Sistema capital markets day 2007
Download
1 / 37

Sistema Capital Markets Day 2007 - PowerPoint PPT Presentation


  • 102 Views
  • Uploaded on

Sistema Capital Markets Day 2007. London June 04, 2007 Vladimir Evtushenkov , Chairman of the Board of Directors Alexander Goncharuk , President Alexei Buyanov , Senior Vice President and Head of Finance and Investment

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Sistema Capital Markets Day 2007' - leane


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Sistema capital markets day 2007

Sistema Capital Markets Day 2007

London

June 04, 2007

Vladimir Evtushenkov, Chairman of the Board of Directors

Alexander Goncharuk, President

Alexei Buyanov, Senior Vice President and Head of Finance and Investment

Anton Abugov, First Vice President and Head of Strategy and Development


Disclaimer
Disclaimer

Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events revenues or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “predict”, “could”, plan”, “project,” “will,” “may,” “should” and similar expressions identify forward-looking statements. Forward-looking statements include statements regarding: strategies, outlook and growth prospects; future plans and potential for future growth; liquidity, capital resources and capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, growth in demand for our products; economic outlook and industry trends; developments of our markets; legal trends and the impact of regulatory initiatives; and the strength of our competitors.

The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control and we may not achieve or accomplish these expectations, beliefs or projections. In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the achievement of the anticipated levels of revenues, profitability and growth, cost and synergy of our recent acquisitions and restructuring, the timely development and acceptance of new products, the impact of competition and competitive pricing, the ability to obtain necessary regulatory approvals and the ability to fund our future operations and capital needs through borrowing or otherwise, the ability to successfully implement any of our business strategies, the ability to integrate our business and to realize anticipated cost savings and operational benefits from such integration, our expectations about growth in demand for our products and services, the effects of inflation, interest rate and exchange rate fluctuations, and our success in identifying other risk to our business and managing the risk of the aforementioned factors, the condition of the economy and political stability in Russia and the other markets of operations and the impact of general business and global economic conditions.

Neither we, nor any of our respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation.

The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.


Introduction to sistema
Introduction to Sistema

Career in Sistema

  • 2006: Chairman of the Board of Directors

  • 2005: President

  • 1995 – 2005: Chairman of the Board

  • 1993 – 1995: President

  • 1993: Founded Sistema

    Background

  • 2002 to present: member of the Board of Directors of the Russian Chamber of Commerce and Industry; member of the Government Commission on Science and Innovation Policy and a member of the Presidential Council on Science and High Technologies

  • 2001 to present: member of the Bureau of the Board of Directors of the Russian Union of Industrialists and Entrepreneurs, Head of the Union’s Committee on industrial policy

  • 1990 – 1993: Chairman of the Moscow City Committee on Science and Engineering

  • 1987 – 1990: Head of the Central Administration on Science and Engineering of the Moscow City Executive Committee

  • 1982 – 1987: Chief Engineer and subsequently first Deputy General Director of the Polymerbyt Scientific and Production Association

  • 1975 – 1982: Deputy Director and Chief Engineer at the Karacharovo Plastics Works

    Education

  • 1980: The School of Economics of the Moscow State University

  • 1973: D. Mendeleev Moscow Chemical Engineering Institute

Vladimir Evtushenkov


Russian economic development in 2006
Russian Economic Development in 2006

Real GDP Growth, %

Real Disposable Income Growth (%)and Consumer Loans ($ bln)

Central Bank Reserves ($ bln)

and Inflation (%)

Retail Markets

and Services Growth (%)

Benign macroeconomic environment for Sistema businesses


Operational results
Operational Results

Career in Sistema

  • 2006 to present: President; Member of the board of Sistema, Sistema Telecom, Sitronics, Sistema-Hals, Sistema Mass Media

  • 2003 – 2006: General Director of Concern Sitronics

  • 1998 – 2003: President of Sistema Telecom

  • 1995 – 1998: Vice President of Sistema

  • 1998 and 2002-2003: Chairman of the Board, MTS

    Background

  • 1991 – 1993 General Director of Insurance Company Leader

  • 1987 – 1991: Senior officer at the Main Headquarters of the Navy

    Education

  • 1987: Grechko Naval Academy

  • 1978: Sevastopol Naval Engineering Academy

Alexander Goncharuk


  • Consolidated revenuesup 43% year on year to $ 10.9 billion

  • OIBDAup 36% year on year to $4.0 billion

  • Net incomeup 52% year on year to $813 million

  • Total consolidated assetsup 54% year on year to $20.1 billion

  • Earnings per shareup 67% year on year to $94.4

  • Successful IPOs and listing on London Stock Exchange:

    • $1,060 million raised by Comstar UTS in February 2006

    • $432 million raised by Sistema Hals in November 2006

  • Acquisition of 25%+1 stake in Svyazinvest for $1.3 billion in December 2006

Highlights of 2006

Solid financial results along with successful investment operations


Sistema consolidated financials us gaap
Sistema Consolidated Financials (US GAAP)

Revenues ($ bln)

OIBDA ($ bln)

CAGR 26%

CAGR 38%

+36%

+43%

Net Income ($ bln)

Consolidated Debt ($ bln)

B

BB -

BB -

S&P Credit Rating

CAGR 50%

+52%

Accelerated growth while maintaining sound financial position


Top management appointments in 2006
Top Management Appointments in 2006

Sistema

Alexander Goncharuk

President

February 2006

Anton Abugov

1st Vice-presidentHead of Strategy and Development

August 2006

Denis Muratov

Vice presidentHead of Innovations

February 2006

Telecom

Technology

Banking

Retail

Mass Media

Leonid Melamed

MTS

April 2006

Evgeny Utkin

Sitronics

February 2006

Sergey Zaytsev

MBRD

July 2006

Maxim Yentyakov

Detsky Mir

July 2006

Michael Dounaev

SMM

January 2006

Key management appointments at Sistema and its major businesses were made in 2006


Unjustified discount to net asset value
Unjustified Discount to Net Asset Value

$ 19.5bn

2.1

-0.9**

Non-listed assets*(11%)

18.6

28% discount,

or $5.2 bn

17.4

Publicly traded assets***(89%)

13.3

Portfolio Capitalisation

Corporate Net Debt

NAV

Sistema MCap ***

* Sistema management valuation, **as of March 31 2007, *** Closing prices on 31.05.2007

Sistema stock is traded with 28% discount to Net Asset Value making it deeply undervalued


Sistema portfolio

Retail

Telecommunications

Telecommunications

Mass Media

Tourism

Banking

Sistema Portfolio

Public companies

Non-public businesses

Others

Long Distance

Mobile

Fixed Line

CDMA

Oil & Petrochemicals

Technology

Real Estate

Healthcare

Radars and Aerospace

Diversified portfolio guaranteeing continued growth over the long term


Major Developments in Public Businesses in 2006 – 2007

  • Revenue and OIBDA growth by 28%; OIBDA margin exceeded Vimpelcom’s (50.6% vs. 50.4%)

  • Customer base grew by 25% and reached 74 mln

  • Mr. Leonid Melamed appointed CEO of MTS; re-branding and management strengthening led to MCap exceeding $20 bln

  • Revenue growth by 23%, OIBDA by 2%

  • Broadband client base increased by 67%

  • $1.06 bln raised during IPO on LSE in February 2006

  • 25% + 1 stock of Svyazinvest acquired for $1.3 bln

  • Revenue growth by 204%, OIBDA by 500%

  • Project development pipeline grew by 20%

  • IPO at London Stock Exchange, post-money valuation over $2 bln

  • Sistema-Hals portfolio valuation by Cushman & Wakefield as of Jan 01, 2007 was 35% up vs. that as of June 30, 2006

  • Revenue growth by 68%, OIBDA by 11%

  • External (outside Sistema group) sales share reached 78%

  • Acquired 51% of Intracom Telecom (Greece)

  • Established a strategic alliance with Cisco and STMicroelectronics (0.18µ)


Major developments in fast growing private businesses
Major Developments in Fast Growing Private Businesses

  • Revenue growth by 90%, OIBDA by 71%

  • Explosive growth of retail business: the portfolio increased 5 times to over $350 mln; the total retail market doubled

  • Reached Top30 by total assets and Top20 in the most rapidly growing car loans and mortgages sectors

  • Revenue growth by 61%, OIBDA by 75%

  • Total sales area exceeded 100,000 square meters, 29 new stores opened bringing a number of stores to 65

  • A desirable tenant for middle and upper middle class shopping centers

  • Revenue growth by 106%, OIBDA by 125%

  • Stream-TV is the largest pay-TV operator in Russia with 15% market share. Presence in 37 cities, 3.5 million households passed

  • Mobile TV (DVBH): pilot project in Moscow; acquisition of licenses in 17 largest cities of Russia

  • Maxima advertising agency in top10 media buyers in Russia; presence in Ukraine, Belarus, Kazakhstan

  • Revenue growth by 176%, OIBDA – 8 times

  • Significant market position strengthening after acquisition of the Cosmos Hotel and Riviera and Skyway tour operators (Intourist is #1 tour operator in RF)

    • 99 retail outlets (12 in Moscow, 23 in St-Pete, 33 subsidiaries in regions)

    • 2,300 hotel rooms under management


Sistema value added to businesses in 2006
Sistema Value Added to Businesses in 2006

  • New KPIs approach and business specific KPIs developed

  • Management compensation linked to KPIs

  • Svyazinvest

  • Intracom Telecom

  • UCN Cable TV

  • Sale of Rosno (Sistema’s own M&A activity)

KPIs

M&A Support

GovernmentRelations

Access to capital

  • Sistema invested over $5 bln in 2006 in its business lines

  • Global satellite navigation system GLONASS

  • The Center for Management in Crisis Situations for the Ministry of Emergencies

StrategicPartnerships

ManagementSupport

  • Strengthening mgmt teams of

  • Telecoms

  • Rosno

  • Retail

  • ST Microelectronics

  • Cisco

Sistema holding structure proved beneficial to our portfolio businesses


Sistema management s top priority
Sistema Management’s Top Priority

  • We have streamlined and segmented our portfolio to focus capital and management resources on the most value adding businesses

  • Sistema management sees as its top priority achieving fair valuation of Sistema shares by the market

  • We will grow the share of non public businesses in our portfolio as well as improve our management approach including new KPIs and incentive principles


Finance

Career in Sistema

  • 2002 to present: SeniorVice President and Head of the Finance and Investment Complex; Member of the Board of the following companies: MTS, Sistema Telecom, MBRD, East-West United Bank, Sistema-Hals, Detsky Mir Center

  • 1998 – 2002: Vice President of MTS

  • 1996 – 1997: Vice President and First Vice President at Sistema-Invest

  • 1994 – 1996: various positions at the Property Complex

    Background

  • 1992 – 1994: researcher at the Institute of Mechanics Problems (IMP) of the Russian Academy of Sciences

    Education

  • 1992: Moscow Physics and Engineering Institute

Alexei Buyanov


Consolidated

US GAAP, $ mln

2003

2004

2005

2006

Profit & Loss

Revenues

3 760

5 711

7 594

10 863

Growth (y-o-y)

51,9%

32,9%

43,1%

Depreciation and amortisation

-521

-800

-1 024

-1 290

(1)

Operating Income

1 106

1 665

1 934

2733

Growth (y-o-y)

50,5%

16,2%

41,3%

Margin

29.4%

29,2%

25,5%

25,2%

Net Income

387

411

534

813

Growth (y-o-y)

6,2%

29,9%

52,2%

Margin

10.3%

7,2%

7%

7,5%

(2)

OIBDA

1 627

2 465

2958

4 023

Margin

43.3%

43,2%

37%

37%

Balance Sheet

Total Assets

6 840

8 779

13091

20131

Total Debt

2 685

3 065

4371

6874

Net Debt

2 402

2 561

3888

6330

Shareholders’ Equity

989

1 436

3234

4521

Cash Flow

Cashflow from Operations

935

1 904

1 793

2116

Cashflow from Investments

-2 273

-2 064

-4 276

-5372

Cashflow from Financing

1 464

381

2 462

3 317

Notes: (1) Operating Income is calculated as revenues less operating costs, plus income from equity investees and net gain or loss on sale of subsidiaries. (2) OIBDA represents the sum of operating income, depreciation and amortisation

Financial Highlights

Sistema’s financial performance consistently improving year after year


Segmental analysis

55,9%

Telecommunications

7476

3576

47,8%

3 543

7,9%

Technology

1 611

172,5

10,7%

505

-1,7%

Insurance

639

46,4

7,3%

(112)

2,7%

Banking

228

37,2

16,3%

163

23,7%

Other Businesses (inc. corporate)

1 372

468,2

34,1%

1 502

88,5%

AGGREGATE TOTAL

11 326

4301

38,0%

5 601

Intra-segment eliminations

-328

-184

11,5%

729

100%

Consolidated TOTAL

10862,8

4 023,5

37,0%

6 330

Incumbent -

Alternative -

fixed

fixed 5,7%

(MGTS)

9,3%

Wireless

(MTS)

85%

Segmental Analysis

Segment ($ mln) Revenue OIBDA % Margin Net Debt Net Debt, %

(Cash)

2006 Revenue Breakdown – Telecom Contribution

12%

2%

6%

Telecom

Technology

Insurance

Banking

14%

Other

66%

Telecom business is the key revenue driver


Diversification
Diversification

2006

2005

Others

Others

27%

35%

Revenue

Telecom

65%

Telecom

73%

Others

Others

13%

21%

OIBDA

Telecom

Telecom

79%

87%

Others

26%

Others

37%

Assets

Telecom

63%

Telecom

74%

Contribution of non-telecommunication segment continues to increase


Capital allocation

Business line

Uses of Cash

Sources of Cash

Sistema's Holdco Cash Impact

CapEx

M&A

Operating FCF

Access to Third Party Capital

MTS

Moderate

Possible

Positive

Established

+

Comstar

Moderate

Yes

Positive

Established

+

MGTS

TariffDriven

None

Positive

Established

+

Sitronics

Moderate

Yes

Break-even

Established

+/-

Sistema-Hals

High

Yes

Break-even

Established

+/-

MBRD

Moderate

Possible

Break-even

Established

+/-

Intourist

High

Yes

Break-even

Established

+/-

Detsky Mir

High

Yes

Negative

Established

-

Mass Media

High

Yes

Negative

None

-

Radar and Aerospace

High

Yes

Negative

None

-

Healthcare

High

Yes

Negative

None

-

Bashkir oil

None

Yes

Positive

Established

+

Capital Allocation

Sistema is focused on growing non public assets


Credit Ratings

Agency

Date

Rating

Outlook

S&P BB- Positive 01/02/2007

Fitch Ratings B+ Positive 28/04/2006

Moody’s B1 Stable 19/11/2003

S&P BB- Positive 01/02/2007

Moody’s Ba3 Positive 10/05/2007

S&P BB- Positive 01/02/2007

Moody’s Ba3 Stable 19/01/2006

S&P BB- Positive 01/02/2007

Moody’s Ba3 Stable 10/05/2007

Fitch B- Stable 14/02/2006

Moody’s B3 Stable 16/02/2006

Fitch B Positive 19/02/2007

Moody’s B1 Stable 14/12/2004

Sistema

MTS

MGTS

Comstar

Sitronics

MBRD


2006

2005

2004

2003

Telecommunications

3908,9

3076,4

2138,7

1845,8

Technology

505,3

96,5

27,5

33,8

Insurance

1,3

1,0

0,5

3,2

Banking

399,1

150,0

7,3

-

Mass Media

17,7

13,8

-

-

Real Estate

359,7

39,0

-

-

Retail

90,9

45,5

-

-

Corporate and Other

1590,6

948,4

890,9

802,6

Total

6873,6

4370,6

3064,9

2685,4

Others

20%

Telecommunications

Corporate

57%

23%

Debt Level

$ mln, US GAAP

Loans vs Bonds

Debt structure

Public

Non-public

45%

55%

Debt portfolio is allocated among all divisions


OIBDA/Interest Expense

Total Debt/OIBDA

18,0x

11,5x

11,5x

1,67x

1,64x

1,71x

8,2x

1,46x

6,9x

1,20x

2002

2003

2004

2005

2006

2006

2002

2003

2004

2005

Strong Financial Position

  • Strong liquidity position

  • Prudent approach to leverage

  • Easy access and well established reputation in capital markets

  • Credit profile confirmed by rating agencies

  • Maturity profile matching the company’s investment cycle

Strong financial position confirmed by solid ratings


Portfolio management indicators

31%

27%

24%

34%

23%

23%

2004

2005

2006

2004

2005

2006

Portfolio Management Indicators

Return on Total Assets(1)

Return on Equity(2)

36%

  • Notes:

  • Calculated as OIBDA / Average Total Assets

  • Calculated as Net Income / Average Book Equity

Efficient use of assets and good measure of corporate profitability


Sistema strategy
Sistema Strategy

Career in Sistema

  • 2006: First Vice president and Head of the Strategy and Development Group; a Member of the Board of Sitronics, Svyazinvest, Sky Link

    Background

  • 2003 – 2006: Managing Director at Rosbank

  • 1997 – 2006: Strategy adviser to Tatar-American Investments and Finance Group (TAIF)

  • 1999: Adviser to RAO UES

  • 1998 – 2002: Director of Corporate Finance at UFG

    Education

  • 1998: National Economy Academy under the Government of the Russian Federation

Anton Abugov


Sistema strategy highlights
Sistema Strategy Highlights

  • Invest in our fast-growing non-public businesses

  • Acquire more non-public assets in the industries we are already present in

  • Take businessespublic only after extracting maximum value for existing shareholders

  • Become a strategic partner of the State: supplier of goods and services and co-investor in PPP projects

  • Explore technology and services convergence in telecommunications


Sistema management approach
Sistema Management Approach

  • Portfolio segmentation by asset type: public/private, controlling/minority holdings, start-up/rapidly growing/mature

  • Investmentprinciples, a management model and incentives for the management tailored to different types of assets

  • Set of customized KPIs for all Business Lines

    • Simplicity and measurability with only 5-7 indicators

    • Maximizing the shareholder value creation

    • Benchmarking to market and competitors

  • Recruitment of the best managers and specialists available in the market;stock option motivation schemes

    • All monetary incentives linked to meeting the KPIs

    • Phantom stock options on Sistema and our subsidiaries’ shares as well as deferred stock bonus


Customised kpis for sistema businesses part 1
Customised KPIs for Sistema businesses (part 1)

Return on capital becomes the priority indicator for Sistema


Ustomised kpis for sistema businesses part 2
Сustomised KPIs for Sistema businesses (part 2)

Businesses must improve their competitive positions and outperform competitors rather than just meet business plan targets


New reward incentives scheme
New Reward & Incentives Scheme

SHORT-TERM MOTIVATION INSTRUMENTS

LONG-TERM MOTIVATION INSTRUMENTS

Annual

Cash Bonus

Sistema

Phantom Stock Option

Sistema

Stock

Bonus

Sistema Subsidiaries Stock Option

  • Linked to individual KPIs

  • The right to receive cash deferred by 3 years conditioned to Sistema performance

  • Stock bonus deferred by 3 years conditioned to Sistema performance

  • The right to acquire shares of receive cash deferred by 3 years conditioned to business long-term KPIs

Sistema has adopted a new motivation system for all managers through the entire Corporation aimed at creating strong incentives to grow the shareholder value


Sistema portfolio transformation strategic goal
Sistema Portfolio Transformation (Strategic Goal)

Current Portfolio

Fast Growth of Non-listed Companies

“А Big Deal”

(e.g. petrochemicals)

Proactive search and investments in new non-listed opportunities

2007 – 2009

2007 – 2010 г.

Big Deal

Public Companies

(including Bashkirian Oil)

Public Companies

(not inclusive Oil)

25%

New Private

30%

75%

55%

15%

90%

Public 45%

15%

15%

10%

10%

15%

Non-Listed

(from current Portfolio)

Public Bashkirian Oil

Non-Listed

(from current Portfolio)

Sistema will strive to raise the non-listed companies share in our Portfolio to make the stock more attractive. We will invest in our current growth opportunities with potential new investments closer to 2010


Waves of growth
Waves of Growth

IV

Radar & Aerospace

Travel

Health Care

Petrochemicals

III

Banking

Retail

Mass Media

(to follow)

II

Sitronics

Sisitema Hals

(Round Table 2)

I

Telecommunications

(Round Table 1)

1995

2003

2005

2007

Sistema’s diversified portfolio ensures steady growth of the Corporation. We will give some of the highlights of the 4th wave further in this presentation


Radars and aerospace crtis results and outlook
Radars and Aerospace: CRTIS Results and Outlook

Revenues and OIBDA ($ mln)

Major Developments in 2006

  • CRTIS market segment share up from 10,5% to 16%**.

  • Government-ordered defense R&Daccounted for $72 mln.

  • Started implementation of the The Center for Management in Crisis Situations project as a main contractor of the Ministry of Emergencies (together with Sitronics)

  • Expanded into civil and civil-defense B2G areas (contracts with Ministries and Federal Agencies other than Defense)

+92%

B2G Contract Portfolio to 2015 ($ mln)*

Market Trends, Positioning and Strategic Outlook

  • Monopoly supplier of strategic missile defense solutions (radar technology) in the $750 mln market segment of defense information, communication and navigation systems (grows at 10-14% per year**)

  • Capitalize on over than 60 years of defense R&D in the area of radar and aerospace technologies

  • Expand expertise in the area of large-scale federal projects like GLONASS

  • Invest in developing leading edge products and solutions.

* 2007-2015 State Arms DevelopmentProgram

**CRTIS estimates

CRTIS will continue capitalizing on the R&D expertise, implementing complex B2G projects

and focusing on the leading edge R&D for new markets


Travel intourist results and outlook
Travel: Intourist Results and Outlook

Revenues and OIBDA ($ mln)

Major Developments in 2006

  • Significant market position strengthening after acquisition of the Cosmos Hotel and Riviera and Skyway tour operators (Intourist is top-1 tour operator in Russia)

    • 133retail outlets (102 in ownership, 31 franchisees)

    • 2,300 hotel rooms under management

  • One of the largest air charter consolidators (over 100,000 passengers in 2006)

+176%

Number of Tourists Serviced (‘000)(packaged tours)

Market Trends, Positioning and Strategic Outlook

  • Vertical integration strategy in rapidly growing Outbound segment

    • Projected market growth rate >15% (5% of Russians travel abroad vs. 40% in Germany)

    • 3% current market share with the target to multiply it several times by 2010

    • Aggressive capturing the market by building own retail chain selling up to 50% of own product

    • Travel product value proposition via own hotel management in Russia and abroad

    • Alliance with an air charter company to control the fleet

  • Retaining the leadership position on the Inbound market

Intourist became top 1 travel company in Russia in 2006 and has ambitious strategic plans to multiply its market share in several years on the rapidly growing Outbound segment


Health care medsi results and outlook
Health Care: Medsi Results and Outlook

Revenues and OIBDA ($ mln)

Major Developments in 2006

  • A new holding company Medsi Group created for Sistema’s health care assets

  • New clinics format developed

  • Several constructions started

  • MedsiII clinic opened in 2005 is recognized by major insurance companies as the best Moscow clinic for children

+64%

Market Trends, Positioning and Strategic Outlook

  • Market ($5-8 bln, with Moscow accounting for 35%) grows more than 20% year-on-year with Top 3largest clinic operators owning less than 3% of the market

  • Development of a leading private healthcare services company in Russia with best comprehensive medical care and largest chain of private clinics

  • National healthcare services brand creation

  • Strategic partnership with an expert for hospital networkdevelopment

  • Acquisition of well-run competitors and consolidation of the market

Services (‘000) and patients (‘000)

Medsi is uniquely positioned to take advantage of the paid healthcare market growth


Petrochemicals bashkirian oil assets
Petrochemicals: Bashkirian Oil Assets

Sistema’s Bashkirian Oil Assets

Strategic Outlook

Oil Business

  • A strategic asset, generating satisfactory returns

  • Looking for opportunities to increase our stakes up to controlling to create a vertically integrated oil company

  • Using our business restructuring expertise to maximize shareholder value

    Opportunity in Petrochemicals

  • Strengthening of cooperation with Nizhnekamskneftekhim (current supplier of ethanol for Ufaorgsintez)

  • Potential alliance with other players and creation of a leader in petrochemicals in Russia - in a technologically advanced sphere where cash rich oil giants are reluctant to invest at the moment

Oil and Petrochemicals Industries in Russia

  • Nearly half of Russian oil production was exported in 2006 (233 mln tons of 480 produced)

  • Leading Oil producers see petrochemicals as their second priority as crude oil prices stay high

  • Russian demand for petrochemical products (synthetic rubber, polyethylene and polypropylene ect.) is growing at 10% pa (official reporting)

Financial investment with an option to develop a leader in technologically advanced sphere of petrochemicals in Russia


Sistema as a partner of the state
Sistema as a partner of the State

Examples of current and potential projects

Increasing government spending and State investment programs present additional business opportunities for Sistema businesses


Contacts
Contacts

Investor Relations

tel. +7 (495) 629 2741

www.sistema.com

[email protected]


ad