1) CTC Media is a leading Russian broadcaster with key growth drivers including the fast growing Russian TV ad market, audience share gains for its channels, and expanding technical penetration. 2) The presentation outlines growth strategies for each of CTC Media's channels, including investments in programming to increase ratings among target demographics. 3) CTC Media is preparing for Russia's transition to digital broadcasting by modernizing equipment and digitalizing its content library in order to participate in future multiplexes.

1. 2011 Capital Markets Day
Key Growth Drivers
Anton Kudryashov
Chief Executive Officer

2. Russian TV Ad Market in a Global Context
TV ad market CAGR
18.0%
8.0% 18%
18.0%
Developing markets grow much faster than 14%
14%
6.0%
6 0%
developed markets 12.0%
11%
11% 10%
8.0%
4.0% 3%
Russian TV ad market growth outpaces 6.0%
3%
2.0%
emerging markets g
g g growth 0.2%
0.2%
0.0%
0.0%
CAGRR 2005-2011
2005-2011
CAGR CAGR 2011-2013
CAGR 2011-2013
Developed markets
Developed markets Emerging markets
markets Emerging markets
E Russia
Russia
Russia entered the top-9 TV ad markets in 2010 Russia will become the 5th largest TV ad market in 2013
USD billions USD billions
65 62.5
60
30 56.5 30
#1 in Europe
18.4 19.0
20 20
14.7 13.2
10.1 9.4
10 6.2 10 7.1 6.7 5.9 5.5
5.4 5.1 6
4.6 4.2 4.9 4.4
3.5
35
0 0
0 0
Japan
Japan
Italy
Italy
China
Russia
France
Mexico
China
France
Russia
Mexico
Brazil
Brazil
USA
UK
USA
UK
Germany
Germany
G
G
Sources: ZenithOptimedia, Company’s estimates
1

3. TV Ad Market Growth is Accelerating
Ad spend as % of GDP Free-to-Air TV Ad Market Growth
USD billions
%
12
3.2 2 9 3.0
2.9
2.4 9
2.4
1.9 1.7 5.5
1.7 1.6 6
1.6 1.4 4.4 4.2
1.1 3.5
0 8 0.8
0.8
0.8 0.7 0.7
0 7 0 70.5 0 6
0.6 0.6 0.6
06 06
0.5
3
0.5
0.30.2
0.0 0
egovina
Slovenia
Moldova
Serbia
huania
Georgia
CEE Median
Russia
Poland
Ukraine
Belarus
2007 2008 2009 2010 … 2015F
Bosn &
nia
R
Lith
M
P
U
G
B
Herze
2008 (pre-crisis) 2010
Sources: ZenithOptimedia, Company’s estimates
2

4. CTC Growth Drivers
Focus on ratings
Audience share dynamics
Proposed new target audience 14-44 in 2012
Audience share, % Stable 6-54 share
14.0% 13.0 – 14.0%
12.6%
14-44 share growth
11.9% ~ 12.0%
12.0% Investments in programming
All All
10.0% 14-44 14-44 Power ratio will remain high
All All
6-54 6-54
8.0%
Better alignment with advertisers’ demand
2010 2015F
Increase of technical penetration
3

5. Domashny Growth Drivers
Audience share dynamics
Crisp positioning and identity
F25-60 Audience share, %
Investments in programming
6.0%
4.0 - 5.0%
4.5% Increase of technical penetration
4.0% 3.1% Increase of power ratio driven by:
2.0% Audience share growth
0.0% Decrease of average viewers’ age from 48 to 43
2010 2015F
4

6. DTV Growth Drivers
Audience share dynamics Optimal programming mix is identified
25-54 Audience share, %
Investments in programming
4.0% 3.03.5%
- 4.0%
Intensified marketing efforts
2.1% Increase of technical penetration
2.0%
2 0%
Increase of power ratio driven by:
Audience share growth
0.0%
2010 2015F
Decrease of average viewers’ age from 46 to 42
5

7. Further Footprint Expansion in Russia
CTC Domashny DTV
Technical penetration Technical penetration Technical penetration
86.1%
~ 86%
95.6%
~ 96% 80.1%
~ 80%
93.7% 81.6%
72.5%
72 5%
2010 2015 2010 2015 2010 2015
Plan to acquire 40 regional stations within the next 5 years for total amount of $90–100 mln
6

8. In-
In-house Production: An Important Part of Our Channels’ Success
We are focusing on developing own production…
Tailor-made content is the cornerstone of CTC’s
programming
i
No market for ready-to-use content
CTC average
Critical competitive factors prime time
Secured access to branded content (prime time) audience share
in-house
Maintain control over programming costs & produced content
processes 13.1% Margosha series (adaptation of LaLola format)
Branded content monetized via different media
segments and territories vs.
… and long-term relationship with 3rd party producers CTC average
prime time
Stable and predictable pricing audience share
Options for further episodes 12.6%
Right of first look for new p
g products
Ensure high ratings of acquired content
(bonus-rating system)
Acquisition of full rights
Daddy’s Girls (original sitcom)
7

9. Successful Performance of Channel 31 in Kazakhstan
Positive
P iti revenue and market share dynamics
d k t h d i Significant i
Si ifi t improvement of OIBDA margin since 2008
t f i i
USD millions USD millions
12.2%
13.5% 3.0 10.4% 14.0%
20.0 15.0%
10 8%
10.8% 2.0
9.0%
15.0
10.0% 1.0
6.2% 1.0 1.5 4.0%
10.0
0.0
5.0% -0.5
-1.0%
5.0
50 10
-1.0
10.5 9.3 11.9
0.0 0.0% -2.0 -4.3% -6.0%
2008 2009 2010 2008 2009 2010
Revenue Market share OIBDA OIBDA margin
Growing market shares & profitability due to
strengthening programming grid & cost optimization
8

10. Opportunities for CIS Expansion
Promising TV advertising market
2nd largest in the CIS ($374 mln in 2010)
15-20% CAGR expected in 2010-2015
Ukraine
Cultural fit
Promising TV advertising market
$64 mln in 2010
Expected to double during next 5 years
Belarus
Reasonable asset prices
Cultural fit
9

11. CTC-
CTC-International: Increasing CTC Media’s International Brand Awareness & Value
Present
Number of subscribers
Subscribers, thousands
1,200
200
1,200 1,100
2011
150
900
900
100
600
50
300 33
33
00
2010
2010 … 2015F
2012
10

12. New Media: We Are Wherever Our Viewers Are
Up to 80 mln Internet users by 2014 More time with our viewers
100 30% 30:00
79 23:43
80 69 25% 26:00
60 20:51
60 51 20% 18:59 22:00
46
20:26
40 15%
18:59
18:00
20 10% 14:00
0 5% 10:00
10 00
2010 2011 2012 2013 2014
0% 6:00
15-24 25-34 35-44 45-54 55+
Internet households in Russia
Internet household penetration in Russia Reach,% Time spent, hours
Increasing adoption of connected TV Mobile internet penetration growth
4000
3500 120
3500 100
3000
3000 100
2500
2500 80 71
2000 1600 60
1500 43
40 31
1000 22
500 20
0
0
2010 2011 2012 2013
2010 2011 2012 2013 2014
IPTV households in Russia, thousands Mobile Internet monthly audience mln people
audience,
Smart TV's in Russia, thousands
Sources: PwC Global Media Outlook, GFK, FOM, J’son Partners, ComScore Digital
Europe 2010, Company’s estimates 11

13. Digitalization – We are Preparing to Enter the Second Multiplex in 2017-2019
2017-
First multiplex Second multiplex Third multiplex
Launch in 2015-2016 Launch estimated after 2017 Launch estimated after 2020
Includes 8 federal channels 9 channel slots are available DTV is likely to participate
and 1 regional channel
18 channels applied
CTC Media channels are not
CTC and Domashny are
included
likely to participate
Preparing for digitalization by modernizing broadcasting equipment &
digitalizing content library
12

14. Fully-
Fully-Integrated Broadcaster with Clear Strategic Objectives
CTC
Channel
Domashny
New media
N di and DTV
Channels
In-house
CIS content
operations production
CTC- In-house
International sales
function
13