Investor Presentaiton

Key Initiatives: Modernization of Rural Networks Rostelecom Replace Move equipment to outside containers Old switching systems and analogue stations MSAN, VOIP- gateway & SoftSwitch Copper lines within settlements Copper cables between settlements Reduce rent and building operation costs Effect: by 2023 Wireless solutions Reduce maintenance costs 9.5 RUB bln 1.6 3.2 RUB bln RUB bln CAPEX total Optical lines or Microwave Links Reduce number of accidents (3x in pilot zones) OPEX savings in Target OPEX 2017 savings per year 63 63

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