1. © GfK 2013 | Russia @ Canton Fair | 16. April 20131 RUSSIAN MARKET GLOBAL UNDERSTANDING  LOCAL FOCUS Max Bystritskiy. CIS Region Head. GfK Consumer Choices

2. © GfK 2013 | Russia @ Canton Fair | 16. April 20132 SIZE AGENDA STRUCTURE SALES

3. © GfK 2013 | Russia @ Canton Fair | 16. April 20133 SIZE

4. © GfK 2013 | Russia @ Canton Fair | 16. April 20134 RUSSIA overview Source: world fact book

5. © GfK 2013 | Russia @ Canton Fair | 16. April 20135 SDA +18% MDA +16% CE +10% 12,1%

6. © GfK 2013 | Russia @ Canton Fair | 16. April 20136 DRIVERS of GROWTH in RU market: #1  Growing income Source: Rosstat Real population income 2005 =100%

7. © GfK 2013 | Russia @ Canton Fair | 16. April 20137 52,7 mln – 2002 54,6 mln - 2010 Source : Rosstat DRIVERS of GROWTH in RU market: #2  Growing number of households

8. © GfK 2013 | Russia @ Canton Fair | 16. April 20138 DRIVERS of GROWTH in RU market: #3  Continuous growth of home loans Home loans index Source: analytical center Delta Credit 2013 = 1 131 000 Mio Rubles Jan FORECAST 2013: +9% Q1 2013 = 199 500 FebMarAprilMayJuneJulyAugSepOctNovDec  2013

9. © GfK 2013 | Russia @ Canton Fair | 16. April 20139 MDA +9% IT +11% SDA +12% ESTIMATED MARKET GROWTH 2013 TELECOM +17% +10%

10. © GfK 2013 | Russia @ Canton Fair | 16. April 201310 STRUCTURE

11. © GfK 2013 | Russia @ Canton Fair | 16. April 201311 SALES PRODUCTS DISTRIBUTION CHANNELS REGIONS AND CITIES INTERNET STRUCTURE

12. © GfK 2013 | Russia @ Canton Fair | 16. April 201312 SALES PRODUCTS

13. © GfK 2013 | Russia @ Canton Fair | 16. April 201313 In 2012 Russian Consumers spent > 40 Billion USD on Technical Goods

14. © GfK 2013 | Russia @ Canton Fair | 16. April 201314 TOP SELLING PRODUCTS that generate ~60% of the market turnover 18% 19% 14% 6% 4% From ~0% to 5% in a year

15. © GfK 2013 | Russia @ Canton Fair | 16. April 201315

16. © GfK 2013 | Russia @ Canton Fair | 16. April 201316 SALES DISTRIBUTION CHANNELS

17. © GfK 2013 | Russia @ Canton Fair | 16. April 201317 NATIONAL CHAINS RETAIL STRUCTURE RETAIL ??? SPECIFIC CHANNELS: Kitchens, Telecom, Computer, Photo INDEPENDENT HYPERMARKETS REGIONAL CHAINS PURE INTERNET

18. © GfK 2013 | Russia @ Canton Fair | 16. April 201318 Complexity at first sight

19. © GfK 2013 | Russia @ Canton Fair | 16. April 201319 All Sectors National Chains incl. all channels PRJ 76112 - RG 2175920 - RP 11425876 - ID 332999233 CEPhotoSDAMDAIT/OETelecom 20 25 4 21 26 33,4 3 13 5 4 31 46 25 23 6 18 29 5 11 37 47 55,2 4 54 35 7 63 5 8 16 75 12 8 NATIONAL CHAINS REGIONAL CHAINS HYPERMARKETS /C&C ONLINE RETAILERS COMPUTER STORES TELECOM STORES ALL OTHERS Russia, Multi Channel Management

20. © GfK 2013 | Russia @ Canton Fair | 16. April 201320 All Sectors +Webbooks © GfK | 3/2013 Share of Internet Sales RUSSIA From 5,5 % in 2011 To 10 % in 2013 +60 +10 2012 Offline sales 2012 Online sales

21. © GfK 2013 | Russia @ Canton Fair | 16. April 201321 SALES REGIONS AND CITIES

22. © GfK 2013 | Russia @ Canton Fair | 16. April 201322 11 time zones Each region like a separate country

23. © GfK 2013 | Russia @ Canton Fair | 16. April 201323 © GfK | 3/2013 PRJ 76112 - RG 2175920 - RP 11423823 - ID 293220265 33% 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

24. © GfK 2013 | Russia @ Canton Fair | 16. April 201324 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%

25. © GfK 2013 | Russia @ Canton Fair | 16. April 201325 SALES. WHITE GOODS MAIN TRENDS

26. © GfK 2013 | Russia @ Canton Fair | 16. April 201326 HOT TRENDS DESIGNINNOVATION MULTIFUNCTIONALITY GROWTH

27. © GfK 2013 | Russia @ Canton Fair | 16. April 201327 HOT TRENDS MULTIFUNCTIONALITY GROWTH

28. © GfK 2013 | Russia @ Canton Fair | 16. April 201328 PECULARITIES of RU cuisine

29. © GfK 2013 | Russia @ Canton Fair | 16. April 201329 30% 60% 35% Tea drinking nation falling in love with coffee

30. © GfK 2013 | Russia @ Canton Fair | 16. April 201330 SDA 18 groups, MULTICOOKERRussia PanelmarketJan 11-Dec 11 - Dec 12 Sales Value % © GfK | 2/2013 PRJ 129469 - RG 3425179 - RP 17551782 - ID 353359185 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 4,8 7 2 8 9 12 16 19 5 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

31. © GfK 2013 | Russia @ Canton Fair | 16. April 201331 © GfK | 8/2012 PRJ 61041 - RG 2360938 - RP 14733893 - ID 332033618 BUILT-IN MWO FS MWO 65 35% 72 28%28% 9090 10% avp~640 USD WESTERN EUROPE CENTRAL- EASTERN EUROPE RUSSIA Small apartments call for compact and multifunctional devices

32. © GfK 2013 | Russia @ Canton Fair | 16. April 201332 HOT TRENDS INNOVATION GROWTH

33. © GfK 2013 | Russia @ Canton Fair | 16. April 201333 >16% 2%2%2%2% +18,2% +28,5% +149,3% +214,4%

34. © GfK 2013 | Russia @ Canton Fair | 16. April 201334 BUILT IN HOBS Panelmarket ELECTRIC PRJ 61041 - RG 2191596 - RP 17990790 - ID 358982233 Russia 57 43 68 32 22 76 INDUCTION NO INDUCTION ELECTRICAL HOBS WESTERN EUROPE CENTRAL- EASTERN EUROPE

35. © GfK 2013 | Russia @ Canton Fair | 16. April 201335 REFRIGERATORS WITH DISPLAY + 29% growth rate REFRIGERATORS WITH DRAWER + 51% growth rate REFRIGERATORS MARKET INCREASED BY 13%

36. © GfK 2013 | Russia @ Canton Fair | 16. April 201336 HOT TRENDS DESIGN GROWTH

37. © GfK 2013 | Russia @ Canton Fair | 16. April 201337 <=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

38. © GfK 2013 | Russia @ Canton Fair | 16. April 201338 HOUSING MAT.: METAL

39. © GfK 2013 | Russia @ Canton Fair | 16. April 201339 THANK YOU +7 916 035 88 74 MAX BYSTRITSKIY CIS REGION HEAD GFK CONSUMER CHOICES