Sistema (Public Joint-Stock Financial Corporation Sistema) - Logotype

Sistema (Public Joint-Stock Financial Corporation Sistema)

Sistema PJSFC is a publicly-traded diversified holding company, established in 1993m, and today - one of the largest private investors in the Russian economy. Its portfolio companies are serving over 150 million customers in such sectors as telecommunications, high technology, financial services, retail, paper and packaging, agriculture, real estate, pharmaceuticals, hospitality and healthcare services.
As a responsible investor Sistema focuses on the governance, strategic management and operational efficiency of its’s portfolio companies by means of restructuring of acquired assets, attracting industry and financial partners to enhance expertise, performance, reduce financial and ESG risks.
Sistema’s revenue in 2018 was RUB 777.4 bn; total assets equalled RUB 1.5 trn as of 31 December 2018.

 

  • Size: Large
  • Type: Private company
  • Listed: Listed
  • Sector: Conglomerates
  • Country: Russian Federation
  • Country Status: Non-OECD / Non-DAC
  • Employees: > 100,000
  • Revenue: 12700000000 USD
  • GRI Community: Not provided
  • Stock listing code: SSA, AFKS

Contact

www: visit
HQ Address: 13 Mokhovaya Street
HQ City: Moscow
Contact person: Dmitry Kolchugin
Email: send email

Share


Reports



Risk

Significant risks at the level of Sistema are those risks that can have a negative impact on its financial stability, shareholder value and reputation, including the state of the global, national and regional economies, political (including geopolitical) and social environment, and legal aspects of the Group’s activities and regulatory requirements (including anti-corruption, labour, environmental and other provisions). All ESG risks are routinely identified, evaluated and managed based on the degree of their impact on the implementation of the Corporation’s overall strategy (top level) and the operating activities of its portfolio companies.

The biggest ESG risks at the Corporation's level are risks related to Sistema's reputation and brand as its crucial intangible assets. In order to mitigate these risks, the Corporation and its portfolio companies have put in place a system of corporate governance and compliance that reduces to minimum the probability of unfavourable events and their impact on capitalisation.

Material ESG risks for the Group's industrial companies are environmental and occupational risks, as well as risks related to the state of the infrastructure and the threat of accidents, which are critical for telecommunications and power grid companies. The evolution of the digital economy and the digitalisation of portfolio companies makes risks related to cybersecurity and personal data protection increasingly relevant, especially for telecom, online services, finance, and e-commerce.

Opportunities

Sistema is an investment platform giving access to unique investment opportunities in the most attractive Russian industries and emerging technologies.

The Corporation is expanding opportunities by establishing funds and raising outside capital, shifting focus of investments towards innovative assets with potential for import substitution and export-oriented projects, investing in building intellectual potential: science and education, advanced research, tech startups, new developments and digitalisation.

The Corporation cooperates with innovation support institutes, creates its own R&D centres, and facilitates the adoption of advanced technologies and organisational innovations in its portfolio companies.

Innovation, digital transformation and new technologies are the focus of the Corporation’s strategy. Sistema developed the digital transformation strategy aimed at a radical increase in the quality of existing business processes and creation of new highly efficient ones through the use of digital technologies. The strategic goal is the full-scale optimisation of the business model of the Corporation and its portfolio companies, which will be based on innovations and modern management practices.

For this purpose the most relevant technologies have been identified for the Corporation’s key assets, testing and adoption of which can increase efficiency, streamline processes, develop innovative products and services for customers, and expand current markets. The key criterion for selecting the most promising technologies for the Corporation is the possibility of testing them at the Group’s largest companies, taking into account their value, on the one hand, and potential risks, on the other hand, for the assets and stakeholders.