Investor Presentaiton

3 Well-Defined Four-Pillar Growth Strategy (cont'd) D Focus on Execution Excellence to Achieve Superior Operating Margins Improvement of 330bps in Adj. EBITDA¹ margin since 2013 driven by: ✓ Store operation improvements Adjusted EBITDA¹ (RUBm) Optimization of IT platforms and personnel Reduction in Adj.SG&A³ as a % of revenue by over 820bps since 2013 Personnel per Store and Rent Costs Reductions CAGR 2013-2017: 40% 13,1% 12,8% 11,7% 26 24 10,3% 9,8% 4 463 2 771 22 20 18 2013 2014 2015 2016 2017 Personnel per Store 2 Rent & Utility Expenses as % of Revenue Adjusted SG&A Expenses as % of Revenue³ 31,0% 2013 28,2% 25,9% 23,7% 22,8% 2014 2015 2016 2017 2013 2014 Adjusted EBITDA Margin (%) 7,7% 6 185 DETSKY MIR RETAIL CHAIN 8 203 10 663 2015 2016 2017 11,0% 10,2% 10,3% 9,8% 2013 2014 2015 2017 2016 Source: The Group's consolidated financial statements for 2013 under US GAAP and 2014-2017 under IFRS. For the line items and the periods presented, there was no difference between the calculation of numbers or presentation under US GAAP and IFRS 1 Adj. EBITDA is calculated as profit for the year before income tax, FX gain/loss, gain on acquisition of controlling interest in associate, impairment of goodwill, net finance expense, D&A, adjusted for the one-off effect relating to disposal of the Yakimanka building in 2014, as well as share-based compensation and cash bonuses under the LTI program 2 Excluding personnel in headquarters 3 Adjusted SG&A expenses are calculated excluding Depreciation and Amortisation and additional bonus payments under the LTI program 17

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