Investor Presentaiton

Key Initiatives: Centralisation of Network Controlling Rostelecom 2015 2019 FTE 4 700 2 100 Control centres 67 7 Reduce personnel costs & overhead Effect: by 2019 3.3 RUB bln 1.3 1.8 RUB bln RUB bln Share of monitored 42% 90% equipment CAPEX total Unify network monitoring systems Improve SLA Create single service line for cross- regional B2B/B20/B2G customers (2 LTS) OPEX savings in Target OPEX 2017 savings per year 64 64

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