ctc media, inc. investor presentation...ctc media, inc. investor presentation first quarter 2010...

CTC Media, Inc.

Investor Presentation

First Quarter 2010 Results

11

The Leading Independent Media Company in Russia and the CIS

FREE-TO-AIR

CTC MEDIA

GROUP

PRODUCTION

- UZBEKISTAN

- KAZAKHSTAN

- MOLDOVA

CTC - pure entertainment channel

targeting viewers aged 6-54

Domashny - only channel in Russia

targeting females aged 25-60

DTV - action / investigative themed channel


Channel 31 - entertainment channel


SofTS - start-up channel

CTC TV Dixi - entertainment channel


6 channels in 4 countries

and 2 in-house production companies

RUSSIA CIS SOHO MEDIA COSTAFILM

• 4th most watched broadcaster in Russia with a national

audience of c.100 million for CTC, the flagship channel

• One of the leading broadcasters in Kazakhstan (Channel 31)

• Entertainment focus appeals to dynamic, youthful &

affluent audience

• TV is the most cost-effective advertising medium in Russia

• Well positioned portfolio of assets with in-house

production capabilities

• Strong cash flow generation & balance sheet

2

Operational & Financial Highlights

Average combined 4+ audience share in Russia up year-on-year from 12.3% to 13.0%

Target audience shares up year-on-year for CTC and Domashny networks

Successful introduction of CTC-international following its North American launch in December 2009

Sale of 100% interest in Kazakh radio station for $2.0 million in cash in January 2010

Group Highlights for the First Quarter 2010

GROUP FINANCIAL HIGHLIGHTS

GROUP OPERATIONAL HIGHLIGHTS

Total revenues up 18% to $123.2 million

OIBDA up 1% to $39.7 million

OIBDA margin of 32.2%

Net income up 8% to $25.2 million, fully diluted EPS of $0.16 (Q1 2009: $0.15)

Net cash position of $76.2 million at end of the period

Board of Directors approved a $0.065 per share cash dividend to be paid on June 30, 2010 to stockholders of record as of June 1, 2010

3

44

Market and Operational Update

46.3 48.7 48.1 50.1

27.6 25.3 22.0 20.8

6.0 5.46.3 5.1

18.1 18.217.2 16.5

5.4 6.4

43.555.7

30.716.0

6.44.4

18.213.4

0.9 1.2 1.59.3

2004 2005 2006 2007 2008 2009

5

3.9 5.06.5

9.211.1

6.4

1.7 2.33.2

4.45.6

3.6

2004 2005 2006 2007 2008 2009

TV Ad Market

Total Ad Market

5

Sources: (1) Russian Association of Communication Agencies

(2) Initiative Media

Note: (*) Data for 2007 and 2008 was restated by Russian Association of Communication Agencies in February 2010

Ad Spend in Russia by Media Segment1 (%)

Russian Advertising Market Overview

Internet

Radio

Print

Television

Outdoor

Advertising Market Size1 (US$ billion)

TV remains inexpensive relative to other media in Russia and continues to take advertising market share

2009 Cost per Thousand (CPT)2 (US$)

2009 TV Cost per Thousand (US$)²0.4 0.8 0.9Other 1.21.0 1.3

* *

* *

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66

Russian TV Advertising Sales Structure

Combined audience share

of 25%2

Advertising on CTC Media channels exclusively sold by the largest media sales house in Russia

Video International

Advertising Agencies

AlkasarGazprom-Media /

Advertisers

Media Sales Houses:

Combined audience share

of 62%1

Sources: (1) Video International web site, as of April 2010. Source for audience share: TNS Gallup (all above 4 years old) in Q1 2010

(2) Public information, as of April 2010. Source for audience share: TNS Gallup (all above 4 years old) in Q1 2010

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Sectors Advertised on CTC Media Channels

Vast majority of advertisers are basic consumer goods focused

CTC Media advertisers’ budgets split: 77% multinationals, 23% local companies2

1 Food 27%

2 Cosmetics 19%

3 Other goods 11%

4 Pharmaceuticals and vitamins 11%

5 Telecoms 7%

6 Appliances 5%

7 Personal care products 5%

8 Beverages 5%

9 Detergents 5%

10 Beer 3%

11 Auto and finance 2%

100%

1 Food 25%

2 Cosmetics 20%

3 Other goods and services 13%

4 Pharmaceuticals and vitamins 12%

5 Appliances 7%

6 Personal care products 5%

7 Detergents 5%

8 Telecoms 5%

9 Beverages 4%

10 Beer 2%

11 Auto and finance 2%

100

%

Notes: (1) CTC Media sales data for CTC, Domashny and DTV Networks

(2) Q1 2010

Q1 20101Q1 20091

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8

19.9

22.7

4.1

0.9

18.8

21.9 21.6

4.0

1.3

6.8

20.4

12.4 13.0

6.2

Channel One VGTRK Gazprom-Media CTC Media National Media Group Prof-Media UTV Russia Holding

88

Free-to-Air TV Landscape in Russia

Source: TNS Gallup Media, demographic ―all above 4 years old‖, CTC Media’s Research Department

CTC Media is the largest non-state owned broadcasting company in Russia

Combined Audience Shares, %

(all 4+ demographic)

Q1 2009

Q1 2010

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9

19.9

17.8

13.7

8.5

6.7

5.1

3.32.7

2.0 2.1 1.9 1.7 1.91.2 1.0 0.9 0.6 0.4 0.3

12.3

18.8

16.9

15.1

13.0

9.1

6.5

4.3

3.22.6

2.2 2.0 1.7 1.92.2

1.7

0.8 0.8 0.7 0.6 0.6

12.412.4

Channel

One

Rossiya 1 NTV CTC

Media

Combined

CTC TNT Ren-TV TV Center TV-3 Domashny Rossiya K DTV Channel 5 Rossiya 2 Zvezda MTV Rossiya 24 Muz-TV 2x2 7TV Other

99

All 4+ Audience Share Dynamics and Power Ratio

(1) Source: TNS Gallup Media, demographic ―all above 4 years old‖, CTC Media’s Research Department

CTC Media captures market share in access of combined audience share due to its high power ratio

(2) Power ratio = National TV advertising market share/All 4+ audience share (average). Combined Power Ratios include blended power ratios for CTC, Domashny and DTV (company’s estimates)

(3) Includes audience shares of smaller national and regional channels

Audience Shares, %

(all 4+ demographic)1

Q1 2009

Q1 2010

Combined Power Ratio of CTC Media’s channels in Q1 2010 – 1.52

(FY 2009: 1.5)

3

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2.62.9 3.0

2.0 2.2 2.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q1 09 FY 09 Q1 10

2.2 2.2 2.11.9 2.0 1.7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q1 09 FY 09 Q1 10

10

CTC Media Target Audience Share Dynamics

CTC and Domashny networks gained target audience shares y-o-y in Q1 2010

Domashny Network DTV NetworkCTC Network

All 4+ demographicAll 4+ demographic

Target demographic All 6-54 Target demographic All 25-54

Source: TNS Gallup Media (audience shares, %)

All 4+ demographic

Target demographic females 25-60

11.4

12.2 12.6

8.59.0 9.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q1 09 FY 09 Q1 10

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111111

Increasing Technical Penetration

Note: (1) Technical penetration means the percentage of the population that has the technical ability to receive a particular broadcast signal. Measured annually by TNS Gallup Media in cities with populations of more than 100,000

Reaching more potential viewers through expanded technical penetration

Technical Penetration1, %

Substantial year-on-year increase in technical

penetration for CTC (+3.2pp) Domashny (+5.4pp) and

DTV (+7.4pp) in 2009

We continue to improve the signal distribution

through regional stations acquisitions and expanding our

affiliate network

50% of technical penetration is provided by CTC Media’s

owned-and-operated stations and repeater

transmitters

86.6

58.2

44.9

87.4

64.8

54.4

87.5

71.0

61.0

90.7

76.4

68.4

0

10

20

30

40

50

60

70

80

90

100

20062007

20092008

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12

Russian Series

4% (10%)

Russian and

Foreign Movies

42% (52%)

Foreign Series

and Animation

31% (83%)

Russian Shows

12% (14%)

Russian Sitcoms

and Sketchcoms

12% (16%)

Foreign Series

30% (9%)

Russian Series &

Sitcoms

14% (13%)

Russian Shows

19% (64%)Russian and

Foreign Movies

38% (14%)

Foreign Series

and Animation

40% (20%)

Russian &

Foreign

Movies

38% (14%)

Russian Series

& Sketchcoms

13% (19%)

Russian

Shows

19% (64%)

12

Programming Strategy

Domashny Network1

DTV Network1

CTC Network1

Maximizing the audience share numbers in desirable demographics

through well-balanced content acquisition and scheduling strategy

Locally produced content is the key

element of our strategic programming

grids and drive the audience share in

target demographics

In-house produced series and sitcoms are

top CTC prime-time performers and are

the core of our content library

¼ of CTC Media’s programming and ½ of

CTC prime time is produced in-house2

Programming agreements with major

Hollywood studios - Sony Pictures

Television International, Walt Disney,

Paramount, Universal and Warner Bros.

Optimal mix of programming

Notes: (1) Content split is given for Q1 2010

(2) As a % in amortization of programming rights, Q1 2010

Content split by hours and by % in amortization of programming rights expense

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33.4

11.012.7

5.5 6.6

3.0 2.34.3

2.81.3 1.0 1.2

11.510.4 9.7

6.54.9

32

3.51.9 1.2 0.8 1.1

10.5

34.1

Channel

One Eurasia

KTK Channel 31 NTK Kazakhstan El

Arna/Khabar

Khabar NTV (Alma

TV)

Astana Rakhat Tan HIT TV Mir

13

Kazakhstan:

Audience Shares, %

(all 6-54 demographic)

Channel 31 Audience Share Dynamics

All 6+ demographic

Target demographic All 6-54

Audience Share Dynamics

Channel 31 is one of the leading broadcasters in Kazakhstan

Source: TNS Gallup Asia

Q1 2009

Q1 201012.7

11.6

10.411.2

10.29.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Q1 09 FY 09 Q1 10

1414

Further consolidation of our position as Russia’s leading independent free-to-air TV broadcaster

Further development of the DTV and Domashny channels, sustainable position of CTC channel

Monetize strong CTC, DTV and Domashny brands

Opportunistic approach to acquisitions and start-up projects in neighboring CIS markets

Establish international presence through developing selected CTC Media programs based on existing content for selective international markets

Core strategy

Drivers

Increase technical penetration of DTV and Domashny channels

Sustain CTC’s target audience share, increase Domashny’s and DTV’s target audience shares

Attract younger audiences to Domashny and DTV

Integrate Russian networks to drive combined power ratio and sustain sound level of overall market share

Expand and improve online presence of free-to-air channels in Russia

Maintain focus on pure entertainment programming and complementary audience profiles

Exert greater control over programming quality and investments through in-house content production

Develop existing CIS operations

Selectively expand into neighboring CIS markets to ensure growth participation

Maximize cash flows

Use strong balance sheet to capitalize on investment opportunities and enhance shareholder returns

Key Strategic Objectives

Clear and focused strategy

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15

Markets of Operations and Primary Strategic Interest

Ukraine

Population = 45.7 million

2009 TV Ad Market = US$ 252 million

Moldova


2009 TV Ad Market = US$ 17.2 million

Russia

Population = 142 million

2009 TV Ad Market = US$ 3.6 billion

Uzbekistan


2008 TV Ad Market = US$ 15 million*

Kazakhstan


2009 TV Ad Market = US$ 95 million

Belarus


2009TV Ad Market = US$ 60 million

Sources: Video International, Russian Association of Communications Agencies, Zenith Optimedia, CIA World Factbook, Rosstat, All-Ukrainian Advertising Coalition, Company’s estimates

* 2009 data is not available

Potentially reaching over 180 million viewers in four countries of current operations

Counties of current operations

Countries of potential interest

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1616

Financial Highlights

104.8

180.5

123.2

99.1

172.6

0

50

100

150

200

Q1 2009 Q4 2009 Q 1 2010

18%

Group Total Operating Revenues

Total Operating Revenues

Advertising Revenues

Recovery of Russian TV ad. Market

Growing audience shares and their

efficient monetization

High blended power ratio

Favorable currency exchange rate

movements

14% positive impact of the exchange rate

between the US dollar and the Russian

ruble on Russian ad sales in Q1 2010

CTC Media’s total operating revenues up

18% to $123.2 million

The increase reflects :

US$ mln

18%

Total revenues up 18% y-o-y in Q1

17

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39.2

87.4

39.7

0

20

40

60

80

100

Q1 2009 Q4 2009 Q 1 2010

32.2%48.4%37.4%

23.3

64.5

25.2

0

50

100

150

200

Q1 2009 Q4 2009 Q 1 2010

20.5%35.7%22.2%

OIBDA up 1% year on year to $39.7 million

OIBDA margin: 32.2%

Fully diluted EPS up 7% to $0.16

Group OIBDA and Net Income

Group Net Income

Group OIBDA

US$ mln

US$ mln

Note: (1) Adjusted results exclude $232.7 million charge arising from the impairment of the intangible assets of DTV Group in Russia, Channel 31 in Kazakhstan and a broadcasting group in Moldova in the Q4 2008; an $18.7 million

charge arising from the impairment of the broadcasting licenses in Russia in Q4 2009; and a $28.6 million stock-based compensation expense recognized in conjunction with the previously announced settlement by CTC Media of

litigation brought by it against its former CEO and Board in Q4 2009. See reconciliations on pages 29-30

1%

8%

BOD approved second $0.065 per share cash dividend installment to be paid on June 30, 2010

18

Adjusted1

Adjusted1

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Corporate Office

-28%

Production Group

-1%

CIS Group

-2%

DTV TV Station Group

-1%

Domashny TV Station

Group

1%

CTC TV Station Group

20%

DTV Netw ork

2%Domashny Netw ork

8%

CTC Netw ork

100%

CTC Netw ork

67%

Domashny Netw ork

11%

DTV Netw ork

8%


10%

Domashny TV Station

Group

1%


1%

CIS Group

2% Eliminations and

other

-12.7%

CTC Netw ork

67%

Domashny Netw ork

10%

DTV Netw ork

8%


10%

Domashny TV Station

Group

2%


1%

CIS Group

2%

CTC Netw ork

88%Domashny

Netw ork

9%

DTV Netw ork

11%

CTC TV Station

Group

15%

Domashny TV

Station Group

1%

DTV TV Station

Group

-1%

CIS Group

-3%

Production Group

1%

Corporate Office

-20%

Eliminations and

other

-20%

19

Note: (1) intersegment transactions are included in eliminations.

Total Operating

Revenue¹

Total OIBDA1

Q1 2009 Q1 2010

Diversification of business and decrease of dependence on CTC Channel

Total Revenue

$123.2 mln

Total Revenue

$104.8 mln

Total OIBDA

$39.2 mln

Q1 2009 Q1 2010

Total OIBDA

$39.7 mln

Q1 2010 Revenue and OIBDA Contribution by Segment


Direct operating

expenses

$12.5 m

14%

SG&A expenses

$20.3 m

23%

Amortization of

programming rights

$49.5 m

57%

Amortization of

sublicensing rights and

own production cost

$1.4 m

2%

Depreciation &

amortization

$3.4 m

4%

Direct operating

expenses

$7.3 m

11%

SG&A expenses

$18.3 m

27%

Amortization of

programming rights

$36.9 m

54%

Amortization of

sublicensing rights

and own production

cost

$3.1 m

4%

Depreciation &

amortization

$2.6 m

4%

20

Q1 2010 Operating Expenses

In Q12010 CTC Media’s total operating expenses

increased by 27% year-on-year in US dollar

terms due to:

Q1 2009

Total OpEx

$68.2 mln

Total OpEx

$86.9 mln

Q1 2010

OpEx increases in line with CTC Media development strategy

Increased investments in programming (resulted

in healthy audience share gains)

and network coverage

Foreign currency movements

14% positive impact of the exchange rate

between the US dollar and the Russian ruble

on Russian ad sales in Q1 2010 (2/3 of OpEx

are ruble denominated)


21

CIS Group Financials

CIS Group contributed $2.3 million or 1.9% of CTC

Media’s total operating revenues in Q1 2010

Channel 31 Group in Kazakhstan contributed a

majority of the segment revenues

Note: (1) CIS Group results include intercompany results that are eliminated level in consolidation at CTC Media Group level

CIS Group contributed 1.9% to CTC Media’s total operating revenues in Q1 2010

(US$, million) Q1 2009 Q1 2010

REVENUES 2.0 2.3

OIBDA (1.1) (0.7)

OIBDA margin % -55.8% -32.6%

CIS Group1

Balance Sheet and Cash Flow Highlights

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

Notes: (1) Working capital = current assets - current liabilities

(2) Net cash position = cash and cash equivalents + short-term investments – total debt

(3) Free cash flow = cash flow from operating activities - acquisitions of property and equipment - acquisitions of intangibles

Strong cash position and no debt

22

(US$ mln)

As of December

31, 2009

As of March

31, 2010

Cash and cash equivalents 84.4 25.9

Short-term investments 39.1 50.2

Total assets (incl cash), 851.3 846.5

Including Goodwill 226.1 232.9

Broadcasting licenses 159.0 163.6

Working capital1

134.9 158.6

Total debt 28.3 -

Stockholders’ equity 663.8 706.2

Net cash position2

95.2 76.2

The three

months ended

March 31, 2009

The three

months ended

March 31, 2010

(US$ mln)

Cash at beginning of period 98.1 84.4

Net cash provided by operating activities, including 27.8 5.1

Acquisition of progr. and sublic. rights (34.7) (63.5)

Net cash used in investing activities (13.0) (26.4)

Net cash used in financing activities 0 (38.4)

Effect of exchange rate changes on cash (3.6) 1.2

Cash at end of period 109.3 25.9

Cash used for acqusitions (12.1) (12.8)

(Acquisitions of businesses, net of cash acquired)

CapEx (1) (4.4)

CapEx as % of Total Revenue 0.0% 3.6%

Free cash flow3

23.4 5.1


2323

To conclude…

A leading independent media company in Russia and the CIS

Most transparent Russian company according to Standard & Poor’s1

The only direct way to get exposure to Russia’s TV advertising market

Well-positioned channel brands with growing audience and market shares

Benefiting from dominance of TV as only national reach media

Majority of client base in consumer goods sector with both large multi-

national and local advertisers

Operating advantage due to in-house content production businesses

Focus on cost control and profit maximization with strong balance sheet

(1) CTC Media scored #1 in Standard & Poor’s Transparency and Disclosure by Russian Companies Study in 2008 and #2 in 2009

2424

Appendix

25

Source: U.S. SEC filings, as of March 31, 2010

Backed by strong strategic shareholders

CTC Media Shareholder Structure

39% stake in CTC Media

Shareholder of CTC Media since 2002

Headquartered in Stockholm, Modern Times Group is a leading international entertainment broadcastinggroup with the second largest geographical broadcast footprint in Europe

MTG’s TV assets are broadcast in a total of 30 countries and have 125 million viewers

The company’s shares are listed on Nasdaq OMX Stockholm's Large Cap market

26% stake in CTC Media

Shareholder of CTC Media since 2003

Founded in 1989 and headquartered in Moscow, Alfa Group Consortium is one of Russia’s largest privatelyowned financial-industrial conglomerates

Alfa Group is focused on value-oriented, longer-term opportunities, primarily in Russia and the CIS

35% free float

IPO on NASDAQ in June 2006

In July 2007 CTC Media qualified for the premier NASDAQ Global Select Market as the result of meetingNASDAQ's most stringent listing standards

Major shareholders:

26

Reconciliation of Non-GAAP Measures

Reconciliation of consolidated adjusted OIBDA and other adjusted financial measures to consolidated OIBDA and other

corresponding GAAP financial measures

Operating Intersegment Operating Capital Depreciation Amortization Amortizationrevenue revenue income/ and of of

from (loss) amortization programmin sublicensingexternal rights rights

customers

CTC Network $70,555 $783 $34,302 ($64) ($131) ($28,492) ($3,393) $34,433

Domashny Network 10,567 3 3,383 (6) (113) (4,891) — 3,496

DTV Network 8,667 — 3,721 (297) (592) (2,488) — 4,313

CTC Television Station Group 10,254 277 5,270 (274) (415) (822) — 5,685

Domashny Television Station Group 1,739 294 77 (52) (311) (5) — 388

DTV Television Station Group 774 28 (1,193) - (720) (1) — (473)

CIS Group 2,044 — (1,362) (161) (222) (1,533) — (1,140)

Production Group 178 5,878 263 — (12) — (4,890) 275

Corporate Office - - (7,856) (11) (65) - - (7,791)

Business segment results $104,778 $7,263 $36,605 ($865) ($2,581) ($38,232) ($8,283) $39,186

Eliminations and other - ($7,263) ($22) $9 - $1,349 $5,221 ($22)

Consolidated results $104,778 - $36,583 ($856) ($2,581) ($36,883) ($3,062) $39,164

Three months ended March 31, 2009

OIBDA

Operating Intersegment Operating Capital Depreciation Amortization Amortizationrevenue revenue income/ and of of

from (loss) amortization programmin sublicensingexternal rights rights

customers

CTC Network $82,639 $620 $39,483 ($574) ($285) ($36,602) ($1,065) $39,768

Domashny Network 13,431 51 2,811 (154) (207) (6,822) — 3,018

DTV Network 9,885 10 283 (1,688) (692) (6,031) (203) 975

CTC Television Station Group 12,128 383 7,333 (1,068) (574) (77) - 7,907

Domashny Television Station Group 1,681 510 1 (608) (371) (1) - 372

DTV Television Station Group 674 9 (1,460) (1) (971) - — (489)

CIS Group 2,217 68 (895) (261) (151) (1,565) - (744)

Production Group 442 7,175 (264) (18) (39) - (6,326) (225)

Corporate Office 427 (11,112) (33) (84) - - (11,028)

Business segment results $123,097 $9,253 $36,180 ($4,404) ($3,374) ($51,098) ($7,594) $39,554

Eliminations and other $103 ($9,253) $96 ($43) ($3) $1,637 $6,239 $99

Consolidated results $123,200 - $36,276 ($4,447) ($3,377) ($49,461) ($1,355) $39,653

Three months ended March 31, 2010

OIBDA

Three Months Ended December 31, 2009

(US$ 000’s) OIBDA

Depreciation

and

amortization

Operating

income

CTC Network 34,433$ (131)$ 34,302$

Domashny Network 3,496 (113) 3,383

DTV Network 4,313 (592) 3,721

CTC Television Station Group 5,685 (415) 5,270

Domashny Television Station Group 388 (311) 77

DTV Television Station Group (473) (720) (1,193)

CIS Group (1,140) (222) (1,362)

Production Group 275 (12) 263

Corporate Office (7,791) (65) (7,856)

Business segment results 39,186$ (2,581)$ 36,605$

Eliminations and other (22) - (22)

Consolidated results 39,164$ (2,581)$ 36,583$

Three Months Ended March 31, 2010

(US$ 000’s) OIBDA

Depreciation

and

amortization

Operating

income

CTC Network 39,768$ (285)$ 39,483$

Domashny Network 3,018 (207) 2,811

DTV Network 975 (692) 283

CTC Television Station Group 7,907 (574) 7,333

Domashny Television Station Group 372 (371) 1

DTV Television Station Group (489) (971) (1,460)

CIS Group (744) (151) (895)

Production Group (225) (39) (264)

Corporate Office (11,028) (84) (11,112)

Business segment results 39,554$ (3,374)$ 36,180$

Eliminations and other 99 (3) 96

Consolidated results 39,653$ (3,377)$ 36,276$

27

Reconciliation of Non-GAAP Measures (continued)

Reconciliation of segment OIBDA to segment operating income

Reconciliation of consolidated OIBDA to consolidated

operating income

Reconciliation of consolidated OIBDA margin to

consolidated operating income margin

(US$ 000’s) 2009 2010

OIBDA $39,164 $39,653

Depreciation and amortization (exclusive

of amortization of programming rights and

sublicensing rights) (2,581) (3,377)

Operating income $36,583 $36,276

Three months ended

March 31,

2009 2010

OIBDA margin 37.4% 32.2%

Depreciation and amortization

(exclusive of amortization of

programming rights and sublicensing

rights) as a % of total operating

revenues -2.5% -2.7%

Operating income margin 34.9% 29.4%

March 31,

Three months ended

282828

Contact Information and Disclaimer

DISCLAIMER

The information contained in this presentation, including market data that are attributed to specific sources and have not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

The presentation is not an offer of securities for sale in the United States. Neither the presentation nor any copy of it may be taken or transmitted into or distributed in the United States of America or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the ―Securities Act‖).

This presentation is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.

Certain statements in this presentation that are not based on historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company's current expectations concerning future results and events. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CTC Media to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual future results to differ from those expressed by forward-looking statements include, among others, the company’s ability to deliver audience share, particularly in primetime, to its advertisers; changes in the size of the Russian television advertising market; free-to-air television remaining a significant advertising forum in Russia; the company’s reliance on a single television advertising sales house for substantially all of its revenues; and restrictions on foreign involvement in the Russian television business. These and other risks are described in the "Risk Factors" section of CTC Media's latest annual and quarterly filings with the SEC. Other unknown or unpredictable factors could have material adverse effects on CTC Media's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. You are cautioned not to place undue reliance on these forward-looking statements. CTC Media does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

For further information please visit www.ctcmedia.ru or contact:

Ekaterina Ostrova

Director, Investor Relations

Tel: +7 (495) 783 3650

E-mail: [email protected]
http://www.ctcmedia.ru/mailto:[email protected]