Chairman’s statement

We feel confident in the company’s future in light of the current order portfolio and the volume of potential contracts under negotiation.

The financial results of 2018 confirmed the sustainability of the strategy approved by the Board of Directors in 2016. The strategy envisaged growth of HMS’ fundamental value based on both organic business growth and a new dividend policy.

It should be noted, however, that the market is still tough; high-profile clients continue to apply price pressure, which unavoidably affects profitability.

This environment once again underscores HMS’ status as market leader. The Group continues to grow, including based on the freed-up market share of our competitors.

Our revenue grew by 18 percent. We continued the payment of dividends, modernisation of production facilities, and maintained an adequate level of Net debt-to-EBITDA ratio.

We feel confident in the company’s future in light of the current order portfolio and the volume of potential contracts under negotiation.

We will continue to distribute a sufficient portion of our cash inflow among the company’s shareholders, taking into account the need to balance the interests of all capital consumers; financing capital expenditures and working capital, maintaining the Net debt-to-EBITDA ratio in the comfort zone, and dividend payments.

Yours faithfully,
Nikolay Yamburenko