DETSKY MIR GROUP ANNOUNCES 2012 FINANCIAL RESULTS April 11, 2013, , . Detsky Mir Group (“Group”) – Russia’s largest children’s goods retailer – has announced its US GAAP 2012 financial results. FINANCIAL HIGHLIGHTS o Revenue rose 20.6% (14.0% in dollar terms) over 2011 to reach RUB 27,753 million (USD 893 million). o LFL sales1 at company stores rose 5.7%. o Gross profit was up 22.2% (15.5% in dollar terms) to RUB 10,998 million (USD 354 million). Gross margin increased 0.5 pp to 39.6% in 2012. o Commercial and administrative expenses were down 2.2 pp to 33.7% of revenue. o OIBDA2 came to RUB 1,682 million (USD 54 million) in 2012, a 108.7% increase on 2011. OIBDA margin increased 2.6 pp in 2012 to 6.1%. o Group net profit for 2012 was RUB 456 million (USD 15 million), compared to a RUB 217 million (USD 7 million) loss in 2011. o Group net debt was down 15.5% in 2012 to RUB 1,366 million (USD 45 million). o Net debt/OIBDA stood at 0.8x at the end of 2012, compared to 2.0х in 2011. o Group operating cash flow in 2012 rose 42.3% to RUB 1,578 million (USD 51 million). KEY BUSINESS RESULTS AND CORPORATE EVENTS o Vladimir Chirakhov moved from commercial director to CEO of JSC Detsky Mir – Center, the group’s management company, in October 2012. Vladimir replaces Gennady Levkin. Before joining Detsky Mir, Vladimir spent several years in leading positions with M.Video and Korablik. o In July 2012, JSC Detsky Mir – Center acquired LLC Kub Market, which was developing a chain of Early Learning Centre (ELC) franchises in Russia. ELC is growing fast and ended 2012 with 20 branded stores, several corners in Detsky Mir stores, and an online store. o Detsky Mir’s share of the RF children’s goods market rose 0.6 pp in 2012 to reach 7.1%. o 47 Detsky Mir and 1 ELC store were opened in 2012, with 1 Detsky Mir store closed. Detsky Mir Group ended 2012 with 216 stores3, and total retail space up 23.3% to 291,000 sq. m. o In 2012 the online store expanded its coverage from 13 Russian cities to 66. Commenting on the 2012 results, Detsky Mir Group CEO Vladimir Chirakhov said that: “Last year was not just a period of rapid expansion for Detsky Mir, financial results also improved: new commercial policy, responsive marketing, and cost rationalization helped make the Group profitable by US GAAP, compared to losses a year earlier. Effective cost management brought down expenses as a share of revenue. Detsky Mir opened 47 stores, acquired the ELC chain, and enjoyed strong growth in online sales – all this reinforced Detsky Mir’s position as a national leader – by the end of 2012 the Detsky Mir chain had 195 superstores in 97 cities of Russia and , 20 ELC stores in Moscow and Surgut, the detmir.ru online store rolled out coverage to more than five times as many cities, and revenue more than tripled. The Group is aiming to maintain the pace of growth this year, with at least 40 new Detsky Mir stores to be opened – both in major cities with existing stores and in towns of 50,000 or more residents. The development plans also include choosing a site for a new flagship store. We also plan to continue improvements in store

1 LFL – Detsky Mir stores operating full 2011 and 2012. 2 Operating Income Before Depreciation and Amortization. 3 195 Detsky Mir stores, Yakimanka Children’s Gallery and 20 ELC stores.

1 formats: the latest equipment, new merchandizing standards, advanced retail technology, original visual solutions – all this will provide noticeable improvements in efficiency, and make stores more attractive and convenient to customers. Pricing and procurement policies will be more aggressive, there will be an emphasis on private label – we expect this to have a positive impact on new price positioning and the formation of a competitive product range.” KEY FINANCIAL AND BUSINESS RESULTS Year RUB mln 2012 2011 Change Sales revenue (RUB mln) 27 753 23 007 20.6% Gross profit (RUB mln) 10 998 9 000 22.2% Gross margin (%) 39.6% 39.1% 0.5 pp OIBDA (RUB mln) 1 682 806 108.7% OIBDA margin (%) 6.1% 3.5% 2.6 pp Net profit/loss (RUB mln) 456 -217 Number of stores 216 150 44% Retail space (000 sq. m) 291 236 23.3% Revenue and gross profit 2012 revenue totaled RUB 27,753 million, an increase of 20.6% (14.0% in dollar terms) over 2011. The growth was generated by new store openings and an increase in LFL sales of 5.7% in 2012. The share of Detsky Mir stores outside Moscow and Moscow region increased to 63.0% of total revenue in 2012. Year Revenue distribution by macro-region, RUB mln 2012 2011 Change Moscow and Moscow region 37.0% 40.5% -3.6 pp Central Federal District (except M&MR) 10.4% 10.7% -0.2 pp Northwest Federal District 10.9% 10.2% 0.8 pp Volga Federal District 19.0% 17.9% 1.1 pp South and North Caucasus Federal District 6.7% 5.9% 0.8 pp Urals Federal District 8.5% 8.1% 0.4 pp Siberian Federal District 6.7% 6.7% -0.0 pp Kazakhstan 0.8% 0.1% 0.7 pp Customer traffic in Detsky Mir stores rose 14% in 2012 compared to 2011 to reach 79 million. Gross profit was up 22.2% in 2012 compared to 2011, reaching RUB 10,998 million. Gross margin increased 0.5 pp over the previous year to 39.6%. OIBDA and commercial and administrative costs Year RUB mln 2012 2011 Change Rent and utilities 3 722 3 028 22.9% Employees 3 854 3 500 10.1% Marketing 146 298 -50.9%

Other 1 632 1 427 14.3% Total 9 354 8 254 13.3% Commercial and administrative costs as % of revenue 33.7% 35.9% -2.2 pp Measures implemented to control spending during the reporting period were successful in keeping the increase in commercial and administrative expenses below the rate of revenue growth, resulting in costs 2 falling to 33.7% of revenue in 2012, compared to 35.9% in 2011. In absolute terms the expansion of the retail chain resulted in commercial and administrative expenses increase by 13.3% over 2011 to reach RUB 9,354 million. In 2012 OIBDA more than doubled over 2011 to RUB 1,682 million. OIBDA margin rose 2.6 pp in 2012 to reach 6.1%. Net profit and operating cash flow Detsky Mir Group’s net interest expenses rose 28.9% to RUB 384 million in 2012, primarily due to the use of loan financing during the course of the year. Exchange rate profits came to RUB 27 million, compared to a loss of RUB 108 million in the previous year. Net profit came to RUB 456 million in 2012, compared to a loss of RUB 217 million a year ago. Operating cash flow for the reporting period was RUB 1,579 million rubles, a 42.0% increase over 2011. Financing and debt The Detsky Mir Group’s debt burden remains at a comfortable level. Net debt, calculated as long-term and short-term obligations less cash and equivalents, fell 15.5% over the year to RUB 1,366 million. Net debt/OIBDA at the end of 2012 was 0.8x, compared to 2.0х in 2011. Long-term debt makes up 80.0% of the debt portfolio. As of the end of 2012, the company has practically no outstanding obligations in a currency other than its revenue currency. The Detsky Mir Group ended 2012 with debt of RUB 2,998 million, 25.8% lower than at the end of 2011. Available cash accounted for RUB 1,631 million. The Group will use its own and borrowed funds to continue expanding the business. Capital expenditure The Group’s capital expenditure in 2012 was RUB 860 million, primarily for expansion and support of the retail network, as well as developing IT systems. Additional information: Elizaveta Totunova, Head of PR: [email protected], + 7 (985) 212-81-24

Detsky Mir Group is Russia’s largest children’s goods retailer. The Group’s retail network includes the Detsky Mir chain in Russia and Kazakhstan, the Yakimanka Children’s Gallery luxury center, ELC chain, the Detsky Mir and ELC online stores. The Detsky Mir retail network currently comprises 197 Detsky Mir stores and superstores across 99 cities in Russia and Kazakhstan, ELC chain comprises 20 franchise stores. Total retail space is over 290,000 sq. m. The managing company of the Group is JSC Detsky Mir – Center, the principal shareholders of which are JSFC (75%-1 share) and (25%+1 share). Detsky Mir Group websites:www.detmir.ru, www.yakimankagallery.ru, www.elc-russia.ru. JSFC Sistema is the largest public diversified holding company in Russia and the CIS, serving more than 100 million customers in sectors such as telecommunications, high technology, fuel and energy, radio and aerospace technologies, banking, retail, media, tourism, and medical services. The company had third quarter 2012 earnings of USD 8.8 billion; total assets as at September 30, 2012 stood at USD 46.3 billion. JSFC Sistema global depositary receipts are listed under SSA on the London Stock Exchange. Ordinary shares are listed under AFKS on the MICEX-RTS stock exchange, and under SIST on the Moscow Stock Exchange. JSFC Sistema is at 315 on the Fortune Global 500. Its website is www.sistema.ru. OAO Sberbank of Russia is Russia's largest bank with approximately one-third of the Russian banking system’s assets. The founder and main shareholder of OAO Sberbank of Russia is the Central Bank of the Russian Federation, which owns 50% of charter capital plus one voting share. International and Russian investors make up the remainder of the Bank’s shareholders. Sberbank has more than 100 million individual customers and 1 million corporate clients. The Bank has the most extensive branch network in Russia: 18,000 branches and internal structural divisions. The Bank has a network of subsidiaries, branches, and representative offices in 20 countries, including the CIS, Central and Eastern European countries, and Turkey. Bank website: www.sberbank.ru. This document may contain certain forward-looking statements about Detsky Mir Group or its subsidiaries and affiliates. Such statements contain expressions such as "expects", "estimates", "intends", "will", "could be", and the negative form thereof or any other similar expressions. Please note that these statements constitute assumptions only and that the actual events or results may materially differ from the assumptions. We do not undertake to update these statements to reflect actual facts or circumstances which may arise after the date hereof or reflect the events which are not currently expected to take place. The actual results of Detsky Mir Group and its subsidiaries and affiliates may materially differ from those in our forecasts and forward-looking statements due to a number of factors, including the general economic situation, the competitive environment in which we operate, risks of doing business in Russia, rapid changes in technology and the market, and a number of other risks inherent to Detsky Mir Group and its business.

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