Page 188 - RusRPTSept21

monetization), although costs could be higher this year.
Sistema’s corporate-center net financial liabilities up 7.2% y/y, 4.8% q/q to RUB204.4bn. The monetization of assets – namely the sale of a stake in Binnopharm Group, the proceeds from the MTS buyback and the exercising of Segezha’s green shoe option – were not enough to offset investments, including Sistema’s participation in Etalon’s SPO and the buying out of Ristango’s minorities, as well as interest and SG&A expenses. The company continues to see its current debt levels as comfortable, as increasing leverage has been accompanied by robust growth in the value of Sistema’s portfolio assets. The company’s debt could increase further if it sees attractive M&A opportunities. The company also does not plan to monetize its stakes in OZON and Segezha for now, and it sees that these companies could create additional value for shareholders.
Binnopharm, Medsi and Steppe remain the IPO candidates. The company reiterated that these three assets are ready to go public, and Sistema could decide on this next year.
Sistema opportunistic about new areas of investment. The company confirmed that it is not involved in the corporate conflict at Russian cosmetics manufacturer Natura Siberica. That said, Sistema is generally open to any opportunity, and the company could discuss a potential investment in Natura Siberica in the future. In terms of its current assets, Sistema plans to continue to invest in Cosmos Hotel Group and Binnopharm Group, as it aims to build them into the biggest players in their respective industries.
HeadHunter (HHR) management maintains its upbeat outlook, and sees strong labour market trends and ample opportunities for monetisation.
Monetisation. Management is pleased with the results of implementation of new subscription monetisation model. HHR smoothly migrated all clients this year, without churn. Now the plan is to get the actual realised price (RUB40 per contact) closer to target (RUB60 per contact). Management sees the biggest future opportunity in variable pricing by profession: to reduce prices for blue collars and accelerate adoption, and to increase prices for white collars to link them closer to the salary level.
Longer-term growth. Current growth is partly unsustainable, according
188 RUSSIA Country Report September 2021 www.intellinews.com