CTC Media, Inc. Investor Presentation

March 2014 We Fully Capture the Value Chain by Being Integrated Content Company

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 Mega

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, peretz.ru and various digital projects

Transmedia Online video portal Videomore.ru

Women’s portal Domashniy.ru

1 Key Operating Highlights

. CTC channel the only channel in the Top-6 delivered growth in 2013 . Combined Russian national inventory 100% sold-out for Q4 and 99% sold-out for FY 2013 . Year-on-year increases in technical penetration: – CTC: from 95.1% to 95.3% – Domashny: from 88.5% to 90.1% – Peretz: from 83.8% to 85.5% . CTC Love launch in early 2014 . Established in-house creative production center in December . Partnered with KupiVIP.ru in December to introduce the first e-commerce project by a Russian TV company; launch scheduled for April 2014 . Upgrades of the Domashniy.ru and CTC.ru websites and launch of channel apps

2 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 advertising creative production center cover a further, commerce project by a TV revenue up 45% in RUB in complementary audience company in Russia 2013 and continues to . Centralized content segment grow purchases to secure . Channels' websites synergies, longer content . New Head of Domashny became Full scale . Double of merchandising life span and sharing upgrades Channel’s platforms revenue in 2013 among platforms content and programming . New approach of . Centralized programming monetization throw to avoid cannibalization partnerships . Further steps towards more local content

3 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

4 4 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

5 Olympic Games 2014 Impact on Russian TV Viewing

CTC Media audience share reduction was in line with other channels; Inventory partially compensated by viewership increase during Olympics which is monetized

Winter Olympic Games Opening and Closing Ceremonies Audience Shares 2006-2014 (all 10-45)

Opening Closing 67% 59% 47% 25% 29% 25%

Total TV Viewing Change in February vs. January

All 10-45 All 25-49 F 25-59 3% 1% 1%

-6% -5% -6% -7% -9% -9%

Impact of Sochi Olympics on channels’ audience share*

Four weeks prior 7-23 February 16% 13% 12% 11% 10% 11% 8% 9% 10% 8% 5% 4% 3.0% 3.2% 2.8% 2.1%

Channel 1 Russia 1 TNT CTC NTV Ren TV Domashny Peretz 6 * Top-6 channels in “All 10-45” demographic; Domashny and Peretz in their target demographic CTC Love Launch

Brand-new CTC Media channel aimed at girls and young women

Expansion of Offering… . New channel complementary to the Group’s brands family – Target audience: “All 11-34”; core audience: “Women 18-25” . No overlap with existing CTC and Domashny Channels audiences . Reinforces the overall CTC Media brand

… at Low Cost… . Building extensively on the existing high-quality local and foreign content library . Promote the channel at CTC Media’s online offering

…with High Impact . Proportion of female audience is higher and continue growing in advertiser budgets

Part of the strategy to utilize Group-wide synergies

77 Digital & Transmedia Offerings

. Create, distribute and monetize content on all platforms to reach our audience

. TV Holding to become a Content company: Transmedia and multi-platform content . Build core loyal audience, inventory growth driven by monetization requirements on brand-safe platforms . Unified authorization: personalized content, recommendation service

Case Study . Molodezhka has approximately 600,000 daily views across platforms – Online – Dedicated app . VKontakte group has almost 1 million members . Second season to have a dedicated second- screen offering . Almost 40 million views in total 8 We Enter New Platforms to Be Wherever Our Viewers Are

9 Digitalization in Russia Is on Its Way

First multiplex Second multiplex Third multiplex

Terms of tender to be announced in 2014

. Currently only Russian cities with more than 100,000 residents are measured by TNS (~50% of the total population of Russia) . With full rollout of digital transition Russia will have 98% all-Russia penetration, which means almost double the number of audience covered . Governmental authorities indicate that estimated payments in 2014 will be approximately $25 million for the CTC and Domashny channels in aggregate, depending on the actual rollout

10 Combination of Growth, Profitability and Dividend Yield

EFFICIENCY / RETURN CASH GROWTH + PROFITABILITY + TO SHAREHOLDERS

Operating in Europe’s third ~32% anticipated 2013 full-year Over 50% cash dividend payout largest and fastest growing TV OIBDA margin, well above ad market1 European TV broadcasters average More than 5% dividend yield in 2011, 2012 and 2013 Forecast for Russian TV High Group power ratio of 1.5x advertising market to grow compared to rivals due to attractive Current dividend yield ~6%, the 5-8% in 2014, CTC Media audience profiles2 highest among European media advertising revenue in line with companies the market Strong cash flow generation and net cash position

11

Source: (1) Zenith Optimedia, September 2013 estimates 11 (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. TV advertising market, Audience Shares and Financials

12 Russian TV Ad Market Has Significant Potential for Further Development…

Russian TV ad market was #8 in the world Free-to-air TV ad market growth1 and #4 in Europe in 20111…

58.0

21.6 328 298

257 263

14.4 219 bln 9.8 186 5.2 5.1 bln RUB 152 US $ US 4.7 140 4.5 4.4 129 117 109 96 95

42

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

…and is expected to become # 1 in Europe in 20151 68.5

23.4

17.3

12.6

6.3 bln 5.7 5.6

5.3 US $ US

USA Japan China Brazil Indonesia Russia Germany UK Note: All TV Ad Markets figures are net of VAT 13 Sources: (1) Zenith Optimedia, as of September 2013, 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 1.5 1.4

1.2 61% 1.1 66% 63% 1.0 66% 0.9 0.91.0 0.9 38% 0.8 0.8 42% 0.7 0.7 0.6 0.6 0.6 23% 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 Average CEE 2008 2012 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

FY 2012 cost per thousand in Russia (US$)²

 TV is the only medium with truly national reach TV 2.0  Important social and cultural platform Radio 3.9  More free-to-air networks than in other countries  High quality free-to-air content offering Internet 5.8

Newspapers 5.6

Magazines 6.3

Ad spend in Russia by media segment1 (%) FY 2012 TV cost per thousand (US$)²

48% 46% 43% Russia 2.0

Central & Eastern Europe 4.1 31%

22% Asia Pacific 16.4 18% 12% 11% Western Europe 19.8

6% 5% 1% 0.4% 2% North America 29.1

TV Internet Press Outdoor Radio Other 2004 2013 2020F

Sources: (1) Russian Association of Communication Agencies, Video International (2) Initiative Media 15 Internet Is Growing Not at the Expense of TV Usage

But in “All 10-45” demographic TV viewership is 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

CTC Improves Its Target Audience Profile in Commercially Attractive Demographic

17 Sources: TNS Russia CTC Grew Its Viewership Position in FY 2013

Molodezhka First season 1 (07 October - 12 December) – 16.2% 2

The 80-s Third Season (21 October – 25 November) – 14.5%

13.7 13.0 13.4 12.1 11.0 11.3 2 Fathers and 2 Sons First Season (21 October – 25 November) – 14.3%

Voroniny Thirteen season (26 November – 17 2008 2009 2010 2011 2012 2013 December) – 14.3%

#2 #2 #2 #3 #3 #3

Audience share in all 10-45 demographic, %

Ship First season (13 January – 24 February 2014) – 13.7%

Survive after First season (18 – 26 November 2013) – 13.4%

Note:(1) Audience share in CTC target demographic All 10-45 18 (2) Episodes 1-20 – 14.5% Episodes 21-40 – 18% Domashny Improves Affinity in Its Target Demographic

Sources: TNS Russia 19 Domashny Has Been Growing Audience Share Since Its Launch in 2005

Foreign & Russian series

3.6 3.5 3.2 3.2 2.8 2.8 2.4 1.7 1.5

Reality & Lifestyle

2005 2006 2007 2008 2009 2010 2011 2012 2013

3.9 3.7 3.8 3.6 3.5 3.5 3.1 3.0 DocuReality

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Audience share in women 25-59 demographic, % Comedy

20 Peretz Improves Audience Profile In Commercially Attractive Young Adults Demographics

Sources: TNS Russia 21 Peretz Target Audience Share Dynamics

Thrilling/investigation programes 2.7

2.4

2.1 2.1 2.0

User-generated content

2009 2010 2011 2012 2013

2.8 2.9 2.9 2.5 Road Wars 2.3 2.3 2.3 2.3

Humor Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Audience share in all 25-49 demographic, %

22 Note:(1) in Peretz target demographic All 25-49 Financial Highlights

Group Revenue and OIBDA Group Adj. Net Income ($m) Group Expenses $m . Total adj. operating expenses up 7% in RUB 1,200 31.9% 32.5% 35%

30% . Programming costs up 10%; however, recurring 1,000 programming costs up only 6% in RUB 832.1 804.9 25% 182.2 800 157.8 . 2013 total multiplex costs $1.2m; 2014 expect 20% approximately $25m 600 15% . Impairment of $29.9m in 2013 due to restructuring 400 256.4 270.7 10% of the in-house production unit 200 5% . Adjusted effective tax rate 24% net of recognition of foreign tax benefits – 31% in 2013 (2012: 33%) 0 0% 2012 2013 2012 2013

Revenue Adj. OIBDA Adj. OIBDA Margin

2013 Divisional Revenues ($m)

577.0 586.4 113.3 124.8 81.2 84.3 22.6 25.8

FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013

CTC channel Domashny channel Peretz channel Channel 31

23 Financial Highlights (cont’d)

Dividends & Share Buyback

. Distributed $98.8m in dividends in 2013 (2012: $82.2m), 63% payout . March-2014 payment of $0.175 / share (~$27m total) . Intend to pay $0.7 / share in 2014 (~$109m total), 60% payout . 2.5m shares repurchased in 2013 (~$29.7m total)

Cash Conversion Free Cash Flow and Cash Position at YE($m)

186.6 157.7 207.5 69% 173.4 180.3 62% 142.1

2012 2013 2012 2013 Operating Cash Flow, mln USD % of OIBDA converted Free Cash Flow Net Cash at Year-End

24 Strong Market Positions in the 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

Source: (*) TNS Central Asia 25 2014 Guidance

Russian total TV ad market Up 5-8% in RUB terms

Russian TV ad revenues Growth broadly in line with the market

Digital media revenues Up to 30% growth

International broadcasting Revenues for Channel 31 and the international versions of CTC Media channels to revenues grow faster than Russian TV advertising revenues

Programming expenses Less than total revenues growth and at lower pace than in 2013

Multiplex expenses Approximately $25 mln, depending on actual rollout and RUB/USD rate

OIBDA margin Around 32% adjusted for multiplex costs

$0.70 per share (~$109 million) in 2014, Dividends $0.175 per share (~ $27 million) to be paid in March

Capital expenditure Up to $10 million

Effective tax rate 30-35%

Commitment to creating long-term sustainable shareholder value

26 Appendix From Private TV Network to Public Media Holding

Launch of CTC- international in Agreement with Germany, North America KupiVip on and the Baltics E-commerce project

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

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

Launch of CTC- Launch of CTC international in Love Channel on Launch of CTC Launch of Israel Acquisition of DTV Launch of CTC- cable and satellite Network Domashny Network (rebranded to Peretz international in Establishment of in 2011) Kazakhstan, , Launch of Peretz CTC Media’s , , International in internal advertising Acquisition of , Thailand and Kyrgystan sales house Channel 31 in uplink to HOT BIRD ‘Everest Sales’ Kazakhstan and a TV

company in Moldova CTC and Domashny Launch of received digital licenses Videomore.ru online content portal 28 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

29 CTC Media Shareholder Structure

CTC Media, Inc.

Number of common shares outstanding 155,710,719 (as of March 6, 2014)

38% 25% 37%

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

Lorenzo Grabau Angelo Codignoni Tamjid Basunia Co-Chairman Co-Chairman Director

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

Jørgen Madsen Lindemann Timur Weinstein Jean-Pierre Morel Director Director Director 30 We Are the Largest Independent FTA-Broadcaster in Russia with Premium Audiences

Combined audience shares, %

Maintained (all 10-45 demographic) 2nd place

22.7

15.1

12.4 11.4

8.4 6.9

4.1

Q4 2013 Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Prof Media UTV Russia Group Holding

24.7

14.9

12.4 11.8 9.4

5.7 4.5

Q4 2012 Gazprom-Media VGTRK (Rossiya) Channel One National Media Prof Media UTV Russia СTС Media 31 Group Holding 31 Growing Audience Shares In “All 10-45” Most Commercially Attractive Demographic

Audience shares1, %

18.6 FY 2012 FY 2013 CTC is the only growing Channel in Top-6 16.2

13.313.1

11.8 11.6 11.011.3 10.7

9.0 9.0 8.6

5.2 4.9 4.2 3.9 3.2 2.8 3.0 2.4 2.6 2.2 2.2 2.2 2.1 2.0 1.8 1.7 1.8 1.7 1.6 1.4 1.5 1.6 1.2 1.4 0.9 0.7 0.9 0.7 0.1 0.1 2 TNT Channel CTC NTV Russia 1 Ren TV Channel 5 TV-3 Disney * Russia 2 Peretz DomashnyTV Centr U ** Pyatniza *** 2X2 Zvezda Russia RussiaEURONEWS 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 (**) Operated under Muz-TV brand before 1 September, 2012 32 (***) Operated under MTV brand before 1 June, 20123 Audience Shares In “All 4+” Demographic

Audience shares1, %

FY 2012 17.3 FY 2013 15.9

14.3 13.914.0 13.4 12.9 12.8

7.7 7.2 6.9 6.7 5.7 5.2 5.2 5.1

2.9 2.6 2.6 2.5 2.5 2.5 2.3 2.3 2.3 2.1 2.1 2.0 1.8 1.8 1.7 1.7 1.1 0.9 0.9 0.8 1.0 1.0 0.8 0.8 0.1 0.1

2 Channel Russia 1 NTV TNT CTC Channel 5 Ren TV TV Centr TV-3 Domashny Russia 2 Zvezda Peretz Disney * Russia K Russia 24Pyatniza *** U ** 2X2 EURONEWS 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 (**) Operated under Muz-TV brand before 1 September, 2012 33 (***) Operated under MTV brand before 1 June, 20123 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

Notes: top 3 state-controlled channels: Channel One, Rossiya 1, NTV; 1st tier channels: CTC, TNT, Ren-TV; 2nd tier channels: TV-3, Domashny, Peretz, Rossiya K, Channel 5, Rossiya 2, Euronews, Zvezda, MTV, Rossiya 24, Ю, 2x2, TV Center, Disney, RU TV 34

Stable Consumer Goods Client Base with Large Multi-National and Local Advertisers

Ad spending on CTC Media’s Russian channels by category

FY 2012 FY 2013 * 1 Food and beverages 26% 26% ■ Vast majority of CTC Media’s Russian advertisers are basic 2 Cosmetics and personal care products 18% 19% consumer goods focused 3 Pharmaceuticals and vitamins 13% 16% 4 Other goods 15% 14% ■ CTC Media’s advertisers’ budgets split: 5 Telecoms 8% 7% 6 Appliances 4% 4% . 80% multinationals, 20% local companies 7 Auto 4% 4% 8 Retail 4% 4% ■ 34% of ad revenue** came from top 10 clients in FY 2013 9 Detergents 4% 4% 10 Finance 2% 2% 11 Beer 3% 0% .

Notes: (*) National advertising sales for CTC, Domashny and Peretz Networks 35 (**) Total Russian advertising sales for CTC, Domashny and Peretz Channels and Digital Media

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 100,00036 36 Plus We Continue to Expand Internationally...

Increasing CTC Media’s international brand awareness & value through CTC-international and Peretz-International Russian-speaking 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

Total Russian-speaking population 40.2 mln 37 …and Diversify Our Lines of Business

68% 15%

10%

2004 FY 2013 Sublicensing 2.3% Channel 31 3.1% Digital Media 0.7% CTC- International 0.5%

Russian FTA Russian FTA Broadcasting Broadcasting 100% 93%

38 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 3939 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 Three Months Ended December 31, 2013 Adjusted non-US GAAP results $109,945 (157,915) $101,802 $106,320 ($95,031) $45,504 $0.29 Impact of impairment loss (29,869) (29,869) (29,869) (29,869) - - - Results as reported (under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $80,076 (187,784) 71,933 76,451 (95,031) 45,504 $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, 2013 Adjusted non-US GAAP results $270,684 ($594,535) $237,568 $251,365 ($61,335) $152,340 $0.97 Impact of impairment loss (29,869) (29,869) (29,869) (29,869) - - - 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 ($48,373) $159,065 $1.01

Impact of impairment loss (82,503) (82,503) (82,503) (82,503) (16,500) (66,002) (0.43)

Results as reported (under US GAAP, except for OIBDA which is a non-US GAAP 40 financial measure) $173,905 ($655,059) $149,887 $164,689 ($64,873) $93,063 $0.59 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

41 Reconciliation of Non-GAAP Measures (continued)

Reconciliation of consolidated OIBDA to consolidated operating income

USD mln Q4 2013 Q4 2012 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating income (loss) 71,933 94,842 207,699 149,887 122,685 207,118 152,475 34,181 193,061 154,313 90,187 62,559 Add: depreciation and 8,143 8,967 33,116 24,018 17,649 13,736 11,454 13,379 27,361 19,651 13,920 7,962 amortization OIBDA 80,076 103,809 240,815 173,905 140,334 220,854 163,929 47,560 220,422 173,964 104,107 70,521

Reconciliation of consolidated OIBDA margin to consolidated operating income margin USD mln Q4 2013 Q4 2012 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating margin 27.7% 35.9% 24.9% 18.6% 16.0% 34.4% 30.1% 5.3% 40.9% 41.6% 38.0% 40.2% Add: depreciation and amortization as 3.1% 3.4% 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 30.8% 39.3% 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

42 Contact Information and Disclaimer

For further information please visit www.ctcmedia.ru or contact: Irina Faritova 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, statement regarding launch of CTC Love channel, Russian advertising market growth, roll-out of digital broadcasting in Russia by 2018, growth of Russian TV ad market by 2020 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 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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