Financial review

Net operating cash flow rose 13% by the end of 2012 to RUB 96.2 billion.

Net cash used for investment activities decreased 24% by the end of 2012 to RUB 87.5 billion. This decrease is linked to the use of investment funds in acquiring 71.8% of the shares in OAO NTK in 1Q 2011.

The decrease in the amount of net cash received from financial activity by the end of 2012 was linked to Rostelecom’s acquisition of 3.86% ordinary shares in OOO Mobitel, but also the buyback of 28.2% of shares in OAO NTK.

The Group’s total debt rose 24% year-on-year to RUB 214.4 billion. More than 98% of the Company’s total debt was ruble-denominated as of 31st December 2012.

Rostelecom’s net debt, as of December 31, 2012, was RUB 203.1 billion, which is 1.7x and the Group’s OIBDA margin as at the end of 2012.