Sberbank of Russia (SBER) Earnings Call Transcript & Summary

[Foreign Language] [Presentation]

[Foreign Language] Our highly marginal financial business gives us a solid foundation and opportunities to invest in technological development and nonfinancial businesses. As we are building our ecosystem, we meet virtually all the key nonfinancial needs. We are no longer just the bank. We are transforming into Sber. Three years ago, we told you that our clients would be able to enjoy a wide range of services within Sber's ecosystem. Today, millions of our clients are using news and entertainment content, ordering delivery service from shops and restaurants, riding to any destination in a city by taxi and receiving qualified online advice on medical issues. For our team, the nonfinancial business has become a regular activity alongside the financial one. We have launched a new brand, Sber. It symbolizes the transition from an exclusively financial business to building an ecosystem that is a whole range of offerings that meet the ultimate needs of our clients to the maximum extent possible. We have implemented our technology strategy. Our investment in technology is already bringing in around 20% of our profits. Our level of technological maturity has made it possible to grow the volume of business exponentially, embed IT tools and artificial intelligence into all our processes and more than halve the cost per transaction. Moreover, today, we understand that IT is not only a support function, but also a new business in its own right based on technological products. David Rafalovsky is going to talk about this in more detail, but I will only highlight the most important landmark achievements. The first one is, of course, our digital platform. The platform from start to end is an ongoing R&D effort. A huge number of innovative solutions have been used to build it. For this reason, among others, it has taken a little longer to create it. We are happy with the result and have already started to actively move our existing businesses onto this platform, and we are also creating all new products exclusively on the new platform. By the time a new strategy has been executed, over 80% of our historical IT landscape will be in the target state and all legacy systems will be phased out. This will bring us huge savings. Even the outcomes of Strategy 2020 are showing significant gains from implementing the platform. We have accelerated the speed of new product releases sevenfold, and we're going to launch new products simultaneously via all the channels. We have reduced the amount of new code when creating products by over 50% through the reuse of technological components, and we have ensured Sber's technological independence from software vendors. Another achievement is our cloud infrastructure. We have made a breakthrough in this area, and we have created our proprietary internal cloud on which we provide all our developers with over 90% of the infrastructure. The existing equipment utilization has increased fourfold while purchasing of new equipment has almost halved. For external clients, we have launched a world-class cloud platform hosted by our subsidiary, SberCloud. What sets Sber apart from other providers of Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service is that we have built most of the solutions that we are offering on the market for ourselves, and they have been tested at the most sophisticated level. We will continue to improve them as we are more interested in that than anyone else. We have been the first in the world to bring to the market a whole family of Salute virtual assistance with distinct personalities and behavior. Specifically for the virtual assistance, we have started building smart devices and have already released the first of them: SberBox, a TV set-top box; and SberPortal, a smart display. And finally, we have launched a smart market, a smart app store that is useful not only to users, but also to our partners for whom it will become an entry point into the Sber ecosystem. And all of these has become possible thanks to 2 factors: internal transformation and our unique client base. It is necessary to highlight one of the hard, largest agile transformations in the world at the intersection of technological and organizational transformation where we have changed our approach to product development and created, in fact, a fundamentally new production process. Our team is one of the best on the Russian market, and during the implementation of our previous strategy, we reduced the number of people working in traditional banking business units and increased the share of IT, data science and new economy employees. Having done so, we are controlling our costs. We are improving the efficiency of our processes by embedding artificial intelligence in them. Alexander Vedyakhin is going to talk about that in more detail. All these years, we have been investing heavily in developing the digital skills of our team, and we have trained people in the state-of-the-art technologies. Labor productivity has increased 20% over the 3 years, above the targets. We care about our team and provide all opportunities for our employees to work efficiently and effectively, hence, to enjoy a proper recreational environment. It is important for us that they feel the positive impact of their projects on the country and society and that they unlock their personal potential. Yulia Chupina is going to tell you about our team and HR in more detail. Our financial performance speaks for itself. In 2018 and 2019, we were making steady progress, but the pandemic did make some adjustments. Thanks to an advanced risk management system and a fast team response, we ensured a rapid recovery of financial performance. The average cost of risk over the 3 years has been 1.3%, which is in line with the strategy goals. Our returns speak for themselves. As early as the third quarter, our ROE exceeded 20%, and in the first 9 months of this year, it reached 16%. Over the 3 years of Strategy 2020, we were increasing costs slightly faster than expected, and this was due to our strategic and technological investments in the future. Having said that, we have managed to keep the cost-to-income ratio at a very low level compared to our competition. I'd like to stress that tight control over costs and operational efficiency has been and remain our absolute priority. At the same time, we have significantly improved our capital adequacy, and this has allowed us to deliver on all the promises we have made to you regarding the dividends. We have reached a 50% target and paid out over RUB 1 trillion in dividends over the 3 years. You will hear even more interesting numbers from the presentation by Alexandra Buriko, our CFO. Our strategy has been tested by the crisis, and we have been convinced that we are on the right track. Our investment in digitization has proven successful. The pandemic has demonstrated that digital consumption is becoming an integral part of our lives, and all our services have become the indispensable help to our clients. Our retail clients have got the opportunity to resolve their household and financial issues, and entrepreneurs, the opportunity to keep their business. We have provided them with access to a new audience through the ecosystem services of Sber. During the pandemic, we have switched over 70% of development and other functions to remote working in the shortest time possible. And having done that, we have not canceled any projects or delayed the launch of any service. Over the last few years, Sber always been one step ahead of the market curve. Investment in technology and human capital are key to the long-term and sustainable development of our company. Have we succeeded in everything as we planned? Yes and no. For 3 years, as part of our joint venture with Yandex, we were building an e-commerce platform from scratch. We all saw the success of this nascent service, which was winning over clients and growing actively. But at some point, we realized that we were competing with Yandex in most other areas, and both of us found it difficult to create a leading player in one of the key industries. And we therefore decided that each of us should concentrate on developing his own service. We figured that in our flagship businesses, we should own the asset and be able to fully integrate it. And Lev Khasis is going to talk about the steps that we are taking. I'm going now to move on to Strategy 2023, which is based on the following macroeconomic and market assumptions. We expect a challenging macroeconomic environment and stable banking markets. Although the peak of uncertainty is behind us, we are living in very turbulent times. Multiple imbalances have formed in the global economy. Debt problems, de-globalization, rising geopolitical risks, social tensions and unequal access to technologies, all these is affecting business models going forward, and we will see both traditional and new players in markets being reshaped. Despite the high level of uncertainty, the following assumptions have been made in our strategy. The Russian economy will continue to recover, thanks to a loose monetary policy and a recovery in external demand. 2020's decline in GDP will be in the range of 3.5% to 4.5%, and then the economy will grow 2.5%, 3.5% in 2021, achieving a stable growth rate of around 2% to 3%. On the 2023 horizon, the growth of the banking sector in Russia will slow down while remaining quite promising relative to the global banking sector. Mortgage lending, asset management and insurance will be the key growth drivers for retail financial markets. At the same time, we see a number of regulatory risks, which could affect primarily retail fee income. Some of these are already included in the calculation of our financial result in 2023. In the long term, until 2030, the financial markets are slowing down substantially on the back of declining margins and market saturation. Competition from technology and fintech companies will also intensify. At the same time, the potential for digitalization of nonfinancial markets remains high in Russia. In contrast to financial services, industries such as e-commerce and consumer services in Russia are now at a much lower level of digitalization than those in leading economies. We are confident, and these estimates have been confirmed by global experts, that nonfinancial digital markets will grow at an annual rate of 30% to 100% in the next decade. We will, therefore, be able to double the addressable market for the revenue of Sber. However, digital markets in Russia remain fragmented. For example, this is true for the largest e-commerce market, where there is not yet a clearly dominant player. Our main focus is on e-commerce markets, from nonfood retail to food retail as well as those of entertainment, medicine and education. The business models of financial and technology companies are intertwined in the fight for the client. We already see ecosystems and tech companies as our main competitors. The active development of foreign ecosystems on the Russian market will be a particularly big challenge for us, but we believe that we can win this competition because we have a number of advantages: a first class team, big data sets for better targeting our clients, trust of our clients, high-frequency traffic through online channels and off-line infrastructure through the country, which is becoming the most important point of client attraction. Our -- another advantage is the ability to scale our business quickly and at low cost, and of course, the access to client base. Strategy 2023 is a logical continuation of the strategy that we approved 3 years ago. In our new strategy, we have put a special emphasis on creating a seamless client experience and generating a single offering for the client. We will look at businesses not as stand-alone assets but as part of an integrated business model for the entire ecosystem of Sber. The main goal is to be a trusted assistant in navigating in a changing world for every person, business and the government by building a fully integrated ecosystem that operates under the formula 2 plus 2 equals 5. How do we leverage our competitive advantage? We are creating a single seamless client experience in using financial and nonfinancial services. We attract the client into the ecosystem through profitable products. These include subscriptions like SberPrime, our comprehensive packages for client segments, and the unifying elements of the ecosystem such as single client profile in SberID. For a person, Sber is an assistant and a navigator. We help people optimize their money, time and energy. For a business, Sber is a partner who helps maintain and grow the businesses. We increase their revenues, cut costs, protect against the risks, and we are their partner in digitalization. For the country, Sber is a support for the government in accelerating the economic growth. We promote the well-being of the population. We developed the small- and medium-sized businesses. We accelerate the digitalization, and we share our technologies with the market and transform industries by supporting education and science, investing in those areas and creating the state-of-the-art technologies. We are helping the environment and the development of ESG. We are building common system-wide processes, financial, operational, technological risk management, HR and others to achieve maximum synergies. Moreover, we integrate the needs of people, businesses and the country through the technologies and solutions of Sber. We developed marketplaces and the tools that are mutually beneficial for both corporate and retail clients. For corporate clients, we are generating extra demand. For retail clients, we are guaranteeing the breadth of choice and the best price as well as the speed and quality. One of such platforms will be e-commerce, which is an absolute priority for us. We are aiming to enter the top 3 of this market in Russia by 2023, and the whole top management team will be responsible for achieving this goal. Creating high-frequency services will increase client traffic and engagement. This will allow us to increase the conversion and penetration of high-value products, resulting in maximum CLTV and revenue per client. In order to implement the new business model, we will continue to invest in the development of technologies both inside and outside the bank. We will complete the migration to the technology platform and maintain the reliability and efficiency of our systems. We will integrate artificial intelligence into processes, which will increase the efficiency in most of our functions, and we will be developing our SberCloud products and SberDevices, making them the market leaders. We are continuing to develop our people. We will be building effective teams and improving the skills of our people. Attracting the best talent from the market will be our top priority. We will be improving HR processes on our own HR platform, attract and train people online and off-line. We will be providing them with flexible work formats and career path options. The ESG agenda is becoming a new and most important part of our strategy. We are developing green products and principles of responsible financing. We are continuing our numerous social and environmental initiatives to contribute to improvement in standards of living and development of small and medium-sized businesses in our country. In conclusion, I would like to outline the key financial targets 2023. The culture in Sber is, first and foremost, a culture of responsibility and orientation on results. It helps us not only to set the goals properly but also to achieve them consistently, even in times of crisis. We have a good track record, and our goals must be clear and transparent to you. Here are our key financial targets 2023: returns above 17%; a dividend payout ratio of 50%; strong discipline in managing costs and risk costs; the growth of business on nonfinancial markets at the rate of 100% annually. Over the 2023 horizon, we will be investing in client relations and gaining leading positions. The share of income from our nonfinancial services and the group's net operating income will exceed 5%. Most of monetization, however, will take place over the 2030 horizon and the share of nonfinancial services and net operating income will reach 20% to 30%. Sber is a unique investment story. Our level of returns allows us to provide the core business growth, tech companies' upside potential and stable dividend income. I'd like to thank all of you for your attention and trust in our team.

Good day, dear investors, shareholders and guests. My name is Alexander Vedyakhin, and I'm the first Deputy Chairman of Sber responsible for the financial business. As Herman Gref has said, the main goal of Sber's new strategy is to build an integrated ecosystem. This ecosystem shall become a trusted assistant and a navigator in the changing world for the people, for the business and for the country. COVID-19 pandemic has become a great challenge for everyone, and the banking sector was no exception. However, Sber has a strong financial business. We are much faster to recover than other banks after the first wave, and many people were surprised by the speed. And we owe this to our powerful core, that is to say, Sberbank. It provides a solid and reliable foundation needed for us to achieve our main goal, building the ecosystem. Moreover, the ecosystem shall make us even stronger. The ecosystem is a new step for our core financial business. Today, I would like to tell you about 3 main dimensions, meaning integrated client experience for all business models, B2C, B2B and B2G and across all interfaces; efficiency, including due to the use of artificial intelligence; and the ESG agenda, which is on the strategic direction. In the B2C segment, we want every client to be absolutely sure that Sber offers good value that is convenient and reliable, can be for payments, savings, loans, investing and getting risk insurance. Today, our active retail client base exceeds 98 million people. For the past 3 years, it has increased by 9 million. Our goal for 2023 is to expand up to 100 million clients. Our new business model implies that we should be constantly yet unobtrusively there for the client. We want the client to keep a larger amount of savings, take loans and make investments, all with the help of our bank. The only way to achieve this is through the optimal mix of financial and nonfinancial services. We are expanding our ways to interact with the clients. We strive to make them -- the services as convenient as possible. Let's talk payments, for instance. We will let customers make payments without the use of plastic card. It is convenient, it is safe and environmentally friendly. Today, clients can already make payments via QR code or SberPay. What is SberPay? It is a whole new system of payment services. They make it possible to purchase online and off-line, and the only requirement is to have a Sberbank Online mobile app. It is safe and free of charge, and the client can pay with any of his or her cards, the balance of which is shown immediately. By the way, this is necessary to avoid a negative experience resulting from a lack of funds on one of the accounts. Already now, we are starting to scale the systems. We also offer digital cards to our clients. In terms of functionality, they are the same as the plastic ones. At Sber, this saves us tons of plastic every year. In the future, we will also use biometric payment solutions. Already, more than 90% of all payments and transfers are carried out through our Sberbank online app. It has no need in getting promoted. As an example, my mother and my mother-in-law both use the app. And believe me, this means a lot. Nowadays, the app is used by 30 million people every day, and its monthly audience is 64 million people. We believe that by 2023, it will exceed 75 million users. We are expanding the line of industry-specific payments, solutions for transport, utilities and other sectors. For 9 months of the year, transport acquiring has already been operating in more than 130 cities. Our plans include giving all the citizens an opportunity to pay for transport without cash. Tomorrow, my colleague, Kirill Tsarev, will give you more details on the services for retail clients. And now let's talk about savings and insurance and investments. It's convenient to make savings with us, invest with us. We occupy the first places in retail deposits, asset management, investment and endowment insurance market. Over the past 3 years, our assets under management have doubled, amounting to RUB 1.7 trillion. By 2023, we plan to increase them more than 1.5x to RUB 2.6 trillion. Annual operating income growth from our wealth management business will exceed 20%, driven by an outstripping growth rate in such segments as asset management, life insurance and brokerage. Our more important goal for 2023 is to create a market for mass investments. A series of crises have discouraged many people from investing. Our goal is to change this trend. We plan to offer a first-class solution for the mass client and make investing a norm not only for our clients but also for all Russians. Today, deposits still represent the bulk of the noncash savings of Sber clients. while the share of investments is only 13%. However, we predict an increase in the share to 23% by 2023. In absolute terms, these investments will exceed RUB 5 trillion. Low inflation rates resulting in low deposit rates will, of course, contribute to this trend. Another area of our business is risk insurance. Until now, we have not been involved in the largest segments of this market, but we plan to expand significantly our product offering on the horizon of the new strategy. We are going to develop such segments as car insurance, voluntary health insurance and corporate property insurance. I have said so much, but tomorrow, you will learn more about this area of business from my colleague, Natalya Alymova. Now let's talk about lending. Our retail portfolio has been steadily growing. In the next 3 years, we will move away from individual solutions to a complex product called credit potential. It gives clients an instant understanding of how much money they can count on and what are terms. On the strategy horizon, we expect the mortgage portfolio to grow by over 30%. This growth will be facilitated by the further development of our DomClick platform. Today, DomClick is already the third among Russia's real estate marketplaces and the first by the number of advertisements on the secondary market. The platform has a showcase of real estate objects and all kinds of services for the selection, assessment, calculation, insurance, and of course, mortgage lending. Today, more than 10 million people use the platform every month. And now I want to say a few words with regard to interactions within the ecosystem. Our nonfinancial services are being developed in the most demanded areas. These are grocery delivery, e-commerce, news resources, entertainment and mobility. Lev Khasis will outline them in more detail. I will just point out that we provide our clients with access to Sber services wherever they are, on the street, in the car, at home or at work, and this is access 24/7. And thanks to SberID, the client journey through the ecosystem is absolutely seamless. Back in 2017, less than 1 million clients had a unified client profile. Now they are more than 13 million people. SberID also helps us to know the client better. As a result, we are able to improve the offer and create a highly personalized individual client journey. Client engagement increases conversion, and consequently, profitability. Already this year, thanks to our personalized approach and targeted proposals, we have received additional income in the amount of RUB 75 billion, and we plan to double that by 2023. Now let's continue with our corporate clients. Today, they include over 2.7 million companies. They form the backbone of the country's economy. Our goal is to grow this number to over 3 million by 2023. The priority of Sber is to help companies grow. I'm sure you're well aware of our successes in corporate business, and I will just briefly mention only the main ones. Our market share in corporate lending exceeds 32%. In 3 years, our loan portfolio has grown 30%. We are one of the biggest operators of government support programs for business. Depending on the program, we have 30% to 50% of the market. In the next 3 years, we will significantly accelerate the decision-making process for lending. By 2023, more than 90% of all loans will be issued with the use of AI. Even now, in many cases of large companies, the time spent from the loan application to money transfer is only 7 minutes. We are developing transactional and investment services. We are increasing our share in the settlements account market. Our plans include getting around 30% of the market in the next 3 years. Corporate clients require not only financial but also technological support. They focus on digitalization as one of the key priorities and consider Sber as a partner. We are sure that our tech solutions will help clients to transform their internal and external processes and to save time on transactional and routine tasks to the benefit of business development. 2.3 million users solved their business problems with Sberbank business platform. And we are talking not only about financial issues, the platform provides over 14 nonfinancial services. And we'll repeat, helping the Russian businesses to grow is one of our strategic objectives. We want to grow not at the expense of our customers, but to grow with them. In order to achieve this, we are going to build a space and will enable individual growth of our clients. This space will give everyone an opportunity to use advanced technological solutions, analytics and the best industry and industrial expertise. The platform will provide personalized tips for every specific client depending on its conditions and financial realities. Connecting to our new storefronts, SberConnect, SberTarget, SberMarketing and CRM services will help our clients to increase their income. SberSolutions and industrial applications will offer great assistance in optimizing corporate spending. Our nonfinancial services attract client traffic and engagement. A client who benefits from nonfinancial services use our banking products and services in a more active way, which makes our income per such client grow twice as fast as from a client who doesn't use our financial services. We intend to enhance the synergy of financial and nonfinancial B2B services. My colleague, Anatoly Popov, will tell you more about our services for business. Sber is also a reliable partner for the country's development. We are going to increase our participation in both private and government projects. We will become not only a creditor, but also a consultant and a strategic partner. We help the state in a variety of financial programs, from lending to strategic enterprises to loans for education or electronic maternity capital. Nowadays, the state also has ambitious digitalization goals, and here, we also turned out to be a trusted assistant. Together with the relevant ministries, we began to implement the digital profile. It enables citizens to receive documents from the state in electronic format. We are introducing state mail necessary to receive a registered mail from government agencies. We have developed a social account for the payment of aids, pensions and other social benefits. We have created our own digital platform based on SberCloud. David Rafalovsky will tell you more about it. I will just mention that Sber also plans to use it for state needs. There is no doubt that our capabilities allow it. We can offer technological solutions for the regions of our country as well. By 2023, we plan to offer them to the citizens of 10 regions. We have a variety of nonfinancial industry solutions in the social sector, transportation security and energy efficiency. And our calculations show that every second Russian region will want to use such industry solutions. People often ask us what will happen with our branch network. The physical network remains one of our most important competitive advantages. It allows us to offer a complete client journey, especially in such areas as e-commerce. We are working on network optimization, I'm referring to changing formats as well as developing partner and agency distribution schemes. The transformation into an ecosystem has posed new challenges before us. Many of them are being solved by Sber's new branch. We introduced it to the public in September, a new type of branch contains the main elements of O2O services. It embodies new principles for space organization, and naturally, it implies new technologies. While additional services such as SberLogistics, SberDevices and even coffee give additional reasons to visit our branches. All of these especially in demand among the young. We believe that young people will provide the new traffic to the branch network. We have strengthened our teams with the help of ecosystem experts. We have trained network managers to sell ecosystem products. Our plans for 2023 include reformatting thousands of branches in regional centers according to the new format. And this does not imply additional spending. Additionally, we plan to develop this so-called phygital formats. These formats combine the benefits of remote interaction with the advantages of personal communications. Examples of such services include financial delivery, off-site account opening and debit card delivery. Bearing this in mind, I would like to move to efficiency issues. Our unshakable priority is the focus on internal efficiency. Our levers are optimization, digitalization, clear priorities, embedding artificial intelligence into all Sber's processes and motivating our team to save funds. In 3 years, we have made impressive breakthrough. We are becoming an AI-native organization. We are developing various areas of AI, and by 2023, it will be used in 100% of banking processes. In 2020, the financial impact of its implementation has already exceeded RUB 60 billion. 80% of the financial impact comes from additional income. It has to do with the increase in the efficiency of communication with clients, personalized rates on loans, accelerated decision making for issuing loans. The remaining 20% are the savings from lower provisions and expenses, which includes headcount rationalization. In the next 3 years, the financial impact of AI will exceed RUB 360 billion. Importantly, Sber is a federal AI competency center. We provided expertise to the government in developing AI federal projects. The concept of regulation and the main document, the national AI development strategy were developed and approved with the participation of Sber. Sber is also involved in preparing AI talent. The range of our work here is very wide: School 21, AI Academy for schoolchildren, hackathons contest, AI Journey and platform solutions for education. Sber is engaged in projects where AI solves socially significant issues. For example, we developed a CT scan recognition model for detecting COVID-19. Now we are providing it to dozens of Russian hospitals for free. In general, social responsibility is becoming a highly relevant part of our agenda. And in view of this, I shall turn to the final block of my speech, ESG transformation. We are launching it this year. ESG agenda is becoming a cross-cutting part of our new strategy. Let's see what it means for Sber and for the country. In terms of the E part, environmental protection. Here at Sber, we strive to reduce our own environmental impact by developing the green office initiative, by reducing paper document flow by 30% annually. We want to increase the share of recycling waste to 40% by 2023 and the share of green energy purchasing up to 30%. Our plans include starting to calculate our carbon footprint as early as next year in order to reduce it gradually. Now we are developing a methodology for such a calculation. In terms of responsible procurement, we aim to carry out 100% of all our purchases according to ESG criteria. We strive to motivate the development of the green market throughout the country. At the country level, together with the other market participants, we are developing a regulatory framework for classifying ESG risks and assessing the environmental footprint. Banks themselves don't make much of a carbon footprint, but their clients can have a huge one. We want to create a mechanism that would encourage clients to behave responsibly. This is one of our priorities. We are dedicated to promoting the ESG agenda among our clients. Only through joint efforts we will be able to improve the environmental situation both in Russia and globally. But ESG does not concentrate only on environment. In terms of the S part, the social block, at the bank level, we take care of clients and employees as well as their families in the regions of our presence. Our agenda includes focusing on their development, a comfortable working environment and health care. Yulia Chupina will tell you more about our initiatives in HR. And now I will just note that among our goals on the horizon of this strategy, it is to provide flexible working formats for more than 20% of our employees and to keep the employee engagement index at a constantly high level of 75%. We create an environment for equal opportunities. With that in mind, we are developing inclusion. We're also promoting the adoption of industry standard and solutions for people with special needs. We are actively supporting the volunteer move. We plan to set the standards for employee care and social solutions at the national level. At the country level, we are developing the well-being of the population through our financial and investment services. As a result, we expect that the number of citizens with sales will increase by 1.5x in 3 years. We are increasing the availability of health care and developing related services, SberHealth and Sber e-pharmacy, which are especially necessary during the pandemic. A separate area of our activities is our educational technologies. Our goal is to give people the opportunity to learn, retrain and improve their skills. We are providing support to small and micro businesses. We plan to increase our portfolio in this segment up to RUB 1 trillion. In terms of the G part, the corporate governance, we are developing our ESG policy and building an ESG risk management system. According to Sber's lending policy, we have already limited the issuance of loans to clients with unacceptably high ESG risks. We are improving stress testing tools, and by 2023, we plan to organize ESG scoring for our entire loan portfolio. We are revising the principles and structure of Sber management to reflect sustainability KPIs in our internal motivation system. ESG transformation is a conscious choice of a mature and successful business. Its objective is to create an equal opportunity environment for improving the well-being of every member of our society, and our ambition is to become the leader of such transformation in Russia. We intend to join global ESG initiatives of which the main are: principles for joint responsible banking and UN Global Compact for Sustainable Development. This way, we will undertake public obligations before the global investment community, and we will follow global trends and best practices for sustainable development. To conclude, I would like to wish everyone good health. It is my great pleasure to give the floor to Lev Khasis. He will tell you about the integration model of our financial and nonfinancial services. Thank you for your attention.

Good morning, dear guests, investors and shareholders. Alexander has told you about the key areas of our activity, B2C, B2B and B2G. In my turn, I would like to discuss the integration of our services, both banking and nonbanking, around the interests of our clients and how we are going to drive the synergies and build on them to create additional long-term value, not only for our clients but also for our shareholders. Integrating our services and creating the unparalleled seamless experience highly appreciated by our clients is our key task for the next 3 years, and this is what my presentation will be focused on. I will start, however, with a brief summary of our achievements and building the ecosystem under our previous 3-year strategy and share some lessons that we have learned from it. In terms of business logic, the ecosystem is a way for us to remonetize our skills, technology and client base and related sectors. When we presented our strategy 2020 back in 2017, we set ourselves a goal to rank among the top 3 in at least 4 sectors over a 5-year horizon, that is, by 2022. We see that we have already managed to do this. Our online cinema, Okko, is one of the undisputed leaders in this industry and already has about 1.7 million paying subscribers only. Our digital media resources are leading the country's market with a monthly audience of over 64 million unique users. Our joint venture with Mail.Ru Group is -- the undisputed leader of the growing food tech industry. Its Delivery Club is our country's most popular service for restaurant food delivery. And CityMobil is the second yet largest player in the taxi market, but the growing share. We have already become the national leader in the rapidly developing e-grocery market. In this segment, we are represented by 2 services, namely SberMarket and Samokat. Besides, Delivery Club offers such services as well. Importantly, even exclusive of grocery deliveries by Samokat and Delivery Club, SberMarket has already topped the market by revenue among all its peers. Now 2GIS company ensures our leadership among geo-location services. Our BI.ZONE and SberHealth companies are disputed ranked among this year's industry leaders in the cybersecurity and health care domains, respectively, For instance, BI.ZONE is serving its clients already in 10 countries, and its revenue in 2020 will reach about RUB 10 billion, with over 70% of those funds coming from foreign clients. SberCloud becomes a very important player in the cloud-based services market with the widest product range. It has already gained the absolute leadership among the AI-based services, and it continues to grow 8x above the market. We promised that the revenue generated by our nonfinancial services in 2020 would total RUB 70 billion. And even if we exclude our ecosystem partner companies from the calculation, we have achieved this goal despite the crisis, despite the changes in the group perimeter, despite selling our share in Yandex market and despite the complicated market conditions. We are present in promising and fast-growing industries. The average revenue of our subsidiaries, inclusive of those who joined our ecosystem quite recently, in 2020, grew by impressive 165% compared to 2019. Therefore, we are generally satisfied with our achievements and we are optimistic about the future. At the same time, some of our initiatives were developing in a different way than we had planned. Probably the most painful example of things going wrong was our attempt to build an important e-commerce business with our ecosystem. Unfortunately, all 3 attempts that we made to implement such project with our previous strategy have failed. We had twice reached an agreement with potential partners, but alas, failed to realize the arrangements. In the Yandex case, even though we had managed to launch and quickly grow the joint e-commerce business, a civilized dialogue aimed at resolving disagreements between our companies resulted in us selling our share in this business. Even though we made a very good profit on it, we have not yet achieved our strategic goal, that is, creating a leading player for this crucially important industry. I would like to briefly outline the key lessons that we learned in the last 3 years. Lesson one, when we integrate a business in our ecosystem, we can grow it rapidly. Two conclusions derived from this lesson: first, if we invest in the companies, they must be explicitly integrated into our ecosystem; and the second conclusion, Sber is a very, very strong brand which helps businesses to grow and to reduce client acquisition costs. Lesson two, marketplaces are our most successful area. In addition to enabling us to offer our clients a wide range of goods, services and content, fully realize the synergies between our B2B and B2C businesses, they also allow us to very actively positively influence the development of businesses that are independent of us, that is, the partners of our marketplaces. Lesson three, and probably the main one, we have rethought the format of partnership. Now when making our strategic investments, we assume that we will either control the company that we have invested in or have a clear and easy-to-understand way to gain such control. Having no control is only acceptable for us if the services offered by the company in question are undisputed, explicitly and deeply integrated with our ecosystem as, for instance, in O2O, our joint venture with Mail.Ru Group. And finally, the most important lesson, e-commerce must definitely become our flagship business. It is very important for us, for our clients, both individuals and companies. We will develop this business independently based both on these existing assets and infrastructure and on a further organic and nonorganic development, which I will discuss a bit later. We see our ecosystem as open for cooperation with any market participants as an integration of services offered to retail clients, corporations and the government. The marketplace business model creates an environment for interaction between the sellers of goods, services and content and the clients on our platforms, which aggregate interfaces, technologies, data, unifying elements, and of course, financial services. You already know that we have recently presented our new brand and unified all our services under a single umbrella. Today, Sber is not only Russia's most expensive brand, but which is very important for us, it also ranks among the top 3 brands most loved by Russians. That means we have a relationship of trust with the majority of people and companies in our country. We understand their needs and have the experience of large-scale technological transformation, access to technology and the best talent in the market. Of course, our brand is a very important tool, helping us to reduce our client acquisition costs and gain leadership in the key markets. Just one example will explain to you how it works. Once SberMarket was rebranded from its former Instamart name, its brand recognition tripled, which contributed to a sharp increase in the number of orders and the loyalty of clients. Another and quite recent example is the acquisition of Zvuk company. Quite recently, just 6 weeks ago, we rebranded it into SberZvuk and connected it to SberID and our other unifying elements. This resulted in a more than twofold increase in the number of monthly active users and a 54% growth of new organic installations of SberZvuk application. Other critically important unifying elements of our ecosystem are SberID and SberPay, which Alexander has already discussed in detail. In addition to them, our ecosystem has over 20 other technological unifying elements used by our services. In 2021, all of them will also be integrated with our Salute virtual assistant. Salute has already been integrated into our main banking applications, Sberbank Online, and is accessible to all our clients. Our ecosystem is based on a technological platform, which will be presented to you by David Rafalovsky today. And now I would like to discuss our channels, the channels that we use to interact with our clients. The diversity of these channels is our obvious advantage. We do not forget our off-line channels that is the largest branch network in our country. This is a place of sales of nondigital services and an opportunity of a live contact with our clients, plus the world's largest network of self-service terminals. In addition to that, our corporate client support managers are present in all Russian regions. Of course, these are our wonderful banking and nonbanking online channels and now SberBox and SberPortal devices, TV sets featuring our virtual assistant and other smart devices for home and office. They have become the entrance to the health of our clients. We will continue developing their lineup over the 2023 horizon. The most important services that unify our ecosystem are, of course, payments and payment services, which Alexander has already discussed and Spasibo loyalty program. We also deem it strategically important that our ecosystem was joined by 2GIS, a geolocation service, which is extremely popular in Russia. It has been included in Sber ecosystem this year. And tomorrow, you will see the presentation by Alexander Sysoyev, the company Founder and Director. He will give you more details about this company and its outlook. Another integration layer of our ecosystem is a SberPrime subscription family, which offers the access to Sber services, either free of charge or in preferential rates. The sales of the first basic version of SberPrime came on sales quite recently, but we believe that we will have about 0.5 million subscribers by the end of this year. Early next year, the basic SberPrime subscription will include a whole range of privileges related to using our banking services, which will make them even more attractive. Besides, in addition to the basic version, we will have family, premium and VIP subscriptions. Most of them will include both our banking and nonbanking services. We have a good understanding of which services are the most attractive for our clients, and we see the growing number of transactions affected by SberPrime subscribers, which evidences their increased loyalty and ultimately helps us to acquire new and retain existing clients. The most frequently used are video and audio services, namely Okko, SberZvuk and media; while others, first of all, financial and e-commerce services offered by Sber, will be driving the economic well-being of the ecosystem. By 2023, we expect the audience of SberPrime to grow to 10 million subscribers. In addition to that, we are developing our frequently used digital interfaces in several directions, both on the basis of the existing applications, such as Sberbank Online and 2GIS, which have already gained popularity as well as the new Salute and super app projects. Salute has already been launched and is now developing, and we are planning to launch a super app in 2021. E-commerce will become one of the most important market segments for us. The Russian market is still highly fragmented. And although there is a number of successful companies competing for leadership in it, we still believe that the most of the competition in this industry is yet to come. We identified the following key areas in the development of our e-com business: launch of a comprehensive cross-category 3P marketplace in 2021; gaining strong positions in key categories such as electronics and home appliances, clothes and footwear, food and consumer goods, beauty and health; logistics is the next important area of the e-commerce development; services, including financial ones, offered by -- offered for sellers and buyers of goods at our marketplaces; recommendation systems, integration and synergies with our other services, assets and capabilities. At the same time, we are not starting to build the e-commerce services from scratch. We have a priceless experience of creation and successful launch of Beru marketplace. In addition to that, over the past few years, this bare ecosystem was joined by companies, which grew rapidly and now occupy important positions in their respective segments. I will start with SberMarket. As I have already mentioned, SberMarket has become one of the leaders of the consumer goods delivery market, acting as a digital marketplace for traditional retail chains. This service is already present in 147 Russian citizen towns. SberMarket's turnover for November this year is around RUB 3 billion, up more than 20% growth compared to October and more than tenfold growth compared to November last year. The company CEO, Asan Kurmanguzhin, will tell you more about the company tomorrow. That said, I would also like to announce that we have decided to acquire the majority stake in SberMarket. The other shares will be kept by the company founders, management and few minority shareholders. The deal will be closed upon obtaining the necessary and regulatory approvals. And our investment, including cash in and cash out, will total about RUB 12 billion, a significant part of which will be spent on business development. SberMarket will continue its close cooperation with the companies of O2O Holding on the operational level. Now let us have a look at Samokat, one of the leaders in the express delivery of grocery products. Today, this service performs over 80,000 deliveries per day. In the third quarter, it showed a twelvefold growth year-on-year, and the number of dark stores increased 4x since the beginning of the year. Samokat's revenue in November grew more than 20x year-on-year, exceeding RUB 2 billion. Nowadays, medicines are one of the most important product categories. Earlier this month, our ecosystem was joined by SBER EAPTEKA, which is one of the largest Internet pharmacies in Russia. This service has over 4 million monthly users. Even before the deal with Sber was concluded, the company had reached 100% growth year-on-year, and now we are jointly working on accelerating its development. Now SberLogistics company has proven that the bank's existing branch network can be used in electronic commerce as an element of its logistical infrastructure, and that there is demand for such use. In 2020, it will deliver over 7 million parcels among other things, thanks to the integration with Sberbank Online. In the future, logistics will serve as a basis for developing our e-commerce services. In addition to logistics, we are working actively on creating multiple technologies that are of importance for the e-commerce, from one of the world's best payments and lending infrastructures to first-class recommendation systems and the integration of e-commerce services with our video services. There is even more to come. The most important thing is that with our ecosystem, merchants will have access to our 100 million retail clients. And if necessary, we will finance the growth of their business, provide them with advanced analytics and advertising. And retail clients will benefit from the excellent client experience, wide choice, competitive prices and guaranteed quality. The objective of this is to make #BuyOnSber and #SellAtSber hashtag as popular as #TransferToSber hashtag is today. Nevertheless, we still have a lot to create to build or to acquire. Our goal in this industry is to rank among the top 3 to 5 market players with a total turnover of about RUB 0.5 trillion in 2023, and to lay the necessary and solid infrastructural, technological and marketing groundwork in order to further gain leadership in the Russian e-commerce. This is a very, very ambitious goal, and as Mr. Gref has already mentioned, this is a common goal for all the top managers of Sber. Health care will be another very important area of our ecosystem development. We are forming the Be Healthy with Sber habit. This business line will be not only social but also commercial in nature. Obviously, the increased life expectancy of Russian people generally has a very positive influence on our profit. In addition to that, our commerce services in the industry are growing rapidly and promise to bring a good profit. The most promising and fast growing industry segment in the digital health care market, it has a potential to grow 5x by 2023 to reach about 500 billion. Sber is developing a digital SberHealth platform to create a unique client experience, covering all the key stages for the end user. We already have the country's best service for telemedicine and doctor's appointment, and we will expand our offering in terms of healthy lifestyle and private health insurance products. And Sber's ambition is to gain leadership in 2023 in the key segments of digital health care on the basis of the AI technologies. The success of every project, company or corporation is enabled by people, to be more precise, by their competencies. This is exactly why the most important activity of practically any high-tech company in the world are the projects related to education. Sber has created a digital educational platform for schools and is now improving its comprehensive platform for universities. It has already created a universal marketplace for all kinds of educational services. We have already given access to our SberClass service to nearly 2,500 schools, which is about 0.5 million students and about 45,000 teachers. As I have already mentioned, entertainment is an area that contributes significantly to the acquisition and retention of clients by our ecosystem. Developing the media and entertainment industry in our ecosystem, we aim to gain strong positions in the most important segments: online cinema, represented by Okko service, audio streaming by SberZvuk and media products. In these services, the key success metrics will be the client acquisition, retention, frequency of use and client contact duration. These services will increase the competitiveness of our core business as well as our strategic initiatives, first of all, the e-commerce. In addition to the prioritized areas of our activity, I would like to mention a number of important B2C and B2B initiatives. I will start with the classifieds industry. In this sphere, we are present in 4 services, real estate, cars, services and employment. We have built and continue to actively develop DomClick, a comprehensive real estate marketplace, which my colleague, Alexander Vedyakhin, has already discussed in detail. Our new SberAuto service allows one to select a new or a used car, order its independent assessment and delivery and get a loan and an insurance policy. All this can be done from the comfort of the people's home. On the strategy horizon, we plan to scale this business manyfold. SberAuto is closely integrated with our other services, namely Cetelem, our subsidiary bank; the auto loan market leader, SberLeasing, which plans to enter the operational car leasing market; as well as our insurance business and the sales network. Rabota.ru, job search and staff hiring service, which provides personalized recommendations of vacancies in every month, helps over 8 million users to find a job and 0.5 million employers to find new hires. SberServices is our new service which was launched quite recently. This is a platform which allows private clients to order services online and provides a safe deal guarantee. This service enables quick and safe solution for any day-to-day tasks, from calling a serviceman to hiring a private tutor. In the near future, SberServices will enable corporate clients to officially cooperate with self-employed people as well as small and micro businesses. Speaking of services offered to companies, I would like to briefly discuss our B2B ecosystem. It resolves the following tasks: client acquisition and retention with nonbanking services, we plan to use them to acquire thousands of new corporate clients to be served by Sberbank; synergies with our B2C marketplaces, especially in terms of engagement of and providing financial services to partners and suppliers of our marketplaces; and of course, it is the monetization of the services themselves. It is important that in addition to the rapid growth, the B2B companies of our ecosystem also improve their economic performance. While in 2020, 5 of them were still losing money, our 2021 business plan provides for all the ecosystem B2B companies to generate positive EBITDA. Now I would like to summarize the goals of our Strategy 2023 in terms of building the ecosystem. All our key projects belong to fast-growing industries. For each of them, we set ambitious goals in terms of growth rate. Generally speaking, the whole line of nonbanking services aims to achieve an average of at least 100% annual revenue growth rate over the 2023 horizon. The income from nonfinancial services of ecosystem will grow at the highest rate. And in 3 years, it should grow dramatically and provide at least 5% of the group's income. In order to realize this strategy, we will make significant investments, which will total about 4% of our capital. Most of it will be spent on the development of electronic commerce. In conclusion, we would like to share with you our longer-term outlook. We sincerely believe to have chosen the only right way, that is, a combination of diverse and sought-after services unified by seamless financial solutions on our technological platform. Earlier, we have already shared with the market participants our vision that such a model will strengthen the financial position of the entire group in the long term with 20% to 30% of its income provided by nonfinancial services. This means that by 2030, we must become a market leader in several key nonfinancial industries, first of all, in electronic commerce. This will allow us not only to protect our positions in the financial service market, but also to create additional value for our shareholders by growing the capitalization of our nonfinancial business to a level comparable to today's capitalization of Sberbank. The ecosystem helps us to accomplish 2 crucially important tasks: First, it helps us to acquire new and retain existing clients, including corporate ones and provides one more opportunity to increase our sales and cross-sales. Second, our technology and experience are used to make a digital disruption into the industries that are due for us and to increase the capitalization of our investments. We see a significant equity upside potential in these new industries, both for ourselves and for our investors. And I would like to conclude my presentation with a quotation of one of our investors that is now displayed on the screen. The whole of our strategy is aimed at making him happy. I'm convinced that in the coming 3 years, we will demonstrate to you the extra value of our ecosystem, which will be built around the interests of our clients. And now I would like to pass the floor to David Rafalovsky, who will tell you about how we've developed the new technologies. Thank you for your attention.

[Interpreted] Hi, everyone, and welcome to our conference. Over the past few years, we, at Sber, have made tremendous progress not only in terms of our business but also in terms of technology. Thanks to our investments, we have launched many continental solutions in the market. As a result, the number of customers that exclusively use our digital channels has increased several times over. Quite naturally, this has put enormous pressure on our IT systems. Yet even with this kind of transaction volumes, we have been able to maintain the highest degree of performance and reliability. Of course, we're not going to stop right there. We are well aware of the fact that the goals that the new strategy has set for our financial and nonfinancial businesses are even more ambitious. This means that to be successful, our tech team has to deliver their best over the next 3 years. Success of a tech function in any company can be measured with different yardsticks, such as cost per transaction, IT hardware utilization, development, productivity or infrastructure dependability, to mention just a few. And all of them are certainly important. For us, though, speed is the key measure of success, the time it takes for a normal idea of any of our teams to transform into a finished product. That's why the first thing I'm going to talk about today is our strategy as a provider of technology services within Sber Group. We call it IT as a service. Had we been a conventional bank, this would have been the time for me to end my presentation. Yet our transformation from a financial institution into an IT company is changing the way we see the role of technology in Sber as a whole. Today, we look upon IT not only as a support function but also as a new business line underpinned by new technology products. That's why I will dedicate the second part of my presentation to how we will be developing the key areas of our tech business or IT as a business. Over the past few years, many organizations have decided to build their business around an integrated technology platform, but most tend to select platforms offered by major market players such as Amazon, Microsoft or many others. We, on the other hand, from the very start, wanted to be in full control of our technology landscape and of our future. That's why we made a very ambitious decision to develop a proprietary cloud-based digital platform which we call Platform V. Why V, you will ask. Well, I guess because V is a universal symbol for speed. We have now completed the development stage and kicks off a large-scale migration of our core business to the new platform. We can already report to you with confidence that Platform V is much more economical and better performing than any legacy architectures we may have. The average cost per transaction has come down by more than half, but more importantly, the platform has given us a huge advantage in terms of speed. 3,000 agile teams are already using it simultaneously for development, something that has helped us to cut product time to market sevenfold over the past 3 years. Yet we are not only migrating our existing businesses onto the new platform, we launched all of our new services on it exclusively even now. For instance, we have fully developed and made available to our customers the issuing and servicing of bank cards, the opening of corporate bank accounts and many other services. It's worth noting that we have designed the platform to implement its core features based on open source solutions, meaning solutions employing open source code. This kind of approach enables us to be technologically independent and to develop Platform V as best suits our needs. However, if and when needed, our platform is able to use the best commercial products the market has to offer as well. Our main to-do item as part of the new strategy is to complete the migration of the bulk of our system businesses onto the platform. We will thus increase the share of our IT landscape that's in the target state to 80%. Naturally, not only our banking business but also our subsidiaries will be using Platform V components. First of all, this applies to the main adhesive substance of our ecosystem, the integrating elements such as the single customer idea, the single product catalog, et cetera. There are already more than 20 of those, and every one of them has been built on the basis of the platform. Of course, we will keep advancing the platform from the technology standpoint. Now let me tell you about some of our top priority areas in more detail. First of all is the speed with which we test our product hypothesis. Case in point, why are the likes of Facebook and other tech giants different from the rest of tech companies? That's because they can very quickly and easily test the efficiency of any new services or features on any user sample. For their business, this means huge savings of time and resources. That's why we will set up specialized tools for our teams within the platform to enable them to test any hypothesis just as quickly and easily. Secondly, we are making a big bet on low co technology. This is a development technique that involves almost no manual coding and is very well suited to a certain kind of applications. Just imagine, instead of using complex program and languages, you'll be able to create products with a visual build-in kit driven by an intuitive drag-and-drop logic. Not only would this dramatically speed up development but also lower the entry barrier for programmers. Plus, any team member would be able to take a direct part in the development process. And last but not least, its reliability and cybersecurity that have always been and will always be among our priorities. We have achieved a very high level of reliability for our platform, so much so that some of its components just cannot remain down for more than 5 minutes per year by design. In this new digital era, Cybersecurity is becoming a crucial concern for any entity that wants to be competitive, thanks to streamlined automation procedures at Avery DevSecOp stage, leading cybersecurity companies who released their products 4x faster. Without a doubt, cybersecurity is a competitive advantage for Sber today. Not only we are developing solutions to protect our infrastructure, but we are also implementing the best global practices in the areas of personal data protection and fight in cyber fraud, and we are conducting promising research in those areas. We have established the security operations center, an advanced cybersecurity hub to protect our IT infrastructure. As it processes 38 billion security events daily, the center makes sure that the downtime of our IT infrastructure caused by cyber attacks is 0 minutes. Applying the artificial intelligence technology in the center processes significantly boosts its performance. Our speed of change in volume of transactions are growing all the time. With all this in mind, we have set a very ambitious reliability improvement objective to fully exclude the human factor from operating decision-making. And we will achieve this objective by implementing the autonomous operations technology. And of course, it's important to improve the performance of our engineers to achieve those objectives. As you know, Sber has completed one of the largest scale agile transformations in the world. It involved more than 30,000 people in 20 Russian cities. Over the past 3 years, we have thoroughly changed the approach to product development for our agile teams by setting up a brand-new automated production process. Now our software architects and developers have access to an integrated development environment with a wide choice of tools and services. Obviously, we will continue with this direction developing agile practices and tools. This will enable us to optimize not only Sber's production processes but also a much wider range of our process, too. Today, I can tell you with confidence that Platform V is a fundamental component of our strategy that underpins all development plans for our financial and non-financial businesses. Further development and implementation of the platform remains a key technology investment for us. Of course, I cannot omit the matter of data. Today, we are already processing huge amounts of information, and we realize that this volume is only going to grow. That's why the speed of data processing is also a priority. We need to respond instantly to any events in our customers' lives and make them the best offers at the right time. For this purpose, we have designed our platform to be able to process up to 10 million customer transactions per second in actual real time. Another important objective is to cut our data storage costs. For this purpose, we will be implementing a number of initiatives that will help us reduce data storage costs fourfold over the next 3 years. And finally, we will be building upon our accumulated data and our in-depth artificial intelligence expertise to continue investing in creating world-class recommendation systems. Each of our systems, OCO, Sbersbook and others, will be using special algorithms to recommend our customers the right service just in time wherever they are. I'd like to say a few words about infrastructure performance improvement, which is one of our biggest cost line items. We have made a real breakthrough in that area over the past few years. I have 2 examples for you. First, we have created a proprietary internal cloud on which we provide all our developers with over 90% of the infrastructure. Not only has this dramatically accelerated the provision of capacity from weeks to just 5 minutes, but it has also changed the whole user experience. Secondly, we have implemented a fee-based IT management system, which makes our costs as transparent as possible, including infrastructure costs and covers more than 80% of all IT-related costs. Yet we are confident that there is still a substantial potential for further optimization. The next performance improvement step is the transition to the software-defined everything approach. Normally, various infrastructure elements would contain underutilized resources, such as computing capacity, storage space, et cetera. Given the sheer scale, this substantially limits hardware performance. Once implemented, the new approach will enable us to increase utilization considerably, putting it on par with global leaders. This is important because each additional percentage point of increased utilization results in billions of rubles in savings. The remote access infrastructure for our staff is yet another infrastructure component. This year's pandemic posed a new challenge for us, transition employees to working from home and set up remote collaboration among teams as quickly as possible. For instance, we have adapted production process tools specifically for our development teams. As a result, tens of thousands of our employees are productively working from home right now, and we are ready for any future developments. If required, we will be able to transition Sber's entire technology team to working from home. And now I'd like to tell you about a new component of our strategy. We call it IT as a business. Why have we decided to view IT as a new business in the first place? There are 2 reasons for that. First of all, it's obvious to us that digital transformation has already become the main vector for economic and societal development. We were oblivious to the dawn of the digital era that came about a long while ago. Change has become so commonplace as to seem trivial. Businesses are striving to become as digital as they possibly can, while individual customers are changing their behavior and habits. Nearly everyone owns some kind of high-tech products now. The pandemic and the related restrictions have accelerated this trend. Reason number two is that this is a result of Sber's transformation into an IT company. Our IT landscape has changed dramatically as we move towards that goal. We have come up with a whole range of really a first-class technology solution for our own needs, so it only makes sense that we want to market the best of our solutions. So we are confident that our technology business has a very bright future. Today, I will tell you about some of its key areas. First, I'd like to begin with cloud technology. It's no secret that global cloud technology market is huge. Russia is just starting down this road, but the trend is obvious. More and more Russian IT providers have been launching and actively developing cloud services in recent years. We are confident that soon enough, most Russian companies and government institutions will migrate from proprietary data centers to cloud solutions following in Sber's footsteps. Clouds are much more efficient, reliable and cheaper. And most importantly, they are faster. Cloud solutions can help take a new product to market or scale up a business much more efficiently than before. Let me tell you in more detail about what we are going to do to help all of our customers from individual and developers to big businesses. We are developing a cloud platform based on our Sber cloud subsidiary that provides infrastructure and platform services for efficient business development. We are offering this platform to all companies so that they don't waste time and money on setting up a proprietary IT infrastructure and focus on their core business instead. Besides, Sber Cloud is a channel for delivering Sber's best technology solutions. This makes perfect sense as our entire digital ecosystem is cloud-based. And customers are interested in our products. For instance, Sber Cloud can be deployed together with our platform even at the data centers of our customers. Even now Sber Cloud offers more than 60 products, from basic infrastructure to ready-made business apps. And we are proud that just recently, it was named the platform service of the year. The AI cloud has a special place in our lineup. This is a whole category of products that help resolve problems related to artificial intelligence. We are facing this line of business because for Sber, AI is not just academic research, it is a real tool that generates tangible effects for our business year-after-year. That's why nearly all of our solutions are more or less driven by AI algorithms. Admittedly, it used to take a lot of time, months on hand to train AI models, but we've reached a point where it only takes just days or even minutes. This has been largely made possible by the Christofari, Russia's most powerful supercomputer that we own. But there's more. The Christofari's capacity provided to customers from Sber Cloud, another unique feature among the world's top supercomputers. The AI Cloud covers the entire range of needs from creation to implementation of machine learning models and lowers the entry barrier for all consumers. Today, even regular folks, let alone professional data scientists, can handle this. And of course, we are very proud that our AI Cloud has already been recognized as the artificial intelligence product of the year. We can see how our broad range of highly mature products result in Sber Cloud becoming popular very fast on our customers. This year, our offering has been growing 8x faster than Russia's broader cloud market, which expands by 30% annually on average. That's why we are confident that by the year 2023, we will become a key player on the Russian market for cloud solutions. The next tech business area I'd like to present to you today involves virtual assistants and smart devices. In our view, virtual assistants are capable of the same kind of customer interface revolution that smartphones and mobile apps made before them. Virtual assistants are unique in that they are almost omnipresent, from the kitchen to the bathroom, from a stationary set of speakers to headphones on a morning run, which is to say that virtual assistants can be useful across multiple areas of human life as they create a totally new experience of interaction with services. Major IT companies that develop virtual assistants are now locked into a virtual arms race. They all have their eyes on the price, a huge amount of consumer data and never-ending source of competitive advantage and the income. Let's just have a look at the facts. Almost half of the world's population already have access to virtual assistants. More than 350 million smart speakers have been sold worldwide. This is 2.5x the entire population of Russia. Not only that, but the virtual assistant market keeps growing at a fast pace as Sber has now set an objective to become not only a player but also a trendsetter and the market leader. A historic event happened this past September. We launched a virtual assistant called Salut that offers not 1, but 3 different characters. Our customers can now choose an assistant to their liking and change it anytime. Launching 3 assistants at once is an incredibly difficult task, and Sber was the first one in the world to accomplish this. The Salut family are much more capable than regular mobile apps. Since Sber ecosystem services are connected to all visual assistant, the Salut is set to become an integral part of our customers' lives. It can help start a movie or play a music track, order food, make a doctor's appointment or even discuss various topics. Not only that, but users can use voice, text, screen touch or even gestures to interact with it, depending on the situation. But there's even more. We have started making smart devices to go with our virtual assistants. We have already launched Sberbox, a TV set-top box. In December, we will launch Sber Portal, a smart screen. Those devices help expand the ways customers can interact with our assistant. And while the Salut is optimized to work with finances in our Sberbank Online mobile app, the displays on the Sberbox and Sber Portal make it much easier to view recipes, learn foreign languages, play and do much more. And to maximize the penetration of Salut, we will complement our own offerings with those of our partners by building our virtual assistant into their devices. Virtual assistants already possess dozens of skills. And soon enough, they'll get hundreds and even thousands more to be able to help people in any situation. For this exactly, we have created a special platform called Smart Market. It looks like a regular app store on a smartphone. It's also a virtual bookshelf filled with skill-driven apps, but you don't need to download or install anything. Whenever a new skill is added to the Smart Market, the assistants just tell a user that they can now do something new and useful for them. Not only that, but the new skills will immediately pop up on any device, a smartphone, a tablet, a Sberbox or a Sber Portal. We call them Smart Apps. The Smart Market is useful not only for our users but for our partners, too. Essentially, it will serve as yet another point of entry to Sber's ecosystem for them. We've decided to open up our channels for third-party businesses for the first time. And the Smart Market is open for absolutely anyone, individual entrepreneur, start-ups or small and/or medium businesses. Large business can use it too, by the way. We'd like for skills offered by any company to be found on Smart Market shops. What's more, the Smart Market is not a platform that's only reserved for programmers. Its tools can be used even by small businesses that have no dedicated IT staff at all. Very many smart apps can be created without creating even a single line of code. We have templates prepared in advance and the building kit for those who cannot or don't want to code. Any company can assemble, test, debug and launch and use skill right within the Smart Market, all in one place. This will give our partners access to more than 100 million customers of our ecosystem. Since our partnership is based on the revenue share model, both the developers and Sber tend to benefit from it. Of course, it would be impossible to accomplish all of those ambitious objectives without a strong team. We now employ more than 40,000 IT engineers of different specializations and various roles, including analysts, developers, architects and designers. We are recruiting thousands of engineers annually and thousands more receive continuous training at the workplace. I'd like to share with you one of the most advanced tools we use called Sber IT Boot Camp. This is an innovative platform for specialists who have just joined Sber and for those who are undergoing workplace professional development. Their intensive training involves getting acquainted with our platform development tools and practices. It helps them reach peak productivity in a very short time. And finally, I'd like to recap the highlights of our technology strategy 2023. IT as a service is all about speed and performance. All of our changes are aimed at testing hypothesis, developing products and making them highly reliable, quicker and cheaper. IT as a business is about the new technology areas of our business. We will be developing the best tech products for all customers of Sber's ecosystem. And we have set an ambitious goal of becoming a leader in those markets. Thank you, and please welcome my colleague, Yulia Chupina, who will tell you more about our team.

[Interpreted] Good afternoon dear investors. The transformation of the business model and technological development is not possible without our team. Results of Strategy 2020 and especially of this year, one more time, showed that our employees are critical for successful growth of Sber. HR service, in its turn, delivered on its goals on digitization of HR services for employees, helped leaders and employees to develop their required skills, strengthened IT and data experts team and, thanks to that, improved time to market for products and services. All this also enabled us to quickly respond to and overcome the challenges of this year. Not only did we help our customers and successfully address higher pressure on our business systems, but we also ensured safety and well-being of our team every day. We consistently improved the journey of Sber employees, making it simple, understandable and personalized at every stage. We've almost completely digitized old processes and services for HR by starting with a third-party cloud HR platform and then developing our own one. As a result, today, we can recruit, test, train and manage the performance of our staff almost entirely online with all our administrative services centralized in one location that processes all HR related tasks and serves nearly 300,000 employees across the country. We were ready to the challenges of the pandemic, and we're very quickly able to offer remote options to our employees and tried as much as possible to maintain their level of income. We helped our coworkers to grow. For them, it's important to have hard digital and soft skills. We train all our 35,000 managers. Digital skills developed 75 individual tracks. And we also provided the employees with development opportunities, both online and off-line. For all employees who show good results, going up to employees with digital skills, we create a special environment for development as well as professional and managerial growth. In 2019, Sber became first in the international employer ranking among students called Universum. We topped the banking category and ranked fifth in the IT category. The employee engagement index persistently remains on the level of the most successful global companies, with 75% of our employees being very engaged in their job. At the same time, we see some qualitative changes. We note the growth of such indicators as pride and motivation. 84% of our employees say that they take pride in working in Sber because Sber changes the country for the better. In 2020, we completed the largest agile transformation in the world, during which, as I have mentioned before, 30,000 employees of our central head office, our HQ and many subsidiary companies were transitioned to the cutting-edge agile approach. Adopting the agile approach resulted in a sevenfold decrease of the product development time, while the launch into commercial operation became 4x faster, which enables us to successfully complete with large tech companies. Agile methodology also improved Sber's image as an employer in the IT community. While already today working in Sber is one of the most exciting and important jobs on the market, we face a number of external challenges. Competition with tech companies with people who mastered cutting-edge IT skills and data skills, we need to encourage all leaders and employees to work efficiently as the margin of the banking business is going down, and we need to be more lean. Flexible work formats became a new norm and an important part of what we must offer to our employees. And of course, we do care about the meaning because we know that the people, it's very important what they do. It's important for all our employees and for the young employees who belong to the so-called generation Z. Within Sber, we also have to use our strategy to meet a number of requirements of our business. First of all, our business requires speed. We need to quickly help them hire and build teams using internal candidates and help best experts grow. We have to improve the performance of the process and also to create an environment for very efficient work of the team. We have to help our managers and teams to save time because we invest a lot in each, and this has to be super efficient. So in the next 3 years, we will continue to develop and strengthen the best teams, but we'll build the best ecosystem in Russia. We will empower our employees to unleash their personal potential and continue to improve our tools and processes to help leaders manage themselves and their teams efficiently. Our strategy will be built around 4 main areas. First is sufficient teams. We believe that today, products and services and the world in general, including financial and nonfinancial services, require teamwork and people with diverse skills and experience. We will improve our tools for building and developing teams. We will also use AI for these purposes. We will continue to hire new talent and train the current teams, motivating them to achieve the ambitious goals of Strategy 2023. Already now working in Sber opens the door to the most exciting projects focused on 100 million Russians, almost 3 million Russian businesses and enable us to take part in developing our public services, so this makes our country at better places. We will continue to offer competitive incentives to hire the best people from the market. And to retain our best employees, we will use long-term incentives such as options, shares and other tools. We will particularly focus on the key people in the strategy and teams. We believe that the main principle in the incentive policy is management from the perspective of business owner. You should manage the money of the bank as if it were your own. So we will empower our managers as much as we can and make sure that they are responsible for the budget, cost management and the profit they had. And the incentives amount will depend on how lean they are. We constantly strive to drive the performance of our employees, thanks to new technologies and artificial intelligence and improve our management system. In the previous strategic cycle, the performance grew 20%. And we expect similar growth this time, too. We have also launched a marketplace of projects. This is a platform with initiatives and projects that Sber works on. The platform will open up new opportunities. It will be accessible even to those who don't work in Sber. This is how we want to engage talented experts from around the world. We will provide the option of flexible contracts, making Sber a more attractive employer and speeding up the search for IT specialists and data scientists. We will place a special emphasis on working with universities and schools so that children and young people master the skills that will help them to quickly find a job in the modern world and be successful in their business even in the post COVID environment. Our second priority is training and development. We continue to provide personalized training 24/7 and career growth, making recommendations based on artificial intelligence. We help our employees to grow across 3 main groups of skills: soft, digital and professional skills. We expect to close up to 40% of vacancies for rare professions with internal candidates. We have another new initiative. We have started to create our own educational content in our corporate University and educational online platform. We make it not only for ourselves and our employees but for external customers, too. 80% of our educational programs will become available for everyone, including on our new HR platform, Opco, [ valenta.iu ], on digital platform for schools and other interfaces. We use the best global solutions to create profiles for positions. We build career tracks including with the help of AI. And we believe that all our employees will master the skills we need and will be confident in the future. Our third focus is culture. Culture obviously unites us all, and it is very important that it stands on our 3 values: I am a leader. We are a team; and all for the customer. We prioritize the culture of responsibility, of achieving goals and results while giving flexibility. We expect our managers to showcase the new style of leadership that is required in the times of challenging goals and the pandemic when resource are scarce. We have to achieve results while remaining efficient. What is crucial to ensure is the psychological climate in the team and the well-being of each team member. We continue to promote such principles as understanding customer needs, rapid prototyping, hypothesis testing and a working product as a measure of result. All these principles are agile principles. We will also build up our organizational flexibility, providing Sber employees with more opportunities for development and offering new work formats based on pre-agile Sber principle. We will continue to ensure development along expert tracks. For instance, we expect up to 70% of IT employees working in agile will grow along these particular tracks. We are offering flexible work formats for our employees, remote, mixed, in-office, part time and freelance, and also a long vacation if needed. This not only helps to protect our teams during the pandemic but also to ensure flexibility for instance, to working moms, whom we want to become the best employer in the market. In general, it increases the satisfaction of our employees, and this will help us cut costs because we'll be able to optimize our working space. Less space equals less cost. The fourth very important focus of our HR strategy is HR platform. We will continue to evolve our cloud HR platform, which provides managers and employees with convenient HR high-tech tools and fully automated mass HR processes. The platform will be available to all candidates, all employees of the group and even our customers. Mobile version is also available. We will develop it and hope that those will try it at least once. Like 75% of them will become its active users. It will help leaders form teams, adapt new hires, assign tasks and manage performance, develop themselves and their teams, manage working time and tasks and much more. So the platform will support employees and managers during the entire customer journey, freeing up time to achieve business and strategic goals. The platform will be personalized and omnichannel with built-in AI, voice assistant, biometrics and other advanced Sber technologies. Many services will be available for employees in a high-tech channel. HR platform will suggest the best decision based on the behavior of the employee, on the platform and context. For example, which candidate from the list should the leaders select based on the personal profile of the employee or team projects engaged in, who requires some retention efforts because maybe this person is searching for another job, what incentives or another project to offer so that this employee remains with us. We would also like our platform to become an accelerator for Russian HR tech start-ups. And we are prepared to plug their services into the platform and offer them to our employees and clients. These strategic priorities for our team's development in many ways build on the success of the previous cycle. At the same time, we put new focuses, often new tools to hire IT experts, help internal candidates to grow, provide flexible work formats, promote the culture of responsibility and performance and build HR platform and as an assistant. All this should give us competitive advantage in the global competition for talent and, consequently, for tech leadership and leadership in business models and also enable us as a team to deliver on Strategy 2023. We believe in our team, we believe in every employee working in Sber, and I'm absolutely confident that together, we will deliver Strategy 2023, and achieve all the goals we have set for ourselves. Thank you very much.

[Interpreted] Good afternoon, ladies and gentlemen. As Sber turned 179 in November, a big number by any account, yet our financial performance for the past 3 years and our ambitious targets are better indicators of our agile internal age as one would see at medical checkup. Thanks to the ongoing transformation, we've never felt younger or full of energy. Today, we will present our key strategic initiatives for the next 3 years. First, I have a look at the financial goals as we are setting ourselves for the next period. To recap, the 3 key goals of our Strategy 2023 include a group ROE of at least 17%, nonfinancial services income CAGR above 100% and, of course, a dividend payout at 50% of group net profit, subject to common equity Tier 1 maintained at the target level. Let's look into our ROE goal in more detail. Just a few years ago, we would have reported it as part of a classic set of bank reporting line items such as net interest income, fees and commissions income, expenses and provisions. But we have become more than a bank, and so we are viewing ourselves differently. Keep in mind that the banking is just a part of our ecosystem, which incorporates other important areas, too. Let's have a closer look at our payments, insurance and wealth management businesses and at our nonfinancial services. I will tell you about financial goals in each of those domains. As you can see, banking is projected to grow at a rather more modest pace compared to our other financial and nonfinancial business segments. For those segments, we are projecting an operating income CAGR of 15% on the strategy's horizon. And yet the banking business retains the key role in our ecosystem, accounting for around 70% of net operating income in 2023. So net interest income remains a key source of profit for Sber driven by organic asset growth and a moderately downward dynamic of interest margin. Let's look into the drivers that affect interest income and net interest margin in more detail. We expect a retail lending CAGR of 10% to 12% and that of corporate lending at 5% to 7%. The digital transformation that we have completed and a synergy effect from our ecosystem will preserve our banking market leadership. Retail lending and mortgage in particular will remain the key growth driver for our loan portfolio. We expect a double-digit retail lending CAGR on our strategy's horizon. This will be possible, thanks to low interest rates and an increase in consumer activity, which will become more pronounced in 2021 before slowing down during the following 2 years. Mortgage lending growth will also be driven by a state support program extended until July 2021. A recovery of Russia's economy in 2021 will also have a positive effect on corporate lending. During the 2 subsequent years of the strategy implementation, lending CAGR will come down while still allowing net interest income to grow. We expect increased demand for investments in consumer activity to slow down retail deposit growth to 5% to 7% annually throughout the strategy. Corporate deposits are expected to grow a bit faster at 8% to 10% annually over the next 3 years. We will also outperform the broader market in that area, thanks to our better positions in settlement account servicing. What's the expected impact of macroeconomic parameters to interest margins? A baseline scenario if the strategy assumes a loose monetary policy by the Bank of Russia, that will continue until 2022 with a subsequent key rate increase to a neutral 5% to 6%. Low interest rates will continue putting pressure on the profitability of loans. Keep in mind that our ability to cut funding costs are limited. Besides a key rate increase to 5.25% in our estimate, margins will also suffer because the rising cost of funding will take effect. And this will be offset by an increased return on assets beyond the 2023 horizon. Over the next 3 years, net interest margin will decrease gradually by 80 to 100 basis points from our current 2020 forecast. To offset this decline, we will be optimizing our loan and deposit structure. Among other things, we are planning to increase the share of retail loans to 40% of the loan portfolio and the share of current accounts and customer deposits to 48%. And now let's talk about our other financial services. The payments business is a key and stable source of income for Sber. Over the past 3 years, the total volume of payments, transfers and purchases by private individuals using Sber services has grown by 72% to over RUB 45 trillion. This line of business will continue growing, thanks to digitization, a rising share of noncash settlements and the popularity of online shopping. It will reach RUB 60 trillion by 2023. Turnover on corporate settlement accounts will exceed RUB 150 trillion by 2023. The growth in transaction activity, coupled with our innovative approach to the payments business, will enable us to increase income from this line of business by almost 30% over the next 3 years. This projection takes into account our expectations for potential changes of the regulatory landscape. It's important to understand that our payments business is not only a reliable source of income but also a way for us to attract and retain customers on our platform. In other words, it acts as an adhesive, a glue for our ecosystem. And now let's have a look at our financial goals for wealth management, one of the group's fastest growing segments. Natalya Alymova will talk about it in more detail tomorrow. We are offering our customers a wide range of investment services such as asset management, life insurance, pension insurance and brokerage services for individuals. Sber is a leader in the respective markets in Russia. Retail investment activity has been showing explosive growth due to slow inflation and low interest rates. We expect this trend to continue and have set ambitious strategic goals for ourselves. As Alexander Vedyakhin has said before, we are planning to grow assets under management by 60% to RUB 2.6 trillion. Operating income for this business will be growing by more than 20% annually to more than RUB 100 billion in 2023. Key growth drivers will include asset management, which will see its income more than double; life insurance with 70% income growth; and brokerage services. We expect brokerage income to double to over RUB 50 billion at the strategy horizon. As you already know, as far as risk insurance is concerned, we are planning to tap some new segments for us such as car insurance, voluntary health insurance and corporate property insurance. All in all, we are planning to earn more than RUB 100 billion in operating income in this segment. Risk insurance CAGR is projected at more than 20%. And now let me move on to our youngest yet very promising segment, the ecosystem's nonfinancial business. One of our strategy's key financial goals is to achieve annual growth in income from nonfinancial digital ecosystem businesses by over 100% annually. To support this kind of growth, the share of our equity investments in nonfinancial services will increase by 4 percentage points over the next 3 years. This will enable us to become a leader in the key industries. The share of nonfinancial businesses in the group's net operating income will grow to around 5% by 2023. Besides, we expect most of our nonfinancial businesses to be breaking even by 2023. E-commerce, entertainment, cloud business and cybersecurity are expected to contribute the most. Now let's start with e-commerce. Lev Khasis has already spoken about this segment in great detail. According to our estimates, the income from this segment will increase by over 10x over the next 3 years, and GMV will approach RUB 500 billion by 2023. This will make us a leader of this market in Russia. Not only that. E-commerce will also become a key catalyst for digital sales of financial services to our customers. Its development will lead to an expansion of retail lending and scaling of our payment services and will create opportunities for growing our corporate customer base. We will continue actively developing the entertainment segment, including the opco video streaming service, the Sberzuk music streaming platform and other media services. This segment is a key element for customer retainment and increasing the time customers spend on our platform. Entertainment will see its revenue increase by over 30% annually during the period covered by the strategy. The cloud business and cybersecurity are also major components of our services offering for legal entities. As far as the cloud business is concerned, we already have infrastructure in place complemented with multiple services that we offer our customers, from the government to small businesses. We are confident that these services and solutions will be in demand by our customers and will help them improve their businesses at minimal investments. By 2023, we are planning to become one of the 2 leading players in this market by increasing income from the cloud business fivefold. Sber is a global cybersecurity leader. We offer the best solutions to protect infrastructure, fight cyber fraud, secure personal data, both internally and for our external customers. Income from this business will double by 2023. So what about costs? And how are we going to ensure efficiency? Obviously, transforming into the ecosystem requires additional investments in information technology development. Besides our new nonfinancial lines of business that will be growing within the ecosystem will feature an income and cost structure that is different from that of the banking business, all the while, cost and process efficiency improvement and reasonable cost management will remain a key focus on the strategy's horizon. Thanks to previous investments and automation of routine processes, we will be able to keep operating expenses CAGR between 2020 and 2023 at 5% outside the nonfinancial businesses. The group-wide CAGR of expenses will approximate 9%. For our financial business, we are targeting an operating cost-to-income ratio. We are planning to keep this ratio close to the 2020 level on the strategy's horizon even as anti-crisis measures are gradually lifted. In addition to common performance improvement tools, we are complementing our motivation system. Top management KPIs will reflect with a substantially bigger weight, the actual savings versus targets. And now please allow me to give the floor to my colleague, Dzhangir, who will tell you about our risk management strategy.

[Interpreted] Thank you, Alexandra. Good day. We're here to talk about the future, but I'd like to start with the present. Our business model has been tested by the past crises. We have always quickly and accurately laid out our response and consistently improved stability of Sber by assuming risk-based models, relying on quality data, stress testing and scenario analysis. The bank's portfolio structure and capital have improved markedly compared to 2014 as capital rose 2.2x, interest rate risk down 36% in absolute terms, and the loan-to-deposit ratio improved from 114% to 91%. This has been a special year. We have done 20 stress tests, all of them confirming our strong financial and technological resilience. We are confident that we are ready for new tests. As you know, we are moderately conservative on provisioning and respond promptly to any changes in the risk level in the economy, and we had maximum uncertainty in the first half of 2020. We had set aside considerable provisions in advance. Stage 3 portfolio provision coverage is higher in Sber than in top 10 Russian banks. As of the 1st of October, this was 71%. During the 9 months of 2020, amid economic adversity and the pandemic, the group increased Stage 1 loan portfolio by RUB 2.5 trillion or 14% year-on-year. Simultaneously, we increased Stage 1 provision coverage to 1.1%. The group's 9-month cost of risk was 2.2%. This is a crisis level. And as soon as next year, we expect it to recover to 1.4% to 1.6%. Until 2023, we are projecting a decrease to 1%. This is our baseline risk projection, which assumes a gradual economic recovery and a change in the bank's portfolio structure. In particular, an expansion of new mortgages. I must note that the group's cost of risk remains exposed to such threats as broader pandemic restrictions, the U.S. sanction pressures, geopolitical risks and ESG risks. By the way, ESG risks are our new focus. We are actively working on implementation of responsible finance principles. By the end of 2023, we will implement ESG scoring for all of our customers. Sber Risk Tech is a technology transformation toolkit that constitutes the foundation of Sber risk management. This is a principle of our work, rely on models, data and scalable technology in all areas of risk management. What does that mean for our work with private individuals? The neural network rollout on spare transactions and other data has greatly increased the accuracy of our lending risk assessment models. Now we can distinguish between customer segments with even greater precision to set customer terms and conditions for them. We are substantially outperforming the broader market on the NPL measure. We care about the convenience, speed and quality of services for our customers. In lending, we will complete the transition to the so-called brief questionnaire by the year-end. It only contains 11 fields. And if you already are our customer, we will pre-fill that for you. Thanks to decision-making without human involvement, as many as 97.5% of client applications will get a response in 90 seconds. Well aware of what our customers need, we have launched online restructuring, where decisions are made within 20 minutes on 45% of all applications. This kind of retail lending transformation would have been impossible without the development of a scalable technology platform. We call it the credit machine. Its capacity and reliability enable us to handle peak loads of up to 1 million applications daily. For our corporate customers, we are also consistently accelerating decision-making by substituting models for human work. For small and micro businesses, we make 83% of decisions with 60 seconds. Despite the multitude of products we have for large businesses, we make 37% of decisions online. We will increase those percentages to 90% by 2023. For technology transformation and risk management, our big bet is on models and AI. For example, our bank has created one of the biggest customer links graphs. It contains 120 million nodes and around 6.5 billion links that are updated daily. We are actively using this graph in our decision-making. It helps us identify guarantors, assess the impact of related companies on counterparties ratings and include customers into related borrower groups. As a result, the accuracy and speed of our decisions get improved. An increase in the number of models we use has become an important part of technological transformation. Sber now has over 1,300 of those. We regularly control their quality. As many as 50% of important models are monitored automatically. We will increase the share to 80% in 2021. And finally, I'd like to talk about the efficiency of our use of capital and our risk-weighted assets. We improved Sber capital adequacy in 2020, thanks to an RWA optimization. This was enabled by an accelerated transition to the new Basel III regulation, finalizing and implementing new models based on internal ratings. As a result, group RWA savings under IFRS reached RUB 4 trillion. All the while, we decreased RWA density to 10 percentage points to 92%. This is a substantial improvement. It's worth noting that on average, this indicator is higher in Russia than in European countries. Our immediate plans include the development of our IRB models and a transition to the standardized operating risk approach. Once it is launched in Russia, we expect to save at least RUB 1 trillion in RWA in operating risk. Thank you very much, and now back to Alexandra.

[Interpreted] Thank you, Dzhangir. Our RWA optimization plans and the strong profitability of our business will enable us to comply with all the regulators' capital adequacy requirements with a necessary safety margin. We are planning to maintain the dividend payout to our shareholders at 50% of the group's IFRS net profit adjusted for interest payments on a subordinated loan from the Ministry of Finance loan treated as capital. And now let me announce our financial guidance for 2021. We have already covered the key banking trends for the next year. Retail lending will expand 13% to 15%; and corporate lending, 7% to 9%. Retail deposits will increase by 6% to 8%. Sber will grow in those segments in line with the broader sector. At the same time, corporate deposits will grow by 9% to 11%, and we will outperform the sector. As I have said before, our interest margin will be under pressure in 2021. We expect it to contract by around 0.5% compared to our current 2020 forecast. Net fees and commissions income will keep growing at the 2020 base, that is by around 10% year-on-year. The cost of risk will decline to 140 to 160 basis points. The growth of the group's operating costs will accelerate a bit to around 10% as a result of intensive expansion of our nonfinancial businesses. We are planning to keep the cost growth in our financial business at or under 6% despite the low base effect from 2020 and the gradual lifting of the anti-crisis measures. The operating cost-to-income ratio in our financial business will also stay at the 2020 level. Income from nonfinancial digital services to the extent of Sber share will double to more than RUB 140 billion. As a result, we'll be able to demonstrate an ROE above our target level of 17%. Common equity Tier 1 capital adequacy will be in the range of 13.5% to 14%. Now that was not the most exciting years. Once we have covered our diverse businesses and saw for ourselves that Sber is more than a bank, it only makes sense to ask what should be the right way to value it. We have analyzed our business and its valuation by the key segments. On the strategy horizon, nonbanking services will have an increasing impact on the group's profitability. Once more, those lines of business are less cyclical and have a bigger upside, thus, attracting higher valuations. We are inviting you to look upon Sber within this paradigm and apply any multiples you like. We have done this exercise, and the result we got was very much inspiring. And of course, our paramount goal is to build an integrated ecosystem where edge service would complement other services, maximizing overall value. We are already getting a confirmation of this from data on transaction activity of our retail customers in 6 most popular nonfinancial ecosystem services. Penetration of those companies' products into our customer base has more than doubled over the past year with 3 million customers using those services. The share of customers that use at least 2 of the services monthly has increased by 250%. We also see how increased penetration is leading to growth in cross-sales of financial products and the associated income. Over the past year, the bank's income has been growing 10 percentage points faster from those customers that had increased the amount of non-financial ecosystem services they use. That said, our review of transaction activity has shown that the bank's additional income from increased penetration of nonfinancial services had exceeded RUB 1,500 per customer annually. Ultimately, our goal is to maximize the CLTV in our ecosystem, customer lifetime value. This will help us generate additional income and realize our advantage in acquisition costs, reiterating the well-known formula of 2 plus 2 equaling 5. We all know that to remain in good health and to keep our cognitive abilities and neural links, we need to learn new things all the time. A new sport or a new hobby tend to kickstart other spheres of human endeavors and stimulate brain activity. The same applies to business, too. No rest on your laurels. Despite concerns and criticisms to maintain and build our potential and create value for all stakeholders, we need to invent new products and to create new markets and new models of consumption. That's the only way to remain young inside even if you are already 180-plus. Thank you for being with us.

[Interpreted] We have reviewed the results of Strategy 2020 and outlined our plans regarding Strategy 2023. Today my colleagues and I have told you about our strategy for the next 3 years. We have shown our business growth areas, our technological solutions and our team development priorities. We understand that this will be a challenging but very exciting journey. Join us. And before we move on to the Q&A session, I wanted to show you a very serious story that happened just the other day. [Presentation]

[Interpreted] And we are continuing our Investor Day. I hope we have been able to give you some entertainment [indiscernible]. With renewed strength, we are prepared to do this Q&A session. Today, we have the entire team. Mr. Gref and Yulia Chupina are joining us by remote. We're going to have video questions coming in today, and we're going to have the questions that we got through the website through the special form. I would like to ask everyone, please pay attention to the feedback forms. We will highly appreciate it if you fill those in. [Operator Instructions] Okay. The first question goes from Andrey Pavlov-Rusinov, Goldman Sachs.

[Interpreted] This is Andrey from Goldman Sachs. I would like to particularly thank Mr. Gref and obviously the entire executive team for finding the capacity to set such ambitious goals on capital despite all the economic uncertainties and the volume of investments that is planned for the nonfinancial ecosystem. I've got 2 questions. The first question that I would like to ask is about the dividend policy and the rate of payout from [indiscernible]. If you look at the positive scenario, if your equity grows significantly above the growth rate of the loan portfolio and risk-weighted assets with a multiple of 2, perhaps the Central Bank will continue to lower the regulatory requirements because Russia remains one of the most tightly-regulated countries in terms of risk weighting. Would you be willing to consider the bar of 50% earnings payout, perhaps not under this strategy period, but perhaps over the longer term, beyond 2023? And the second question that I would like to cover. That is about the take of the regulator on the development of your ecosystem. We have heard that there is some concern on the part of the Central Bank with respect to the development of the ecosystem and actually, the introduction of this nonbanking element into your business. What is the current status in your discussions with the regulator with respect to your strategy? And do you see any risks for the goals that you set on the nonfinancial businesses in terms of these regulatory discussions?

[Interpreted] Thank you very much. Mr. Gref, a question on dividends to you.

[Interpreted] Yes. Thank you very much for your question. Colleagues, it's great to see you all. Thank you very much for the interest you showed. We see a lot of investors participating in this video conference. We're going to try and answer your questions as fully as we can possibly do that. You know the question on dividends, whenever I speak with my team, my top questions are raising the salaries. That's for the team. And with investors, higher dividends are always high on the agenda. We don't really like, Andrey, to speak about the things that may or may not happen. Our principle in our work is making all the promises only if you can keep them. You must deliver on all the promises. You don't make any promises unless you can keep them. We're not throwing our words to the wind. So I'm just going to say this. If we see any capital -- in all honesty, we don't have any wishes whatsoever or any reason whatsoever to hold on to redundant equity that brings down our ROE. We don't definitely need any extra equity or capital. If the situation unfolds better than we had expected, then we will certainly give out some capital. If we feel that we are adequately positioned in terms of risk, we can respond flexibly. I would not like you to treat this as a promise given. But if this situation does happen, we will certainly not hold to extra capital. As for the regulation of the ecosystem, I would say that we don't have anything special in our relationship with our regulator. I would say that right now, we are -- we're testing an emergence of a very good, a very constructive relationship. And based on my conversations, you can just see quite evidently that they are mostly worried about competition, pretty much in the way that it has been happening in other countries. And right now, this trend for the emergence of ecosystems has been acknowledged by pretty much everyone far and wide. And you obviously see leaders in the creation of ecosystem in our country. We have been discussing this a lot with the government, with the Central Bank, with the President of our country. And what I see is, yes, the competitive space must be preserved. As for our internal preferences, we are not trying to monopolize any area in particular. Moreover, I'm deeply convinced that Sberbank does need a competitor. And I'm so convinced that -- you hired me. If I quit Sberbank, I would like to become a Sberbank client very much. And the only way I can remain a Sberbank client if strong competition remains. So we do need a strong competitor. We have no wish, we have never had any wish, never had any wish to destroy competition and to buy competition or to create a noncompetitive situation. If we are losing out to someone, on the one hand, too bad. On the other hand, that's great. That means that there are things for us to learn from our competitors. And this culture of respecting your competition, not just inside the country but also worldwide, and this attempt to find the useful things on the part of your competition and not develop this hubris, I think this is the most important thing. We will try to maintain as much as we can the government and the Central Bank and their efforts to create the competitive space. But then on the other hand, there is another streak to this discussion on the agenda is this bonus for the tech leadership. When you are doing -- when you have been doing a certain technology for many years, when you have been investing heavily into it, your intellect, your capital, you must get some bonus. So when you are going out to the market, you need to get this time advantage over your competition, this gap in time. So I'm trying to convince everyone that on the other -- on the one hand, we are kind of big. But then moving for a big guy is at least as difficult as it is easy for a small guy to become big these days. So whenever we invest that heavily in terms of energy into creating cutting-edge technologies, that would gain us this time-gap advantage, certain advantage without creating any barriers for the competitors in gaining this technology. I think that would be fair.

[Interpreted] Thank you, Mr. Gref. And now we are passing over to the next question. Andrey, thank you very much. Linda Sun-Mattison, Invesco.

[indiscernible] Can you hear me all right?

[Interpreted] Yes.

I just have one question [indiscernible] I'm very impressed by the [indiscernible] 4% equity investment for [ ecosystem ] [indiscernible]

Linda, can you please speak up a little bit?

Great. Yes. So I just wanted to check. The 4% equity to be deployed into investing in the ecosystem. I want to know how much of that would be for the e-commerce versus cloud and everything else. And on top of that, how -- can you give us kind of a rough idea how that would be spaced? That's 2021, 2023. Are we seeing a lot happening on '21? So kind of the timing of the investment.

Alexandra?

Thank you. Thank you, Linda, for your question. I will switch to Russian if that's okay. [Interpreted] Yes, indeed. About 4% of our capital will be the rise in our investment in our ecosystem. We have seen that we are projecting a fivefold increase in income from nonfinancial companies. That's in our net operating income, and CAGR of revenue from nonfinancials will exceed 100% over the time span of the strategy. That will certainly require considerable investment from us. Most of those investments will go to develop e-commerce. Lev Khasis spoke at length about this in his remarks shared today. Some of that investment will be for the building of the fulfillment infrastructure that is required to enable the efficient process in this area in general. We will certainly require additional investments into other key services like entertainment and cloud business. At this juncture, it doesn't make real sense to break this amount down. We will make this amount more precise as we advance with our strategy. If you break this down into years, right now, we are seeing more or less equal shares, perhaps with a greater stress on the 2021.

[Interpreted] Thank you very much. And we are taking the next question. Andrey Klapko, Gazprombank.

[Interpreted] First off, I would like to wish you great progress in delivering and overdelivering on all the [indiscernible] plans. You spoke at length about scaling your business, and competition has [ been ] an advantage and Sberbank in the nonfinancial business. Could you perhaps speak about the key challenges and weaknesses of Sberbank in this space that you have been entering? Mr. Gref said that you are too big, and perhaps it might be challenging for you to move. That's the first question. The second question is ESG. Which of the ESG elements do you think you're the strongest in improving, the greatest potential in improving? How much spending annually would you expect to make on ESG and when, where? And perhaps what [ financial ] effect would that have on the investor flows on Sberbank paper? How much would you expect to earn from ESG?

[Interpreted] Thank you, Andrey. The first question to you, Mr. Gref.

[Interpreted] Yes. Thank you, Andrey. As always, the difficulties on the part of implementing a strategy that ambitions are pretty numerous. And if the last time we said that our #1 challenge is to cope with the technological transformation because it was not obvious that we would make it within this time frame with introducing our platform. And the platform that we aimed to develop in terms of quality is matched to the best world benchmarks, and that was the greatest challenge. So right now, I would say that the greatest challenge for us, for an organization that big, that's your own self. And what we are seeing is the great challenge is primarily competition attempting to headhunt our best teammates. We are the leaders in the financial segment. We are a leader in a lot of areas. And what we are seeing is there's very targeted headhunting on our best staff. Sometimes our people are getting offers not just several times higher but several orders of magnitudes higher. And this is a great challenge for us because our main asset is, obviously, our people. We steep them in our culture, in our engineering culture. We invested a lot into them, and we're going to continue to invest in them. And the things that we have been doing to date, that is all underpinned by the brain power. And there's -- provisionally speaking, there's about 200 people that are critically important for innovation, for the speed of delivery of those innovations. And there's hundreds of thousands of well-trained people that over the years have taken a great schooling in business. And preserving their faith and our ability to deliver on the targets that we've set ourselves, that is perhaps the most important job for us. If you talk about other major challenges that we have to face, obviously, there are a lot of technology-related things that we have to address. And there are many very ambitious goals for which we don't even have any benchmarks. We just have some ideas about them. We discussed them very often. We try to generate some approaches, but we understand that nobody did that before. So obviously, there is a challenge, there is a danger that it might fail in terms of the technology. And the second danger is that even if we implement that, maybe the customers won't like that. So this is the story that is relevant for any trailblazing companies. And even in the previous several years, we were benchmarking some experience that was already on the market. Currently, in many parameters, we are creating totally new products. So we don't have any benchmarks. We're trailblazing the way. That generates a lot of risks, obviously. So for that, you have to keep the creativity, creative approach within the team. You have to make sure that people are feeling confident to take that risk. You have to support this culture, this atmosphere, this -- of A/B testing. These are the things, together with this cultural factor and retaining the entire team, is on -- the challenge that is on top of the agenda. Because unfortunately, the Russian market is not that wide. If you're talking about the experts of the level that you need to actually roll out such an ambitious strategy, I'm talking about the technological development level that we are today. Sometimes, these experts are just several people in the market. So for me, that's the major problem right now. And obviously, when we move to markets that are new to us, we see that not always we're very much welcomed, to put it mildly. The same -- we see the same in the United States of America. When there is a new player in the field in terms of high tech, not everyone is very happy. And so not everyone is very happy when we are entering the market. So we'll have some pressure like -- including administrative pressure. There will be attempts to stall our movement forward. And -- but we are ready for that. I have been living in such conditions for the last 20 years. And I think that we, as a team together, will have enough resources to weather this all. Thank you very much for your questions.

[Interpreted] Thank you. And the second part of the question if I may, thank you for ESG question, Andrey. It's great that you've asked, being one of the first. In terms of ESG, we're very down to earth. How does ESG look for our customers? For corporate customers. For them, the pressure is going to grow in terms of the environmental agenda, of course. And the clients will -- needs our support, our assistance in terms of the theory, and methodology and in terms of the loans. So yes, we help the customers. We give them methodological support. We explain them about the best achievements and practices and deliver the investment loan for them. Is it a business? It is a business. That's great, that's down to earth and pragmatic. For retail customers, basically, that's the same story. We see the huge [ pipe ] from the -- our retail customers. They have great demand. They generate a lot demand for everything that is environmental, clean and social. So yes, we help to protect the environment. We help the tigers on Amur and we help the special groups of our customers. At the same time, we help people to care, too. That's a very pragmatic approach. The same for the [ safe ] actually because we are actively working with the [indiscernible], and we are actively working with the specific government agencies to promote that agenda very actively, specifically [indiscernible], the internal loop is very down to earth too, something Mr. Gref talked about. It's very important for us to retain our team. So the ESG team, the volunteer agenda, the social responsibility, environmental agendas are the kind of a motivating factor, the factor that is -- gives incentives to the employees and ensures the health cohesion within the team. So without having any top-down approach, we have 300 people in 17 working groups. And they are moving their own agenda in this area, ESG area. For instance in [ Povolsky ] bank, we had a big campaign about the bets. They made small houses, build small houses for the bets. Even these things, so it really drives people, it really motivates them. It really helps them to move forward together with us and for us to retain the customers -- to retain the employees, I'm sorry. So this gives a great value for our employees and for our customers, and that means the greatest ability of the bank.

[Interpreted] Yes, I would like to add, maybe. First of all, we, first of all, now understand the importance of this topic. We understand that within the team, this is something that is on top of their agenda. And it is the -- ensures the cohesion of the team to promote the agenda, the current agenda. We understand the trend. That's the second thing. We see the surveys that is made on the population of Russia. 3 years ago, it was not even mentioned in the top trends, the environmental protection. But right now, is -- that's very important. People start to focus on that. And to be honest, I went through various regions of Russia. And some of our customers would love to help them. For instance, in Siberia, in Siberian regions, there's a lot of gases being emitted. And we would like them to help these enterprises to renovate their facilities, to filter the emissions, to close the outdated facilities, and we are actively making consultations with them. And it is very much supported from our regulator -- on the part of our regulator, we organized those conference calls with the top management of the Bank of Russia. We thought about creating a special working group dedicated to these issues, and we are closely working with the government, too. So by joining the efforts of the government and the Central Bank, I mean, in the development institutes, and on the other hand, creating the tools that would motivate the company to do that and to work in all the 3 areas because ESG, these companies should have some preferences if they produce green products, if they deliver green services, if they make renovations and rebuild their factories, that's great. They have to be supported. And I think the special law that was adopted about the -- related to the topic from the 1st of February, this law will be into effect. And we want to put to the market our new blockchain platform that is going to deliver the services for buying a digital finance assets. And there, the green instruments would be available, too, be made available by us. And the social responsibility, of course, is very important because we try to position ourselves in all regions of our brands as a socially responsible organization. Spans across various topics, are helping children, helping the education system, promoting culture, health care, all this is in line with the vision of our businesses of the future. And obviously, we want and we will be maybe a benchmark for the Russian market. In terms of the governance, we want to be as transparent as possible. We want to be transparent for our investors, and we want to be -- to become a benchmark and be on the same level as our technological development.

[Interpreted] Thank you very much. Let's take a question from the website. Question to David. Will Sber create a Sber search that will compete with the other search engines? David, please, you have the floor.

[Interpreted] Thank you very much for your questions. Now we look at the search engine from different angles. Obviously, if you talk about our specialized channels like Sber's book and Okko, we are going to have this social engine for the content that we deliver to our users on the one hand. On the other hand, if you look at the search engine, in general, our virtual system called Salute that we have just launched already covers around 70%, maybe 80% of the most popular queries that people put in the traditional search engine. So we are very optimistic about the future. And we think that we have great prerequisites for creating the search -- promoting search engines and our virtual assistants in our other channels.

[Interpreted] Yes. Thank you very much. Let's go to video questions back. Elena Tsareva from BrokerCreditService.

[Interpreted] I'd like to thank everyone for the fantastic presentation. Great format. Really puts benchmark for such type of events. So the first question is how do you look at your customer base within the system? How do you see a client base of Sberbank broken down by the age groups? And how do you address different -- age-related differences in terms of providing products and services from the ecosystem?

[Interpreted] Maybe a question to Lev.

[Interpreted] Yes, thank you so much for your question. As you understand, when we talk about customers of our banking and nonbanking services, which age group is our major customer, we're talking about basically all age segments. So we cannot make the same offers for everyone. So we are quite actively promoting the targeting for various age groups. We have a special project for kids. We have SberKids project that is actually being developed. And I think that you will soon be able to see that we are focusing very much on kids and on youth. I'm talking here about the educational platforms, too, that help our children to get great educational and entertainment content and help them to get the basics of the financial literacy. We're also talking about other social and age segments, too. We are focusing on them, too. We think that the number of our segments should be equal to the number of our customers, so we're going to a large-scale massive personalization. We're understanding that each customer is unique and having their own preferences, and we have to have a very special approach to them as one unique customer, one unique customer when we have to focus on them and on their uniqueness, on their unique needs. It goes the same for financial and nonfinancial services.

[Interpreted] Thank you. Elena, you said you have 2 questions. Your second question is?

[Interpreted] The second question is about the strategy of monetization in the businesses of the ecosystem, in Strategy 2023, do you see any option for monetization of some businesses by getting some investment -- portfolio investors see some placement opportunities? What would be the environment that you would be -- will be monetizing the business of the ecosystem?

[Interpreted] Mr. Gref, would you like to take this?

[Interpreted] Yes. Yes. I'll say this. First off, we are considering monetizing our businesses at an IPO. The choice of a moment in time, yes, that is another question. We would certainly like to offer a business of a [indiscernible], so when the multiples are right for the valuation in terms of selling the business when that would be a good offering for the shareholders. At the same time, we would like to keep the control of the businesses, all the businesses that we own beyond the 3 years of strategy, for sure. Those companies will be the roots of the ecosystem development. We are not right now looking to sell the controlling interest or completely exiting the equity of these companies. It might be the question that we are going to pop several years down the line but not over the time horizon of the strategy. The ecosystem right now is very much nascent to a great degree. We see that by 2023, a whole number of assets are going to be pretty attractive for external investors. So there are no dogmas here. Nothing is written in stone. And we will certainly be looking at the rationality and the optimal nature of what's good for us, what's the best for us and our shareholders. And I would also -- we are kind of dividing the banking system and the ecosystem. The banking business and the ecosystem, we're kind of separating them. You can't do that very well in a linear fashion anymore. One is done together with the other one and for the other one, and that is mutual. If we only speak about the ecosystem -- if we only speak about the ecosystem businesses, we just kind of split the whole notion of the ecosystem because largely, what we are creating, those 360 kinds of businesses around our clients, that's an attempt to retain our clients and maintain the relationship with that client as a financial institution to keep monetizing that relationship. And in this sense, I would just like to cite Jeff Bezos when he said that Amazon Prime Video is the most relevant business in Amazon Prime. And by selling subscription, and there's [ Golden Globe ] that gives us more in sales of shoes than any other events. So you should understand that. And in this sense, by retaining our clients within the orbit of our ecosystem, we're going to be offering the best services in a 360 fashion, financial services included. And we simply don't see the future of the banking outside of this statement.

[Interpreted] Yes, perhaps in addition to you what Mr. Gref has said, at our presentation we said, showed you the example for 2020, we are seeing the growth in penetration. And with the growth of penetration we are seeing income in the financial business from the penetration of our nonfinancial services. And in 2020, our sample shows that there's a 10 percentage points growth from the financial services income. That has been working already. The principal has been working already.

[Interpreted] Thank you very much, Alexandra. We're now passing over to the next question. Autonomous Research, Gabor.

[Interpreted] I have a few questions. First one is on your e-commerce strategy, an ambitious target to become top 3 in this market, which you mentioned is pretty fragmented. How do you expect to get there? To what extent do you see room for organic growth in e-commerce? And to what extent do you see room for cooperation with external partners, if you don't exclude joint ventures at this stage? What, if any, assurance can you provide to shareholders that you would be able to avoid conflicts when building this -- when merging this business? And finally, a more technical question on e-commerce. I think if we put together your revenue targets and your operating income targets, that would imply -- on the ecosystem on the nonbanking businesses, it would imply a relatively low margin, maybe 80%, 90% cost income ratio marginally. Is this because of the relatively low profit margins on e-commerce? And I will later have another question.

[Interpreted] Yes. Thank you. I'm going to start with the e-commerce and then [ Sasha ] is going to add on the margins. Yes. As for the e-commerce, as I have said, we are planning to base our business on the technologies and the platforms that are complementary that we have already. And those are primarily the projects that we have launched already, SberLogistics, SberMarket. That's a 3P marketplace for [ off line ] players. As I have said, next year, we are planning to launch on 3P marketplace that will offer cooperation to an unlimited range of merchants willing to sell their goods, and we will meet them with our clients, with our own client audiences. I think we have learned the best ways of doing that. We have found the pitfalls, and we have learned to avoid them. In a partnership with Yandex, when we built and grew the marketplace from scratch in very short time, and that was pretty successful. I'm confident that we're going to use experience to do more. As for M&A versus organic, I would not say that right now we are discussing any gigantic M&As. It's more likely that -- I mean, if you speak about the 3P marketplace, those might be either an organic growth or it might be a relatively immaterial acquisitions for our business, acquisitions of technology or existing business models. It's another thing in noting that we're going to have to develop pretty seriously in the key categories that I have mentioned as well. There, yes, partnerships are possible and certain interesting nonorganic deals, perhaps, those are possible as well. I would like to say that because right now, all the nonbanking businesses have been growing very quickly. And we think that the average growth rate of our nonbanking business over the strategy period is going to be 100% and maybe even more percent. Then to deliver on our targets, we will simply need to stick to these goals. And this year, I think the aggregate GMV of our e-commerce businesses will be, I think, several dozens of billion. Next year is going to have to be RUB 100 billion 2020 (sic) [ 2021 ]. 2022, RUB 250 billion. And I think we might see as feasible the RUB 500 billion in 2023. We will try to do that in general. We have shown, I think that we are pretty careful in buying. We're not buying expensively. We are not willing to pay a huge premium, and we already see that by integrating a certain business, we can ensure its swift development. For instance, SberMarket, when we rebranded it, it was a company even outside the top 10. And right now, it's -- I mean, 1 year, it became a #1 player in the market. And I think right now, the only question is, how do you maintain this accelerating widening gap for the competition? I think the competition in e-commerce in the next several years is going to be fierce. There's several players are pretty big already with similarly ambitious plans. There are also several catching up players. They are seriously pleased to do the same thing. They are not resting on their laurels. They are not satisfied with their market position. And I think this will create a wonderful environment for 2 categories of our clients. First, as individuals, private individuals, who would be positioned very well for a great service. And then the corporate entities. We're going to open opportunities for them to sell, to grow their business, to develop. And we're going to be able to provide the financing for that business. That's the synergy between the financial and nonfinancial business that Mr. Gref spoke about. And the last thing that I have to mention, that's the logistics in e-commerce. Fulfillment is generally the key to success. At the end of the day, those online store fronts are pretty similar with all the stores. And the question is, how quickly and with what good quality we can provide the service. And when we started thinking about developing e-commerce, we launched our own fulfillment business from scratch last year. We did not buy any gigantic companies. And last year, when we developed mid-year from when we started this year, by the end of the year, we delivered about 1 million of shipments this year. We grew the shipments sevenfold to 7 million. And this is naturally related to our physical presence, our branch [indiscernible]. And a large amount of investments is going to grow into the organic development of our fulfillment abilities that will put us ahead of our competition on fulfillment. So based on the aggregation of those factors, our capabilities and fulfillment in marketing, in the relations with our merchants, client merchants and the capabilities of our recommended systems and what Mr. Gref spoke about, integrating all our services for the benefit of our clients, we are looking with optimism at our ability to gain a very serious position in the e-commerce market. We don't think it's going to put us in the #1 over 3 years, but over longer term, we are not seeing any other spot for ourselves in the e-com other than an [ unconditional ] leadership.