Rostelecom · RUS:RTKM

Rostelecom — Investor Day (June 2012)

13 slides from Rostelecom's investor day presentation, Jun 5, 2012

  1. Slide 1: Rostelecom Analyst Day

    Rostelecom Analyst Day JUNE 5, 2012 En route to a services company model: success on key strategic initiatives Alexander Provotorov, President & CEO www.rt.ru

  2. Slide 2: 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: ƒ This presentation has been prepared by OJSC Rostelecom (the “Company”). This presentation is strictly confidential to the recipi

  3. Slide 3: Key global trends: Telecom, IT and content convergence

    Key global trends: Telecom, IT and content convergence Commu Hardware / IT- Corporate Content / Infrastructure nication Software Services Services VAS TRADITIONA BT DT L TELEFONICA TELECOM COMPANIES TRADITIONA CISCO L HP IBM IT- PROVIDERS GOOGLE CONTENT MICROSOFT PROVIDERS APPLE From fixed- …to… a g

  4. Slide 4: Building the foundations to lead in a convergent ICT world

    Rostelecom: building the foundations to lead in a convergent ICT* world Universal Telecom / IT Operator Integration and modernisation 9 Universal, state-of-the-art and multi-standard network • Unified Russia – wide strategy 9 Fully integrated player • Operational integration 9 Clear, coordinated str

  5. Slide 5: Key strategic priorities

    Key strategic priorities 1 Integration & cost optimization 2 Network modernization 3 Federal full-scale mobile coverage 4 Bundle offers and up-sell potential 5 Cloud & IT services – new growth opportunities 5 www.rt.ru

  6. Slide 6: Integration: becoming one company

    1 Integration: becoming one company 9 Fixed networks: migration to a single full IP network Integrated 9 Mobile networks: upgrade of existing 2G networks and focus on development of infrastructure universal 3G and LTE infrastructure 9 Unified IT systems: billing, customer care and management 9 Centr

  7. Slide 7: Network upgrade: deploying next generation networks

    Network upgrade: deploying next generation networks 2 to provide next generation services Infrastructure Products and services ¾ All-IP fixed network ¾ Unified federal packages ¾ Backbone capacity increase ¾ Services Up-sell ¾ Multi-standard mobile network development ¾ Mobile data offering and VoIP

  8. Slide 8: Leveraging country-wide presence to provide full-scale mobile operations

    Leveraging country-wide presence to provide full- 3 scale mobile operations Key levers Development of own infrastructure – 3G networks licenses in 69 regions ++ MVNO agreement with Scartel and BIG3 ++ Participation in upcoming 4G licenses auctions += Data-focused federal mobile operator 3G network d

  9. Slide 9: Fixed Broadband: from solid present into bright future

    4 Fixed Broadband: from solid present into bright future Today Action Plan Tomorrow Long-term impact ¾ Strong position in B2C ¾ Launch of last mile ¾ Ability to offer high ¾ Enhanced customer segment modernization project speed broadband and loyalty to migrate xDSL exciting Pay-TV and ¾ 22% penetrat

  10. Slide 10: Cloud & IT services: competitive advantage to become the unchallenged leader

    5 Cloud & IT services: competitive advantage to become the unchallenged leader ¾ E-Government Servicing 9 Federal Infrastructure the 9 70 out of 83 regional governments subscribed Government 9 Over 200,000 local authorities to be reached in the next 3-5 years ¾ Housing services and utilities 9 Over

  11. Slide 11: Investment case – capitalization growth and structural changes

    Investment case – capitalization growth and structural changes ¾ LSE listing ¾ Illimination of cross – ownership with Svyazinvest and decrease of number of shares Clear outcome from ¾ Svyazinvest’s assets consolidation (SkyLink, Central structural changes Telegraph, Bashinformsvyaz, etc.) ¾ Consider

  12. Slide 12: Appendix

    Appendix 12 www.rt.ru G Rostelecom

  13. Slide 13: Shareholders' structure after the merger with Svyazinvest

    Shareholders’ structure after the merger with Svyazinvest Today Tomorrow State Property Agency State stake Other telecom State stake assets 53,2%1) >50%1) Minority 100% Shareholders >40%1) 25%+1 Operational ~X%2) management (treasury shares) Mobitel 99,99% 2,7%2) 100% Stock option plan 37,5%1) 6,6%3

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