Sistema announces decisions of the Board of Directors
Moscow, Russia – 21 May 2018 – Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces the decisions taken at the meeting of its Board of Directors held on 19 May 2018. The Board of Directors approved the list of candidates nominated for the election to the Board at the Annual General Meeting of shareholders (AGM) on 30 June 2018. The list of candidates for the Sistema’s Board of Directors includes all incumbent Board members:
1. Vladimir Evtushenkov
2. Anna Belova (as an independent director)
3. Sergey Boev
4. Andrey Dubovskov
5. Felix Evtushenkov
6. Ron Sommer
7. Robert Kocharyan (as an independent director)
8. Jeannot Krecké (as an independent director)
9. Roger Munnings (as an independent director)
10. Mikhail Shamolin
11. David Iakobachvili (as an independent director)
The Board of Directors also voted to recommend to the AGM a dividend payment for FY 2017 of RUB 1,061.5m (RUB 0.11 per ordinary share, RUB 2.2 per GDR). Taking into account the priority of the strategic goal to reduce the Corporation's debt, the Board of Directors thereby supported management's proposal to deviate from the Corporation’s current dividend policy. The total amount of dividends paid for FY 2017 and 9M 2017 may be RUB 7,623 m. It is expected that Sistema’s Board of Directors, when determining the recommended amount of dividends in the future, will take into account the acceptable rate of debt reduction and the proportionality of dividends to the current cash flow of the Corporation, which is necessary to maintain a balance between the rights and interests of all shareholders and the Corporation's ability to pay dividends, and the reduction of the Corporation’s debt. The Board of Directors recommended to the AGM to set 19 July 2018 as the dividend record date.
Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2017 reached RUB 704.6bn; its total assets equalled RUB 1.1tn as of 31 December 2017. Sistema's global depositary receipts are listed under the “SSA” ticker on the London Stock Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the Moscow Exchange. Website: www.sistema.com
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.