Rostelecom · RUS:RTKM
Rostelecom — Investor Day (2021)
36 slides from Rostelecom's investor day presentation, Oct 6, 2021
Slide 1: Rostelecom Strategy 2021-2025
P rostelecom STRATEGY 2021-2025
Slide 2: Agenda
Agenda Strategic vision Priorities and Q&A session Concluding targets remarks Mikhail Sergey Oseevskiy Krylov President — Chief Vice President for Executive Officer Corporate Strategy
Slide 3: 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 PJSC Rostelecom (the “Company’). This presentation is strictly confidential to the recipien
Slide 4: Strategic vision
Strategic vision Mikhail » Oseevskiy President — Chief Executive Officer
Slide 5: Rostelecom - driving growth as the digital leader in Russia
Rostelecom - driving growth as the digital leader in Russia Rostelecom Providing infrastructure that is powering up digital acceleration at a national scale Offering services that supercharge the digital transformation of the State, economy and society 4 Rostelecom Building digital Russia we play Re
Slide 6: Successfully delivered on Strategy 2018-2022
Successfully delivered on Strategy 2018-2022 Financial targets achieved What we achieved 2018-2022 2020 2020 Strategy Rostelecom Rostelecom targets standalne Group ra & Revenue growth 4 15% y/y FOR PEOPLE FOR BUSINESS FOR STATE ) + Leading growth rates, * Leading in data centres, + Large-scale state
Slide 7: Rostelecom 2025 vision
Rostelecom 2025 vision How? Digital partner for society, business and State Client oriented digital group of companies Powerhouse that Leading in select Client oriented Sustainable shapes the new business transformation, financial growth Russian segments cost efficiency telecommunica- leadership tio
Slide 8: Priorities and targets
Priorities and targets Sergey Krylov Vice President for Corporate Strategy
Slide 9: Strategy 2021-2025 key focus areas
Strategy 2021-2025 key focus areas
Slide 10: Rostelecom 2025 — a powerhouse that shapes the Russian telecommunications market
Rostelecom 2025 — a powerhouse that sh the Russian telecommunications market for ye Leader in providing services to households through the best customer service for New digital products and sector solutions fostering competitive advantage for Key digitalisation partner for public sector and leading
Slide 11: Holding company model to streamline execution of new strategy
Holding company model to streamline execution of new strategy Segment and cluster based model Rostelecom as a holding company Headquarters without an additional holding | ] superstructure Segments Digital Clusters pT | ] Complex client centric Ee Bea) ae Data centres & Cloud Independently responsibi
Slide 12: Smart growth in traditional business
Smart growth in traditional business » 02 03 04
Slide 13: The telecommunications powerhouse: the largest player and sector trendsetter
The telecommunications powerhouse: the largest player and sector trendsetter @ B2C ey) B2B/G @ B20 To become a leader in Unconditional Maintain leadership of the telecommunications leadership in the B2B the operators market market by subscribers market and the and revenue through company of choice f
Slide 14: By 2025 Rostelecom will lead all the traditional segments
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 (incl. Virtual ATS and IP), broadband, mobile, VPN and lease of channels, M2M. B20 includes interconnection 14
Slide 15: B2C: growing subscriber base and increased penetration of services
B2C: growing subscriber base and increased penetration of services NX Key priorities cna Developing a converged offering (FMC): building a unified customer = base and end-to-end customer service Maximising ARPU and increase of share in the wallet through the development of convergent and digital ser
Slide 16: Mobile business: growing faster than the market
Mobile business: growing faster than the and making a key contribution to B2C gro Growth factors Maintain market leadership in VFM, Share of active users of 4G o NPS, consideration " mobile data, % 5 % 80% Increased efficiency: digitalisation of processes and services, reduction of TTM, maintaining
Slide 17: B2B/G: a strategy of unconditional leadership
NX B2B/G: a strategy of unconditional leadergalie) through digital and end-to-end solutions Key priorities Move from a carrier concept to a comprehensive service provider @ Increase sales of digital and complex services to large clients @ Sell vertical industry solutions in selected industries Provi
Slide 18: B2O: increase profitability and grow market share
NX B20: increase profitability and grow market share aN a Key priorities @ Launch of new infrastructure services: joint use of radio access networks and a core network for mobile operators; smart pillars with sensors to provide cellular communication, WiFi and SmartCity @ Transition to a full cycle
Slide 19: Outstanding growth in new businesses
Outstanding growth in new businesses » 01 ©2/|03) joa
Slide 20: 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 21: Ensuring long-term leadership in the data centre and Cloud markets
Ensuring long-term leadership in the data centre and Cloud markets Key priorities J Current market Develop federal network of data share in data centre centres and associated infrastructure Exceed market Develop cloud infrastructure Current market growth capacity and capability share in laaS laaS ma
Slide 22: Development of information security services
Development of information security serv png Largest player in the information security market for Ambition 0 B2B/G Development as a service provider #1 Revenue growth in Factory of internally developed 2020 technologies and products and R&D Flexible and adaptive go-to-market Share of internally ce)
Slide 23: Digital services share of Group revenue to increase
Digital services share of Group revenue to increase 2020 2025 (M@ilNewbusiness Traditional business 86% New business lines: B20 75% & Data Centres and Cloud 1% & Information security Digital Health 700+ a 50% ) & Digital Region ) B2B/G ig RUBbn ff a & Public sector digital services and products @ Ot
Slide 24: Digitalisation partner to the state
Digitalisation partner to the state » O1 O02 04
Slide 25: Public sector: priorities
Public sector: priorities 25
Slide 26: Transition to proactive interaction with the state on digitalisation
Transition to proactive interaction with the@gyeig on the digitalisation —o— SS Targets Key priorities @ Remain preferred supplier of all traditional services # & Become #1 mobile operator for state clients Sustain leadership in traditional services for state clients &@ Develop e-Government and inte
Slide 27: Increase efficiency in traditional business
Increase efficiency In traditional business » 01 O02 O3
Slide 28: Improve business efficiency through aggressive cost reduction
NX Improve business efficiency through aggressive cost reduction 7 all] Key factors Reduce share of personnel expenditures as proportion of revenue by increasing labour efficiency Other indirect costs optimisation, incl.: @ Materials, repairs and maintenance & Other operating expenses " Improving op
Slide 29: Building a client-centric model of network development and operation
Building a client-centric model of network development and operation reducing maintenance costs Ww sae . - . + Ambition G Competitive advantage in priority regions while >15% Leadership in cost efficiency Top-1/Top-3 Network quality and reliability 40-55% Certified and automated technological soluti
Slide 30: Smart approach to investments
Smart approach to investments CAPEX forecast vV CAPEX approach vV 25% e & Moving to a less capital-intensive growth model in ay ~19% traditional business e & Investment focus on priority regions in traditional ~135(0) business & Increased investments in the development of the fastest growing product
Slide 31: Concluding remarks
Concluding remarks Mikhail » Oseevskiy President — Chief Executive Officer
Slide 32: Targets 2025
Targets 2025 32
Slide 33: 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 34: Progressive dividend policy 2021-2023
Progressive dividend policy 2021-2023 Dividend increase Dividend per share Total dividend yoy payout as share of Net Profit 25% >5 290% <100% 34
Slide 35: Strategy 2021-2025 results
Strategy 2021-2025 results 35
Slide 36: Q&A session
Q&A session