Investor Presentaiton

2 Delivering Strong Earnings Growth in the First Year Post IPO DETSKY MIR RETAIL CHAIN 1 2 3 4 5 Store openings Continuous expansion, exceeding initial openings guidance by 50% in 2017 Like-for-like² growth Affected by decelerating inflation and declining birth rates, yet still superior LFLs2 vs. all other listed Russian retailers • 1041 new Detsky Mir branded stores opened in 2017 Not less than 250 stores in the pipeline for 2018 - 2021 21.9% total revenue growth in 2017 7.2% LFL² sales growth in 2017 with 12.2% LFL² traffic growth Profitability Significant improvement due to further decreases in personnel³ and rental costs as % of sales Cash generation Continuously outstanding cash conversion metrics and free cash flow generation and decreasing leverage • Adj. EBITDA4 growth of 30% Record high Adj. EBITDA4 Margin of 11% Adj. net income growth of 44% Cash conversion 5 of 77% Adj.Net Debt / Adj. EBITDA4 of 1.0x despite attractive average dividend yield of 6.8% in 20177 Online Continued rapid growth in online sales 67% y-o-y online sales growth Share of online sales in total sales grew by >100bps y-o-y reaching c.5% 1 In 2017, Detsky Mir closed six stores as part of the Company's ongoing rationalisation programme 2 LfL growth includes only DM stores in Russia that have been in operations for at least 12 full calendar months 3 Excluding share-based compensation and cash bonuses under the LTI program 4 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 5 Calculated as (Adjusted EBITDA - Adjusted Capex) / Adjusted EBITDA 6 Adjusted Net debt is calculated as total borrowings less cash and cash equivalent / adjusted for the loan issued to CJSC "DM Finance" (Sistema's subsidiary) on 3 July 2013 7 Calculated as dividend per share paid in 2017 (based on total dividends paid in 2017 of RUB4,767m, shares outstanding of 738.6m) divided by average share price in 2017

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