Wikimart front-end for type-in customers

2014: Wikimart and theRussian Ecommerce Highlights

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59.0 58.452.1 47.9 44.6 41.1

33.425.8 23.8 19.8

Mail.ru

Yandex

VK.com

Google

Youtube.com

Odnoklassniki.ru

Wikipedia.org

Avito.ru

Facebook.com

LiveJournal.com

Russian internet audience: large and growing

Internet audience size by country, 2013 (m ppl)

Russian Internet market doubled its audience over the last 5 years …

…to become the largest Internet market in Europe…

…still retaining significant growth potential…

…which is likely to further benefit local players

Source: World Bank, EIU, press Source: World Bank

Internet penetration by country, 2013 Top 10 largest websites in the Russian Internet by UMV (m users)

- International players

- Local players

Source: World Bank, EIU, press Source: TNS, March 2014

94%88% 88% 85% 85% 82% 79%

70% 72% 71% 69%59%

Norw

ay UK

Ger

man

y

Switz

erla

nd

USA

Fran

ce

Japan

Spai

n

Pola

nd

Hun

gar

y

Ital

y

Rus

sia

267

10184

7152 56

4233 28

7 7 5

USA

Japan

Russ

ia

Ger

man

y

Fran

ce UK

Ital

y

Spai

n

Pola

nd

Hungar

y

Switze

rlan

d

Norw

ay

3

35 38 41

6170

7684

2%

25% 27% 29%

43%49% 53%

59%

2000 2007 2008 2009 2010 2011 2012 2013Internet audience (m ppl) Penetration (%)

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296.0

207.6

53.035.0 30.0 14.8 10.7 2.9

China US UK Germany France Russia Brazil India

66%54%

40% 39% 34% 31%21% 13%

34%46%

61% 61% 67% 69%79% 87%

China Germany UK Brazil France US India Russia

Top 5 players Other

6.6

9.1

11.7

14.8

2010 2011 2012 2013

Russian online retail: rapidly developing and ready for consolidation

One of the fastest growing markets worldwide…

…already one of the largest yet underdeveloped

in the global context…

…and underinvested compared to other emerging markets…

…with ample opportunity for consolidation

Source: RBC research

Source: Euromonitor

Online retail shoppers, m ppl Online retail market, US$bn

CAGR ‘10-’1

3: 38%

Source: Euromonitor, iResearch

CAGR ‘10-’13:

32%

Source: Euromonitor

Online retail market 2013, US$bn(1)

Source: Euromonitor

Online retail market concentration 2013, %

7.9%(2) 7.3% 10.4% 6.0% 5.5% 2.7% 3.1% 0.7% %,total retail

5.98.0

11.1

15.6

2010 2011 2012 2013

35%

16%

4%

India Brazil Russia

2.9 14.810.7 Online retail market, US$bn

Total investments in Top-3 players(3) as % of online retail market 2013

Notes: (1) Euromonitor except for China (iResearch); (2) As % of total consumption; (3)The following companies were used to calculate investments in Top-3 players in respective countries: Brazil – B2W, Netshoes, Dafiti; India – Flipkart, Myntra, Snapdeal; Russia – Ozon, Lamoda, KupiVIP

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73%69%

65%

Moscow St. Petersburg Cities(>1m)

81%

53%

44%

Moscow St. Petersburg Cities (>1m)

6.4

1.2

7.2

Moscow St. Petersburg Regions

47%

18%

Moscow Cities(>1m)

Cities(0.05-1m)

Russian regions: an immense growth opportunity

Russian regions already reached sufficient internet penetration...

…however majority of online retailers are not present there…

…restricting online shopping take-up in the regions…

…and representing an enormous growth opportunity

Source: RBC research

Source: RBC research

Source: Euromonitor, Rosstat, RBC research

Source: RBC research

Internet penetration (18+ population), May 2013 % of large online retailers present, September 2013

Online shopping penetration (% of internet users), June 2013 Online retail market 2013, US$bn

Online retail as % of total

5.2% 5.8% 1.8%

15-17%

(1)

Notes: (1) Including Moscow region

Total retail, US$bn

123 21 394

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Key online retail developments 2014 – 2017

1

2

3

4

5

New economic reality: wait-and-see for foreign investors, ruble devaluation, stagnation of real incomes

New customer: from Moscow to regions, ever more price-sensitive

New supply: away from distributors, direct supply from Asia and cross-border

New competitive game: from innovation and organic growth to alliances, M&A and operational efficiency

New players: from agile entrepreneurs to heavyweight financial investors

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Russian ecommerce 2017: what to expect?*

Electronics: $11bn

High-margin: $6bn

Cross-border: $3bn

1.

2.

3.

4.

5.

1.

2.

2006 - 09 2010 - 13 2014 - 17

Market Growth $1.2bn to $5bn (4x) $7bn to $15bn (2.2x) $18bn to $27bn (1.5x)

Stage Innovation Emergence of leaders Consolidation

Russian ecommerce leaders 2017: 65% of the market

*Assuming flat ruble/USD exchange rate

1.

2.

3.

4.

5.

Time Period