Investor Presentaiton

3 C Well-Defined Four-Pillar Growth Strategy (cont'd) DETSKY MIR RETAIL CHAIN Competitive Pricing and Effective Merchandising with Focus on Traffic Generating Categories Drive Strong LfL Revenue Growth and Growing Gross Profit per sqm Competitive Pricing Medium to medium-low prices traffic-generating categories Effective Marketing and Merchandising Innovative store concepts based on highly interactive formats Strong LfL Growth1 (%) 15.3% 14.6% 13.7% 4,8% 12.3% 7.2% ✓ Highly competitive pricing in 5,2% 8,3% 5,9% ✓ Focus on best-in-class customer experience 12,2% 10,0% 8,9% 5,0% 6,0% ✓ Powerful CRM driving marketing efforts -4,4% 2013 2014 2015 2016 2017 ■Number of Tickets LFL Average Ticket LFL Discounts and loyalty programmes Product Segment Gross Margin Traffic Generation Revenue Breakdown² (%) Growing Gross Profit per sqm³ 100 100 CAGR 2013-2017: 2.9% Newborns ✓ ✓ ✓ 20 20 33 33 48,6 49,7 45,5 38 Toys ✓ ✓ 32 Fashion 49,9 51,1 27 27 25 2013 2014 2015 2016 2017 ■Growing Gross Profit per sqm (RUB 000) Large items ✓ ✓ 15 10 and other 2013 2017 Source: Company Data 1LfL growth includes only DM stores in Russia that have been in operations for at least 12 full calendar months. Revenue of each store included in LfL comparison represents retail revenue of the store (incl. VAT, excluding plastic bags) for respective period but excludes store revenue for those months in which the store was not operating for 3 days or more. 2 Retail revenue only 3 Calculated by dividing gross profit for the period by average selling space for the period (calculated in thousands of square metres as simple average of selling space as of the beginning and as of the end of the period) 16

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