Prepared for Difficult Market Preliminary Results – Budget -

Market Overview Network Evolution 2008 Preliminary Financial Results 2009 Budget Table of Content

- 3 - Market Overview * Flamingo estimations (very limited data are available) >1.1 bln EUR 30% 35% 33% 35% 34% 32% 31% IT&C Brown Goods White Goods We expect a decrease of the targeted market in 2009 as a result of the current economical environment The decrease will affect mostly white goods which registered the lowest increase rates in the last years * Estimates based on the public announcements

Network Evolution Constant strategy in the last 3 years to focus on large surface concept Simplified retail model (higher surface but lower number of stores) Optimized costs per sqm resulting from larger surfaces opened NSA – net selling area

Preliminary Financial Results

- 6 - Flamingo in 2008Sales In 2008 we reached the sales budget - the retail activity (which generates the higher margins) being at -13% vs. budget (annual base) mainly as a result of Q4 evolution when retail sales decreased with 25% but compensated by wholesale over performance Sales on credit were strongly influenced by the new regulations implemented by the National Bank starting from September ’08 Some openings were postponed or even canceled causing a gap between actual and budgeted NSA counting ~ 10,000 sqm Gross Profit Lower margins as wholesale share increased on group level (33% from group’s turnover vs. 23% budgeted) Decreased retail margin mainly in Q4 as a result of focusing on the stock rotation improvement and decreasing old inventory share, as well as tough competition in a fast decreasing targeted market Increased marketing expenses in Q4 2008

- 7 - Flamingo in 2008 Other Incomes Lower sales brought lower acquisitions and lower suppliers’ and marketing contributions Exchange rates volatility generated an increased financial cost vs. budgeted and influenced negatively the rents level Special campaigns for sales on credit (including DAE 0%) together with lower sales on credit brought discounted levels in consumer credit fees Net Impact Preliminary consolidated results show an operational break even plus to be registered in 2008 The increased financial expenses resulting from F/X volatility led to a negative net result in 2008

- 8 - Actions taken 2008 Measures Immediate cost cuttingImmediate cost cutting where possible Tight cost controlTight cost control under direct CFO supervising Strong and fast product acquisition controlStrong and fast product acquisition control with direct supervising of Operations Director, Sales Director Retail and CFO Tight inventory controlTight inventory control to deliver improved inventory rotation with yearend inventory below 2007 with +20% higher NSA Closer and proactive work with our banks Cash-flow is the strong driver of all activitiesCash-flow is the strong driver of all activities

% Sales Evolution ‘08 +4% -4% -13% -25% -13% +81% +51% -22% +36% % = actual vs. budget +23%+15% +5% -24% -1.5% impact on Retail started in Q3 strong impact on both, Retail and Wholesale in Q4

P&L Indicators INDICATOR (k RON)2008 Preliminary2008 BudgetDiff2007 ActualDiff Total Sales748,008758, %585, % Retail501,805578, %413, % Wholesale246,202180, %172, % Cost of Sales-670, ,7100.5%-511, % Gross Profit77,69491, %73,5505.6% Operating Expenses incl. HQ-111, ,1200.9%-90, % Other incomes33,48745, %39, % EBITDA12327, %22,843N/M Depreciation-10,665-10, %-10,0785.8% EBIT-10,54116,310N/M12,765N/M NET RESULT-37,6469,350N/M2,808N/M The results are still to be audited

Budget

BudgetAssumptions: Targeted Market - we prepared the budget considering a low market in 2009 (decreasing in comparison with 2008) Stores evolution – we will keep almost a constant level in terms of sqm Wholesale Activity – focus on developing direct sales using also web support Operational Costs – optimized to the current market situation Our Goals: Group Sales 2009 ~ 600 mil RON Operational costs decrease with at least 20% vs Positive EBITDA Positive break even in terms of net result

2009 Consolidated Budget INDICATOR (k RON)Q1Q2Q3Q4Y 2009% total Y 2008 Preliminary % total Variance YoY Total Sales97,200102,900128,600277,400606, %748, %-141,908 Retail67,90087,300114,600231,900501, %501, %-105 Wholesale29,30015,60014,00045,500104, %246, %-141,802 Cost of Sales-86,400-86, , , , %-670, %-159,214 Gross Profit10,80016,10021,50046,60095, %77, %17,306 Operating Expenses incl. HQ-24,600-16,200-14,200-17,900-72, %-111, %-38,158 Other incomes3,2005,0008,0009,10025,3004.2%33,4874.5%-8,187 EBITDA-10,6004,90015,30037,80047,4007.8%1230.0%47,277 Depreciation-2,700 -2,800-10, %-10, %235 EBIT-13,3002,20012,60035,00036,5006.0%-10, %47,041 NET RESULT-23,000-4,2007,40029,80010,0001.6%-37, %47,646

Strategy Our strategy remains the same, we only postpone its execution about 1-2 years because of current global environment. Priorities: Improve margins across all categoriesImprove margins across all categories Decrease range of products, stock level and rotation daysDecrease range of products, stock level and rotation days Reduce number of suppliers and prioritize those offering us better conditionsReduce number of suppliers and prioritize those offering us better conditions Freeze new openings except selected opportunitiesFreeze new openings except selected opportunities Tight cost control in all activitiesTight cost control in all activities Speed up e-commerce in order to cover fast growing market segmentSpeed up e-commerce in order to cover fast growing market segment All activities driven by cash-flowAll activities driven by cash-flow

Q&A