Joint-Stock Financial Corporation Sistema
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Businesses

The core assets of Sistema are concentrated in dynamically developing sectors of the economy.

The corporation provides precise quantitative and qualitative targets and goals for each business area and for each employee. The use of key performance indicators (KPIs) provides personnel with a clearcut understanding of what the corporation expects of them. Sistema undertakes constant monitoring of the performance of the corporation as a whole, as well as the activity of each business area. 

For its business units, Sistema uses a measure of performance called the Criteria Base. This system consists of key efficiency indicators that measure the performance of each business unit. These indicators allow the corporation to evaluate how each business unit is progressing toward meeting its targets and goals. These indicators provide detailed measures of the efficiency and growth dynamic in each business area. 

Transparency in ownership structure and governance is a foundation of our business.

The table below outlines Sistema's participation in the capital of its largest subsidiary and affiliated structures and its voting interests as of January 31, 2008.

Business Unit «Telecommunication Assets»

Telecommunications

Telecommunications

The business direction represents the largest telecommunication group which includes more than 50 companies serving about 100 million of subscribers.
Media

Media

Sistema develops a business direction in the field of mass media through Open Society «Sistema Mass Media» («SMM») which is the leading Russian company in the market of paid TV.

Sistema Mass Media Corporate Site

Entertainment

Entertainment

Sistema has shares of «Russian World Studios» («RWS»). «RWS» is the leader of the market of services of movie production and one of the largest independent producer companies in Russia.

RWS Corporate Site

Business Unit «Consumer Assets»

Real Estate

Real Estate

The business direction «Real estate» is presented in Sistema as the Open Society «Sistema-Hals». The company is one of the most long-term investments of the corporation.

Sistema-Hals Corporate Site

Financial Services

Financial Services

Financial and bank business of Sistema is concentrated mainly in the Moscow Bank of Reconstruction and Development («MBRD»).

MBRD Corporate Site

Travel

Travel

The business direction Tourism is presented by Sistema's affiliated company «Intourist». «Intourist» is the largest travel agency in Russia.

Intourist Corporate Site

Trade

Trade

The Retail segment of Sistema JSFC comprises Detsky Mir, the largest children’s goods retail stores network in Russia.

Detsky Mir Corporate Site

Healthcare

Healthcare

Sistema owns the assets of «Medsi». «Medsi» is the versatile medical centre which is carrying out clinical diagnostics and treatment of patients in out-patient conditions.

Medsi Corporate Site

Retail

Retail

In 2007 Sistema management made the decision to create within the limits of «MTS» company «TS Retail» for the purpose of convergent services' sale.
Sistema - Non-government retirement fund

Sistema - Non-government retirement fund

Today non-government retirement coverage and mandatory pension insurance are more than just an element of Corporation’s social responsibility; tomorrow this tool will become an attractive form of investment.
  

Business Unit «Technology and Industry»

Technology

Technology

The business direction «High technologies» is presented in Sistema by «Sitronics». It is the largest hi-tech company in the Eastern Europe.

Sitronics Corporate Site

Radar and Space

Radar and Space

The direction «Radar and Space» includes «Concern RTI Systems» and its affiliated businesses. The basic customer of the business production is the Ministry of Defence of the Russian Federation.

RTI Systems Corporate Site

Pharmaceuticals

Pharmaceuticals

Sistema owns assets in the field of pharmaceutics and biotechnologies. «Binnopharm» company manages the assets.
Innovation and Venture Capital

Innovation and Venture Capital

Complex of a science and innovations was created for working out of Sistema scientific and technical and innovative policy at corporate level. It is responsible for the creation of the Corporation innovative infrastructure.

Business Unit "Oil and Energy Group"

Oil production

Oil production

The main oil-producing company of the Bashkir Oil and Energy Group is JSC ANK Bashneft.
Oil refining

Oil refining

Sistema refining assets include JSC Ufaneftechim, JSC Novoil, JSC Ufaorgsintez and JSC Ufimsky NPZ.
Downstream

Downstream

JSC Bashkirnefteproduct consolidates 317 fuel stations located in Republic of Bashkortostan.
Non-core assets

Non-core assets

Companies of Bashkir Oil and Energy Group own a number of non-core assets in the transport, energy, telecommunications and hotel businesses. The main non-core asset is JSC “Bahskirenergo”.
 

Raising money in IPO (NYSE)

MTS — $323 million (June 2000)

Shares and Bonds

Raising money in IPO (LSE)

Sitronix — $402 million (February 2007)

Sistema-Hals — $432 million (November 2007)

Komstar-OTS — $1.06bn (February 2006)

Sistema — $1.35bn (February 2005)

Sistema's Revenue Structure

The image of Sistema's main businesses revenue.
   
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