Sistema PJSFC: Ad-Hoc Notice

Ad-Hoc Notice

Moscow, 31 March 2021 - Sistema PJSFC ("Sistema", the "Corporation" or, together with its subsidiaries and affiliates, the "Group") (LSE: SSA, MOEX: AFKS), a Russian publicly traded investment company, announces that Sistema PJSFC, its wholly-owned subsidiary Sistema Finance S.A. and Sistema Telecom Assets LLC have signed a sale and purchase agreement for shares and American depository shares of PJSC MTS ("MTS") as part of the new buyback programme for MTS shares and American depository shares in the amount up to RUB 15.0 bn approved by the Board of Directors of MTS in March 2021 (the "Programme").

During the Programme, which was launched on 30 March 2021 and will run till 31 December 2021, MTS's wholly-owned subsidiary LLC Bastion (the "Purchaser") plans to acquire shares and American depositary shares of MTS (collectively, the "Shares"). Under the agreement, Sistema PJSFC, Sistema Finance S.A. and Sistema Telecom Assets LLC may sell to the Purchaser Shares in the amount calculated based on the number of Shares which have been purchased by the Purchaser from third parties, in proportion to Sistema Group's effective equity stake in MTS (50.0177% as of 30 March 2021).

Sistema Group's effective stake in MTS will therefore not decrease as a result of the Programme and Sistema Group will retain effective control over MTS.

The Purchaser will purchase Shares from Sistema PJSFC, Sistema Finance S.A. and Sistema Telecom Assets LLC based on the weighted average price of Shares at which the Purchaser purchased them from third parties for each calendar month*.

\* Taking into account the price difference in the market value of MTS ordinary shares and American depositary shares.

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Sistema PJSFC is a Russian publicly traded investment company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, e-commerce, timber processing, agriculture, real estate, hospitality and healthcare services. The company was founded in 1993. Its revenue in 2019 reached RUB 656.9bn; its total assets equalled RUB 1.3tn as of 31 December 2019. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com

For further information, please visit www.sistema.com or contact: