SISTEMA PUBLICFINANCIAL CORPORATION FINANCIAL
RESULTS 4Q & FY 2023
April 2024
DISCLAIMER
Certain statements in this presentation may contain assumptions or forecasts concerning the forthcoming or expected events at Sistema PJSFC or its portfolio companies. Such forward-looking statements contain words like "expect", "estimate", "intend", "will", "could", their negatives and other similar expressions.
We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors may cause the actual results of Sistema PJSFC and its portfolio companies to differ materially from those contained in our projections or forward-looking statements, including, inter alia, general economic conditions, our competitive environment, risks associated with the deterioration of the geopolitical situation, rapid technological and market changes in the sectors where Sistema operates, the financial results of Sistema and its portfolio companies, as well as many other risks directly related to Sistema PJSFC and its operations.
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023 | 2 |
GROWTH ACROSS MOST ASSETS DRIVES INCREASE IN CONSOLIDATED REVENUE
CONSOLIDATED
REVENUE
RUB bn
306.2 | 250.2 |
Q4 2023 | Q4 2022¹ |
306.2
Q4 2023 |
895.1
+22.4%
12M 2022¹
1,045.9
+16.8%
12M 2023
REVENUE GROWTH LEADERS
+104% | Q4 2023 YoY |
+45% +35%
OIBDA,
RUB bn
48.2
Q4 2023
NET FINANCIAL LIABILITIES OF THE CORPORATE CENTRE3, RUB bn
68.1
Q4 2022
48.2
Q4 2023²
(29.2%) 304.8
12M 2022¹ |
266.2 (12.7%)
12M 2023² |
Hospitality | Forestry asset | Pharma asset |
segment |
+107% | 12М 2023 YoY | |
+47% | +27% | |
247.7
31 Dec 2023
245.2
31 Dec 2022 |
247.7
31 Dec 2023 |
+1.0%
31 Dec 2023 / 31 Dec 2022
Hospitality | Development and Agricultural asset |
segment | construction asset |
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023
- The Group's revenue for Q4 2022 and 12M 2022 was adjusted for discontinued operations; the Group's OIBDA for 12M 2022 was adjusted for discontinued operations and a one-off gain from the profitable acquisition of development and construction assets.
(2) | The Group's OIBDA for 2023 was adjusted for accruals related to the LTI programme of its portfolio companies and to other one-off gains and expenditures. | 3 |
(3) | Hereinafter, the results of the Corporate Centre are presented based on management accounts. Numbers may not add up due to rounding. | |
HIGHLIGHTS IN 2023 AND AFTER THE REPORTING DATE
Sistema's Board of Directors approved a new Dividend Policy, setting the recommended amount of dividends for 2024-2026 and ensuring an annual dividend increase of 25-50%.
Sistema paid RUB 3.9bn in dividends for 2022 (RUB 0.41 per share).
Sistema successfully issued 3 series of floating-rate bonds (RUONIA+ 190 b.p.) in the amount of RUB 29.5bn for a four-year term. The company managed to maintain low interest rates for its bond portfolio (9.65% per annum) despite high market rates.
Sistema made a pilot issue of digital financial assets.
The Group's hospitality segment became a market leader in terms of available high-quality(3-5 star) hotel capacity due to the acquisition of a major hotel operator (ten hotels in four Russian cities) and organic growth of its asset portfolio.
The sales of the development and construction asset grew by a record 87% YoY, up to 547,000 sq m. The key driver is expansion into the Russia's regions where sales increased 4 times and reached 34% of total sales.
In 2023, the agricultural asset reported a harvest of more than 2.1m tonnes (+8% YoY), increased milk production by 20% YoY, up to 180,000 tonnes, and expanded its land holdings by 43,000 ha due to acquiring a number of agricultural enterprises.
The Group's IT asset entered the new market of environmentally friendly transport: electric boats. In June 2023, the first regular passenger route on the Moscow river was launched.
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023
4
FINANCIAL REVIEW FOR 12M 2023
CONSOLIDATED REVENUE, RUB bn
The Group's consolidated revenueshowed strong growth of 16.8% YoY.
71.9
895.1
+16.8%
28.3 | 6.9 | 5.7 | 4.5 | (8.4) | 19.4 | 1,045.9 |
22.5
The Group's OIBDAfor 12M 2023 was RUB 266.2bn. The absolute values of the Group's OIBDA in 2022-2023 were impacted by the performance of the forestry asset in 12M 2023 and recognition of a one-off gain from the profitable acquisition of development and construction assets in 2022.
Without the impact of these factors, the Group's OIBDA 2023 grew by 3.1% YoY.
Telecom asset:continued growth in all indicators due to telecom services, Media, retail sales, growth in the retail loan book, fee and commission income in Fintech, and development of the advertising business.
12M 2022 | Telecom | Agricultural | Develop. | Hospitality | Healthcare | Pharma | Forestry asset | Other | 12M |
asset | asset | asset | segment | asset | asset | assets, | 2023 | ||
net |
OIBDA, RUB bn
+3.1% | |||||||||||
304.8 | (33.0) | (13.1) | |||||||||
14.0 | 3.2 | 1.8 | 1.2 | 1.2 | |||||||
280.1 | |||||||||||
271.8 | (13.9) | ||||||||||
266.2 | |||||||||||
12M | One-off, | Adj. | Telecom | Hospitality | Develop. | Healthcare | Pharma | Other | 12M | Forestry | 12M |
2022 | develop. | 12M | asset | segment | asset | asset | asset | assets, | 2023 | asset | 2023 |
asset¹ | 2022 | net³ | w/o | ||||||||
forestry |
Agricultural asset:revenue growth due to trading activities, increased milk sales and crop yields in the Crop Farming segment.
Development and construction asset:the key growth driver is the increase in sales, including regional sales, as well as the consolidation effect².
Hospitality segment:growth of indicators due to an increase in average room price and acquisition of new hotels in 2023.
Healthcare asset:upward trend thanks to an increase in the number of visits to healthcare facilities and the opening of new clinics in regional markets across Russia.
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023 | ||
(1) | The high base effect, since a one-off gain (RUB 33bn based on the valuation performed) from the profitable acquisition of development and construction assets, which was recognized in 2022. | |
(2) | The development and construction asset's financial results have been consolidated in Sistema's financial statements since 04/05/2022. | 5 |
(3) | Increase in other expenses, including fines, write-off of inventory and increased expenditure on infrastructure projects. | |
CORPORATE CENTRE'S FINANCIAL LIABILITIES AND INVESTMENTS
CORPORATE CENTRE'S TOTAL DEBT STRUCTURE1 | NET FINANCIAL LIABILITIES |
As of 31 December 2023 |
DEBT REPAYMENT SCHEDULE, RUB bn
OF THE CORPORATE CENTRE² | |||
As of 31 December 2023 | |||
265.7bn | |||
247.7bn | |||
RUB | |||
● Bank loans and other | RUB | ||
● RUB bonds |
99.8
54.265.6
45.6
16.5
49.1
57.0
5.0
52.0
43.3
7.5
35.8
2024 | 2025 | 2026 |
● Local bonds with a put option3 | ● Loans and other borrowings |
2027
As of 31 December 2023, RUB-denominatedfinancing accounted for 100%of the Corporate Centre's financial liabilities.
The share of bonds in the debt portfolio decreasedfrom 77% at the end of Q3 2023 to 69% at the end
of Q4 2023 due to an increase in the share of loans.
The weighted average rate of the bond portfolio was 9.65% p.a.
Total investments of the Corporate Centre in 2023 amounted to RUB 35.8bn
and were used both for new industries (cosmetics, fishing and hospitality)
and for the development of the Corporation's existing assets.
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023
(1) "Corporate Centre's total debt" means the total volume of borrowings at the Corporate Centre level.
(2) "Net financial liabilities" means the total volume of borrowings less cash and cash equivalents at the Corporate Centre level.6
(3) RUB bond series 001Р-05/08/12/13/15/18, in 2024; series 001P-01/02/04/07/10/17/19/24, in 2025; series 001P-09/20/21/22/23, in 2026; series 001Р-06/11/14/16/26/27, in 2027.
CONSOLIDATED
FINANCIAL LIABILITIES
STRUCTURE OF CONSOLIDATED FINANCIAL LIABILITIES1, RUB bn
1,220.0
As of 31 December 2023
1%
40%
1,220.0bn
RUB
59% ● Bank loans and other
- RUB bonds
- Eurobonds
1,081.3
54
59.6
123.1
85.4
255
504.2
61.1
84.1
129.1
107.7
265.7
572.3
31 Dec 2022 | 31 Dec 2023 |
● Telecom ● Corporate Centre ● Development ● Forestry ● Agriculture ● Other
1%
2%
97%
7%
1%
● RUB | |
92% | ● USD |
● Other |
28%
72%
41%
● Long-term
● Short-term
59%
31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 |
SISTEMA PUBLIC JOINT STOCK FINANCIAL CORPORATION | Financial Results 4Q & FY 2023 | |
(1) Including financial liabilities of the Corporate Centre, finance leases and total borrowings of portfolio companies. | 7 |
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Afk Sistema OAO published this content on 08 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2024 17:21:07 UTC.
