Sistema JSFC Corporate Presentation November 2013

2

Disclaimer

Certain statements in this presentation may contain assumptions or forecasts in respect to forthcoming events within JSFC Sistema. The words “expect”, “estimate”, “intend”, “will”, “could” and similar expressions identify forward-looking statements. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the above-mentioned date or to reflect the occurrence of unanticipated events. Many factors could cause the actual Sistema’s results to differ materially from those contained in our projections or forward-looking statements, including, among others, deteriorating economic and credit conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.

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1. Sistema at a glance

4

Our investment proposition

> Improved monetisation track record – over US$ 2.1 billion of cash divestments since 2011

> Increased portfolio activity – four new major investments in 18 months

> Better risk management and increased partnerships – three new partnerships

> Clear Holding Co financial targets - generate over US$ 2 billion of cash on annual basis to holding level

> Clearer management structure – eight portfolio’s with specific responsibility for different investments

> Rational remuneration scheme – holding co management rewards based on cash generation and largely stock driven

> Strong focus on minimising discount to SOTP – clearer communication and greater investor feedback intake

> Improved shareholder remuneration – three times dividend increase in 2013 and progressive policy in place

> Excellent TSR - strategy execution and greater focus on shareholder value already delivering one of the highest sector TSRs

> Developing assets transformed and providing rapid growth platform - most at OIBDA breakeven in 2012 and most with net income in 2013

> Increased dividend flow – six dividend paying investments in 2013 with 8 planned for 2014

> Minimised underperforming investments – reduced exposure and losses in India

Investment approach

Tailored structure

Greater Value

Stronger asset base

Sistema’s improved investment track record, growing asset base and greater emphasis on shareholder value offer unrivaled investment proposition

5

Our objectives and five year view

Diversified portfolio with even SOTP

Best in Class returns

to shareholders

Consolidated debt / EBITDA ~2; Holding debt ~0

TSR > WACC

Up to 30% cash return to

shareholders Generate over US$2bln for Hold co level annually

- US$0.5 – 1bln annual divestments

- Increased dividends from subsidiaries

Focus on investments with

positive cashflow

Tier One

Tier Two

Tier Three

Sistema has a clear long term vision supported by a set of ambitious roll-over and near term objectives

Our long term vision and where we want to be in 5 years time

Our core and principle objectives

Our near and medium term goals as investment company

6

Our investment company building blocks are now in place

Remuneration

Portfolio Structure

Responsibilities

> Development and evaluation of strategy execution of portfolio investments

> Assessment of new M&A opportunities for new assets or in new sectors

> Evaluation and execution of exit opportunities

> Identification of strategic partnership options

> Selection and appointment of operational management at portfolio investments

> More competitive structure - 8 portfolio’s with average of 9 team members

> Assets split by team expertise and deal origination

> Supported by executive and back office functions

> IRR above average WACC for new sectors

> 3 – 7 year investment horizon

> Clear development and exit plan in place before entry into investment

> No entry into new sectors without strategic partnership

> Each investment considered by Committee for Finance and Investments

> LBO structures preferred

Sistema has adapted a classic private equity model stimulated to generate greater cash and higher shareholder returns

> Entirely driven by the cash they generate

> Cash generation split into dividends and monetisation

> MTS and Bashneft dividends exempt from calculations. Only new dividends are accounted for

> Bonuses paid after deduction of portfolio cost and Central Bank financing rate (8%)

> Over 50% in Sistema stock options

Investment process

Leaner and competitive Strategic not operational No cash; no reward Science; not art

Over the course of the last two years we have put in place key building blocks that will transform Sistema’s approach to making investments

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2. Sistema’s track record

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Our track record of cash generation and shareholder returns Cash generation (dividends and cash from exits), US$ mln

Exits and divestments

Dividend history Total shareholder return (TSR)

> Sistema’s strategy proposes progressive dividend story with base level dividends set as: at least 10% of consolidated net income and at least 10% of cash gains from assets disposals

$17 mln

$87 mln $82 mln

$300 mln**

0,0% 0,7% 0,8%

3,1%

2009 2010 2011 2012

Amount Yield

11%

-33%

20%

38%

14%

-23%

8%

-5%

2010 2011 2012 2013YTD***

Sistema RTS

2 180 1 723

1 381

2 687

2010 2011 2012 2013YTD*

*Including announced interim dividends from MTS and Bashneft ** RUB 9.264 bln

709 381

538

1 200

2010 2011 2012 2013YTD

2010 – sale of stake in Sistema Hals, Sistema Telecom, disposal of SkyLink

2011 – sale of MGTS, partial sale of Intourist to Thomas Cook

2012 – exit from power generation, sale of MTS shares, sale of office building

2013 – sale of Russneft

> Sistema’s GDRs significantly outperforming RTS index after 2011

Sistema has established a clear track record of generating significant cash returns to Holding level and shareholders

*** As of November 22, 2013

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1 1

4

8

2010 2011 2012 2013E

60% 80% 70%

82% 92%

40% 20% 30%

18%

8%

2009 2010 2011 2012 2013E

Loss making Profitable

OIBDA profitability trend by developing assets*

10 10 10 11

13

30% 30% 40% 64%

77% 70% 70% 60%

36%

23%

2009 2010 2011 2012 2013E

Loss making Profitable

Net income profitability trend by developing assets**

10 10 10 11

13

3 042 3 345 4 039

5 124

2009 2010 2011 2012

Portfolio’s revenue*** growth at CAGR of 14%

Improving track record across the developing assets

> In 2013, vast majority of investments are expected to be profitable at net income level

> Strong sector diversification and balanced approach provided revenue growth of CAGR 14%

Developing assets paying dividends (based on full year results)***

> Growing profitability will result in greater dividends from developing assets > Years represent periods based upon which dividends are paid

*Profitable/Loss-making 2009 - Medsi, Binnopharm, RTI, Bashkirenergo, Sitronics, Intourist / SMM, MTS Bank, Detsky mir, SSTL (6/4) 2010 - SMM, MTS Bank, Detsky mir, Medsi, RTI, Bashkirenergo, Sitronics, Intourist / Binnopharm, SSTL (8/2) 2011 – Detsky mir, Medsi, Binnopharm, RTI, Bashkirenergo, Intourist, RZ Agro / SMM, MTS Bank, SSTL (7/3) 2012 - SMM, MTS Bank, Detsky mir, Medsi, Binnopharm, RTI, Bashkirenergo, RZ Agro, SG-trans / SSTL, Intourist (9/2) 2013 - SMM, MTS Bank, Detsky mir, Medsi, Binnopharm, RTI, Bashkirenergo, RZ Agro, SG-trans, Intourist, UPC, BNSA / SSTL (12/1)

**Profitable/Loss-making 2009 - Binnopharm, RTI, Bashkirenergo / SMM, MTS Bank, Detsky mir, SSTL, Medsi, Sitronics, Intourist (3/7) 2010 - MTS Bank, RTI, Bashkirenergo / SMM, Detsky mir, Medsi, Sitronics, Intourist, Binnopharm, SSTL (3/7) 2011 –Medsi, Bashkirenergo, Intourist, RZ Agro / SMM, MTS Bank, SSTL, Detsky mir, Binnopharm, RTI (4/6) 2012 - MTS Bank, Detsky mir, Medsi, Binnopharm, Bashkirenergo, RZ Agro, SG-trans / SSTL, SMM, RTI, Intourist (7/4) 2013 - SMM, MTS Bank, Detsky mir, Medsi, Binnopharm, Bashkirenergo, SG-trans, Intourist, UPC, BNSA / SSTL, RTI, RZ Agro (10/3)

> In 2013, all of Sistema’s investments with exception of SSTL will be profitable at OIBDA level

***Intourist’s results were excluded due to sale of tour operating business in 2011 and absence of comparable data. BPGC’s results were added in 2012 ***Indicated periods correspond to the annual results for dividend calculation

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63

1 525

<100

1200

5 062

12 421

6 147

21 790

2000 2013*

MTS market capitalisation since IPO Bashneft market capitalisation under Sistema control

2009 2013*

Share in Russneft from 2010 to Sistema exit in 2013

2010 2013

Case studies of successful investments and exits

2001 2007

> Developed MTS from tiny Moscow-based operator to #1 mobile player in Russia with over 100 mln subscribers

> Created an integrated telecommunication provider through addition of Comstar

> Generated significant shareholder returns via price appreciation and dividends

> Restored production growth through application of modern technologies

> Significant future production upside from the addition of Trebs and Titov field

> Successful exit from Bashkirenergo’s power generation assets

> Acquired distressed asset and initiated significant restructuring exercise

> Leverage fell from 4.7x in 2010 to 3.3x in 2011, creating potential for substantial equity value upside

> Sistema sold its 49% in Russneft in 2013 for US$ 1.2 bln

ROSNO’s equity value from 2001 to Sistema exit(a)

Note: (a) ROSNO’s equity value showed for 100% stake based on the deal size in 2001 (US$ 28.6 mln for 45.27% stake) and in 2007 (US$ 750 mln for 49.17% stake) *As of November 21, 2013

> Built leading insurance company from small market player

> Found a partner with international industry expertise to increase value

> Sold ca. 50% stake to the same partner after significant company’s growth

+254%

+145%

+2,321% +1,100%

We have unique experience in building market leading companies and securing substantial returns on our investment

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> In 2002 partnered with Allianz to develop Rosno into a leading insurance company in Russia. In 2007 sold remaining interest in Rosno to Allianz valuing the company at US$ 1.58 bn.

> In 2011 partnered with Thomas Cook to develop Intourist - a leading tour operator in the Russian market. Partnership structured through a joint venture where Thomas Cook has a 75% stake.

> Sistema partnered with Deutsche Telecom at early stage of MTS development. MTS has since expanded into a number one telecom provider in Russia and CIS.

> In 2011 the Russian Government partnered Sistema in its investment in the Indian telecoms – SSTL. The Russian Government acquired a 17% stake in the telecom operator.

> We aim to set up partnerships with leading international and Russian companies, to exchange industry-specific expertise and diversify financial and operational risks.

Some of our key partnerships

> In 2012 Sistema and members of the Louis-Dreyfus family established RZ Agro, a JV in the farming business in Russia. JV combined both parties’ agricultural assets, totaling approx 90k hectares.

> In 2013 United Petrochemical Company and Mexican company Grupo Petrotemex, a subsidiary of Alpek, established a JV for the construction of an integrated purified terepthalic acid (PTA) - polyethylene terephthalate (PET) plant in Ufa, Bashkortostan.

Sistema has a history of successful partnerships with leading international blue-chip companies across the sector it invests

India

Louis Dreyfus family members

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3. Sistema’s Portfolio

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Our current investments

Resources and Commodities

Technology

TMT

Consumer

Financial Services Transport and Utilities

Real Estate

Bashneft Vertically integrated oil company in Russia

Listed on MICEX-RTS; Market cap of US$ 11 bln

BNSA Full spectrum oil services company

RZ Agro Agricultural holding focused on wheat production

UPC A vertically integrated petrochemical holding

RTI Technology group specialising in defense and IT

MTS Leading telecom operator in Eastern Europe and Central Asia;

Listed on NYSE ; Market cap of US$ 20 bln

SMM Media and entertainment group

MTS India Indian telecom operator

Medsi Russia’s leading private healthcare operator

BPGC Electric grid company

Binnopharm Pharmaceutical company

Detski Mir Russia’s leading toy retailer

MTS Bank Retail and corporate bank

SG-trans Rail transportation group

Real Estate Real Estate portfolio including Intourist hotels

Our Portfolio*

*Scale is only indicative

India

51%**

6%**

35%**

3%**

2%** 3%**

**Estimated contribution to aggregated revenue in 2013

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Our portfolio drivers and strategic objectives

Clear strategy across each investment with near and medium term monetisation opportunities

Investment Strategy Financing Requirement Monetisation

Self funded Instruments In 2 / 3 years

Bashneft Grow production and retail. Maintain dividend; Potential IPO Cashflow Dividends; IPO

BNSA Restructure; upgrade fleet; improve efficiency; partial or complete sale Debt finance; Partial or full sale

UPC Expand production; joint venture opportunities with Alpek Debt finance/ partner N/A

RZ Agro Expand land bank through M&A opportunities LBO / Debt Dividend; IPO

MTS Grow data services; Maintain dividend Cashflow Dividend

SMM Develop into integrated media and digital assets holding Equity; Cashflow N/A

MTS India Grow data services; reach EBITDA breakeven in Q1 2015; Equity; cashflow N/A

Medsi Develop into an integrated private healthcare provider; expand clinic foot print

Cashflow; debt financing Partner; IPO

Binnopharm Expand product line; Attract strategic partnership LBO / Debt Dividend; Partnership

Detski Mir Expand stores; grow own branded product range; IPO in 2014/2015 Cashflows Dividend; IPO

MTS Bank Develop into retail bank Equity; Cashflow Partial sale

SG-trans Optimise and develop operations; Expand fleet through M&A LBO / Debt N/A

BPGC Expand if regulatory environment improves otherwise dividend Cashflow Dividend;

Intourist Seek partner or sale for hotels Cashflow Partial or full sale

Leader Invest (real estate)

Develop and manage existing land and property assets; focus on residential opportunities

Equity; Debt finance Dividend

RTI Grow defense business unit and restructure IT; Decrease leverage Cashflows Dividend

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Other SOTPs Cyclical Defensive

Portfolio balance and new opportunities

> Current portfolio well balanced between defensive and more cyclical investments – MTS and Bashneft

> But requires greater materiality from other assets to lessen dependence on two large parts

> Existing investments such as healthcare and retail have significant growth and scale capacity

> Portfolio strategy focused on growing existing sum of the parts as well as finding new material opportunities

> Our aim is to execute large deals but not compromise our IRR discipline

> New investments selection both scientific and opportunistic, but all opportunities have to with stand scrutiny and investment matrix

> Sistema does not have specific sector restrictions but prefers to remain in sectors where it has expertise or complementary assets or enter new sectors but with a specific co-investment partner

> New geographies can be considered but mainly from an R&D / synergies with existing assets or macro hedge perspective

Entry Point

Opportunistic > Special situations > Relationships

Entry Point

Science driven > Top down research > Portfolio

composition

Investment spectrum

Investment selection

No sector restrictions Predominantly Russia based

Screen against specific criteria:

EBITDA positive Stable regulatory scene

IRR above WACC Existing asset synergies

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4. Latest financials and developments

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FINANCIAL HIGHLIGHTS

> Revenues up 5.4% YoY to US$ 9.3 bln

> Adjusted OIBDA* up 14.8% QoQ and 0.3% YoY to US$ 2.4 bln, with an OIBDA margin of 26.4%

> Sistema’s net income amounted to US$ 1,329.7 mln, versus US$ 547.3 mln in 3Q 2012

> Net debt** at the Hold Co level amounted to US$ 785.1 mln as of September 30, 2013

US GAAP, US$ mln

3Q 2013: Financial Results

NET INCOME REVENUE Adjusted OIBDA*

* Adjustments of 3Q 2013 include effect from sale of Russneft at Hold Co and Belkamneft at Bashneft ** Including highly liquid deposits

Adjusted*

5.4%

9.2%

8 778 8 473

9 251

3Q'12 2Q'13 3Q'13

27.8% 25.1% 26.4%

0.3%

14.8%

2 438

2 130

2 445

3Q'12 2Q'13 3Q'13

6.2% 6.2% 14.4%

151.3%

7.6% 4.1% 7.2%

-0.8%

92.3%

547 529

3Q'12 2Q'13 3Q'13

1 330

143.0%

669 345

664

3Q'12 2Q'13 3Q'13

Strong financial results of all portfolio companies and substantial net income growth as a result of RussNeft sale

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Latest Portfolio Developments

Active portfolio management supported by excellent underlying asset performance

Active execution of M&A and

divestment strategies

Acquisition of Bashneft Oil Services (BNSA) for RUB 4.1 bln Large integrated in-house oil services company with c.100 drilling and 180 work-over rigs. Investment case Substantial turnaround potential through upgrade of fleet, diversification of client base and operational efficiencies. Strong outlook for the sector and opportunities to tie up with a strategic partner.

Acquisition of United Petrochemical Company (UPC) for RUB 6.2 bln Vertically integrated petrochemical group with four production plants in Bashkortostan Investment case Established production chain and clear access to feedstock. Attractive opportunity to develop high margin polyester; growing demand for petrochemical products. Strategic partnership with Alpek to develop PET and PTA production in Ufa.

RussNeft Sale of a 49% stake in RussNeft for US$ 1.2 bln. Proceeds received in 3Q 2013.

Excellent performance and strong outlook at

the asset level

Detsky mir

> 72% OIBDA increase YoY to US$ 35 mln

> Margins up 29 basis points YoY to 11.7%

> Plans to open c.40 stores in 2014

MTS Bank > OIBDA increase to US$ 30 mln > 48% YoY increase in loan portfolio to

individuals > 113% YoY increase of interest income from

retail loan portfolio to US$ 107 mln > Issued 1.8 mln of MTS Dengi credit cards

Bashneft

> Production up 6.5% YoY to 4.1 mln tonnes

> Launch of production at Trebs & Titov fields

> Double digit increase in QoQ revenue and OIBDA of 12.3% and 33.7% respectively

Medsi

> 91% YoY OIBDA increase to US$ 16 mln

> Margins up 50 basis points YoY to 23%

> 19% YoY increase in patient visits

Restructuring & Portfolio initiatives

RTI Restructuring to split RTI to lower the company’s debt and to focus RTI on defence (Concern RTI Systems), micro electronics (Micron) and IT integration (Nvision).

> Separation of Sitronics: IT integration and micro electronics to remain with RTI. Non-core assets to be transferred to Sitronics N. Repayment of Sitronics RUB 5 bln bonds

> Sistema acquired Sitronics N (non-core assets) – completed 4Q 2013

Real Estate Portfolio > Four clear streams: property management; property

development; Serebryaniy Bor development; engineering

> c. 600k sq.m already under management with further assets expected in 2014.

> Completed acquisition of 75% of MBI (Nagatino I-land developer) for c. US$ 21 million and provided a US$86 million bridge loan.

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322

1 907

820

1 020

540 25

- 275

- 200

- 176

- 167

-148 -65 -56

Cash as ofJune 30,2013*

Cashreceived in

3Q

Cash as ofSept 30,2013*

Strong Financial Position of Corporate Centre

*Including highly-liquid deposits ** Majority of loans to subsidiaries expected to be repaid by the end of 2013

Cash inflows Cash outflows

Excellent cash position and additional expected inflows provide strong 2013 dividend outlook

US$ mln

(1) Sale of RussNeft (net of tax)

(2) Dividends received

(3) Part of cash received from

Unirail

(1)

(2) (3)

(4) Dividends paid (RUB 9.264 bln)

(5) SSTL debt repayment and remaining 2013 installment for financing of

operations

(6) Short-term loans to portfolio companies **

(7) Short-term deposits

(8) Corporate centre debt repayment

(9) Corporate expenses, including interest, taxes and other

(10) Acquisition of MTS shares

(4)

(5)

(6)

(7)

(8)

Cash management in 3Q

> Substantial 154.7% QoQ increase in cash position

> US$ 1.58 bln cash inflows in 3Q 2013 from transactions and dividends

> Major outflows include dividends, short term deposits and Corporate Centre’s and SSTL’s debt repayment

> Majority of loans provided to subsidiaries in 3Q expected to be repaid by the end of 2013

Cash flows after the end of the reporting period

> Expected inflows from MTS and Bashneft – interim dividends c. US$ 900 – 950 mln in 4Q 2013

> Outflows of RUB 10.3 bln for BNSA and UPC acquisitions

Dividend outlook

> Excellent cash inflows expected to substantially increase 2013 dividends

> Total dividends likely to be composed of:

– increased “regular” dividends (compared to c.US$ 300 mln for 2012)

– additional dividends from RussNeft sale proceeds

(9) (10)

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KEY HIGHLIGHTS

> Sistema’s consolidated revenue increased by 5.4% YoY and by 9.2% QoQ

as a result of strong operating performance of Bashneft following an

increase in production volumes and higher oil prices, MTS’ growing

income from data services, the successful implementation of Detsky mir’s

development strategy and an increase in interest income at MTS Bank.

> The Group’s adjusted OIBDA in 3Q 2013 was up 0.3% YoY and 14.8% QoQ,

reflecting profitability growth across the Group’s portfolio companies.

Most of developing companies were profitable on the OIBDA level, in

particular MTS Bank and Detsky mir reported strong OIBDA, while SSTL’

adjusted OIBDA loss narrowed by 10.9% QoQ.

> Sistema’s adjusted consolidated net income was stable YoY and nearly

doubled QoQ as a result of strong results across all of the Group’s assets.

Consolidated net income attributable to Sistema increased significantly to

US$ 1.3 bln, reflecting recognised effects from the sale of Sistema’s stake

in RussNeft.

3Q 2013: Financial Performance Overview

Virtually all portfolio assets demonstrated OIBDA and net income growth in 3Q 2013. Bashneft, Detsky mir and MTS Bank delivered exceptional results. SSTL is on track to decrease OIBDA loss

3Q 2013 3Q 2012

Total revenue 9 251 8 778

Cost of sales, exclusive of depreciation, depletion and amortization shown separately below

(3 407) (3 247)

Cost related to banking activities, exclusive of depreciation and amortization shown separately below

(130) (107)

Selling, general and administrative expenses (1 050) (992)

Depreciation, depletion and amortization (795) (771)

Transportation costs (212) (252)

Impairment of long-lived assets other than goodwill and provisions for other assets

(40) (266)

Taxes other than income tax (1 893) (1 687)

Other operating expenses, net (82) (13)

Equity in results of affiliates 12 11

Effect from disposal of Russneft and Belkamneft 708 -

Operating income 2 360 1 453

Interest income 81 83

Change in fair value of derivative instruments (1) (1)

Interest expense, net of amounts capitalized (286) (315)

Foreign currency transactions losses (52) 99

Income tax expense (483) (383)

Loss from discontinued operations, net of income tax effect

(7) 8

Effect on disposals - 14

Non-controlling interest (281) (411)

Net income 1 330 547

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Corporate Centre Debt Management

HOLD CO LONG-TERM VS SHORT-TERM DEBT*

HOLD CO CASH POSITION** HOLD CO DEBT CURRENCY PROFILE*

DEBT MATURITY PROFILE*

KEY HIGHLIGHTS

> Corporate Centre debt decreased by 8.1% QoQ to US$ 1.6 bln following planned repayments.

> Cash position nearly tripled to US$ 820.2 mln and net debt amounted to US$ 785.1 mln. The main cash inflows include proceeds from sale of Russneft and dividends

from subsidiaries.

US GAAP, US$ mln

71% 91%

63%

29% 9%

37%

3Q 2012 2Q 2013 3Q 2013

Short-term

Long-term

35% 39% 33%

65% 61% 67%

3Q 2012 2Q 2013 3Q 2013

RUB

USD

591

132

392 490

2014 2015 2016 2017 and thereafter

1 694

322

820

152

-1 425

-785

3Q 2012 2Q 2013 3Q 2013

Cash position (Net debt)/ Net cash position

154.7%

Cash position rose by 154.7% resulting in substantial reduction in net debt

*Source: management accounts

**Including highly liquid deposits

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5. Assets overview

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56,1% 60,1% 61,6% 65,4% 68,4%

BashneftUfimsky

TAIF RusneftAngarsky

BashneftUfaneftehim

GazpromNeft Omsk

Item, US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 16 549 17 125 12 627 13 191 +5%

Adjusted

OIBDA 3 391 3 150 2 502 2 385 -5%

Debt 3 393 3 601 4 077 2 440 -40% CAPEX 877 890 650 734 +13%

Downstream > Refining volumes of 21 mln tonnes in 2012; Average refining depth 86% > Light-product yield 60%; Nelson complexity 8.55

Objectives

> Retain investment to support cash inflow from dividends at current levels and build up shareholders value

Upstream > Reserves: 1P 2bln; 2P 2.5bln; Reserve life of 18 years (1P); 192 fields > Production 15.4 mln tonnes in 2012 Trebs&Titov > C1+C2: 140.1 million tonnes, C3: 59.3 million tonnes > Production launch 2013; Peak production at 4.8 million tonnes in 2018 > Project CAPEX: US$ 4.5 bln Bashneft’s share

Overview

Bashneft - a vertically integrated oil company, 8th largest Russian oil producer and 6th largest Russian refiner by volume of oil products. Listed on MICEX-RTS (ticker: BANE, BANEP)

Operations

Oil & Gas: Bashneft (75% effective; 89% voting stake)

Strategy

> Expand upstream production through organic growth and M&A > Upgrade refinery complex to Euro 4 or Euro 5; Increase refining depth and light yield > Simplify shareholder structure

Monetisation

> Regular dividends > Possible IPO 2H 2014 / 2015

Sistema’s share

2009 2010 2011 2012

Bashneft’s dividends, US$ mln

677 903

1 709

649

12,2 14,2 15,1 15,4

2009 2010 2011 2012

Bashneft’s oil production, mln t

+6%

CAGR

Light product yield by peers, % (2012)

Source: Company data * Here and thereafter, annual financials presented as reported.

** Here and thereafter, debt is shown after intragroup eliminations.

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Telecom: MTS (53%)

> Listed on NYSE (ticker: MBT) and MICEХ-RTS (ticker: MTSI)

> Strong credit metrics and cash flow profile

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 12 319 12 436 8 994 9 289 +3%

Adjusted OIBDA 5 187 5 305 3 889 4 133 +6%

OIBDA Margin 42.1% 42.7% 43.2% 44.5% +1.3 pp

CAPEX 2 584 2 903 1 815 1 389 -24%

Overview

MTS is leading mobile- and fixed telecom operator in Eastern Europe and Central Asia. It operates in Russia, Ukraine, Belarus, Turkmenistan and Armenia with market cap of US$ 23 bln

1 026

1 284 1 412

2011 2012 1H 2013

Free cash flow, US$ mln

75% of FCF but not less then US$ 1 290

FCF for 1H 2013 is on track to outperform minimum amount of dividends per year

Operations

> Subscribers of 100 mln > Households passed of 12 mln > Pay-TV subscribers of 2.7 mln > Retail network of 4 063 stores > Joint project with MTS Bank – loan portfolio of US$ 437 mln

Objectives

> Retain investment to support cash inflow from dividends at current levels and build up shareholders value

Strategy

> Roll-out LTE/4G network

> Digitisation of fixed-line business (GPON project)

> Increase data products range and consumption

Monetisation

> Regular dividends

2009 2010 2011 2012

Sistema’s share

MTS’ dividends, US$ mln

1 023 1 000 1 013 1 007

69 71 70 72

50 57

62 65

51 52 57 56

38 39 39 40

2009 2010 2011 1Q 2013

MTS

Megaphone

Vimpelcom

Others

2Q 2013

Russian Market Wireless Subscribers – MTS Leading the Way

Source: Company data

25

Transportation: Financial Alliance & SG trans

Overview

Financial Alliance is a 50/50% JV which owns and operates Sistema’s interests in the railcar sector including SG-trans. The two companies will be merged 4Q 2012 – Jan 2014 into a single company under SG-trans brand with 50%/50% target ownership.

Operations

> 30,000 railcars operated; 15,000 LPG tanks; 13,000 oil products tanks, 2,000 gondolas.

> 33% of LPG market; 47% of LPG fleet of Russia > Main clients (by revenue): Bashneft , Novatek , Rosneft > 35% of fleet operated; 65% leased-out Objectives

> Develop into one of the leading railcar operators; participate in sector consolidation

Strategy

> Complete SG-trans and Financial Alliance merger under SG-trans brand by end of 2013/Jan 2014

> Increase railcar fleet through leasing and M&A opportunities; > Expand geography of freight operations into 1520 zone (Ukraine, Kazakhstan,

Belarus and the Baltic States) > Expand into other adjacent segments such as railcar repair business and

locomotive tractions market depending on Government privatisation/liberalisation plans

Company Rail Cars Age Type Product

SG-trans (50% effective) 30,000 18,8 Tank cars LPG and oil

products

Monetisation

> Sale or IPO from 2017 onwards

Rail car fleet in Russia in 2012, thousands

24

26

27

27

29

30

45

62

163

210

Transoil

Transcontainer

Novotrans

Rail Garant

RusagroTrans

Sg trans (+FA)

Neftetransservice

Globaltrans

FGK (RZhD)

UCL Rail

LPG production dynamics in Russia, mln t

10 11

12 13

2%

8% 5%

10%

2009 2010 2011 2012

Production volume (mln t) Growth of production

Rail Car tariffs per day in Russia, RUB

1 450

1 175

800

1 145 1 225 1 100

2011 2012 2013

Gondola

Tank

-4%

-45%

Source: Infoline, Rosstat, Company data

26

Retail: Detsky Mir (100% effective) Overview & Operations

> The Detsky Mir Group is the largest children's goods retail store network in Russia

> 229 stores of 299,000 sq.m space in 101 cities of Russia and Kazakhstan

> 34% of revenue in Moscow and 66% in Russian regions

> 98% brand recognition in Russia

> Online store with 66 cities of delivery

Key Financials

Objective

> Maintain and expand market leadership position through both organic and M&A growth

Strategy

> Expand store network by c.40 stores on annual basis; focus on hypermarket and supermarket store formats

> Increase operating efficiency (advanced category and price management, trade staff optimisation, SAP implementation)

> Develop multi-channel sales (in store pick-up, growth of e-commerce)

> Become advantaged consolidator due to accessible synergies and attractive acquisition currency'

Monetisation

> Dividends starting from 2013

> Sale or IPO in 2014 / 2015

15 16 17 19

30

2012 2013E 2014E 2015E 2020E

+10%

CAGR

Market volume of children products, US$ bln

229

163 126 107

84 299

135 64

150 66

Detsky Mir

Deti / Zdorovy Malysh

Korablik Dochki Synochki

Begemot

Stores

Retail space, k sq m

Comparison with peers by retail space, 3Q2013

Investment highlights

Source: Rosstat, Association of the Baby & Children’s Product Industry, Detsky Mir estimates

> Detsky Mir’s share in children goods market as of 1H 2013 amounted to 8.4% (c. 2 times higher than #2 player – Deti / Zdorovy Malysh)

> Market is highly fragmented (share of Top-5 players is less than 20%) with high share of non-organized retail (c. 20%)

> Both historical and projected double-digit growth on the back of increasing spending per capita

> New CEO Vladimir Chirakhov (ex-CEO of Korablik – 3rd largest player) joined in 2012

> New development strategy approved by BoD which assumes annual doubling of net profit till 2015

> New “state-of-the-art” concept created with support of the leading international agencies will be launched in December 2013 (at Mega Belaya Dacha in Moscow) which is expected to facilitate further LfL growth and customer loyalty

> 9m OIBDA increased several times year-on-year

> Like-for-Like sales growth in Sept-2013 reached 15%

Market leader in attractive sector with high growth potential

Strong new management team with extensive industry experience

Compelling track record in 2013

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 783 893 579 761 +32%

OIBDA 27 54 5 30 x6

Debt 125 99 137 208 +51%

27

Healthcare: MEDSI (75%)

Medsi Group of Companies is Russia's first national full range medical services provider in Moscow and other Russian regions.

Operations

> 1st by revenue in Russia and 1st by number of clinics in Russia > 4.9% of the Moscow private healthcare market > 29 clinics, 3 hospitals, 79 medical posts, 3 rehabilitation centres and 3 fitness clubs > Presence in 18 Russian cities, over 181,000 m2 of medical space > Moscow Government is a 25% stake holder in Medsi

Monetisation

> Possible sale of 25% stake to industry partner > Dividends starting from 2015 > IPO targeted from 2016 / 2017

Strategy

> Renovate legacy medical centres > Launch own R&D centre > Develop dentistry and children segments

Objectives

> Maintain and expand leading healthcare provider position

Overview

44 71 80

107 137

224

Bud zdorov Niarmedic Plus

Medicine EMC Mother&Child Medsi

Peers comparison by revenue, US$ mln

Market share in Moscow

1% 2% 2%

3% 4%

5%

689 730 796 898 983 1 076

207 253 297

332 381

432

102 106

110 113

118 123

109 125

143 160

181 203

2012 2013П 2014П 2015П 2016П 2017П

Obligatory medical insurance Legal commercial medicine

Not legal commercial medicine Voluntary insurance

CAGR

Healthcare services market, bln RUB

+11%

- - 24 14 18 18

54 69 70

80 106

108

2010 2011 2012

Voluntary insurance

Individuals

Corporate clients

Government contract

Other

198

224

Revenue by segments, US$ mln +48%

Source: BusinesStat, EIU, Rosgosstrakh report, World Bank

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 198 224 142 216 +52%

OIBDA 31 29 19 31 +62%

Debt 69 84 71 71 0%

28

Pharmacy: Binnopharm (74%)

Overview

Binnopharm is a Russian leading pharmaceutical company, which operates one of the largest Good Manufacturing Practice (GMP) compliant biopharmaceutical plants in Russia.

Operations

> One of the Russian largest GMP-compliant biological and pharmaceutical complexes with an area of 32,000 sq. m.

> Focused on development of drugs for treatment of socially important diseases (oncology, hematology, infectious and respiratory diseases), genetically engineered drugs and vaccines

> Currently produces 10 generic medicines, product portfolio is constantly expanding, major product – vaccine against viral Hepatitis B – Regevac B

39

74 74

2011 2012 9m 2013

Revenue, US$ mln Main segments (based on 2012 financials)

Distribution (55%) – mainly government contracts in hospital segment, distribution of own and third party medicines

Biotech products (35%) – mainly vaccine against Hepatitis B (Regevac B) supplied to state

Other products (10%) – generics used for treatment of hematology, oncology, infectious and respiratory diseases.

Monetisation

> Dividends starting from 2013 > Strategic partnership or IPO

Strategy

> Develop own portfolio of biotech products > Acquire product portfolios > Expand distribution business > Attract an international partner with sector expertise and financial resources > Launch export of Binnopharm’s own products

Objectives

> Build a top-5 Russian pharmaceutical company

75% 75% 74%

25% 25% 26%

2010 2011 2012

Internal production

Import

Market structure: import vs internal production

Market dynamics, bln US$

20 23 25 29 33 36

2010 2011 2012 2013E 2014E 2015E

+12%

CAGR

Source: Company data

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 39 74 54 74 +38%

OIBDA 1 16 20 14 -30%

Net income -4 2 11 8 -29%

Debt 7 21 12 23 +90%

29

Retail banking: MTS Bank (88%*)

Operations

> 139 proprietary points of sale nationwide and sales through MTS retail network of more than 4,000 stores

> Loan portfolio from joint projects with MTS of US$ 437 million with quarterly growth at 20-30% since first pilot MTS credit cards in 2012

> Currently Top-10 nationwide by new credit cards origination > 1.8 million of MTS Money credit cards issued as of 3Q 2013

Objectives

> Build a large retail bank with a strong brand and a market share of 10% in retail banking

Overview

MTS-Bank is a universal bank of federal scale with predominantly retail presence in more than 50 cities across Russia and ownership of East-West United Bank in Luxemburg, 25% owned by MTS.

Partnership with MTS

Apr 2011 May 2012 Sept 2013

Launch of MTS-Money project - PoS loans and credit cards distribution in the MTS retail network

Launch of PayPass – contactless payments. SIM cards equipped and MTS Money ccards are distributed in the MTS retail network

More than 1 mln issued cards Portfolio of US$ 363 mln

Strategy

> Expand retail business in conjunction with MTS utilizing synergies between the mobile communication and banking markets.

> Increase the share of high-margin products in the loan portfolio (‘mass retail’ and ‘affluent retail’).

> Build technological leadership in remote banking services for private individuals. > Develop SME & Retail cross-sale practice.

Monetisation

> Regular dividends upon MTS project maturity, possible IPO

4,9 5,5 6,2 7,1 8,1 8,9

2011 2012 2013F 2014F 2015F 2016F

Credit card operations in Russia, US$ bln

+13%

CAGR

11 871 13 754 17 492 21 529

26 498 5 551 7 811

8 207

10 366

12 228

179 201

223

245

267

2011 2012 2013F 2014F 2015F

Revenues in Russian retail banking sector, bln RUB

Deposits Credit products Transaction operations

+16%

CAGR

Source: Central Bank of Russia, IMF, Ministry of economic development, Rosstat, Lafferty, EIU *Effective stake, voting stake is 99%

US$ mln 2011 2012 9m’12 9m’13 9m%

Assets 6 958 6 977 7 410 7 388 -0.3%

Loan portfolio 5 097 5 596 6 074 6 083 +0.2%

Interest income 487 575 414 523 +26%

30

175 174 130 120 100 110 100-110

USA EU-25 Kazakhstan Argentina Canada Ukraine Russia

Cost of production (US$/mt)

Agriculture: RZ Agro Holding (50%) Overview

RZ Agro is a prime agricultural company controlled 50/50 by Sistema and certain members of the Louis-Dreyfus family and operating 5 farms located in 2 regional clusters in the South of Russia.

Operations

> Land bank of 89k ha with 90% under cultivation > 5 farms located in 2 regional clusters in the Rostov region close to major export

ports in Russia > Export-oriented production – grains (mainly wheat) and oilseeds > Significant storage capacity > Modernized infrastructure (weight-bridges, laboratory, geo satellite tracking) and

new equipment (c.40% of total park of combines) Rostov South cluster • 47,000 hectares • 2 farms • close to Azov sea port • 98% under freehold

Rostov East cluster • 42,000 hectares • 3 farms • 30% freehold • 70% long term leases

(maturity ~13 years)

Azov Port

Objectives

> Establish a large agricultural holding focused on wheat production

Strategy

> Consolidate over 200,000 hectares of prime arable land in neighboring regions > Develop new clusters in key grain producing regions of Southern Russia and Central

Black Soil > Increase operating efficiency by using advanced agricultural technologies

Monetisation

> Regular dividends, possible IPO

Geographical footprint

11,8 15,2 18

35

2010 2011 2012 2020

Wheat export volumes in Russia (mln t)

+9%

CAGR

Source: Company estimates, Russia’s customs services data

31

High Tech: RTI (84.6%)

Objectives

> Increase shareholder value and dividend flow > Decrease debt and develop international and government partnerships

Overview

RTI is a leading private defense contractor and one of Russia’s largest IT system integrators.

Operations

> RTI is comprised of three main business units – Defence solutions, IT-services and integration, and microelectronics.

> 38% of revenues from defence contracts; 42% from System Integration BU. > Key projects include: development of radar systems for the Ministry of Defence; system

integration for large corporations; construction of Moscow’s Intelligent Transport System

Strategy

> Defence solutions – maintain leadership through focus on integrated products and government partnership projects

> Microelectronics – develop export potential microchips, RDIF, smart cards and create partnerships with leading international producers

> IT-services – develop own software products, cloud services, multisensory networks and participate in integrated solutions of BU Defence solutions

> R&D – create R&D centers for each business line and shorten commercialisation to 2-3 years

Monetisation

> Dividends starting from 2013

Russia’ government defence spending, bln RUB

1 864 2 346

2 772 2 865

2012 2013 2014 2015

+15%

CAGR

RTI’s defense solutions BU is one of the largest contributors to company’s revenue and OIBDA.

Volume of security systems market, bln RUB

75 99

216

2011 2012 2016

+21%

CAGR

Security systems market is driven by government priority projects – Intelligent transport system, Safe city and other infrastructure projects, which RTI is actively developing

Source: Business monitor International, Frost&Sullivan, IDC, Own expert analysis

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 2 093 2 376 1 308 1 476 +13%

OIBDA 154 13 62 21 -66%

Debt 1 126 1 338 1 319 1 311 -1%

32

Energy: BPGC (79.2% effective; 92% voting stake) Overview

Bashkirian Power Grid Company is a large regional company providing electricity transmission services between the central part of Russia and the Urals and power transmission and distribution services to end-consumers in the Republic of Bashkortostan.

Operations BSK – transmission grids

> Transformer capacity of 6,000 MBA > Circuit length of 2,200 km > Power transmission of 21,6 bln kWt*h > Losses at 1.2%

BashRES – distribution grid

> Transformer capacity of 15,300 MBA > Circuit length of 85,700 km > Power transmission of 19,8 bln kWt*h > Losses at 5.9%

Objectives

> Maintain presence in case regulatory environment improves > Improve operational performance to maximise value of existing business

Monetisation

> Dividends starting from 2013 > Possible M&A consolidation if regulatory environment improves

Strategy

> Decrease distribution and transmission grids losses > Transition to RAB-regulation after 2015 > Realisation of Smart Grid project in Ufa till 2018 – intelligent meters, dynamical

grid management, regulated demand, increased safety and cost optimisation. > Assess sector M&A opportunities if regulatory environment improves

1

5

5

7

8

8

13

17

IDGC Sibir

IDGC North West

IDGC South

Volga IDGC

IDGC Privolzhie

IDGC Centre

BPGC

Lenenergo

EBITDA/Equipment capacity

0,26

0,3

0,3

0,39

0,47

0,55

0,62

0,62

0,64

IDGC Ural

IDGC Volga

IDGC Sibir

IDGC North West

BPGC

IDGC Privolzhie

Lenenergo

IDGC South

IDGC Centre

Average tarriff (RUB/kWt*h)

Net income margin

-3,50%

-0,70%

0,70%

1%

1,60%

1,70%

2,00%

2,50% 9,20%

Lenenergo

IDGC Sibir

IDGC Centre and Privolzhie

IDGC South

IDGC Centre

IDGC Volga

IDGC North West

IDGC Ural

BPGC

Source: Company data

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 388 373 282 300 +7%

OIBDA 99 129 122 123 +1%

Net income 20 24 28 59 +111%

CAPEX 83 66 79 57 -29%

33

Oil services: Bashneft-Services Assets (100%) Overview

BNSA is an oil services company focused on onshore drilling and work over operations, equipment servicing and manufacturing, transportation and construction. Includes 11 subsidiaries providing wide range of oilfield services

Operations

> Primarily operates in Volga-Urals, Komi, Khanty Mansiysky and Nenetsky Autonomous regions

> In 2012, the Company operated a fleet of 104 drilling rigs, 180 work-over rigs and more than 5,000 transportation vehicles.

> Largest contractor is Bashneft with a total share of drilling amounting to 52% in 2012

> Drilling and sidetracking > Well servicing and work-overs > Oilfield equipment servicing

> Transportation services > Construction of oilfield infrastructure > Construction and maintenance of oilfield roads

Business segments

Monetisation

> Partial or full sale through strategic partnership or IPO

Strategy

> Upgrade fleet, improve efficiency

Objectives

> Unlock hidden value through restructuring and transformation > Increase OIBDA margin to > 15% - average for integrated oil services players

17 143 20 764

24 640 25 930

2009 2010 2011 2012

Oilfield services market size in Russia, US$ mln

+15%

CAGR

2 564 2 908 3 088 3 302 3 546 3 900

1 601 1 806 2 181 2 479 2 786

3 143 596

666 693

714 758

840

736 778

806 832

845 869

2012 2013F 2014F 2015F 2016F 2017F

Development directional drilling Development horizontal drillingExploration drilling Prospecting drilling

Drilling market size dynamics for 2013-2017, US$ mln

+10%

CAGR

2 827 2 982 3 158 3 344 3 543 3 753

1 031 1 124 1 162 1 201 1 244 1 288 495 585 712 849 977 1 118

2012 2013F 2014F 2015F 2016F 2017F

Workover Well servicing Completion

+7%

CAGR

Workover and well servicing market size dynamics for 2013-2017, US$ mln

Source: REnergyCo, Company data *Management accounts

Financials* > 2012 revenue of US$ 810 mln; OIBDA of US$ 6 mln > Estimated 2013 revenue at around US$ 810 mln; OIBDA above US$ 30 mln

34

Petrochemicals: United Petrochemical Company (98%)

Plant Product Capacity, kt

Ufaorgsintez

Low-density polyethylene 95

Polypropylene 130

Phenol 75

Acetone 46

Tuimazinsky Gas Processing Plant LPG, naphtha 184

Shkapovsky Gas Processing Plant LPG, naphtha 168 Bisphenol-A plant Bisphenol A 65

Objectives

> Leverage UPC’s existing platform to build one of the leading petrochemical groups

Overview

UPC is a vertically integrated petrochemical group which owns four enterprises located in the Bashkortostan region: Ufaorgsintez, Tuimazinkoye and Shkapovskoye Gas Processing Plants and Bisphenol-A plant.

Operations

> Benefits from an established production chain with feedstock sourced from Bashneft's Ufa refineries, the Tuimazinskoye and Shkapovskoye Gas Processing Plants

> Feedstock - benzene, NGL, LPG, naphtha, paraxylene (for future PTA/PET production), off-gases (for future ethylene cracker)

Strategy

> Develop attractive product lines in polyester with industry partner Alpek > Start PTA/PET production in 2017 > Develop ethylene cracker and polymerization in 2018

Monetisation

> Regular dividends 2017 onwards

Established production chain

2%

11%

7%

15%

5%

20%

-1%

11%

4% 5%

10% 15%

2010 2012 2014 2016 2018 2020

Petrochemicals growth GDP growth

Annual world GDP and petrochemicals growth, %

Source: Company data *Management accounts

Financials* > No annual 2012 consolidated financials as the company’s structure only finalised in April

2013 > Estimated 2013 consolidated revenue at around US$ 600 mln; OIBDA above US$ 50 mln

Bashneft’s feedstock

UPC

Ufaorgsintez Tuimazinsky GPP Shkapovsky GPP

Bisphenol-A plant LPG

35

Telecommunications: SSTL (56.7%)

Sistema Shyam TeleServices Ltd (SSTL) is a mobile operator in India.

Operations

> CDMA operator in India working under MTS brand; operates in 9 circles > 3 carrier slots and technologically neutral licences > Total subscriber base of 9.6 mln customers > 60% Data market coverage > 40% Population coverage

19

79

109

17%

30%

36%

2010 2011 2012

Non-voice revenue, US$ mln

% of total revenues

SSTL’s non-voice revenues

Objectives

> Establish operator of choice for data > Achieve EBITDA breakeven by Q1 2015

Strategy

> Reduce geographical exposure and debt – completed Q2 2013 > Develop data segment - focus on smartphone business in Tier 2/3 cities, offer

value low cost voice along with data, Pricing Data and voice bundles competitively against the incumbents.

Monetisation

> Assess accretive M&A opportunities subject to regulatory change

6%

28.7%

India APAC average

Smartphone penetration*

Overview

SSTL Data Card Subscribers (‘000)

584

1 339

1 783

2010 2011 2012

3,044 6,642 7,233 Number of BTS EVDO

+45%

CAGR

Source: Company data, UBS research *Without non-cash one-off items

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 262 303 231 162 -30%

OIBDA* -402 -270 -220 -113 -

Debt 1 574 1 047 1 537 621 -

36

Media: Sistema media assets

Three segments of the Russian media market: TV cable channels, TV series production, mobile and online content services

> TV cable channels – [TK Stream:] TOP-3 player in Russian market, 9 cable channels servicing 9.2 mln subs, stable and profitable business

> TV series production – [RWS:] TOP-5 player in Russian market, library of more than 1500 hours, 100 hours of annual production, own production facilities, profitable, albeit volatile, business

> Mobile and online content services – [STREAM:] leading online VOD provider and telecom companies partner in mobile content services, growing profitable business

Financial Results

Strategic guidelines

Development into a leading media player in Russia

> Attain a strong presence in new media

> Focus on growing online and mobile platforms

> Leverage existing assets across new platforms

> Ride on the new media consumption patterns

Business description

Russian online media market, $ bn

Russian total media market, $ bn

7,9

5,62,4

2,6

1,8

4,4

1,6

2,51,8

1,2

0,6

0,4

1,6

0,9

61,5

40,0

26,3

12,4 E-comm&Appstr

TV

Print press

Internet advertising

Cinema

Games

Radio

Music

3,0

0,8

0,3

0,8

0,3

2,8

0,2

44,7

37,2

14,2

12,2 1,2

Social networks

Search services

E-commerce

Theme based resources

Application stores

Source: PWC Global Outlook 2013-2017, J’son&Partners, own estimates

CAGR 12-17

2013 results

> Launched mobile content services business

> Brought new management team

> Improve margins in existing businesses

> Optimized corporate centre costs

12%

8%

8%

10%

20%

2%

7%

26%

Segment

2012 2017

2012 2017

69%

23%

23%

20%

25%

CAGR 12-17 Segment

US$ mln 2011 2012 9m’12 9m’13 9m%

Revenue 102 82 59 64 +8%

OIBDA -32 20 13 18 +46%

Debt 46 33 39 29 -24%

37

Real estate projects Overview

Sistema’s real estate portfolio under management currently amounts to ~600,000 sq.m. of commercial and residential objects.

> Development and renovation; > Commercial and residential: ~300,000 sq.m. of

residential and ~200,000 sq.m. of commercial objects

Objectives

> Unlock hidden value within Sistema’s real estate assets through focused development and management strategy

Monetisation

> Dividend or divestment after maximising value

Real Estate Portfolio

Leader Invest

Property Management

Moskapstroy

Mosdachtrest > “Serebryaniy Bor” development > ~22 ha* of land and ~44,000 sq.m. of residential

estate

> Engineering > Technical documentation; planning permissions;

Strategy

> Management of existing real estate for Sistema’s and subsidiary use > Leasing out properties to third parties > Transfer of certain properties for development projects > Sale of facilities not fit for the Corporation's purposes or for development > Attract partners in the more complex projects

Lobachevsky

Ex hotel Sport

i-Land

Current projects

> Residential, business class flats, Moscow; c.90,000 sq.m > Development commenced in 2013

> Residential, Moscow; c. 29,000 sq.m > Development to commence 2014

> Commercial business park, Moscow > 32 hectares** > Stage 2 development of 146,000 sq.m of office space > Sistema acquired 75% in MBI (i-land developer) in 3Q 2013 for

c.US$21 million. > Provided RUB 2.8 billion bridge financing repayable back to Sistema

fully by end 2013

*In ownership ** Long term lease

Real Estate – Moscow Market

> Currently under consideration – to be established

11%

23% 30%

14% 9%

2%

11% 16%

36% 33%

8% 4% 2% 1%

40-50 sq m 50-70 sq m 70-90 sq m 90-110 sq m 110-130 sq m 130-150 sq m >150 sq m

Supply Demand

… is supported by strong demand for “business class” properties in central Moscow

Restoring trend of commissioning of residential properties in Moscow…

mln sq m 4,6 4,8 4,8

3,3 2,7 2,0 2,1 2,4 3,0

2005 2006 2007 2008 2009 2010 2011 2012 2013E

38

Thank you for your attention!