CTC Media, Inc. Investor Presentation Q2 & H1 2014

Transformation from TV Broadcaster to Content Company

TRANSMEDIA

CTC-INTERNATIONAL (PAY-TV)

AD SALES

FREE-TO-AIR (CIS)

We Fully Capture the Value Chain by Being Integrated Content Company

BROADCASTING ( RUSSIA)

Free-to-air TV ad maket growth1

International version of CTC channel

Mobile, smart TV, second screen, transmedia projects

Ctc.ru, Domashniy.ru, Peretz.ru

Online video portal Videomore.ru

CTC – target audience All 10-45

Domashny – target audience Females 25-59

Peretz – target audience All 25-49

International version of PERETZ channel

Kazakhstan Channel 31

Moldova СTС Dixi

Internal advertising sales house Everest

CTC Love – target audience All 11-34

2

Transformation from TV Broadcaster to Content Company

Digital media revenue up 50% in RUB in H1 2014 and continues to grow

Launch of Russian TV series in the US on the HULU subscription service

Launch of the first e-commerce project by a TV company in Russia

Channels' websites became full scale platforms

New approach of monetization throw partnerships

Game and second screen are to be launched by the ned of the year

Launched in-house creative production center

Centralized content purchases to secure synergies, longer content life span and sharing among platforms

Centralized programming to avoid cannibalization

Further steps towards more local content

Prioritize content and synergies

Grow combined audience share

Expand digital offerings

Diversify revenue streams

1 2 3 4

Launch of CTC Love to cover a further, complementary audience segment

New Head of Domashny upgrades Channel’s content and programming

3

STRATEGIC GOAL: To become a leader in creation, management and distribution of content on all potentially monetizable platforms

Pillar 1: Prioritize content and synergies

4

► High TV penetration and reach can jumpstart digital and adjacent space development

► The more powerful the brand is, the greater are opportunities to monetize it on various platforms and markets

Adjacent space Digital

media space

Traditional media space

Brand and content creation

Marketing

Production

Communications Programming

Content acquisitions Centralization

of functions

► Centralization of functions ensures higher efficiency and provides potential for additional synergies

► Creation, production, integration and promotion of content for all platforms simultaneously

► Secure content safety - Sustainable supply of high quality content* - In-house creative producing center - Diversified network of content providers

► Full rights or an optimal set of rights required by CTC Media - Content library accumulation - Centralized content purchases to secure maximum

synergies, longer content life span and content sharing among all CTC Media platforms (TV channels and digital)

- Multi-platforms and trans-media - distribution across platforms and media

- Most effective monetization by CTCM in all markets and media

► Predictable pricing / controlled content inflation

* High quality content – content that can be effectively monetized across all platforms (TV, digital), territories and other media to get high OIBDA margin

Pillar 1: Strategic Goals with Respect to Content Production and Acquisition

5

Pillar 1: Approach to Deals with Major Studios and Locals

– Minimize off-prime movies in package deals – Prevent appreciation of costs – Obtain TV sublicensing rights for all CTC Media channels (content sharing) – Obtain IPTV/SVOD/AVOD rights and any other rights to monetize across media

(mobile streaming, Internet broadcasting, applications, etc.), if economically feasible/ positive OIBDA margin

6 6

First step: When acquiring content from majors we plan to

The next step: gradual movement towards local content

– Local series and movies are planned to partially replace Hollywood feature films

– Production of series/ TV movies for movie prime time slots – Via strategic partnerships with local movie producers (Art Pictures,

Bazelevs, EnjoyMovies, individual deals with producers) – Studio deals to be limited to small packages

Pillar 2: Grow Combined Audience Share

7

• Family-oriented channel with special appeal to women

• Retain audience share through:

• Focusing on prime time

• Developing long-term content brands

• Increasing the number of premium weekend show formats

• Transmedia projects trend setter

Brings the family together Bright, emotional and entertaining channel for women

• Growing audience share by becoming a more dynamic and modern channel

• Positioning the channel brand as ‘lifestyle’ to use for cross-media projects and merchandizing

• Strengthening of horizontal programming grid

• Increase of audience share in prime time with the most effective monetization

• Continuing rejuvenation of the channel: proportion W25-45 increased by 5pp in target demographic

Modern, dynamic, reality and action male-oriented channel

• Growing audience share by bringing programming offering in line with the well-regarded Peretz brand and marketing

• Launching 20 new shows in 2014

Brand-new CTC Media channel aimed at girls and young women

• New channel complementary to the Group’s brands family: Target audience “All 11-34”; core audience: “Women 18-25”

• Building extensively on the existing high-quality local and foreign content library

• Technical penetration increased up to 25% in Russia, >30% in Moscow and almost 40% in Saint Petersburg

• Started sales of CTC Love to TV advertisers and commit ~$1mln NEW

Pillar 3: Loyal Audience Growth through Cross-Platform Engagement

8

► TV Holding becomes Content company: Transmedia and multi-platform content

► Build core loyal audience

► Distribution and monetization on brand-

appropriate platforms

► Inventory growth driven by monetization opportunities

► Monetization diversification from premium sales to ad technology

► Unified authorization: personalized content,

recommendation service

Create, distribute and monetize content on all platforms to reach maximum audience

Pillar 3: Driving Value Growth through Broader Content Distribution and Monetization

9

We will get our audience used to watching our content across CTC Media platforms Organic audience growth => profit growth, not only inventory Inventory management

► Content distribution by revenue share model

► Monetization of our audience by

advertising model with all possible means

► New activities support (Second Screen, mobile, Smart TV)

► User payments and various partnership projects

Pillar 3: We are Wherever Our viewers Are

10

Special Projects

Successfully implemented a special project based on movies of MARVEL: project reach – over 5М individuals, 75,000 active participants of transmedia competition

The sketchcom #Students was premiered online – the current view count is over 1.3m and the project is still in progress. Mechanisms for large-scale online premiere have been developed in collaboration with partners (Odnoklassniki, Vkontakte 2, Caramba)

A test version of application SecondScreen- Molodezhka Apps - has been completed. A presentation for advertisers has been conducted. The launch of the application is planned simultaneously with the second season premier.

Partnerships

Odnoklassniki – our video is already available on the website in July 2014 Yandex – the partnership starts in Fall 2014, conditions have already been agreed upon Vkontakte – distribution of our video through the aggregator Pladform in August/September’14 Rambler&Co – a number of special projects are in development, launch – fall of 2014 Game Insight – all commercial terms are agreed upon, game development is in progress, launch–

September 2014

11

Pillar 3: Partnerships and Special Projects in Digital

Sublicensing 0.2%

Pillar 4: Diversify Revenue Streams

2004

Russian FTA Broadcasting

100%

H1 2014

Russian FTA Broadcasting

96%

71% 15%

10%

Digital Media 1.0%

Channel 31 2.3%

CTC-International 0.5%

12

Aim to increase

Combination of Growth, Profitability and Dividend Yield

GROWTH EFFICIENCY / PROFITABILITY

RETURN CASH TO SHAREHOLDERS

Operating in Europe’s third largest1

Forecast for Russian TV advertising market to grow up to 5% in 2014, CTC Media strive to outperform the market with its Russian advertising revenue

OIBDA margin of 32.5% in 2013, well above European TV broadcasters average High Group power ratio above 1.5x compared to rivals due to attractive audience profiles2

Strong cash flow generation and net cash position

Over 50% cash dividend payout More than 5% dividend yield in 2011, 2012 and 2013 Current dividend yield approximately 7%, the highest among European media companies

+ +

Source: (1) Zenith Optimedia, April 2014 estimates (2) Kommersant newspaper, 16 April 2013 (FY 2012 results). Power ratio = national TV ad revenue share / audience share in “all 4+” age group. Power ratio demonstrates relative effectiveness of audience monetization.

13

Macro and Market Update

Macroeconomic Update in Russia

15

CP Inflation, Retail Sales Dynamics and Real Disposable Income (RUB) 1

Ruble Depreciation 1

-8%

-4%

0%

4%

8%

12%

Jan

2013

Feb

2013

Mar

201

3

Apr 2

013

May

201

3

Jun

2013

Jul 2

013

Aug

2013

Sep

2013

Oct

201

3

Nov

201

3

Dec

2013

Jan

2014

Feb

2014

Mar

201

4

Apr 2

014

May

201

4

Jun

2014

CPI Inflation, % YoY Retail Sales growth, % YoY Real Disposable Income growth, % YoY

Real GDP Growth, % YoY 1

0%

1%

1%

2%

2%

3%

Q1 Q2 Q3 Q4

2013 2014E

25

30

35

40

Q1 Q2 Q3 Q4

2013 2014E

Sources: (1) Bloomberg

Macroeconomic environment is deteriorating

USA Japan China Brazil UK Germany Russia

US

$ bl

n Russian TV Ad Market Overview

Russian TV ad market was #7 in the world and #3 in Europe in 20131 and is expected to maintain its position by 2016

Free-to-air TV ad market growth1

RU

B b

ln

Sources: (1) Zenith Optimedia, as of April 2014, Company’s estimates Note: All TV Ad Markets figures are net of VAT

64.3

22.5

16.4 11.8

5.4 5.4 5.0

42

11795 109

129 140 152

96

257

186219

263298

328

2004 2008 2009 2010 2011 2012 2013TV Ad Market Total Ad Market

16

Ad spend as % of GDP¹ 1.4

1.7

0.9

1.2

0.90.9

0.8 0.70.6 0.6 0.6

1.6 1.6

1.0 1.01.0

0.80.7

0.5 0.5 0.50.4

Slo

veni

a

Bulg

aria

Aus

tria

US

A

Belg

ium UK

Ger

man

y

CE

E A

vera

ge

Rus

sia

Ukr

aine

Pola

nd

2008 2013

Russian TV ad market has potential for further development

TV is the only medium with truly national reach

Important social and cultural platform

More free-to-air networks than in other countries

High quality free-to-air content offering

TV Is the Most Attractive Advertising Medium in Russia

Ad spend in Russia by media segment1 (%)

FY 2012 cost per thousand in Russia (US$)²

FY 2012 TV cost per thousand (US$)²

Sources: (1) Russian Association of Communication Agencies, Video International (2) Initiative Media

2.0

4.1

16.4

19.8

29.1

Russia

Central & Eastern Europe

Asia Pacific

Western Europe

North America

2.0

3.9

5.8

5.6

6.3

TV

Radio

Internet

Newspapers

Magazines

43%

1%

31%

18%

6%

0.4%

48%

22%

11%12%

5%2%

48%

30%

6%10%

5%2%

TV Internet Press Outdoor Radio Other2004 2013 2018F

17

Stable Consumer Goods Client Base with Large Multi-National and Local Advertisers

Ad spending on CTC Media’s Russian channels by category

■ Vast majority of CTC Media’s Russian advertisers are basic consumer goods focused

■ CTC Media’s advertisers’ budgets split:

80% multinationals, 20% local companies

■ New clients in portfolio: 141 in H1 2014, compared to 121

for the same period last year

Notes: (*) National advertising sales for CTC, Domashny and Peretz Networks

(**) Total Russian advertising sales for CTC, Domashny and Peretz Channels

*

18

FY 2013 2Q 2013 2Q 20141 Food and beverages 26% 33% 31%2 Cosmetics and personal care products 19% 18% 17%3 Other goods 14% 11% 16%4 Pharmaceuticals and vitamins 16% 12% 11%5 Telecoms 7% 9% 8%6 Retail 4% 4% 6%7 Auto 4% 4% 4%8 Appliances 4% 4% 3%9 Detergents 4% 4% 2%10 Finance 2% 2% 1%

232226

246 243 243

222

249251

133142

134

188210

170 169

166

5 6 1323

39 47

5866

4537

46 51 44 40

42 41

2006 2007 2008 2009 2010 2011 2012 2013

TV

Radio

Internet

Other

Internet Is Growing Not at the Expense of TV Usage

Source: TNS Gallup Media, Russia

* Change in TNS Measurement panel in 2012 increase proportion of 2+ Tv-sets per household

TV Usage (Minutes per day, All 16+)

Min

utes

per

day

*

But in “All 10-45” demographic TV viewership was down 4%

19

Fragmentation is Inevitable Trend on Developing Market

Audience shares, all 10-45 demographic

Top 3 state-controlled channels

1st tier channels

2nd tier channels

Notes: top 3 state-controlled channels: Channel One, Rossiya 1, NTV; 1st tier channels: CTC, TNT, Ren-TV;

2nd tier channels: TV-3, Domashny, Peretz, Rossiya K, Channel 5, Rossiya 2, Euronews, Zvezda, Pyatniza, Rossiya 24, Ю, 2x2, TV Center, Disney, RU TV

Non-FTA and regional channels

20

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014

TV viewers’ attention in H1 was captured by massive Ukrainian news flow, domestic Olympic Games and World Cup

Operating Update

We Are the Largest Independent FTA-Broadcaster in Russia with Premium Audiences

Combined audience shares, % (all 10-45 demographic)

22

27.4

15.5

12.8 12.09.5

4.3

Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding

H1 2013

26.7

14.5 14.512.5

8.3

3.6

Gazprom-Media СTС Media VGTRK (Rossiya) Channel One National Media Group UTV Russia Holding

H1 2014

12.012.5

11.4

8.8 8.9

5.24.3

2.9

0.9

2.31.4

2.2 2.61.9 1.8 1.6 1.4 1.5

0.8

18.6

12.512.1

10.5

8.98.1

4.43.9

3.1 2.6 2.4 2.0 2.0 2.0 2.0 1.8 1.6 1.5 1.40.6

19.7

ChannelOne

TNT CTC Russia 1 NTV Ren TV Channel 5 TV-3 Russia24

Russia 2Pyatniza *** Peretz Disney * Domashny TV Centr U ** Zvezda 2X2 RussiaK

Other

H1 2013

H1 2014

We Currently Deal with External Pressure on Entertainment Channels

Audience shares1, %

(all 10-45 demographic)

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 (**) Operated under Muz-TV brand before 1 September, 2012

2

(***) Operated under MTV brand before 1 June, 20123

23

News/sport events TV broadcasters demonstrated audience share growth vs. decline of entertainment channel shares

Audience Share Performance in H1 2014

Despite of the fact that:

TV viewers’ attention in H1 was captured by massive Ukrainian news flow, domestic Olympic Games and World Cup

We have tough comparison with H1 2013

Inventory was almost fully compensated by viewership increase which is monetized

24

Strengthening of horizontal programming grid

Increase of audience share in prime time with the most effective monetization

Continuing rejuvenation of the channel: proportion W25-45 increased by 5pp in target demographic

In July audience share reached 3.9% showing upward trend

Peretz was affected by extensive news flow about Ukraine with its reality and action positioning and male skewed audience

Launch of new programming in progress. The results will be seen in Fall

Recovery on its way: audience share in June – 2.1%; in July – 2.2%

11.6

10.211.4

10.5

Q2'13 Q2'14 1H'13 1H'14

3.53.3 3.3 3.2

Q2'13 Q2'14 1H'13 1H'14

2.3

1.9

2.4

2.1

Q2'13 Q2'14 1H'13 1H'14

Financial Update

We Continue to Deliver Strong Top and Bottom-line Growth

Notes: (*) OIBDA is defined as operating income before depreciation and amortization (exclusive of amortization of programming and sublicensing rights. OIBDA margin is defined as OIBDA divided by total operating revenues. Both OIBDA and OIBDA margin are non-GAAP financial measures (see reconciliations on page 48)

(**) 2008 OIBDA and OIBDA margin are adjusted to exclude a $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; 2009 OIBDA and OIBDA margin are adjusted to exclude an $18.7 million charge arising from the impairment of the broadcasting licenses in Russia 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; 2011 OIBDA and OIBDA margin are adjusted to exclude a $106.4 million charge arising from the impairment of several regional broadcasting licenses and the Peretz Network goodwill; 2011 OIBDA and OIBDA margin are adjusted to $82.5 million non-recurring charge arising from the impairment of analog broadcasting licenses; 2013 OIBDA and OIBDA margin are adjusted to $29 million charge arising from the impairment of the Company’s production unit in the fourth quarter 2013 (see reconciliations on page 46-47)

(***) Comparable-basis operating revenues are non-GAAP financial measures provided in order to facilitate period-to-period comparisons of CTC Media’s results following the implementation of the new model of advertising sales starting from 2011 (see reconciliations on page 48)

(****) Following companies are included in European peers average OIBDA margin calculations: CME, TVN, S.A. Modern Times Group, Antena3, ITV plc, Metropole Television, Mediaset, ProSiebenSat, Mediaset Espana, TF1

US

$ m

ln

US

$ m

ln

181

273

427

532

730

574

680

766805 832

2004 2005 2006 2007 2008** 2009** 2010 2011** 2012** 2013**

(Comparable-basis) total operating revenues***

71

104

174

220

280

211221

247256

271

39% 38%

41%

41% 38%37%

32% 32% 32% 33%

22%

26% 26% 27%

21%16% 21% 20% 16% 21%

2004 2005 2006 2007 2008** 2009** 2010 2011** 2012** 2013**

OIBDA* OIBDA margin*, % Peers average OIBDA margin****,%

26

Digitalization in Russia Is on Its Way

First multiplex Second multiplex

27

Multiplex Expenses*, RUBm

P&L, RUBm (net of VAT) 2014 2014-2019

Current ~185

Savings ~700

Cash, RUBm (net of VAT) 2014 2014-2019

Current ~575

Savings ~300

OPEX savings

>5000

CASH savings

>4000

* per CTC + Domashny in Multiplex, annualy Part of cash payments are capitalized as prepaid expenses; to be written off to PnL in 2019 and subsequent years

Significant cost optimization have been achieved as a result of active positioning of CTC Media. We consider this to be a huge achievement that will have a significant impact on current and future CTC Media Group financial performance in the long-term period

The rollout of second digital multiplex has been modified as follows: Instead of 100% infrastructure roll-out in 2015, beginning 2H 2014 RTRS launches broadcasting in cities with

population more than 50 thousand people in the second multiplex Over the period 2015-2018, RTRS constructs broadcasting infrastructure in cities with population less than 50

thousand people, but does not put this infrastructure into operation Starting from 2019 RTRS put into operations broadcasting units in cities with population less that 50 thousand

people.

H1 2014 Financial Highlights

28

401.3 370.6

108.4 101.4

27.0 % 27.4 %

H1 2013 H1 2014

Revenue OIBDA OIBDA Margin

Group Revenue* and OIBDA

284.5 265.1

H1 2013 H1 2014

H1 2014 Divisional Revenues ($m)

$m

59.5 56.0

H1 2013 H1 2014

41.9 35.9

H1 2013 H1 2014

10.9 8.5

H1 2013 H1 2014

CTC channel Domashny channel Peretz channel Channel 31

Group Net Income ($m)**

60.2 57.9

H1 2013 H1 2014

Group Expenses

309.7 283.8 Total operating expenses

*Negative exchange effect rate effect on revenue 11% in H1 2014 **Effective tax rate 31% in Q2 2014 (Q2 2013:36%)

$m

182.6 164.2

84.7 80.6

22.9 24.6

16.8 14.7

2.6 0.3

H1 2013 H1 2014

Stock-basedcompensarion

Depreciation &amortization

Direct operatingexpenses

Comparable-basisSG&A expenses

Programmingexpenses

H1 2014 Financial Highlights (cont’d)

29

Dividends

99 mln 109 mln

$0.63 per share

$0.70 per share

2013 2014

Free Cash Flow and Cash Position at YE($m)

47.0 47.8

142.4

190.3

6M 2013 6M 2014

Free Cash Flow * Net Cash at the End of Period **

Notes: (*) Free cash flow = cash flow from operating activities - acquisitions of property and equipment and intangible assets (**) Net cash position = cash and cash equivalents + short-term investments - total debt

September 2014 – quarterly payment of $0.175/share (~$27 mln total)

Russian total TV ad market Up to 5% growth in RUB terms

Russian TV ad revenues Aim to outperform the market

Total revenues Expect comparatively less growth in total revenue due to decrease in sublicensing revenue to Ukraine

Digital media revenues Up to 30% growth

Programming expenses Growing at lower rate than total revenues and at lower pace than in 2013

Multiplex expenses Up to 185 mln rubles

OIBDA margin Upgrade to approximately 30% including multiplex costs

Dividends $0.70 per share (~$109 million) in 2014, $0.175 per share (~ $27 million) to be paid in September

Capital expenditure Up to $10 million

Effective tax rate 30-35%

2014 Guidance

Commitment to creating long-term sustainable shareholder value

30

Appendix

From Private TV Network to Public Media Holding

1989 1994 2002 2005 2006 2008 2009 2010 2011 2012 2013 2014

CTC Media was founded as Story First Communications

Launch of CTC Network

Modern Times Group became a shareholder of CTC Media

Launch of Domashny Network

Initial Public Offering on NASDAQ

Acquisition of DTV (rebranded to Peretz in 2011) Acquisition of Channel 31 in Kazakhstan and a TV company in Moldova

Launch of CTC-international in Kazakhstan, Kyrgyzstan, Armenia, Georgia, Azerbaijan, Thailand and uplink to HOT BIRD CTC and Domashny received digital licenses

Launch of CTC-international in Germany, North America and the Baltics Telcrest Investments Limited acquired a 25% stake in СTС Media from Alfa Group Launch of Domashniy.ru women’s portal

Launch of CTC-international in USA

Launch of CTC-international in Israel Establishment of CTC Media’s internal advertising sales house ‘Everest Sales’ Launch of Videomore.ru online content portal

Development of in-house creative production center Launch of Peretz International in Belarus

Launch of CTC Love Channel on cable and satellite Launch of Peretz International in Kyrgystan Launch of Sweet me brand together with KupiVip Launch of Russian TV series in the US on the HULU subscription service

32

We Operate in Attractive Markets

Sources: Video International, Russian Association of Communications Agencies, ZenithOptimedia, CIA World Factbook, Rosstat, Russkiy Mir Foundation Note: (*) All TV Ad Markets figures are net of VAT

Kazakhstan Population = 17.1 million 2012 TV Ad Market = US$ 128.6 million* Russian-speaking population = 12.3 million

Kyrgyzstan Russian-speaking population = 3.6 million North America

Russian-speaking population = 3.5 million

Germany Russian-speaking population = 6 million

Russia Population = 143.7 million 2013 TV Ad Market = US$ 4.9 billion*

Israel Russian-speaking population = 1.5 million

Moldova Population = 3.6 million 2012 TV Ad Market = US$ 17.1 million*

Baltic states Russian-speaking population = 4 million

Since February 2012 CTC-International an is available on the HOT BIRDTM 8 satellite (W/E Europe, North Africa, Middle East and Central Asia coverage)

Thailand Russian-speaking tourists = 1.3 million (2012)

Armenia, Georgia, Azerbaijan Russian-speaking population=10.4 mln

Belarus Russian-speaking population = 7 million

33

Strong Management Team

Yuliana Slashcheva Chief Executive Officer • Joined CTC Media in 2013 • 20 years in high growth media

related businesses • Vast executive experience • Experience in creating and

managing digital development projects

Nikolay Surikov Chief Financial Officer • Joined CTC Media in 2012 • Almost 20 years experience in

finance • Previously with Ernst & Young,

VTB and MTS

Julia Moskvitina Chief Commercial Officer • Joined CTC Media in 1999 • 15 years experience in advertising

sales

Sergey Petrov Chief Broadcasting Officer • Joined CTC Media in 1995 • 20 years experience in TV industry

Viacheslav Murugov Chief Content Officer • Joined CTC Media in 2005 • Over 15 years in media industry • Acclaimed producer of numerous

award winning TV shows

Lilia Omasheva Chief of Operational Efficiency and Organizational Development • Joined CTC Media in 2013 • 10 years experience in advertising

industry

34

CTC Media Shareholder Structure

CTC Media, Inc.

Shareholder of CTC Media since 2002

Modern Times Group MTG AB

39%

Number of common shares outstanding (as of July 31, 2014)

Shareholder of CTC Media since 2011

Telcrest Investments Limited

25%

IPO on NASDAQ in June 2006

Free float

36%

155,762,166

Lorenzo Grabau Co-Chairman

Irina Gofman Director

Jørgen Madsen Lindemann Director

Board of Directors

Independent Directors

Angelo Codignoni Co-Chairman Alexander Pentya Director Timur Weinstein Director

Tamjid Basunia Director Werner Klatten Director Jean-Pierre Morel Director 35

12.611.9 11.6

8.4 8.6

5.34.3

0.9

2.9 2.5 2.11.6

2.61.8 2.1

1.7 1.81.5

0.7

18.6

12.812.0

10.2

8.57.7

4.1 4.13.4 3.1

2.1 2.1 2.0 1.9 1.8 1.8 1.6 1.6 1.5

0.6

20.2

TNT ChannelOne

CTC Russia 1 NTV Ren TV Channel 5 Russia24

TV-3 Russia 2 Domashny Pyatniza *** Disney * TV Centr Peretz 2X2 U ** Zvezda RussiaK

Other

Q2 2013

Q2 2014

Growing Audience Shares In “All 10-45” Most Commercially Attractive Demographic

Audience shares1, %

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels (*) Operated under Semerka brand before 31 December, 2011 (**) Operated under Muz-TV brand before 1 September, 2012

2

(***) Operated under MTV brand before 1 June, 20123

36

14.2

12.6 12.5

6.9 6.9

5.85.4

1.1

2.9 2.6 2.62.2 2.4

1.9 1.9 1.61.0 1.0 0.9

17.2

14.5

13.4

11.3

6.75.9 5.7

4.0 3.83.1

2.5 2.4 2.4 2.11.5 1.5 1.4

1.2 0.8 0.8

18.7

ChannelOne

Russia 1 NTV TNT CTC Channel 5 Ren TV Russia 24 TV Centr TV-3 Domashny Zvezda Russia 2 Disney * Peretz Russia K Pyatniza *** U ** 2X2 Other

Q2 2013

Q2 2014

Audience Shares In “All 4+” Demographic

(1) Source: TNS Russia, CTC Media’s Research Department (2) Includes audience shares of regional and non-FTA channels

Audience shares1, %

(*) Operated under Semerka brand before 31 December, 2011 (**) Operated under Muz-TV brand before 1 September, 2012

2

(***) Operated under MTV brand before 1 June, 20123

37

CTC Improves Its Target Audience Profile in Commercially Attractive Demographic

Sources: TNS Russia 38

Domashny Improves Affinity in Its Target Demographic

Sources: TNS Russia 39

Peretz Improves Audience Profile In Commercially Attractive Young Adults Demographics

Sources: TNS Russia 40

CTC Has a Strong Viewership Position

13.013.7 13.4

12.111.0 11.3

2008 2009 2010 2011 2012 2013

Audience share in all 10-45 demographic, % 41

1.5 1.7

2.42.8 2.8

3.2 3.23.6 3.5

2005 2006 2007 2008 2009 2010 2011 2012 2013

2.02.1 2.1

2.7

2.4

2009 2010 2011 2012 2013

24.7

12.6

15.9

10.1

5.6

8.4 7.9

3.51.8

17.6

13.7 13.3

10.88.9 8.3 7.8

5.54.7

3.1

Channel 1 Channel 31 KTK NTK Astana Channel 7 Kazakhstan RTRPlaneta (KZ) **

Habar Mir

Q2 2013Q2 2014

10.011.9

16.9

23.6

25.8

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Revenue OIBDA margin

Strong Market Positions in Kazakhstan

Channel 31, Kazakhstan (all 6-54 demographics)* Significant growth in Kazakhstan revenue and OIBDA margin

US$

mln

Source: (*) TNS Central Asia

** Measured since March 1, 2014

17.4% 21.8%

30.4%

16.2%

Power ratio up to 1.2x from 1.0x

31.0% 11.6% 11.2%

15.2% 14.7%13.2%

11%12%

14%

17%

18%

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Target audience share Market share

#2 among Top-10 Kazakh channels

42

Q2 and 6M 2014 Financial Highlights

43

2013 2014 in USD in RUB 2013 2014 in USD in RUBTotal operating revenues 206 015 184 312 -11% -1% 401 302 370 559 -8% 4%Total operating expenses (156,620) (145,692) -7% 3% (309,723) (283,800) -8% 3%OIBDA 57 753 45 440 -21% -12% 108 402 101 411 -6% 6%OIBDA margin 28.0% 24.7% 27.0% 27.4%Net income/(loss) attributable to CTC Media, Inc. stockholders 31 593 26 661 -16% -6% 60 181 57 877 -4% 10%

Diluted earnings per share $0.20 $0.17 -15% $0.38 $0.37 -3%

Six MonthsEnded June 30, Change

(US$ 000’s except per share data)

Three MonthsEnded June 31, Change

Consolidated Balance Sheet Highlights Consolidated Cash Flow Highlights

(US$ mln)As of December 31,

2013As of June 30,

2014

Cash and cash equivalents 30.6 43.3

Short-term investments 180.3 150.0

Total assets 971.0 941.6

including goodwill 135.3 131.7

including broadcasting licenses 59.7 50.7

including programming rights 294.0 288.1

Working capital1 311.9 290.0

Stockholders’ equity 734.1 715.1

Net cash position2 207.5 190.3

(US$ mln)Six months ended

June 30, 2013Six months ended

June 30, 2014

Cash at beginning of period 55.2 30.6

Net cash provided by operating activities 48.9 50.0

including acquisition of progr. and sublic. rights (196.2) (184.0)

Net cash used in investing activities (17.4) 20.7

including CapEx (1.9) (2.2)

including receipts from/(investments in) deposits (15.4) 22.9

Net cash used in financing activities (59.7) (58.5)

Cash at end of period 24.6 43.3

CapEx (1.9) (2.2)

CapEx as % of total revenue 0.5% 0.6%

Free cash flow3 47.0 47.8

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 and intangible assets

H1 2014 Operating Expenses Breakdown

as % of total operating expenses

as % of total operating revenues

$309.7 mln $283.8 mln $370.6 mln $401.3 mln

44

59% 58%46% 44%

27% 28%

21% 22%

7% 9%

6% 7%

1%

0%

1%

0%

5% 5%

4% 4%

H1 2013 H1 2014 H1 2013 H1 2014

Depreciation & amortization

Stock-based compensation

Direct operating expenses

SG&A expenses

Programming expenses

87%

65%

54%

88%

71%

61%

91%

76%

68%

94%

82%

73%

95%

85%80%

95%89%

84%

95%90%

85%

Consistent Growth in 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

Technical Penetration1, %

2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

45

FY 2013 Income Statement Highlights

2012 2013 in USD in RUBTotal operating revenues 804,946 832,103 3% 7%Total operating expenses (655,059) (624,404) -5% -2%Total operating expenses before non-recurring items (572,556) (594,535) 4% 7%

OIBDA 173,905 240,815 nm nmOIBDA margin 21.6% 28.9%Adjusted OIBDA 256,408 270,684 6% 10%Adjusted OIBDA margin 31.9% 32.5% 0.6ppNet income/(loss) attributable to CTC Media, Inc. stockholders 93,063 152,340 nm nm

Diluted earnings per share $0.59 $0.97 nmAdjusted Net income/(loss) attributable to CTC Media, Inc. stockholders

157,794 182,209 15% 19%

Adjusted Diluted earnings per share $1.00 $1.16 16%

Twelve MonthsEnded December 31, Change(US$ 000’s except per share data)

46

(US$ mln)As of December 31,

2012As of December 31,

2013

Cash and cash equivalents 55.2 30.6

Short-term investments 131.4 180.3

Total assets 985.6 971.0

including goodwill 178.0 135.3

including broadcasting licenses 82.3 59.7

including programming rights 255.3 294.0

Working capital1 298.3 311.9

Total debt (bank overdraft and loans) 13.2 3.4

Stockholders’ equity 762.9 734.1

Net cash position2173.4 207.5

(US$ mln)Twelve months

ended December 31, 2012

Twelve months ended December 31,

2013

Cash at beginning of period 12.3 55.2

Net cash provided by operating activities 157.7 186.6

including acquisition of progr. and sublic. rights (364.2) (378.0)

Net cash used in investing activities (26.5) (63.4)

including acquisition of businesses (4.0) (0.5)

including CapEx (15.6) (6.3)

including receipts from/(investments in) deposits (6.8) (56.6)

Net cash used in financing activities (88.9) (143.9)

Cash at end of period 55.2 30.6

CapEx (15.6) (6.3)

CapEx as % of total revenue 1.9% 0.8%

Free cash flow3 142.1 180.3

FY 2013 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 and intangible assets 47

36%33%

27% 27% 27%29%

32%

2007 2008 2009 2010 2011 2012 2013

High Levels of Cash Conversion and Return on Capital Employed

2007-2013 average ROCE: 30%

% of OIBDA Converted to Operating Cash Flow Return on Capital Employed*

Note: (*) ROCE excludes one-off non-cash asset impairment charges recognized in 2008, 2009, 2011, 2012 and 2013

US$

mln

158

186

133

186

116

158

187

72%66% 63%

84%

47%

62%69%

0 20 40 60 80

100 120 140 160 180 200

2007 2008 2009 2010 2011 2012 2013

Operating Cash Flow % of OIBDA converted

48

Reconciliation of Non-GAAP Measures

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

49

(US$ 000’s except per share data) OIBDA Total operating expenses

Operating income

Income before income tax and noncontrolling

interest

Income tax expense Net income

Fully diluted earnings per

share

Twelve Months Ended December 31, 2013Adjusted non-US GAAP results $270 684 ($594 535) $237 568 $251 365 ($61 335) $182 209 $1.16 Impact of impairment loss (29 869) (29 869) (29 869) (29 869) - (29 869) 0.19 Results as reported(under US GAAP, except for OIBDA which is a non-US GAAP financial measure) 152 340 $0.97 $240 815 (624 404) 207 699 221 496 (61 335)

(US$ 000’s except per share data) OIBDA Total operating expenses

Operating income

Income before income tax and noncontrolling

interest

Income tax expense Net income

Fully diluted earnings per

share

Twelve Months Ended December 31, 2012

Adjusted non-US GAAP results $256 408 ($572 556) $232 390 $247 192 ($82 645) $157 794 $1.00

Impact of impairment loss (82 503) (82 503) (82 503) (82 503) 17 772 (64 731) (0.41)

Results as reported(under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $173 905 ($655 059) $149 887 $164 689 ($64 873) $93 063 $0.59

Reconciliation of Non-GAAP Measures (continued)

Reconciliation of consolidated OIBDA margin to consolidated operating income margin

USD mln 2004 2005 2006 2007 2008 2009 2010Comparable-basis total operating revenues 180,639 273,352 427,091 532,143 729,629 574,107 680,418

Agency commission fees payable to Video International in connection with Russian advertising sales (excluding commissions for regional advertising sales to local clients)

(25,072) (35,875) (56,257) (60,087) (89,458) (67,994) (79,133)

Total operating revenues 155,567 237,477 370,834 472,056 640,171 506,113 601,285

Reconciliation of consolidated OIBDA to consolidated operating income

Reconciliation of comparable-basis, non-GAAP total operating revenues to total operating revenues

50

USD mln H1 2014 H1 2013 Q2 2014 Q2 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004Operating income (loss) 86 759 91 579 38 620 49 395 207 699 149 887 122 685 207 118 152 475 34 181 193 061 154 313 90 187 62 559

Add: depreciation and amortization 14 652 16 823 6 820 8 358 33 116 24 018 17 649 13 736 11 454 13 379 27 361 19 651 13 920 7 962

OIBDA 101 411 108 402 45 440 57 753 240 815 173 905 140 334 220 854 163 929 47 560 220 422 173 964 104 107 70 521

USD mln H1 2014 H1 2013 Q2 2014 Q2 2013 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004Operating margin 23.4% 22.8% 21.0% 23.9% 25.0% 18.6% 16.0% 34.4% 30.1% 5.3% 40.9% 41.6% 38.0% 40.2%Add: depreciation and amortization as percentage of revenue

4.0% 4.2% 3.7% 4.1% 4.0% 3.0% 2.3% 2.3% 2.3% 2.1% 5.8% 5.3% 5.8% 5.1%

OIBDA margin 27.4% 27.0% 24.7% 28.0% 28.9% 21.6% 18.3% 36.7% 32.4% 7.4% 46.7% 46.9% 43.8% 45.3%

Reconciliation of Non-GAAP Measures

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

(US$ 000’s except per share data) OIBDATotal

operating expenses

Operating income (loss)

Income (loss) before income tax and noncontrolling

interest

Income tax expense Net income (loss)

Fully diluted earnings per

share

Twelve months ended December 31, 2011Adjusted non-US GAAP results $246,716 ($537,293) $ 229,067 $ 243,301 ($83,342) $ 152,561 $ 0.97 Impact of impairment loss (106,382) (106,382) (106,382) (106,382) 6,939 (99,443) (0.63) Results as reported(under US GAAP, except for OIBDA which is a non-US GAAP financial measure) $ 0.34 $140,334 ($643,675) $ 122,685 $ 136,919 ($76,403) $ 53,118

Twelve months ended December 31, 2009Adjusted non-US GAAP results $87,382 ($96,460) $84,047 $87,585 ($20,759) $64,466 $0.41

Impact of non-cash intangible asset impairment charge (18,739) (18,739) (18,739) (18,739) 3,748 (14,991) (0.10)

Impact of Stock-based compensation expense related to settlement of litigation against former executive (28,588) (28,588) (28,588) (28,588) - (28,588) (0.18)

Results as reported (under US GAAP, except for OIBDA, which is a non-GAAP financial measure) $163,929 ($353,638) $152,475 $148,645 ($45,626) $100,389 $0.64

Twelve months ended December 31, 2008

Adjusted non-US GAAP results $280,241 ($94,636) $92,712 $74,266 ($1,653) $64,635 $1.11

Impact of non-cash impairment of intangible assets of DTV, Kz and Moldova (232,683) (232,683) (232,683) (232,683) 30,331 (153,679) (0.97) Results as reported

(under US GAAP, except for OIBDA) $28,678 ($89,044) $0.14 $47,558 ($327,319) ($139,971) ($158,417)

51

Contact Information and Disclaimer

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

Irina Faritova Head of Investor Relations E-mail: ir@ctcmedia.ru Tel: +7 (495) 981 0740

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 include, among others, Russian advertising market growth, roll-out of digital broadcasting in 2014 – 2019 and ability of RTRS to put into operation equipment for digital broadcasting, OPEX and cash 2015-2018 growth of Russian TV ad market by 2020 and etc. These 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, changes in the size of the Russian television advertising market; the roll-out of digital broadcasting in Russia; depreciation of the value of the Russian ruble compared to the US dollar; geopolitical events involving Russia and the other countries in which the Company operates, including any potential negative economic impact of such events; the Company’s ability to deliver audience share, particularly in primetime, to its advertisers; free-to-air television remaining a significant advertising forum in Russia; 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 annual report on Form 10-K filed with the SEC on March 6, 2014. 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.

52