Rostelecom — Regulatory Filings 2019

Apr 10, 2019

10-Apr-2019 / 16:33 MSK Dissemination of a RegulatoryAnnouncement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

Rostelecomranked number one by the number of hosted PBX clients in the 2018 TMT Consulting Rating

Moscow, Russia - April 10, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that it has been ranked first by the number of hosted PBX customers secured in 2018, in the TMT Consulting Rating.

The latest analysis published by TMT Consulting, an independent consulting agency, shows that the Russian hosted PBX market has grown by 35% over the last year. Rostelecom was ahead of its competition based on its subscriber base growth in 2018. The Company's market share more than doubled from 11% in 2017 to 24% last year.

According to TMT Consulting, this growth was driven by the introduction in 2017 of the package offer "Plus Account", with extra services also available within the hosted PBX at a 50% discount, as well as due to an active regional promotion of the service across Russia.

Sergey Tabolin, Rostelecom's director for marketing for the business segment, commented: "Among key factors contributing to our successful promotion of the hosted PBX service, apart from the "Plus Account" offer, are our omni-channel tactics to attract new clients, tailored approach to targeting and advertising in each region, a s well as a transparent and straightforward pricing, underpinned by the multifunctional nature of the service."

The PBX service eliminates the need to purchase and maintain telecommunication equipment, as it is hosted on a provider's server and connects users via cloud. Rostelecom enables its clients to arrange a telephone infrastructure for businesses of any size - from start-ups to large national companies, providing a wide range of additional functions, such as phone calls monitoring and recording. In addition, owners of hosted PBX can manage their telephone network through personal web office and adjust it to meet their business needs.

PAO Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.

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Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to 12 million families and pay-TV services to 10.1 million families, over 5.2 million of which are subscribed to Rostelecom's IPTV services on a national level. Rostelecom's MVNO base is over 1.2 million users. The Company develops digital solutions for smart homes, online education, telemedicine and other services.

The Group is also the leading provider of telecommunications services to government bodies and corporates of all levels with more than 1.0 million legal entities currently using Rostelecom's high-speed Internet services and VPN.

In the twelve months of 2018, the Group generated RUB 320.2 billion of revenues, RUB 100.9 billion of OIBDA (31.5% of revenue) and RUB 15.0 billion of net income.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data centers and cloud computing, biometry, healthcare, education and housing & utility services.

The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, andAA(RU) by ACRA. * * *

Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

• Assessment of PAORostelecom's (theCompany) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
• TheCompany's plans to take ownership stakes in other organisations;
• theCompany's anticipated capital expenditures and plans to construct and modernize its network;
• theCompany's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
• theCompany's plans with respect to improving its corporate governance practices;
• theCompany's expectations as to its position in the telecommunications market and forecasts on the development of the market segments withinwhich theCompany operates; economic outlook and industry trends;
• theCompany's expectations as to the regulation of theRussian telecommunications industry and assessment of impact of regulatory initiatives on theCompany's activity;
• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially fromthose expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions inRussia as well as changes in global economic conditions;
• risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities

industry as well as currency and exchange controls relating toRussian entities and their official interpretation by regulatory bodies;

• risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's
• services including their promotions, and the ability of theCompany to remain competitive in a liberalized telecommunications market; technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
• other risks and uncertainties. For a more detailed discussion of these and other factors, see theCompany'sAnnualReport and theCompany's other public filings.

Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. TheCompany does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

ISIN: US7785291078 Category Code:MSCM TIDM: RKMD LEICode: 2534001D752JPNM0H170 Sequence No.: 8169 EQS News ID: 798441

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