HomeAbout SistemaInvestment Strategy

Mission & Investment Strategy

Mission

Long-term growth of shareholder value through efficient management of the asset portfolio and achievement of high returns on investment.

Value creation model

Sistema’s investment model aims to monetise its portfolio of assets by accumulating cash from incoming dividends and proceeds from asset sales, and subsequently either

(i) investing in new, high-potential investment projects capable of generating high returns on invested capital;

(ii) distributing profit to shareholders in the form of dividends; or

(iii) investing in the development of existing assets to increase their value.

Basic investment strategy principles

 

  • Generation of returns on investment above the long-term cost of capital (IRR>WACC), with a five to seven-year payback period
  • Focus on investments with a positive net cash flow
  • Acquisition of assets with acceptable debt levels (Debt/OIBDA of the acquired asset <3.0x)
  • Maintaining the consolidated debt/EBITDA ratio at 2.5x or less
  • Substantial dividend payouts pursuant to dividend policy

Our business: creating value by leveraging competencies
Our principles of operation: competitive structure and clear criteria
Our strategy: applying science to create art
Our efficiency: no cash – no reward
  • Assessment and development of business strategies for our assets without involvement in operations
  • Monitoring of M&A opportunities in current and new sectors
  • Development and implementation of asset monetisation plans
  • Hiring efficient management for companies under our control
  • Providing comprehensive support to our assets in attracting financial and other resources
  • Increasing operational efficiency of acquired assets through restructuring and attracting industry partners to increase expertise and share financial risks
  • Managing assets according to the principle of deal origination and industry expertise of portfolio managers
  • A team of strategic experts, macroeconomists and communication professionals
  • Focus on investment with a positive net cash flow
  • Acquiring assets with an acceptable debt level (Debt/OIBDA < 3.0x) for preserving the Group's stable financial situation
  • Generation of returns on investment above the long-term cost of capital (IRR>WACC), with a five to seven-year payback
  • Maintaining the consolidated debt/EBITDA ratio at 2.5x
  • Substantial dividend payouts pursuant to dividend policy
  • Remuneration of investment managers fully depends on cash generated by their portfolio for Sistema
  • Cash may be received from dividends or monetisation
  • Current dividends from MTS are not included in calculation of remuneration
  • Remuneration is paid after deducting the portfolio's expenses and the Central Bank's rate

Corporate News

View All