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Mobile TeleSystems

February 4, 2014

MTS raises dividend guidance and affirms growth in core markets at 2014 Investor Day

Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announced its new 3D Strategy at its Investor Day 2014, which is being held in Moscow.

MTS’s new strategy envisions three areas of focus for the Company:


Data affirms the Company’s efforts to provide its customers with the fastest, most reliable mobile and fixed-line networks in the region. MTS has been the leader in the Russian market in promoting data use by its customers through the active build out of its 3G/LTE data networks and the use of its retail platform to migrate customers from feature to smartphones. Overall, MTS works to ensure that its customers have the best connectivity experience in their homes, workplaces and points in between.


Differentiation highlights the unique products and services MTS offers to its customers in to enhance their digital lifestyles. MTS is establishing Moscow as a world-class center for connectivity through its roll-out of GPON (Gigabit-capable Passive Optical Networks) in the region, which when completed will allow speeds of up to 1 Gb/s in every home or office in Moscow. In addition, MTS offers FTTB/FTTH solutions in over 180 cities throughout Russia. MTS customers also benefit from a best-in-class customer experience as evidenced by its market-leading churn rates and higher usage than on our competitors’ networks.


Dividends confirm the Company’s commitment to continuous improvement in the operational efficiency of the Company and enhancement of shareholder returns. Through a prudent operational approach, stable investment programs and opportunistic debt management, MTS has been able to steadily improve cash flows and reduce its balance sheet obligations. This allows MTS to reaffirm its commitment to its long-term practice of paying out a significant portion of its free cash flow in the form of dividends to its shareholders.

Guidance and forecasts – 2014 – 2016E

As part of its presentations to investors, MTS also announced a number of forecasts for the next three years. These include:

  • MTS expects the overall Russian telecommunications market to grow at an estimated CAGR 3% from 2013E to 2016E
  • MTS forecasts Group Revenue to be approximately 5% for FY2013, while MTS will realize 3-5% revenue growth per year from 2013 – 2016E
  • MTS expects the Moscow fixed-line market to grow approximately 4% per year from 2013 – 2016E, while revenues at its subsidiary, MGTS, can grow as high as 10% per year through 2016E
  • MTS anticipates that absolute OIBDA will grow at least 6.5% in 2013 and at least 2% from 2014 – 2016E
  • MTS reaffirms its dividend policies, but expects a higher cumulative pay out in 2014 and 2015 of at least RUB 90 bln due to a rise in free cash flow and strong operating results.

For more information and a full set of materials highlighting our discussions with investors, please visit:

Audio and video highlights of our Investor Day will be posted following the conclusion of the event. Likewise, we welcome investors to follow MTS and developments, including announcements at Investor Day, at @JoshatMTS or #MTSinvestorday2014.

* * *

For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Corporate Finance & Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025




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