AFK Sistema : Sistema announces results of AGM and Board of Directors meeting

02/07/2018

Sistema announces results of AGM and Board of Directors meeting

Moscow, 02 July 2018- Sistema PJSFC ('Sistema' or 'the Corporation') (LSE: SSA, MOEX: AFKS), a Russian public diversified holding company, announces the results of its Annual General Meeting of shareholders (AGM) and a meeting of the Board of Directors, both of which took place on 30 June 2018.

Based on the register of shareholders eligible to participate in the AGM, the number of retail shareholders of Sistema has risen by more than 1.5 times to 29.3 thousand as of the start of June 2018, from 18.6 thousand as of the start of November 2017.

The AGM approved the distribution of RUB 1,061.5 million, or RUB 0.11 per ordinary share (RUB 2.2 per GDR), in dividends for FY 2017. The total amount of dividends for FY 2017 and 9M 2017 will be RUB 7,623 million.

The dividend record date will be 19 July 2018. Dividends will be paid within 10 business days from this date.

The AGM elected the new composition of the Board of Directors of Sistema as follows:

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 AGM approved ZAO Deloitte and Touche CIS as the auditor of Sistema's RAS and IFRS financial statements for 2018.

At the meeting of the Board of Directors following the AGM, Vladimir Evtushenkov was elected as Chairman of the Board of Directors and Sergey Boev and Felix Evtushenkov as Deputy Chairmen.

The Board of Directors also elected Joshua B. Tulgan to the Management Board of Sistema and approved his appointment as Sistema's Vice President for External Relations.

Joshua B. Tulgan

Josh joins Sistema from Mobile TeleSystems PJSC, the leading telecommunications operator and digital services provider in Russia and the CIS, where he has most recently served as the Director of Corporate Finance & Investor Relations. In this capacity, Josh oversaw the Company's debt portfolio, certain treasury operations and risk management, as well as other corporate initiatives. Since 2006, he also served as MTS's chief investor relations officer and managed all external relations with investors and financial organizations. Under his leadership, MTS has been recognized numerous times for excellence in investor relations from 2007 through 2018. The Company has also received numerous accolades for its debt issuances and liability management exercises.

Josh began his career at Burson-Marsteller, the leading public affairs company, advising Russian companies on capital markets strategies and financial communications. Later he held finance and marketing positions both in the United States and in Russia before receiving his MBA from the McDonough School of Business at Georgetown University (Washington, DC) in 2004. Prior to joining MTS, Josh worked as a consultant, advising multinational clients on market entry strategies for Russia and the CIS.

Josh received his A.B. from Bowdoin College (Brunswick, Maine) and is a graduate of Phillips Academy (Andover, Massachusetts).

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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.ru