Significant Events for the Reporting Year

February

TeliaSonera acquires 49% of Company shares from Kazakhtelecom JSC and becomes the majority shareholder with 86.9% of shares.

August

On August 27, the Company was incorporated as Kcell Joint Stock Company, in accordance with shareholders’ decision to reorganize GSM Kazakhstan OAO Kazakhtelecom LLP by converting to Kcell Joint Stock Company.

October

The first general meeting of Kcell shareholders was convened on October 17. A Board of Directors was elected and the Company’s Corporate Governance Code was approved.

In annual survey conducted by ESPI Rating on customer satisfaction with mobile operators in Kazakhstan, both corporate and private clients chose Kcell as the leader in terms of quality of customer care.

November

A new Board of Directors was formed for Kcell. Two of the six members, Jan Erik Rudberg and Bert Åke Stefan Nordberg, are independent directors. Jan Erik Rudberg was elected Chairman of the Board of Directors.

December

Kcell listed global depositary receipts (GDRs) on the London Stock Exchange and common shares on the KASE stock exchange. The placement price was set at U.S.$10.50 per GDR and KZT 1,578.68 per share, with each GDR representing one share. TeliaSonera sold 50 million shares during the placement, reducing its ownership to 61.9%.

TeliaSonera met the formal conditions to complete the acquisition of the WiMax operations of the Kazakh Company Alem Communications, from Midas Telecom, and an indirect minority investment in KazTransCom, through the purchase of shares from Alatau LLP. With the acquisition of a WiMax network in six cities by its parent company TeliaSonera, Kcell secures valuable frequencies in the 2.5/2.6 GHz band, which are essential for meeting increased demand for mobile data. The frequencies are compatible with mobile data transmission technologies such as 4G.



Subsequent Events

Key events in the first quarter of 2013:

January

Kcell shares were included in the official list for the calculation of KASE index starting February 1, 2013

February

Kcell Chief Executive Officer Veysel Aral was appointed President of the Eurasia division of TeliaSonera.

March

On March 13, 2013 the Board of Directors of Kcell JSC introduced a function of internal audit in Kcell JSC to perform control over financial and business activity of the Company.