POST-SOVIET STATES: DYNAMIC GROWTH AND DIGITAL CHALLENGES AROUND THE WORLD IN 60 MINUTES Boris Lozhkin President of UMH group

Source: RBC.RU media-ratings — Market leader in internet, radio and publishing — Segments: business, news, TV-guides, sport, lifestyle, fashion, — More than 50 media brands — Offices in 42 cities (Ukraine, Russia), Headquartered in Kiev, Ukraine INTERNET — Leader among local players — 15 leading internet projects — 43% of internet consumption RADIO — In top-2 market players — 8 station (5 national) — 18% of radio consumption — 64 cities — PUBLISHING — Market leader — 17 magazines and 7 newspapers — 25% readership share UMH group in Top-15 Media Companies in CIS UMH GROUP: KEY FACTS ABOUT US

Sources: ACAR, Ad Coalition, GosComStat Russia, UkrStat, Internet World Stats, et al. POST-SOVIET COUNTRIES: THE MAIN FACTS Russia and Ukraine is the fastest- growing markets Ex-USSR now: – 15 states – 120 languages – 2 countries in the Top-10 by territory globally – 3 countries are EU members Total population – 290 million – Russia and Ukraine represent 65% of population Total Internet population – 115 million – The leader is Russia, 60% of total – Ukraine keeps the second place (13%) 14 billion USD volume of ad market (2012) – Russia achieved 11,3 billion USD (85% of total)

Media spending keeps growing in all key countries after the 2009 crisis — Russian advertising market grew by 13% to USD 11,3 billion in 2012 — Ukrainian advertising market grew by 9.7% to USD 1.2 billion in 2012 Source: ACAR, Ad coalition USD with VAT MAIN TRENDS Digital is the most dynamic segment Print keeps being the main source of income for publishers, however, circulation keeps dropping down 1 23

Source: ACAR, USD with VAT RUSSIA KEEPS GROWING TO REACH TOP-10 MARKETS GLOBALLY Digital is the most dynamic segment Print keeps being the main source of income for publishers, however, circulation keeps dropping down 23 Traditional press keeps growing in advertising volume 1

Source: ACAR, Ad coalition USD with VAT Print keeps being the main source of income for publishers, however, circulation keeps dropping down 13 MAIN TRENDS IN THE REGION Media spending keeps growing in all key countries after the 2009 crisis Digital is the most dynamic segment — Russian internet advertising market grew by 35% to USD 2.1 billion in 2012 — Ukrainian internet ad market made USD 85 million and expected 26% growth in 2013 — Internet is considered as the most influential source of political news and information 2

Source: ACAR, Ad coalition USD with VAT Print keeps being the main source of income for publishers, however, circulation keeps dropping down 13 Media spending keeps growing in all key countries after the 2009 crisis RUSSIA: DIGITAL GROWTH FOLLOWS GLOBAL TRENDS 2 — Digital share in advertising market has doubled in 3 years — Press is primary donor for digital

Source: ACAR, Ad coalition USD with VAT Print keeps being the main source of income for publishers, however, circulation keeps dropping down 13 Media spending keeps growing in all key countries after the 2009 crisis SAME TREND FOR UKRAINIAN DIGITAL MARKET Digital spending in Ukraine grows far ahead of the market 2

Source: ACAR, Ad coalition USD with VAT 1 Media spending keeps growing in all key countries after the 2009 crisis Internet is the most dynamic segment MAIN TRENDS IN THE REGION 2 Print keeps being the main source of income for publishers, however, circulation keeps dropping down — The audiences of top titles are up to 10 million readers — Press advertising spending slightly grew in 2012 in key markets — Digital media for publishers is rather subsidized than profitable business currently 3

Source: ACAR, Ad coalition USD with VAT 1 Media spending keeps growing in all key countries after the 2009 crisis Internet is the most dynamic segment 2 TOP 10 PRINT BRANDS ARE 5-10 M READERS PER ISSUE 3 Brand Antenna-TeleSem’ Argumenty I Facty Za rulem Komsomolskaya Pravda Cosmopolitan Telenedelya Teleprogramma Karavan istoriy Lyudblyu Gotovit’ Liza Cover* Type TV-guide Quality Auto magazine Daily newspaper Glossy TV-guide Glossy/Lifestyle Culinary Woman *Audience of one number in thsnd people Source: TNS Russia, NRS Russia, Sep Feb 2013, 16+, , respondents /yearly, CATI Source: TNS Ukraine, MIMI Ukraine’ 2012/3+4, 16-65, , respondents /yearly, F2F Source: TNS Central Asia, MIMI Kazazhstan’2012, 15+, , 300 respondents /yearly, F2F

Source: RBC.RU media-ratings Leading media brands compete for top positions across the region, looking for a right mix of common values and post- Soviet heritage, with effective adaptation to every culture in every country MAJOR CHALLENGES While traditional media expand their presence on multimedia platforms, top media brands from non-competitive segments start competing with each other in a new digital world MULTI- CULTURALISM MULTI- PLATFORM

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