Investor Presentation2q & 1H 2012 Investor Presentation Disclaimer

Investor presentation2Q & 1H 2012 Investor Presentation Disclaimer THESE MATERIALS DO NOT CONSTITUTE A PROSPECTUS OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, OR ANY OFFER TO UNDERWRITE OR OTHERWISE ACQUIRE ANY EQUITY OR OTHER SECURITIES OF THE COMPANY, NOR SHALL THEY OR ANY PART OF THEM NOR THE FACT OF THEIR DISTRIBUTION OR COMMUNICATION FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION IN RELATION THERETO, NOR DOES IT CONSTITUTE A RECOMMENDATION REGARDING ANY SECURITIES OF THE COMPANY.NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS GIVEN AS TO THE ACCURACY OF THE INFORMATION OR OPINIONS CONTAINED IN THESEMATERIALS AND NO LIABILITY IS ACCEPTED FOR ANY SUCH INFORMATION OR OPINIONS BY THE COMPANY OR ANY OF ITS AFFILIATES, DIRECTORS, MEMBERS, OFFICERS, EMPLOYEES, AGENTS OR ADVISERS. THESE MATERIALS ARE NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR IN ANY OTHER JURISDICTION. THE SECURITIES OF THECOMPANY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATESABSENT REGISTRATION OR PURSUANT TO AN EXEMPTION FROM (OR IN A TRANSACTION NOT SUBJECT TO) THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFER OF SECURITIES OF THE COMPANY IN AUSTRALIA, CANADA OR JAPAN. THESE MATERIALS MUST NOT BE SENT, TRANSMITTED OR OTHERWISE DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, RUSSIA OR JAPAN OR TO ANY SECURITIES ANALYST OR OTHER PERSON IN ANY OF THOSE JURISDICTIONS. THESE MATERIALS DO NOT CONSTITUTE A PUBLIC OFFER OR AN INVITATION TO MAKE OFFERS, SELL, PURCHASE, EXCHANGE OR TRANSFER ANY SECURITIES IN RUSSIA, OR TO OR FOR THE BENEFIT OF ANY RUSSIAN PERSON, OR ANY PERSON IN RUSSIA, AND DOES NOT CONSTITUTE AN ADVERTISEMENT OF ANY SECURITIES IN RUSSIA. THESE MATERIALS CONTAIN INFORMATION ABOUT THE MARKETS IN WHICH THE COMPANY COMPETES, INCLUDING MARKET GROWTH, MARKET SIZE AND MARKET SEGMENT SIZES, MARKET SHARE INFORMATION AND INFORMATION ON THE COMPANY'S COMPETITIVE POSITION. THIS INFORMATION HAS NOT BEEN VERIFIED BY INDEPENDENT EXPERTS OR ASSEMBLEDCOLLECTIVELY, AND THERE IS NO GUARANTEE THAT THESE ESTIMATES ARE ACCURATE OR COMPLETE AND NOT MISLEADING NOR THAT THE COMPANY'S DEFINITION OF ITS MARKETS IS ACCURATE OR COMPLETE AND NOT MISLEADING. THE INFORMATION INCLUDED IN THESE MATERIALS IS SUBJECT TO UPDATING, COMPLETION, REVISION AND AMENDMENT AND SUCH INFORMATION MAY CHANGE MATERIALLY. SOME OF THE INFORMATION IS IN DRAFT FORM AND HAS NOT BEEN VERIFIED. THE FINANCIAL INFORMATION INCLUDED HEREIN IS IN DRAFT FORM AND IS UNAUDITED.NO PERSON IS UNDER ANY OBLIGATION TO UPDATE OR KEEP CURRENT THE INFORMATION CONTAINED IN THE PRESENTATION AND THESE MATERIALSAND ANY OPINIONS EXPRESSED IN RELATION THERETO ARE SUBJECT TO CHANGE WITHOUT NOTICE. THESE MATERIALS INCLUDE FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY'S INTENTIONS, BELIEFS OR CURRENT EXPECTATIONS. FORWARD-LOOKING STATEMENTS INVOLVE ALL MATTERS THAT ARE NOT HISTORICAL FACT. FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF WORDS INCLUDING “MAY”, “WILL”, “WOULD”,“SHOULD”, “EXPECT”, “INTEND”, “ESTIMATE”, “ANTICIPATE”, “PROJECT”, “BELIEVE”, “SEEK”, “PLAN”, “PREDICT”, “CONTINUE” AND SIMILAR EXPRESSIONS OR THEIR NEGATIVES. SUCH STATEMENTS ARE MADEON THE BASIS OF ASSUMPTIONS AND EXPECTATIONS WHICH, ALTHOUGH THE COMPANY BELIEVES THEM TO BE REASONABLE AT THIS TIME, MAY PROVE TO BE ERRONEOUS. FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS AND OTHER FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS OF OPERATIONS, FINANCIAL CONDITION, LIQUIDITY, PERFORMANCE, PROSPECTS OR OPPORTUNITIES, AS WELL AS THOSE OF THE MARKETS IT SERVES OR INTENDS TO SERVE, TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN, OR SUGGESTED BY, THESE FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE THOSE DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO: CHANGING BUSINESS OR OTHER MARKET CONDITIONS, GENERAL ECONOMIC CONDITIONS IN RUSSIA, THE EUROPEAN UNION, THE UNITED STATES AND ELSEWHERE, AND THE COMPANY'S ABILITY TO RESPOND TO TRENDS IN ITS INDUSTRY. ADDITIONAL FACTORS COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY. THE COMPANY AND EACH OF ITS DIRECTORS, OFFICERS, EMPLOYEES AND ADVISORS EXPRESSLY DISCLAIM ANY OBLIGATION OR UNDERTAKING TO RELEASE ANY UPDATE OF OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION AND ANY CHANGE IN THE COMPANY’S EXPECTATIONS OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH THESE FORWARD LOOKING STATEMENTS ARE BASED EXCEPT AS REQUIRED BY APPLICABLE LAW OR REGULATION BY ATTENDING THIS FORWARD-BASED, REGULATION.PRESENTATION YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. 1 Content Introduction 3 Strategy & Outlook 8 2Q & 1H 2012 Operational and Financial Review 14 Appendix 24 2 DIXY Group at Glance Sales Breakdown by Region Over 20 years presence in the market, since 1992 DIXY Group is the 3rd largest national food retailer with revenue USD 4.1 bln in FY2011, selling space 446 ths. sq.m. and 1,284 stores (as of July 31, 2012) • Acquisition of Victoria Group in June 2011 contributed over 50% of revenue and selling space, and over 250 stores DIXY Group historically focuses on the neighborhood stores format • Fast and convenient neighboring store experience with Sales Breakdown by Format strong track record of organic growth • Neighborhood stores accounts for nearly 80% of the selling space and revenue DIXY Group sells food and non-food products to over 500 million customers in almost 400 places across Russia IPO at Russian Stock Exchange in 2007, raised US$360 mln Market capitalization as of September 01, 2012 is US$1.4 bln 3 Source: Company data 1H 2012 Our Formats: Key Facts and Numbers Focus on Neighborhood Format Complemented by Strong Supermarket Brands Neighborhood Supermarket Compact Hypermarket Number of stores 1,045 183 11 26 18 1 Average store selling space (sqm) 274 358 718 1,705 2,111 3,051 Product range (SKUs) 2,000-3,500 2,500-6,000 7,500 20,000 20,500 19,000 Food/Non-food 90%/10% 92%/8% 88%/12% 87%/13% 79%/21% 83%/17% Average ticket (RUB) 249 239 426 495 573 2,210 •Near public transportation hubs in • People living in close walking •People living within 5 min by car/15 areas with low or limited competition Target audience proximity of 5–10 min min walking distance •People living in 10 min by car / 30 •In populated residential districts •In populated residential districts min by public transport 4 Source: Company data for July 2012 Our Geographical Footprint Russia's Per Capita Income by Region 1–20 stores Murmansk South 16,3 Over 20 stores Vologda Karelia DIXY Group DC Siberia 16,4 Kostroma Victoria Group DC Ivanovo Saint Petersburg and Volga 17,1 Leningrad region Novgorod Russia 20,7 Kaliningrad NW 21,3 Pskov Urals 22,9 Yaroslavl’ Far East 23,1 Smolensk Vladimir Moscow and Central 26,7 Moscow region Source: RosStat, 2011 Kaluga Tula Serpukhov Russia's Retail Revenue Our geography evolution Ryazan’ Yekaterinburg Tyumen’ by Region (# of Stores) Chelyabinsk 1,276 93 353 Central 35% 646 Others 77 47% 181 Presence in almost 400 places across Russia 830 388 North- Penetration in the most prospective regions West 2010 1H 2012 representing more than 50% of Russian retail Urals 9% market, and with the highest per capita income 9% Central NW Urals Source: RosStat, 2011 Source: Company data 1H 2012 5 Source: Company Data 1H 2012 Strong Track Record of Growth Beginning. Going Public Building Platform Intensive & Extensive Growth 1992 – 2008 2008 – 2010 2011 – current 1992 – founded as a wholesale 2008 – Mercury Group becomes major 2011 – Marketing turn-around of DIXY distributor shareholder chain: new market positioning, rebranding 1995 – First Megamart store opened Supply chain restructuring. New IT system and differentiation strategy implantation starts 1999 – First DIXY retail store opened Aldata GOLD (used by Tesco, Ahold, Carrefour and Casino) introduced 2011- DIXY Group acquires Victoria Group 2004 – Private equity funds acquire rd Company centralization accomplished and becomes the 3 largest national food stakes in DIXY Group retailer by revenue, selling space and 2007 - IPO at RTS (raised $360mln) 2010 - New marketing team develops DIXY number of stores chain re-positioning strategy 2011 – Record # of 255 stores opened DIXY Group Revenue and Number of Stores 1 200 1,119 1 000 122 800 646 537 600 493 388 65 400 48 54 200 37 0 2007 2008 2009 2010 2011 Revenue, bln RUR # of Stores 6 Source: Company data Content Introduction 3 Strategy & Outlook 8 2Q & 1H 2012 Operational and Financial Review 14 Appendix 24 7 Russian Retail Market One of the largest food retail Undersupply of Top-5 food retail chains’ market markets in Europe… neighborhood stores… share by country ($bn) 322 84% 83% 286 76% 257 237 235 66% 64% 62% 54% Russia avg. 19 48% 128 41% 89 26% 53 44 44 17% Europe avg. 111 - UK Italy Italy Spain USA land Russia France Poland Spain Greece Ukraine Switzer Russia France Czech Czech United United Germany Sweden Portugal Hungary Republic Kingdom Source: Planet Retail for 2011 for forecourt and Germany Source: Planet Retail, 2011 Source: Planet Retail, 2011 convenience stores …with one of the lowest rates of …underpinning significant Russia’s Top food retail chains modern retail penetration growth potential market share Russia 0,1% 88% 86% 86% 6,2% Belgium 2,6% 4,6% 72% 70% 3,0% Denmark 2,6% X5 53% 47% 1,4% 42% 42% Norway 3,7% 34% 1,3% Magnit Switzerland 4,2% Auchan Luxem- … 4,6% DIXY - UK 10,0% UK O'Key Italy Ireland 11,5% Spain land Russia France Poland Greece Ukraine Other Switzer Germany Source: Planet Retail for 2011 for forecourt and 83,5% Source: Planet Retail, 2011 convenience stores Source: Planet Retail, 2011 8 8 Our Growth Strategy DIXY Mission: Always concerned about the wellbeing of our customers, we guarantee a pleasant everyday shopping experience by offering high-quality goods at a good price, providing fast, considerate service, and planning convenient store locations and operating hours.

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