Boris Podolsky, CFO of CTC Media, presented on delivering shareholder value at the 2011 Capital Markets Day. CTC Media has achieved exceptional profitability with OIBDA margins above 35% through a stable cost structure and investing in programming. The company generates strong cash flow, converts over 70% of OIBDA to cash, and intends to increase dividends while also returning cash through acquisitions. Management incentives are aligned with shareholders through an emphasis on long-term equity incentives tied to performance. For full-year 2011, CTC Media expects around 20% revenue growth and an OIBDA margin of 34-36%.

1. 2011 Capital Markets Day
Delivering Shareholder Value
Boris Podolsky
Chief Financial Officer

2. Exceptional Profitability by Broadcast Industry Standards
700 46.9% 46.7% 50%
43.8% 41.7% 45%
600 640 36.7% 40%
500 35%
506 601
400 472 30%
25%
US$ mln
300 371 280
220 211 221 20%
200 174 15%
10%
100
5%
0 0%
2006 2007 2008 2009 2010
Operating Revenues OIBDA (bef ore one-off items) OIBDA margin
Sustainable OIBDA margins above 35%
1

3. High Levels of Cash Conversion
200 84% 90%
180 72% 80%
67% 186 186
160 66% 63% 70%
140 158
60%
120 133 50%
US$ mln
100 117
40%
80
60 30%
40 20%
20 10%
0 0%
2006 2007 2008 2009 2010
Operating Cash Flow % of OIBDA converted
Over 70% of OIBDA is converted to cash flow
2

4. Investing in Business Development and Returning Cash to Shareholders
450 419
400
350
$515 mln of net acquisitions
300
of businesses since 2006
250
186 186
200 CapEx of 2.5% of revenues
US$ mln
158 133
150 117 134 on average annually
100
40 42 Dividends of $ mln in 2010
$80
50 26
0
2006 2007 2008 2009 2010
Dividends Acquisitions
CapEx Operating Cash Flow
Intention to pay $100 million in cash dividends in 2011
3

5. Expanding Distribution Network to Drive Advertising Revenue Growth
Net acquisitions of regional stations in Russia
$97 million of net regional
40 35
35
stations acquisitions since 2006
q
30
25 22 27 stations acquired
US$ mln
20 15
14
15 11
Added over 500 affiliates
10
5
0 4 0
3 5
3 0
2 5 2
5
3
2 0 1
1 5 1
1 0
5
0
0 6
2 0 0
2 8
0
2 0 0
2 9 1
0
2
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2006 2007 2008 2009 2010
+0.8 pp +0.1 pp +3.2 pp +3.0 pp
Technical + $100 mln in
$
penetration +6.6 pp +6.2 pp +5.4 pp +5.2 pp advertising
growth, y-o-y* revenues
+6.6 pp +7.4 pp +4.1 pp
* 2007: CTC + Domashny
2008-2010: CTC + Domashny + DTV
Technical penetration translates into additional revenue
4

6. Stable Cost Structure…
Costs as % of revenue* Costs as % of total operating expenses*
OIBDA
Margin*
46.9% 46.7% 43.8% 41.7% 36.7%
70%
66%
61% Other 20% 16% 18% 20%
58% 59% 58% 22%
60% 13%
11% 8% 6%
9% 8% 6%
12% 13% 3% 7% 5% 4% 4%
50% 2%
3% 4% Advertising and 6% 5%
3% 3% 4% 4% 13% 13% 11%
5% 4% 8% promotion 12% 11%
40% 7% 8%
7% 6%
30% General &
administrative
20% 39% 55% 59% 58% 59%
34% 35% 55%
32% 33% Salaries and
10% benefits
0%
Amortization of
2006 2007 2008 2009 2010 programming rights 2006 2007 2008 2009 2010
(*) Excluding non-recurring items
…and up to 50% of variable costs
5

7. Investing in Programming to Drive Long-Term Audience and Revenue Growth
Long-
Target aud.
g Target aud.
g
share 12.9% 11.3% 11.8% 12.2% 11.9% 100
share 1.8% 2.2% 2.1% 100%
700 100%
600
80% 80 80%
Ad revenue
500
493 60% 60 60%
400 425 49 Amortization of
US$ mln
US$ mln
399 369 progr. rights
300
327 40% 40 40%
41 44
U
200 Amortization of
20% 20 20% progr. rights/Ad
100 173 172 28 revenue
125 139
99 16 14
0 0%
0 0%
2006 2007 2008 2009 2010
2008 2009 2010
Target aud.
120 1.3% 2.4% 2.8% 2.8% 3.1% 100%
share
100
80%
80
78 76 60%
US mln
60
59
S$
54 40%
40
30
20%
20
32 33
23 25
16
0 0%
2006 2007 2008 2009 2010
6

8. Rising Shareholder Returns
450%
400% +350%
CTC Media
350%
300%
250% +213% RTS Index
200%
150%
+70% Nasdaq
100% Composite
p
50% +24%
0% MSCI Europe
Media
-50%
CTC Media significantly outperforms country and industry indices
7

9. Management Incentive Program Aligned with Shareholders’ Interests
Short-Term Long-Term
Cash Equity
Incentives
I ti Incentives
I ti
Corporate targets Performance-based
P f b d
2010: options KPIs 2010:
• OIBDA margin • Revenue growth above
• Total revenues Russian TV ad market
• Audience share growth
th
• MSCI European Media
Index outperformance
• ROCE
Functional targets
Time-based options:
• 4 years
Project targets • 25% vesting annually
Long-
Long-term equity incentives represent over 80% of the fair value of the top
g y
management annual compensation
8

10. To Conclude…
OIBDA margin exceptional by industry standards
Strong cash generation and low CapEx requirements
Investments in the development of th b i
I t t i th d l t f the business remain th priority
i the i it
Intention to increase dividends in absolute terms annually in absence of large scale M&A
High return on capital employed
g p p y
Strong balance sheet with no debt ($177 mln net cash position at December 31, 2010)
Commitment to deliver superior shareholder returns
9

11. Full-
Full-Year 2011 Outlook
Approximately 20% total operating revenues growth in ruble terms*
OIBDA margin of 34%-36%
Capital expenditures (excluding acquisitions) of $25 million
* (when adjusting the 2010 revenues for the commission payable to Video International for
direct sales of CTC Media’s advertising inventory in Russia)
10