KEY OPERATING HIGHLIGHTS 


Number of subscribers (million): 4Q 2020 4Q 2019 change, y-o-y 3Q 2020  change, y-o-y 
Internet access                  13.5    13.2    2%            13.4    1% 
B2C: Broadband                   12.4    12.2    2%            12.3    1% 
B2B: Broadband + VPN             1.1     1.1     5%            1.1     2% 
Pay TV                           10.8    10.4    4%            10.7    1% 
Incl. IPTV                       6.1     5.6     9%            5.9     3% 
Hosted PBX                       0.160   0.097   65%           0.147   9% 
Local telephony services         14.0    15.6    (10%)         14.5    (3%) 
ARPU[6] (RUB):       4Q 2020 4Q 2019 change, y-o-y 3Q 2020  change, y-o-y 
Internet access 
B2C: Broadband       395     402     (2%)          390     1% 
B2B: Broadband + VPN 3,372   3,455   (2%)          3,231   4% 
Pay TV               250     255     (2%)          245     2% 
Incl. IPTV           302     320     (5%)          298     2% 
Hosted PBX           1,186   1,238   (4%)          1,119   6% 
Blended ARPU[7]      546     553     (1%)          537     2%

Mobile business 


                                          4Q 2020 4Q 2019 change, y-o-y 3Q 2020  change, y-o-y 
Data Traffic, incl. MVNO,Pb               1,442   977     48%           1,351   7% 
Churn, %                                  (8.1%)  (9.5%)  (1.5 p. p.)   (7.3%)  0.8  p. p. 
Growth of active mobile Internet users, % 20.0%   39.6%   (19.6  p. p.) 25.5%   (5.5  p. p.) 
Subscriber base at the end of period      46.6    46.0    1.5%          -       -  1. The total number of Internet subscribers among households grew by 2% to 12.4 million in the fourth quarter of 2020

compared to the corresponding period of last year; ARPU was RUB 395. 2. The total number of Internet and VPN subscribers in B2B increased by 5% year-on-year to 1.1 million; ARPU was RUB

3,372. 3. The number of pay-TV subscribers grew by 4% to 10.8 million users compared to the corresponding period of last

year, with average ARPU of RUB 250 across B2C; ? the number of IPTV subscribers increased by 8% to 6.1 million, and ARPU was RUB 302 across B2C; 4. The mobile subscriber base grew to 46.6 million users in 2020, while the number of active mobile Internet users

increased by 20% in 4Q 2020 compared to the corresponding period of 2019. The mobile Internet data traffic growth

reached 38%; at the same time, cellular customer base churn decreased to 8.1%; 5. The number of local telephony subscribers decreased by 10% to 14.0 million.

KEY EVENTS RELATING TO FY 2020 AND AFTER THE END OF THE REPORTING PERIOD

Business news ? Rostelecom continues to develop and expand its range of products and services: ? A new remote working product line "Technologies PRO" launched to expand services for Internet broadband customers

with a number of products including dedicated customer support, antivirus, cloud storage on Yandex Disk and other; ? A unique comprehensive solution for high-precision remote body temperature measurement for offices. Based on

thermal imaging cameras, it offers a comprehensive software and hardware and can be easily integrated with clients'

owned control systems. A number of companies including ALROSA and LUKOIL have already tested the new product; ? An innovative solution for monitoring of solid domestic waste was introduced to the market, enabling the inspection

of waste collection sites, their operation schedules and compliance with standards, using video surveillance

cameras and AI; ? A new platform Wi-Fi 2.0 was launched for B2B clients, offering enhanced statistical and analytical tools for

tracking, analysing and measuring consumer behaviour while connected to public Wi-Fi networks; ? As part of the gaming business expansion a series of promotions and offerings were introduced to gamers, including

extra bonuses for broadband users of MY.GAMES, a brand-new faster game-friendly router RT-X by Rostelecom and a new

game, "Lost Ark", within the 'Gaming' tariff plan. In addition, further expansion of cloud gaming products saw the

launch to users across the entire country; ? Regular upgrades were made to the Wink digital platform, including:

? The launch of new TV packages - Transformer, Maximum, Premium and Super Hits subscription;

? Special terms for the "Watching together" shared viewing option introduced for multi-device watching,

connecting people from anywhere in the country;

? Payments for Wink subscription now made available via Tele2 Russia accounts;

? A new offer "Everywhere online" providing Tele2's clients with special subscription deals for the Wink video

entertainment platform.

The number of devices connected to Wink grew more than fourfold to 8 million gadgets. ? Expanded functionality and added options within the Rostelecom Key solution for:

? clients to use smart access control systems for household facilities, enabling doors to be opened remotely,

create keys for gates, basements, lofts and other entrances;

? remote control data from home utility meters and video surveillance service online ordering are now available

on mobile devices, along with alarm codes that allow doors to open in emergencies; ? As part of the further development of its convergent proposition:

? Sales of new tariff plans Premium History, Technologies of benefits PRO and new Internet options for devices

were launched;

? Mobile clients can now enjoy cloud gaming services (in partnership with GFN.RU); ? Within the Smart Home video surveillance services, Rostelecom:

? launched Smart utility meters that display data for entire households and individual utility systems;

? launched a new "Smart control and access management" platform which enables individual accounts to be created

for tenants, who can be "electronically lodged" in the system using RFID tags, and a new option for intelligent

video monitoring, including motion tracking features available on all moving smart home cameras from

Rostelecom. Cameras with audio now have a siren function; ? Rostelecom continues to grow its digital segment in 2020: ? As part of cybersecurity services:

? cybersecurity revenues grew more than twofold;

? Rostelecom launched two new services, including Incident Response Plan (IPR) and a cyber-attack imitation

platform called Red Teaming, which analyses cyber threats and assesses the existing defence capabilities on

their owned IT infrastructure.

? Upgraded version of the Solar Dozor solution launched to prevent data leaks and ensure security of

employee communications;

? A set of DDos-attacks security solutions such as Solar appScreener, IGA-platform Solar inRights and

web-security gate Solar webProxy were enhanced;

? Sales of Solar appScreener started in five new countries;

? Signed the largest information security contract with Singapore airlines for Solar appScreener. ? Rostelecom continues to grow its cloud services and data processing centres segments for B2B:

? Data Centers revenue grew more than twofold;

? Revenues from the Virtual PBX offering increased by 54%;

? Virtual Data Centre services revenues increased by 129%;

? The launch of a Virtual data center segment based on Tionix cloud platform;

? Rostelecom launched new data centers in Moscow (for 100, 600 and 200 racks), Saint-Peterburg for 800 racks and

Novosibirsk for 300 racks. The easternmost data centre was opened in Sakhalin (with an initial capacity of 25

racks and a potential for expansion to 180 racks); ? B2C fiber broadband revenues grew by 9,5%; ? Revenues from the Antivirus offering increased by 15%; ? Rostelecom continued to sign substantial contracts, while also executing large-scale projects:

? Rostelecom successfully provided video surveillance for the single election day and the Unified State Exam

(core and additional) as well as webcast;

? Rostelecom has agreed to provide VTB with a Single Corporate Telecommunication Network and Wi-Fi in more than

1,500 branches;

? Rostelecom completed setting up a Wi-Fi network across 400 Gazprombank branches;

? Signed agreement with the Ministry of Digital Development, Communications and Mass Media to connect Central

Electoral Commission facilities to a Single Telecommunications Network and provide information security

services;

? Rostelecom rolled out a comprehensive cross-country digital infrastructure for the 2021 National Census. ? Operator business segment highlights: ? O2O[8] revenues grew by 30% in 2020 with an increase in maintained third-party fibre optic capacity by 26,000 km

and expansion of base transceiver stations (BTS) we serve by almost 10,000; ? An uplift in segment margin by 14 p.p.; ? A new 350 Gbit per sec capacity route via Kazakhstan launched as part of TEA extension. ? Rostelecom's subsidiary Tele2 Russia continues steady and dynamic growth: ? Within the regions of presence achieved 96% population coverage for 4G networks, 93% for 3G and 97% of 2G networks; ? Key achievements in 5G rollout include the launch of international 5G roaming in Switzerland, a pilot 5G zone in

central Moscow together with Ericsson, and presentation of 5G capabilities in digital health at the CIPR (digital

industry of industrial Russia) conference; ? Tele2 launched a Health & lifestyle website; ? Digital cinema tariff options launched for clients as part of "Everywhere online" with full access to Wink video

library; ? A brand-new digital offering "Home under new rules" for all mobile operators servicing clients during the

quarantine period; ? The total client base of virtual operators with the Tele2 Russia network surpassed 2.8 million (excluding

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