Slide 1: Strategy
Strategy Rapid Network © + 89,000 homes passed in two operating areas in Moscow : Chertanovo & Khamovriki + Sales started in February 2001 + 35,000 Public TV subscribers connected + 3,000 Pay-TV subscribers connected + 3,700 Internet subscribers connected Operating district Population Households Hom
Slide 2: Network Rollout
Network Rollout he. Construction project management Projected incremental cost of “passing one home” ~ USS85 in central Moscow - USS73 in other districts Unique experience from prior network rollouts Leverage technical expertise - ‘Cluster’ coverage - More connections per secondary node In-house des
Slide 3: Network Rollout: Central Moscow
Network Rollou Central Moscow Rollout schedule 60 50 “0 20 20 Jule 13 mHomes parsed 000 (LH) aug 02 septo2 ovto2 Nov 02 ee 02 © Caper (uss (aH) Attractive investment characteristics + 192,000 potential subscribers, including 5,000-6,000 businesses + Low quality of free-to-air television (6-6 channel
Slide 4: Pay-TV subscribers and monthly ARPU
Financial Poeciri or Pay-TV subscribers and monthly ARPU 2200 " " " 1 sane ise | 15 s/f 13770 pot vss 8 Tape ——— iss ro] cas ° lb A 0220029 03 2002 "042002? 01 2003, me Pay TV eubsenbors (UH) Monty ARPU (RH) II 22" etoce of content and introduction of value-added services will dive growth In Pay-TV
Slide 5: Internet subscribers and monthly ARPU
10900 7895 soc | 2p00 2888? 7 a Ud 1 | 20014 01 2002 02 2002 03 2002P 04 2002P 01 2003F 02 2009P 032009 4 2003 met temet subscribers (LH) = Monthly ARPU (HY Im Retable highspeed services wil stimulate subscriber take-up andl allow gradual increase in ARPUS 7] [wie
Slide 6: Projections: Pay-TV and Internet revenues
Financial Projections Pay-TV and Internet revenues 2200 2p00 100 1500 1400 1200 1 p00 00 uss (000) 179 ne 139145 173 3] [nea
Slide 7: Projection: Blended ARPU
Financial Projection ; Blended ARPU 7 6 58 89 53 5a 5a Pa co4 Pr 33 a at — blended APU & | [nae
Slide 8: Projection: EBITDA and profitability
Financial Projection EBITDA and profitability 200,000 1 500,900 + 900,000 500900 | | e228) 600900) (1.900.900) 4 791904) i penal 50000 gag a j q 2 (1,476,162) aeance ss¢oo0) (2.000.000) meoroa -» Economies of scale and migration of customers to higher margin services will drive profitability | [nie
Slide 9: Summary of Business Plan Assumptions
Summary of Business)Plan Assumptions Key business plan assumptions (2001-2003) Pian | — | — 38°} a8] a0} 38] 287} 8°] 38} a a rah eatery al ala Won Pee be 3) aa) a) ae : : : passed U5) + | eae