1Q 2018 Business Overview

☑ CAPEX and OPEX: 2017-2018 Capital expenditures RUB bln Capex % of operating income 8.2% 5.0% 5.4% 2.6% 4.2% -25% 1.0 0.8 +42% -46% +219% 3.6 2.5 1.9 2013 2014 2015 2016 2017 Operating expenses RUB bln CPI inflation 5.4% 11.4% 12.9% 2.5% 6.5% +10% +9% +9% +5% 13.4 12.3 11.3 9.9 10.4 2013 2014 2015 MOSCOW EXCHANGE 2016 2017 Source: Moscow Exchange, gks.ru ■ In 2017, CAPEX was RUB 1.94 bln, including intangible asset additions of RUB 1.45 bln and fixed asset additions of RUB 0.49 bln. ■ In 2018, capital expenditures are expected to be RUB 2.0-2.2 bln, in line with CAPEX for FY 2017. The split between maintenance CAPEX and CAPEX allocated to new projects is expected to be roughly equal (55% new projects/ 45% maintenance capex). ■ 2018 CAPEX estimate does not include Ecosystem investments. ■ The actual growth of OPEX in 2017 was 10%, below the latest guidance of 11-13% as a result of: ■More conservative hiring ■ Stronger RUB ■ In 2018, growth of operating expenses is expected to be in the range of 7-9%. 36 36

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