2. What Russia is. Country with large territory Customers behavior varies from region to region Diverse in Technology 17 075 400 km or11,46% from total dry land Ranked 9 in the world by population size (142 914 136 mlnpeople*) * Source:Rosstat, 2011
3. Currently every 2rd adult Russian is on the Internet Monthly internet audience isabout50mln. Yearly change Month +3,9 mln. -13% +10,1 mln. Week -6% 36,3 mln. Day +41% Main growth due to regions, 90% of new users outside of Moscow and Saint-Petersburg 3 Source:Internet in Russia. FOM. Winter 2010/11
4. Key Investment Highlights Large and High Growth Internet Market Opportunity Growth in Internet Users vs. Penetration Total Internet Users (MM) Key Developed Markets Russia 2014e BRIC Brazil Internet Penetration 2010 (%) Russia 2010 China India Internet users CAGR 2010-14e (%) 2010 2014e Source: Euromonitor (January 2011), FOM (March 2011) for Russia 4
5. Russia e-commerce key market facts 2011 e-commerce market estimated turnover 245 bln. Rub (6bln Euro) Annual growth by 17% The average purchase ~ 2700 Rub (65 euro) varies from 4700 rub (113 Euro) in large cities to 2000 rub (48 euro) in small towns 55% of internet users buy or research before shopping on line:
Online shopping browser 24% (~12 mln. people)
6. Regular online shoppers 11% (~6 mln. people)
7. Occasional online shoppers 16% (~8 mln. people)
Source:FOM. E-commerce market. March 2011. 5
8. Buying trends Large cities 80% 20% 60% 40% Travel tickets Percentage of people over 35 Computers & peripherals Food Older Younger CD&DVD Cell phones Books 70% 10% 50% 30% Household appliances and electronics Proportion of people buying each product category: More than 15% 7-14% Less than 7% Clothes, shoes Childrens products Cosmetics & perfume Small cities Percentage of population in cities 1 mln+ 6
9. Popular product categories as a % of all online shoppers August 2010 +5 pp -1 pp -4 pp 0 pp +2 pp -1 pp 0 pp -1 pp -3 pp 0 pp Source:FOM. E-commerce market. March 2011. 7
10. 33% of payments are made remotely as a % of all online shoppers Advance payment 8 Source:FOM. E-commerce market. March 2011.
11. This season fashiontrends in Clothing and Shoes search
12. Fashion became more and more popular 80% * Chart shows absolute yearly increase 10
13. Summer slump seasonal demand 11 Source: Words stat Yandex
14. Interest level: 4 regions lead the way Clothes Shoes 12 Words stat Yandex
15. Category interest level by gender and age Clothes Shoes 4% 11% Women 79% 44% Women 76% 16% 4% 1% 2% Men 21% Men 24% 11% 5% 1% 50% 40% 30% 20% 10% 0% 13 Source: Words stat Yandex
16. Advertisement click rate Clothes query All queries Shoes category 14 Source: Words stat Yandex
17. Users response rate by age 48% >45 35-44 25-34 18-24
