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1 We are doing our best that you could choose the best!

2 AZBUKA VKUSA COMPANY GROWTH AZBUKA VKUSA supermarket chain was founded in 1997, and nowadays it is the leading Russian premium food retailer. Today it is the number one among Russian food retailers by turnover per square meter products, drinks and household items make up Azbuka Vkusa s assortment. The company works with more than 900 SUPPLIERS and PRODUCERS from more than 70 countries world-wide as well as best quality producers from Russia. We are committed to delivering to our customers the best quality food along with an excellent service. Azbuka Vkusa plans to retain its 35-40% annual growth and in the middle term envisages the chain to grow from the current 50 supermarkets up, to 80 stores by means of both intensive organic development and M&A transactions. Currently, AZBUKA VKUSA operates in TOP three most densely populated Russian regions such as Moscow, Moscow region and St. Petersburg. Azbuka Vkusa is assessing business opportunities in other regions, as well as international markets. Our unique business concept and ongoing development have made AZBUKA VKUSA one of the most powerful and well-known Russian consumer brands.

3 MISSION AND POSITIONING STATEMENT Our STRATEGIC GOAL is to become the best food retailer in the world and we are on target 24 hours a day and 365 days a year. THINGS that make us DIFFERENT are: uncompromising approach to the quality of the food and household goods unique assortment of quality merchandise individual approach to each customer

4 The first supermarket under Azbuka Vkusa brand is opened Azbuka Vkusa is the first food chain to get quality management certification in accordance with ISO 9001:2000 standards. Azbuka Vkusa consists of 17 stores COMPANY HISTORY To maintain our leading position SCG London develops an integrated brand concept that is applied to all four Azbuka Vkusa supermarkets Azbuka Vkusa on-line shopping and delivery service are launched in Moscow market Azbuka Vkusa consists of 47 stores. New merchandise management system is launched.

5 FINANCIAL PERFORMANCE PLANS FOR THE FUTURE AND INTERNAL GROWTH Azbuka Vkusa is the number one Russian food retailer by the efficiency of the trading floor use with the turnover of $ per 1 sq. meter. The total turnover in 2011 exceeded $800 mln. The average cheque is $50. In the next two to three years Azbuka Vkusa plans to increase its share in the premium food retail market from the current 45% to 67% by means of organic growth and M&A transactions. Turnover (VAT included): 2005 $102.3 mln $177 mln $302.9 mln $314.7 mln $393 mln $578.2 mln $806.2 mln. Turnover forecast: 2012 $1.06 bln $1.33 bln not less than $1.60 bln. Ernst & Young is the company s auditor. For many consecutive years Azbuka Vkusa top managers have been voted into TOP-1000 list of the best Russian managers by the Association of Managers of Russia (AMR ), and a respectable Russian publishing house Kommersant. Azbuka Vkusa is committed to implementing personnel development programs targeted at all company employees..

6 WHO ARE WE AND OUR CUSTOMERS COMPANY VALUES Azbuka Vkusa s assortment is a balanced combination of DELICATESSEN from all over the world and best quality local and global PRODUCE FOR EVERYDAY USE. EFFICIENCY maximum results at minimum costs DEVELOPMENT once the goal is reached it is time to set a more ambitious goal PASSION being passionate about work opens up creative potential of every individual FRIENDLINESS positive attitude, respect and friendliness are the basis of communication in Azbuka Vkusa whether it comes to consumers, business partners, or colleagues COMFORT we create comfortable and supportive working environment for every employee TECHNOLOGY we are certain that technology is the way forward to improve Azbuka Vkusa s efficiency and retain its leadership in Russia s food retail Premium quality customer service and VALUE ADDING ACTIVITIES complement Azbuka Vkusa s unique assortment.

7 ASSORTMENT products, drinks and household items make up Azbuka Vkusa s assortment. Azbuka Vkusa s assortment is a result of laborious work of Azbuka Vkusa s EXPERTS. Assortment structure: 11% 9% 80% food alcohol household goods

8 ASSORTMENT POLICY We SELECT best quality international and local brands We PARTNER only with those suppliers who guarantee regular and timely supplies We SELECT authentic products from the regions where they are grown or manufactured traditionally We constantly OPTIMISE our assortment to meet the demanding tastes of our consumers and latest trends of global food and health issues

9 OWN PRODUCTION OWN PRODUCTION All dishes are created under the supervision of Azbuka Vkusa s French chef MICHEL CHEVAIS, a well-known former restaurant chef in Moscow. Azbuka Vkusa multi-profile culinary production «Fabrika-Kukhnya» occupies sq. m., and produces OVER 465 SKUs of confectionery, ready-to-eat and special ready-to-cook food ranges under Azbuka Vkusa brand. Azbuka Vkusa aims at increasing the share of Azbuka Vkusa own produce to 16%, and plans to include blended coffee and bakery into Azbuka Vkusa s private label range. Following the global trend Azbuka Vkusa has been among the first retail chains in Russia to launch its OWN MULTI-PROFILE CULINARY PRODUCTION. Today, Azbuka Vkusa own production accounts for 12 % of company s turnover.

10 Azbuka Vkusa CONSUMERS love food. They would not compromise on food quality and are ready for gastronomical experiments. Our target audience is split between male (42%) and female (58%). They have a comfortable upper middle class monthly income. They lead an active life-style and represent well travelled individuals who look after their health and image. Azbuka Vkusa has more than * loyalty card holders * 2011 statistics

11 EMPLOYEES Azbuka Vkusa is the only chain that has its OWN TRAINING AND EDUCATIONAL CENTRE and WINE ACADEMY. The chain s high customer service standards are maintained with the help of company-wide coaching programme. Employee-friendly working environment, social benefits, and care for the needs of MORE THAN 6000 EMPLOYEES have earned Azbuka Vkusa the title of best chains sector employer many times.

12 CORPORATE SOCIAL RESPONSIBILITY CORPORATE SOCIAL RESPONSIBILITY Among Azbuka Vkusa partners are charitable funds WWF (WORLD WILDLIFE FUND) and PODARI ZHIZN (GIFT OF LIFE) that helps children to fight cancer. In the past two years Azbuka Vkusa donated more than 13 mln. roubles to PODARI ZHIZN. Charitable activity and support of social initiatives is part of Azbuka Vkusa business philosophy. Traditional areas of Azbuka Vkusa CSR focus are: CARE for CHILDREN and ENVIRONMENT PROTECTION. Azbuka Vkusa integrates and involves its consumers into various charitable activities.

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