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MTG Capital Markets Day
           June 14, 2012



       Boris Podolsky
 Acting Chief Executive Officer
     Chief Financial Officer
Boris Podolsky: Background




                              Acting CEO of CTC Media since December 2011


                              CFO of CTC Media since December 2007


                              Graduate of St. Petersburg University of Economics, CPA


                              Served as Director, Finance and Corporate Reporting at
                               Mobile TeleSystems (2004-2007)


                              Held various positions at Ernst & Young (1994-2004)




                                                                                     1
From Private TV Network to Public Media Holding
                                                                                  Acquisition of the            Launch of CTC-
                                                                                      DTV group                                                Launch of CTC-
                                                                                                                  international in
                                                                                                                                               international in
                                                                                                                       Israel
                                                                                    Acquisition of                                              Kazakhstan,
                                                                                                                                                 Kyrgyzstan,
                                                                                     Channel 31 in              Establishment of             Armenia, Georgia
                                                                                      Kazakhstan                   CTC Media’s
                                                                                                               internal advertising
                                                                                  CTC Media enters                                            Uplink of СTC-
                                                                                                                    sales house
  CTC Media was         Launch of CTC                     Launch of          Moldova free-to-air TV            ‘Everest Sales’
                                                                                                                                              international to the
founded as StoryFirst                                                                 market                                                  HOT BIRD satellite
                                Network                 Domashny Network
                                                                                                                                                (Europe, Middle
  Communications                                                                                                    Launch of
                                                                                    Acquisition of             ‘Videomore’ online
                                                                                                                                               East, North Africa
                                                                                  Costafilm and Soho                                           and Central Asia)
                                                                                                                  social television
                                                                                   Media production                   network
                                                                                      companies




  1989           1994           1996           2002         2005          2006          2008             2009            2010         2011           2012
                                                                                                                                  Launch of CTC-
                                                                                                                              international in Germany
                                                                                                                                   and the Baltics

                                                                                                  Launch of CTC-              Telcrest Investments
             TV broadcasting             Modern Times Group     Initial Public Offering                                     Limited acquired a 25%
              in Russia began             became a shareholder           on NASDAQ                    international in
                                                                                                                              stake in СTС Media from
                                              of CTC Media                                                  USA
                                                                                                                                     Alfa Group

                                                                                                                            Costafilm and Soho Media
                                                                                                                               united into Story First
                                                                                                                                    Production

                                                                                                                            DTV is rebranded to Peretz

                                                                                                                                                          2
We Fully Capture the Value Chain by Being a Vertically Integrated TV Broadcaster


                                                                                            CTC – target audience All 6-54
                                                                                            Domashny – target audience Females 25-59

                        FREE-TO-AIR ( RUSSIA)                                               Peretz* – target audience All 25-59



                                                                                            Kazakhstan             Channel 31
                             FREE-TO-AIR ( CIS)
                                                                                            Moldova                СTС/TV Dixi channel


                      CONTENT PRODUCTION                                                    Story First Production



                                 AD-SALES                                                   Internal advertising sales house Everest



                CTC-INTERNATIONAL (PAY-TV)                                                  International version of CTC channel


                                                                                            Various digital projects
                                  NEW MEDIA                                                 Social TV Network Videomore.ru
                                                                                            Women’s portal Domashniy.ru
 Note: (*) DTV Network operates under Peretz brand name & logo starting from October 2011




                                                                                                                                         3
We Are the Largest Independent Broadcaster in Russia

   Combined audience shares, %
   (all 6-54 demographic)




                                                                                                                          Q1 2011
         22.3     22.4                                                                                                    Q1 2012




                                            16.6
                                   16.1
                            15.1                            15.4
                                                   14.2
                                                                   12.9


                                                                                     9.3

                                                                               6.9

                                                                                                 4.5    4.4              4.4
                                                                                                                   3.1




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


 Source: TNS Gallup Media




                                                                                                                                    4
Russian Ad Market Has Significant Potential for Further Development…

      Russian TV ad market was #9 in the world                                                       Free-to-air TV ad market growth1
                     and #5 in Europe in 20111…
           58.8



                  19.2                                                                                                          10.2
                                                                                                                                                                                8.9

                             11.4                                                                                                                                7.0
                                       10.2                                                                                                      5.8
                                                     5.8                                                                  4.7
US $ bln




                                                                                         US $ bln
                                                              5.4       4.5                                                                                               4.4
                                                                                  4.4                                                                      3.6
                                                                                                             3.3                           3.0

                                                                                                       1.4



           USA    Japan     China     Brazil        Italy   Germany   France    Russia                  2004               2008              2009           2010           2011

                                                                                                                                       TV Ad Market    Total Ad Market
   …and is expected to become # 5 in the world
                                                                                                     Total Russian ad market forecast2
                      and #1 in Europe in 20141
           65.5


                                                                                                                                                                          642
                   20.4
                            16.2
                                      13.7                                                                                                       439
                                                    5.9      5.8
                                                                      4.9
US $ bln




                                                                                4.7




                                                                                           RUB bln
                                                                                                                   219




           USA    Japan    China     Brazil    Russia Germany         Italy    France                              2010                       2015F                      2020F

   Note: All TV Ad Markets figures are net of VAT
   Sources: (1) Zenith Optimedia, Company’s estimates
             (2) Video International



                                                                                                                                                                                      5
…Due to Relatively Low Ad Spend as % of GDP and Underleveraged Consumer




 Ad spend as % of GDP¹                                                                                                                       Retail and mortgage loans as % of GDP2



       1.8
                1.7                                                                                                                          8%


 1.4                                                                                                                                                   8%
                      1.4

                                         1.2                                                                                                                    14%
                                   1.1
                                               1.0                                                                                                                                   5%
                             0.9                     0.9 1.0                                                                                                             9%                      15%
                                                                 0.9                     0.8
                                                                       0.8   0.8                                                             37%                                                              13%
                                                                                   0.7          0.7      0.7
                                                                                                               0.6   0.6         0.6                   30%
                                                                                                                           0.5         0.5                                                                                12%
                                                                                                                                                                21%                  19%         15%
                                                                                                                                                                         21%
                                                                                                                                                                                                              12%                         7%
                                                                                                                                                                                                                                    14%            9%
                                                                                                                                                                                                                          6%
                                                                                                                                                                                                                                          3%




                                                                                                                                             Estonia




                                                                                                                                                                                                 Hungary




                                                                                                                                                                                                                                          Russia
                                                                                                                                                                                     Lithuania
                                                                                                                                                                         Czech Rep




                                                                                                                                                                                                               Bulgaria
                                                                                                                                                       Latvia



                                                                                                                                                                Poland




                                                                                                                                                                                                                          Romania
                                           USA




                                                                                                                       Ukraine
                                                                   UK




                                                                                           CEE Average
   Slovenia




                                                                                                           Russia
                  Bulgaria




                                                       Belgium
                               Austria




                                                                               Germany




                                                                                                                                   Poland
                                                                                                                       2008      2011           Household loans excl mortgages, % of GDP                   Mortgage loans, % of GDP




 Sources: (1) ZenithOptimedia, Company’s estimates
              (2) Eurostat, National Central Banks, 2011




                                                                                                                                                                                                                                          6
TV Is the Most Attractive Advertising Medium in Russia

                                                                                                                   H1 2011 Cost per Thousand in Russia (US$)²
        TV is the only medium with truly national reach
        Important social and cultural platform                                                                              TV          2.1

        More free-to-air networks than in other countries
                                                                                                                         Radio                 3.0
        High quality free-to-air content offering
                                                                                                                        Internet                              5.0


                                                                                                                    Newspapers                                      5.6
               Ad spend in Russia by media segment1 (%)
    50% 49%                                                                                                          Magazines                                            6.1
 43%
                                                                                                                    H1 2011 TV Cost per Thousand (US$)²

                                         31%
                                                                                                                         Russia    2.1

                              19%                             18%                                                           Asia               8.0
                        16%                   15%                13%
                                                 14%
                                                                    11%
                                                                                                                 Western Europe                  9.0
                                                                                     6%
                                                                                          4% 4%
                                                                                                            3%
                      1%                                                                          0.4% 2%        Eastern Europe                        11.0

     TV                Internet              Press               Outdoor              Radio          Other
                                                                                                                  North America                                            17.0
                                           2004          2011           2015F
 Sources:   (1) Russian Association of Communication Agencies, Video International
            (2) Initiative Media




                                                                                                                                                                                  7
Internet Consumption Is Growing…

   2011: Russia is #1 in Europe by number of Internet users                                   Increase of time spend online (hours per day)

              50.8              50.1
                                                                                                           3.1
                                                                                                                                                                           2.9
                                                  42.3                                               2.7
                                                                     37.2                                              2.4                                   2.3
                                                                                                                                      2.1
                                                                                                                 1.7
                                                                                      23.7

                                                                                                                               0.9
                                                                                                                                                      0.7
                                                                                                                                               0.5



           Russia           Germany            France                UK              Italy           China       Russia            Brazil       India         USA          Japan
                                         Internet users, mln                                                                        2009      2015F

   2011: Internet Ad market growth in Russia (USD, mln)                                       Broadband penetration by country, 2010 (Russia 2011, 2020F)

                                                                             1,419
                                                                                              96%

                                                                                                           79%
                                                                                                                 70%         70%        69%

                                                               686                                                                                   49%     46%
                                                511                                                                                                                  40%          37%
                 369             370




                2007            2008           2009           2010           2011            South    Canada     USA         UK        Russia Hungary       Czech   Turkey       Russia
                                                                                             Korea                                     2020F                 Rep                  2011
 Sources: ComScore, Boston Consulting Group, Zenith Optimedia, AKAR, Mindshare Interaction




                                                                                                                                                                                  8
…but Not at the Expense of TV Usage

                                                                      Average linear TV viewership globally is increasing



                                                                                                                                                      196
                                                                                                                               192         190
                                                             186                              187     188
                                                                    183       184      185
                                   Minutes per day




                                                             2003   2004      2005     2006   2007    2008                2009             2010      2011



                                                                     Europe                                                      Russia
                                                                                                                                                   248

                                                                      227        228
                                                              222
                                           Minutes per day




                                                                                                             Minutes per day
                                                                                                                                     235




                                                             2009    2010       2011                                            Q1 2011           Q1 2012


   Source: Eurodata TV Worldwide




                                                                                                                                                            9
We Continue to Deliver Strong Top and Bottom-line Growth…



                                                                                                              766
                                                                   730
                                                                                                680                                                                                                      280

                                                                                                                                                                                                                                               247         45%
                                                                                                                                           250
                                                                                  574
                                                                                                                                                                               41%          220                                   221
                                                     532
                                                                                                                                                       39%                                              38%          211
                                                                                                                                                                  38%                       41%
                                                                                                                                           200                                                                       37%
                                       427                                                                                                                                      174
                                                                                                                                                                                                                                                           35%
                                                                                                                                                                                                                                 32%          32%
                                                                                                                                           150

                         273
                                                                                                                                                                   104
                                                                                                                                           100
            181                                                                                                                                        71         26%          26%         27%                                                             25%




                                                                                                                                            US $ bln
US $ bln




                                                                                                                                             50        22%
                                                                                                                                                                                                        21%                      21%
                                                                                                                                                                                                                     16%                      20%

                                                                                                                                                0                                                                                                          15%
            2004        2005           2006          2007          2008          2009          2010          2011                                      2004       2005         2006        2007         2008   **   2009    **   2010         2011    **

                                (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 27)
           (**)      2008 OIBDA and OIBDA margin are adjusted to exclude a $232.7 million charge arising from the impairment of the intangibl e 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, DTV brand name 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; (see reconciliations on page 25-26)
           (***)    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 27)
           (****)   Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A. Modern Times Group, Antena3, ITV plc, Metropole Television, Mediaset, ProSiebenSat, Mediaset Espana, TF1




                                                                                                                                                                                                                                                                 10
…and to Diversify Our Lines of Business



            2004                            Q1 2012


                                                           Sublicensing
                                                                5%
                                                13%
                                                      9%       CIS
                                          70%                  2%

                                                             New Media
           Russian FTA                      Russian FTA        0.2%
           Broadcasting                     Broadcasting
              100%                              92%            CTC-
                                                           International
                                                               0.4%




                                                                   11
We Have Clear Strategic Priorities


             Content                         Broadcasting                     New Media

  •   Build library                        Stabilize audience share   Distribution platforms:
  •   Develop in-house production          Improve audience profile   • Enhance existing platforms
  •   Invest in ideas development
  •   Increase production volumes
                                                                              female portal
  •   Create strong brands                 Grow audience and market
                                           shares                             comedy portal
                                                                      • Develop distribution
                                           Grow audience and market
                                                                        collaboration (VK, Youtube)
                   Up to 20%               shares
                                                                      • Be available on all screens
                  of CTC Media channels’
                                           Expand to markets with     Diversification:
                  programming grid         Russian-speaking           • iVas on existing platforms
                  (from ~10% in 2011)      audiences                  • Games
                                                                      • Transmedia branded
                                                                        entertainment content



               Content is king…. Distribution platform is queen

                                                                                                 12
We Focus on Developing and Creating Local Content

  Long-term relationships with                   Discover new third
  large independent producers                      party partners                   In-house production

                    Amedia
                                                        Karo Production




                        YBW




           Good Story Media / Lean-M             Sputnik Vostok Production




  Stable and predictable pricing                                                       Securing all rights to the own content
                                         Diversification of content suppliers
  Right of first look for new products                                                 Full control over production costs & processes
                                         Discovering new creative talents & ideas
  Proven track record                                                                  ~ 60 projects currently under development




                                                                                                                                 13
More Original Ideas Are Generated by Our Enhanced Internal Creative Team




       Totally   60 titles in development
                                                Titles in full scale production – 12


       53 titles have been                      Pilots in production – 10
       presented to channels
                                                Pilots to be confirmed – 3

                                                Titles under development – 28
       7 titles under initial
       development




    During 2008-2010 Costafilm produced 8 titles and 4 pilots, Soho Media – 9 titles


                                                                                       14
CTC Improves Its Audience Profile in the Most Commercially Attractive Demographic




    25%
                                        76% of advertisers’ budgets
                   22%

                                                    19%                                                                       ■ 76% of total ad spending is concentrated
    20%
                                                                                                                                in 14-44 audience
                                                             17%
                                                                      15%                                                     ■ 58% is a share of 14-44 audience in CTC
    15%
                                                                                                                                channel total viewership in Q1 2012, up
                                14%
              15%                                    13%                                                                        from 51% in Q1 2008
                                       12%
                                                                      12%
                                                               10%              10%      10%                                  ■ We continue working on improving
    10%                                                                      9%                                                 demographic profile of CTC’s audience to
                                                                                        7%       8%                             better match advertiser demand
                                                                                  9%                 7%           7%
                                              7%                                         8%                8%
                                                      7%               7%                                               5%
                           7%            7%                   7%                                7%
      5%
                                                                                                          5%             4%
                 2%          3%                   Advertisers' demand FY 2010
                                                  CTC audience demographic profile Q1 2012
                                                  CTC audience demographic profile Q1 2008                        0%
      0%
                4-13        14-19       20-24       25-29    30-34   35-39      40-44   45-49   50-54     55-65        66+




 Sources: TNS Gallup Media, Video International




                                                                                                                                                                    15
Domashny and Peretz Are Benefiting from Fragmentation of Russian TV Market


             Audience shares, all 6-54 demographic                                                                               Channels’ target demographics, %



                                                                                                                                                                                    3.9

                                                                                                                                                                          3.2

 60%                                                                                                                                                    2.6

                                                                                                                                       2.0



 50%                                                 Top 3 state-controlled channels
                                                                                                                                    FY 2011           Q1 2012           FY 2011   Q1 2012



 40%



 30%                                                             1st tier channels


                                                                2nd tier channels
 20%



 10%
                2004               2005              2006               2007              2008               2009            2010              2011           Q1 2012

 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, Muz TV, 2x2, TV Center, 7TV




                                                                                                                                                                                            16
We Are Strengthening Our Market Positions in the CIS

     31 Channel, Kazakhstan (all 6-54 demographics)


                                  14.8      14.5
                                                        Significant growth in CIS Segment revenue and OIBDA margin
    Target audience




                        10.5
       share, %




                                                                                                                     17.8



                                                                                              12.6
                                                                          11.0
                                                                                                                     20.2%
                       Q1 2010   Q1 2011   Q1 2012
                                                                                              4.3%




                                                               US$ mln
                                                                          -20.2%
       CTC/TV DIXI, Moldova (urban 6-54 demographics)

                                             5.5
     Target audience




                                   4.1
        share, %




                                                                         FY 2009             FY 2010                FY 2011
                         2.8
                                                                                   Revenue           OIBDA margin




                       Q1 2010   Q1 2011   Q1 2012




                                                                                                                              17
Plus We Continue to Expand Internationally…

   Increasing CTC Media’s international brand awareness & value through CTC-international
                                          December 2009 – Dish
         USA                           May 2011 – Time Warner; RMG                                                3.5 mln
                                        October 2011 – Cablevision


        Israel                            June 2011 – Hot; Yes                                                    1.5 mln




                                                                                    Russian-speaking population
      Germany                          March 2011 – Kartina TV IPTV                                                6 mln


        Baltic                     October 2011 – Viasat Broadcasting                                              4 mln
        States


     Kazakhstan                     February 2012 – Digital TV; Icon TV                                           12.3 mln

       Europe
     North Africa
                                  February 2012 – uplink service HOT BIRDTM
     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

                                  Total Russian-speaking population                                               40.2 mln


                                                                                                                             18
…and Enter New Platforms to Be Wherever Our Viewers Are


                    Videomore          Domashny portal    Channels’ websites


      Web
        +
   Partnership
   with social
    networks



   Smart TV &
     IPTV




    Mobile
   platforms




                                                                               19
…on the Way to Become a Leading New Media Player among Russian TV Companies




    # 2 legal video portal in Russia by audience                                                                                  In TOP-10 Russian most visited women portals

                                                                                                   up
    7 mln unique monthly visitors*                                                               180%                               1.5 mln unique monthly visitors*
                                                                                                  y-o-y

 More than 11,000 units of content                                                                                                Highest affinity in female 25-44 audience   150%
                                                                                                                                                                                 vs
                                                                                                                                      (among TOP-10 women portals)              107%
 Registered users spend 40 min
    on VideoMore daily                                                                                                             Unique niche focused on traditional family values

 Combination of video content streaming &                                                                                         Competitive advantage due to video content

    social network functionality                                                                                                      library and production capabilities


             Plus over a million unique monthly visitors on our other New Media platforms
 Note: (*) Videomore average monthly unique visitors in Q1 2012; Domashniy portal average monthly unique visitors in March 2012




                                                                                                                                                                                20
High Levels of Cash Conversion and Return on Capital Employed

    % of OIBDA Converted to Operating Cash Flow                                                                                        Return on Capital Employed*

    US$ mln
    200
                                                                                              Cash investments in                    50%   46%
                                                186                        186                content up y-o-y 43%
    180                                                                                            ($108 mln)                        45%
                                   158                                                                                               40%
    160                                                                                                                                          36%
                                                             133                                                                     35%               33%                     2006-2011
    140
                                                                                                                                                                               average
                      117                                                               116                                          30%                                 27%
    120                                                                                                                                                      27%   27%         ROCE: 33%

    100                                                                                                                              25%
                                                                          84%
      80                          72%                                                                                                20%
                     67%                       66%          63%
      60                                                                                                                             15%
                                                                                       47%
      40                                                                                                                             10%
      20                                                                                                                             5%
      0                                                                                                                              0%
                    2006 2007 2008 2009 2010 2011                                                                                          2006 2007 2008 2009 2010 2011


                                         Operating Cash Flow
                                         % of OIBDA converted



    Note: (*) ROCE excludes one-off non-cash asset impairment charges recognized in 2008, 2009 and 2011 (see page 11 for details).




                                                                                                                                                                                  21
Q1 2011 Financial Highlights

 9pp                  +19%
above
                       in Rub
                                                    +38%                           +4.7pp
market   REVENUES                        OIBDA                    OIBDA MARGIN
         $191.1 mln                   $55.1 mln                       28.8%


                                                               CASH INVESTMENTS
             EPS                  NET CASH POSITION
                                                                  IN CONTENT
           $0.21                     $111.0 mln                    $85.2 mln +10%
+50%


                                               EXPECTED DIVIDEND
                   DIVIDEND PAID IN Q1
                                                 PAYOUT IN 2012
                   $0.13 per share           52% of 2011 net income

          Investing in quality content and returning excess cash to shareholders


                                                                                    22
To Conclude…


     The largest independent and the only publicly listed broadcaster in Russia


     Growth company offering unique play on growing Russian & CIS TV
     advertising markets


     Targeting audiences which are most attractive to advertisers


     Controlling the whole value chain by vertically integrating content
     production, distribution and advertising sales


     High margins by industry standards & strong cash flow generation


     Commitment to returning surplus cash to shareholders



                                                                                  23
MTG Capital Markets Day
           June 14, 2012



       Boris Podolsky
 Acting Chief Executive Officer
     Chief Financial Officer
Appendix




 Voroniny – sitcom, CTC Network (Everybody loves Raymond format)   Doctor Zaytseva’s Diary – sitcom, CTC Network (Doctor’s Diary format)



                                                                                                                                 25
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
                                                                                                            income tax                                   Fully
                                                                             Total                              and                                     diluted
                                                                           operating        Operating     noncontrolling   Income tax        Net       earnings
               (US$ 000’s except per share data)            OIBDA          expenses          income           interest       expense       income      per share

               Three Months Ended December 31, 2011

               Adjusted non-US GAAP results                 $ 92,757       $ (148,725)         $ 88,033         $ 93,830    $ (28,604)      $ 61,434       $ 0.39

               Impact of impairment loss                    (89,539)          (89,539)         (89,539)         (89,539)        3,570       (85,969)        (0.55)
               Results as reported
               (under US GAAP, except for OIBDA which
               is a non-GAAP financial measure)              $ 3,218       $ (238,264)        $ (1,506)          $ 4,291    $ (25,034)    $ (24,535)      $ (0.16)




                                                                                                             Income before                                Fully
                                                                                Total                       income tax and                               diluted
                                                                              operating      Operating      noncontrolling Income tax         Net       earnings
                (US$ 000’s except per share data)             OIBDA           expenses        income            interest     expense        income      per share

                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




                                                                                                                                                                     26
Reconciliation of Non-GAAP Measures (continued)

  Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other
  corresponding GAAP financial measures
                                                                                    Total                                                                             EPS
                                                                                  Operating       Operating        Net Income     Income Tax                         (fully
               (US$ 000’s except per share data)                   OIBDA          Expenses         income          Before Tax       Expense        Net Income       diluted)

               Year ended December 31, 2008

               Adjusted non-US GAAP results                        $ 280,241      $ (373,307)         $ 266,864      $ 237,077       $ (50,205)       $ 176,133        $ 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    $ (605,990)          $ 34,181        $ 4,394       $ (19,874)        $ 22,454        $ 0.14




                                                                                                        Income                                      Net income      Fully
                                                                            Total                        before      Income          Non-          attributable to diluted
                                                                          operating     Operating     income tax       tax        controlling     CTC Media, Inc. earnings
               (US$ 000’s except per share data)              OIBDA       expenses       income        and non-     expense        interest        stockholders per share

               Year ended December 31, 2009

               Adjusted non-US GAAP results                  $ 211,256    $ (306,311) $ 199,802        $ 195,972     $ (49,374)      $ (2,630)         $ 143,968       $ 0.91


               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)      $ (2,630)         $ 100,389       $ 0.64




                                                                                                                                                                                 27
Reconciliation of Non-GAAP Measures (continued)
 Reconciliation of consolidated OIBDA to consolidated operating income
 USD mln                 Q1 2012   Q1 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004
 Operating income            49,971 35,928 122,685 207,118 152,475 34,181 193,061 154,313 90,187 62,559
 Add: depreciation and
                              5,157     3,936   17,649   13,736    11,454   13,379   27,361   19,651   13,920      7,962
 amortization

 OIBDA                       55,128    39,864 140,334 220,854 163,929       47,560 220,422 173,964 104,107        70,521

 Reconciliation of consolidated OIBDA margin to consolidated operating income margin
 USD mln                 Q1 2012  Q1 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004
 Operating margin            26.1% 21.7% 16.0% 34.4% 30.1%           5.3% 40.9% 41.6%       38.0% 40.2%
 Add: depreciation and
 amortization as              2.7%     2.4%      2.3%     2.3%      2.3%    2.1%      5.8%    5.3%     5.8%       5.1%
 percentage of revenue

 OIBDA margin                28.8%     24.1%    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


                                                                                                                           28
Contact Information and Disclaimer

      For further information please visit www.ctcmedia.ru or contact:

      Ekaterina Ostrova
                                                                               Irina Klimova
      Director, Investor Relations
                                                                               Investor Relations Manager                            E-mail: ir@ctcmedia.ru
      Tel: +7 (495) 783 3650
                                                                               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 Russian advertising market growth; statements regarding share
      trends in changing audience in 2012; statement regarding Russian Internet consumption growth; developments in the volume and pricing of television advertising in the
      Company’s target markets; the Company’s anticipated advertising sellout; the Company’s anticipated operating expenses and capital expenditures and others. 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 continued
      successful operation of the Company’s own internal sales house structure; depreciation of the value of the Russian ruble compared to the US dollar; 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 February 28, 2012 and our recently report on Form 10-Q filed with the SEC on May 3, 2012. 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.




                                                                                                                                                                                   29

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9. boris podolsky ctc media

  • 1. MTG Capital Markets Day June 14, 2012 Boris Podolsky Acting Chief Executive Officer Chief Financial Officer
  • 2. Boris Podolsky: Background  Acting CEO of CTC Media since December 2011  CFO of CTC Media since December 2007  Graduate of St. Petersburg University of Economics, CPA  Served as Director, Finance and Corporate Reporting at Mobile TeleSystems (2004-2007)  Held various positions at Ernst & Young (1994-2004) 1
  • 3. From Private TV Network to Public Media Holding Acquisition of the Launch of CTC- DTV group Launch of CTC- international in international in Israel Acquisition of Kazakhstan, Kyrgyzstan, Channel 31 in Establishment of Armenia, Georgia Kazakhstan CTC Media’s internal advertising CTC Media enters Uplink of СTC- sales house CTC Media was Launch of CTC Launch of Moldova free-to-air TV ‘Everest Sales’ international to the founded as StoryFirst market HOT BIRD satellite Network Domashny Network (Europe, Middle Communications Launch of Acquisition of ‘Videomore’ online East, North Africa Costafilm and Soho and Central Asia) social television Media production network companies 1989 1994 1996 2002 2005 2006 2008 2009 2010 2011 2012 Launch of CTC- international in Germany and the Baltics Launch of CTC- Telcrest Investments TV broadcasting Modern Times Group Initial Public Offering Limited acquired a 25% in Russia began became a shareholder on NASDAQ international in stake in СTС Media from of CTC Media USA Alfa Group Costafilm and Soho Media united into Story First Production DTV is rebranded to Peretz 2
  • 4. We Fully Capture the Value Chain by Being a Vertically Integrated TV Broadcaster CTC – target audience All 6-54 Domashny – target audience Females 25-59 FREE-TO-AIR ( RUSSIA) Peretz* – target audience All 25-59 Kazakhstan Channel 31 FREE-TO-AIR ( CIS) Moldova СTС/TV Dixi channel CONTENT PRODUCTION Story First Production AD-SALES Internal advertising sales house Everest CTC-INTERNATIONAL (PAY-TV) International version of CTC channel Various digital projects NEW MEDIA Social TV Network Videomore.ru Women’s portal Domashniy.ru Note: (*) DTV Network operates under Peretz brand name & logo starting from October 2011 3
  • 5. We Are the Largest Independent Broadcaster in Russia Combined audience shares, % (all 6-54 demographic) Q1 2011 22.3 22.4 Q1 2012 16.6 16.1 15.1 15.4 14.2 12.9 9.3 6.9 4.5 4.4 4.4 3.1 Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group Prof -Media UTV Russia Holding Source: TNS Gallup Media 4
  • 6. Russian Ad Market Has Significant Potential for Further Development… Russian TV ad market was #9 in the world Free-to-air TV ad market growth1 and #5 in Europe in 20111… 58.8 19.2 10.2 8.9 11.4 7.0 10.2 5.8 5.8 4.7 US $ bln US $ bln 5.4 4.5 4.4 4.4 3.6 3.3 3.0 1.4 USA Japan China Brazil Italy Germany France Russia 2004 2008 2009 2010 2011 TV Ad Market Total Ad Market …and is expected to become # 5 in the world Total Russian ad market forecast2 and #1 in Europe in 20141 65.5 642 20.4 16.2 13.7 439 5.9 5.8 4.9 US $ bln 4.7 RUB bln 219 USA Japan China Brazil Russia Germany Italy France 2010 2015F 2020F Note: All TV Ad Markets figures are net of VAT Sources: (1) Zenith Optimedia, Company’s estimates (2) Video International 5
  • 7. …Due to Relatively Low Ad Spend as % of GDP and Underleveraged Consumer Ad spend as % of GDP¹ Retail and mortgage loans as % of GDP2 1.8 1.7 8% 1.4 8% 1.4 1.2 14% 1.1 1.0 5% 0.9 0.9 1.0 9% 15% 0.9 0.8 0.8 0.8 37% 13% 0.7 0.7 0.7 0.6 0.6 0.6 30% 0.5 0.5 12% 21% 19% 15% 21% 12% 7% 14% 9% 6% 3% Estonia Hungary Russia Lithuania Czech Rep Bulgaria Latvia Poland Romania USA Ukraine UK CEE Average Slovenia Russia Bulgaria Belgium Austria Germany Poland 2008 2011 Household loans excl mortgages, % of GDP Mortgage loans, % of GDP Sources: (1) ZenithOptimedia, Company’s estimates (2) Eurostat, National Central Banks, 2011 6
  • 8. TV Is the Most Attractive Advertising Medium in Russia H1 2011 Cost per Thousand in Russia (US$)²  TV is the only medium with truly national reach  Important social and cultural platform TV 2.1  More free-to-air networks than in other countries Radio 3.0  High quality free-to-air content offering Internet 5.0 Newspapers 5.6 Ad spend in Russia by media segment1 (%) 50% 49% Magazines 6.1 43% H1 2011 TV Cost per Thousand (US$)² 31% Russia 2.1 19% 18% Asia 8.0 16% 15% 13% 14% 11% Western Europe 9.0 6% 4% 4% 3% 1% 0.4% 2% Eastern Europe 11.0 TV Internet Press Outdoor Radio Other North America 17.0 2004 2011 2015F Sources: (1) Russian Association of Communication Agencies, Video International (2) Initiative Media 7
  • 9. Internet Consumption Is Growing… 2011: Russia is #1 in Europe by number of Internet users Increase of time spend online (hours per day) 50.8 50.1 3.1 2.9 42.3 2.7 37.2 2.4 2.3 2.1 1.7 23.7 0.9 0.7 0.5 Russia Germany France UK Italy China Russia Brazil India USA Japan Internet users, mln 2009 2015F 2011: Internet Ad market growth in Russia (USD, mln) Broadband penetration by country, 2010 (Russia 2011, 2020F) 1,419 96% 79% 70% 70% 69% 686 49% 46% 511 40% 37% 369 370 2007 2008 2009 2010 2011 South Canada USA UK Russia Hungary Czech Turkey Russia Korea 2020F Rep 2011 Sources: ComScore, Boston Consulting Group, Zenith Optimedia, AKAR, Mindshare Interaction 8
  • 10. …but Not at the Expense of TV Usage Average linear TV viewership globally is increasing 196 192 190 186 187 188 183 184 185 Minutes per day 2003 2004 2005 2006 2007 2008 2009 2010 2011 Europe Russia 248 227 228 222 Minutes per day Minutes per day 235 2009 2010 2011 Q1 2011 Q1 2012 Source: Eurodata TV Worldwide 9
  • 11. We Continue to Deliver Strong Top and Bottom-line Growth… 766 730 680 280 247 45% 250 574 41% 220 221 532 39% 38% 211 38% 41% 200 37% 427 174 35% 32% 32% 150 273 104 100 181 71 26% 26% 27% 25% US $ bln US $ bln 50 22% 21% 21% 16% 20% 0 15% 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 ** 2009 ** 2010 2011 ** (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 27) (**) 2008 OIBDA and OIBDA margin are adjusted to exclude a $232.7 million charge arising from the impairment of the intangibl e 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, DTV brand name 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; (see reconciliations on page 25-26) (***) 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 27) (****) Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A. Modern Times Group, Antena3, ITV plc, Metropole Television, Mediaset, ProSiebenSat, Mediaset Espana, TF1 10
  • 12. …and to Diversify Our Lines of Business 2004 Q1 2012 Sublicensing 5% 13% 9% CIS 70% 2% New Media Russian FTA Russian FTA 0.2% Broadcasting Broadcasting 100% 92% CTC- International 0.4% 11
  • 13. We Have Clear Strategic Priorities Content Broadcasting New Media • Build library Stabilize audience share Distribution platforms: • Develop in-house production Improve audience profile • Enhance existing platforms • Invest in ideas development • Increase production volumes female portal • Create strong brands Grow audience and market shares comedy portal • Develop distribution Grow audience and market collaboration (VK, Youtube) Up to 20% shares • Be available on all screens of CTC Media channels’ Expand to markets with Diversification: programming grid Russian-speaking • iVas on existing platforms (from ~10% in 2011) audiences • Games • Transmedia branded entertainment content Content is king…. Distribution platform is queen 12
  • 14. We Focus on Developing and Creating Local Content Long-term relationships with Discover new third large independent producers party partners In-house production Amedia Karo Production YBW Good Story Media / Lean-M Sputnik Vostok Production Stable and predictable pricing  Securing all rights to the own content Diversification of content suppliers Right of first look for new products  Full control over production costs & processes Discovering new creative talents & ideas Proven track record  ~ 60 projects currently under development 13
  • 15. More Original Ideas Are Generated by Our Enhanced Internal Creative Team Totally 60 titles in development Titles in full scale production – 12 53 titles have been Pilots in production – 10 presented to channels Pilots to be confirmed – 3 Titles under development – 28 7 titles under initial development During 2008-2010 Costafilm produced 8 titles and 4 pilots, Soho Media – 9 titles 14
  • 16. CTC Improves Its Audience Profile in the Most Commercially Attractive Demographic 25% 76% of advertisers’ budgets 22% 19% ■ 76% of total ad spending is concentrated 20% in 14-44 audience 17% 15% ■ 58% is a share of 14-44 audience in CTC 15% channel total viewership in Q1 2012, up 14% 15% 13% from 51% in Q1 2008 12% 12% 10% 10% 10% ■ We continue working on improving 10% 9% demographic profile of CTC’s audience to 7% 8% better match advertiser demand 9% 7% 7% 7% 8% 8% 7% 7% 5% 7% 7% 7% 7% 5% 5% 4% 2% 3% Advertisers' demand FY 2010 CTC audience demographic profile Q1 2012 CTC audience demographic profile Q1 2008 0% 0% 4-13 14-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-65 66+ Sources: TNS Gallup Media, Video International 15
  • 17. Domashny and Peretz Are Benefiting from Fragmentation of Russian TV Market Audience shares, all 6-54 demographic Channels’ target demographics, % 3.9 3.2 60% 2.6 2.0 50% Top 3 state-controlled channels FY 2011 Q1 2012 FY 2011 Q1 2012 40% 30% 1st tier channels 2nd tier channels 20% 10% 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 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, Muz TV, 2x2, TV Center, 7TV 16
  • 18. We Are Strengthening Our Market Positions in the CIS 31 Channel, Kazakhstan (all 6-54 demographics) 14.8 14.5 Significant growth in CIS Segment revenue and OIBDA margin Target audience 10.5 share, % 17.8 12.6 11.0 20.2% Q1 2010 Q1 2011 Q1 2012 4.3% US$ mln -20.2% CTC/TV DIXI, Moldova (urban 6-54 demographics) 5.5 Target audience 4.1 share, % FY 2009 FY 2010 FY 2011 2.8 Revenue OIBDA margin Q1 2010 Q1 2011 Q1 2012 17
  • 19. Plus We Continue to Expand Internationally… Increasing CTC Media’s international brand awareness & value through CTC-international December 2009 – Dish USA May 2011 – Time Warner; RMG 3.5 mln October 2011 – Cablevision Israel June 2011 – Hot; Yes 1.5 mln Russian-speaking population Germany March 2011 – Kartina TV IPTV 6 mln Baltic October 2011 – Viasat Broadcasting 4 mln States Kazakhstan February 2012 – Digital TV; Icon TV 12.3 mln Europe North Africa February 2012 – uplink service HOT BIRDTM 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 Total Russian-speaking population 40.2 mln 18
  • 20. …and Enter New Platforms to Be Wherever Our Viewers Are Videomore Domashny portal Channels’ websites Web + Partnership with social networks Smart TV & IPTV Mobile platforms 19
  • 21. …on the Way to Become a Leading New Media Player among Russian TV Companies  # 2 legal video portal in Russia by audience  In TOP-10 Russian most visited women portals up  7 mln unique monthly visitors* 180%  1.5 mln unique monthly visitors* y-o-y  More than 11,000 units of content  Highest affinity in female 25-44 audience 150% vs (among TOP-10 women portals) 107%  Registered users spend 40 min on VideoMore daily  Unique niche focused on traditional family values  Combination of video content streaming &  Competitive advantage due to video content social network functionality library and production capabilities Plus over a million unique monthly visitors on our other New Media platforms Note: (*) Videomore average monthly unique visitors in Q1 2012; Domashniy portal average monthly unique visitors in March 2012 20
  • 22. High Levels of Cash Conversion and Return on Capital Employed % of OIBDA Converted to Operating Cash Flow Return on Capital Employed* US$ mln 200 Cash investments in 50% 46% 186 186 content up y-o-y 43% 180 ($108 mln) 45% 158 40% 160 36% 133 35% 33% 2006-2011 140 average 117 116 30% 27% 120 27% 27% ROCE: 33% 100 25% 84% 80 72% 20% 67% 66% 63% 60 15% 47% 40 10% 20 5% 0 0% 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Operating Cash Flow % of OIBDA converted Note: (*) ROCE excludes one-off non-cash asset impairment charges recognized in 2008, 2009 and 2011 (see page 11 for details). 21
  • 23. Q1 2011 Financial Highlights 9pp +19% above in Rub +38% +4.7pp market REVENUES OIBDA OIBDA MARGIN $191.1 mln $55.1 mln 28.8% CASH INVESTMENTS EPS NET CASH POSITION IN CONTENT $0.21 $111.0 mln $85.2 mln +10% +50% EXPECTED DIVIDEND DIVIDEND PAID IN Q1 PAYOUT IN 2012 $0.13 per share 52% of 2011 net income Investing in quality content and returning excess cash to shareholders 22
  • 24. To Conclude… The largest independent and the only publicly listed broadcaster in Russia Growth company offering unique play on growing Russian & CIS TV advertising markets Targeting audiences which are most attractive to advertisers Controlling the whole value chain by vertically integrating content production, distribution and advertising sales High margins by industry standards & strong cash flow generation Commitment to returning surplus cash to shareholders 23
  • 25. MTG Capital Markets Day June 14, 2012 Boris Podolsky Acting Chief Executive Officer Chief Financial Officer
  • 26. Appendix Voroniny – sitcom, CTC Network (Everybody loves Raymond format) Doctor Zaytseva’s Diary – sitcom, CTC Network (Doctor’s Diary format) 25
  • 27. Reconciliation of Non-GAAP Measures Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other corresponding GAAP financial measures Income before income tax Fully Total and diluted operating Operating noncontrolling Income tax Net earnings (US$ 000’s except per share data) OIBDA expenses income interest expense income per share Three Months Ended December 31, 2011 Adjusted non-US GAAP results $ 92,757 $ (148,725) $ 88,033 $ 93,830 $ (28,604) $ 61,434 $ 0.39 Impact of impairment loss (89,539) (89,539) (89,539) (89,539) 3,570 (85,969) (0.55) Results as reported (under US GAAP, except for OIBDA which is a non-GAAP financial measure) $ 3,218 $ (238,264) $ (1,506) $ 4,291 $ (25,034) $ (24,535) $ (0.16) Income before Fully Total income tax and diluted operating Operating noncontrolling Income tax Net earnings (US$ 000’s except per share data) OIBDA expenses income interest expense income per share 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 26
  • 28. Reconciliation of Non-GAAP Measures (continued) Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other corresponding GAAP financial measures Total EPS Operating Operating Net Income Income Tax (fully (US$ 000’s except per share data) OIBDA Expenses income Before Tax Expense Net Income diluted) Year ended December 31, 2008 Adjusted non-US GAAP results $ 280,241 $ (373,307) $ 266,864 $ 237,077 $ (50,205) $ 176,133 $ 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 $ (605,990) $ 34,181 $ 4,394 $ (19,874) $ 22,454 $ 0.14 Income Net income Fully Total before Income Non- attributable to diluted operating Operating income tax tax controlling CTC Media, Inc. earnings (US$ 000’s except per share data) OIBDA expenses income and non- expense interest stockholders per share Year ended December 31, 2009 Adjusted non-US GAAP results $ 211,256 $ (306,311) $ 199,802 $ 195,972 $ (49,374) $ (2,630) $ 143,968 $ 0.91 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) $ (2,630) $ 100,389 $ 0.64 27
  • 29. Reconciliation of Non-GAAP Measures (continued) Reconciliation of consolidated OIBDA to consolidated operating income USD mln Q1 2012 Q1 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating income 49,971 35,928 122,685 207,118 152,475 34,181 193,061 154,313 90,187 62,559 Add: depreciation and 5,157 3,936 17,649 13,736 11,454 13,379 27,361 19,651 13,920 7,962 amortization OIBDA 55,128 39,864 140,334 220,854 163,929 47,560 220,422 173,964 104,107 70,521 Reconciliation of consolidated OIBDA margin to consolidated operating income margin USD mln Q1 2012 Q1 2011 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004 Operating margin 26.1% 21.7% 16.0% 34.4% 30.1% 5.3% 40.9% 41.6% 38.0% 40.2% Add: depreciation and amortization as 2.7% 2.4% 2.3% 2.3% 2.3% 2.1% 5.8% 5.3% 5.8% 5.1% percentage of revenue OIBDA margin 28.8% 24.1% 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 28
  • 30. Contact Information and Disclaimer For further information please visit www.ctcmedia.ru or contact: Ekaterina Ostrova Irina Klimova Director, Investor Relations Investor Relations Manager E-mail: ir@ctcmedia.ru Tel: +7 (495) 783 3650 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 Russian advertising market growth; statements regarding share trends in changing audience in 2012; statement regarding Russian Internet consumption growth; developments in the volume and pricing of television advertising in the Company’s target markets; the Company’s anticipated advertising sellout; the Company’s anticipated operating expenses and capital expenditures and others. 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 continued successful operation of the Company’s own internal sales house structure; depreciation of the value of the Russian ruble compared to the US dollar; 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 February 28, 2012 and our recently report on Form 10-Q filed with the SEC on May 3, 2012. 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. 29