GROUP OF COMPANIES WWW.LEOMAXGROUP.COM WWW.SHOP24.COM Moscow, 2015
Purpose and principles of the company Purpose LEADING POSITION IN RUSSIA TV SHOPPING MARKET OUR MISSION we make quality affordable 1
ABOUT THE COMPANY LEOMAX is the leader in TV and promotional sale 1200 EMPLOYEES 10 COMPANIES IN 4 RUSSIAN CITIES 2 е-commerce PROJECTS Home Shopping TV - selling products live on www.shop24.com Direct TV multichannel sales www.leomax.ru 2
The scale of business of LEOMAX Group of Companies 1. TV Shopping Selling house brands and international brands on our three 23-hour television channels with 100 million viewers (35 million households) 2. Online shopping Selling products via our Online Shops: Shop24.com, LEOMAX.ru, ttstv.ru, domatv.ru and single products web-sites 3. Retail sales Selling LEOMAX products in retail chains 4. Direct marketing Selling LEOMAX products with direct commercials on central television channels 5. Club Membership special price offers for members of Best Buy Club 6. Catalogues Monthly mail out of personalized catalogues to our loyal customers 7. Order processing and logistics 8. 24-hour 7 days Contact Centers 9. Television content production 10. Search, licensing and distribution of products under our brands 3
Our products LEOMAX operates with the concept of multichannel retailing of consumer goods. We sell over 10 000 SKU per day Beauty and Health Kitchen and Home Clothes and Shoes Bags and Accessories Jewellery Electronic appliances Textile goods Hobby 10 BRANDS 8 PRODUCT CATEGORIES LEOMAX business model is unique because we control every step of the process from original idea to the search for the product and offering that product to customers via different sales channels 4
Company projects LEOMAX owns more than 10 brands: * * Home/Kitchenware Shoes/Leather goods * * Jewellery Jewellery Clothes/Shoes Shoes/Leather goods/ Shaping underwear 5 * Unregistered trademarks cannot be used
LEOMAX facts and figures We are partners with more than 1000 companies: 300 cable and satellite operators, 100 suppliers of consumer goods, about 100 cable and federal TV channels, 30 federal retail chains. We have more than 3,5 million of loyal customers We send 5 million personalized catalogues per year We make 10 million calls to our customers per year Our TWO Contact centers are located in Saratov and Penza We operate more than 100 unique phone numbers and process 40 000 incoming calls 24/7 Our THREE 24-hour TV Channels: «ТТС», «SHOP24» & «Domashny Magazine» with total coverage about 100 million viewers We buy 20 000 minutes of air time per month on central & cable TV Channels Operating from 3 studios (1 000 sq.m) and produce 100 000 minutes of original TV content per year TV signal is broadcasted to 35 million of apartments and houses with FIVE orbital satellites 6
LEOMAX Calendar of Success 24 HOURS/ 7 DAYS We sell a thousand of successful items LEOMAX MONTH We offer 100 new merchandising items per month. We deliver to 42 000 of Russian Post office around the country. LEOMAX YEAR 500 television commercials 1 000 000 of items 5 000 sq. m of storage space 10 000 SKU of merchandise range 10 000 of packages are processed in-house in our Logistics terminal Over 5 years of its existence, LEOMAX group of companies has amassed a wealth business experience, proving to be the leader in the market of TV shopping in Russia with multibillion annual sales.. 7
History August 2009 December 2009 January 2010 April 2010 May 2010 June 2010 «Euroshop» registration - the first company of the LEOMAX group of companies «TTS» «Television Trading Network» TV channel started 24-hour broadcasting Russia-wide. First product to be sold was the «Dusting Brush» Company's shipments reached 1000 orders per day. Every month 30 new promotion videos went on air Online shop www.ttstv.ru opens for customers. Publishing of first printed «TTS» catalogue Our ads are on air on «Music Box» and «Humor TV» television channels for the first time. Opening of first own Contact center in Moscow «Home» channel - second television channel starts broadcasting on «TricolorTV» program package September 2010 January 2011 September 2011 November 2011 Creation of 60-series television show Our Home Shop ($3 million budget). The heart comedy about life and work of TV shop employees was broadcasted on «Home» channel in 2010-2013 Beginning of broadcast of commercials on federal television channels «7TV» (currently «Disney»), «Zvezda», «CTC», «Peretz», «Home» channel. First publishing of monthly printed «Home Shop» catalogue with enlarged A4 pages «Style and Fashion» television channel starts broadcasting Sales of «Brillianit", the house brand of elite imitation jewelry, reach 4000 per day on New Year's festive season Over 1 million of various articles of these brand was sold during 2011 8
History January 2012 February 2012 September 2012 October 2012 Opening of logistics center in Domodedovo. The company becomes a member of ERA, the international association for television retail. «Style and Fashion» television channel receives Viewers Choice award in Best TV Shop nomination of the national award «Big Digit 2012». Valentin Yudashkin, couturier, becomes editor in chief of «Style and Fashion» channel. Opening of round the clock Contact center in Saratov for 350 employees. Due to the AVAYA equipment the Centre is able to withstand peak loads of 500 calls per minute. «Style and Fashion» channel receives second in the history of the channel award national award Golden Ray 2012 in «Best TV Shop» nomination. December 2012 «Domashny Capital» lending financial company is founded. September 2013 January 2014 April 2014 October 2014 Lending volume reaches over 100 million rubles per year. «Style and Fashion» channel changes its business model to «Live Home Shopping» (selling products live). Russian and foreign companies are consolidated into LEOMAX group. «LEOMAX DIRECT» office opens in Tampa (Florida). Transition to the new logistics centre «Tricolor» in Domodedovo. Rebranding of «Style and Fashion» channel to «SHOP24». Overall signal distribution of «SHOP24» television channel reaches 20 million of households with 60 million viewership. TO BE CONTINUED 9
Awards April 2015 «Internet Technologies» LLC - the best employer of 2014 in Saratov region! «Internet Technologies» LLC, one of the LEOMAX group of companies, won the contest for «Best employer 2014 for promotion of employment» in «Medium-sized enterprise». The contest was held by Ministry of employment, labour and migration for Saratov region. March 2015 «Internet Technologies» (LEOMAX GC) wins the annual international contest «Call-Center Awards-2015» («Crystal Headset») in «Best Big Contact centre» nomination. This contest is held among call-centre operators in Russia and CIA countries. 10
Awards November 2014 Oleg Kharuk, one of the LEOMAX executives, becomes a nominee in the international competition «Entrepreneur of the Year, 2014». October 2012 «Style and Fashion» television channel (currently «SHOP24») gets the «Golden Ray» award in «Best TV Shop» nomination. Giving away the award was the «First Channel» anchor, Anton Privolnov («Test Purchase» program). National Association of Television and Radio Broadcasting (NAT) sponsored the award. February 2012 «Style and Fashion» television channel (currently «SHOP24») gets the «Big Digit 2012 - Viewers Choice» award in «Best TV Shop» nomination. Giving away the award was Aleksandr Maslyakov (President of the «Club of Funny and Inventive»). 11
Business Model LEOMAX business model is unique: we control every step of the process from original idea to the search for the product and offering that product to customers. Customers have a choice how to make the purchase: over the phone with one of our CC; over the internet on our web-sites; or to buy products in retailing chains from one of our promotional stands with TV screens. 12
Our partners Gazprom Space Systems Connection services provider: transmitting TV signal to the satellite. Russian Post Delivery of packages with orders to 42 000 post stations all over Russia. Rostelecom TV signal distributor, delivering cable TV to each apartment in Moscow and about 2 million apartments all over Russia. Tricolor TV Three of our round-the-clock channels are delivered to 15 million subscribers as part of Tricolor TV program package. MTS «MTS» cable and digital television is how «SHOP24» channel is delivered to almost 2 million apartments. E&Y, PwC International auditor companies for our national and foreign companies. Provide annual audit services (financial figures, taxes, contracts) for our companies since 2011. 13
Our partners Everest=SТ Sales house of «CTC Media» group of companies, in charge for placement of our products commercials on three «СTC Media» channels, namely, «CTC», «Home» and «Peretz». X5 Retail Group, Auchan, DIXY Leading Russian retail companies. In the stores of these retail networks LEOMAX products are sold from the stands with TV screens. Usually the stores offer the products with top sales, sales hits, actively advertised on major TV channels. AVAYA Professional telephony solution that allows us to process 40 000 calls per day without interruption. AKADO «SHOP24» channel started broadcasting in «Acado» network since December, 19, 2015. Video International One of the biggest operators in media advertising market in Russia and East Europe. 14
Contact information Head Office Sharikopodshipnikovskaya str.13, bldg.62 Moscow, 115088, Russia Office: +7 (495) 967-77-97 WWW.LEOMAXGROUP.COM WWW.SHOP24.COM Oleg.Kharuk@leomax.ru