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Investor Presentaiton

MTS a step ahead Appendix - Definitions and Reconciliations Net debt represents total debt less cash and cash equivalents and short-term investments. Our net debt calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare our periodic and future liquidity within the wireless telecommunications industry. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with US GAAP. USD mln Current portion of LT debt and of capital lease obligations LT debt As of Dec 31, 2011 1,155.7 As of Jun 30, 2012 1,104.5 7,554.0 6,237.1 Capital lease obligations Total debt Less: 5.5 3.5 8,715.2 7,345.1 Cash and cash equivalents ST investments Net debt 1,850.8 86.2 6,778.2 881.0 837.9 5,626.2 Free cash flow is represented by net cash from operating activities less cash used for certain investing activities. Free cash flow is commonly used by investors, analysts and credit rating agencies to assess and evaluate our performance over time and within the wireless telecommunications industry. Because free cash flow is not based in US GAAP and excludes certain sources and uses of cash, the calculation should not be looked upon as an alternative to our Consolidated statement of cash flows or other information prepared in accordance with US GAAP. USD mln Net cash provided by operating activities Less: For six months ended Jun 30, 2011 For six months ended Jun 30, 2012 1,669.2 2,274.3 Purchases of property, plant and equipment (660.6) (1,021.0) Purchases of intangible assets (145.6) (103.8) Proceeds from sale of property, plant and equipment 8.3 2.2 Proceeds from sale of other investments 7.0 14.7 Investments in and advances to associates 3.0 Acquisition of subsidiaries, net of cash acquired (33.8) (32.7) Free cash flow 847.5 1,133.7 29
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