Segezha Group announces FY 2020 IFRS financial results

Segezha Group, a subsidiary of Sistema PJSFC and a leading Russian vertically integrated holding company in the forest industry performing a full cycle of operations from logging to advanced wood processing, announces its audited consolidated financial results prepared in accordance with International Financial Reporting Standards (IFRS) for 2020.

Revenue grew by 17.9% YoY to RUB 69.0 bn. OIBDA grew by 24.5% YoY to RUB 17.5 bn. The OIBDA margin was 25.3%, up 1.3 p.p. YoY. Net loss for the reporting period amounted to RUB 1.3 bn.

Mikhail Shamolin, President and Chairman of the Management Board of Segezha Group, said:

“In 2020, the Group continued to execute its investment programme. Capex on investment projects in 2020 totalled RUB 15.3 bn, while we maintained a comfortable net debt/OIBDA ratio of 2.8x. The Group’s investment strategy continues to focus on increasing production of high-value-added products, as well as enhancing operational efficiency, selective acquisitions of assets where we see the potential to add value to Segezha Group, and increasing our allowable cut. In 2020, we introduced the SAP S/4HANA platform at Group enterprises, a key element in the Company’s digital transformation that is expected to increase Segezha Group’s overall operational efficiency and competitiveness. At the start of 2021, Segezha Group became the first Russian manufacturer of CLT panels, an innovative building material for the Russian market that makes it possible to construct high-rise buildings out of wood. Our advantageous production costs allow us to supply CLT panels at competitive prices to both the European and Russian markets.

Increasing our own wood resources remains one of our key strategic priorities as Segezha Group’s wood consumption continues to grow. In 2020, the Group increased its allowable cut from 7.8 million m³ to 8.1 million m³. As a result, logging volumes rose by 9.5% YoY to 5.4 million m³. The Company’s own wood resources accounted for 80.2% of the total amount logged (69.5% in 2019). This growth was possible thanks to timely investments into our fleet of harvesters and haulers.”