CTC Media, Inc. Investor Presentation

October 2014

A Leading Independent Broadcasting and Content Company in Russia From Private TV Network to Public Media Holding

Launch of CTC- international in Germany, North America and the Baltics Development of in- house creative Telcrest Investments production center Limited acquired a 25% CTC Media was stake in СTС Media Launch of Peretz from Alfa Group founded as Story International in First Initial Public Offering Belarus became a shareholder Launch of Domashniy.ru Communications on NASDAQ Launch of CTC- of CTC Media international in women’s portal USA

1989 1994 2002 2005 2006 2008 2009 2010 2011 2012 2013 2014

Launch of CTC Love Launch of CTC- Channel on cable Launch of CTC- international in and satellite Launch of international in Launch of CTC Israel Domashny Network Acquisition of DTV Kazakhstan, Network Launch of Peretz (rebranded to Peretz , Establishment of International in in 2011) , , CTC Media’s Kyrgystan , Thailand internal advertising Acquisition of and sales house Launch of Sweet me Channel 31 in uplink to HOT BIRD ‘Everest Sales’ brand together with Kazakhstan and a TV KupiVip company in Moldova CTC and Domashny Launch of received digital Videomore.ru Launch of Russian licenses online content TV series in the US portal on the HULU subscription service

2 We Fully Capture the Value Chain by Being Integrated TV Broadcaster

CTC – target audience All 10-45

BROADCASTING ( RUSSIA) Domashny – target audience Females 25-59

Peretz – target audience All 25-49

CTC Love – target audience All 11-34

Kazakhstan Channel 31 FREE-TO-AIR (CIS) Moldova СTС Dixi

Free-to-air AD SALES InternalTV ad maket advertising growth sales1 house Everest

International version of CTC channel CTC-INTERNATIONAL (PAY-TV) International version of PERETZ channel

Ctc.ru, Domashniy.ru, Peretz.ru

TRANSMEDIA Online video portal Videomore.ru

Mobile, smart TV, second screen, transmedia projects 3 Delivering on Strategic Priorities

STRATEGIC GOAL: To become a leader in creation, management and distribution of content on all potentially monetizable platforms

1 2 3 4 Prioritize content Grow combined Expand digital Diversify revenue and synergies audience share offerings streams

. Launched in-house . Launch of CTC Love to . Launch of the first e- . Digital media revenue up creative production center cover a further, commerce project by a TV 55% in RUB in 9M 2014 complementary audience company in Russia and continues to grow . Centralized content segment purchases to secure . Channels' websites . Launch of Russian TV synergies, longer content . New Head of Domashny became full scale series in the US on the life span and sharing upgrades Channel’s platforms HULU subscription among platforms content and programming service . New approach of . Centralized programming monetization throw to avoid cannibalization partnerships . Further steps towards more local content

4 Content Strategy

Centralized content acquisition and content production function

– Consolidate acquisition and production in the In-House Creative Production Center – Increase buying power and negotiate better terms – Maximize control over rights for all platforms – Capitalize on management and monetization of rights

Centralized programming and technical signal management

– Create one library – Focus on inventory control – Manage content utilization for all channels – Avoid cannibalization between the channels

5 5 Driving Operating Efficiency

Create centralized structure with the potential to integrate more businesses, channels and platforms

. Avoid multiple divisions and departments; consolidate under the top management . Strategy core to CEO responsibility . Digital integrated with – and a continuation of – the TV business – Take multiplatform approach to content creation and distribution – Consolidate all channels’ digital activities in one division . Already centralized marketing, corporate communication, strategic programming and content acquisitions

Keep the smart balance between the optimization and growth

. Focus on developing and retaining young talent . Make all operations profitable . Significant increase of efficiency: no growth of headcount while growing business and launching new channel

6 Combination of Growth, Profitability and Dividend Yield

EFFICIENCY / RETURN CASH GROWTH + PROFITABILITY + TO SHAREHOLDERS

Operating in Europe’s third OIBDA margin of 32.5% in 2013, Over 50% cash dividend payout largest1 well above European TV broadcasters average More than 5% dividend yield in Forecast for Russian TV 2011, 2012 and 2013 advertising market to grow up High Group power ratio above 1.5x 1-3% in 2014, CTC Media strive compared to rivals due to attractive Current dividend yield to outperform the market with audience profiles2 approximately 12%, the highest its Russian advertising revenue among European media Strong cash flow generation and companies net cash position

7 Source: (1) Zenith Optimedia, April 2014 estimates (2) Kommersant newspaper, 16 April 2013 (FY 2012 results). Power ratio = national TV ad revenue share / audience share in “all 4+” age group. Power ratio demonstrates relative effectiveness of audience monetization. We Operate in Attractive Markets Russia Population = 143.7 million Belarus Armenia, Georgia, 2013 TV Ad Market = US$ 4.9 billion* Russian-speaking population = 7 million Azerbaijan Russian-speaking population=10.4 mln Kazakhstan Population = 17.1 million 2012 TV Ad Market = US$ 128.6 million* Russian-speaking population = 12.3 million Kyrgyzstan North America Russian-speaking population = 3.6 million Russian-speaking population = 3.5 million Thailand Israel Russian-speaking tourists = 1.3 million (2012) Russian-speaking Germany population = 1.5 million Russian-speaking population = 6 million Moldova Since February 2012 Population = 3.6 million CTC-International an 2012 TV Ad Market = US$ 17.1 million* is available on the HOT BIRDTM 8 satellite (W/E Europe, North Africa, Middle East and Central Asia Baltic states coverage) Russian-speaking population = 4 million

8 Sources: Video International, Russian Association of Communications Agencies, ZenithOptimedia, CIA World Factbook, Rosstat, Russkiy Foundation Note: (*) All TV Ad Markets figures are net of VAT We Are the Largest Independent FTA-Broadcaster in Russia with Premium Audiences

Combined audience shares, % 28.6 (all 10-45 demographic)

14.7 13.4 10.9 7.8

3.7 Q3 2014

Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding

29.2

15.9

11.7 10.9 9.1

4.1

Q3 2013 9 Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding Growing Audience Shares In “All 10-45” Most Commercially Attractive Demographic

Audience shares1, %

Q3 2013 Q3 2014

20.8

18.6

13.5 13.7

11.6 10.9 10.9 10.3 9.2

7.8 7.7 7.7

4.9 4.2 4.0 3.8 3.4 3.0 3.1 2.4 2.2 2.4 2.2 2.2 1.9 1.9 2.1 2.0 2.0 1.8 1.9 1.7 1.5 1.7 1.6 1.6 1.4 1.0 0.7 0.6

2 TNT Channel CTC Russia 1 NTV Channel 5 Ren TV Russia TV-3 Pyatniza *** Domashny Peretz Disney * Russia 2 U ** 2X2 TV Centr Zvezda Russia Other One 24 K

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 10 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 Growth Company Operating in a Dynamic Market Digitalization in Russia Is on Its Way

First multiplex Second multiplex

. Significant cost optimization have been achieved as a result of active positioning of CTC Media. We consider this to be a huge achievement that will have a significant impact on current and future CTC Media Group financial performance in the long-term period

. The rollout of second digital multiplex has been modified as follows:

. Instead of 100% infrastructure roll-out in 2015, beginning 2H 2014 RTRS launches broadcasting in cities with population more than 50 thousand people in the second multiplex . Over the period 2015-2018, RTRS constructs broadcasting infrastructure in cities with population less than 50 thousand people, but does not put this infrastructure into operation . Starting from 2019 RTRS put into operations broadcasting units in cities with population less that 50 thousand people.

Multiplex Expenses*, RUBm

P&L, RUBm (net of VAT) 2014 2014-2019 Cash, RUBm (net of VAT) 2014 2015-2018 Current ~185 OPEX savings Current ~575 CASH savings

Savings ~700 >5000 Savings ~300 >4000

* per CTC + Domashny in Multiplex, annualy 12 Part of cash payments are capitalized as prepaid expenses; to be written off to PnL in 2019 and subsequent years Russian TV Ad Market Has Significant Potential for Further Development…

Russian TV ad market was #7 in the world and #3 Free-to-air TV ad market growth1 in Europe in 20131 and is expected to maintain its position by 2016

64.3

22.5 328 298

257 263 16.4 219

bln 11.8 5.4 186 5.4 RUB bln RUB 152

US $ US 5.0 129 140 117 109 96 95

42

USA Japan China Brazil UK Germany Russia 2004 2008 2009 2010 2011 2012 2013 TV Ad Market Total Ad Market

13 Note: All TV Ad Markets figures are net of VAT Sources: (1) Zenith Optimedia, as of April 2014, Company’s estimates …Due to Relatively Low Ad Spend as % of GDP and Underleveraged Consumer

Ad spend as % of GDP¹ Consumer and mortgage loans as % of GDP 2

1.7 1.6 1.6 1.4

1.2 61% 66% 63% 1.0 1.0 66% 0.9 0.9 1.0 0.9 38% 0.8 0.8 42% 0.7 0.7 0.6 0.6 23% 0.6 0.5 0.5 0.5 20% 7% 0.4 21% 23% 16% 18% 18% 3% 16% 17% 16% 13% 13% 10% 12% 8% 9%

1% 5%

UK

USA

Russia

Austria Poland

Ukraine

Belgium

Bulgaria

Slovenia Germany

CEE AverageCEE 2008 2013 Consumer loans / GDP Mortgages / GDP

Sources: (1) ZenithOptimedia, Company’s estimates 14 (2) National Central Banks

TV Is the Most Attractive Advertising Medium in Russia

 TV is the only medium with truly national reach  Important social and cultural platform  More free-to-air networks than in other countries  High quality free-to-air content offering

Ad spend in Russia by media segment1 (%)

48% 48% 43%

30% 31%

22% 18% 12% 11% 10% 6% 6% 5% 5% 2% 1% 0.4% 2%

TV Internet Press Outdoor Radio Other 2004 2013 2018F Sources: (1) Russian Association of Communication Agencies, Video International 15 Internet Is Growing Not at the Expense of TV Usage

But in “All 10-45” demographic TV viewership was down 4% TV Usage (Minutes per day, All 16+)

251 249* 246 243 243 232 226 222

188 210 166

142 170 TV 133 134 169 Radio

Internet

Other 66 58 51 45 46 44 37 40 23 47 41 13 39 42 Minutesper day 5 6

2006 2007 2008 2009 2010 2011 2012 2013

Source: TNS Gallup Media, Russia 16 * Change in TNS Measurement panel in 2012 increase proportion of 2+ Tv-sets per household

We Continue to Deliver Strong Top and Bottom-line Growth…

280 271 832 805 256 766 247 730 41% 220 221 680 39% 211 38% 38% 41% 37% 574 532 174 32% 32% 32% 33% 427

104

273

71 26% 26% 27% 181 22% 21% US $ mln $ US 21% 21% US $ mln $ US 16% 20% 16%

2004 2005 2006 2007 2008** 2009** 2010 2011** 2012** 2013** 2004 2005 2006 2007 2008** 2009** 2010 2011** 2012** 2013**

(Comparable-basis) total operating revenues*** OIBDA* OIBDA margin*, % Peers average OIBDA margin****,%

Notes: (*) OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming and sublicensing rights. OIBDA margin is defined as OIBDA divided by total operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial measures (see reconciliations on page 48) (**) 2008 OIBDA and OIBDA margin are adjusted to exclude a $232.7 million charge arising from the impairment of the intangible assets of DTV Group in Russia, Channel 31 in Kazakhstan and a broadcasting group in Moldova; 2009 OIBDA and OIBDA margin are adjusted to exclude an $18.7 million charge arising from the impairment of the broadcasting licenses in Russia and a $28.6 million stock-based compensation expense recognized in conjunction with the previously announced settlement by CTC Media of litigation brought by it against its former CEO; 2011 OIBDA and OIBDA margin are adjusted to exclude a $106.4 million charge arising from the impairment of several regional broadcasting licenses and the Peretz Network goodwill; 2011 OIBDA and OIBDA margin are adjusted to $82.5 million non-recurring charge arising from the impairment of analog broadcasting licenses; 2013 OIBDA and OIBDA margin are adjusted to $29 million charge arising from the impairment of the Company’s production unit in the fourth quarter 2013 (see reconciliations on page 46-47) (***) Comparable-basis operating revenues are non-GAAP financial measures provided in order to facilitate period-to-period comparisons of CTC Media’s results following the implementation of the new model of advertising sales starting from 2011 (see reconciliations on page 48) (****) Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A. Modern Times Group, Antena3, ITV plc, Metropole , Mediaset, ProSiebenSat, Mediaset Espana, TF1 17 …and to Diversify Our Lines of Business

69% 16%

10%

Sublicensing 2004 3Q 2014 ~0.5% Channel 31 ~3.0%

Digital Media ~1.0%

CTC- International ~0.5%

Russian FTA Russian FTA Broadcasting Broadcasting 100% 95%

18 Fragmentation of Russian TV Market Presents Opportunity for Niche Channels Growth

Audience shares, all 10-45 demographic

55%

50% Top 3 state-controlled channels

45%

40%

35% 1st tier channels

30%

25% 2nd tier channels

20%

Non-FTA and regional channels 15%

10% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3 2014

Notes: top 3 state-controlled channels: Channel One, Rossiya 1, NTV; 1st tier channels: CTC, TNT, Ren-TV; 19 2nd tier channels: TV-3, Domashny, Peretz, Rossiya K, Channel 5, Rossiya 2, , Zvezda, Pyatniza, Rossiya 24, Ю, 2x2, TV Center, Disney, RU TV

Audience Share Performance

. CTC channel inventory was fully sold out in Q3 11.6 11.4 2014 10.3 10.4 . Launch of new premier series with an audience share higher than the channel’s average audience share for the season: 80s (12.9%), Family Business (12.1%), Angelica (11.3%) . CTC channel maintained its place as the third most- watched broadcaster in Russia in its target demographic of 10-45 yo viewers Q3'13 Q3'14 9M'13 9M'14

. Audience share growth from 3.1 in Q1 2014 to 3.7 in Q3 2014 3.9 3.7 3.5 3.4 . Successful changes in the programming schedule in primetime slots . Launch restyle of a new logo and updated visual format with a new motto “Forever for women” in October . Despite some audience share loss year-on-year Domashny continued to rejuvenate and its share Q3'13 Q3'14 9M'13 9M'14 ratio of Woman 25-50 to Woman 25-59 improved from 0.91 in 2013 to 0.98 in Q3 2014

2.4 2.3 . Peretz increased its audience share from 1.9% in 2.1 2.1 Q2 2014 to 2.1% in Q3 2014 . The channel remained affected by extensive news flow about Ukraine with its reality and action positioning and male skewed audience

Q3'13 Q3'14 9M'13 9M'14 . Repositioning and programming grid improvement are on track

20 CTC Improves Its Target Audience Profile in Commercially Attractive Demographic

21 Sources: TNS Russia Domashny Improves Affinity in Its Target Demographic

22 Sources: TNS Russia Peretz Improves Audience Profile In Commercially Attractive Young Adults Demographics

23 Sources: TNS Russia Stable Consumer Goods Client Base with Large Multi-National and Local Advertisers

Ad spending on CTC Media’s Russian channels by category

* 3Q 2013 3Q 2014 1 Food and beverages 24% 26% ■ Vast majority of CTC Media’s Russian advertisers are 2 Cosmetics and personal care products 19% 22% basic consumer goods focused 3 Other goods 15% 16% 4 Pharmaceuticals and vitamins 17% 15% ■ CTC Media’s advertisers’ budgets split: 5 Telecoms 8% 7% 6 Auto 3% 5% . 80% multinationals, 20% local companies 7 Detergents 4% 4% 8 Appliances 4% 3% 9 Retail 5% 3% ■ 38% of ad revenue** came from top 10 clients in Q3 2014 10 Finance 1% 1%

Notes: (*) National advertising sales for CTC, Domashny and Peretz Networks 24 (**) Total Russian advertising sales for CTC, Domashny and Peretz Channels Developing in Attractive CIS, International and Transmedia Markets Strong Market Positions in Kazakhstan

Channel 31, Kazakhstan (all 6-54 demographics)* Significant growth in Kazakhstan revenue and OIBDA margin

Power ratio up to 1.2x from 1.0x

18% 15.2% 14.7% 25.8 13.2% 11.6% 11.2% 23.6 31.0% 16.9 17% 16.2%

11.9 14% 10.0 12% 30.4% 11%

17.4% 21.8% US$ mln US$

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Target audience share Market share Revenue OIBDA margin

22.0 20.3

#2 among Top-10 Kazakh channels

14.9 14.1 14.3 13.5 12.2 Q3 2013 10.4 Q3 2014 8.9 8.1 8.1 7.1 6.1 6.3 4.4 3.7 3.7 3.3 1.8

Channel 1 Channel 31 KTK NTK Astana Kazakhstan Channel 7 RTR Habar Mir Planeta (KZ) ** 26 Source: (*) TNS Central Asia ** Measured since March 1, 2014 Plus We Continue to Expand Internationally…

Increasing CTC Media’s international brand awareness & value through CTC-international and Russian-speaking Peretz-International population December 2009 – Dish May 2011 – Time Warner; RMG North America October 2011 – Cablevision 3.5 mln 2013 - Comcast

Israel June 2011 – Hot; Yes 1.5 mln

Germany March 2011 – Kartina TV IPTV 6 mln

Baltic States October 2011 – Viasat Broadcasting 4 mln

Kazakhstan February 2012 – Digital TV; Icon TV 12.3 mln

Europe February 2012 – uplink service HOT BIRDTM North Africa Middle East Central Asia

Kyrgyzstan April 2012 – Europe-Asia cable and satellite network 2.5 mln

Armenia Georgia May 2012 – Caucasus cable networks 10.4 mln Azerbaijan

Thailand July 2012 – Thai Media Export cable network

Belarus October 2013 – Beltelecom (Zala), MTIS, Cosmos-TV cable networks 7 mln

Total Russian-speaking population 47.2 mln 27 Digital Partnerships and Transmedia Projects

■ Successful launch of 7 transmedia projects with total revenues of 124 million rubles - PepsiCo, BEKO, Unilever (Lipton, Dove), Novartis (Theraflu), Beiersdorf (Nivea), HERO Rus (Corny)

Special Projects

■ First ever in Russia second screen App to be launched simultaneously with premier TV series of Youth League (Molodezhka) in November’ 2014

. Odnoklassniki – The project successfully launched in September 2014 . Game Insight – A unique for Russia project with games developer for mobile and social platforms to be launched in December 2014 . Yandex – The partnership to be launched by the end of 2014 Partnerships . Vkontakte, Rambler&Co – Projects are under active development

28 …and Enter New Platforms to Be Wherever Our Viewers Are

29 Strong and Flexible Financial Position Q3 and 9M 2014 Financial Highlights

Three Months Nine Months Ended September 30, Change Ended September 30, Change (US$ 000’s except per share data) 2013 2014 in USD in RUB 2013 2014 in USD in RUB Total operating revenues 171 084 158 567 -7% 3% 572 386 529 126 -8% 4% Total operating expenses (126,897) (114,307) -10% 0% (436,620) (398,107) -9% 2% OIBDA 52 337 50 629 -3% 9% 160 739 152 040 -5% 7% OIBDA margin 30.6% 31.9% 28.1% 28.7% Net income/(loss) attributable to CTC 46 655 31 595 -32% -24% 106 836 89 472 -16% -5% Media, Inc. stockholders Diluted earnings per share $0.30 $0.20 -33% $0.68 $0.57 -16%

31 Q3 and 9M 2014 Balance Sheet and Cash Flow Highlights

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

As of December 31, As of September 30, Nine months ended Nine months ended (US$ mln) (US$ mln) 2013 2014 September 30, 2013 September 30, 2014

Cash at beginning of period 55.2 30.6 Cash and cash equivalents 30.6 29.8

Net cash provided by operating activities 64.5 55.0 Short-term investments 180.3 122.0 including acquisition of progr. and sublic. rights (282.5) (273.2) Total assets 971.0 828.2 Net cash used in investing activities 22.2 33.1 including goodwill 135.3 112.4 including CapEx (3.5) (3.8) including broadcasting licenses 59.7 41.4 including receipts from/(investments in) deposits 26.2 36.9

including programming rights 294.0 258.3 Net cash used in financing activities (111.5) (87.0)

1 Working capital 311.9 249.5 Cash at end of period 27.8 29.8

Stockholders’ equity 734.1 615.1 CapEx (3.5) (3.8)

CapEx as % of total revenue 0.6% 0.7% Net cash position2 207.5 149.0 Free cash flow3 61.0 51.2

Notes: (1) Working capital = current assets - current liabilities (2) Net cash position = cash and cash equivalents + short-term investments - total debt (3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets 32 High Levels of Cash Conversion and Return on Capital Employed

% of OIBDA Converted to Operating Cash Flow Return on Capital Employed*

2007-2013 average ROCE: 30% 36% 200 186 186 187 33% 32% 180 158 158 29% 160 27% 27% 27% 133 140 116 120 100 84%

80 72% 69% 66% 63% 60 62% 40 47%

US$ mln US$ 20 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Operating Cash Flow % of OIBDA converted

Note: (*) ROCE excludes one-off non-cash asset impairment charges recognized in 2008, 2009, 2011, 2012 and 2013 33 Strong Management Team

Yuliana Slashcheva Nikolay Surikov Viacheslav Murugov Chief Executive Officer Chief Financial Officer Chief Content Officer • Joined CTC Media in 2013 • Joined CTC Media in 2012 • Joined CTC Media in 2005 • 20 years in high growth media • Almost 20 years experience in • Over 15 years in media industry related businesses finance • Acclaimed producer of numerous • Vast executive experience • Previously with Ernst & Young, award winning TV shows • Experience in creating and VTB and MTS

managing digital development projects

Lilia Omasheva Sergey Petrov Julia Moskvitina Chief of Operational Efficiency and Chief Broadcasting Officer Chief Commercial Officer Organizational Development • Joined CTC Media in 1995 • Joined CTC Media in 1999 • Joined CTC Media in 2013 • 20 years experience in TV industry • 15 years experience in advertising • 10 years experience in advertising sales industry

34 CTC Media Shareholder Structure

CTC Media, Inc.

Number of common shares outstanding 155,762,166 (as of October 29, 2014)

39% 25% 36%

Telcrest Investments Modern Times Group Free float MTG AB Limited

Shareholder of CTC Media Shareholder of CTC Media IPO on NASDAQ in June 2006 since 2002 since 2011

Independent Directors

Mathias Hermansson Angelo Codignoni Tamjid Basunia Director Co-Chairman Director

Irina Gofman Alexander Pentya Werner Klatten Board of Directors Director Director Director

Jørgen Madsen Lindemann Timur Weinstein Jean-Pierre Morel Co-chairman Director Director 35

Appendix Growing Audience Shares In “All 10-45” Most Commercially Attractive Demographic

Audience shares1, %

9M 2013 9M 2014 20.1

18.6

12.8 12.6 12.0 11.7 11.4 10.4

9.0 8.5 8.5 8.0

5.1 4.2 4.3 3.9 3.0 3.1 2.9 2.5 2.3 2.2 2.2 2.2 2.0 2.1 2.0 2.0 1.8 1.7 1.7 1.7 1.5 1.5 1.6 1.4 1.5 0.9 0.8 0.6

Channel TNT CTC Russia 1 NTV Ren TV Channel 5 TV-3 Russia Russia 2 Pyatniza *** Peretz Disney * Domashny TV Centr U ** Zvezda 2X2 Russia Other 2 One 24 K

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 37 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 Audience Shares In “All 4+” Demographic

Audience shares1, %

Q3 2013 Q3 2014

19.1

17.5

13.5 13.6 12.7 12.6 12.0 11.3

7.4 7.3 7.0 6.0 5.8 5.7 5.0 3.8 3.7 2.9 2.9 2.7 2.6 2.7 2.5 2.4 2.5 2.2 1.7 1.8 1.9 1.6 1.7 1.6 1.2 1.1 1.4 1.4 0.9 1.0 0.8 0.8

2 Channel Russia 1 NTV TNT CTC Channel 5 Ren TV Russia 24 TV Centr Domashny TV-3 Zvezda Russia 2 Peretz Disney * Pyatniza *** Russia K U ** 2X2 Other One

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 38 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 Audience Shares In “All 4+” Demographic

Audience shares1, %

9M 2013

9M 2014 18.5

17.3

14.4 13.7 13.4 12.9 12.8

11.6

7.1 6.7 6.9 6.0 5.7 5.5 5.3

4.2

3.2 2.9 3.0 2.6 2.5 2.5 2.4 2.2 2.4 2.3 2.1 1.9 1.7 1.8 1.7 1.5 1.4 1.1 0.9 1.2 0.9 0.9 0.8 0.7

2 Channel Rossiya 1 NTV TNT CTC Channel 5 Ren-TV TV Center Rossiya 24 TV-3 Rossiya 2 Domashny Zvezda Peretz Disney* Rossiya K Pyatnica*** U** 2x2 Other One

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 39 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 Consistent Growth in Technical Penetration

Technical Penetration1, %

94% 95% 95% 95% 91% 90% 87% 88% 89% 85% 84% 85% 82% 80% 76% 71% 73% 68% 65% 61% 54%

2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Note: (1) Technical penetration means the percentage of the population that has the technical ability to receive a particular broadcast signal. Measured annually by TNS Gallup Media in cities with populations of more than 100,000 40 Advertising Sales Structure since 2011

Advertisers

Advertising Agencies

Internal Sales Houses External Sales Houses

Everest Sales RTR-Media Gazprom-Media / Alkasar Video International

Consultancy services

41 Operating Expenses

as % of total operating as % of total operating expenses revenues

Depreciation & amortization 6% 6% 0% 1% 8% 9%

5% Stock-based compensation 4% 30% 30% 0% 6% 0% 6%

Direct operating expenses 22% 21%

SG&A expenses 55% 55% 41% 40%

Programming expenses

Q3 2013 Q3 2014 Q3 2013 Q3 2014

$171.1 mln $158.6 mln $126.9 mln $114.3 mln

42 FY 2013 Income Statement Highlights

Twelve Months (US$ 000’s except per share data) Ended December 31, Change

2012 2013 in USD in RUB Total operating revenues 804,946 832,103 3% 7% Total operating expenses (655,059) (624,404) -5% -2% Total operating expenses before non- (572,556) (594,535) 4% 7% recurring items OIBDA 173,905 240,815 nm nm OIBDA margin 21.6% 28.9% Adjusted OIBDA 256,408 270,684 6% 10% Adjusted OIBDA margin 31.9% 32.5% 0.6pp Net income/(loss) attributable to CTC 93,063 152,340 nm nm Media, Inc. stockholders

Diluted earnings per share $0.59 $0.97 nm Adjusted Net income/(loss) attributable to CTC Media, Inc. 157,794 182,209 15% 19% stockholders Adjusted Diluted earnings per share $1.00 $1.16 16%

43 FY 2013 Balance Sheet and Cash Flow Highlights

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

Twelve months Twelve months As of December 31, As of December 31, (US$ mln) (US$ mln) ended December 31, ended December 31, 2012 2013 2012 2013

Cash at beginning of period 12.3 55.2 Cash and cash equivalents 55.2 30.6 Net cash provided by operating activities 157.7 186.6 Short-term investments 131.4 180.3 including acquisition of progr. and sublic. rights (364.2) (378.0) Total assets 985.6 971.0 Net cash used in investing activities (26.5) (63.4) including goodwill 178.0 135.3 including acquisition of businesses (4.0) (0.5) including broadcasting licenses 82.3 59.7 including CapEx (15.6) (6.3)

including programming rights 255.3 294.0 including receipts from/(investments in) deposits (6.8) (56.6)

1 Working capital 298.3 311.9 Net cash used in financing activities (88.9) (143.9)

Total debt (bank overdraft and loans) 13.2 3.4 Cash at end of period 55.2 30.6

Stockholders’ equity 762.9 734.1 CapEx (15.6) (6.3) CapEx as % of total revenue 1.9% 0.8% 2 Net cash position 173.4 207.5 Free cash flow3 142.1 180.3

Notes: (1) Working capital = current assets - current liabilities (2) Net cash position = cash and cash equivalents + short-term investments - total debt (3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets 44 Reconciliation of Non-GAAP Measures

Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other corresponding GAAP financial measures

Income before Fully diluted Total operating Operating income tax and Income tax (US$ 000’s except per share data) OIBDA Net income earnings per expenses income noncontrolling expense share interest Twelve Months Ended December 31, 2013 Adjusted non-US GAAP results $270 684 ($594 535) $237 568 $251 365 ($61 335) $182 209 $1.16 Impact of impairment loss (29 869) (29 869) (29 869) (29 869) - (29 869) 0.19 Results as reported (under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $240 815 (624 404) 207 699 221 496 (61 335) 152 340 $0.97

Income before Fully diluted Total operating Operating income tax and Income tax (US$ 000’s except per share data) OIBDA Net income earnings per expenses income noncontrolling expense share interest

Twelve Months Ended December 31, 2012

Adjusted non-US GAAP results $256 408 ($572 556) $232 390 $247 192 ($82 645) $157 794 $1.00

Impact of impairment loss (82 503) (82 503) (82 503) (82 503) 17 772 (64 731) (0.41)

Results as reported (under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $173 905 ($655 059) $149 887 $164 689 ($64 873) $93 063 $0.59

45 Reconciliation of Non-GAAP Measures (continued)

Reconciliation of consolidated OIBDA to consolidated operating income

USD mln 9M 2014 9M 2013 Q3 2014 Q3 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating income (loss) 131 019 135 766 44 260 44 187 207 699 149 887 122 685 207 118 152 475 34 181 193 061 154 313 90 187 62 559 Add: depreciation and 21 021 24 973 6 369 8 150 33 116 24 018 17 649 13 736 11 454 13 379 27 361 19 651 13 920 7 962 amortization OIBDA 152 040 160 739 50 629 52 337 240 815 173 905 140 334 220 854 163 929 47 560 220 422 173 964 104 107 70 521

Reconciliation of consolidated OIBDA margin to consolidated operating income margin USD mln 9M 2014 9M 2013 Q3 2014 Q3 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating margin 24.8% 23.7% 27.9% 25.8% 25.0% 18.6% 16.0% 34.4% 30.1% 5.3% 40.9% 41.6% 38.0% 40.2% Add: depreciation and amortization as 3.9% 4.4% 4.0% 4.8% 4.0% 3.0% 2.3% 2.3% 2.3% 2.1% 5.8% 5.3% 5.8% 5.1% percentage of revenue OIBDA margin 28.7% 28.1% 31.9% 30.6% 28.9% 21.6% 18.3% 36.7% 32.4% 7.4% 46.7% 46.9% 43.8% 45.3%

Reconciliation of comparable-basis, non-GAAP total operating revenues to total operating revenues USD mln 2004 2005 2006 2007 2008 2009 2010 Comparable-basis total operating 180,639 273,352 427,091 532,143 729,629 574,107 680,418 revenues Agency commission fees payable to Video International in connection with Russian advertising sales (25,072) (35,875) (56,257) (60,087) (89,458) (67,994) (79,133) (excluding commissions for regional advertising sales to local clients) Total operating revenues 155,567 237,477 370,834 472,056 640,171 506,113 601,285

46 Reconciliation of Non-GAAP Measures

Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other corresponding GAAP financial measures Income (loss) Total Operating Fully diluted before income tax Income tax (US$ 000’s except per share data) OIBDA operating income Net income (loss) earnings per and noncontrolling expense expenses (loss) share interest Twelve months ended December 31, 2011 Adjusted non-US GAAP results $246,716 ($537,293) $ 229,067 $ 243,301 ($83,342) $ 152,561 $ 0.97 Impact of impairment loss (106,382) (106,382) (106,382) (106,382) 6,939 (99,443) (0.63) Results as reported (under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $140,334 ($643,675) $ 122,685 $ 136,919 ($76,403) $ 53,118 $ 0.34 Twelve months ended December 31, 2009 Adjusted non-US GAAP results $87,382 ($96,460) $84,047 $87,585 ($20,759) $64,466 $0.41

Impact of non-cash intangible asset impairment charge (18,739) (18,739) (18,739) (18,739) 3,748 (14,991) (0.10) Impact of Stock-based compensation expense related to settlement of litigation against former executive (28,588) (28,588) (28,588) (28,588) - (28,588) (0.18) Results as reported (under US GAAP, except for OIBDA, which is a non-GAAP financial measure) $163,929 ($353,638) $152,475 $148,645 ($45,626) $100,389 $0.64

Twelve months ended December 31, 2008 Adjusted non-US GAAP results $280,241 ($94,636) $92,712 $74,266 ($1,653) $64,635 $1.11

Impact of non-cash impairment of intangible assets of DTV, Kz and Moldova (232,683) (232,683) (232,683) (232,683) 30,331 (153,679) (0.97) Results as reported (under US GAAP, except for OIBDA) $47,558 ($327,319) ($139,971) ($158,417) $28,678 ($89,044) $0.14

47 Contact Information and Disclaimer

For further information please visit www.ctcmedia.ru or contact: Nickolai Ivanov Head of Investor Relations E-mail: [email protected] Tel: +7 (495) 981 0740

DISCLAIMER • The information contained in this presentation, including market data that are attributed to specific sources and have not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. • The presentation is not an offer of securities for sale in the United States. Neither the presentation nor any copy of it may be taken or transmitted into or distributed in the United States of America or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). • This presentation is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation. • Certain statements in this presentation that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among others, Russian advertising market growth, roll-out of digital broadcasting in 2014 – 2019 and ability of RTRS to put into operation equipment for digital broadcasting, TV ad spend in Russia by 2018 and etc. These statements reflect the Company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, changes in the size of the Russian television advertising market; the roll-out of digital broadcasting in Russia; depreciation of the value of the Russian ruble compared to the US dollar; geopolitical events involving Russia and the other countries in which the Company operates, including any potential negative economic impact of such events; the Company’s ability to deliver audience share, particularly in primetime, to its advertisers; free-to-air television remaining a significant advertising forum in Russia; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's annual report on Form 10-K filed with the SEC on March 6, 2014. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

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