01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№1

September 2005, Moscow

UTK’s strategy – UTK’s strategy – increased focus on value-added servicesincreased focus on value-added services

Georgy Romsky,

CEO of “UTK” PJSC

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№2

September 2005, Moscow

Volgograd

Astrakhan

Rostov-on-Don

Elista

Stavropol

Krasnodar

Maikop

CherkesskNalchik

Vladikavkaz

ECONOMIC

•Industrial output (`04) – RUR 567 bln (+28%)

•Well-developed business sector – 475 ths enterprises (`04) (+16.8%)

•Growth rate of average wages (`04) – +24.6%

•Volume of foreign investments in 2004 – USD 689 mln (+3.5%)

•Powerful production basis and developed service sector

GENERAL

•UTK’s licensed territory - 520 ths sq km

• Population – 18.8 mln people

• High density of population – 38.6 people per one sq km

•Strategic geopolitical location

• Main health resorts of the country – great amount of tourists

Compactness and high economic potential of UTK’s licensed territory

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№3

September 2005, Moscow

Key business highlights

GENERAL

• UTK occupies a leading position in the Southern Russian telecommunications market

• Share in the fixed-line regional market (`04) – 89.4%• Head count (1h 05) – 38.3 ths people

NETWORK DEVELOPMENT

• Total installed capacity (1h 05) – 4.2 mln lines• Total equipped capacity (1h 05) – 4.0 mln lines• Digitization rate of local networks (1h 05) - 60%• Intra-zonal network digitization rate (1h 05) - 90%

FINANCIAL

• Revenue (`04, RAS) – RUR 16, 753 mln (+24.1%)• EBITDA (`04, RAS) - RUR 4, 287 mln (+25.3%)• Revenues from value-added services (`04, RAS) - RUR 882 mln (+73.4%)

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№4

September 2005, Moscow

UTK’s strategy is aimed at increase of its market share in the value-added regional market to at least 50% and at retention of fixed-line market share at the level of no less than 82%

Further development of multi-service networks, digital cable TV, IP-telephony, Internet services Upgrade of the Company’s data networks and construction of new network nodes Organization of Call-centers and deployment of intelligent network servicesIntroduction of a uniform billing system

Technical Policy

Marketing Policy Introduction of a unified tariff system for all customers and cross-subsidies reduction Introduction of flexible tariff plans for “bundling services” Introduction of additional traditional telephony services Reorganization of the Company’s sales system and optimization of its tariff policy

Economic Policy:Growth in local tariffs Staff optimization and drastic costs reductionReorganization of subsidiaries and selling of non-core businessesOptimization of the balance sheet and payablesSteady improvements in UTK’s business efficiency and reliability

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№5

September 2005, Moscow

Capital investments, RUR mln

Strengthening of the Company’s market positions allows to reduce its investment program

Share of investments in the lucrative market segment for advanced technologies will be increased

Traditional telephony will be funded in the amount sufficient to finish the investment projects launched in 2003-2004

1 400 2 370 2 400 2 1032 172

8 70510 098

1 561

02000400060008000

100001200014000

2002 2003 2004 2005F

Borrowed funds

Own funds

39,2%60,8%

78,6%

21,4%

80,8%

19,2%47,5%

51,2%

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№6

September 2005, Moscow

468165 127

4 0003 9283 567

3 270

17,519,1

21,1 21,5

0

1 000

2 000

3 000

4 000

5 000

2002 2003 2004 2005F

0

5

10

15

20

25

Number of basic telephone sets, ths setsSolvent waiting list, ths applicationsTelephone density, basic telephones per 100 inhabitants

In 2003-2004 UTK was the first among mega-regional telecom entities in terms of the subscriber base growthUTK is the first among mega-regional telecom entities in terms of intra-zonal network digitization rate UTK is the second among mega-regional telecom entities in terms of local network digitization rate

Enlargement of the Company’s subscriber base contributes to revenue growth from all types of telecom services

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№7

September 2005, Moscow

92,0

79,1

36,0

78,671,0

82,786,4 82,8

44,2

92,8 83,592,8 92,0

47,5

80,0

0102030405060708090

100

Local fixed-lineservices

Long-distancefixed-line services

Value-addedservices

Other services Total, fixed-lineservices

2003

2004

2005

UTK occupies a leading position in the Southern Russian telecommunications market

Maintaining the Company’s positions in all segments of the fixed-line market Speeding up the development of value-added services

UTK’s market share for fixed-line services

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№8

September 2005, Moscow

11 89413 949

17 323

11 27015 81613 195

1 506754629

8,7%

5,4%5,3%

0

4000

8000

12000

16000

20000

2002 2003 2004

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

Positive trend in revenue growth

compared to the UTK’s operating costs

8 218

16 753 17 617

10 53213 506 13 627

8 02313 35910 453

6 059

2 160 2 509 3 053 3 394 3 990

26,3%23,8% 22,6% 22,6%

20,3%

0

5000

10000

15000

20000

2001 2002 2003 2004 2005F

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

Revenue, USD mln Costs, USD mlnOperating profit, USD mln Operating margin, %

RAS

IFRS

Stable increase in operating profit

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№9

September 2005, Moscow

2 235

3 160

4 288

5 360

347

3 420

1 562

2771 080988

27,2%30,8%

25,3% 25,6%

30,4%

0

4000

8000

2001 2002 2003 2004 2005F

0%

5%

10%

15%

20%

25%

30%

35%

EBITDA * Net profit, RUR mln EBITDA margin, %

3 4744 611

4 482

823-66722,8

38,8%

24,9% 25,9%

-4000

0

4000

8000

2002 2003 2004

0%

10%

20%

30%

40%

50%

* EBITDA as profit before income tax, deprecations and amortization

41%8% 25%

25%

RAS

IFRS

EBITDA and net profit dynamics, RUR mln

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№10

September 2005, Moscow

73,7

76,2

79,7

77,477,4

70,072,074,076,078,080,082,0

2001 2002 2003 2004 2005F

Cost per 100 RUR of revenues

66,9 75,595,4 104,7

83,4

0

50

100

150

2001 2002 2003 2004 2005F

Lines in use per 1 employee

790 901 909 1 007

74 493105 350

86 27058 983

0200400600800

1 0001 200

2002 2003 2004 2005

020 00040 00060 00080 000100 000120 000

Operating profit per 1 employee per year, RUR

Operating profit per 1 line per year, RUR

3 1613 900 4 367 4 389

322 568

459 408414 447

236 064

0

1 000

2 000

3 000

4 000

5 000

2002 2003 2004 2005

0

100 000

200 000

300 000

400 000

500 000

Telecom revenue per 1 line per year, RURTelecom revenue per 1 employee per year, RUR

Dynamics of business efficiency indicators

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№11

September 2005, Moscow

Reorganization of business processes in accordance with CRM concepts

Segmentation of services’ market offers

Numerous subscriber base and infrastructural resources of “UTK” PJSC

High growth rates of revenues from value-added services

Increasing share of “UTK” PJSC in the value-added regional market

269507

882

1 3793,8%

7,9%

5,4%

2,7%

0

500

1000

1500

2002 2003 2004 2005F

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

Revenues from VAS, RUR mlnRevenues from telecom services

1,1 1,52,2

2,9

32,0%

44,1% 47,5%

36,0%

0,0

1,0

2,0

3,0

4,0

2002 2003 2004 2005F

0,0%10,0%20,0%30,0%

40,0%50,0%60,0%

Revenues of value-added marketUTK's s share

UTK’s strategy – increased focus on value-added telecom services

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№12

September 2005, Moscow

26,7

7,7

26,1

48,4

8,7

34,8

61,5

109,9

0

120

2004г. 2005г. 2006г. 2007г.

Subscriber base increase, ths ports

Number of subscribers, ths ports

Availability of considerable reserves for revenue increase and growing share in the regional market of value-added services

Rapid development of the following services: Internet access, access to information and entertainment resources, VPN services, other services of data transmission network Market capacity growth, increase in profits from existing users, switch over of subscribers from alternative operators

Dynamics of xDSL subscriber base growth

01000111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100010100101000101001010001010011101010001110001010010100010100101000101001110101000111000101001010001010010010001010011101010001110001010010100010100101000101001110100111000101001010001010010100010100111010001000111000101001010001010010100010100111011000111000101001010001010010100010100111010100011100011101010010100010100101000101001110101000111000101001010001010010100010100111010100011100010100101011001001010010100010100111010100011100010100101000101001010001010011101010001110001010010100010100111001101000101001110110001110001010010100010100101000101001110101000111000101001010001010010100010100101010011101010001110001010010100010100101000101001110101000111000101001010001010010100010100111000111010100111000101001010001010010100010100111010100011100010100101000101001010001010011101100011100011101000010100101000101001010001010011101010001110001010010100010100101000101001110101000111000100010101010100101000101001010001010011101010001110001010010100010100101000101001110010001110001010001110101010010100010100101000101001110101000111000101001010001010010100010100111011000111000101001010101010101001000101001010001010011101010001110001010010100010100101000101001110101000111000101001010101010101010100010100101000101001110101000111000101001010001010010100010100111010011100010100101010101010101110000101001010001010011101010001110001010010100010100101000101001110110001110001010010010101010101010101000101001010001010011101010001110001010010100010100101000101001110101000111000100101010101010101010100101000101001010001010011101010001110001010010100010100101000101001110100101010101010101010100101010001110001010010100010100101000101001110101000111000101001010001010010110101010101010101010101010100101001110110001110001010010100010100101000101001110101000111000101001101010101010101010101010100010100101000101001110101000111000101001010001010010100010100111010101010101010101010101010100011100010100101000101001010001010011101001110001010010100010100101101010101010101010111010100010100111010100011100010100101000101001010001010011101100011100011010101101010110101110101010100101000101001010001010011101010001110001010010100010100101000101010101010111010101010110011101010001110001010010100010100101000101001110101000111000101101010101010101010101010001010001010010100010100111010100011100010100101000101001010001010101010101010110101011011001110101000111000101001010001010010100010100111011000111000101010101010101010111110010100010100101000101001110101000111000101001010001010010100

№13

September 2005, Moscow

THANK YOU FOR YOUR TIME !

Any statement made or opinion expressed in the presentation by UTK, including any slides shown, are those of UTK only and not Brunswick UBS. Brunswick UBS was not involved in the preparation of these materials and Brunswick UBS assumes no responsibility for the presentation.