IPO of Ozon

In November 2020, Ozon held an IPO of American Depositary Shares (ADSs) on NASDAQ and obtained a listing of its ADSs on the Moscow Exchange. Gross proceeds to Ozon amounted to approximately USD 1.25 bn, including the private placement through which Sistema invested USD 67.5 mn. As a result Sistema’s total stake in Ozon stood at 33.1%.

Successful exit from Detsky Mir

Sistema and the Russia-China Investment Fund (RCIF) held two successful offerings of Detsky Mir shares, resulting in their full exit from the asset and an increase of the company's free float up to almost 100%. These placements of shares amounted almost RUB 26 bn for Sistema: RUB 8.9 bn in June 2020 and RUB 16.9 bln in September 2020. Since IPO on the Moscow Exchange in 2017, Detsky Mir has delivered to the Corporation over RUB 60 bn in proceeds from placements and dividends to Sistema.

Foundation of Binnopharm Group

In May 2020, Sistema and VTB Group increased their stake in OJSC Sintez to 56.2%. Aiming to the consolidation of the pharmaceutical business of the Corporation, Binnopharm Group holding was сreated, which united 5 production sites with the largest total portfolio of drugs among Russian manufacturers – more than 450 market authorisations: Alium (formerly OBL Pharm, Moscow Region), Binnopharm (Zelenograd and Krasnogorsk), Sintez (Kurgan) and Bioсom (Stavropol). Binnopharm plant in Zelenograd became known worldwide as the first site in Russia to launch industrial production of the vaccine against COVID-19, and thus gave the name to the united holding company. As a result of the operational integration Binnopharm Group entered Top 5 by sales in monetary terms among Russian companies in the commercial segment in 2020.

Investment in Elektrozavod

Sistema and SberInvest through their joint venture Megapolis-Invest acquired 64.37% in Elektrozavod JSC and 100% in Elektrokombinat LLC  from certain private investors for RUB 24.7 bn. The goal of the transaction is to create Russia’s leading manufacturer of transformer equipment and implement a real estate development project on land plots totalling 19 ha in Moscow owned by Elektrozavod Group. Elektrozavod Group includes transformer equipment production facilities in Moscow and Ufa, maintenance divisions, research and design institutes, an engineering centre.

Investment in biotech

Sistema and its subsidiary Sistema BioTech signed an investment agreement with the International Medical Cluster Fund on establishment of a multi-specialty biotech R&D lab and a centre for non-clinical testing of latest international products and technologies in the Skolkovo Innovation Center. The agreement envisages construction of a lab building with a total area of 15,000 sq m, that will become one of Russia’s largest private R&D centres.

Investment in startups

New venture fund Sistema SmartTech was established with target size up to RUB 5 bn to invest in companies at early stages (from seed to round A). 

Agricultural business development

Steppe AgroHolding sold 100% of shares in the Yuzhny agricultural enterprise, which specialises in tomato and cucumber production, to focus on the key business segments: crop production, grain trading and dairy farming. In 2020, the land assets of the company totalled 565,000 ha, mostly due to the acquisition of an 116,000 ha asset in the Rostov region. Steppe also acquired three agricultural enterprises in the Stavropol region, including a dairy farm which, following renovation, will have the capacity to accommodate 9,000 head of lactating cows and will become the largest in Russia, with milk production volume exceeding 100,000 tonnes per year. The deal also increased Steppe’s land assets by 28,000 ha.

Medsi business expansion

Medsi acquired ASPEC clinic chain in Izhevsk, which includes a clinical diagnostic centre with a daytime in-patient clinic, an adult clinic, a children’s clinic and a women’s health clinic with a total area of 4,344 sq m. In 2020, the first three “convenience” clinics of the new Smart 500 format, with an area of 500 sq m, were opened in Moscow for out-patient medical care for children and adults, laboratory and functional diagnostics facilities, and ultrasound. Medsi also opened a family clinic with advanced diagnostics in Maryino, with a total area of 4,400 sq.

Sistema received its first Sustainability Improvement Loan

Sistema signed an agreement with Sberbank for a RUB 10 bn credit facility where specific interest rates may be linked to the company’s sustainability performance. This was the first case of ESG financing provided by a Russian bank to a Russian borrower. In 2020, Sistema's BoD updated investment criteria, for the first time including ESG (environmental, social and corporate governance) factors in the investment process of the Corporation, that affirmed its strategic approach to responsible investment.