1

Financial results for Q2 2013 Ali Agan, Chief Executive Officer

Baurzhan Ayazbaev, Chief Financial Officer

Kaspars Kukelis, Marketing Director

Irina Shol, Investor Relations

* excluding non-recurring items

2

• Revenue KZT 46,271m (44,383)

– Increase of 4.3% relative to Q2 2012

• EBITDA* KZT 25,508m (25,064)

– Increase of 1.8% relative to Q2 2012

• EBITDA margin* 55.1% (56.5)

– Continuous focus on cost efficiency

• Net income KZT 15,551 (16,100)

– Decrease of 3.4%

• Subscribers 14.1m (13.8)

– Increase by 300K relative to Q1 2013

Continue to maintain strong leadership position

Key highlights Q2 2013

• Superior profitability in a challenging

environment

• Strong leadership position

• Strategic emphasis on the development

of data services - important growth

driver

3

Market update

4

MMO

• Ongoing price competition with Beeline

and Tele2

• Regulatory pressure on end-user tariffs

• LTE roll-out by Altel

• Maintain strong leadership position

• Drive data consumption, penetration and 3G devices

• Profitability and cash flow generation including cost saving initiatives

• Cultural transformation

Focus areas

The subscriber base is growing

5

MMO

• Healthy growth in new subscribers, despite continued price competition

Subscribers Net adds and churn rate

324 518

995

776

311 303

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

200

400

600

800

1,000

1,200

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Net subscriber additions Churn rate (%)

9,635 10,068 11,001 11,721 12,067 12,324

1,539 1,623 1,685

1,741 1,706 1,752 11,174

11,691 12,686

13,462 13,773 14,076

0

3,000

6,000

9,000

12,000

15,000

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Other subscribers Pre-paid subscribers

000s 000s

High growth in data

6

Total revenues Data revenues

4.1 4.2 4.7

5.7 5.7 5.9

–

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

1

2

3

4

5

6

7

8

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Data services

% of total revenues

41.4 44.4 47.3 48.9 43.1 46.3

0

10

20

30

40

50

60

Q1 2012 Q2 2012 Q3 2012 Q4 20122 Q1 2013 Q2 2013

KZT in bn KZT in bn +39.7% +4.3%

The business is driven by voice while data is

growing fast

7

Revenue split Q2 2013

78.1%

12.8%

9.0%

0.1% Voice

Data

VAS

Other

Revenue split Q2 2012

81.8%

9.6%

7.7%

0.9% Voice

Data

VAS

Other

Voice revenues

8

Minutes of Usage (MOU) ARPU

160

176 175

162

149 156

135

140

145

150

155

160

165

170

175

180

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

1,222 1,277 1,282 1,228 1,043 1,097

0

200

400

600

800

1,000

1,200

1,400

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Total traffic & ARMU

4,855 5,478 5,786 5,783 5,524 5,959

4.20

4.40

4.60

4.80

5.00

5.20

5.40

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Traffic mln minutes ARMU

KZT

KZT

9

Financial highlights Q2 and H1 2013

KZT in millions, except per share data, number of shares and changes

Q2 2013

Q2 2012

Chg (%)

6m 2013

6m 2012

Chg (%)

Revenues 46,271 44,383 4.3 89,324 85,780 4.1

EBITDA* 25,508 25,064 1.8 49,237 48,518 1.5

EBITDA margin (%) 55.1 56.5 55.1 56.6

Operating income* 19,748 19,572 0.9 37,704 37,162 1.5

Net income 15,551 16,100 -3.4 29,207 29,425 -0.7

Earnings per share (KZT) 77.76 80.50 -3.4 146.04 147.12 -0.7

Free cash flow 26,581 10,216 37,607 25,443

*excluding non-recurring items

EBITDA continues to grow, margin remains stable

10

* Excluding non-recurring items

• EBITDA increased by 1.8 % relative to Q2 2012

• The EBITDA margin remained above 55 % due to our continuous focus on costs

SEK

EBITDA development

23.5 25.1

26.7 26.3 23.7

25.5

56.7%

56.5% 56.3%

53.6%

55.1%

55.1%

20.0%

30.0%

40.0%

50.0%

60.0%

0

5

10

15

20

25

30

35

Q1 2012 Q2 2012 Q3 2012 Q4 20122 Q1 2013 Q2 2013

% margin

KZT in bn

Capex program

CAPEX-to-sales ratio

11

18.7%

15.0% 14.7%

27.2%

12.8%

0%

5%

10%

15%

20%

25%

FY10 FY11 FY12 Q2-12 Q2-2013

18.7%

15.0% 14.7% 12.8%

27.2% • 3G roll-out remains core

• Quality in network is the main focus

• Strong focus on efficiency

Robust capital structure

12

MMO

KZT in millions Dec 31, 2012 Jun 30, 2013

Cash and equivalents 3,075 2,080

Gross financial debt 48,991 50,992

Reported net debt / (cash) 45,916 48,912

LTM EBITDA 101,426 102,000

Implied net debt / EBITDA 0.46x 0.48x

Implied net debt / book value of equity 0.69x 0.78x

Dividends declared but unpaid 8,000 -

Adjusted net debt / (cash) 53,916 48,912

Implied Adj. net debt / LTM EBITDA 0.53x 0.48x

Implied Adj. Net Debt / Book value of equity 0.81x 0.78x

• Target leverage ratio (net debt / EBITDA) of 0.5-0.9x

• Net debt / EBITDA (as of June 30, 2013) was 0.48x

Free Cash Flow Q2 2013 vs. Q2 2012

13

Free cash flow Q2 2013 vs. Q2 2012

Q2 2012 CF before changein WC

WC Cash Capex Q2 2013

26. 5

10.2

KZT billion

+7.8

+1.7

+6.8

Regulatory developments

14

MMO

• Regulator imposed new threshold of

maximum prices

Specialized Inter-district Economic Court of Astana ruled

on April 17, 2013, to carry out an investigation

On April 16, 2013, the Company received MTC Order to

eliminate breaches of RK law on natural monopolies and

regulated markets, in which MTC refers to the violations

committed by the Company through its failure to fulfill the

requirements of the Reasoned Opinion

On June 12, 2013, the Specialized Inter-District Economic

Court of Astana granted the Company’s claim and invalidated

and cancelled the disputed documents

• MTR Regulation case

On June 13, 2013 Cassation Board of Astana court, having

considered the APC’s cassation appeal, cancelled the decision

of Appellate Judicial Panel for Civil and Administrative Cases of

April 9, 2013, and ruled the case in favor of APC. Kcell can

challenge the court decision to the Supreme court.

Q&A

I

it

Q&A

16

Income Statement

KZT in millions, except per share data, number of shares and changes

Q2 2013

Q2 2012

Chg (%)

6m

2013 6m

2012 Chg (%)

Revenues 46,271 44,383 4.3 89,324 85,780 4.1

Cost of sales -19,752 -18,767 5.2 -38,378 -36,905 4.0

Gross profit 26,519 25,616 3.5 50,946 48,875 4.2

Selling and marketing expenses -4,229 -3,855 9.7 -8,125 -7,221 12.5

General and administrative expenses -2,674 -1,617 65.4 -5,315 -5,104 4.1

Other operating income and expenses, net 132 18 198 167

Operating income 19,748 20,162 -2.1 37,704 36,717 2.7

Finance costs and other financial items, net -537 40 -1,149 79

Income after financial items 19,211 20,202 -4.9 36,555 36,796 -0.7

Income taxes -3,660 -4,102 -10.8 -7,348 -7.371 -0.3

Net income 15,551 16,100 -3.4 29,207 29,425 -0.7

Earnings per share (KZT), basic and diluted 77.76 80.50 146.04 147.12

17

Balance Sheet

KZT in millions Jun 30, 2012 Dec 31, 2012 Assets Intangible assets 14,370 16,140 Property, plant and equipment 111,191 110,337 Other non-current assets 2,761 3,121 Total non-current assets 128,322 129,598 Inventories 968 978 Trade and other receivables 11,045 15,990 Cash and cash equivalents 2,080 3,075 Total current assets 14,093 20,043 Total assets 142,415 149,641 Equity and liabilities Share capital 33,800 33,800 Retained earnings 29,208 32,403 Total equity attributable to owners of the parent 63,008 66,203 Deferred tax liabilities 5,699 5,104 Other long-term liabilities 988 988 Total non-current liabilities 6,687 6,092 Short-term borrowings 50,992 48,991 Trade payables, and other current liabilities 21,728 28,355 Total current liabilities 72,720 77,346 Total equity and liabilities 142,415 149,641

18

Statement of cashflows

KZT in millions Q2

2013 Q2

2012 6m

2013 6m

2012

Cash flow before change in working capital 22,323 20,614 42,539 39,939

Change in working capital 7,968 1,134 4,041 31

Cash flow from operating activities 30,291 21,748 46,580 39,970

Cash CAPEX -3,710 -11,532 -8,973 -14,527

Total cash flow from investing activities -3,710 -11,532 -8,973 -14,527

Cash flow before financing activities 26,581 10,216 37,607 25,443

Cash flow from financing activities -26,652 -13,717 -38,602 -25,933

Cash flow for the period -71 -3,501 -995 -490

Cash and cash equivalents, opening balance 2,151 4,364 3,075 1,353

Cash flow for the period -71 -3,501 -995 -490

Cash and cash equivalents, closing balance 2,080 863 2,080 863

Forward-looking statements

Statements made in this document relating to future status or

circumstances, including future performance and other trend

projections are forward-looking statements. By their nature,

forward-looking statements involve risk and uncertainty because

they relate to events and depend on circumstances that will

occur in the future. There can be no assurance that actual

results will not differ materially from those expressed or implied

by these forward-looking statements due to many factors,

many of which are outside the control of Kcell.