum charges for 2002-2011 in
accordance with the definition and interpretation of Annual Gross Revenue (AGR) approved by the
Supreme Court of India. The company calculated immaterial amount to be paid based on the
aforementioned definition of AGR and considering the scheme of demerger with RCOM (which is
currently undergoing bankruptcy procedures) of 2017. This amount was paid in February 2020. The
Group does not expect any significant effect of this matter on the consolidated financial statements
of the Group.
Commitment to provide equity financing for Real hypermarkets acquisition – In February 2020, the
Group entered into an equity commitment agreement to provide financing in the amount of up to
EUR 263 million in connection with the acquisition by a group of purchasers managed by SCP Group
SARL, related party of the Group, of the German hypermarket chain Real from Metro AG and its
subsidiaries (hereinafter – the “Transaction”). The Transaction was completed in June 2020, whereas
the aforementioned equity financing in the amount of EUR 263 million, was provided by a group of
investors (hereinafter – the “Investors”). Based on the terms of agreements with the Investors, upon
completion of the Transaction the Group does not have any outstanding material exposure
associated with the financing of the Transaction including material obligations towards the Investors
in relation to guaranteed return of their respective investments, and, therefore, is neither exposed
to significant risks nor entitled to significant rewards associated with the financing of the Transaction.
As a result, no significant financial assets and/or financial liabilities related to the Transaction have
been recognised on the Group’s balance sheet as of 31 December 2020. Upon completion of the
Transaction, Group’s commitments entered into in February 2020 were fully discharged.
39. SUBSEQUENT EVENTS
Ozon – Due to sanctions imposed by the US, the EU and other countries against Russia, on 8 March
2022, a delisting event occurred for the company's USD 750 million bonds with a 1.875% coupon
maturing in 2026. Subject to the terms of the bonds, bondholders are entitled to require the
Company to repay principal and accrued interest on the bonds on the date that is fourteen New York
Business Days following the 60-day period from the later of the date of the Delisting Event or the
date of notification of it to bondholders. As a result of the measures introduced by Russia to control
the movement of capital, the ability of the Russian subsidiaries of the company to transfer funds to
the Cypriot holding company, which is the issuer of bonds, may be limited. The company is currently
developing an offer to bondholders in connection with the Delisting Event.
Placement of ruble-denominated bonds – On 26 January 2022, Segezha Group placed fifteen-year
exchange-traded bonds series 002P-03R for a total amount of RUB 9 billion on the Moscow Exchange
with a coupon of 10.9% per annum and maturity period of 2 years. The funds received from the
placement were used to pay off the debt on the acquisition of Inter Forest Rus LLC and its subsidiaries.
Acquisition of VisionLabs – In February 2022, the Group acquired a 100% ownership interest in
VisionLabs B.V. («VisionLabs»), leading provider of computer vision and machine learning solutions.
The acquisition is aimed at reinforcement of the Group’s artificial intelligence product portfolio in the
computer vision space, and enhancing the potential of the Group’s digital ecosystem. The purchase
price constitutes a cash payment of RUB 3.8 billion to a third party, transfer of the non-controlling
stake in one of the Group’s subsidiaries for RUB 0.7 billion and contingent consideration of RUB 0.6
billion. Contingent consideration is based on certain performance criteria for the periods starting
2022 and ending 2024.

SISTEMA PJSFC AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(amounts in millions of Russian Rubles, unless otherwise stated)
92
MTS President increases ownership stake – On 24 March 2022 Vyacheslav Nikolaev acquired
19,983,816 ordinary shares of MTS owned by Bastion LLC, a wholly owned subsidiary of MTS. With
the transfer of shares to Mr Nikolaev, his stake in MTS increased to more than 1% of outstanding
share capital of the company. Following the transfer, the aggregate stake of Sistema and its
subsidiaries in MTS (including ordinary shares and ADRs) has remained unchanged at 42.085%, as
Sistema and its subsidiaries were not a party to the transaction. At the same time, since the shares
were transferred from those held by MTS’s wholly-owned subsidiary Bastion LLC, the transaction has
resulted in a decrease of the Group’s effective stake in MTS to 49.94%. Accounting consequences of
this change in ownership is still being assessed.
Sale of stake in Sistema Finance Holdings S.A. – On 24 March 2022, the Group sold 90% of the shares
of Sistema Finance Holdings S.A. to a third party. Accounting consequences of this change in
ownership is still being assessed.