Sistema PublicFinancial : Annual Report 2022 (AGM Materials)

02

1.

3.

CORPORATE GOVERNANCE

Corporate governance system

Remuneration policy applied to board members and senior management

Integrated risk management system and the group's risk appetite

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CONTENTS

4.

SUSTAINABILITY

MANAGEMENT54

This annual report contains information about the activities of Sistema Public Joint Stock Financial Corporation and its portfolio companies (hereinafter, «Sistema», «Sistema PJSFC» «the Corporation» or, together with its subsidiaries and affiliates, «the Group»or «Sistema Group») in 2022.

The annual report of Sistema PJSFC for the year 2022 has been prepared in compliance with Federal Law on Joint Stock Companies, Federal Law on Securities Market, Bank of Russia Regulation on Disclosure by Issuers as amended.

Unless otherwise stated, the financial results presented in this annual report are based on IFRS consolidated financial statements. The audit of Sistema's 2022 consolidated financial

statements in accordance with IFRS was performed by AO "Business Solutions and Technologies". The report also provides information about the Corporation's environmental, social and governance effectiveness.

The annual report may contain minor inaccuracies in the estimation of shares, percentages and amounts due to the rounding of numbers. There may be insignificant discrepancies between the data contained in this annual report and the data disclosed earlier due to the rounding differences.

For other annual reports of the Corporation please go to Investors and Shareholders sections on the company's website (www.sistema.com).

Some of the statements in this annual report may contain assumptions or forecasts concerning the forthcoming or expected events at Sistema or its portfolio companies. Such forward-looking statements contain phrases like «expected», «estimated», «intended», «will», «could», negatives of such statements and other similar expressions. Such statements are assumptions only and the actual course of events and their results may differ significantly from those implied in the forward-looking statements.

Sistema expressly disclaims any obligation to revise any forward-looking statements whether as a result of new events and circumstances that may arise in the future or to reflect any events that are not expected at the time of compiling this report. The actual results of Sistema and

its portfolio companies could differ materially from those expressed in the assumptions and forecasts of this annual report due to a number of factors.

Such factors may include general economic conditions, competitive environment, risks associated with the deterioration of the geopolitical situation and business operations in Russia, fast technological and market changes in the segments where Sistema and its portfolio companies operate, the impact of various unforeseen events on the macroeconomic situation in the markets where Sistema and its portfolio companies operate and on their financial results, as well as many other risks that are directly related to Sistema or its activities.

Sistema today

SUSTAINABLE

TOP

20

Largest Russian companies by revenue (RBC)

TOP

20

Public Russian companies in Forbes Global 2000 rating

0.6%

Contribution to Russia's gross domestic product

Overview of Sistema Group

Sistema's strategic goal

To ensure long-term growth of shareholder value by boosting return on investments in the existing assets and reinvesting available cash in new investment projects to diversify its portfolio and increase return on investments.

Sistema's sustainability goal

To build competitive businesses with high added value that meet the principles of social and environmental responsibility and contribute to the sustainable development of industries and regions of operations and to the steady growth of socioeconomic and technological potential, human capital, quality of life and social well-being.

Sistema Group at a glance1

DESGV LOPMENT

Environmental - Social - Governance

Sistema Public Joint Stock Financial Corporation is Russia's largest public investment company and one of the country's systemically important companies. Founded in 1993, Sistema is today represented across over 20 high-potential sectors of the Russian economy, including telecommunications, forestry, agriculture, pharmaceuticals, healthcare, real estate and e-commerce. The Corporation's investment portfolio is made up mostly of Russian companies operating across Russia and in more than 25 other countries.

The Corporation's shares trade on the Moscow Exchange (ticker: AFKS) and on the London Stock Exchange in the form of global depositary receipts (ticker: SSA)2. One GDR represents 20 ordinary shares.

• 25 countries
• 20 industries
• 25 companies

AFKS

MOEX

RUBRUB

912.7 310.4

investments

Сredit rating

11.5 Low ESG risk

Sustainalytics rating

1. As of the end of 2022.
2. Effective delisting of Sistema's GDRs from LSE was on 17 May 2023.

B

CDP Climate

Change Score