Rostelekom Adr Regulatory News (RKMD)

Rostelecom releases Special Report on 5G potential to transform Russian economy

Moscow, Russia - August 10, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces the release of a research paper "Global Trends, Potential 5G Development and Use Scenarios across Sectors". This is the first market study into opportunities of mobile 5G networks integration and its contribution to real economy in Russia.

Key takeaways:

The research looks at 44 new digital services expected to have significant impact on traditional sectors, business processes, operational and monetisation mechanisms within. The analysis includes insights on consumer perspectives on 5G and growth factors driven by potential demands and integration opportunities.

Mikhail Oseevsky, CEO & President of Rostelecom, commented: "This white paper is an important step for Russia - an actionable call for leading industries to join their efforts in order to create new 5G-basedbusiness models, which can accelerate economic growth and ensure its sustainability in a rapidly changing world. We tried to portray the future which will become a reality with the potential wider application of 5G in Russia across various sectors and businesses.

Today, the emergence of 5G technologies and networks in countries that have started to roll them out, is leading to creation of brand-new digital marketplaces. What should drive next generation technologies is stronger integration and partnerships among operators, digital developers, hardware manufacturers and consumers. We hope that this new study will become a useful guidance for companies operating in various sectors and will shed light on hidden opportunities that drive growth. As the largest integrated digital service provider in Russia, we believe that we are well-positioned to become a trusted 5G advisor to our clients".

The research explored over 120 global digital transformation cases across the globe, carefully selected to ensure a representation of ground-breaking projects based on their investibility, commercial potential and tangible operational and financial results they helped achieve with the use of 5G.

Boris Glazkov, Vice-President for Strategic Initiatives, commented: "We looked at a number of sectors and the nature of 5G application within, as well as specific solutions that helped gain optimal efficiency and performance. This is a new reality which opens up tremendous opportunities with all the great things that come with 5G to boost creativity and leadership. As an ideal example of a general purpose technology, 5G is well placed as an enabler of cross sector collaboration and applications across industries. With the support programmes from Russian development institutions which will start this year, the scale and pace of 5G networks rollout in Russia will accelerate economic benefits for all market players. We hope that this research will help operators and innovative companies navigate through ideas and solutions which will soon become important drivers of economic and business growth".

Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.

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Rostelecom is the largest integrated digital services and products provider, operating in all segments of the telecommunications market in Russia. The Company serves millions of households, state and private enterprises across the country.

Rostelecom is Russia's undisputed market leader, providing high-speed Internet access and pay-TV. The total number of broadband users stands at over 13.4 mln users, it has more than 10.7 mln pay-TV customers, over 5.8 mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a Rostelecom subsidiary, is a major player in the mobile market with over 44 mln subscribers and the industry-leading NPS, a customer satisfaction benchmark.

During the first six months of 2020, the Group generated RUB 248.9 bln of revenues, RUB 95.9 bln of OIBDA (38.5% of revenue) and RUB 15.4 bln of net income.

The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.

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, and AA(RU) by ACRA.

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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:

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

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. The Company 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.