Investor Presentaiton

MTS a step ahead +5% +12% Russia mobile operating indicators +6% Q1 2012 Q2 2012 " Strong year-on-year ARPU growth driven by the Company's focus on higher-quality subscriber acquisition and retention, as well as reflective of efforts aimed at voice and data consumption increase ARPU (RUB) 297 288 284 281 265 252 Q1 2011 Q2 2011 Q3 2011 Q4 2011 +8% +15% +10% MOU (min) 249 269 272 283 282 309 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 MOU growth in line with ARPU developments and retention efforts aimed at mass-market subscribers Continuous churn improvement as a result of change in dealer relations to focus more on top-offs rather than attraction of a low- quality subscribers through a massive SIM- card sales Subs, mln Churn rate, % 71.5 12.0% 71.1 70.1 70.0 69.4 69.6 11.3% 11.9% 12.3% VAS ARPU 67.4 64.4 69.7 72.8 11.3% 81.7 10.5% 77.5 - as % of ARPU 26.7% 24.3% 24.2% APPM 1.01 0.98 1.06 25.7% 1.00 29.1% 26.1% 0.99 0.96 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 16

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