1. NewRussiaGrowth Private Equity Advisors Opportunities for Investments in Russia: private equity and mezzanine Alexander Abolmasov Director Email: aabolmasov@nrgc.com November2009

3. 20 LPs

4. US$ 177 million

5. Team of 10 professionals

6. 5 portfolio companies

7. Established in 2009

8. Seed capital US$ 30 million

9. Target 1st closing: Q4 2009

10. Team of 5 professionals

11. One deal warehoused

12. Joint Venture established in 2009

13. Target 1st closing: Q4 2009

14. Target size: US$ 300 million

15. Well known team of real estate professionals with proven track record2

17. GDP 8.5x,

18. CBR reserves 54x

19. Share of Oil&Gas in GDP decreased by 2.1xCrisis 2008: CBR reserves: $430 bn GDP2008: $1,670.3bn Oil&Gas: 9% of GDP Net private sector capital outflow, $ bn Crisis 1998: CBR reserves: $8bn GDP 1999: $196bn Oil&Gas: 18.7% of GDP 3 Source: Central Bank of Russia

21. Destocking the major reason for GDP decline (9.1% of the total 10.4%).

22. The CPI is flat since August. YTD inflation is at 8.1%, versus 11.5% a year earlier.

23. RTS increased 2.3x since Feb 2009. % % CBR Reserves + 15% (+$58bn to $430bn) 25% (+$120bn to $600bn) -37% (-$224bn to $376bn) 4 Source: RTS, CBR, NRG calculations

25. TOP 20 banks - 77% of corporate loans. Loans to corporate sector, $ bn 62.1% 100.0% 75.5% 23.3% 10.2% 10.2% 5.6% 4.0% 4.4% 4.5% 5

27. Private banks have problems with capital, because of losses and NPL

28. 6.4% bad debt + 26% “restructured” debt

29. Total banking capital $50bn. Additional capital up to $70bn could be required. Sources of credit organisations, $ bn 6 Source: Central Bank of Russia

31. The borrowing rate for companies in $ terms has gone up from 8-11% to 16-22%

32. Average interest rate for ruble bonds are 12 - 18% (for the third tier issues – 22% - 28%)

33. Eurobonds rates are 9- 20% in $Corporate bonds rates in Russia Source: Central Bank of Russia Source: cbonds.ru 7

36. Sberbankextended a 3 year $192m loan to the company with a rate of 16.95%;

37. Equity kicker: 4.03% of shares for $1. The market price of that stake is – $128m plus the additional value of the put option circa$60m;

38. Expected “Sberbank-Сapital” IRR is 39% (subject to price fluctuations), IRR of the put option is 27%;

39. Collateral: personal guarantee from property owners; pledge of 23.3% of shares worth $750m.9

40. Short and long-term investment strategy 2009 Generate current interest income until repayment Provide secured debt to strong borrowers Credit Opportunity Fund Options and warrants to share upside 2009 - 2010 Real Estate Opportunity Fund Invest at distressed valuations Generate some current rent income Refinance as cap rates exceed interest rates. Sell at recovered value 2010 - 2011 2009 Help them grow on the empty field Sell at next long-term high market Private Equity Fund “Bottom fishing” Invest in “survivors” 10

42. Cash flow positive

44. 18-24 month loans in $

45. Collateralized

46. Pledge of target companies’ shares, real estate, liquid assets

48. Equity kickers leading to 30%+ targeted gross returnGoverning Law:Deal documents – English Law Collateral of assets in Russia – Russian Law Monitoring and control:Board participation with veto rights Right to appoint a Financial controller Regular reports from the company Control over use of funds Negative controls covenants 11

50. Focus on mid-price and low-price segment with retail prices 40% lower on average than in Detskiy Mir.

51. 50 own and 17 franchisee shops in 66 Russian cities.

52. Key toy supplier for leading retail chains in Russia, such as Magnit, Perekrestok and Sedmoi Continent.

53. In house developed ERP system allows controlling all sales and stocks daily.

54. Average mark up is 96%, private label with mark up of 250% which account for 13% of total sales.

55. EBITDA in 2009 is expected to grow by 37% despite 40% ruble devaluation and resulted slightly reduction of sales in USD.

56. After new debt, the Debt/EBITDA ratio for the company will still be below 2x.Key financials 12

58. Pipeline: Summary 14

59. 15 NewRussiaGrowth Private Equity Advisors Thank you! Alexander Abolmasov Director Email: aabolmasov@nrgc.com WWW: www.nrgc.com