Principles and strategy

Principles and strategy of sustainable development

MTS’ CSR activities are founded on the principles of socially re¬sponsible business practices, which are aimed at ensuring the sustainable development of the Company, growth in corporate prosperity and the formation of a competitive economy.

At the end of 2013, the MTS corporate strategy was overhauled, with increased emphasis placed on the development of the data component and formulation of the accompanying data strategy. Similar changes were introduced to the MTS’ CSR strategy with all of our CSR-related projects having had a pronounced data focus based on the three “D-s”:

Data: creation of the conditions needed for the search for, and embracing of, new business ideas, support for youth talent, and pursuit of public-awareness activities in terms of the safe and beneficial use of the Internet and mobile communications by children and adults.

Differentiation: integration into the broader public of federal programs aimed at the promotion of corporate volunteerism featuring the active involvement of all stakeholder groups, and programs designed to expand new digital services and improve communications quality.

Dividends: introduction of the best practices in the field of CSR, stan¬dardization of CSR processes for conformance with international require¬ments, creation of a transparent environment for shareholders and poten¬tial investors, and bolstering the corporate spirit and reputation of MTS.

MTS projects such as “Deti Online,” “Web for All Ages” and “Telecom Idea” now feature a significantly enhanced data component.

Responsible business practices

MTS is guided by the principle of responsible business practices. It observes professional standards and legal and ethical norms of doing business, develops a robust system of corporate governance, constantly strives to enhance the transparency of purchasing procedures and quality of information disclosure, and works to refine our existing system of anticorruption compliance. MTS also plans and pursues activities in such a way that they respond to emerging social changes, improve the overall social climate, alleviate social tensions and stimulate ongoing development of the domestic economy.

Responsibilities of a mobile operator

As the leading telecommunications provider in Russia, the CIS, and Eastern and Central Europe, MTS’ main responsibility is to provide all users with high quality, innovative and affordable products and communication infrastructure services.

Equal opportunities

We make a committed investment to the business of creating equal opportunities for all. We are committed to providing everyone with the same access to modern technology, innovative products and services so that everyone can realize his/her potential. One of the key features of MTS’ activities in this respect is the creation of the same conditions and opportunities for people living both in remote regions of the country and in large cities.

Innovation

We believe that it is possible to achieve our aim of improving the quality of peoples’ lives through the universal and wide-ranging introduction of innovative technologies, products and services. The spread of innovation and its use in everyday life engenders an innovative way of thinking, which, in turn, stimulates the development of society, encourages economic growth, allows countries and global societies to integrate and creates the successful society of the future.

Encouraging economic growth and a prosperous society

MTS’ growth strategy is based on significant investment in the development of the country’s telecommunication infrastructure. This is essential for key strategic products to be successful on a country-wide level.

As the largest mobile operator in Russia, the CIS, and Eastern and Central Europe, MTS strives to develop the advanced technological segment of the economy and to make the country more attractive for investors.

MTS supports government initiatives aimed at improving quality of life, increasing the prosperity of society and each of its citizens. We cooperate with the government to realize these initiatives.

Responsibility to the society at large

All of MTS’ local activities are based exclusively on the local legislation in force and the legal norms of the relevant governing bodies, health and safety standards and labor rights.

Long term investment

We understand that investment in social development is a long term investment. This activity not only encourages the development of society but also creates the conditions for the Company to enjoy stable growth.

Oriented towards results

One of the key principles of MTS with regard to social policy is its commitment to achievable and measurable results. As far as our Company is concerned, this means putting into practice our policy of meaningful social investment. Such investment always has a planned result and is aimed at solving the most pressing social problems, always keeping society’s best interests in mind.

Access to information

We recognize that an essential condition for our social policy to be realized effectively is to maintain constant dialogue with representatives of our partners and consumers. MTS is willing and interested in holding this dialogue. As a public company, we keep society informed about aspects of our business activities in accordance with the regulations of the Russian legislation and international standards of public companies.

One basic instrument we can use to keep society informed about our social activities is annual social responsibility reports. We plan to introduce this practice and our reports will be published on the Company’s website for public access.

MTS’ policy on social responsibility is based on a constant analysis of the current business processes of the Company and the extent to which they conform to our socially responsible principles. We plan and execute projects over and above the legally required minimum, and our aim is to increase the positive influence that MTS can have on society.

Our constant aim is to increase the effectiveness of our social policy. Therefore, we carefully study the best Russian and global practices in social responsibility, and remain open to cooperation with experts and investment organizations.

Contact investor relations:

+ 7 495 223 20 25 ir@mts.ru

MTS Investor Relations
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