Investor Presentaiton

Procurement Efficiency Rostelecom ΚΡΙ 2012 2013 2014 2015 Share of Tenders with >4 Participants*, % Savings, RUB bln 50% 3,549 16,218 16,765 20,069 >18x of share increase (all purchases) Savings, % 4.7% 16.5% 13.1% 21.1% (tenders) Savings, % 3.5% 10.3% 9.8% 13.3% (all purchases, incl. single source) 27% 18% 14% Number of purchases/tenders 6,124 6,245 8,525 5,822 (total) 2% Tenders with more than 4 1.5% 14.2% 17.7% 27.8% 2012 (target) 2013 2014 2015 2016 participants, % *share by the number of tenders Centralisation of Control over Procurement Share of purchases controlled I centrally ■locally locally, centrally controlled 10% 13% 20% 48% • 31% 26% 15% 66% 59% 61% 65% 52% 34% 2012 2013 2014 2015 2017 target Consolidation of Procurement & Logistics • • transparent decision-making in the procurement strong control of segregation of duties implementation of procurement and logistic strategy as a unified supply chain management vertically integrated structure optimisation of logistics and storage space in accordance with the supply chain strategy unified logistics business processes 99 66

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