Investor Presentaiton

Operational Efficiency Improvement Program Cumulative Effect in 2017 Total Effect 2017 (RUB bln) Effects of the Key Initiatives (RUB bln) ■Personnel expenses Materials, Utilities & Maintenance Other operating expenses Revenue 16.5 7.3 6.6 2.0 4.4 4.6 1.4 1.3 1.6 1.1 1.1 Rostelecom 1.0 0.8 0.6 1.4 1.2 0.6 0.4 0.4 0.3 0.2 0.2 0.1 0.10.10.1 0.040.1 0.0 Total Personnel efficiency - Total effect Modernisation of rural networks Points of sale optimisation of network Centralisation Contact centres optimisation controlling 61

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