Slide 1: New Opportunities in the Digital World
P rostelecom NEW OPPORTUNITIES IN THE DIGITAL WORLD InvestorPresentation 42 passed on 9m 2021
Slide 2: #1 integrated connectivity and digital services provider in Russia
#1 integrated connectivity and digital services provider in Russia le are #1 in Russia in... Mobile market by revenue growth (Tele2) Broadband & IPTV by market share Data centres & laaS by market share B2B/B2G/B20 by market share
Slide 3: Key financials
Key financials RUB bn Revenue OIBDA OIBDA margin Net profit Free cash flow CAPEX CAPEX / Revenue CAPEX excl. state programmes CAPEX / Revenue excl. state programmes Net debt incl. LL Net debt incl. LL / OIBDA 2019 475.8 170.7 35.9% 21.9 30.3 134.4 28.2% 105.7 22.2% 408.6 2.4 2020 546.9 194.1 35.5% 2
Slide 4: Mobile & digital services - growth drivers
Mobile & digital services - growth drivers Revenue structure by services 6% 10% _@* 32% % " 2020 ” _ AS 17% 14% Revenue structure by segments 1% a 2020 48% 37% Mobile I Fixed broadband BB Digital services Vv [Ml Wholesale services Fixed telephony Other B2c HH B28/6 820 Other RUB bn Mobile services F
Slide 5: Progressive dividend policy 2021-2023
Progressive dividend policy 2021-2023 Dividend Dividend per Total dividend ‘DPS growth increase y-o-y share PEMeeeicm potential over 5 of Net Profit years 25%} 20 [290%
Slide 6: Strategic vision
Strategic vision
Slide 7: Strategy 2021-2025 key focus areas
Strategy 2021-2025 key focus areas
Slide 8: By 2025 Rostelecom will lead all the traditional segments of the communications market
By 2025 Rostelecom will lead all the traditional segments of the communications market Market share ERE B2C ~4% >1% fe) B2B/G ~4% >1% El Rostelecom stable slight decline Hl Player Hi other jelephony (incl. Virtual ATS and IP), broadband, mobile, VPN and lease of channels, M2M. B20 includes interconn
Slide 9: Focus new businesses
Focus new businesses Targets 2025 Digital Health Information security #1 player LN Rostelecom 25% Data centres & Digital services Cloud for public sector IPO Digital Region
Slide 10: Priority markets and directions
Priority markets and directions to accelerate development CAGR of revenue EV/EBITDA and 4-5x EV/Sales multiples in target markets Possibility of _ Possibility to further public offering in accelerate growth the future through synergy with the current business up to 100 rus bn 7O+ rvs bn 25+ RUB bn 3
Slide 11: Strategic targets in Data centers: transition towards cloud
Strategic targets in Data centers: transition towards cloud Shrinking on-premise infrastructure and growing private, public and hybrid cloud platforms 2021-2025 Targ Migration from laaS to PaaS and SaaS >22k 255.7 212.9 176.1 75 RUB bn 145.8 120.5 99.7 68.9 83.4 40% 2018 2019 2020 2021 2022 2023 202
Slide 12: Strategic targets in Information security
Strategic targets in Information security 2021-2025 Targe 1. Build an ecosystem of cybersecurity services around clients in "home" market segments B2E (corporations), B2G (federal executive authorities) 30.6 and regions. N21 Player 25.3 2. Protecting market positions from being taken 20.2 over by te
Slide 13: Investment program structure - focus on development
Investment program structure - focus on development Average annual investment, RUB bn 2% 22% 2019-2020 2021-2025 28% 15% 14% me 9% 10% 4 Notes: This slide shows the average structure of capital expenditures for the period excluding government programs. 30% BB Digital clusters 1] Network infrastructu
Slide 14: Strategic targets 2025
Strategic targets 2025 14
Slide 15: ESG initiatives
ESG initiatives Environmental Reduce energy consumption by 15% by 2025 (excl. Data Centres and Cloud cluster) Increase renewable energy use Programmes to collect and recycle used cables, network equipment and devices Launch of Green Office environmental management systems across all offices by 2025
Slide 16: Performance
Performance
Slide 17: Transforming the fixed-line business into integrated provider of digital services
Transforming the fixed-line business into integrated provider of digital services Revenue structure transformation Revenue (RUB bn) 9m2i 18% 214% 9% @4ns +7.3% yoy 2020 17% EAEAN4% 10% e@5469 — Dig ital services +15.0% 2019 18% Including mobile services EEA 15% 13% @ 475.8 —— Not including mobile se
Slide 18: Mobile highlights in 2020
Mobile highlights in 2020 © +15% Revenue growth from mobile services - fastest in the industry 4) 40x Best NPS in the industry e 466 mn Mobile subscribers (+1.5% yoy) 28 mn MVNO subscribers on Tele2 networks (+37% yoy) | +4 p.p. Market share increase over 4 years (2) Market share dynamics of mobile
Slide 19: Fixed broadband is a core connectivity service for residential clients
Fixed broadband is a core connectivity service for residential clients 12.4 mn broadband B2C subscribers 11% fibre B2C subscribers 4 Notes: (1) Source: TMT Consultingdata by revenues o] A1% market share in broadband B2C ") B2C broadband market share '" 4% . 389% 1% 2% ° ° 9%li% 7% 9% | =a Rostelecom
Slide 20: Unique proposition of pay TV services
Unique proposition of pay TV services © 10.8 mn pay TV subscribers incl. =) 63 mn IPTV subscribers ot] 36% market share in pay TV for B2C | o 14% market share in IPTV 4 Notes: (1) Source: TMT Consulting for 2020 by revenue. (2) Source: TelecomDally for 2020. B2C pay TV market share |) 5% : 1% 31% 38
Slide 21: Digital services as the key revenue driver
e Digital services as the key revenue driver Digital services revenue structure (RUB bn) +32% yoy 22xyoy +80% yoy 2020 38.9 13.4 (Ak <—_ 2019 29.5 vES 48.5 +43° 2018 23.2 [Rey 36.9 7 CAGR 2017 15.9 eR} 26.0 2016 RINGERS) 18.2 Smart City projects (incl. E-Government) | | Data centres, information sec
Slide 22: Solid financial performance
Solid financial performance OIBDA 35.9% 35.5% 32.5% 31.7% 315% 31.6% 635.5% e ° e 8 e¢ e 1707 1941 968 967 100.9 1065 | | 2016 2017 2018 2019 2019 2020 restated I OIBDA, RUB bn © OIBDA margin, % Net income A1% 48% 47% 4.9% 46% 4.6% 7 e ._ e 8 aig 283 2 141 15.0 165 [ | 2016 2017 2018 2019 2019 2020
Slide 23: Capex & FCF dynamics
Capex & FCF dynamics CAPEX total 29.8% 28.2% 208% 19.9% 229% ° os 8% 19.9% 134.4 136.0 1005 619 608 732 | | ritl 2016 2017 2018 2019 2019 2020 restated Il CAPEX, RUB bn @ CAPEX / Revenue, % Free cash flow 30.3 20.4 22.8 227 13.3 | 148 | | 2016 2017 2018 2019 2019 2020 restated Il FCF, RUB bn 21.8% 2
Slide 24: Comfortable leverage profile
Comfortable leverage profile Gross & net debt including LL") 24 23 20 19 ° ° bd ° 508.7 544.0 3618 404.9 2019 2020 2020 9m21 Not including lease liabilities (LL) Loans & borrowings: maturity 3q21 4q21 = 5% 2022 — 14% 2023 33% 2024 = 26% 2025 mm 14% after 2025 mm 8% Floating 38% ting from FY 2020 the
Slide 25: Guidance raised for FY 2021 OIBDA
Guidance raised for FY 2021 OIBDA 25
Slide 26: Ownership structure
Ownership structure Free-float 29.0% H | State share: '50%+1 share Ordinary Number of shares = 3,282,9971929 Telecom Investments. 21.0% ¢ VEB 3.4% VTB Bank (under the shareholder agreement) 8.4% Note: Information as of November 30,2021. Mobitelis a subsidiary of PISC Rostelecom. Rosimuschestvo 38.2%
Slide 27: Disclaimer
Disclaimer By attending any meeting where this presentation is made, or by reading any part of this presentation, you acknowledge and agree to be bound by the following: This presentation has been prepared by PSC Rostelecom (the “Company’). This presentation is strictly confidential to the recipient
Slide 28: Contacts
Contacts Investor relations Office: +7 (499) 995 9780 E-mail: ir@rt.ru Web: www.company.rt.ru/en/ir/ 4 28