Investor Presentaiton
4
Conservative Financial Policy
and Stable Leverage
Comments
Commitment to a conservative financial policy
Fully RUB denominated debt to match RUB revenue
Relationships with multiple Russian and international banks
Leverage 1,2 as of 31-December-2017 is 1.0x of vs. 4.0x average covenant
level across the loan portfolio
Weighted average interest rate³ - 10.3% (as of 31 December 2017)
Incl. RUB 3bn outstanding bond with fixed annual coupon rate of
9.5 p.p. and a three-year put option
Predominantly fixed interest rates across the portfolio
No contingent off-balance sheet liabilities
31-December-17 Debt Repayment Schedule
(RUBm)
4 635
2018
1 958
2019
6 689
2020
309
2021
DETSKY MIR
RETAIL
CHAIN
Leverage 1,2 dynamics
☐
Detsky Mir provided CJSC "DM-Finance" (Sistema's subsidiary) with the
loan to buy out 25% stake from Sberbank in 2013. Most of the loan
(RUB4,875m including interest) was repaid in January/February 2016
RUB1.1 bn fully repaid on February 27, 2017
"
Total debt-RUB 13.6bn,
Net Debt - RUB 10.4bn as of 31-December-2017
1,8x
1,7x
1,4x
1,0x
2013
0,6x
2014
2015
2016
Adjusted Net Debt¹/ Adjusted EBITDA²
Weighted average interest rate³ dynamics (%)
2017
12,0%
11,2%
10,5%
10,3%
10,3%
31-Dec-16
31-Mar-17
30-Jun-17
30-Sep-17
31-Dec-17
Source: Company data
Note: The Company's consolidated financial statements for 2013 under US GAAP and 2014-2017 under IFRS. For the line items and the years presented, there was no difference between the calculation of numbers or presentation under GAAP vs IFRS.
1 Adjusted Net debt is calculated as total borrowings less cash and cash equivalent / adjusted for the loan issued to CJSC "DM Finance" (Sistema's subsidiary) on 3 July 2013
2 Adj. EBITDA is calculated as profit for the year before income tax, FX gain/loss, gain on acquisition of controlling interest in associate, impairment of goodwill, net finance expense, D&A, adjusted for the one-off effect relating to disposal of the Yakimanka
building in 2014, as well as share-based compensation and cash bonuses under the LTI program
3 Calculated on the basis of the weighted interest rates applying to the specified indebtedness (weighted by the principal amount of such indebtedness) as of the dates specified.
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