WORLDWIDE RETAILERS BUSINESS RESULTS 1Q 2013

JULY 2013

2

«CUSTOMER-CENTRISM: METRICS, CASES, FACTS»

• Client service metrics: NPS, CSI, TLR, FCR, TRI*M

• Worldwide client service cases: Zappos, Costco, USAA, Edward Jones, Southwest airlines, Starbucks and others

«WORLDWIDE AND RUSSIAN RETAIL MARKETS 2012-2016»

• Retail and e-commerce in Russia, USA, China: volumes, growth rates, forecasts 2009-2016

• Perfumes, Furniture, Jewelry markets: key players, retailers product mix, website traffic analysis

June 2013

February 2013

October 2012

«CURRENT TRENDS IN ONLINE RETAIL: FACTS AND FIGURES»

• Online retail indexes: costs of delivery by regions, payment methods penetration, product mix analysis, average prices etc.

ABOUT CENTER OF STRATEGIC RESEARCH

«ENTER VISION»

CENTER OF STRATEGIC RESEARCH ENTER VISION was founded in 2011 by Enter company.

Our key target is to increase transparency of Russian retail & online-retail markets for its players.

Consolidating information from our experts and conducting research of market trends & performance, Enter Vision provides analytics of 3 types:

1. Market & industry reports 2. Competitive environment analysis 3. Ad-hoc research

CONTACTS: Website: WWW.ENTER.RU/RESEARCH E-mail: RESEARCH@ENTER.RU Facebook: WWW.FACEBOOK.COM/RESEARCH.ENTER SlideShare: WWW.SLIDESHARE.NET/RESEARCH_ENTER

METHODOLOGY

The research is based on the analysis of 75 selected companies, ANNOUNCING COMMERCIAL AND OPERATIONAL STATEMENTS, operating on international and domestic markets: France, Germany, Great Britain, Italy, Sweden, Holland, Poland (aggregated as Europe region), Brazil, Russia, India, China, South Africa (aggregated as BRICS region), Turkey and the USA. All selected companies carry out retail trade of physical goods and do not produce these goods. All selected companies are multichannel and online-retailers ranked in top-250 retailers worldwide in 2011 (Deloitte, Global Powers of Retailing - 2013), top-500 US online-retailers and top-400 European online-retailers (internetretailer.com), Bloomberg and Reuters classificatories. Revenue growth rate was calculated in national currencies and did not include exchange rate’s dynamics.

Financial and trading statements:

• For the quarter (13 weeks), finished 31.03.2013, – 41 companies; • For the quarter(7-13 weeks), finished from 17.02.2013 to 05.05.2013, – 34 companies.

«Turnover ratios in 1Q 2013» is based on the data of 51 public retailers. The following companies were not included: PPR, Casino Guichard, Carrefour, Carpetright, Mothercare, Home Retail Group, John Lewis, Debenhams, Kingfisher, Kohl’s, Next, Ocado, Massmart, TSUM, M.Video, Svyaznoy, Perfumania, Migros, Dashang, Tesco, Halfords, ASOS, Marks & Spencer, Autozone.

«Market capitalization ratios» is based on the analysis of 25 selected companies with the best EV/EBITDA indicator as of 31.03.2013.

3

Source: Reuters, financial statements

Gross margin, 1Q 2013 Top-3 segments

Revenue growth, 1Q 2013 (YoY) *

Note: companies refer to the region of the headquarter’s location

Total

4

REVENUE & GROSS MARGIN BY REGIONS

USA

EUROPE

BRICS

35,0%

34,3%

33,7%

5,6%

4,5%

17,0%

Emerging markets are growing more rapidly than mature: revenue growth for 1Q 2013 in BRICS is 3 times higher than European or American

16%

13%

12%

Sports & Outdoor

Furniture

Perfumes & Cosmetics

12%

6%

6%

Apparel & Footwear

Mixed Product Range

Office Supplies

30%

18%

14%

Kids' Goods

Mixed Product Range

Apparel & Footwear

* YoY = Year over year

16,2%

15,7%

12,6%

9,4%

9,0%

8,9%

8,8%

7,5%

6,6%

-1,6%

-2,1%

-2,7%

Electronics & Home Appliances

Sports & Outdoor

Apparel & Footwear

Pets' Products

Mixed Assortment

Jewelry & Watches

Perfumes & Cosmetics

Kids' Goods

Furniture

Household Goods & DIY

Office Supplies

Auto Parts

REVENUE GROWTH 1Q 2013 RESULTS

9%

Average

In 1Q 2013 average revenue growth among selected companies decreased (YoY) from 11% to 9%;

In contrast with 1Q 2012, growth rates in 1Q 2013 increased more rapidly in the following categories: «Furniture» from 4% to 7%; «Kids’ Goods» from 5% to7%; «Sports & Outdoor»: from 15% to 16%;

In contrast with 1Q 2012, growth rates in 1Q 2013 decreased more rapidly in the following categories: «Auto Parts» from 20% to -3%; «Household Goods & DIY» from 6% to -2%; «Pets’ Products»: from 15% to 9%;

Revenue growth leaders, 1Q 2013 (YoY):

ASOS (Apparel & Footwear)

37% Teknosa (Electronics & Home

Appliances)

44%

5

Casino Guichard (Mixed Assortment)

34%

Source: Reuters, financial statements * YoY = Year over year

Revenue growth, 1Q 2013 (YoY)* KEY TRENDS:

49%

47%

42%

36%

36%

36%

35%

34%

31%

30%

26%

21%

Furniture

Apparel & Footwear

Perfumes & Cosmetics

Jewelry & Watches

Kids' Goods

Auto Parts

Sports & Outdoor

Pets' Products

Household Goods & DIY

Office Supplies

Mixed Assortment

Electronics & Home Appliances

In 1Q 2013 average gross margin among selected companies has not significantly changed;

In contrast with 1Q 2012, gross margin in 1Q 2013 increased more rapidly in the following categories: «Mixed Assortment» from 25% to 26%; «Auto Parts» from 35% to 36%; «Office Supplies»: from 29% to 30%;

In contrast with 1Q 2012, gross margin in 1Q 2013 decreased more rapidly in the following categories: «Kids’ Goods» from 38% to 36%; «Household Goods & DIY» from 33% to 31%; «Electronics & Home Appliances»: from 22% to 21%;

Gross margin leaders, 1Q 2013:

Gross margin, 1Q 2013

36%

Медиана

Haverty Furniture (Furniture)

54% Zodiac (Apparel & Footwear)

63%

6

Beter bed (Furniture)

56%

Source: Reuters, financial statements

GROSS MARGIN 1Q 2013 RESULTS

KEY TRENDS:

7

TURNOVER RATIOS IN 1Q 2013

Inventory Turnover Ratio (days)

Inventory Turnover Ratio = 91*

Quarterly cost of sales / (Average inventories for the quarter)

* 92 days for 2Q

140

77 50

87 104

183 161

87 44

94 114

170 193

89 46

112 99

186 147

68 46

75 102

154 136

82 57

132 110

197

Auto Parts Electronics & HomeAppliances

Pets' Products Perfumes & Cosmetics Furniture Apparel & Footwear

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

71 106 98 113

49

198

69 100 108

86 55

203

76

120 96 94

51

253

58

115 80

105

50

139

78 102 93

116

50

201

Mixed Assortment Sports & Outdoor Kids' Goods Household Goods & DIY Office Supplies Jewelry & Watches

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

Source: Reuters, financial statements

8

Receivables Turnover Ratio (days)

Receivables Turnover Ratio = 91*

Quarterly revenue/ (Average receivables for the quarter)

TURNOVER RATIOS IN 1Q 2013

18 24

5 5 10

39

16

25

5 5 10

21 17

26

5 6 10

35

11 17

5 5 11

27 22

18

5 9 11

47

Auto Parts Electronics & HomeAppliances

Pets' Products Perfumes & Cosmetics Furniture Apparel & Footwear

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

22

4 9 9

30

54

18

3 10 6

33

56

18

4 9 7

29

66

15 5 8 8

30 34

18

4 11 10

29

56

Mixed Assortment Sports & Outdoor Kids' Goods Household Goods & DIY Office Supplies Jewelry & Watches

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

* 92 days for 2Q Source: Reuters, financial statements

9

Payables Turnover Ratio (days)

Payables Turnover Ratio = 91*

Quarterly cost of sales/ (Average payables for the quarter)

TURNOVER RATIOS IN 1Q 2013

125

78

16 30 51

92

144

79

16 29 46

74

168

79

18 39 43

80

128

68

17 28 47

71

135

83

20 51 48

101

Auto Parts Electronics & HomeAppliances

Pets' Products Perfumes & Cosmetics Furniture Apparel & Footwear

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

65 53

67 72

37

81

61 50

66 62

41

68 65 59 64 65

37

88

57 48

60 67

37

59

74

49

69 82

36

81

Mixed Assortment Sports & Outdoor Kids' Goods Household Goods & DIY Office Supplies Jewelry & Watches

1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013

* 92 days for 2Q Source: Reuters, financial statements

Amazon

Lojas Americanas

Ulta Next

Massmart Chow Tai Fook

PPR

Grupo Pao de Acucar

Carpetright

Blue Nile

Lojas Renner The Home

Depot Liberty Interactive

Ocado

Yoox CDON Group

Praktiker

Sasa Sears Holdings

Costco

Lowe's

Delticom

Cabela's Byggmax

5

10

15

20

25

30

- 0,5 1,0 1,5 2,0 2,5 3,0

80

Zooplus

10

MARKET CAPITALIZATION RATIOS

Multichannel retailers Online-retailers

Sources: Forexpros, Reuters, InFinancials

Average 11,0

Average

1,0

EV/E

BITD

A

EV/Sales

The size corresponds for market cap as of 31.03.2013.

Region: USA Format: Online-retailer Category: Mixed Assortment

Region : Europe, Italy Format : Online-retailer Category: Apparel & Footwear

Region : China Format: Multichannel retailer Category : Perfumes & Cosmetics

Region : Brazil Format: Multichannel retailer Category: Apparel & Footwear

Region : Europe, UK Format: Online-retailer Category: Mixed Assortment

Market indicators of most companies showed a negative trend compared with 4Q 2012 against the backdrop of retail slowdown.

LIST OF COMPANIES INCLUDED IN THE RESEARCH

11

Mixed Assortment – segment which consists of retailers that are specialized on 2 or more commodity category.

№ Компания Страна Спец иализац ия № Компания Страна Спец иализац ия

1 Advance Auto Parts USA Auto Parts 41 Home Retail Group Europe Mixed Product Range

2 Autozone USA Auto Parts 42 John Lewis Europe Mixed Product Range

3 Delticom Europe Auto Parts 43 Kering (ex-PPR) Europe Mixed Product Range

4 Halfords Europe Auto Parts 44 Kohl's USA Mixed Product Range

5 Oponeo.pl Europe Auto Parts 45 Liberty Interactive USA Mixed Product Range

6 Best Buy USA Electronics & Home Appliances 46 Lojas Americanas Brazil Mixed Product Range

7 Bimeks Bilgi Islem ve Dis Ticar Turkey Electronics & Home Appliances 47 Macy's USA Mixed Product Range

8 Teknosa Ic ve Dis Ticaret AS Turkey Electronics & Home Appliances 48 Massmart South Africa Mixed Product Range

9 Via Varejo Brazil Electronics & Home Appliances 49 Metro Europe Mixed Product Range

10 М.Видео Russia Electronics & Home Appliances 5 0 Migros Turkey Mixed Product Range

11 PetMed Express USA Pets' Products 5 1 Ocado Europe Mixed Product Range

12 PetSmart USA Pets' Products 5 2 Overstock.com USA Mixed Product Range

13 Zooplus Europe Pets' Products 5 3 Sears Holdings USA Mixed Product Range

14 Douglas Holding Europe Perfumes & Cosmetics 5 4 Target USA Mixed Product Range

15 Perfumania USA Perfumes & Cosmetics 5 5 Tesco Europe Mixed Product Range

16 Ulta Salon Cosmetics & FragraUSA Perfumes & Cosmetics 5 6 Wal-Mart USA Mixed Product Range

17 Bed, Bath & Beyond USA Furniture 5 7 Cabela's USA Sports & Outdoor

18 Beter bed Europe Furniture 5 8 Dick's Sporting Goods USA Sports & Outdoor

19 Carpetright Europe Furniture 5 9 Zumiez USA Sports & Outdoor

20 Haverty Furniture USA Furniture 60 Build-a-Bear USA Kids' Goods

21 The Brick USA Furniture 61 Children's Place USA Kids' Goods

22 ASOS Europe Apparel & Footwear 62 Mothercare Europe Kids' Goods

23 Lojas Renner Brazil Apparel & Footwear 63 Детский мир Russia Kids' Goods

24 Marks&Spencer Europe Apparel & Footwear 64 Byggmax Europe Household Goods & DIY

25 Monnari Trade Europe Apparel & Footwear 65 Kingfisher Europe Household Goods & DIY

26 Next Europe Apparel & Footwear 66 Lowe's USA Household Goods & DIY

27 Vistula Group Europe Apparel & Footwear 67 Praktiker Europe Household Goods & DIY

28 Yoox Europe Apparel & Footwear 68 The Home Depot USA Household Goods & DIY

29 Zodiac India Apparel & Footwear 69 Office Depot USA Office Supplies

30 ЦУМ Russia Apparel & Footwear 70 OfficeMax USA Office Supplies

31 Amazon USA Mixed Product Range 71 Staples USA Office Supplies

32 B2W Brazil Mixed Product Range 72 Takkt Group Europe Office Supplies

33 Carrefour Europe Mixed Product Range 73 Blue Nile USA Jewelry & Watches

34 Casino Guichard-Perrachon Europe Mixed Product Range 74 Signet Jewelers USA Jewelry & Watches

35 CDON Group Europe Mixed Product Range 75 Zale USA Jewelry & Watches

36 China Dangdang Inc. China Mixed Product Range

37 Costco USA Mixed Product Range

38 Dalian Dashang China Mixed Product Range

39 Debenhams Europe Mixed Product Range

40 Grupo Pao de Acucar Brazil Mixed Product Range

Electronic publication by Enter.ru «Worldwide retailers business results in 1Q 2013». Editorial office: 11/10 Ordjonikidze street. Managing editor: Kolotenko Andrei Vladimirovich. Authors: Center of Strategic Research «Enter Vision». Release date: 11.06.2013. Certificate of mass media registration: Эл. №ФС77-48467, date of issue: 06.02.2012. Issued by Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications. This research was conducted by «Enter» LLC exclusively for the purpose of informing and designed for private use. Any copying and utilization of materials of this research is welcomed and allowed without written consent upon condition of mentioning Center of Strategic Research «Enter Vision» (CSR Enter Vision, Enter Vision) as a source. All the information presented in this research is collected from publicly available sources. Editorial staff took all possible measures to ensure accuracy and actuality of information provided in this research. Editorial staff do not incur liabilities in case of any economic losses and damages resulted from utilization of materials of this research by third parties. Any additional information can be provided on demand. All trademarks belong to their rights holders and used according to legislation of Russian Federation. Copyright © ООО «Энтер»

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