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Investor Presentaiton

Rostelecom Strong market position Competitive environment¹) Rostelecom MTS VIP Megafon • As of September 30, 2012 Rostelecom was by far the biggest operator by subscribers and backbone network. Future growth will be driven by: Fixed and mobile data Operational Data 2) Backbone (000 km) 500 117 111 130 Fixed-Line subs (mln. subs) 27,5 6,3 n/a n/a Total HH passed (min.) 33,4 11,8 n/a n/a ✓ IPTV BB Subs (mln. subs) 8,9 2,1 2,3 n/a Mobile Subs (mln. subs). 13,5 70,7 56,2 62,8 Pay-TV Subs (mln. subs) 6,4 2,9 n/a n/a Sales points (000 units) ~2,5 4,2 -2,94) 1,6 Free Float (%) 40% 47% 18% 0% Financials (9M 2012) Revenue (RUR bln.) OIBDA (RUR bln.) OIBDA margin (%) Net Income (RUR bln.) Net Income margin (%) 238,7 249,7 218,2 199,5 94,0 110,9 92,8 84,6 39,4% 44,4% 42,5% 42,4% 30,6 46,1 n/a 12,8% 18,5% n/a 25,9 13,0% Source: Companies' data 1) all data from Russian operations only 2) as at September, 30, 2012 3) including SkyLink 4) including franchise sales points 5) Consolidated 9 www.rostelecom.ru Cloud solutions 1. Electronic government 2. Cloud document management system for federal and regional governments 3. Electronic Medicine 4. Electronic Education – "School of the Future" 5. Housing services and Utilities 6. Virtual Office - cloud solution for small and mid- size enterprises 7. Safe city #112 emergency service, ecological monitoring
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