1 Russian media market overview 1 HY 2012

1 Russian media market overview 1 HY 2012

Excluding VAT Media market segments dynamics Optimistic forecast* 400 350 82 300 61 Bn. RUR 250 16 200 12 30 100 50 0 2 42 37 150 7 15 2 13 11 20 4 24 15 24 5 32 19 29 6 42 2001 2002 2003 2004 24 33 7 56 2005 38 11 73 2006 64 44 13 13 96 2007** 42 118 2008 27 18 25 36 9 30 38 10 96 111 2009 2010 34 40 12 42 38 42 14 43 16 162 131 142 2011 2012 f* 2013 f*** Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation ** Since 2007 non-terrestrial TV was included in TV and context advertising was included into Internet advertising besides display *** Volumes for 2013 were calculated on a base of forecasted median interval for 2012 Others Internet Outdoor Print Radio TV

Excluding VAT Media market segments share dynamics Optimistic forecast* 100% 90% 6% 19% 19% 19% 80% 70% 60% 50% 40% 9% 18% 16% 13% 12% 14% 16% 13% 20% 23% 12% 27% 24% 22% 25% 19% 17% 33% 31% 30% 15% 40% 14% 12% 5% 5% 4% 5% 5% 6% 7% 6% 5% 6% 6% 6% 7% 30% 20% 6% 33% 52% 51% 50% 47% 46% 43% 46% 47% 46% 40% 42% 10% 0% 3 2001 2002 2003 2004 2005 2006 2007** 2008 2009 2010 2011 2012 f* 2013 f*** Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation ** Since 2007 non-terrestrial TV was included in TV and context advertising was included into Internet advertising besides display *** Volumes for 2013 were calculated on a base of forecasted median interval for 2012 Others Internet Outdoor Print Radio TV

Share of electronic & non-electronic media in advertising budget Share of electronic media is growing and extrudes non-electronic media. 80% 70% 60% 50% 40% 30% 20% 10% 0% 4 Electronic media non-Electronic media 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 f* 2013 f* Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation Electronic media: TV, Radio, Internet, Indoor, Cinema; Non-electronic media: Print, Outdoor

Changes of advertising incomes by media (1 HY 2012 vs. 1 HY 2011) Advertising incomes of Internet grew much more than the total market. 45% 36% 21% 8% TV 5 Radio 3% 10% Print Outdoor Source: AKAR * Volumes for Indoor+Cinema in 2011 can be recalculated 14% Internet Indoor+Cinema* Total

Source: TNS Russia Research: M’Index (1 HY 2012) Geography: Russia 100 K+ TA: P 16+ Media penetration TV has the highest penetration – 94%. Internet penetration reached 62%. 100% 90% 80% 70% 60% 50% 94% 40% 76% 73% 30% 72% 62% 20% 33% 10% 0% TV 6 Newspapers Radio Magazines Internet Cinema

Media Usage 2012 vs. 2011 Forecast MEDIA USAGE TREND COMMENTS (time spent or frequency) Internet +15. . +25% Usage growth is slowing down as penetration is already great and can’t grow fast further. Thematic TV +25. . +40% Technical penetration of non-terrestrial TV keeps growing and as a consequence its usage shows high growth rate. 0. . +5% Against the background of the relatively stable situation in the country there is no reason to expect a decrease in out of home activity. Terrestrial TV -5. . +5% Further increase of non-terrestrial TV and on-line video viewing can cause a slight fall of terrestrial TV. However, TNS Russia reports the growth of national channels technical penetration and the increase in a number of TV sets in a household, which can lead to a slight growth of terrestrial TV viewing. Cinema -5. . +5% Cinema visiting recovered in 2010 -2011 and in 2012 a slight grow or reduction are possible. Print -10%. . -2% Further pressure from growing Internet usage could lead further fall of «off-line» reading. Radio -10%. . -2% Further pressure from growing on-line listening could lead fall of «off-line» listening. OOH However, it’s forecast for P 16+, and different target audiences will show different changes

Excluding VAT Media cost per thousand CPTs for six media are still below European average. Cost per Thousand comparison (USD)*, Adults Media (national) Format Russia UK Germany Italy Czech Rep Poland Ukraine TV 30” 4. 4 7. 2 n/a 15. 9 19. 6 1. 3 1. 6 Magazines 1/1 5. 0 22. 0 16. 4 43. 7 37. 9 14. 5 11. 0 Newspapers 1/1 9. 0 18. 2 17. 9 135. 5 41. 6 19. 1 9. 0 Radio 30” 1. 4 3. 0 2. 1 3. 9 4. 1 1. 2 3. 8 OOH, billboards 6 x 3 0. 7 n/a n/a n/a 1. 7 Banners 5. 7 2. 8 17. 1 11. 7 10. 1 3. 2 0. 6 Internet *2011 CPT for Magazines and Radio were recalculated taking into account new deflators. 2011 CPT for OOH was recalculated for cities with population 100 K+ (previously OOH CPT was calculated for top-50 cities). 8 Source: Western Europe Market & Media. Fact 2011 Edition and Central & Eastern Europe Market & Media. Fact 2011 Edition, SMG Ukraine estimation (2011, P 04+); MEDIALOGICS est. (for Russia): TV, Radio, OOH - 2011; Print – Dec’ 10 -Oct’ 11, Internet - by SMG spends - 2011; Geography (Russia): Cities 100+; TA (Russia): P 18+

Source: TNS Russia Research: TNS Media Intelligence (2011), Viva. Ki Russia estimation Geography: Russia Advertising market seasonality (by estimated budgets) Peaks in March-April and September-December, except OOH investments, which are distributed evenly. 4 Index, Base=January 3 2 1 Total Market TV OOH PRESS RADIO 0 Jan 9 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

TOP 20 advertisers by estimated budgets* (TV + Print + OOH + Radio) Excluding VAT * Estimated Total Market differs from published market volumes because of limited monitoring scope. 10

11 Russian TV 1 HY 2012 Basics Market in details

Source: TNS Russia, Zenith. Optimedia Research: M’Index, TV Index, R-Index (1 HY 2012), Zenith. Optimedia (2010) Time: 05: 00 – 29: 00 TA: P 18+ Role of TV in Russians life TV is the most common time spending activity with 4. 3 hours a day. TV viewing level is ~30% above Western European average, but lower than Americans spend on TV. Ave. daily spends in minutes, Adults 258 TV 169 Radio Average TV watching minutes by country USA 319 Italy 250 Spain 245 UK 242 France 54 Internet 16 Print Music 10 222 Denmark 215 Portugal 213 Belgium 206 Ireland 203 Netherlands 191 Finland Books Video 9 6 Norway 184 178 Sweden 176 Austria Switzerland Western Europe Average Russia 12 Radio & Video don’t include listening and viewing through Internet, respectively. 162 155 203 258

Key TV viewing peculiarities daily dynamics is “ 8 hours work day” model: peak in Winter, fall in Summer: 13 weekends daily viewing is higher: females and elders are the heaviest viewers

Source: TNS Russia, Research: TV Est. survey (Feb-Oct 2011) Geography: Russia 100 K+ TA: P 04+ National channels’ technical penetration 18 national channels have technical penetration more than 70%, 14 – more than 80%, 6 – more than 90%. PERVY KANAL 99% ROSSIYA 1 98% NTV 98% CTC 95% TNT 94% ROSSIYA K 92% REN-TV 89% PYATY KANAL 87% TV TSENTR 87% ROSSIYA 2 87% DOMASHNY 85% MUZ TV 83% TV-3 82% PERETZ (DTV) 80% ROSSIYA 24 79% MTV 78% ZVEZDA 75% SEMYORKA/DISNEY* EURONEWS 14 2 X 2 73% 60% 57% * Since 2012 Semyorka doesn’t exist. The new TV channel Disney broadcasts on its frequency.

Source: TNS Russia, Zenith. Optimedia Research: TV Est. survey (Feb-Oct 2011) Market & Media Fact book (2010) Russians do have a broad choice There are now 20 national channels and hundreds of locals in Russia. Number of large channels is above Europe average. National channels available: Despite of its size Russia has more big channels than European countries on average RUSSIA Europe Average PORTUGAL UK SPAIN NORWAY 18 of these channels covering > 70% of adults each NETHERLANDS 0 15 * Since 2012 Semyorka doesn’t exist. The new TV channel Disney broadcasts on its frequency. 5 10 15 Number of channels with penetration > 70% 20

Source: TNS Russia Research: TV Index (1 HY 2008 -2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ Thematic TV is growing 87% of TV viewing belongs to national channels, but its share is reducing in favor of niche TV. 6. 7% 4. 8% 7. 2% 4. 2% 88. 8% 88. 5% 88. 0% 88. 7% 86. 7% 1 HY 2008 % of TV viewing 5. 6% 1 HY 2009 1 HY 2010 1 HY 2011 1 HY 2012 THEMATIC TV 16 LOCAL TV NATIONAL TV 9. 1%

Source: TNS Russia Research: TV Index Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ TV audience migration by channels Total TV viewing grew by 6. 9% in 1 HY 2012 vs. the SPYA. Such significant increase is explained by the growth of reported TV channels technical penetration and increasing of TV sets number in a household. However, federal channels have technical penetration at the level of 99%, and further growth for them is impossible. As a result , TV fragmentation leads to a little growth of total TV viewing. Change of channels viewing in 1 HY 2012 vs. 1 HY 2011, TVR P 18+ 36. 9% 40% 30% 20. 4% 20% 14. 3% 8. 7% 6. 9% 0% -10% 17 -4. 8% Total TV viewing Federal Main network Specialized Thematic network Local

TV Channels Ranking Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ 43% of audience 18+ is occupied by Top-3 channels, but their share is decreasing. Due to the successful rebranding and a new programming Pyaty kanal was the growth leader in 1 HY 2012. The share of the new TV channel Disney for P 18+ was lower that the share of the previous channel Semyorka. Channels share 1 HY 2012 0% 5% 10% 15% 20% +/- share 1 HY 2012 vs. 1 HY 2011, % -55% -35% -15% 5% 25% 45% NTV PERVY KANAL ROSSIYA 1 TNT STS REN TV PYATY KANAL DOMASHNY TV TSENTR 43% of audience DOMASHNY TV TSENTR TV-3 ROSSIYA 2 PERETZ ZVEZDA ROSSIYA K DISNEY/SEMYORKA* ROSSIYA 24 MUZ TV ROSSIYA K DISNEY/ SEMYORKA* ROSSIYA 24 MUZ TV MTV 2 X 2 EURONEWS 18 65% EURONEWS THEMATIC LOCAL * Since 2012 Semyorka doesn’t exist. The new TV channel Disney broadcasts on its frequency. LOCAL 85%

TV Channels Gender Segmentation Source: TNS Russia, Research: TV Index (1 HY 2012) Geography: Russia 100 K+ TA: P 04+ The biggest federal channels are Elder-Female oriented. There are possibilities to reach Youth and Men, but they are limited. Elder-Men Elder-Women Young-Men 19 Size of bubbles ~ channel daily reach size, Axes-cross correspond to total population’s % of females and avg. age Audience avg. age % of women in audience Young-Women

Source: TNS Russia Research: TV Index (1 HY 2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ Rank of the most watched genres On average, the viewer’s menu is 50% movies and series, but its share is decreasing in favor of entertainment programs, which share was ~20%. % of total TV viewing TV series 27. 8% Entertainment programs 21. 2% Feature films 18. 0% News 11. 2% Social-political programs 5. 5% Documentary films 4. 8% Educational program 3. 4% Animation (cartoons) 2. 9% Sports programs 2. 8% Musical programs 2. 0% Children program Plays, literary declamation 0. 1% Other programs 20 0. 3% 0. 2%

Source: TNS Russia Research: TV Index (1 HY 2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ Commercial channels 19 of 20 national channels with 98% of total national TV viewing sell their air-time. It means that almost all national TV viewing could be used for commercial campaigns. Allow to place ads: 98% of viewing 21 Ad is Forbidden: 2% of viewing

Source: TNS Russia, Viva. Ki Experts Research: TV Index (1 HY 2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ Ad viewed volume and structure Average viewer is exposed to 19. 4 minutes of national ad a day. Medicines and different FMCG are the most advertised categories % of category within viewed ad (1 HY 2012, national) Medicines & Food Supplements 14% Beauty & Healthcare Goods 14% Food 10% Non-Alcoholic Drinks 8% Cars & Accessories 7% Confectionery 6% Household Chemicals 6% Telecommunications Retail Perfumery Others 22 5% Ave. viewed ad time: 19. 4 min a day 4% 3% 23%

Structure of National TV Sales Houses Source: TNS Russia Research: TV Index (1 HY 2011; 1 HY 2012) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ (30”GRPs 18+) In spite of 2011 restrictions, the real share of VI (including consulted channels) didn’t change significantly. Share in 1 HY 2012, % Other, 2. 5% Share 1 HY 2012 vs. 1 HY 2011, % VI selling VI -3. 1% R. . . -14. 6% 6. 1% 32. 3% E. . . 35. 2% VI. . . -4. 9% 10. 4% 12. 8% RTR-Media, 17. 3% 14. 9% -20% 0% VI consulting * Since 2011 the holdings VGTRK and CTC-Media are served by own sales houses, RTR-Media and Evere. CT-C respectively. However, VI will continue cooperation with these holdings as a consultant. 20% GM Ot. . .

Media Holdings Structure Rossiya 1 Rossiya 24 100% Government Pervy kanal 51% Government, 49% NMG (National Media Group) NTV TNT 100% Gazprombank Ren-TV TRK-5 100% NMG (National Media Group) CTC Domashny PERETZ DISNEY MUZ TV 38. 2% MTG, 25. 1% NMG, 36. 7% -public (NASDAQ) TV-3 MTV 2 x 2 100% Profmedia BS 100% UTV TV Center 100% Moscow Government Zvezda 100% Ministry of Defense

Source: TNS Russia Research: TV Index (2003 -2011) Geography: Russia 100 K+ TA: P 18+ Total national 30’’GRP 18+ dynamics Due to the fall of the total TV viewing TV inventory decreased slightly in 2011 vs. 2010. National 30" GRPs 18+ delivered -3% 1, 733, 321 1, 497, 309 1, 595, 936 1, 673, 991 -7% 1, 549, 181 -18% +1% 1, 273, 224 1, 290, 586 2003 25 2004 2005 2006 2007 2008 2009 +8% -2% 1, 395, 138 1, 370, 052 2010 2011

Source: TNS Russia Research: TV Index (1 HY 2004 -2012) Geography: Russia 100 K+ TA: P 18+ Total national 30’’GRP 18+ dynamics In 1 HY 2012 the number of national commercial 30”GRPs P 18+ corresponded to the level achieved a year ago. National 30" GRPs 18+ delivered 868, 080 899, 658 -13% -17% 781, 718 779, 984 +10% -3% 648, 662 1 HY 2004 26 1 HY 2005 1 HY 2006 1 HY 2007 628, 203 1 HY 2008 1 HY 2009 +3% 688, 573 707, 660 707, 945 1 HY 2010 1 HY 2011 1 HY 2012

Source: TNS Russia Research: TV Index (Jan’ 11 -Jun’ 12) Geography: Russia 100 K+ Time: 05: 00 – 29: 00 TA: P 18+ Channels share. Monthly dynamics Top-3 national channels are loosing its share. Pyaty caught up with CTC and Ren-TV. 20% 18% 16% ROSSIYA 1 NTV 12% 10% 8% TNT 6% CTC 4% 2% REN TV PYATY KANAL 2011 27 n Ju ay M pr A ar M b Fe n Ja ec D ov N ct O Se p ug A l Ju n Ju ay M pr A ar M b Fe n 0% Ja 18+ Share 14% PERVY KANAL 2012

TOP 20 Advertisers (30" GRPs 18+) Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ TA: P 18+ Since 2012 UNILEVER includes KALINA (CONCERN) and PEPSI CO includes WIMM-BILL-DANN. Due to these consolidations UNILEVER changed the 4 th line in 1 HY 2011 to the first in 1 HY 2012 and PEPSI CO changed the 14 th line to 3 rd. P&G significantly decreased its commercial 30”GRPs and lost the first position in the top.

Source: TNS Russia Research: TV Index (2003 -2011) Geography: Russia 100 K+ TA: P 18+ Copies duration distribution 4% 3% 31% 3% 32% 3% 36% 5% 38% 41% 6% 26% 13% 4% 41% 5% 26% 13% 30 9% 8% 8% 6% 25 29% 29% 17% 17% 7% 8% 8% 9% 2004 2005 2006 2007 2008 2009 2010 2011 16% 29 25% 15% 7% 2003 23% 13% 20 6% 6% 6% 41% 4% 27% 7% 39% 3% 35+ 8% % of total 30”GRPs 18+ 8% The tendency of share reduction of 30’’ and 35+’’ continued in 2011. 15 10 5

Ratio of National and Local TV markets Source: AKAR experts, Viva. Ki estimation Share of local TV market reduced slightly in 1 HY 2012 compared to 2011. national TV market regional TV market 30 23% 24% 26% 28% 30% 28% 77% 76% 74% 72% 70% 72% 2002 Value* ratio 23% 2003 2004 2005 2006 2007 2008 * in rubles 23% 22% 21% 77% 78% 79% 2009 2010 2011 1 HY 2012

Source: TNS Russia Research: TV Index (2006 -1 HY 2012) Geography: TOP cities TA: P 18+ Ratio of National and Local TV markets In 1 HY 2012 share of national TV market decreased in favor of local. National Local at national channels Local at local channels 6. 0% 6. 3% 6. 1% 4. 6% 4. 3% 13. 8% 16. 2% 17. 0% 16. 8% 17. 4% 19. 3% 81. 3% 80. 1% 77. 9% 76. 7% 77. 2% 78. 1% 76. 4% 2006 31 6. 2% 12. 3% 30''GRPs 18+ volume ratio 6. 4% 2007 2008 2009 2010 2011 1 HY 2012

Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: TOP Cities TA: P 18+ Time band: 05 -29 Events: local spots, sponsor spots Regional Sales Houses’ Share (by 30’’GRPs 18+) In spite of the fact that VI share was restricted from 71% to 35% in money terms since 2011, the local TV market is still controlled by 2 main suppliers: VI Trend, which continues cooperation with CTC-Media and VGTRK as a consultant, and Alkasar. 1 HY 2012 26% VI Trend RTR-Media Evere. CT-C Others RTR-Media 13% -9% 12% Evere. CT-C 63% 23% 15% VI Trend 24% VI Trend Total* Alkasar 1 HY 2012 vs. 1 HY 2011, % 4% VI Trend Total* Alkasar Others -9% -2% * Since 2011 the holdings VGTRK and CTC-Media are served by own sales houses, RTR-Media and Evere. ST-S respectively. However, VI will continue cooperation with these holdings as a consultant.

National vs. Regional Sales Houses’ Share (by 30’’GRPs 18+) Source: TNS Russia Research: TV Index (1 HY 2012) Geography: Russia 100 K+, TOP Cities TA: P 18+ Time band: 05 -29 Events: spots, sponsor spots Regional TV market is not as duopolistic as national one, where 2 SHs control almost 100% of total volumes. In regions there are more possibilities to buy inventory than at a national market level. 65% 63% National Inventory Regional Inventory 35% 32% 26% 24% 17% 23% 13% 13% 3% VI (Trend) RTR-Media Evere. CT-C VI (Trend) Total* GM (Alkasar) 33 * Since 2011 the holdings VGTRK and CTC-Media are served by own sales houses, RTR-Media and Evere. ST-S respectively. However, VI will continue cooperation with these holdings as a consultant. Others

TOP 20 regional Categories (30” GRPs 18+) Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: TOP Cities TA: P 18+ Retail is the most advertised category on the local TV market and its volumes grew significantly in 1 HY 2012.

TOP 20 regional Advertisers (30” GRPs 18+) Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: TOP Cities TA: P 18+ Many new participants in the top-20. NESTLE and L'OREAL significantly decreased their local volumes and changed the first and third lines in 2011 to 4 th and 8 th in 2012, respectively. On the contrary, FERRERO significantly increased its number of local 30” GRPs 18+ and was number one in the top.

TOP 20 non-terrestrial TV Categories (GRPs 30” 18+) Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ TA: P 18+ All categories from top-20 increased their non-terrestrial volumes on measured thematic channels.

TOP 20 non-terrestrial TV Advertisers (GRPs 30” 18+) Source: TNS Russia Research: TV Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ TA: P 18+ Almost all advertisers from top-20 increased their non-terrestrial volumes on measured thematic channels, except L’Oreal and Beeline. Many new participants in the top-20.

38 Russian media market overview Non-TV 1 HY 2012

Key Non-TV Market Trends • Internet: – The growth rate of Internet penetration is slowing down in Moscow & SPb, while for cities with population 1 mln- the rate it is still high. The difference between Moscow and other cities is also reducing. – Broadband keeps growing. – Mobile Internet continued growing at high rates. – Usage of News, events, sport and weather services is falling, while Social Networks are growing. People spend more and more time in Social Networks. • OOH: – The number of surfaces in Moscow is decreasing slightly. In other regions the situation has been stable since 2009. – OOH market situation has become very tough in terms of inventory availability, with sold out level returning & topping pre-crisis level. • Indoor: – The number of advertising minutes on Video International screens continues to decrease. • Print: – Newspapers & Magazines penetration stopped falling.

40 Internet

Internet Market Growth Rate Excluding VAT Internet spends grew much faster than the total media. In 2011 it increased by 55%, while the total market increased only by 21%. Ruble inflation forecast* for 2012 and 2013 is +15%…+30% per each year. 45% 30% RUR 41. 8 bill. € 1 bill. $1. 4 bill. 80 45% 25% 61 60 15. 9% 50 39% 40 20 67% 70% 71% 0. 5% 2001 2002 0. 7% 0. 9% 0 2003 2004 1. 3% 1. 7% 1. 6 0. 2% 2. 7 5. 7% 2005 2006 11. 7 55% 20% 71 18% 52 9. 4% 10% 6. 3% 41. 8 16. 1 17. 5 2008 2009 20% 15% 54% 338% 30 12. 4% 9% 25% 23% 22% 70 10 5% 27. 0 0% 2007 2010 2011 Actual Optimistic forecast* Pessimistic forecast* Share Actual 41 25% 82 Internet 2011: 90 Share of Internet in total media market Internet market volume - RUR, billions 100 Share Optimistic* Share Pessimistic* Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation **Since 2008 context advertising was included into Internet advertising besides display advertising *** Volumes for 2013 were calculated on a base of forecasted median interval for 2012 f 2013 f***

Internet penetration by cities % of population Moscow 70 St. Petersburg 68 Cities 1 mln+ 57 Cities 500 thd - 1 mln 56 Cities 100 -500 ths 58 Cities less than 100 thd Villages 42 www. fom. ru Spring 2012 50 37

Source: TNS Russia Research: Est. Survey for Web. Index (Jan’ 06 -Jun’ 12) TA: P 12+ Internet Monthly Reach is growing The difference between Moscow and other cities is small. Monthly Reach, % of All 12+ 59 53 60 61 58 61 61 64 68 55 52 51 42 37 64 66 37 39 39 41 43 38 45 47 68 67 69 70 70 64 65 60 47 36 65 66 53 56 55 58 60 60 59 61 48 Russia, Cities 100+ Moscow St. -Petersburg Ekaterinburg Novosibirsk 2006 2007 2008 2009 2010 2011 2012 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 43

Source: TNS Russia Research: Est. survey for Web Index (Oct’ 10 -Jun’ 12) Geography: Russia 100 K+ TA: P 12+ Broadband is growing Broadband is the most popular type of Internet connection, the next is the connection through wireless modem. Dial-up has a small share which is decreasing. Connection type, monthly reach 40, 000 20, 000 Broadband Broadband 10, 000 15, 000 44 Jun 2012 May 2012 Apr 2012 Mar 2012 Feb 2012 Jan 2012 Dec 2011 Nov 2011 Oct 2011 Sep 2011 Aug 2011 Jul 2011 Jun 2011 May 2011 Apr 2011 Mar 2011 Feb 2011 Jan 2011 Dec 2010 Nov 2010 0 Oct 2010 ‘ 000 Internet users Dial-up Dial-up 35, 000 Dial-up. Wireless modem modem Dial-up Dial-up Dial-up. Wirelessmodem 30, 000 Dial-up Wireless modem Dial-up Wireless Wireless modem Wireless modem Wireless modem modem 25, 000 Wireless modem Wireless modem

Source: TNS Russia Research: Est. survey for Web Index (2 Q 2007 -1 HY 2012) Geography: Russia 100 K+ TA: P 12+ Mobile Internet is growing Currently 23% of Russian people 12+ use Mobile Internet (on-line surfing through their mobile phones). In Moscow it reached 28%. Mobile Internet monthly reach, % of All 12+ 28 26 23 21 15 13 11 9 9 10 10 14 14 13 11 14 12 14 13 15 14 16 15 15 16 15 17 16 18 17 19 18 23 20 21 22 23 19 Russia, Cities 100+ 11 Moscow St. -Petersburg Ekaterinburg 45 2012 Q 2 2012 Q 1 2011 Q 4 2011 Q 3 2011 Q 2 2011 Q 1 2010 Q 4 2010 Q 3 2010 Q 2 2010 Q 1 2009 Q 4 2009 Q 3 2009 Q 2 2009 Q 1 2008 Q 4 2008 Q 3 2008 Q 2 2008 Q 1 2007 Q 4 2007 Q 3 2007 Q 2 Novosibirsk

Source: TNS Russia Research: M’Index, TV Index, R’Index (1 HY 2012) Geography: Russia 100 K+ TA: P 18+ Internet usage vs. other media Internet time spending took the 3 rd place after TV and Radio. Right chart shows 100% Internet penetration. Ave. daily spends in minutes, Adults 258 TV 169 Radio 54 Internet Ave. daily spends in minutes, Internet users 217 TV 182 Radio 88 Internet Music 10 Music Newspapers 10 Newspapers 6 15 Books 9 Magazines 7 Magazines 5 Video 6 Video 7 46 Radio & Video don’t include listening and viewing through Internet, respectively.

Source: TNS Russia Research: M’Index (1 HY 2012) Geography: Russia 100 K+ TA: P 16+ Internet users profile Typical heavy internet users are people in 16 -44 years old, rich and highereducated. Internet heavy-user Affinity Men high inc. 200 Women 150 middle inc. 16 -24 100 low inc. 25 -34 50 0 Higher 35 -44 Secondary 45 -54 Primary 55 -64 65+ 47

Social networks become more popular Source: TNS Russia Research: M’Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ TA: P 16+, Internet users The most popular web-service is E-mail. Then News, events, sport, weather, which share is reducing and Social Networks which are growing much faster then Internet monthly reach. Top-10 services used last month +- % change 1 HY 2012 vs. 1 HY 2011 E-mail 65. 8 E-mail News, events, sport, weather 58. 0 News, events, sport, weather -15% Social networks 57. 1 Social networks Pre-purchase browsing 44. 3 Pre-purchase browsing Communication (forums, blogs and other) 40. 9 Communication (forums, blogs and other) Watching and downloading video 40. 6 Watching and downloading video Listening to music and downloading music 39. 0 Listening to music and downloading music Watching and posting photos 37. 5 Intellectual and educational information searching (using online 34. 8 encyclopedias and dictionaries, taking online courses, etc. ) bbies (visiting specialty websites, writing, reading, commenting 29. 7 blogs/ forums related to personal interests and hobbies) 48 Watching and posting photos Intellectual and educational information searching (using online encyclopedias and dictionaries, taking online courses, Hobbies (visiting specialty websites, writing, reading, etc. ) commenting blogs/ forums related to personal interests and hobbies) TOTAL Internet 9% 54% n/a% 25% 13% 6% n/a% 5%

Source: TNS Russia Research: Web Index (1 HY 2011, 1 HY 2012) Geography: Russia 100 K+ TA: P 12 -54 TOP Russian web-sites Yandex. ru and mail. ru are leaders. Then two social networks. Vkontakte. ru was ahead of odnoklassniki. ru by monthly reach, but growth rate of Odnoklassniki in the current year was higher then Vkontakte. +/- monthly reach, % 1 HY 2012 vs. 1 HY 2011 TOP 10 web-sites average monthly reach 1 HY 2012 Yandex. ru 73. 0% Yandex. ru Mail. ru 71. 7% Mail. ru Vkontakte. ru 65. 8% Odnoklassniki. ru 10% 12% Vkontakte. ru 18% Odnoklassniki. ru 52. 0% Live. Journal. com 34. 3% Live. Journal. com Rambler 33. 2% Rambler 24% Ru. Tube 31. 7% Ru. Tube Avito. ru 30. 4% 10% -3% Avito. ru Live. Internet. ru 23. 3% Live. Internet. ru Kinopoisk. ru 22. 2% 4% 56% Kinopoisk. ru Total Internet 49 76. 6% Total Internet 14% 22% 10%

TOP thematic online resources by time spending and daily audience Source: TNS Russia Research: Web Index (Jul’ 12) Geography: Russia 100 K+ TA: P 12 -54 The biggest Internet resources by daily audience are social networks, search and mail services. Social networks visitors spend there ~50 minutes a day. It’s five times more than on search and mail.

TOP-20 Internet projects Source: TNS Russia Research: Web Index (Jul’ 12) Geography: Russia 100 K+ TA: P 12 -54 The leaders by time spending from top-20 are social networks. VK’s visitors spend 44 minutes a day, odnoklassniki – 22 minutes. Yandex’s projects have the highest daily audience, but visitors spend there only 11 minutes a day.

TOP 20 Internet Categories & Advertisers Source: TNS Russia Peridod: 1 HY 2012 Media: Top web-sites Cars are the most advertised category on the top Russian web-sites. In 1 HY 2012 6 out of 20 advertisers belonged to the car category. 52

53 Outdoor

Outdoor growth rate Excluding VAT Outdoor increased by 16% in 2011, which is lower than the total market (+20%). Its share in the total market volume decreased a bit. Ruble inflation forecast* for 2012 is +8%. . . +12% and for 2013 is +5%…+15%. Outdoor 2011: RUR 34. 3 bn. € 0. 8 bn. $1. 2 bn. OOH market volume - RUR, billions 80 19% 19% 19% 11% 18% 70 16% 7% 60 13% 50 22% 40 29% 30 56% 30% 20 10 0 7 2001 11 26% 15 19 25% 37 14% 13% 42 18% -40% 30 30 25 24 13% 16% 13% 38 12% 20% 5% 15% 42 12% 10% 34 37 39 5% 0% 2002 2003 2004 Actual Share Actual 54 19% 25% Share of OOH in media market 90 2005 2006 2007 2008 Forecast Optimistic* Share Optimistic* Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation ** Volumes for 2013 were calculated on a base of forecasted median interval for 2012 2009 2010 2011 2012 f* Forecast Pessimistic* Share Pessimistic* 2013 f**

OOH Highlights 2012 • Sales / Inflation – No decline in sales so far. Inventory situation is rather tough through the year, especially in Spring and Autumn. – Beer ban in OOH will probably decrease sales since August. • Inventory – 2012 – the year of most contracts expiration (~60 -70%). But contracts will be prolonged till 2013. In 2013 all freed-up places to be sold in packages on the auction basis. – In September New Concept of OOH sites allocation in Moscow will be published. – Situation in regions looks similar. – Winners of 2011 transport tenders (Auto Sell in metro and Boulevardnoye Koltso in municipal transport) asked city authorities to diminish city payments because they are too high as compared to market volumes. No answer received yet but there are no official reasons for such reduction. 55

Auctions results: 4 possible scenarios and the next steps Minor replacements of dismantled faces Negotiations to minimize price increase Negotiations with new suppliers about new prices and making decision about new role of outdoor in media mix in this city Low Change of suppliers’ market shares III I Negotiations: with previous supplier about better replacement of lost faces or with new supplier about keeping the same place at lowest price Minor replacements of dismantled faces Keep on working with the same suppliers at the same prices 56 IV Low High II City payments increase High

OOH market development Source: TNS Russia Research: TNS Media Intelligence (2007 -Jun 2012 ) Geography: 50 Top Cities Due to the inspection of the OOH inventory by Moscow authorities, the number of surfaces are decreasing a bit in Moscow. In the other regions the situation has been stable since 2009. 57

Source: TNS Russia Research: TNS Media Intelligence (2009 -1 HY 2012) Geography: 50 TOP Cities OOH Inventory situation Low sold-out: Jan-Feb, Jul-Aug. Demand peaks: Apr-Jun, Sep-Nov. Market situation has become very tough in terms of inventory availability, with sold out level returning & topping pre-crisis level. 100% 95% % of surfaces sold 90% 85% 80% 75% 2009 2010 70% 2011 65% 2012 60% Jan 58 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: TNS Russia Research: TNS Media Intelligence (2009 -Jun 2012) Geography: 50 TOP Cities Sold-out is growing As in the pre-crisis period in 2012 the distance between Moscow and regions in terms of % of sold surfaces was small. 100% 2009 2010 2011 2012 95% % of surfaces sold 90% 85% 80% 75% 70% Moscow 65% Saint-Petersburg Other cities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 60% 59

Source: TNS Russia Research: TNS Media Intelligence (2010, 2011) Geography: 50 TOP Cities Top OOH Formats 3 x 6 Billboard is the most common format – 62% of total ad spends. 21% of OOH market in money terms belongs to big formats. In 2011 street furniture investments increased more than others – by 45% compared to 2010. +/- % of RC Cost change, 2011 vs. 2010 Format share (RC Cost, $), 2011 Street furniture; 11% Other, 7% 25% Billboard 13% Big format, 21% Billboard, 62% Other TOTAL 60 45% Street furniture 6% 23%

Source: TNS Russia Research: TNS Media Intelligence (2011) Geography: 50 TOP Cities Top OOH Formats share in regions (by RC Cost, $) In regions the main format is billboard 3 x 6 with share ~70% of total OOH ad spends. Moscow market is more fragmented – only 51% of the market belongs to billboards. Saint-Petersburg Moscow Street furniture, 11% Street furniture 16% Other, 12% Other 1% Big format 13% Billboard, 51% Billboard 70% Big format, 26% Other cities 1 M+ w/o Moscow & SPb Street Other furniture 3% 9% Big format 16% Big format 18% Billboard 70% 61 Street furniture Other 1% 7% Billboard 76%

TOP OOH Suppliers Source: TNS Russia Research: TNS Media Intelligence (2010, 2011 ) Geography: 50 TOP Cities The market is very fragmented: only 48% belongs to TOP 10 suppliers. News Outdoor is the outstanding leader with ~21% of the total market. The second network Gallery is almost 3 times less with ~8%. Top-2 networks increased its volumes in money terms less than the market in 2011 vs. 2010. +/- % of RC Cost change, 2011 vs Supplier share (RC Cost, $), 2011 21% GALLERY 7. 9% GALLERY 23% NEWS OUTDOOR 20. 9% NEWS OUTDOOR V. E. R. A. -OLIMP 3. 5% V. E. R. A. -OLIMP 29% ANKO 3. 1% ANKO 29% BIGBOARD GROUP 2. 8% BIGBOARD GROUP NIKE 2. 4% NIKE POSTER 2. 3% POSTER RASVERO 2. 0% RASVERO REKLAMA-SERVIS 1. 7% REKLAMA-SERVIS REKLAMA TSENTR 1. 4% REKLAMA TSENTR 52. 0% 28% 22% 29% 10% 20% 31% 62 OTHERS 23% TOTAL OTHERS 23%

TOP OOH Suppliers share in Regions (by RC Cost, $) Source: TNS Russia Research: TNS Media Intelligence (2011) Geography: 50 TOP Cities The market is very fragmented, especially in regions, except SPbs market where top-5 suppliers control 80% of the market. News Outdoor has strong positions in Moscow and SPb, in other cities News Outdoor is #1 too, but has more humble share. Moscow NEWS OUTDOOR GALLERY 26. 2% Saint-Petersburg NEWS OUTDOOR 10. 4% 32. 3% POSTER 17. 5% 1 M+ w/o Moscow & SPb NEWS OUTDOOR 13. 8% All cities w/o Moscow NEWS OUTDOOR 15. 7% Other cities NEWS OUTDOOR 8. 6% 7. 2% GALLERY 6. 6% GALLERY 5. 4% GALLERY 5. 7% POSTER 4. 6% DRIM 2. 3% V. E. R. A. -OLIMP 7. 1% REKLAMA TSENTR 11. 9% DIZAYN-MASTER ANKO 6. 2% RUAN 10. 7% RIM-S 3. 2% REKLAMA TSENTR 2. 7% BIGBOARD GROUP 2. 0% ART-BIZNES-LAYN 2. 9% DIZAYN-MASTER 2. 6% NIKE 1. 7% RASVERO 4. 1% TALER 7. 1% NIKE 4. 1% B. V. MEDIA 5. 8% BIGBOARD GROUP 2. 5% RUAN 2. 4% DIZAYN-MASTER 1. 5% BIGBOARD GROUP 3. 9% VOLGO-BALT MEDIA 5. 2% ARMADA OUTDOOR 2. 2% BIGBOARD GROUP 1. 7% REKTOL 1. 5% REKLAMA-SERVIS 3. 1% CLEAR CHANNEL TERMINATOR 2. 1% TALER 1. 6% ART-SAYD 1. 5% 3. 0% LAYSA 1. 4% KANON-P 0. 2% ELIS 1. 8% B. V. MEDIA 1. 3% RBS 1. 3% TERRAPROEKT 1. 4% TOCHKA OPORY 0. 1% KHET-TRIK 1. 6% VOLGO-BALT MEDIA 1. 2% PARITET 1. 2% OTHERS 63 32. 2% OTHERS 6. 2% OTHERS 57. 7% OTHERS 60. 8% OTHERS 71. 3%

Source: TNS Russia Research: TNS Media Intelligence (2011) Geography: 50 TOP Cities Top OOH Suppliers by Format News Outdoor on the 1 st position in money terms for all formats. % of format types for top-3 suppliers (by RC Cost, $) Billboards Other – 65% Big format Other – 67% Street furniture Other – 48% 34% 22% 8% 15% 9% 9% 64 GALLERY NEWS OUTDOOR CLEAR CHANNEL GALLERY NEWS OUTDOOR ANKO V. E. R. A. OLIMP NEWS OUTDOOR GALLERY 9%

Source: TNS Russia Research: TNS Media Intelligence (1 HY 2012) Geography: 50 TOP Cities Sold-Out by Format Billboards’ sold-out level was above the market average with up to 86% occupied. Sold surfaces by formats, 1 HY 2012 Billboard 86% Big format 81% 74% Street furniture Other 54% TOTAL 82% Sold 65 Unsold

TOP 20 OOH Categories Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: 50 TOP Cities Retail is the outstanding leader with a share of 25%. Cars and Real Estate Services grew more than others in the top. Telecommunications, FMCG and Mass Media dropped more than others in the top. 66 Excluding VAT

TOP 20 OOH Advertisers Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: 50 TOP Cities Advertisers within one category showed different behavior in the 1 HY 2012 compared with the SPYA. Many new participant in the top-20. 67 Excluding VAT

68 Indoor (Video International screens) Moscow 1 HY 2012

Source: TNS Russia Research: TNS Media Intelligence (2010 -Jun 2012) Geography: Moscow Video International Indoor inventory has a negative trend Number of advertising sold minutes in 1 HY 2012 was 46% lower than in the SPYA. Thousands Volume of VI commercial Indoor inventory, Moscow, minutes 30, 000 2011 2012 25, 000 20, 000 15, 000 10, 000 5, 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 0 69

Video International Indoor budgets in Moscow shopping centers and airports $RC cost, 1 HY 2012 # of points in the monitoring 3, 866, 056 Airports and station of AMS 2, 545, 699 Perekrestok 1, 873, 371 Sedmoy Continent Source: TNS Russia Research: TNS Media Intelligence (1 HY 2012) Geography: Moscow 6 93 99 Auchan City / Kapitoliy 548, 503 7 Karusel 523, 981 7 Europark 45, 097 1 Okhotny Ryad 41, 859 1 Waypark 34, 177 1 Citistore 26, 372 8 70 Excluding VAT

TOP 20 Video International Indoor Categories Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow FMCG increased their shares, especially Alcoholic Drinks, which became number one in the top in 1 HY 2012. 71 Excluding VAT

TOP 20 Video International Indoor Advertisers Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow Many new participants in the top-20. PEPSI CO was outstanding leader in the top with a share of 12% out of all Video International Indoor inventory. 72 Excluding VAT

73 Print

Print share is decreasing Excluding VAT Print increased by 7% in 2011, which is smaller than the total market (+20%). Its share in the total market volume decreased. Ruble inflation forecast* for 2012 and 2013 is +0%. . . +5% per each year. Print 2011: 90 50% RUR 40. 4 bn. € 1 bn. $1. 4 bn. 40% 45% 80 33% 70 4% 31% 27% 60 24%16% 64 30 33% 20 10 15 21% 20 20% 24 29 14% 33 13% -44% 22% 19% 44 38 6% 17% 38 36 7% 2% 42 43 30% 25% 41 42 20% 14% 40 13% 15% 12% 10% 5% 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Actual Optimistic forecast* Pessimistic forecast* Share Actual 74 40% 35% 1% 25% 50 40 5% 45% 30% Share of Print in media market Print market volume - RUR, billions 100 Share Optimistic* Share Pessimistic* Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation ** Volumes for 2013 were calculated on a base of forecasted median interval for 2012 f* 2013 f**

Newspapers & Magazines Penetration has a negative trend Source: TNS Russia Research: M’Index (2005 -1 HY 2012) Geography: Russia 100 K+ TA: P 16+ …while Internet penetration is growing. 100 90 % of All 16+ 80 70 60 50 40 30 20 10 0 2005 2006 2007 Newspapers 75 2008 2009 Magazines 2010 Internet 2011 1 HY 2012

Source: TNS Russia Research: NRS (May-Oct’ 11) Geography: Russia 100 K+ TA: P 16+ Print genres coverage Newspapers lead n terms of coverage with 72%. The next are TV-Guides and Entertaining with 62% and 59%, respectively. Half-Year audience, % P 16+ Newspapers 72 TV -Guides 62 59 Entertaining Women's 55 General interest 52 Ad editions 47 Auto/Moto 40 Tourism 30 Health 28 Interior & Design 28 Cooking 25 Business & analitical 25 Sport 19 Men's 18 Family & children 13 Computer 13 Gardening 11 Youth's Tech/Mobile 76 10 7

Source: TNS Russia Research: NRS (Dec’ 11 -Apr’ 12) Geography: Russia 100 K+ TA: P 16+ TOP Russian Newspapers The most popular Russian newspaper is “Argumenty i Fakty”. TOP 10 Newspapers by One Issue Cover, % Argumenty i Fakty 11. 9 Komsomolskaya Pravda (W) 10. 6 Teleprogramma 9. 0 777 8. 1 Iz Ruk v Ruki 5. 9 Orakul 5. 1 Zhizn 3. 6 Moya semya 3. 5 MK-Region Express Gazeta 77 3. 2 2. 6

Source: TNS Russia Research: NRS (Dec’ 11 -Apr’ 12) Geography: Russia 100 K+ TA: P 16+ TOP Russian Magazines The most popular Russian magazine is TV-guide “Antenna/Telesem”. It’s followed by the auto edition “Za Rulem” and the most popular female magazine “Cosmopolitan”. TOP 10 Magazines by One Issue Cover, % Antenna/Telesem 18. 2 Za Rulem 12. 6 Cosmopolitan 10. 5 Telenedelya 8. 4 Vokrug Sveta 8. 2 Karavan Istory 7. 5 Lyublyu Gotovit! 7. 4 7 Dney Liza Teschin Yazyk 78 6. 5 5. 9 5. 5

Source: TNS Russia Research: NRS (May-Oct’ 11) Geography: Russia 100 K+ TA: P 16+ TOP 20 titles audience geography Titles audience geographical distribution varies greatly. E. g. , share of Moscow and St. Petersburg is in the range from 12% to 58%. Mos+SPB Total 7 Dney Liza Krossvordy Karavan Istory Liza Dobrye sovety Lyubimaya dacha Teleprogramma Vokrug Sveta Teschin Yazyk Liza Argumenty i Fakty Zdorovye Cosmopolitan Komsomolskaya Pravda (W) Lyublyu Gotovit! 777 Za Rulem Telenedelya Burda Antenna/Telesem Iz Ruk v Ruki 79 23% Other cities 100 K+ 77% 58% 41% 35% 34% 32% 31% 27% 26% 23% 22% 22% 20% 18% 12% 42% 59% 65% 66% 68% 69% 73% 74% 77% 78% 78% 80% 82% 88%

TOP-20 titles Gender Segmentation Source: TNS Russia Research: NRS (May-Oct’ 11) Geography: Russia 100 K+ TA: P 16+ TOP titles audience is skewed to women. Elder-Men Elder-Women Young-Men 80 Audience av. age Audience female % Size of bubbles ~ AIR, Axes-cross correspond to total population’s % of females and ave. age Young-Women

Source: TNS Russia Research: NRS (May-Oct’ 11) Geography: Russia 100 K+ TA: P 16+ TOP-20 titles Income Age Segmentation TOP titles cover audiences with different income types. Elder-Poor Elder-Rich Young-Poor 81 Size of bubbles ~ AIR, Axes-cross correspond to total population’s ave. income and ave. age Audience av. Income (RUR) Young-Rich

Print market news • The structure of VI Press will disappear and since 2012 VI will sell only own magazines (“Vokrug sveta”, “Nauka”, “Pervoe, vtoroe, tret’e”, Vokrug sveta guides). The rest magazines will establish own advertising services. • PH Conde Nast will launch “Allure” in September 2012. • The two new magazines about show business “The Hollywood Reporter” and “Variety” were launched in Spring 2012. • The new magazine about Italian design “Numero” will be launched in October 2012. • Artcom Media will launch the new magazine Port (style guide for men) in October 2012. • Metro newspaper goes to Novosibisk and Omsk market. Also the new glossy supplement “Metro Weekend” is published since April 2012. • F 5 magazine was closed on August 16 th 2012. • The newspaper Sport express became a bankrupt and changed the owner.

Source: TNS Russia Research: TNS Media Intelligence (Jan’ 09 -Jun’ 12) Geography: Moscow, Saint-Petersburg Print Market Seasonality (central editions) Low demand: Jan, Jul-Aug; Demand peaks: Mar-May, Sep-Dec. 350% RC Spends Index (Jan = 100%) 300% 250% 200% 150% 2009 100% 2010 2011 50% 2012 0% Jan 83 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012 ) Geography: Moscow, Saint-Petersburg TOP Publishing Houses (central editions) Market is not very fragmented: ~70% belongs to the top 10 suppliers. Supplier share (RC Cost, $) 1 HY 2012 15% SANOMA INDEPENDENT MEDIA HEARST SHKULEV MEDIA 10% KOMSOMOLSKAYA PRAVDA 5% 9% CONDE NAST 6% BURDA -6% KOMSOMOLSKAYA PRAVDA 7% CONDE NAST 0% SANOMA INDEPENDENT MEDIA 12% HEARST SHKULEV MEDIA +/- share change in 1 HY 2012 vs. 1 HY 2011 BURDA ARGUMENTY I FAKTY 5% ARGUMENTY I FAKTY KOMMERSANT 5% -14% KOMMERSANT 4% 7 DNEY AXEL SPRINGER RUSSIA 2% AXEL SPRINGER RUSSIA INFLIGHT INTERTAINMENT GRUPP 2% 13% 17% -3% -1% INFLIGHT INTERTAINMENT GRUPP OTHERS 84 Excluding VAT 32% OTHERS 36% -3%

TOP 20 Print Categories Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow, Saint-Petersburg No dramatic changes in the top. IT category, Food and Home Electronics dropped more than others, while Alcoholic Drinks grew more than others. 85 Excluding VAT

TOP 20 Print Advertisers Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow, Saint-Petersburg TOP-2 advertisers of 1 HY 2011 (P&G and L’Oreal) decreased their share, however L’Oreal dropped a bit less and could even occupy the top position, while P&G fallen to the third line. Many new players in the top-20. 86 Excluding VAT

87 Radio

Radio share is decreasing Excluding VAT Radio increased by 15% in 2011. Its share in the total market volume was stable till 2007, but in 2008 it dropped and keeps falling. Ruble inflation forecast* for 2012 and 2013 is +5%…+10% per each year. Radio 2011: RUR 11. 8 bn. € 0. 29 bn. $0. 4 bn. 35 30 6. 5% 10% 9% 6. 8% 6. 2% 6. 3% 25 5. 0% 4. 8% 20 15 47% 10 52% 5 2 4 2001 0 2002 30% 5 26% 18% 6 11 15% 20% 6. 2% 5. 9% 1% 13 13 -29% 9 7 4. 7% 15% 14% 10 4. 5% 12 5% 6% 16 15% 14 8% 7% 5% 4. 7% 4. 6% 4. 5% 4% 15 14 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 f* 2013 f*** Actual Optimistic forecast* Pessimistic forecast* Share Actual 88 Share of Radio in media market Radio market volume - RUR, billions 40 Share Optimistic* Share Pessimistic* Source: AKAR, Viva. Ki estimation * 24. 08. 2012 estimation ** Changed method - a lot of regional markets added in 2006 *** Volumes for 2013 were calculated on a base of forecasted median interval for 2012

Radio market news • Avtoradio, Yumor FM, ENERGY, Europa+, Retro and Radio 7 began broadcasting in orbits (delivery of the signal in consideration of time zones). • Public Russian Radio was bought by EMG. • Since 2012 the stations of Multimedia holding are sold by EMG. • The radio station NEXT was closed. • Instead of XFM the new radio station TAXI FM was launched. 89

Source: TNS Russia Research: TNS Media Intelligence (2009 -1 HY 2012) Geography: Moscow Time band: 05: 00 – 29: 00 Radio Ad Market Seasonality The periods of highest demand are March-April and October-December. 350 Index, Base=January 300 250 200 150 100 50 0 Jan Feb Mar Apr May 2009 90 Jun 2010 Jul Aug 2011 2012 Sep Oct Nov Dec

Structure of radio holdings and sellers (2012)

Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012 ) Geography: Moscow Network spots and sponsor spots Russian Radio Sellers (by RC budgets) Top-3 radio sellers control ~80% of radio ad market in money terms. EMG holding is the outstanding leader with share 37%. Radio ad market share 1 HY 2012 (RC Cost, $) +/- radio ad market share 1 HY 2012 vs. 1 HY 2011, percent points 36. 5% EMG VI 20. 6% VKPM 3. 2% 20. 5% Media Khold 3. 0% Obyedinennye Media 2. 8% Gazprom Media -0. 4% 2. 2% 2. 8% RMG Other 92 -1. 2% 78% of radio ad market -0. 7% 0. 6% 0. 2% 13. 2% -2. 7%

Holdings shares by age groups Elderly audience chooses stations of GM and VGTRK holdings, while youth gives preference to RMG and VKPM stations. Source: TNS Russia Research: Radio Index (1 HY 2012) Geography: Moscow TA: P 12+ Time: 05: 00 – 29: 00 60+ 50 -59 40 -49 30 -39 20 -29 12 -19 12+ 0% 10% 20% 30% 40% 50% 60% 70% 80% Gazprom Media VKPM VGTRK EMG 93 RMG Media Khold Multimedia Holding Arnold Prize Obyedinennye Media Radio Center Other 90% 100%

Source: TNS Russia Research: Radio Index (Jan-Jun 2012) Geography: Russia 100 K+ TA: P 12+ Time: 05: 00 – 29: 00 Top 10 stations The outstanding leader is Europe+. Daily Reach% 0 Europa Plus Avtoradio Russkoe Radio Dorozhnoe Radio Retro FM Shanson Yumor FM Radio Rossii Mayak DFM 94 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Source: TNS Russia Research: Radio Index (Jan-Jun 2012) Geography: Russia 100 K+ TA: P 12+ Time: 05: 00 – 29: 00 Stations Profile Male stations: Rekord, Maximum, Nashe; female: Romantika, Radio Rossii, Love; “youngest”: Rekord , Energy, DFM; “richest”: Maximum and Energy. Maximum Rekord Maximum DFM ENERGY Nashe Radio ENERGY Romantika DFM Love Radio Rekord ENERGY UFM Nashe Radio Vesti FM Maximum DFM UFM Hit FM Vesti FM Yumor FM Romantika Ekho Moskvy Europa Plus Serebryany Dozhd Nashe Radio 7 Ekho Moskvy Radio 7 Love Radio Yumor FM Retro FM Serebryany Dozhd Russkoe Radio Avtoradio Dorozhnoe Radio Mayak Avtoradio Hit FM Radio 7 Chanson Hit FM Radio Dacha Retro FM Europa Plus Retro FM Avtoradio Chanson Dorozhnoe Radio Yumor FM Radio Dacha Militseyskaya Volna Europa Plus Vesti FM Russkoe Radio UFM Chanson Militseyskaya Volna Radio Dacha Militseyskaya Volna Serebryany Dozhd Love Radio Mayak Radio Rossii Dorozhnoe Radio Ekho Moskvy Romantika Radio Rossii All Media 0% 50% male 95 Russkoe Radio female 100% 0% 20% 12 -29 40% 60% 30 -49 80% 100% 50+ 0% 20% Low 40% 60% Middle 80% 100% High

TOP 20 Radio Categories Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow Medicines and Beauty & Healthcare Goods significantly decreased their shares, while Home Electronics and Transportation categories more than doubled. 96 Excluding VAT

TOP 20 Radio Advertisers Source: TNS Russia Research: TNS Media Intelligence (1 HY 2011, 1 HY 2012) Geography: Moscow There were many new participants in the top 20. Small advertisers of 1 HY 2011 increased their shares and took the places of big advertisers in the top. Only RUSSIAN POST OFFICE could keep the first position thanks to increasing of its volumes in 1 HY 2012 vs. the SPYA. 97 Excluding VAT

98 Cinema

Cinema Market Volume Change Excluding VAT Cinema spends grew by 24% in 2011 vs. 2010. Cinema 2011: 24% Cinema market volume - RUR, billions 1. 2 0. 34% 1 0. 35% 40% 0. 29% 0. 25% 0. 8 0. 25% 0. 30% 63% 0. 25% 0. 6 0. 20% -29% 0. 7 0. 4 0. 5 2006 0. 2 2007 0. 6 0. 9 0. 5 0. 05% 0. 00% 2008 2009 Volume Source: AKAR 0. 15% 0. 10% 0 99 0. 40% 0. 35% Share of Cinema in total media market RUR 0. 9 bill. € 22. 7 mill. $31. 6 mill. 2010 2011

Cinema goers In 2011 cinema visiting decreased slightly in all regions compared to a year ago. Source: TNS Russia Research: M’Index (2004 -2011) Geography: Russia 100 K+, Moscow, St. Petersburg TA: P 16+ 45 40 35 % of 16+ 30 25 20 15 10 Russia 5 Moscow SPb 0 2004 2005 2006 100 *People who visited cinemas in last 6 months 2007 2008 2009 2010 2011

Cinema goers by Age The younger the cinema goer the more active he is. Moscow and St. Petersburg cinema audience is generally older in comparison with the whole country. St. Petersburg Moscow Source: TNS Russia Research: M’Index (2011) Geography: Russia 100 K+, Moscow, St. Petersburg TA: P 16+ Russia Every 4 -5 months Every 2 -3 months Once a month Several times a month 20 101 25 30 Average 35 40 45

Source: TNS Russia Research: M’Index (2011) Geography: Russia 100 K+ TA: P 16+ Cinema goers by Age (Russia) People under 34 are the main part of cinemas’ audience. 16 -34 Every 4 -5 months Every 2 -3 months Once a month Several times a month 102 54% 35 -54 55+ 35% 60% 11% 33% 65% 72% 8% 27% 22% 7% 6%

Source: TNS Russia Research: M’Index (2011) Geography: Moscow TA: P 16+ Cinema goers by Age (Moscow) Smaller share of people under 34 in comparison with the whole country. 16 -34 Every 4 -5 months Every 2 -3 months Once a month Several times a month 103 43% 35 -54 55+ 42% 50% 16% 39% 57% 63% 10% 33% 28% 10% 9%

Source: TNS Russia Research: M’Index (2011) Geography: St. Petersburg TA: P 16+ Cinema goers by Age (St. Petersburg) 16 -34 Every 4 -5 months Every 2 -3 months Once a month Several times a month 104 35% 35 -54 55+ 47% 55% 18% 34% 58% 10% 34% 76% 8% 22% 2%

105 Russian media market overview 1 HY 2012

106 Existing research opportunities Appendix

Existing media research types • Audience measurement surveys – Provide media carriers audience size and structure data Syndicated studies 107 • “Evaluation” surveys – Cover specific questions about media carriers content, including advertising Ad Hoc (customised) studies.

Syndicated Audience Studies • Surveys which are available to everybody in the market – – – – – 108 TV-Index National Readership Survey Radio Index Media & Marketing Index Web-Index TV-Index+ TRU (teenagers) Outdoor (“Espar”) Russian Target Group Index

Television Measurement – TV-Index Sample size ~9 900 people Universe All people 4+ Geography Russia 100 K+ Method Peoplemeters panel Available data TV channels and their broadcast events audience size; up to 1 minute precision Monitoring Linked to audience data – possible to get each event (programme, ad spot) audience size 109

Non Terrestrial Television – TV Index + (face-to-face interviews) Sample size 18 000 people per year Universe All people 4+ Geography Russia 100 K+ Method Face-to-face interviews Monitoring TV advertising on 63 non terrestrial TV channels, not linked to audience data 110

Non Terrestrial Television – TV Index + (peoplemeters) Sample size ~9 900 people Universe All people 4+ Geography Russia 100 K+ Method Peoplemeters panel Monitoring TV advertising on 63 non terrestrial TV channels, linked to audience data 111

Print – National Readership Survey Sample size 79 000 Russia, 28 000 Moscow(16+), 29 000 Moscow(12+) and 9 000 SPb (per year); at least 2 500 interviews during a year for 13 separate cities Universe All people 16+ (12+ for Moscow) Geography Russia 100 K+, Moscow, SPb; 13 separate cities Method Phone interview (CATI) Available data National and local press titles audience size Monitoring Moscow and SPb. Separate, not linked to audience data 112

Radio Audience – Radio Index Sample size 150 000 Russia, 60 000 Moscow, 30 600 SPb, 45 000 Cities (per year) Universe All people 12+ Geography Russia, Moscow, SPb, 25 Cities Method Phone interviews (CATI). Day-after-Recall Available data National and local radio stations audience size by 15 minutes Monitoring Separate, not linked to audience data 113

Internet audience – Web-Index Sample size 12 000 participants in Russian 100+ panel, 2 300 Moscow, 1 500 SPb, 1 300 Ekaterinburg, 1 000 Novosibirsk Universe All people 12 -54 Geography Moscow, SPb, Ekaterinburg, Novosibirsk, Russia 100 K+ Method On-line panel Available data Sites audience size (~ 350 sites) Monitoring of ads presence on fixed web-sites, not linked to audience data 114

Outdoor audience – Espar Universe All people 18+ Geography Measurement - 50 cities, incl. Moscow and SPb Method Observation (head count) Available data Sites audience size, possibility to model reach & frequency figures for a given campaign Monitoring All sites in 50 cities, linked to audience data in 40 cities 115

Consumption, lifestyle, demographics – M’Index Sample 45 000 Russia, 7 000 Moscow, 3 000 SPb (per year) Universe All people 16+ Geography Russia 100 K+, Moscow, SPb Method Self-filled questionnaire Available data Demographics, lifestyle, time spend, goods and services brands consumption, general media consumption, psychographics 116

Ad Hoc surveys • Can be designed in specific way to answer specifc questions – Whatever sample and geography is required – Both qualitative and quantitative – Any parameter can be selected depending on task and available funds • Media evaluation surveys – Usually quantitative – Designed to evaluate specific media channels efficiency, as opposed to syndicated audience measurement studies. 117

Other Ad Hoc Studies Examples • Specific placement effectiveness evaluation – – 1 st / last TVC break position benefits Specific programmes placement Inserts / non-standard pages placement Location within carrier (covers / sections in magazines, outdoor A/B sides) – Non-standard outdoor placement – Indoor sites • Copy Wear-out study • …. . 118

Other Ad Hoc Studies Examples Method is generally the same: • Select your Target Audience • Ensure exposure to the placement • Ask questions pertaining to studied placement. 119

Example – OOH effectiveness study • Poster Track by Espar Analytic • Monthly street survey of 300 respondents, showing them unbranded pictures of posters • Evaluated KPIs: – Recognition (Have you seen this poster? ) – Attribution (Which brand is advertised? ) – Liking (Do you like the poster? ) • Data are broken down by age / gender / car users / pedestrians groups. 120

Usage of existing studies • Brand health tracker – Analysing deeper or adding specific questions to the existing surveys • For example, look at “Agree / Disagree” statements about product before, during and after respective campaign • Key message take-outs can also be of use • The most important factor is to know precisely what is planned to achieve with any campaign => objectives (both campaign and research) should be very precise. 121

122 Appendix: 1 HY 2012 research news

123 TV Index / TV Index+ 1 HY 2012

TV Index / TV Index+ Survey Evolution TV Index Plus TV Index 2009 Increased panel sample (Non-broadcast channels) Adding new channels to the project Monitoring improving New weighting parameters 4 th biggest panel size in Europe 2010 Adding new channels to the project Adding new cities to national panel Monitoring improving Audio Matching System testing 2011 Audio Matching: start replacement of equipments in the whole panel Adding new channels to the project 2012 -2013 Adding 1 -3 new cities to the national panel per year Increasing sample size in cities 124 Adding new channels to the project

TV Index 2011 -2013 Increasing sample size on local markets during 2011 -2013 Saint-Petersburg (250 households) Ekaterinburg Ufa N. Novgorod Volgograd Samara Perm Kazan Krasnoyarsk Omsk Voronezh Chelyabinsk 125 Rostov-on-Don Saratov ~100 households (+25 -30%) Novosibirsk

Audio Matching System Goals: Readiness for digital TV audience measuring Precise and prompt channels identification Possibility of alternative TV platforms watching measuring Possibility of delayed watching measuring Technology: Several years of successful application in Europe and Asia Special module to peoplemeter installation Sound recognition Plans: 2010: equipment installation in TV panel 2011+: step-by-step replacement of equipment in the whole panel 126

127 Спасибо за внимание.