CTC Media, Inc. Investor Presentation May 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 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 Launch of CTC- Love Channel on international in cable and satellite Launch of CTC Launch of Israel Acquisition of DTV Launch of CTC- Network Domashny Network Launch of Peretz (rebranded to Peretz international in Establishment of International in in 2011) Kazakhstan, Kyrgyzstan, CTC Media’s Kyrgystan Armenia, Georgia, internal advertising Acquisition of Azerbaijan, Thailand and sales house Launch of Sweet Channel 31 in uplink to HOT BIRD ‘Everest Sales’ me brand together Kazakhstan and a TV with KupiVip company in Moldova CTC and Domashny Launch of received digital licenses Videomore.ru online content portal 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 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 at High Group power ratio of 1.5x lower end of 5-8% range in compared to rivals due to attractive Current dividend yield >7%, the 2014, CTC Media Russian audience profiles2 highest among European media advertising revenue in line with companies the market Strong cash flow generation and net cash position 4 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 5 Sources: Video International, Russian Association of Communications Agencies, ZenithOptimedia, CIA World Factbook, Rosstat, Russkiy Mir 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 Maintained shares, % 2nd place 26.4 (all 10-45 demographic) 14.8 14.4 13.0 8.5 3.7 Q1 2014 Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding 27.4 15.3 13.1 12.1 9.5 4.1 Q1 2013 6 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, % Q1 2013 Q1 2014 19.3 18.5 Channels broadcasting Olympics were up 13.0 12.5 12.1 11.6 11.3 10.8 9.1 9.3 9.2 8.5 5.2 4.7 4.3 3.8 3.0 3.0 2.7 2.6 2.2 2.3 2.2 2.0 2.0 1.9 1.8 1.9 1.8 1.8 1.7 1.4 1.3 1.5 1.4 1.5 1.3 0.9 0.9 0.6 Channel TNT CTC Russia 1 NTV Ren TV Channel 5 TV-3 Russia 2 Peretz Pyatniza *** Disney * Russia 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 7 (**) 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 Third multiplex More clarity expected by the end of 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 9 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 $ 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 10 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 CEEAverage 2008 2013 Consumer loans / GDP Mortgages / GDP Sources: (1) ZenithOptimedia, Company’s estimates 11 (2) National Central Banks TV Is the Most Attractive Advertising Medium in Russia FY 2012 cost per thousand in Russia (US$)² TV is the only medium with truly national reach TV 2.0 Important social and cultural platform Radio 3.9 More free-to-air networks than in other countries High quality free-to-air content offering Internet 5.8 Newspapers 5.6 Magazines 6.3 1 Ad spend in Russia by media segment (%) FY 2012 TV cost per thousand (US$)² 48% 48% 43% Russia 2.0 Central & Eastern Europe 4.1 30% 31% 22% Asia Pacific 16.4 18% 12% Western Europe 19.8 11% 10% 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 12 (2) Initiative Media 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 13 * 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 44) (**) 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 42-43) (***) 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 44) (****) Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A.