1. This document is prepared by JSC “RTI” to present it to all concerned within the Memorandum of understanding between JSC “RTI” and Association “Financial & Banking Association of Euro-Asian Cooperation” (hereinafter Memorandum). Transferring this document to any third party is only allowed on the basis of this Memorandum. Any duplication of this document in whole or in part without the prior approval is strictly forbidden. This document does not contain full details of the subject, any additional information maybe provided upon written request to all concerned «Altai» - Earth remote sensing space system Presentation material

2. 2 Summary of the investment project "Altai" The project will create the preconditions for the start of a profitable business of developing Earth remote sensing spacecrafts and sale civilian high resolution satellite images. Purpose of the project Investment results  Getting a large order to develop “Altai” Earth remote sensing system by creating an experimental spacecraft, outputting it into orbit and demonstrating its capabilities.  Foundation of the business at development and manufacture market of Earth remote sensing spacecrafts  Entering the high-margin market segment of the civil remote sensing images and services based on them.  Investments = $25m. (Developing of experimental satellite). Implementation of the project: ‒ NPV = +$31m. (NPV + TV = +$136m.) ‒ IRR = 33% (IRR + TV = 36%) ‒ DPBP – 6,7 years Benefits for the investor  Long-term order providing stable capacity utilization.  Elevation of leading position in the emerging market of small remote sensing satellites.  Development of technology and management skills in a new perspective industry.  Gaining new experience of managing international cooperation in space industry  Accessing profitable market of high resolution satellite images as a supplier. Financial results Consolidated figures up to 2027 year (developing of 21 satellites): Income = $1300m. OIBDA = $255m. Net income= $187m.

3. 3 The world market of Earth remote sensing  The total annual volume of the world market of Earth remote sensing will be more than $8 billion after 2020;  Government customers provide more than 70% of revenue in the market of Earth remote sensing data;  Significant increase in the number of launches of small Earth remote sensing satellites is expected in the period from 2016 to 2020 and will lead to significant growth of the market by 2035.;  The largest companies - Airbus D&S, BlackBridge, DigitalGlobe, DMCii, ImageSat, MDA, Skybox.  Requirement for spatial awareness in Russia, China, India and other countries necessitate the creation of Earth remote sensing system.  Unmet demand for high resolution satellite images is estimated at $1.5-$3 billion. The amount of Earth remote sensing satellites industry, billion USD * * Manufacturing, launch and satellite maintenance + R&D Provided by SIA, BCC Research, Furton Corp etc. Unmet need for high precision data actually generates a market of Earth remote sensing satellites and services based on them

4. 4 Global competitive environment Nowadays:  Global Earth observation services are offered by small numbers of operators  Governments as primary customers  Medium to large satellites with advanced, custom-designed payloads are in use  Increasing satellite sophistication: on-board data processing and optical communications for downlink  Objective to provide high resolution imagery New trends:  Objective to provide real-time or near-real time imagery using the Internet  Smaller satellites, with lower costs of manufacture, launch, and operation  Governments as primary customers, but Customer base is developing  New operators will be typically founded and financed by IT/analytics/tech sector  Development of Value added services (VAS) based on Earth observation services Industrial trends provide an opportunity to improve the quality of information systems through highly detailed operational spatial data Companies Technological features High resolution High revisit time Panchromatic Multispectral Infrared Hyperspectral Radar Radio occultation Video Airbus D&S ✔✔✔✔✔ Black Bridge ✔✔✔ DigitalGlobe ✔✔✔✔✔ ImageSat ✔✔✔✔ PlanetLabs ✔✔✔✔ Skybox (Google) ✔✔✔✔✔✔ Spire ✔✔ Aquila Space ✔✔✔ GeoOptics ✔✔ NorStar ✔✔✔✔ Altai ✔✔✔✔ Basic features

5. 5 The spacecraft will be designed at the basis of developed platform solutions of JSC “ISS” with flight qualification. Orbital constellation consists of 21 spacecraft Characteristics of satellite Satellite in initial position Satellite in working position Block of three spacecrafts for group launch ParameterValue Satellite Orbit altitude, kg450-550 Satellite Orbit altitude, degree97 Satellite Mass, kg450-500 Mass Optoelectronic Equipment, kg187-200 Input power of Optoelectronic Equipment, WBefore 205 Satellite dimension in launch position, mm2720х1341х1008 Swath width in nadir, km5-15 Pixel projection on surface in nadir PC, meter0,31-0,5 Working spectral range PC, nanometer0,45…0,90 Data receiving rate, Megabit/sec600-1200 Work range, Gigahertz8,025-8,400 Power supply voltage, V27 Active Life, years5 Basic characteristics of Earth remote sensing small satellite Target spacecraft characteristics are based on the technical specifications and requirements of the target customers taking into account the economic efficiency of its production and operation

6. 6 The introduced scheme of developing the space system will allow to conduct global surveillance of any object on the surface of the Earth with a frequency of 1 time every 1.5 hours with an accuracy of 0.5-0.8 m Architecture of the «Altai» system 21 Earth remote sensing spacecraft constellation Space segment Key characteristics of the spacecraft Ground segment  Ground control complex can be placed in the receiving data centers in order to optimize the development and maintenance of the ground segment  Allocation of receiving data centers and ground control complexes of the system is determined at a stage of conceptual design. Swath width, 5-15 km ParameterValue Satellite Orbit altitude, kg450-550 Image product resolution, meters0,47-0,8 Pixel projection on surface in nadir PC, meter0,31-0,5 Swath width in nadir, km5-15 roll and pitch angles range, angle degree-45…+45 Quantity of digitals for image digitization12 Data Storage, Tb1-2(4) Mass Optoelectronic Equipment, kg187-200 Optoelectronic Equipment dimensions, mm2050х700х700 Energy usage, W - in shooting mode180 - in providing data mode65 Active life, years5

7. 7 The Project Stages The phase structuring of the work will minimize the managerial, financial and technological risks of the project and to optimize the time of its implementation Stage 2: Development and Launch of experimental Small Earth remote sensing spacecraft (2016-2017) Stage 4: Creation of orbital Constellation involving 21 Small Earth remote sensing spacecrafts (2018-2027)  Manufacturing and launch to the orbit up to 30 small Earth remote sensing spacecrafts to be create the orbital Constellation involving 21 Small Earth remote sensing spacecrafts;  Visual observation of any Earth surface object every 1,5 hours frequency and accuracy of 0,5 m. Cost: $1222,2m.  Experimental small Earth remote sensing spacecraft development and launch to the orbit to confirm an accuracy resolution up to 0,5 meter Cost: $23,2m. Customer : RTI Open Society, Investors  Space system with small Earth remote sensing spacecrafts Preliminary Design Development Cost: $2,8m. Customer: RTI Open Society Stage1: Preliminary Design Development (2016) Stage 3: Manufacturing and Launch of the first Small Earth remote sensing spacecraft and its flight tests (2017-2018)  Small Earth remote sensing spacecraft Detail Design Development;  Manufacturing of the small Earth remote sensing spacecraft with characteristics of serial Spacecraft;  Ground tests of small Earth remote sensing spacecraft ;  Launch and flight tests of small Earth remote sensing spacecraft. Cost: $77,9m.

8. 8 Key milestones of project 201620172018201920202021202220232024202520262027 … 2035 Designing of documentation for the experimental small spacecraft Development and launch of experimental small Earth remote sensing spacecraft The creation and launch of the first small Earth remote sensing spacecraft The manufacture and launch of 13 small Earth remote sensing spacecrafts The manufacture and launch of 17 small Earth remote sensing spacecrafts Maintaining the current orbital constellation and its increase to 133 small Earth remote sensing spacecrafts Confirmation of the image production resolution up to 0,5 m. The contract for the development of a system The achievement of frequency of monitoring – 3 hours The achievement of the frequency of observation – 1.5 hours. The completion of the contract The achievement of frequency of observation – 0.5 hours Consistent achievement of intermediate objectives of the project will successfully implement it and create a strong foundation for a profitable and sustainable business

9. 9 The scheme of possible cooperation on the project Subcontractor LLC «Materik» (RTI group) JSC “Information Satellite System M. F. Reshetnev” ------------------------------------------- Manufacture and testing of the first four small spacecrafts JSC Peleng (Republic of Belarus) ---------------------------------- Manufacturing of payload: optics JSC YARW (RTI group) ---------------------------------------------- Serial production of small spacecrafts Primary contractor JSC «RTI» Customer Ground Equipment Ground control complexes Receiving data centers Presented cooperation allows keeping the key expertise in the creation of Earth remote sensing system in JSC «RTI» and create a new production of Earth remote sensing satellites JSC Distant Radiocommunication Scientific Research Institute (RTI group) ---------------------------------- Adaptation of ground segment

10. 10 Possible output from the Project The phase funding of “Altai” Earth remote sensing space system will reduce the risks and to enable the exit of the investor from the project upon completion any of its stages Manufacture and Launch of experimental Spacecraft  Failure to launch The loss of the Spacecraft, the inability to confirm the key characteristics Output options Possible events  Refusal of further funding of the system Receipt of insurance payment, recoupment of made expenditures Manufacture, Launch and Flight tests of Spacecraft Payment of work performed, compensation for breach of contract (contract conditions) the amount of $77.9m.+ Investments $26m.  Refusal of order of the space system Sale of remote sensing images and/or Selling the Spacecraft on orbit to foreign customer at market price. Cost estimation is from $20m.  Unreachable key characteristics Image resolution does not match to declared Selling the Spacecraft on orbit to foreign customer at market price. Cost estimation is up to $20m.  Failure to launch The loss of the Spacecraft for reasons connected to the its launch Receipt of insurance payment, recoupment of made expenditures  The transfer of serial production of the system to another contractor Payment by the Customer of work performed – $77,9m. Selling the IP to the Customer of $26m.+ Selling a business to an interested buyer Expenditure $60m.

11. 11 Additional capabilities Earth Remote Sensing system creation will form sustainable business in B2G and B2B segments of global Earth observation market Improvement and maintenance of Altai system  Development process in the framework of the order will record a break away from potential competitors, will reduce costs of satellite production.  The predicted government demand in ERS data with frequency of 1 time in half an hour - up to 133 satellites constellation Products and servicesSuccess factors  Technologies establishment in the framework of the order will provide a possibility of further serial production and commercialization of competences in area of ERS satellites  The designed ERS satellites with high resolution of 0,5 m and higher is the most perspective, hi-tech and premium segment  New generation of Small Satellites in replacement of outdated;  Increasing of constellation up to 133 satellites would amount additional total revenue in more than $4,5 Billion till 2035 Earth Remote Sensing satellite serial production  Production and sales of Satellites to B2B & B2G Customers in Russia and BRICS and SCO countries (estimation volume of segment – $23 Billion till 2035)  Competences on work with BigData in Joint-Stock Financial Corporation “Sistema” subsidiaries;  Capabilities of R&D financed by the Customers;  Opportunities to scale of ready-made services to all earlier sold systems  Common operation of system through joint center of high-precision spatial information VAS services development  Collecting data from ERS satellites and setting up of analytical and statistical reports for follow-up sales to civil Customers.

12. 12 Risks DescriptionMeasures for risks reduction Market Market risks are minimum because one of system users is Government However if an interest in ERS from government institutions will rise established business on satellites production can be sold Establishment of such business which critical elements are reliably protected by the Russian and international legislation Commercial/Operational Insufficient funds High level of operational expenditures Restriction for VAS services Fundraising insufficient amount for planned operational level (shortage of Customer budget /amount is lower than planned) Expenses level on maintenance and service of space and ground segments of system is higher than planned Total control over all system by the main Customer with impossibility to use ERS data for establishment of new businesses based on open (and not up-to-date) data (VAS based on Big Data). After confirmation of characteristics by experimental satellite it is necessary to sign agreement with obligations for total financing for system creation with the necessary number of satellites by approved Technical assignment. Changes of sub-contractors and system architecture in coordination with the Customer (since these are Customer’s expenditures in future). A reasonable compromise on access to ERS data between the Customer and the Operator of system Technical Non-achievement of technical specifications Obtaining the characteristics which aren't allowing to operate system with planned efficiency The analysis and calculation of ERS system efficiency at design level and subsequent adjustment after launch of the experimental satellite Project format considers necessary measures for risks reduction. At the same time geopolitical and macroeconomic risks can influence both the budget of the Customer, and on the relations with foreign partners

13. 13 Conclusions  Acquiring Order on creation of rapid access “Altai” Earth Remote Sensing System will allow the investor to take part in creation of high-marginal business in the Russian segment of the global market of development and production of Earth remote sensing satellites for needs of commercial customers.  An opportunity to render additional services (in coordination with the main Customer of System) based on retrospective ERS data for a wide range of civil customers will allow to create a set of the high-marginal accompanying directions of business.  The project doesn't bear essential risks since in the current format considers all necessary measures for their decrease.  The project will allow to reach synergy due to accumulation of competences of the adjacent and interconnected segments of the market.

14. 14 Any additional information may be provided upon written request to all concerned SHILOV Maxim A. General Director Tel.: +7 (495) 781-1582 Mob.: +7 (985) 723-9747 E-mail: mshilov@materikgroup.rumshilov@materikgroup.ru ANDREEV Evgeny S. Programme Director Tel.: +7 (495) 781-1582 ext. 253 Mob.: +7 (905) 523-9893 E-mail: aes@materikgroup.ruaes@materikgroup.ru Limited Liability Company «MATERIK» Block 4, build 11-13, Yakovoapostolskiy side street, 105064, Russia