QUARTERLY INVESTOR REPORT 2nd Quarter 2020

• AIA Ecosystem is the new company name • of OSA Hybrid Platform since March 26, 2020 • See the company’s press release for more information CONTENTS

Foreword 3

Executive summary 4

Industry news 5

Company news 7

Sales update 9

Retail services update 10

Product development update 11

Team news 13

Fundraising update 13

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AIA – Your AI Advantage! FOREWORD

Dear Partners,

Greetings from AIA Ecosystem, an industry leader in retail tech providing a full range of product availability and smart task management, education for store staff, real time analytics and business intelligence services to retailers and manufacturers of consumer packaged goods (CPG), and the developer of OSA Hybrid Platform, an AI-driven and industry-proven platform that solves on-shelf product availability issues in real time and provides immediate actions to drive availability, sales and store labor!

As a reminder, AIA Ecosystem is the new name for OSA Hybrid Platform portfolio of retail tech solutions, that reflects both the evolution of the company from its beginnings as an on-shelf availability (OSA) solution, as well as its vision for the future as an AI-based online-to-offline (O2O) retail services ecosystem, encompassing the full range of business processes. The name change announcement was made on March 26, 2020, and we will be using the new company name for our investor reports henceforth.

The spike in demand for grocery items that was characteristic of early days of quarantine at the end of March, had subsided and was replaced by a significant slump in overall sales while the average purchase size grew as shoppers were limiting store visits and buying more per shopping trip. The online channel continues to grow exponentially, however the consumer purchasing power outlook remains in the negative. And while the market continues to grapple with ever-changing pandemic and post-pandemic reality, AIA continues to work, creating results on all fronts, and with this second quarterly investor report of 2020, we are reporting on April, May and June developments at AIA, such as sales and product updates, team and company news, along with industry news relevant to our key markets, customers and lines of business.

Should you have any questions or require more information, please do not hesitate to contact our CEO Alex Isaiev at [email protected].

Sincerely,

AIA Ecosystem (OSA Hybrid Platform) Team

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AIA – Your AI Advantage! EXECUTIVE SUMMARY

In the months of April, May and June, despite uncertainty brought on by the current coronavirus pandemic and the overall decline in business activity, AIA Ecosystem (OSA Hybrid Platform) demonstrated steady growth - we signed contracts with the new CPG clients, such as Mondelez and Global Spirits, delivered results in the form of sales growth to our key retail partners and Magnit, added new functionality to our product, such as features for uploading promo data enriched with a full set of attributes, uploading roll cage data, aggregated analytics data, and Air Flow reports, we also added barcode scanning functionality to our mobile application and launched the algorithms for fast-moving products, the company has successfully passed the rigorous due diligence process for our further fundraising activity and added new members to our product teams in and Kiev.

Read on to get a closer look at these developments, get company and industry news, sales updates, and more!

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AIA – Your AI Advantage! INDUSTRY NEWS

CPG retail market trends

Nielsen, a global leader in industry analytics, has released the new estimates for Russian consumer market. According to these estimates, the market should expect a period of stagnation. “There was a high demand period, when the sales exceeded even the high numbers usually seen before the New Years, - the company explained. However, we are now entering a consumer “winter”. We have already seen the negative sales dynamic in May, and we expect further stagnation. With that said, the online channel demonstrates record growth. Its share of the market grew from 1.8% to 3% in a matter of weeks. Nielsen calculates that this number could be even bigger, if not for the logistics constraints experienced by the online segment, made worse by the lack of available inventory and shortage of delivery personnel. Nevertheless, as the traditional retail channels continue to lose sales, the online channel is expected to grow to 5% and more.

This forecast is further confirmed by another Nielsen research. According to Nielsen, 15% of respondents are buying their groceries online more often than before. “The unprecedented demand that we have seen in the last few weeks brought on many surprises, catching unawares retailers, manufacturers and shoppers alike. And cafes and restaurants closures pushed consumers to prepare food at home, switching preferences from on-the-go to at-home consumption,” - says a representative from Nielsen.

After the booming demand for consumer products at the end of March, the CPG retail sales in fell abruptly due to quarantine restrictions and penalties for those who failed to comply. According to the data from INFOLine agency, the sales figures showed a significant decline in bakeries (-34%), super- and minimarkets (-31%), specialized grocery stores (-15%), beer (-9%) and alcohol (-7%) stores. The overall demand for grocery items also shows a negative dynamic: only 11% of respondents said they wanted to stock up on groceries, and 43% said that they had already bought what they needed to survive for the period of stay-at-home orders.

This information is consistent with the data released by the Association of retail companies (AKORT): from March 30 to April 5, the number of shoppers at grocery stores fell by 20-30% compared to the week of March 16. The hypermarkets saw an even sharper decline in traffic - by 40-60%.

The decline in the number of shoppers was also confirmed by the largest retailers, such as , Magnit, Lenta, and Azbuka Vkusa. One of the reasons for the decline was the lack of information on quarantine “do’s and don'ts” at the time of self-isolation. Another reason was that a large share of shoppers had already stocked up on groceries, and others have switched to buying their groceries online. The representatives of Magnit and X5 said that the decline in traffic was somewhat compensated by a larger size of the average purchase. For example, X5 shoppers were spending 1.5 times more per shopping trip than before the quarantine restrictions.

At the same time, the largest industry players have intensified their online activities, introducing their own online stores and grocery delivery services. Notably, Perekrestok and (X5 Retail Group) are implementing the service of express delivery in the largest cities in Russia. At Pyaterochka, the daily orders have reached 10,000 and continue to grow. The trend was also embraced by Lenta, the last of the large retailers that up until recently didn’t have its own online store.

Retailers’ news

AIA’s (OSA’s) key retail partner Magnit retail chain has announced its Q1 2020 financial results. The revenue grew by 18.5% year-on-year, to 376 billion rubles ($5.3 billion) while net retail revenue grew by 17.6%, to 364.8 billion rubles ($5.1 billion). The quarter-on-quarter sales grew by 7.8% together with the growth of average purchase size by 3.7% and traffic by 4.0%. 5

AIA – Your AI Advantage! In mid-May, Magnit announced that it had launched a new team that will be tasked with accelerating the digital transformation of Magnit business. The team will be led by Florian Jansen, who will become an Executive Director of the company and one of the three deputy general directors, supporting Jan Dunning. Together with the new appointee, Magnit is attracting a highly professional team of former Lamoda top managers - Director of Transformation Paul Rogowski, Director of Analytics and Data Management Fabian Schaefer, Director of Information Technologies Valentin Schitov and Director of Innovation Development and Partnerships Pavel Orlov. The new team will spearhead the full scale digital transformation process at Magnit in alignment with the company strategy. AIA (OSA) welcomes these new appointments and plans to continue to support Magnit growth and digital transformation.

At the end of May, Dixy Group (also our retail partner, where OSA platform is rolled out in all Dixy stores), announced the appointment of Vyacheslav Sultanov, one of top managers at Megapolis Group, as the new CEO. Mr. Sultanov started his new duties on May 28, 2020 and has taken up effective business development of Dixy Group as his key objective. Vyacheslav Sultanov has extensive experience in distribution and retail, and has been holding leadership roles at Mercury Group for the last 20 years. In the new role of CEO, Mr. Sultanov is replacing Igor Pletnev, who decided to leave Dixy Group. AIA (OSA) expects that the new CEO will soon have an opportunity to appreciate the benefits and results of OSA Hybrid Platform, and that the partnership with Dixy will be taken to a new level.

The quarterly net revenue growth at X5 Retail Group (Pyaterochka, Perekrestok and Karusel retail chains) was reported to reach 15.9% year-on-year or 468.4 billion rubles ($6.7 billion). These results were brought on by the sales growth of 5.7% and square footage growth of 11% compared to the previous quarter. In the first quarter of 2020, X5 opened 361 new stores.

In the first quarter of 2020, O’Key hypermarket chain reported 3.7% net revenue growth year-on-year, up to 36.7 billion rubles ($520 million). The main reason for the growth is the 3.6% increase in average purchase size.

Commersant newspaper reported that the revenue of Auchan retail chain in Russia has declined by 17%. The reasons given were the absence of smaller grocery store format and poorly developed online channel, both of which make Auchan look bad, especially compared to its competitors. While other retail chains capitalized on booming demand right before and during the quarantine, Auchan’s revenue in April shrank 25% year-on-year, and in May by 17%. The traffic fell by 25-66% depending on the day of the week and retail format.

Lenta retail chain has announced its plans to optimize its ecosystem for testing and implementation of innovations, as well as to strengthen its collaboration with startups in order to support the company transformation and find a new successful client-oriented retail model. To initiate the systematic work in this direction, Lenta has created an Innovation Center, which is responsible for consumer research and selection and testing of external solutions that may help improve the company’s offer. Currently, the project portfolio includes around 200 initiatives, 60 of which are being assessed for business value.

CPG clients’ news

Our client Unilever has withdrawn its previous forecast for 2020. The company representatives are saying that it is difficult to ensure a quality forecast of how their business will be affected by the current pandemic. Despite challenging conditions brought on by COVID-19, the company’s revenue in the first quarter of 2020 stayed pretty much at the same level - 12.4 billion euro ($14.01 billion), representing a 0.2% growth year-on-year. Nevertheless, this result is below the forecast of 12.77 billion euro ($14.43 billion). The store closures around the world have influenced shopper behavior. The categories that demonstrated the most sales were hygiene products (soap, shower gel, etc.) and instant food items, such as Knorr instant soups. At the same time, other product categories, such as ice cream, showed a rapid decrease in sales.

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AIA – Your AI Advantage! Coronavirus pandemic has also boosted sales of Nestle, another AIA (OSA HP) client. The Swiss multinational company has announced its largest quarterly growth in the last five years. Due to pandemic, the consumers were stocking up on coffee, pet food, frozen goods and other products. March spike in sales in North America and Europe resulted in quarterly sales growth of 4.3%. Pet food sales grew more than 10%. The only category that showed a decrease in sales was bottled water. PepsiCo, one of our biggest clients, has surprised industry analysts by its quarterly results: instead of the forecasted 3.6%, the company demonstrated a 7.9% sales growth despite the ongoing crisis. PepsiCo has outdone even its long-time rival Coca-Cola thanks to the rapid response to the changing consumer needs. According to company representatives, PepsiCo has cut down on beverages in order to boost the production of potato chips and ready-to-eat breakfast foods with the understanding that consumers who now had to stay and work from home will prefer snacks to beverages.

COMPANY NEWS

In May, we assessed the results of the first stage of OSA service implementation at Magnit stores. The project took place from November 2019 to April 2020. The platform was rolled out across 1 180 Magnit stores in Moscow and Moscow region, and the project was supported by 12 CPG clients. The key result of the service rollout was the sales growth by 5.8 percentage points (p.p.) at benchmark stores vs. control group. The project also identified the 10% sales growth potential, provided the service is rolled out to the entire retail chain, the task processing discipline is monitored and controlled, and the new improved business processes are implemented. More information on the project results can be found in the “Retail services update” section on page 10 of this report.

On June 23, AIA Ecosystem (OSA Hybrid Platform) became a participant of Skolkovo Innovation Center. The status of Skolkovo participant (resident) represents not only a symbolic seal of approval and certain prestige, it also offers a number of benefits that the company gets through the support of Skolkovo Foundation. Skolkovo participants can access a full range of services provided by the Innovation Center, for example fundraising support, acceleration and promotion programs, grants, access to office and laboratory facilities, mentorship program, support in International, regional and CIS business development, simplified process of getting government permissions and licenses, R&D services, legal support and much more. OSA Hybrid Platform solution was thoroughly analyzed and assessed by the Expert Panel of the Center for Development and Commercialization of New Technologies. The panel members have considered the OSA solution in terms of its competitive advantage, commercialization potential, technical feasibility and professional expertise of the company’s team, and have unanimously approved AIA’s application to acquire Skolkovo participant status.

AIA (OSA) has signed a partnership agreement with Retail Services, a Russian developer of logistics solutions for retail. The purpose of partnership is to ensure the full coverage of business processes across the entire supply chain, from the manufacturer to the grocery shelf. Retail Services will provide their expertise for the supply chain segment between manufacturer and retail store, and thanks to their support we will be able to analyse all logistics data, monitor the supply chain performance, receive and integrate the inventory and forecast data, as well as control service level KPIs. Retail Services have also supported the development of Online Radar, the new service in AIA portfolio (a detailed description of Online Radar can be found in the “Retail services update” section on page 11 of this report). It is also expected that Retail Services will support OSA Hybrid Platform sales. As of the time of this writing, we have created two additional dashboards in Redash in collaboration with Retail Services, and are allowing our clients to use them free of charge provided they will sign up for a full service after a 2-month trial period.

In May, the company updated the vision of product and service development under the umbrella of AIA Ecosystem. The vision involves the consolidation of solutions under the AIA brand. The product portfolio will include:

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AIA – Your AI Advantage! • OSA Hybrid Platform - the solution that is already developed and is commercially successful • Online Radar: monitoring and controlling of sales and availability - the service that is already developed, launched and is currently being set up and tested by the clients • Catman* Review Deck and Catman Radar - is being developed • IT hub infrastructure - is already developed • Service for the development of machine learning solutions - has developed a demand forecast model for promo periods • Master application for managing resources at the store level - the development has started in the second quarter of 2020 • Retail Cloud, a cloud-based solution that includes full infrastructure for collecting, storing and processing of data, training of machine learning models, as well as the server facilities themselves, with the partially open code for the quick integration by retailers, manufacturers and service providers - in the pipeline for development.

In June, the company started the preparation for the testing of planogram management solution in collaboration with Inspector Cloud, a Russian SaaS solution provider for retail audits. Provided the results of the testing are successful and the quality synergy with OSA Hybrid Platform is achieved, the next step will be the integration and launching of new functionality that will strengthen the AIA’s portfolio and services offer, and will provide opportunities for additional revenue.

AIA (OSA) is entering the Kazakhstan market with OSA Hybrid Platform. The company has reached the agreement with Magnum, the largest retail chain in Kazakhstan, which will become our paying retail client and will also cooperate with the company under revenue share model, selling OSA service to their suppliers and getting 50% of revenue. This way, Magnum will become our largest client in terms of revenue. The first payment under the new contract is expected in early July 2020. According to the plan agreed upon by the two companies, AIA will integrate OSA Hybrid Platform within the first 6 months and will start receiving data and calculating KPIs, identify product availability issues and pilot the alerting service. After 6 months, the plan is to start involving the suppliers. By the end of year 3, we expect to receive around $3 million in revenue from this project. Moreover, thanks to entering the market together with its largest player, the company will have an opportunity to engage other retail chains operating in Kazakhstan, such as Anvar, Skif and Metro Cash & Carry. We expect to launch each new retailer on a quarterly basis, starting in June 2021.

In May and June, the company has updated its business development strategy for Russia and International markets. In addition to our standard business model, where the basic service is provided to the retailer free of charge, and the retailer pays for additional services, while the manufacturer pays for both basic and additional services (Model #1), the company has decided to introduce two other revenue models: • Model #2: the creation of a joint venture (JV) with large retail chains and the transfer of the share of JV to them. The actual share will depend on the degree of retailer’s participation in costs and revenue generation. • Model #3: the basic service is paid for by the retailer, who is pitching and selling OSA services to its suppliers and receives 50% of the proceeds generated from the suppliers. Based on the market research we conducted, Model #3 can be interesting for regional retailers in Russia and CIS, while Model #2 is perceived favorably by the larger retailers and addresses most of retailers’ concerns prior to integrating the service.

The OSA solution was recruited by the Ministry of Trade and Industry of Russia in order to support the initiative of monitoring product availability and prices at grocery stores across the entire country. This project is being undertaken in partnership with Russian Association of Retail Market Experts. The project implementation will allow AIA (OSA) to penetrate into more than 100 000 stores across Russia from the moment the company receives funding under the upcoming investment round. A similar initiative is being discussed by the company with the Ministry of Economic Development and Trade of Ukraine.

* Catman – category management 8

AIA – Your AI Advantage! AIA’s CEO Alex Isaiev has joined the Board of Russian Association of Retail Market Experts. Participation in this industry organization will provide opportunities for the company to promote its services within the expert community. SALES UPDATE On April 1, the company signed a contract with Mondelez, a #3 confectionary and snack foods producer in the world, present in over 150 countries. With 2019 global net revenues of approximately $26 billion, Mondelez is leading the future of snacking with iconic global and local brands such as Oreo, belVita and LU biscuits, Cadbury Dairy Milk, Milka and Toblerone chocolate, Sour Patch Kids candy and Trident gum. In 2018, the company held 49th place in Forbes Top-50 foreign companies operating in Russia with reported revenues of $752 million. OSA started providing its services to Mondelez at Dixy stores on June 1.

On June 15, we signed a contract with Global Spirits for services at Dixy stores. We are planning to start the provision of services on July 1. Global Spirits is one of the world’s leaders in alcohol production and is the largest multinational alcohol holding company in Europe. The company portfolio includes vodka, brandy, and wine brands, such as Khortytsa, Morosha, Shustoff and Pervak. Global Spirits products are exported to more than 87 countries worldwide.

As of the end of June 2020, the company signed 18 contracts with CPG manufacturers. 9 contracts are under negotiations, including 1 contract that is currently under signing by the client.

The company has updated its previously announced revenue projections, and the current revenue forecast for the contracts that are already signed is $1.88 million, while the total expected revenue from all contracts, including those that are already signed and those that are still under negotiations, is $3.92 million.

Below is the current status of all contracts with our present and potential customers.

Client Demo Pipeline Negotiations Signing Signed

Hygiene Kinetics Iceberry ASG Mars Petcare Mars Wrigley’s PepsiCo Vimm-Bill-Dann PepsiCo Holding Sady Pridoniya Splat Splat Global Efko Kaskad Unilever Danone Global Spirits Mondelez 9 AIA – Your AI Advantage! Client Demo Pipeline Negotiations Signing Signed

Nestle Borjomi Progress Renna Coca-Cola InBev Cherkizovo L’Oreal Baltika Colgate Henkel Russkiy Produkt Kamis Prodo Perfetti van Melle Orimi Trade United Confectioners Arkhbum Tissue Group

RETAIL SERVICES UPDATE

Magnit update

As stated above in this report, in May, we assessed the results of the first stage of OSA service implementation at Magnit stores. The project took place from November 2019 to April 2020. The platform was rolled out across 1 180 Magnit stores in Moscow and Moscow region, and the project was supported by 12 CPG clients. The key results of the service rollout were the sales growth by 5.8 percentage points (p.p.) at benchmark stores vs. control group and the saved sales level of 5.4%. The saved sales are those sales that occurred thanks to the timely processing of tasks generated by the OSA system. The project also identified the 10% sales growth potential, provided the service is rolled out to the entire retail chain, the task processing discipline is monitored and controlled, and the new improved business processes are implemented.

Magnit confirmed the result with the level of trust of 75%, and after the overview session, Magnit recommended the implementation of the service with the enhanced functionality, which will include processing of phantom inventory, interaction with commercial and logistics processes, as well as monthly monitoring of project performance in order to confirm the project results received in November-April.

Currently, the company negotiates the next steps with Magnit, with the first step being the launch of collaborative service in Moscow region stores, which would use OSA infrastructure for evaluation of the priority of tasks created within the system by both OSA service and Magnit internal algorithm. 10

AIA – Your AI Advantage! Magnit OSA project has identified the key causes of product availability issues at the store lever, such as out-of-shelf (due to logistics), absence of price tag or incorrect price on the shelf, phantom inventory in the system, “last mile” problems (for example, the product may be unavailable for purchase or may not be visible on the shelf) and no space on shelf. Based on the analysis of identified problems, the company has prepared the new functionality and process solutions that might bring a further 7.2% sales growth at no additional cost.

While rolling out at Magnit, the company developed and implemented customized online applications for task processing, analytics and employee training.

Dixy update

The company is actively developing and implementing new functionality for OSA service at Dixy. In April- June, we added the following features: • Online Radar for monitoring sales dynamic and product availability. This new service is available for Dixy and for suppliers that receive our services at Dixy stores. The service was presented on June 4, 2020 at the online working group meeting, organized by ECR Russia (Efficient Consumer Response) and attended by 300 industry professionals. The presentation of the new service was well received, and in the next two months the company plans to trial the service in order to adapt the offer to the clients’ needs. Once fully functional and tested, the revenue from this new service is expected to be on par with the sales of the basic OSA service. According to the agreement with Dixy, part of the revenue will be shared with the retail chain. • Functionality for correction of stock balances, which are being created in the system due to phantom inventory. • Auto ordering adaptation process based on historical sales data enriched with additional attributes by OSA machine learning models. • Functionality for collecting the photos of store shelves used to train the automatic visual recognition models. • Functionality supporting the product receipt and shelf replenishment processes at the store allowing the scanning of barcodes from pallets, products and price tags. • Enhanced set of machine learning models allowing the identification of issues with product availability. For example, we launched the dedicated models for promo items and slow-movers with a long period of no sales. • A new report for products with long periods of no sales supporting the optimization of product assortment at the store.

As a reminder, the service contract with Dixy is signed until February 2022, which will allow AIA (OSA) to pilot and implement many other useful features and improved business processes, every one of which will bring value to the retail chain and the manufacturers receiving our services at Dixy.

PRODUCT DEVELOPMENT UPDATE Despite the officially announced “non-working” weeks in April, our product team has successfully adapted to the work-from-home conditions, thanks to the set of team collaboration tools that we use, such as the task tracking and team communication platforms, the shared project documentation system and video conferencing tools. In the last three months, the team has been working almost 24/7 creating new functionality, improving algorithms, supporting the scaling of service across the participating grocery stores and onboarding new manufacturing clients.

In addition to the never stopping iterative development of OSA platform, the team has created three different interfaces for our users: • Interface for training and certification for the store employees, which includes a training module on working with the OSA system. 11

AIA – Your AI Advantage! • Interface for receiving and processing of tasks for checking and fixing potential product availability issues at the store level. • Interface for monitoring and controlling the key operational indicators. These three interfaces of the OSA platform represent a full set of tools for on-the-job training, task processing, management of product availability and resources across all operations, management of key business tasks, monitoring of critically important KPIs and receiving alerts in case of anomalies in sales, product availability level or discipline of task processing.

Below you will find an overview of key functionality that the team has been working on in the last three months.

Web Platform Development Team

Task Description April May June

Aggregates for analytics

RS integration

Redash integration Adding Redash dashboards to OSA interface

Air Flow reports

Quick creation of task types in the existing grids or Adding basic types of tasks (escalation) new tasks according to custom logic All-in-one application for supplier allowing to Master application connect external solutions

User management Preparation for the transfer of user management

Development of Online Radar for availability monitoring

Change fake logic for cases_analytics

Functionality for collection of category photos for planogramming MVP API update for the integration of external clients Launch of calculation and enrichment of data with restores sales

ETL (Extract, Transform and Load) Team

Task Description April May June

Magnit promo Uploading of promo data into the data base with all attributes

Magnit roll cages Uploading of roll cage data to the data base with all attributes

Dixy (MPO) Uploading of MPO data to the data base with all attributes

Magnum (all stores) Launch a new retailer – data transfer and monitoring

Monitoring of incoming data Launch the service of monitoring data for all participating stores

Monitoring of data quality

Launch of the new ETL-NG 12

AIA – Your AI Advantage! Mobile Application Team

Task Description April May June

Application update prompts Implement automatic updates

Barcode scanner (from price tags, Implement the barcode scanning functionality able products, roll cages) to recognize the necessary code formats Accelerate the synchronization of the application Upgrade functionality to the same level Upgrade functionality to the level of web version as web application (tags, action logs, etc.) Transfer of the task processing time Transfer the time it takes to process the task in data to the backend addition to synchronization time

Push-notifications for new tasks Display notifications when the new task is received

Fix the long task processing time for Change design in order to shorten the task the users processing time All-in-one application for supplier allowing to Master application connect external solutions

Data Science Team

Task Description April May June

Add the case start time to cases_analytics

Launch algorithms for the fast-movers

Generation of custom alerts Limited stock, time of the last activity/event

AB-tests of OSA models

TEAM NEWS

In April, the data science team in our Moscow office welcomed a new Data Engineer Roman Kharitonov. Our ETL team in Kiev added a new C#/.NET developer Vladislav Kuznetsov.

In May, Oleg Grigoriev joined our web application QA team in Kiev as Senior QA Engineer. And Grigoriy Penkin joined the same team as Senior Data Science Engineer. In the Moscow office, the team welcomed a new Technical Writer Ivan Latyshev.

In June, the new Senior PHP Developer Dmitry Abazhei joined the web backend team in Kiev.

As of the time of this writing, the total headcount of the company is 51.

FUNDRAISING UPDATE

Due diligence process

In May and June the company was undergoing a due diligence process, organized by Da Vinci Capital and carried out by PriceWaterhouseCoopers (PwC). PwC conducted a rigorous assessment of our business in the following areas: 13

AIA – Your AI Advantage! • Financial due diligence • Tax due diligence • Commercial due diligence • Legal due diligence • IT due diligence.

As of the time of this writing, the process has been finalized, and we can confirm that AIA’s (OSA’s) product, team and business have passed PwC’s meticulous scrutiny with flying colors. The main idea behind due diligence is the assessment of potential risks for investors, and PwC has identified “no critical risks”.

Since Da Vinci Capital was the initiator of the due diligence process, all interested parties can receive the due diligence report by writing to Alexei Petrov, Managing Partner at Da Vinci Capital.

Overall, the company is satisfied with the results of the due diligence process, and we would like to thank the colleagues from PwC and Da Vinci for their contribution and hard work.

Plan for the investment round

AIA (OSA) and Da Vinci Capital have developed the plan and conditions for the successful investment round: The company has agreed with Da Vinci and MIR Fund to undertake the round in stages so we wouldn’t have to line up and synchronize all the funds entering the round. This will allow the company to attend to the transition from the round to active business development in the United States and Russia. The non-binding Term Sheet signed earlier with some of the syndicate members, has been updated, since it didn’t reflect the latest business results that were much better than those anticipated in November 2019, when the previous version of the Term Sheet was signed. At the moment, the updated Term Sheet has already been approved by Da Vinci and is being agreed upon by MIR Fund. The company is preparing the updated financial model on MIR’s request. Also updated will be the Investment Memorandum, which will be based on the results of due diligence and the updated financial model. Since the number of bridge investors hold an option for additional purchase of company shares before the investment round, the company has prepared and distributed the new offer for these investors. The option will be made available until August 15, 2020.

New potential investors

The company has updated a short list of the investment funds from the U.S., European countries and Russia, that expressed their interest in joining the investment round. Those funds will receive an updated set of documents (due diligence report, financial model and investment memorandum). The negotiations are planned for July and August 2020. The short list of funds and the investment interest expressed by those funds is significantly higher than the volume of the upcoming investment round (~$6 million).

Also, the two funds from Kazakhstan, one of them is the sovereign fund of the country and the other is a private fund, have expressed their intention to support the company. They are ready to invest in AIA’s (OSA’s) business development in Kazakhstan. In connection to this interest, the company plans to undertake an additional round geared specifically towards attracting funds for business activities in Kazakhstan. In addition, this new line of investment can help us get resources for supporting and developing our teams in Moscow and Kiev.

AIA (OSA) with Da Vinci support has conducted a number of talks with Turkish investment funds. The funds have confirmed their interest in investing in the company’s business activities in Turkey. Da Vinci and Magister Capital are discussing and formulating the potential formats for collaboration.

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AIA – Your AI Advantage! Thank you for your ongoing support!

Contact: Alex Isaiev, СЕО [email protected] Office address: Office 115, 13th floor, Tower #2, IQ Quarter Tower Presnenskaya embankment, 10, bld. 2, MFC ”Moscow City” Moscow, 123112, Russia Phone: +7 (495) 648-5906 Email: [email protected] Web: www.osahp.com