© GfK 2013 | Canton Fair | 16. April RUSSIAN MARKET GLOBAL UNDERSTANDING  LOCAL FOCUS Max Bystritskiy. CIS Region Head. GfK Consumer Choices

© GfK 2013 | Canton Fair | 16. April SIZE AGENDA STRUCTURE SALES

© GfK 2013 | Canton Fair | 16. April SIZE

© GfK 2013 | Canton Fair | 16. April RUSSIA overview Source: world fact book

© GfK 2013 | Canton Fair | 16. April SDA +18% MDA +16% CE +10% 12,1%

© GfK 2013 | Canton Fair | 16. April DRIVERS of GROWTH in RU market: #1  Growing income Source: Rosstat Real population income 2005 =100%

© GfK 2013 | Canton Fair | 16. April ,7 mln – ,6 mln Source : Rosstat DRIVERS of GROWTH in RU market: #2  Growing number of households

© GfK 2013 | Canton Fair | 16. April DRIVERS of GROWTH in RU market: #3  Continuous growth of home loans Home loans index Source: analytical center Delta Credit 2013 = Mio Rubles Jan FORECAST 2013: +9% Q = FebMarAprilMayJuneJulyAugSepOctNovDec  2013

© GfK 2013 | Canton Fair | 16. April MDA +9% IT +11% SDA +12% ESTIMATED MARKET GROWTH 2013 TELECOM +17% +10%

© GfK 2013 | Canton Fair | 16. April STRUCTURE

© GfK 2013 | Canton Fair | 16. April SALES PRODUCTS DISTRIBUTION CHANNELS REGIONS AND CITIES INTERNET STRUCTURE

© GfK 2013 | Canton Fair | 16. April SALES PRODUCTS

© GfK 2013 | Canton Fair | 16. April In 2012 Russian Consumers spent > 40 Billion USD on Technical Goods

© GfK 2013 | Canton Fair | 16. April TOP SELLING PRODUCTS that generate ~60% of the market turnover 18% 19% 14% 6% 4% From ~0% to 5% in a year

© GfK 2013 | Canton Fair | 16. April

© GfK 2013 | Canton Fair | 16. April SALES DISTRIBUTION CHANNELS

© GfK 2013 | Canton Fair | 16. April NATIONAL CHAINS RETAIL STRUCTURE RETAIL ??? SPECIFIC CHANNELS: Kitchens, Telecom, Computer, Photo INDEPENDENT HYPERMARKETS REGIONAL CHAINS PURE INTERNET

© GfK 2013 | Canton Fair | 16. April Complexity at first sight

© GfK 2013 | Canton Fair | 16. April All Sectors National Chains incl. all channels PRJ RG RP ID CEPhotoSDAMDAIT/OETelecom , , NATIONAL CHAINS REGIONAL CHAINS HYPERMARKETS /C&C ONLINE RETAILERS COMPUTER STORES TELECOM STORES ALL OTHERS Russia, Multi Channel Management

© GfK 2013 | Canton Fair | 16. April All Sectors +Webbooks © GfK | 3/2013 Share of Internet Sales RUSSIA From 5,5 % in 2011 To 10 % in Offline sales 2012 Online sales

© GfK 2013 | Canton Fair | 16. April SALES REGIONS AND CITIES

© GfK 2013 | Canton Fair | 16. April time zones Each region like a separate country

© GfK 2013 | Canton Fair | 16. April © GfK | 3/2013 PRJ RG RP ID % KRASNOYARSK EKATERINBURG NOVOSIBIRSK N.NOVGOROD KAZAN SAMARA ROSTOV-ON-DON CHELYABINSK VOLGOGRAD YFA PERM VORONEZH OMSK REST OF RUSSIA ~57% ST. PETERSBURG MOSCOW 18% TOP 15 BIGGEST CITIES CENTRAL 12% NOTHERN 11% SOUTHERN 17% PRIVOLZHIE 10% URAL 12% SIBERIA 5% FAR EAST 7 REGIONS

© GfK 2013 | Canton Fair | 16. April Each city – different consumer environment MOSCOW ST. Pete Two capitals make major part of the biggest cities turnover, ~60% Average check can differ up to 35%

© GfK 2013 | Canton Fair | 16. April SALES. WHITE GOODS MAIN TRENDS

© GfK 2013 | Canton Fair | 16. April HOT TRENDS DESIGNINNOVATION MULTIFUNCTIONALITY GROWTH

© GfK 2013 | Canton Fair | 16. April HOT TRENDS MULTIFUNCTIONALITY GROWTH

© GfK 2013 | Canton Fair | 16. April PECULARITIES of RU cuisine

© GfK 2013 | Canton Fair | 16. April % 60% 35% Tea drinking nation falling in love with coffee

© GfK 2013 | Canton Fair | 16. April SDA 18 groups, MULTICOOKERRussia PanelmarketJan 11-Dec 11 - Dec 12 Sales Value % © GfK | 2/2013 PRJ RG RP ID Jan 11- Dec 11 Jan 12- Dec 12Dec 11Jan 12Feb 12Mar 12Apr 12May 12Jun 12Jul 12Aug 12Sep 12Oct 12Nov 12Dec 12 23,2 9,6 3,4 6,2 5,2 3,4 7,5 10,2 4 5,1 10,4 2,8 4,4 8,9 20,9 9 4,4 5,5 4,4 3 6,8 8,9 3,4 5,3 9,4 3,7 2,6 3,4 3,8 3,9 4, BREAD MAKERS DEEP FRYERS EL. THERMO POTS FOOD STEAMERS FOODPREPARATION HOT BEVER.MAKER JUICERS/PRESSES KETTLES MEAT MINCERS TOASTERS DENTAL CARE HAIR CLIPPERS HAIR DRYERS HAIR STYLERS SHAVERS ELECTR. HEATING IRONS VACUUM CLEANERS MULTICOOKER From 2,6% in January 2012 Multicookers exploded RU market To 19% in Dec 2012

© GfK 2013 | Canton Fair | 16. April © GfK | 8/2012 PRJ RG RP ID BUILT-IN MWO FS MWO 65 35% 72 28%28% % avp~640 USD WESTERN EUROPE CENTRAL- EASTERN EUROPE RUSSIA Small apartments call for compact and multifunctional devices

© GfK 2013 | Canton Fair | 16. April HOT TRENDS INNOVATION GROWTH

© GfK 2013 | Canton Fair | 16. April >16% 2%2%2%2% +18,2% +28,5% +149,3% +214,4%

© GfK 2013 | Canton Fair | 16. April BUILT IN HOBS Panelmarket ELECTRIC PRJ RG RP ID Russia INDUCTION NO INDUCTION ELECTRICAL HOBS WESTERN EUROPE CENTRAL- EASTERN EUROPE

© GfK 2013 | Canton Fair | 16. April REFRIGERATORS WITH DISPLAY + 29% growth rate REFRIGERATORS WITH DRAWER + 51% growth rate REFRIGERATORS MARKET INCREASED BY 13%

© GfK 2013 | Canton Fair | 16. April HOT TRENDS DESIGN GROWTH

© GfK 2013 | Canton Fair | 16. April <=560 $ >560 <=650 $ >650 <=780 $>780<=1050 $>1050 $ Combi Ref With No Frost $$$$ STAINLESS STEEL METAL SILVER GLASS BLACK WHITE OTHER COLORS Black and Glass – for premium segments Stainless still FRONT DECORATION COLOR

© GfK 2013 | Canton Fair | 16. April HOUSING MAT.: METAL

© GfK 2013 | Canton Fair | 16. April THANK YOU MAX BYSTRITSKIY CIS REGION HEAD GFK CONSUMER CHOICES