INFORMATION ABOUT MTS1 WELCOME Public Joint Stock Company “Mobile TeleSystems” (PJSC “MTS”) is a leading company in Russia and the CIS countries providing services for mobile and fixed communications, Internet access, cable and satellite TV broadcasting; TO THE 2020 ANNUAL digital services, including fintech and media within the ecosystem and mobile applications, converged IT solutions in the system integration, Internet of Things, monitoring, data processing and cloud computing. By providing innovative REPORT OF MTS PJSC! services and solutions, MTS makes a significant contribution to economic growth and improving the quality of life of tens of millions of people in the countries of presence the quality of living of tens of millions of people in its countries of operation. \\ We would like to bring to your attention the Annual Report of MTS PJSC following the results of 2020. This is the 20th report — we have been preparing them for you, starting from 2001.Today, MTS is a digital company that develops innovations in education, healthcare, financial services, entertainment, and many other spheres. Our solutions using big data, artificial intelligence, virtual and augmented reality are aimed at improving the quality of living of our subscribers, clients, and employees. MTS today is a digital company that develops innovations in education, healthcare, financial services, entertainment and many others. Our solutions using big data, artificial intelligence, virtual and augmented reality are aimed at improving the quality of life of our subscribers, customers and employees.. For details, please visit the website We want to tell you about this. >> MTS is an innovative and constantly developing company, that makes everyday life more PURPOSE OF THE 2020 ANNUAL REPORT convenient richer and brighte. ANNUAL REPORT STRUCTURE The annual reporting tool gives MTS The report is comprised of four main sections: the opportunity to maintain a high level 1. About the Company, of openness and transparency by making 2. Management Report, investors and shareholders, as well as clients 3. Corporate Governance, and aware of the advanced solutions and services 4. Sustainable Development. that the Company implements in management processes and product lines, and of how sustainable development is integrated into the Company’s STRATEGICALLY-ORIENTED business strategy and the activities of its key REPORT divisions. The Report provides consolidated information The report is focused on the strategic vision on the main results of the Company’s business of the Company’s management, and the results in accordance with its strategic goals and objectives and key aspects of MTS business in accordance for the short, medium and long run. with the strategy. Special attention is paid to the completeness and quality of forecast/expert information on macroeconomics and regional 1 telecommunications markets In this Annual Report, the terms “MTS PJSC”, “MTS” and the “Company” should be understood as Mobile TeleSystems Public Joint Stock Company, and the term the “MTS Group” should be understood as a group of companies consisting of MTS PJSC and its subsidiaries. The figures contained in this Annual Report are as of December 31, 2020, unless other periods or dates are expressly indicated. DISCLAIMER KEY TOPICS OF THE REPORT As part of the Annual Report, we inform shareholders, drives a healthy competition, opens up new This Annual Report has been prepared by MTS PJSC solely for information purposes and may opportunities for businesses and individuals, contain statements based on predicted data or forecasts. Such statements or forecasts relate the investment community and all stakeholders and ultimately contributes to an improvement to matters other than historical facts or statements, and reflect the Company’s intentions, as openly as possible about the condition in the quality of people’s lives. beliefs or current expectations concerning, inter alia, performance results, financial condition, and prospects of our business. We strive to provide liquidity, efficiency, prospects, growth rates, and strategies of the Company and the industry − MTS assumes obligations in which it operates. The nature of the statements based on predicted data and forecasts comprehensive and unbiased information in the field of social responsibility implies risk and uncertainty, as they relate to events and depend on circumstances that may, about the Company, the environment where or may not arise in the future. The Company cautions that statements based on predicted and Ensuring sustainable development as one data and forecasts do not guarantee future performance and that actual performance results, we operate, a general situation in the markets of the largest Russian companies, an employer the financial condition and liquidity of the Company, as well as changes in the industry of our presence and the trends that we observe for tens of thousands of people, a significant in which the Company operates may differ significantly from those stated or assumed there. Our primary goal is to help shareholders taxpayer, and a reliable asset for investors. in the statements based on predicted data or forecasts contained in this report. Factors that may lead to material differences between the actual results and the assumptions contained understand the specifics of our business, We strive to follow the recommendations in statements based on predicted data or forecasts include general economic conditions our strategic priorities and demonstrate the results and standards of Russian regulators, as well prevailing in the markets in which the Company operates, competitive environment and risks of yearly operations in the context of the strategy as international organizations recognized associated with operating in such markets, market change in the industry and related by the world community, including industries, as well as other risks affecting the Company and its activities. Moreover, even if implementation. Thus, we contribute to a correct the UN, and we comply with the principles the Company’s performance results, financial condition and liquidity and the changes taking assessment of the risks and benefits of investing place in the industry in which the Company operates match those set forth in the statements of transparent and responsible business based on predicted data or forecasts presented herein, those results or changes may not be in MTS and, as a result, to informed investment practice. We are focused on setting illustrative of the results or changes in future periods. The Company does not undertake any decisions by the market participants. and achieving clear and specific objectives obligation to review or confirm expectations or estimates, or update any statements based on predicted data or forecasts to reflect the events or circumstances occurring or arising in the economic, environmental and social after the date of this report. In addition to this general obligatory part, we focus spheres, and we regularly and openly disclose on a number of separate topics in the 2020 Annual information about the results of our relevant Report. activities. − Compliance with corporate governance − The impact of the pandemic on the condition standards at the highest level is an absolute of MTS business, an external environment priority for MTS. We are constantly improving and society as a whole. How our own corporate governance system, is the current situation affecting implementation studying and applying the best world of our strategic objectives, and what measures practices, providing appropriate training have been taken by the Company to mitigate for our employees and creating a corporate risks, to protect its employees and clients culture whose integral parts include information and to ensure the continuity of its own activities, openness and transparency, adherence taking into account that the telecommunications to business ethics, understanding the need WHERE TO FIND THE ANNUAL REPORT component of our business directly affects to monitor management activities and striving the possibility of normal functioning for comprehensive protection of the investors’ of the country’s entire economic system? rights and interests. − Continuous improvement of our telecommunications network, The Report has been prepared in accordance The Annual Report In addition, MTS including the development of up-to-date with the requirements of the legislation is available online publishes sustainable and advanced 4G and 5G technology (interactive version) development reports of the Russian Federation, as well as the regulatory and in PDF format. on an annual basis. solutions. Being essentially an infrastructure requirements applicable to MTS. company, we are aware of our responsibility Federal Law No. 208-FZ “On Joint Stock for maintaining a high level of communication − Companies” dated December 26, 1995; Preliminary standards (in terms of increasing data Regulations on information disclosure approved by decision transmission rate, continuity, stability − by issuers of equity securities No. 454-P, of MTS PJSC and overall reliability of all systems, among approved by the Bank of Russia on December Board of Directors other things) and the role we play in enhancing 30, 2014; May 20,2020 the competitiveness of Russia and other Recommendations of the Corporate Governance Minutes 313 countries of our presence in the global − Code approved by the Board of Directors economic system. of the Bank of Russia on March 21, 2014. Approved by