Dear shareholders,

If we assessed our 2022 results as “good considering circumstances” then I can safely call the 2023 results good without any reservations. The Russian economy has demonstrated impressive flexibility and ability to adapt to harsh external pressures. During the year, we saw increased purchasing and business activity across all of our principal directions, which, coupled with our efforts to develop our product offerings, allowed us to achieve substantial growth across all key performance indicators. Without doubt, such a result would not have been possible without the energy, enthusiasm and high professionalism of the entire large team of the MTS Group.

I would like to say thank you to all the MTS Group team for their excellent work throughout the year.

However, now I would like to draw your attention to another aspect. The matter is that factual operating indicators give a very limited idea of what is happening with our Company, how our business is developing and what it is evolving into. Let me explain what I mean. 2023 was an anniversary year for us, MTS turned 30. Of course, at the beginning of this development path we faced some difficulties. However, for a long time we have been a sector-specific company and solved quite understandable industry-based problems faced by hundreds of telecom operators around the world. We gradually grew, introduced new technological solutions, scaled them to our huge telecommunications network, looked for new marketing mechanics, but we were still in an industry environment that we understood.

In 2014, we took the first step towards industry-based diversification by including the concept of “Differentiation” in our strategy, and in 2016 we made an important clarification by changing this concept to “Digital.” And it was from this moment that we took the path of mastering promising digital trends. That is, for ¾ of the time of its existence, MTS remained a sector-specific company — a telecom operator. Therefore, if you compare the business of MTS, as a telecommunications operator, even at its height, and the business of MTS in its current state, as a digital ecosystem, we will see a significant difference in the degree of market coverage, in the range of available competencies and technologies used, in the complexity of the management system, and in target audiences.

With these arguments, I want to lead you to the idea that, regardless of the current levels of key performance indicators, regardless of market conditions and stock exchange quotations, our shareholders are now the owners of the real value of the Company, the maximum value content in the entire history of its existence. And our potential in digital areas is only beginning to be revealed and translated into financial results and further into shareholder value.

By developing new digital trends in the mass and corporate segments, we are becoming an increasingly important and valuable target of the country’s economic system. We have a greater influence on the development of the business environment, establishing and strengthening business ties with companies from various sectors of the economy.

Our positioning as a technology company manifests itself not only in internal and external products, but also in the approach to company management, in the corporate culture, and in the image of MTS as an employer. In this regard, it should be noted that in 2023 we entered the group of best employers in Russia according to HeadHunter, RBC and Forbes.

Speaking about the management quality, it should be noted that we maintain financial stability and a comfortable level of debt burden. In 2023, we received the maximum credit rating AAA.ru according to NCR, Expert RA and ACRA.

Also in 2023, we received the highest non-financial (ESG) reporting rating and the highest sustainability rating according to AK&M.

Over the past few years, we have developed deep expertise in the field of corporate governance, as a result of which we currently have one of the best compliance systems in Russia. Our intention is to continue to work in accordance with the best global practices of corporate governance. We will comply with them in all product areas, in all companies of the MTS Group.

Yours sincerely,
Chairman of the Board of Directors of MTS