About the company

Rostelecom (“the Group” or “the Company”) is a major Russian telecommunications provider, with points of presence (“PoPs”) in every region in Russia. On the basis of its advanced telecommunications network consisting of approximately 500,000 km of backbone infrastructure plus last mile connection and a fibre to the building or fibre to the home (“FTTx”) network Rostelecom is providing access to 34 million subscribers. The Company organizes the business by two primary customer groups – residential customers (i.e., individuals) and corporate customers (i.e., legal entities, Russian Government agencies and entities under direct and indirect control of the Russian Government, telecommunications carriers and resellers that purchase our interconnection services), which represented 51% and 49% of total revenue, respectively, for the year ended December 31, 2012.

The business is centred on providing integrated telecom solutions including local and intra-zone telephone services, international long-distance (“ILD”) and domestic long-distance (“DLD”) services, mobile voice, data services, broadband Internet access services and Pay-TV services to broad base of customers in all regions of Russia.

Rostelecom had 27.1 million local fixed-line voice subscribers, 13.6 million mobile voice subscribers, 9.2 million fixed-line broadband subscribers and 6.6 million Pay-TV subscribers at the end of 2012. The Group generated RUB 321.3 billion of consolidated revenues, RUB 118.6 billion of OIBDA (36.9% of revenues) and RUB 35.2 billion of net income for the twelve months ended December 31, 2012.

Company’s ordinary shares were included in the Large Cap Segment of the MSCI Global Standard Indices and MSCI Russia Index, effective from September 1, 2011. Current weight in MSCI Russia of 1.97%

Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard & Poor’s respectively, both with a ‘Stable’ outlook.

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