CTC Media, Inc. Investor Presentation Q2 & H1 2014 Transformation from TV Broadcaster to Content Company 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 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 2 Transformation from TV Broadcaster to Content Company

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 50% in RUB in H1 2014 and continues to grow . Centralized content complementary audience company in Russia purchases to secure segment . 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 . New approach of service . Centralized programming monetization throw to avoid cannibalization partnerships . Further steps towards . Game and second screen more local content are to be launched by the ned of the year

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

3 Pillar 1: Prioritize content and synergies

Marketing Adjacent Digital space Traditional media media space space Content Brand and Centralization Production content acquisitions of functions creation

Programming Communications

► High TV penetration and reach can jumpstart digital and ► Centralization of functions ensures higher efficiency adjacent space development and provides potential for additional synergies ► The more powerful the brand is, the greater are ► Creation, production, integration and promotion of opportunities to monetize it on various platforms and content for all platforms simultaneously markets

4 Pillar 1: Strategic Goals with Respect to Content Production and Acquisition

► Secure content safety - Sustainable supply of high quality content* - In-house creative producing center - Diversified network of content providers

► Full rights or an optimal set of rights required by CTC Media - Content library accumulation - Centralized content purchases to secure maximum synergies, longer content life span and content sharing among all CTC Media platforms (TV channels and digital) - Multi-platforms and trans-media - distribution across platforms and media - Most effective monetization by CTCM in all markets and media

► Predictable pricing / controlled content inflation

* High quality content – content that can be effectively monetized across all platforms (TV, digital), territories and other media to get high OIBDA margin 5 Pillar 1: Approach to Deals with Major Studios and Locals

First step: When acquiring content from majors we plan to

– Minimize off-prime movies in package deals – Prevent appreciation of costs – Obtain TV sublicensing rights for all CTC Media channels (content sharing) – Obtain IPTV/SVOD/AVOD rights and any other rights to monetize across media (mobile streaming, Internet broadcasting, applications, etc.), if economically feasible/ positive OIBDA margin

The next step: gradual movement towards local content

– Local series and movies are planned to partially replace Hollywood feature films – Production of series/ TV movies for movie prime time slots – Via strategic partnerships with local movie producers (Art Pictures, Bazelevs, EnjoyMovies, individual deals with producers) – Studio deals to be limited to small packages

6 6 Pillar 2: Grow Combined Audience Share

Brings the family together Bright, emotional and Modern, dynamic, reality and Brand-new CTC Media entertaining channel for action male-oriented channel channel aimed at girls women and young women • Family-oriented channel with • Growing audience share by • Growing audience share by • New channel special appeal to women becoming a more dynamic bringing programming complementary to the and modern channel offering in line with the well- Group’s brands family: • Retain audience share regarded Peretz brand and Target audience “All 11- through: • Positioning the channel marketing 34”; core audience: brand as ‘lifestyle’ to use for • Focusing on prime “Women 18-25” cross-media projects and • Launching 20 new shows in time merchandizing 2014 • Building extensively on the • Developing long-term • Strengthening of horizontal existing high-quality local content brands programming grid and foreign content library • Increasing the number • Technical penetration of premium weekend • Increase of audience share increased up to 25% in show formats in prime time with the most Russia, >30% in and effective monetization • Transmedia projects trend almost 40% in Saint setter Petersburg • Continuing rejuvenation of

the channel: proportion W25- • Started sales of CTC Love to 45 increased by 5pp in target TV advertisers and commit demographic ~$1mln

NEW

7 Pillar 3: Loyal Audience Growth through Cross-Platform Engagement

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

► TV Holding becomes Content company: Transmedia and multi-platform content

► Build core loyal audience

► Distribution and monetization on brand- appropriate platforms

► Inventory growth driven by monetization opportunities

► Monetization diversification from premium sales to ad technology

► Unified authorization: personalized content, recommendation service

8 Pillar 3: Driving Value Growth through Broader Content Distribution and Monetization

We will get our audience used to watching ► Content distribution by revenue our content across CTC Media share model platforms

Organic audience growth => ► Monetization of our audience by profit growth, not only inventory advertising model with all possible means Inventory management

► New activities support (Second Screen, mobile, Smart TV)

► User payments and various partnership projects

9 Pillar 3: We are Wherever Our viewers Are

10 Pillar 3: Partnerships and Special Projects in Digital

. Successfully implemented a special project based on movies of MARVEL: project reach – over 5М individuals, 75,000 active participants of transmedia competition . The sketchcom #Students was premiered online – the current view count is over 1.3m and the project is still in progress. Mechanisms for large-scale online premiere have been developed in collaboration with partners (Odnoklassniki, Vkontakte 2, Caramba) . A test version of application SecondScreen- Molodezhka Apps - has been completed. A presentation for advertisers has been conducted. The launch of the application is planned simultaneously with the Special Projects second season premier.

. Odnoklassniki – our video is already available on the website in July 2014 . Yandex – the partnership starts in Fall 2014, conditions have already been agreed upon . Vkontakte – distribution of our video through the aggregator Pladform in August/September’14 . Rambler&Co – a number of special projects are in development, launch – fall of 2014 . Game Insight – all commercial terms are agreed upon, game development is in progress, launch– September 2014 Partnerships

11 Pillar 4: Diversify Revenue Streams

71% 15%

10%

Channel 31 2.3% 2004 H1 2014 Digital Media 1.0% CTC- International 0.5% Sublicensing 0.2%

Aim to increase Russian FTA Russian FTA Broadcasting Broadcasting 100% 96%

12 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 to 5% in 2014, CTC Media strive compared to rivals due to attractive Current dividend yield to outperform the market with audience profiles2 approximately 7%, the highest its Russian advertising revenue among European media Strong cash flow generation and companies net cash position

13 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. Macro and Market Update Macroeconomic Update in Russia

Real GDP Growth, % YoY 1 Ruble Depreciation 1

3% 40

2%

35 2%

1% 30

1%

0% 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014E 2013 2014E CP Inflation, Retail Sales Dynamics and Real Disposable Income (RUB) 1 12%

8%

4%

0%

-4%

-8% Jul 2013 Jul Jan 2013 Jan 2014 Jan Jun 2013 Jun 2014 Jun Oct 2013 Oct Apr 2013 Apr 2014 Apr Feb 2013 Feb 2014 Feb Sep 2013 Sep Dec 2013 Dec Aug 2013 Aug Nov 2013 Nov Mar 2013 Mar 2014 Mar May 2013 May 2014 May

CPI Inflation, % YoY Retail Sales growth, % YoY Real Disposable Income growth, % YoY

Macroeconomic environment is deteriorating 15 Sources: (1) Bloomberg Russian TV Ad Market Overview

Russian TV ad market was #7 in the world and #3 in Europe in Free-to-air TV ad market growth1 20131 and is expected to maintain its position by 2016 64.3

22.5 328 298 263

257 16.4 219

bln 11.8 186 5.4 5.4 152 RUB bln 140

US $ 5.0 129 117 109 96 95

42

USA Japan China Brazil UK Germany Russia 2004 2008 2009 2010 2011 2012 2013 TV Ad Market Total Ad Market 1.7 Ad spend as % of GDP¹ 1.6 1.6 1.4

1.2 1.0 1.0 0.9 0.9 1.0 0.9 0.8 0.8 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.4 UK USA Russia Austria Poland Ukraine Belgium Bulgaria Slovenia Germany

CEE Average 2008 2013

Russian TV ad market has potential for further development 16 Note: All TV Ad Markets figures are net of VAT Sources: (1) Zenith Optimedia, as of April 2014, Company’s estimates 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% 48% 43% Russia 2.0

Central & Eastern Europe 4.1 30% 31%

22% Asia Pacific 16.4 18% 12% Western Europe 11% 10% 19.8 6% 6% 5% 5% 2% 1% 0.4% 2% North America 29.1

TV Internet Press Outdoor Radio Other 2004 2013 2018F

Sources: (1) Russian Association of Communication Agencies, Video International 17 (2) Initiative Media Stable Consumer Goods Client Base with Large Multi-National and Local Advertisers

Ad spending on CTC Media’s Russian channels by category

* FY 2013 2Q 2013 2Q 2014 1 Food and beverages 26% 33% 31% ■ Vast majority of CTC Media’s Russian advertisers are basic 2 Cosmetics and personal care products 19% 18% 17% consumer goods focused 3 Other goods 14% 11% 16% 4 Pharmaceuticals and vitamins 16% 12% 11% ■ CTC Media’s advertisers’ budgets split: 5 Telecoms 7% 9% 8% 6 Retail 4% 4% 6% . 80% multinationals, 20% local companies 7 Auto 4% 4% 4% 8 Appliances 4% 4% 3% ■ New clients in portfolio: 141 in H1 2014, compared to 121 9 Detergents 4% 4% 2% for the same period last year 10 Finance 2% 2% 1%

Notes: (*) National advertising sales for CTC, Domashny and Peretz Networks 18 (**) Total Russian advertising sales for CTC, Domashny and Peretz Channels 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 Minutes per day 5 6

2006 2007 2008 2009 2010 2011 2012 2013

Source: TNS Gallup Media, Russia 19 * Change in TNS Measurement panel in 2012 increase proportion of 2+ Tv-sets per household

Fragmentation is Inevitable Trend on Developing Market

Audience shares, all 10-45 demographic

55%

50% Top 3 state-controlled channels

45%

TV viewers’ attention in H1 was captured by massive 40% Ukrainian news flow, domestic Olympic Games and World Cup 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 H1 2014

st Notes: top 3 state-controlled channels: Channel One, Rossiya 1, NTV; 1 tier channels: CTC, TNT, Ren-TV; 20 2nd tier channels: TV-3, Domashny, Peretz, Rossiya K, Channel 5, Rossiya 2, Euronews, Zvezda, Pyatniza, Rossiya 24, Ю, 2x2, TV Center, Disney, RU TV

Operating Update We Are the Largest Independent FTA-Broadcaster in Russia with Premium Audiences

Combined audience 26.7 shares, % (all 10-45 demographic)

14.5 14.5 12.5

8.3

3.6

H1 2014

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

27.4

15.5 12.8 12.0 9.5

4.3

H1 2013 22 Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding We Currently Deal with External Pressure on Entertainment Channels

Audience shares1, % (all 10-45 demographic)

H1 2013 H1 2014

19.7 News/sport events TV broadcasters demonstrated audience share 18.6 growth vs. decline of entertainment channel shares

12.5 12.5 12.0 12.1 11.4 10.5

8.8 8.9 8.9 8.1

5.2 4.4 4.3 3.9 2.9 3.1 2.6 2.4 2.6 2.3 2.0 2.2 2.0 2.0 1.9 2.0 1.8 1.8 1.6 1.4 1.4 1.4 1.6 1.5 1.5 0.9 0.8 0.6

2 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 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 23 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 Audience Share Performance in H1 2014

. Despite of the fact that: 11.6 11.4 . 10.2 10.5 TV viewers’ attention in H1 was captured by massive Ukrainian news flow, domestic Olympic Games and World Cup . We have tough comparison with H1 2013 . Inventory was almost fully compensated by viewership increase which is monetized

Q2'13 Q2'14 1H'13 1H'14

. 3.5 Strengthening of horizontal programming grid 3.3 3.3 3.2 . Increase of audience share in prime time with the most effective monetization . Continuing rejuvenation of the channel: proportion W25-45 increased by 5pp in target demographic . In July audience share reached 3.9% showing upward trend

Q2'13 Q2'14 1H'13 1H'14

2.4 2.3 . Peretz was affected by extensive news flow about 2.1 Ukraine with its reality and action positioning and 1.9 male skewed audience . Launch of new programming in progress. The results will be seen in Fall . Recovery on its way: audience share in June – Q2'13 Q2'14 1H'13 1H'14 2.1%; in July – 2.2%

24 Financial Update 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 US $ mln 21% 21% US US $ mln 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 26 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 2014-2019 Current ~185 OPEX savings Current ~575 CASH savings

Savings ~700 >5000 Savings ~300 >4000

* per CTC + Domashny in Multiplex, annualy 27 Part of cash payments are capitalized as prepaid expenses; to be written off to PnL in 2019 and subsequent years H1 2014 Financial Highlights

Group Revenue* and OIBDA Group Expenses Group Net Income ($m)**

$m 401.3 $m 370.6 Stock-based 2.6 27.0 % 27.4 % compensarion 16.8 0.3 22.9 14.7 Depreciation & 24.6 amortization 60.2 84.7 57.9 80.6 Direct operating expenses

108.4 101.4 Comparable-basis SG&A expenses 182.6 164.2

Programming expenses H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 Total operating Revenue OIBDA OIBDA Margin 309.7 283.8 expenses

*Negative exchange effect rate effect on revenue 11% in H1 2014 **Effective tax rate 31% in Q2 2014 (Q2 2013:36%)

H1 2014 Divisional Revenues ($m)

284.5 265.1

59.5 56.0 41.9 35.9 10.9 8.5

H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014

CTC channel Domashny channel Peretz channel Channel 31 28 H1 2014 Financial Highlights (cont’d)

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

109 mln 99 mln $0.70 per share 190.3 $0.63 per 142.4 share

47.0 47.8

2013 2014 6M 2013 6M 2014

September 2014 – quarterly payment of $0.175/share (~$27 mln total) Free Cash Flow * Net Cash at the End of Period **

Notes: (*) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets 29 (**) Net cash position = cash and cash equivalents + short-term investments - total debt 2014 Guidance

Russian total TV ad market Up to 5% growth in RUB terms

Russian TV ad revenues Aim to outperform the market Expect comparatively less growth in total revenue due to decrease in Total revenues sublicensing revenue to Ukraine

Digital media revenues Up to 30% growth

Programming expenses Growing at lower rate than total revenues and at lower pace than in 2013

Multiplex expenses Up to 185 mln rubles

OIBDA margin Upgrade to approximately 30% including multiplex costs $0.70 per share (~$109 million) in 2014, Dividends $0.175 per share (~ $27 million) to be paid in September

Capital expenditure Up to $10 million

Effective tax rate 30-35%

Commitment to creating long-term sustainable shareholder value

30 Appendix 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 Modern Times Group 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

32 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

33 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 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 July 31, 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

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 35

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

Audience shares1, %

Q2 2013 Q2 2014

20.2

18.6

12.6 12.8 11.9 12.0 11.6

10.2

8.4 8.5 8.6 7.7

5.3 4.1 4.3 4.1 3.4 2.9 3.1 2.5 2.6 2.1 2.1 2.1 2.1 2.0 1.9 1.8 1.8 1.8 1.8 1.5 1.6 1.7 1.6 1.6 1.5 0.9 0.7 0.6

TNT Channel CTC Russia 1 NTV Ren TV Channel 5 Russia TV-3 Russia 2 Domashny Pyatniza *** Disney * TV Centr Peretz 2X2 U ** Zvezda 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 36 (**) 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, %

18.7 Q2 2013 17.2 Q2 2014

14.5 14.2 13.4 12.6 12.5

11.3

6.9 6.9 6.7 5.9 5.8 5.7 5.4

4.0 3.8 2.9 3.1 2.6 2.5 2.6 2.4 2.2 2.4 2.4 2.1 1.9 1.9 1.5 1.5 1.6 1.4 1.1 1.0 0.8 1.2 1.0 0.9 0.8

2 Channel Russia 1 NTV TNT CTC Channel 5 Ren TV Russia 24 TV Centr TV-3 Domashny Zvezda Russia 2 Disney * Peretz Russia K Pyatniza *** 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 37 (**) Operated under Muz-TV brand before 1 September, 2012 (***) Operated under MTV brand before 1 June, 20123 CTC Improves Its Target Audience Profile in Commercially Attractive Demographic

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

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

40 Sources: TNS Russia CTC Has a Strong Viewership Position

13.7 13.0 13.4 12.1 11.0 11.3

2008 2009 2010 2011 2012 2013

2.7

2.4 3.6 3.5 3.2 3.2 2.1 2.1 2.8 2.8 2.0 2.4 1.7 1.5

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

Audience share in all 10-45 demographic, % 41 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

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

24.7

#2 among Top-10 Kazakh channels

17.6 15.9

13.7 13.3 12.6 Q2 2013 Q2 2014 10.1 10.8 8.9 8.4 8.3 7.9 7.8 5.6 5.5 4.7 3.5 3.1 1.8

Channel 1 Channel 31 KTK NTK Astana Channel 7 Kazakhstan RTR Habar Mir Planeta (KZ) ** 42 Source: (*) TNS Central Asia ** Measured since March 1, 2014 Q2 and 6M 2014 Financial Highlights

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

As of December 31, As of June 30, Six months ended Six months ended (US$ mln) (US$ mln) 2013 2014 June 30, 2013 June 30, 2014

Cash at beginning of period 55.2 30.6 Cash and cash equivalents 30.6 43.3 Net cash provided by operating activities 48.9 50.0 Short-term investments 180.3 150.0 including acquisition of progr. and sublic. rights (196.2) (184.0) Total assets 971.0 941.6 Net cash used in investing activities (17.4) 20.7 including goodwill 135.3 131.7 including CapEx (1.9) (2.2) including broadcasting licenses 59.7 50.7 including receipts from/(investments in) deposits (15.4) 22.9

including programming rights 294.0 288.1 Net cash used in financing activities (59.7) (58.5)

1 Working capital 311.9 290.0 Cash at end of period 24.6 43.3

Stockholders’ equity 734.1 715.1 CapEx (1.9) (2.2)

CapEx as % of total revenue 0.5% 0.6% Net cash position2 207.5 190.3 Free cash flow3 47.0 47.8

Three Months Six Months Change Change (US$ 000’s except per share data) Ended June 31, Ended June 30, 2013 2014 in USD in RUB 2013 2014 in USD in RUB Total operating revenues 206 015 184 312 -11% -1% 401 302 370 559 -8% 4% Total operating expenses (156,620) (145,692) -7% 3% (309,723) (283,800) -8% 3% OIBDA 57 753 45 440 -21% -12% 108 402 101 411 -6% 6% OIBDA margin 28.0% 24.7% 27.0% 27.4% Net income/(loss) attributable to CTC 31 593 26 661 -16% -6% 60 181 57 877 -4% 10% Media, Inc. stockholders Diluted earnings per share $0.20 $0.17 -15% $0.38 $0.37 -3%

Notes: (1) Working capital = current assets - current liabilities (2) Net cash position = cash and cash equivalents + short-term investments - total debt 43 (3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets

H1 2014 Operating Expenses Breakdown

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

5% 5% Depreciation & amortization 1% 7% 9% 4% 4% 27% 28% 1% Stock-based compensation 6% 7%

21% 22%

Direct operating expenses

59% 58% 46% 44% SG&A expenses 0% 0%

H1 2013 H1 2014 H1 2013 H1 2014 Programming expenses $309.7 mln $283.8 mln $401.3 mln $370.6 mln

44 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 45 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%

46 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 47 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% 140 133 116 120 100 84%

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

US$ mln 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 48 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

49 Reconciliation of Non-GAAP Measures (continued)

Reconciliation of consolidated OIBDA to consolidated operating income

USD mln H1 2014 H1 2013 Q2 2014 Q2 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating income (loss) 86 759 91 579 38 620 49 395 207 699 149 887 122 685 207 118 152 475 34 181 193 061 154 313 90 187 62 559 Add: depreciation and 14 652 16 823 6 820 8 358 33 116 24 018 17 649 13 736 11 454 13 379 27 361 19 651 13 920 7 962 amortization OIBDA 101 411 108 402 45 440 57 753 240 815 173 905 140 334 220 854 163 929 47 560 220 422 173 964 104 107 70 521

Reconciliation of consolidated OIBDA margin to consolidated operating income margin USD mln H1 2014 H1 2013 Q2 2014 Q2 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating margin 23.4% 22.8% 21.0% 23.9% 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 4.0% 4.2% 3.7% 4.1% 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 27.4% 27.0% 24.7% 28.0% 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

50 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

51 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, Russian advertising market growth, roll-out of digital broadcasting in 2014 – 2019 and ability of RTRS to put into operation equipment for digital broadcasting, OPEX and cash 2015-2018 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 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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