Investor Presentaiton

Key Initiatives: Increasing Personnel Efficiency Revenue per employee (RUB mln) & Number of employees (ths) 174 165 159 151 1.9 2.0 1.7 1.8 Focus on Technical & Administrative Staff Optimisation through: Delayering and lean organizational structure SDN/NFV network transformation 2012 2013 2014 9M2015 Personnel Breakdown by Function, FTE ths 165 159 150 16.0 13.7 16.4 15.2 14.2 -15% admin headcount 105.9 101.8 94.2 RUB3.6 bln reduction 26.3 2013A 28.1 2014A 30.0 2015E ■Commercial unit Techical unit Admin unit Other IT transformation Balanced approach to outsourcing Employee productivity increase through employee engagement Target number of employees 110-130k in 2020 Rostelecom 62 62

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