Investor Presentaiton

2 Key Business Initiatives in 2017 DETSKY MIR RETAIL CHAIN Enhancement of the private label assortment in all categories Share of private labels has grown in each of the four sales categories ■ Share of private labels in the total sales increased from 24% to ~27% Focus on toys private labels supporting traffic and margins Share of private labels in revenue 2016 2017 Toys 8% 10% Mobicaro Diapers 1% 4% baby Gi Fashion 75% 79% ■ Successful introduction of the diapers private label BabyGo Baby Go Large items 33% 46% Other goods 22% 27% Tombi Direct imports sourcing for branded products Number of private labels in fashion category reaching 29 (incl, 4 brands launched in 2017) ■ Significant shift towards direct imports vs. purchases from distributors / intermediaries, incl. toys category Share of direct imports in toys grew from 1% in 2016 to 6% in 2017 ■ Positive impact on the profitability in line with the private label products Toys share of private labels and direct imports 16% 9% 10% 8% 6% 1% 2016 2017 ■Direct imports ■Private label Ongoing upgrade of the online platform and customer offering New Composite Customer Service Level KPI introduced for each delivery channel and call center, incl. - "Ideal Instore" initiative targeting 90% of online orders to be ready for collection within 1 hour after placement (vs 45% in 4Q'17) Upgraded "In-store pickup"1 functionality reaching 56.2% of online sales for full year 2017 _ ■ Improved focus on UI/UX – full re-design of the "Customer Cart / Check Out" 1 Upgraded "In-store pickup" implies that online assortment that are not presented in offline stores can be dispatched from Detsky Mir warehouse and delivered via the Company's logistics system to any store of the chain preferred by customer. Implemented in Oct-2017 6

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