Sistema PJSFC: Sistema increases stake in Ozon

Sistema PJSFC (SSA) 
Sistema PJSFC: Sistema increases stake in Ozon 
 
26-March-2020 / 20:00 MSK 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            Sistema increases stake in Ozon 
 
       Moscow, 26 March 2020 - Sistema PJSFC (hereinafter, "Sistema" or "the 
  Corporation", together with its subsidiaries, "the Group) (LSE: SSA, MOEX: 
AFKS), a publicly traded diversified Russian holding company, announces that 
it has increased its direct shareholding in Ozon Holdings Limited ("Ozon" or 
"the Company"), a leading Russian multi-category online retailer, from 21.9% 
     to 31.3% as a result of conversion of the convertible loans provided in 
  2019.[1] Sistema Group's total shareholding in Ozon, including the 11.699% 
    stake that Sistema controls via its venture capital fund Sistema_VC, has 
                         therefore reached 42.999%. 
 
         The investments have been predominantly used by Ozon to develop its 
 logistical infrastructure. The Company has more than doubled its fulfilment 
        capacity to almost 200,000 sqm and has invested significantly in the 
 expansion of last-mile delivery infrastructure. As of the end of 2019, Ozon 
 owned the largest network of parcel lockers in Russia with a total of 6,897 
      locations. Together with third party parcel lockers and pickup points, 
   Ozon's total pickup network grew threefold last year to 16,651 locations. 
 
    In 2019, Ozon's product assortment increased threefold to over 5mn Stock 
        Keeping Units (SKUs). Over 70% of the assortment is generated by the 
   company's marketplace sellers. As of the end of 2019, approximately 6,500 
   companies were actively using Ozon as a platform for selling their goods, 
                         with another 15,000 in the onboarding process. 
 
      This investment in infrastructure, the parcel lockers network, product 
 assortment expansion and the development of the marketplace enabled Ozon to 
     increase its growth rates in 2019 and boost its Gross Merchandise Value 
                 (GMV, net of returns) by 93% to RUB 80.7bn (including VAT). 
 
      In 2020, the Company plans to continue investing in the development of 
  fulfilment centres, the delivery network and IT systems. For this purpose, 
  in Q1 2020 Sistema and Baring Vostok funds provided Ozon with financing in 
     the form of convertible loans for the total amount of RUB 6.0bn, out of 
                         which Sistema provided RUB 3bn. 
 
                      Alexey Katkov, Managing Partner at Sistema, commented, 
 
"_We are satisfied with the unprecedented business growth rates demonstrated 
    by Ozon in 2019. Expansion of the _assortment, active development of the 
  marketplace, the enhancement of delivery channels and growth of the number 
      of loyal customers made it possible for Ozon to strengthen its leading 
      position in the Russian e-commerce market. Funding provided by the key 
   shareholders will enable the Company to maintain its _high growth pace in 
                         2020 and to continue increasing its market share_." 
 
            *** 
 
      Sistema PJSFC is a Russian publicly-traded diversified holding company 
    serving over 150 million customers in the sectors of telecommunications, 
      high technology, banking, retail, timber processing, agriculture, real 
estate, tourism and healthcare. The company was founded in 1993. Its revenue 
   in 2018 reached RUB 773.9bn; its total assets equalled RUB 1.5tn as of 31 
    December 2018. Sistema's global depositary receipts are listed under the 
    symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are 
                listed under the "AFKS" ticker on the Moscow Stock Exchange. 
 
        For further information, please visit www.sistema.ru [1] or contact: 
 
       Investor Relations             Press Service 
 
         Nikolai Minashin Sergey Kopytov 
 
Phone: [phone] Phone: [phone] 
 
    [e-mail]        [e-mail] 
 
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[1] In 2019 Ozon's largest shareholders, Sistema and Baring Vostok funds, 
provided convertible loans to the Company to support its aggressive market 
capture strategy. The total amount of loans provided by Sistema amounted to 
RUB 9.2bn. 
 
ISIN:          US48122U2042 
Category Code: MSCM 
TIDM:          SSA 
LEI Code:      213800JSZ2UUK4QQK694 
Sequence No.:  54969 
EQS News ID:   1008619 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f1efd490ef237092d4033512d119fe99&application_id=1008619&site_id=vwd&application_name=news 
 

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March 26, 2020 13:00 ET (17:00 GMT)