Investor Presentaiton

Net Trade Working Capital Overview Focus on Constant Improvement & Optimization of NWC1,2 (RUB m) 8 636 143 d. 24 796 17 346 5,5% 4,3% 11 124 3,2% 2,6% 173 d. 164 d. 1 457 144 d. 1 331 2 710 3 855 15 d. 11 d. 16 d. 18 d. 2013 152 d. (9 168) 2014 142 d. (10 993) 2015 158 d. (16 718) 176 d. DETSKY MIR RETAIL CHAIN 26 440 150 d. 4,4% 2 244 8 d. 139 d. (25 215) (24 387) 2016 2017 Inventories ■Increase in trade working capital in 2015 mainly driven by - Change of margin structure (shift from front to back thus higher retro-bonuses thus increased AR) Company has opened new DC, initial fill-up resulted in inventory level growth Increase in number of new stores also resulted in inventory level growth Source: Company data. Receivables Payables ■ Improvements in 2016 achieved via Improved logistics processes efficiency - Improved AR: retro-bonuses are calculated and received on a monthly basis instead of quarterly effective beginning of 2016 NWC as % of Revenue - ■ Improvements in 2017 achieved via Improved Inventories turnover on the back of optimization of current stock as well as purchases of new goods (positively affected gross margin) and additional promotions agreed with and compensated by suppliers ■Changes in Payables turnover due to an increase in imports and private label purchases (positive effect on gross margin) and better turnover of goods sold with "on being sold" payment condition Note: The Company'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 GAAP vs IFRS. 1 Net trade working capital calculated as Receivables + Inventories - Payables 2 Days of Inventories / Receivables / Payables turnover calculated as corresponding metric divided by COGS/Revenue / COGS multiplied by 365 for FY numbers. 30

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