About Sistema

Sistema Public Joint Stock Financial Corporation was founded in 1993. The Corporation is one of the key private investors in Russia, listed among the largest public companies of the world in Forbes Global 2000.



Creating value by leveraging competencies

Сompetencies

Competitive business structure and clear criteria for performance

Efficiency

Focus on results

 Sistema JSFC was founded and acquired it's first assets

Founded by Vladimir Yevtushenkov and his partners, Sistema Joint Stock Financial Corporation begins to invest in telecom, oil refining, real estate, electronics, trade and tourism.

Russian businessman Vladimir Evtushenkov established Sistema Joint Stock Financial Corporation.

 Creation of the first Russian telecom operator VimpelCom

Sistema becomes a founder of Vimpel Communications (VimpelCom), Russia's pioneer in mobile telephony services operating under the brand Beeline 


Investments in real estate 

Sistema Hals holding company was formed to manage the Corporation's enterprises operating in the Moscow construction and real estate market.

Investments in oil & gas sector

Sistema invested in the development of oilfields in the Komi Republic and construction of Kedr-M fuel stations in Moscow. Sistema-Invest sub-holding was established to manage the new projects. 

1993

Investments in retail

Sistema acquires a 43% stake of Detsky Mir in the Lubyanka street, which at the time was the only store under this name. This gives the start to the country's biggest children's goods chain.

Sistema begins to develop the most renowned national brand in children's goods retail market.

Investments in banking

Sistema becomes a shareholder of the Moscow Bank for Reconstruction and Development (MBRD), which is later renamed as MTS Bank.

1994

Investments in Moscow telecom market

Sistema becomes a shareholder of MGTS and opens a new page in the history of Europe's biggest fixed-line operator. 


Sistema enters MGTS – a leading fixed line telecommunications company in Russian capital.

1995

The first IPO and srategic investments in telecom

Sistema sells its stake in VimpelCom during a successful IPO at the New York Stock Exchange, raising $110.8 mn, reinvests the profit in acquisition of a 40.4% stake in Mobile TeleSystems (MTS), and begins developing Russia's biggest telecom operator in partnership with Deutsche Telekom.

Sistema reinvests VimpelCom IPO profits in a new telecom project MTS.

Investment in healthcare 

Sistema acquires Intourist Polyclinic at Belorusskaya, reorganised as CJSC Medsi, marking the emergence of Russia's biggest private healthcare chain. The date is celebrated as the birthday of Medsi's first flagship clinicodiagnostic centre in Moscow.

1996

Structuring of the telecom assets

Sistema Telecom holding company was formed to manage the Corporation's stakes in telecom companies. 

Consolidation of high-tech assets 

Sistema consolidates a number of high-tech enterprises into OJSC Scientific Centre Concern to carry out large-scale projects in the electronic industry.

1997

Entry into the insurance market 

Russia's largest insurance holding company is established on the basis of ROSNO. Leader Insurance, previously founded by Sistema, becomes a part of it.

Sustainability during financial crisis in Russia

Sistema is one of the few Russian corporations that do not find themselves on the brink of default during the 1998 economic crisis in the country. The company discharges its obligations to financial partners in full.

1998

Launch of mobile internet services 

In February, MTS launches a GSM 900/1800 network: its subscribers can now access the internet from their mobile phones using the WAP protocol.

MTS opened access to the Internet via cell phone for its subscribers.

1999

MTS IPO on NYSE

On 30 June, MTS successfully places over 15% of its shares on the New York Stock Exchange under the MBT ticker, raises $323 mn and immediately becomes Russia's biggest telecom company by capitalisation.

The IPO of MTS on the New York Stock Exchange was successfully completed raising $323 mn.

Expansion in the children's goods market

Detsky Mir opens its first supermarkets in Russian cities.

WEF membership and corporate governance enhencement

Sistema becomes a member of the World Economic Forum (WEF), joins the special program for the corporate governance development and adopts all the principles recommended by the WEF. 

Sistema is among the first Russian companies to engage independent directors and the first of big non-public companies in the country to disclose its shareholders.


The beginning of the monobrand mobile retail

The merger of MTS and Russian Telephone Company (RTC) marks the emergence of the country's biggest chain of mobile phone stores.

2000

Further expansion to insurance market  

Allianz AG, one of the world's biggest financial groups, becomes a strategic investor in ROSNO. Sistema now owns 49% in the insurance holding, and Allianz 47.2%.

Sistema attracted Allianz AG as a strategic partner in ROSNO.

Entry into the Luxembourg banking market

Sistema acquires a stake in East-West United Bank (EWUB), which was founded in 1974 on initiative of Prime Minister of Luxembourg Pierre Werner.

2001

New tech company appears in Russia 

SITRONICS is founded, which will later become a centre of expertise for development of city IT infrastructure, including Smart City solutions and digitalisation of regions. 

Sistema begins to build SITRONICS high-tech holding.

2002

Increasing the share in MTS and creation of the integrated telecom operator

Sistema buys 10% of MTS from Deutsche Telecom and becomes the majority shareholder of East Europe's biggest mobile operator. It also acquires control over telecom companies Comstar (50%) and Cosmos TV (50%). The USD 35m transaction has become an important milestone in the process of consolidation of alternative telecom operators controlled by the Corporation (including MTU Intel and Golden Line) for creating a consolidated digital operator.

Sistema takes control over MTS and Comstar.

Hospitality business development

The Intourist Hotel Group management company spins off from the Intourist tourist operator business to develop hotels in Russia and abroad. 

Participation in Skylink Moscow project 

Sistema participates in the establishment of CJSC Skylink, a new mobile communication and wireless broadband internet operator working in the CDMA standard. 

2003

Sistema's listing in Moscow  

 Sistema’s ordinary shares are included in Quotation List B of the RTS stock exchange under the AFKS ticker symbol. 


Real estate developer Leader-Invest was founded

Sistema establishes real estate developer Leader-Invest to carry out housing and commercial development projects in Moscow.

Sistema Charitable Foundation was established

Sistema Charitable Foundation is established to operate Sistema Group's social investments. It is now one of Russia's oldest and biggest charitable organisations.

Control over Kvazar-Micro 

Control was acquired over Kvazar-Mikro, a corporation working in the IT and system integration sector. In 2008 the IT company was renamed SITRONICS Information Technologies and in 2012 came under the control of the NVision Group.


Partnership with Alcatel 

Sistema and Alcatel sign a contract to roll out Russia's first broadband entertainment network which establishes a platform to provide multimedia services to Sistema's retail customers.

 Sistema is the Best Corporate Borrower 

 The Euromoney magazine recognized Sistema as the Best Corporate Borrower in Eastern Europe.


2004

Sistema's IPO on the LSE

The Corporation raises $1.56 bn through an IPO on the London Stock Exchange. Sistema's global depositary receipts (GDRs) are listed under the SSA ticker symbol. 


The IPO of the Corporation has become the largest one in the history of Russia and Central and Eastern Europe.

 Sistema starts trading on the MSE 

The Moscow Stock Exchange starts trading in Sistema's ordinary shares under under the SIST ticker symbol.


 Fixed telecom assets consolidation 

Sistema completed the consolidation of its fixed-line telecom assets at Comstar — United TeleSytems. The consolidation resulted in Comstar – UTS holding controlling stakes in MGTS (55.62%) and alternative operators MTU-Inform (99%), Telmos (100%), and MTU-Intel (100%). 





Sistema completed the consolidation of its fixed-line telecom assets at Comstar — United TeleSytems. The consolidation resulted in Comstar–UTS holding controlling stakes in MGTS (55.62%) and alternative operators MTU-Inform (99%), Telmos (100%), and MTU-Intel (100%).

Broadband revolution in Moscow 

MTU-Intel (subsequently – COMSTAR-Direct) makes a revolution on the Moscow mass internet market, starting to provide broadband internet and interactive TV services under the Stream brand. It took the provider less than a year to become the leader in the broadband segment, with over 100,000 users.

Investment in DTV and CTV 

Sistema acquired 74% share in Digital TV and Radio Broadcasting (CTV) which built the basis for the Corporation's media business. 



High-tech holding was founded

The consolidation of Kvazar-Mikro and SITRONICS under Scientific Centre Concern's management resulted in establishment of the high-tech holding SITRONICS OJSC.
 


 Sistema acquires stakes in Bashkir fuel & energy companies 

Sistema acquires $502.9 mn worth of minority stakes in Bashkir fuel and energy companies, including Bashneft and Bashkirenergo. It later buys additional stakes worth $96.8 mn.


Sistema acquires USD 502.9m worth of minority stakes in Bashkir fuel and energy companies, including Bashneft and Bashkirenergo. It later buys additional stakes worth USD 96.8m.

 Sistema's stakes in MTS and MBRD increased 

Sistema increased its shareholding in MTS to 52.8% and in the MBRD to 98.9%.


2005

 Comstar – UTS IPO on the LSE

Comstar – UTS places 35% of its shares on the London Stock Exchange, raising over $1 bn, which becomes the second biggest IPO of a Russian issuer on the LSE after Sistema itself.  

Comstar – United TeleSytems raises $1 bn in an IPO on the London Stock Exchange.

 Sistema-Hals IPO on the LSE

The Corporation raised $409 mn from the IPO of its real estate developer Sistema-Hals on the London Stock Exchange. 


Cosmos hotel was acquired

Intourist Hotel Group acquireв a stake in Moscow's biggest hotel, Cosmos, and becomes its majority shareholder.

Establishment of a pharma company 

Sistema established Binnopharm, a biopharmaceutical company which is to become one of Russia's leading producers and distributors of medications with an in-house R&D division.

SITRONICS and Siemens set up a Joint Venture

Siemens AG and Sitronics signed an agreement and established a joint venture Innovative Research Center Ltd. 



2006

SITRONICS IPO on the LSE 

SITRONICS, which has consolidated Sistema's high-tech assets, raised $356,4 mn during an IPO on the London Stock Exchange with the capitalization $2.35 bn. Later this year the Corporation increased its stake in the company to 60%.

Sistema's high-tech holding raised over $355 mn in an IPO on the London Stock Exchange.

 Listing on the MICEX 

Sistema's shares are included in the Level B quotation list of the MICEX under the AFKS ticker symbol.


 Development of Healthcare business 

Sistema acquired a 100% stake in American Hospital Group and a 20% stake in Medexpress clinics chain. Later Sistema consolidates a 100% shareholding of Medexpress clinics chain. 


Sistema sells ROSNO to Allianz

Sistema sells 47.4% of ROSNO to Allianz for $750 mn with a call option for the remaining 3% for a few years.

Expansion of the banking business

Sistema acquired a stake in OJSC Dalcombank in Khabarovsk and increases it to 48.16%, while the MBRD consolidated 66% of East-West United Bank.


Entry to the Indian telecom market 

The Corporation entered the telecom market of India and established a mobile operator, Sistema Shyam TeleServices (SSTL), which is later merged with the country's fourth biggest mobile operator, Reliance Communications.

Sistema and Roscosmos esteblished NIS

Sistema and the Federal Space Agency (Roscosmos) established the Navigation and Information Systems OJSC (NIS) to provide navigation services.The company has become one of Russia's leading providers of transport monitoring services.

2007

The merger of healthcare assets

The Corporation completed the merger of its healthcare assets in CJSC Medsi Group, where Sistema owns 100%.


Medsi Group of companies was established.

Investment in the film industry

Sistema and Russian World Studios (RWS) created Russia's biggest film company, where the Corporation owned 51% and RWS' management – 49%. Subsequently, Sistema exited the business of producing film and television content, while the Kinopolis film production complex in St. Petersburg (United Russian Film Studios JSC), one of the most high-tech studios in Europe, was integrated into MTS Group.




Russia's the largest movie complex set up&nbsp;<br>

Top-10 best employers in Russia

Sistema is named as the only one among stock market, investment and management companies among Russia's top 10 employers in a survey of E-xecutive managers’ community.


 Restructuring of high-tech assets 

SITRONICS consolidated 100% of Kvazar-Mikro.

Consolidation of Dalcombank 

Sistema acquired another 50.48% shares in Dalcombank and during the year increased its stake to 100%. 


2008

Telecom assets convergence 

 Sistema completed the sale of a 50.91% stake in COMSTAR-UTS to MTS for approximately $1.32 bn. 

Sistema sold its stake in COMSTAR-UTS to MTS, and set up&nbsp;Russia’s leading mobile connectivity and digital services provider.

Investments in microelectronics

Sistema and RUSNANO agreed to launch a serial production of 90 nm integrated circuits using on the basis of Molecular Electronics Research Institute and Mikron industrial facilities in Zelenograd, with prospects of developing new Russian technologies and innovative products.

Gaining control over Bashkir fuel & energy companies 

Sistema acquired controlling stakes in BashTEK companies. Its shareholding in Bashneft reaches 76.5%. Sistema Group now also owns OJSC Bashkirenergo, one of Russia's biggest regional energy systems.


Exit from insurance business

 Sistema completed its exit from ROSNO by selling the remaining 3% stake to Allianz AG for €34 mn. 



 Sale of Sistema-Hals 

Sistema sold a controlling stake (51.24%) in Sistema Hals to Bank VTB, that exercised the call option.

2009

Sberbank acquired stake in Detsky Mir

Sistema sold 25%+1 share in Detsky Mir Center OJSC to Sberbank of Russia through an additional share issue. Detsky Mir-Center issues 743 shares with a par value of RUB 100, representing 25% + 1 share of the Company’s share capital after the additional issue. The shares were placed at approximately RUB 4.6 mn per share. 

Sistema sold 25% +1 share in Detsky Mir to Sberbank by placing 743 additionally issued shares in its favour through private subscription. The placement price was about RUB 4.6 mn per share.


 Sistema acquired 49% of RussNeft 

Sistema signed a purchase agreement for 49% of the RussNeft, a Top 10 Russian oil company, for around $100 mn. 






 Exit from Sistema-Hals 

Sistema sold the remaining 27.6% stake in Sistema-Hals to Blairwood Limited and Stoneflower Limited for $70 mn.



2010

 The first investments in agriculture

Sistema acquired Donskoye OJSC for RUB 476.5 mn and the First Cavalry Army Stud Farm OJSC for RUB 303 mn, with about 39,000 ha of land in the Rostov region.

Sistema acquired land in the Rostov region.

Sistema Capital established its first mutual fund 

The first mutual investment fund of financial instruments is registered by&nbsp;Sistema Capital, marking the start of its active work in the financial and investment markets.


Join venture of Intourist and Thomas Cook 

Intourist and Thomas Cook Group establishmed a joint venture on the basis of Intourist's tour operating and retail business. Thomas Cook acquired a 50.1% stake in the JV for a total stock and cash consideration of $45 mn. 




Investments in petrochemical sector

Bashneft and Petrochemical Holding established United Petrochemical Company as a vehicle to assess possible investments in petrochemical sector in Russia. The partners gained 75% and 25% in the joint venture, respectively. 

 Sale of MGTS 

 MTS acquired 29.05% stake in MGTS from Sistema for RUB 10.56 bn. 

 Reorganization of energy assets 

Sistema reorganised the ownership of Bashkirenergo through restructuring of OJSC Sistema Invest. As a result, the share of Bashkir fuel and energy companies in the authorised capital of Sistema Invest reaches 49.5%, while Sistema Invest becomes the owner of 50.17% of Bashkirenergo (47.87% of the authorised capital).

 Russian government acquired stake in SSTL 

The Russian government becomes a shareholder of SSTL via the Federal Agency for State Property Management (Rosimushchestvo), which acquired a 17.14% stake in the Indian telecom operator for INR 26,988 mn (approximately $600 mn).


 New strategy and structure 

Sistema’s Board of Directors approved new organizational structure and strategy, designed to reshape the Corporation 
from an operating holding to an investment company. All the investments were divided into two portfolios: core assets and developing assets. 




2011

Expansion of healthcare business

Medsi commenced a merger of assets with the State Unitary Enterprise Medical Centre (SUE). Medsi initiated an additional share issuance via a closed subscription. SUE paid for the shares issued to it with its property, which has a market value of RUB 6.043 bn, and received a 25.02% stake in the integrated medical company. As part of a public-private partnership, Medsi included 3 adult clinics, 1 children's clinic, 3 clinical hospitals and 2 sanatoriums.




Medsi merger with the State Unitary Enterprise Medical Centre assets in Moscow.

ELC entered the Russian market

Detsky Mir began developing a retail chain under the well-known British brand Early Learning Centre (ELC) in Russia.

Sistema partnership with members of the Louis-Dreyfus family

Sistema and members of the Louis-Dreyfus family established a join venture in the farming business combined the partners’ agricultural assets, totaling approx 90 000 hectares. 

MTS Bank affiliated Dalcombank

MTS Bank took over one of the leading banks in the Russian Far East, Khabarovsk-based Dalcombank, aquired in 2008. 

GPON deployment in Moscow 

MGTS began to deploy a high-speed GPON network in Moscow, which offes millions of subscribers internet services with a speed of up to 100 Mbit/sec or even higher.


About Sistema

TOTAL
ASSETS

2,1 trn ₽

Investments
for 2022

210,5 bn ₽

contribution
to Russia's GDP

0,6 percent

Success Story

1993

1994

1995

1996

1997

Sistema's mission:

Investment Strategy

Сompetencies

Creating value by leveraging competencies

Efficiency

Competitive business structure and clear criteria for performance

Focus on results

Applying science to create art

No cash – no reward for management

Corporate Governance

Career

Sistema Group employs over 150,000 people

Contacts

Address

Call Centre

Fax

About Sistema

TOTAL ASSETS

2,1 trn ₽

Investments for 2022

210,5 bn ₽

contribution to Russia's GDP

0,6 percent

Success Story

1993

1994

1995

1996

1997

Sistema's mission:

Investment Strategy

Сompetencies

Creating value by leveraging competencies

Efficiency

Competitive business structure and clear criteria for performance

Focus on results

Applying science to create art

No cash – no reward for management

Corporate Governance

Career

Sistema Group employs over 150,000 people

Contacts

Address

Call Centre

Fax

TOTAL
ASSETS

Investments
for 2022

contribution
to Russia's GDP