Content & liability disclaimer

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2 Content & liability disclaimer The information contained in this presentation or enclosed herewith is provided and intended for informational purposes only and should not be relied on for any investment decisions. The information provided in the presentation includes assumptions and financial information on M.Video operations and expectations which are "indicative". Specifically, some of the information presented is taken from the M.Video Group management information system and as such may be unaudited and may include accruals and estimates. Except for numbers which can be traced to the audited Consolidated Financial statements for the years ended 31 December the numbers may not have been subjected to any audit testing nor have the IFRS policies necessarily been applied to these numbers/calculations. All M.Video Group companies information provided in this presentation is provided on an "as is" basis. M.Video believes and has done everything within its power to ensure the information is not misleading, nevertheless M.Video does not take any responsibility for the accuracy or completeness of the information. Likewise, for the forward looking information provided, these are based upon the M.Video Group management high level, longer term views and not on detailed budgeting or forecasting principles. The addressees of the presentation should not take these numbers as the true and accurate numbers and as such not disseminate, or refer to these numbers for any purpose other than for the purpose they were given, namely for informational purpose. A person who uses the information contained in this presentation does so at his/her own risk. 2

3 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 3

4 The market has stabilized, M.Video share was flat YoY CAGR 15-17A +5.9% CAGR 18F-20F + 4.5% M.Video Total Market Share, % 16.8% Total CE Market Market YoY (Quarterly), % 17.0% 17.0% 17.1% 17.3% 15.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 M.Video YoY -5.5% 13.3% 8.2% Market YoY -13.1% 6% 5.8% Source: GFK Market in value terms , GFK forecast

5 M.Video considerably gained share in growing online market reaching record-high 14% CAGR 15-17A +13.8% CAGR 18F-20F % 10.2% M.Video Online Market Share, % 10.4% Online CE Market 11.3% Market YoY (Quarterly), % 11.6% 14.1% 16.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 M.Video YoY 12.5% 26.6% 41.3% Market YoY -2.3% 15.7% 12.0% Source: GFK Market in value terms , Euromonitor forecast

6 orecast tual M.Video grew in Digital with the market, but the -1,1% vs Reforecast 5,0% vs Reforecast -0,5% vs Reforecast 1,2% vs Reforecast -2,0% vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast -31,3% vs Actual -0,9% vs Actual -11,6% vs Actual -2,4% vs Actual 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual category still underpenetrated and attractive Reforecast Actual ,9% vs Reforecast 23,9% vs Actual s Reforecast vs Actual CE Market M.Video Sales 4,9% vs Reforecast -23,9% vs Actual Total 2015RF % +2% % +9% +5% % +23% RF RF RF RF RF RF RF ,7%vs AVReforecast 1,5% LHA vs Reforecast Computers SHA Accessories Photo - Avto Telecom Entertainment 38,8% vs Actual -18,7% vs Actual 1,2% vs Reforecast ,0% vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast ,4% vs +1% 14 Actual 345 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual -0,5% vs Reforecast -11,6% vs Actual AV ,7%vs Reforecast 38,8% vs Actual 015RF RF RF RF 2015 % vs Reforecast 5,0% vs Reforecast -0,5% vs Reforecast 1,2% vs Reforecast -2,0% vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast % essories vs Actual Photo -0,9% vs - Actual Avto -11,6% Telecom vs Actual -2,4% Entertainment vs Actual 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual % Photo-Auto orecast vs -8% 32 Reforecast 1,5% vs ,0% Reforecast vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast tual vs Actual -18,7% vs 0,5% Actual vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual RF RF RF RF RF RF RF RF RF RF LHA Photo - Avto Computers Telecom SHAEntertainment Accessories Photo - Avto Telecom Entertainment % Digital 1,5% vs Reforecast -18,7% vs Actual RF RF RF RF RF RF RF RF AV LHA Computers SHA Accessories Photo - Avto Telecom Entertainment % Home Appliances 1,5% vs Reforecast -18,7% vs Actual RF 2015RF RF RF RF RF RF 2015 omsha Entertainment Accessories Photo - Avto Telecom Entertainment Entertainment & Accessories YoY, % CE Market M.Video % AV Photo-Auto Digital 37% 5% 16% RUB 1.2 trl 27% 56% Home Appliances Entertainment & Accessories Digital 6

7 orecast tual In online M.Video greatly outperformed the market -1,1% vs Reforecast 5,0% vs Reforecast -0,5% vs Reforecast 1,2% vs Reforecast -2,0% vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast -31,3% vs Actual -0,9% vs Actual -11,6% vs Actual -2,4% vs Actual 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual in all categories thanks to effective OMNI-strategy Reforecast Actual ,9% vs Reforecast 23,9% vs Actual s Reforecast vs Actual Online CE Market M.Video Online Sales 4,9% vs Reforecast -23,9% vs Actual Total 2015RF % YoY, % +12% % +26% +41% +33% % % CE Market RF RF RF RF RF RF RF ,7%vs AVReforecast 1,5% LHA vs Reforecast Computers SHA Accessories Photo - Avto Telecom Entertainment 38,8% vs Actual -18,7% vs Actual 1,2% vs Reforecast ,0% vs Reforecast ,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast -2,4% vs 14 Actual 345 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual -0,5% vs Reforecast -11,6% vs Actual AV ,7%vs Reforecast 38,8% vs Actual 015RF RF RF RF 2015 % vs Reforecast 5,0% vs Reforecast -0,5% vs Reforecast 1,2% vs Reforecast -2,0% vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast % essories vs Actual Photo -0,9% vs - Actual Avto -11,6% Telecom vs Actual -2,4% Entertainment vs Actual 0,5% vs Actual -23,9% vs Actual 38,8% vs Actual % Photo-Auto orecast vs 32 Reforecast 1,5% vs ,0% Reforecast vs Reforecast 4,9% vs Reforecast 12,7%vs Reforecast 1,5% vs Reforecast % tual vs Actual -18,7% vs 0,5% Actual vs Actual -23,9% vs Actual 38,8% vs Actual -18,7% vs Actual RF RF RF RF RF RF RF RF RF RF LHA Photo - Avto Computers Telecom SHAEntertainment Accessories Photo - Avto Telecom Entertainment % Digital M.Video 1,5% vs Reforecast -18,7% vs Actual RF RF RF RF RF RF RF RF AV LHA Computers SHA Accessories Photo - Avto Telecom Entertainment % Home Appliances 1,5% vs Reforecast -18,7% vs Actual RF 2015RF RF RF RF RF RF 2015 omsha Entertainment Accessories Photo - Avto Telecom Entertainment Entertainment & Accessories % AV 38% Photo-Auto Digital 5% 14% RUB 230 bn 32% 51% Home Appliances Entertainment & Accessories Digital 7

8 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 8

9 M.Video 4Q & FY 2017 operational highlights FY 2017 Stores & Space Growth 4Q & FY 2017 Sales, RUB bn (VAT incl.) +4.7% +8.2% % Number of stores, eop Total space, '000 sq m, eop 4Q FY FY 2016 FY

10 M.Video 4Q & FY 2017 LFL sales highlights 4Q 2017 Like-for-Like Stores Sales FY 2017 Like-for-Like Stores Sales +13.1% -0.3% +12.7% +5.3% -1.2% +4.1% , ,800 4Q 2017 Number of checks Average check Turnover mln of transactions RUB, VAT incl. B RUB, VAT incl. FY 2017 Number of checks Average check Turnover mln of transactions RUB, VAT incl. B RUB, VAT incl. 10

11 M.Video record growth in online reaching 16% of total sales 4Q & FY 2017 Online Sales, RUB bn (VAT incl.) Online Sales Share in Total Sales +41.3% % 67.9% 67.0% 72.1% +68.5% % 11% 12% 16% 8 4Q FY OBS Share in Total Sales Pick-up share in OBS Note: Online sales include home delivery and in-store pick-up 11

12 M.Video strategic projects launched in 2017 added incremental revenue Tablet-based in-store sales (Real Time Dealing) Added Revenue 2017 (RUB bn) +2.4 # of authorizations 714 thousand # of Omni-baskets sent 235 thousand # of cards issued 205 thousand Shop-in-shop for digital products & services % m_credit Outsourced consumer loans broker Note: Based on company managerial accounting estimates Accessories penetration rate 235% Service average penetration rate 51% Approval rate increase to 85% 12

13 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 13

14 M.Video FY 2017 key financial highlights Revenue (net of VAT), RUB bn CAGR % Gross Profit, RUB bn % % 23.4% 23.5% +8.4% A 2016A 2017A of Stores 2015A 2016A 2017A Gross Margin, % 14

15 M.Video showed best EBITDA margin over 3 years, solid Net Income EBITDA, RUB bn Net Income, RUB bn 5.5% 5.6% 6.0% +14.0% % 3.0% 3.5% +25.4% A 2016A 2017A EBITDA Margin, % 2015A 2016A 2017A Net Margin, % 15

16 M.Video Net Margin improvement factors in FY % +0.17pp pp +0.05pp -0.10pp +0.22pp +0.64pp 3.5% Net Margin 2016 Promos fully offset by better mix and efficient procurement Gross Margin Personnel Lease D&A Other OPEX Other Operating Income One-off LTIP vesting; strategic projects of 2017 Rates renegotiations; IFRS strait-line adj. positive effect High base of 2016 (assets write-off in 2016) M.Credit outsourcing fees fully offset by operating income Net Margin 2017 Net credit commissions (M.Credit) 16

17 It s time to take next step in M.Video s strategic development Achievements Stable market share 17% Record 14% market share in online Online sales grew +41% YoY Share of OBS in Sales was up to 16% Services and accessories growth by +26% and +21%, due to strategic projects and eco-system EBITDA margin up by 40 bp s to 6.0% Net income up by 25% to RUB 7.0 bn Solid EoP cash balance of RUB 18 bn Headwinds Russian CE market is maturing, the growth has slowed down to 5-6% In spite of M.Video strategic initiatives, single digit growth just above the market is forecasted in mid-term M_Mobile helps to compete in Digital, but M.Video needs to grow mobile category faster Competition from local CE players in Digital Intensifying presence of crossboarder e-commerce players 17

18 What s next? New ambitious goals PUBLIC COMPANY ONE RETAIL CONCEPT IMPLEMENTATION BUILDING A WINNING RUSSIAN MARKETPLACE 18

19 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 19

20 Transaction summary M.video Management LLC buys 100% in Eldorado LLC Acquisition cost Financing sources Up to RUB 45.5 bn Cash and Debt of c. RUB 40.0 bn Deal timing In Q2, 2018 Condition EGSM approval on April 13, 2018 Legal merger In Q1, 2019 of M.Video Management & Eldorado LLC 20

21 High-level structure of Eldorado acquisition PJSC M.video 1 Financing bank 100% M.video Management LLC 3 2 SAFMAR GROUP 100% BOVESTO LTD (CYPRUS) 100% Eldorado LLC M.Video Management LLC takes c. RUB 40 bn loan to acquire 100% interest in BOVESTO LTD M.Video Management LLC acquires 100% in BOVESTO LTD from SAFMAR GROUP for up to RUB 45.5 bn Merger between M.video Management LLC and Eldorado LLC 21

22 Eldorado LLC integration key milestones 13 Apr 18 EGSM Q Acquisition 28 May 18 Buyback closed By Q merger One legal entity EGSM to approve the deal. 45 days share buyback at RUB 401/share Closure of the deal. Start of Integration 22

23 One legal entity is necessary for business efficiency 1 Combined procurement and stock management Market leader Easy stock relocation Common warehouses 2 Lower maintenance costs for single legal entity Elimination of functions duplication Elimination of possible transfer pricing risks IT-infrastructure optimization 3 Public combined company Investors participation in common success Efficiency improvements and profitability growth Higher transparency of the business 23 23

24 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 24

25 Russian Electronics retail is maturing and it is right time to take the lead in its consolidation 69% MediaMarkt & Saturn 40% Expert 16% Apple. 7% Euronics. 6% 53% 52% 49% 48% Yamada Denki 20% Bic Camera 11% Edion 11% Yodobashi Camera 11% Best Buy 27% Apple 22% MicroElectronics. 2% Dell. 1% M.Video 17% DNS 15% Eldorado 9% Sv yaznoy 8% Groupe Casino 24% Magazine Luiza 13% Máquina de Vendas 6% Fast Shop. 5% Sources used: GFK (M.Video & Eldorado), Euromonitor 2017 (the rest) 25 25

26 Russian CE market today: DNS is making visible progress + = 25.9% Russian CE market RUB1,228bn Market Shares are based on M.Video internal estimates Market Value is based on GFK forecast

27 Complementarity in sales structure and operations make Eldorado a great M&A target for M.Video Sales by Product Category M.Video Eldorado 16% 49% 27% 37% Years on the market of Stores Average Selling Space 1,600 1,400 Sales by Region M.Video Eldorado 15% 31% 21% 21% AV Photo-Auto Digital Home Appliances Entertainment & Accessories Average Ticket 7,700 5,200 Moscow North Center South East Siberia 27

28 M.Video is strongly positioned in high-end segment, while Eldorado in mass-market Sales structure 2017, % Market (17/16 YoY), % 40% 47% Mass Market & Medium 7.8% 30% 35% Upper- Medium 1.8% 30% 18% High-End 5.8% Source: GFK

29 Combined business strong fundamentals MOSCOW 176 SOUTH 108 NORTH 70 CENTER 120 VOLGA Stores in 200 Cities 119 DCs across Russia URAL 98 SIBERIA 130 FAR EAST HIGHLIGHTS Net Revenue % Market Share Online Market Share 14.1% 25.9% 8.8% 22.7% 8.6% Number of Stores Total Area ( 000 sq m) 937 1,

30 The main goal of acquisition is to create an undisputable market leader Strengthening of market position of the combined business, by serving wider customer audience: from mass-market to high-end 1+1>2 Improving operational and financial performance of two companies, due to coordinated development, cost optimizations and synergies Sustainability of M.Video and Eldorado businesses Building long-term growth platform 30

31 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 31

32 The acquisition will bring RUB 18 bn synergies over 3 years Source of synergies Positive effect on EBITDA Logistics 2.0 Marketing 1.6 IT 0.3 Finance 1.2 Rent 1.2 Maintenance 0.2 Personnel 0.9 SG&A 7.4 Procurement 10.6 Total synergies 18 The information provided is based on M.Video s expectations which are indicative and cannot be considered as an official guidance 32

33 Combined EBITDA Margin of 6+% sustainable from %+ 5%+ 5.0% Synergies, RUB bn EBITDA, RUB bn EBITDA Margin, % A 2018E 2019E 2020E The information provided is based on M.Video s expectations which are indicative and cannot be considered as an official guidance 33

34 Group financial forecasts 2018E-2022E Revenue (net of VAT), RUB bn CAGR 17-22F 8+% EBITDA, RUB bn CAGR 17-22F 14+% 6% % % A 2018E 2019E 2020E 2021E 2022E Pro-forma Revenue, RUB bn of stores 2017A 2018E 2019E 2020E 2021E 2022E Pro-forma EBITDA, RUB bn EBITDA Margin, % The information provided is based on M.Video s expectations which are indicative and cannot be considered as an official guidance 34

35 Group debt portfolio 2018E-2022E Total Debt & Total Debt/EBITDA Net Debt & Net Debt/EBITDA A 2018E 2019E 2020E 2021E 2022E Pro-forma Total Debt, RUB bn Cash (eop) Total Debt/EBITDA 2017A 2018E 2019E 2020E 2021E 2022E Pro-forma Net Debt, RUB bn Net Debt/EBITDA The information provided is based on M.Video s expectations which are indicative and cannot be considered as an official guidance 35

36 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 36

37 Merge strategy: One company Two brands ONE COMPANY ONE OPERATING BUSINESS MODEL TWO BRANDS 17.1% 8.8% Group market share 25.9% 1 Business Model Market Share Centralization of operations keeping 2 brands 2 EBITDA Margin 6% Sustainable EBITDA margin 6%+ 3 CE market share 30+% Source: GFK data 2017 market share M.VIDEO & ELDORADO 37

38 Adhering to best corporate governance standards One Company One Model Two brands AGM Capital Structure 14 members 4 SAID GUTSERIEV Chairman of the Board of Directors Board of Directors of which Independent Directors Pension fund Buduschee Pension fund Doverie Other 9.4% 5.8% 27.1% Free Float 42.3% SAFMAR Group 57.7% The Remuneration and Nomination Committee Remuneration policies and practices Recruitment, development and retention of the personnel Audit Committee Financial reporting Risk management, internal control Corporate governance External & internal audit Note: PJSC M.Video capital structure is provided as of Dec 31,

39 Consistency in leadership the team in place One Company One Model Two brands ALEXANDER TYNKOVAN Founder, President Management Board Chairman MANAGEMENT BOARD PAVEL BREEV Vice-President Management Board Member 25 years with M.Video ENRIQUE FERNANDEZ Group CEO Management Board Member 9 years with M.Video BILAN UZHAHOV Vice-President Management Board Member EKATERINA SOKOLOVA Group CFO Management Board Member 2 years with M.Video STEVEN LEWIS Managing Director 8 years with M.Video Front functions SERGEY LEE Managing Director 10 years with M.Video Back office HR Logistics CENTRAL TEAM Finance Commerce 39

40 Two competing brands with one merged back office One Company One Model Two brands ENRIQUE FERNANDEZ Group CEO Management Board Member Front functions remain separate for each brand Back office functions merge CENTRAL TEAM Marketing E-Commerce Marketing E-Commerce Commerce & Procurement Finance IT Development Retail M_Mobile + Retail Strategic Marketing Logistics HR Transformation Investor Relations Security PR Legal 40

41 M.Video efficient model to be rolled-out on Eldorado business One Company One Model Two brands Efficient Procurement Target Margin Eco-System OMNI Assortment Mobile Stores Working Capital Internet Best assortment = endless online shelf Best price guarantee = price match online Best service = across all channels 41 41

42 Two brands strategy One Company One Model Two brands Strategic Initiatives One Retail + Re-start 600 m 2 Customers Customer Value Proposition Evolution Re-concept Strategy of Two Brands Footprint Maximization As big as we can Re-design As big as we need 42 42

43 Two brands differentiation and market positioning One Company One Model Two brands Uniqueness One Retail Leader Center of competence Best deal Promo-oriented Affordability Shopping experience Top-level customer service Simplicity Fast deal Location Best locations Proximity locations 43

44 M.Video digital transformation to ONE RETAIL One Company One Model Two brands 2014 OMNI channel strategy CONVERGENCE till 2022 % mobile phone store m_mobile M.Broker RTD 235% accessories penetration 85% approval rate +3% revenue % internet STRATEGIC projects ONE RETAIL 44

45 M.Video & Eldorado joint business is in Top-10 public consumer electronics retailers worldwide by revenue USD million 42,200 25, ,200 6,000 6,000 7,100 8,400 12,200 13,500 14,200 K's Edion Bic Camera FNAC Darty Gome Dixons Carphone Yamada Denki Ceconomy Best Buy Source: companies data as reported for 2017, Thompson Reuters 45 45

46 Combined company to have best-in-class EBITDA Margin by % 3.7% 4.5% 5.0% % 5.4% 6.0% %+ 7.0% 1.5% 1.7% Ceconomy Gome Bic Camera Edion Yamada Denki FNAC Darty Dixons Carphone Best Buy K's Source: companies data as reported for 2017, Thompson Reuters 46 46

47 Joint business to bring additional value to all stakeholders Reliable long-term collaboration Best products for reasonable price Exclusive all-russia contracts Total Quality Management Suppliers Customers Healthy competition Technologies for unique customer experience In top-10 best employers in Russia Best HR brand in Retail 2017 Corporate Social Responsibility practices 30,000+ employees in 200 cities Society Investors Market leadership Public transparent business Best corporate governance Best-in-class EBITDA Margin Revenue grows 1.5x, Net Income doubles in 3 years 47 47

48 M.Video FY 2017 audited IFRS results Russian CE Market Update M.Video 4Q & FY 2017 Operational Highlights M.Video FY 2017 Key Financial Highlights Eldorado acquisition by M.Video Transaction Summary Strategic Rationale Financial Rationale Combined Business Strategy Q&A session 48 48

49 APPENDIX I. M.Video Statement of Profit & Loss 12m m 2016 Change YoY RUBm % of Revenue RUBm % of Revenue RUBm % Revenue % Cost of Sales % % % Gross profit % % % SG&A % % % Other operating income, net of expenses % % % Operating profit % % % Finance income / (cost), net % % % Profit before income tax % % % Income Tax Expense % % % Net Income % % % EBITDA % % % 49

50 APPENDIX II. M.Video SG&A Expenses 12m 2017 as % of as % of 12m 2016 revenue revenue RUBm % RUBm % Payroll and related taxes % % Lease expenses % % Advertising & promotional expenses % % Utilities, maintenance & other property operating costs % % Warehouse services % % Bank charges % % Repairs and servicing % % Security % % Other SG&A % % Subtotal % % D&A % % Total % % 50

51 APPENDIX III. M.Video Statement of Financial Position Change RUBm RUBm RUBm % Assets Non-current Assets 23,663 18,959 4, % Fixed assets 7,936 8,127 (191) -2.4% Intangible assets 7,999 6,145 1, % Other non-current 7,728 4,687 3, % Current assets 97,862 81,342 16, % Inventory 52,283 45,170 7, % Accounts receivable 21,611 13,162 8, % Cash 17,791 18,763 (972) -5.2% Other 6,177 4,247 1, % Total Assets 121, ,301 21, % Liabilities and equity Stockholders' equity 23,154 15,951 7, % Equity attributable to owners of the Company 22,924 15,950 6, % Non-controlling interests % Liabilities 98,371 84,350 14, % Accounts payable to suppliers 77,698 66,285 11, % Other current liabilities 20,669 17,990 2, % Other non-current liabilities 4 75 (71) -94.7% Total Liabilities and Equity 121, ,301 21, % 51

52 APPENDIX IV. M.Video Cash Flow Statement 12m m 2016 Change YoY RUBm RUBm RUBm % Operating CF Operating cash flows before movements in WC 11,816 10,238 1, % Inventory change (7,118) (1,044) (6,074) 581.8% Trade payables 11,413 8,123 3, % Others (8,389) (1,996) (6,393) 320.3% Interest paid - (56) % Income tax paid (2,704) (1,831) (873) 47.7% Net CF from operations 5,018 13,434 (8,416) -62.6% Investing CF CAPEX - PPE (2,088) (1,816) (272) 15.0% CAPEX - IA (3,168) (2,368) (800) 33.8% Net inflow\(outflow) from deposits (1,631) - (1,631) 100.0% Investment in associates (15) - (15) 100.0% Withdrawal of deposits with an original maturity of more than 90 da (800) % Interest received % Net CF from investing activities (6,241) (2,857) (3,384) 118.5% Financing CF Net CF from financing activities 249 (3,591) 3, % Net increase/(decrease) in cash and cash equivalents (974) 6,986 (7,960) % Net foreign exchange difference 2 (2) CASH AND CASH EQUIVALENTS, bop 18,763 11,779 6, % CASH AND CASH EQUIVALENTS, eop 17,791 18,763 (972) -5.2% 52