Construction Trading Company “Petrovich” LLC

Mission statement

www.petrovichstd.ru

We build through

continuous development:

Decent life for our employees.

Successful business for our partners.

A solid foundation for the whole society.

We build life.

Why Petrovich?

www.petrovichstd.ru

Our name had appeared when the approach to businessbegan to emerge and the basic business principlesand rules became clear. The main idea is the honestbusiness, trusting relationship with partners andcolleagues, the ability to make decisions and takeresponsibility for them. In practice the person whoearned the respect not only as a status unit but asa person with high values of life and exellent personalqualities in Russia called simple patronymic name.

In this manner Petrovich appeared as the collectiveimage of insider, partner and close friend you can rely

“Petrovich” СTC

www.petrovichstd.ru

8 construction trading depots“Petrovich” CTC in St. Petersburg.

7 construction trading depots“Petrovich” CTCin NorthwesternFederal District.

Distribution center

Unified distribution center

History of development

www.petrovichstd.ru

1995 Foundation of the company under the name “Petrokon”.

1998 LLC “Petrokon” is renamed into LLC “Construction Trading Сompany “Petrovich”.

2000 Production site is founded for manufacturing of reinforcing mesh.

2002 Production department is incorporated into the Group for manufacturingof dry graded sand.

2003 December Beginning of dry mixes “Petrolit” production.

2004 June Opening of the first Cash&Carry at Salova, 46.

August Opening of metal trading depot “Petrovich” CTC at Parnas.

2006 December Receiving of International ISO certificate ISO:9001.

2007 October Opening of Call-Center.

2008 June Opening of the first regional depot “Petrovich” CTC in Vyborg.

2009 March Foundation of “Petrovich Friends Club”.

2014 Opening of the new regional depot “Petrovich” in Tver.

“Petrovich” CTCCRO format

Constructors Renovators Oriented – format of building materialstrade aimed at professional consumers.

Consumer profile

www.petrovichstd.ru

35%35%Corporate clients

48%48%Professionals without

legal entity establishment.

“Petrovich Friends Club”

10%10%Retail buyers(legal entity)

7%7%Retail buyers(individuals)

22%22% – Build for themselves

26%26% – Build for others

Growth dynamics of sales volume

www.petrovichstd.ru

2008 2009 2010 2011 2012 2013

30%30%-20%

16%16%

56%56%

45%45%25%25%

2014

20%20%

prognosis2015

21%21%

Growth dynamics of chain, rub

www.petrovichstd.ru

2011 2012

11 billion

16 billion

2013

20 billion

2014

24 billion

prognosis2015

29 billion

Sales channels SPb

www.petrovichstd.ru

Call-centerwith delivery

45%

Сash &carry store

6%

Call-centerwith pickup

2%

Pickup

13%

Delivery

18%

Internetwith delivery

14%

Internetpickup

2%

@

@

Growth dynamics of depot number

www.petrovichstd.ru

2002 2004 2006 2009 2010 2011 20122003 2005 20082007

number of basesSt. Petersburg

Northwestern

Federal

District

4

8

12

14

16

2

6

10

2013 2014

Sample format of depot

www.petrovichstd.ru

500 – 2000 m2 – cash & carry store;

120 m2 – sales department.

Sample format of depot

www.petrovichstd.ru

100 m2 – service area for legal entities,wholesale customers and key account customers;

35 m2 – private zone for cardholders

Sample format of depot

www.petrovichstd.ru

1200 m2 – covered storehouse;3500 m2 – storage yard with passages;15 0000 m2 – warm storage warehouse;

Range of items

www.petrovichstd.ru

total numberSKU 13 500

Matrix materials

15%

General constructionmaterials

15%

Wood-board materialsand timber products

14%

Dry constructionmaterials

9%

Thermal insulation

7%

Painting materials

6%

Others

34%

Private Labels

www.petrovichstd.ru

Dry mixes “PETROLIT”Suspended ceilings “ZHEMCHUZHINA”Manual tools WENZO and HESLERConcrete mixer MITTERLaminate flooring PAREMOPainting tools “BODRIY MALYAR”The membrane of construction “IZOSTRONG”Laminated flooring board padding PROFLEX

Antiseptic “EKO MASTER”Ceramic granite ZULAMastic “MEGA MAST”Glass wallpapers CORSAGLASSBits and drills SHAFTPVC panels “ORION”Painting materials “LIRA”Radiators TERMATIK

CORSAGLASS

Our people

www.petrovichstd.ru

2172 employees

85% of Employeeengagement

Career and Education

www.petrovichstd.ru

Mentoring system

Distance learning

Corporate university

Higher education grants

Specialized training

EMBA programs

Career and Education

www.petrovichstd.ru

System of committees

Internal forumPetlocal.ru

Ideas board

Project groups

Corporate newspaper«Petrovich news»

Socializing

www.petrovichstd.ru

Joint holidays

Mind-sports

Yoga classes, ping-pong,mini football

Services

www.petrovichstd.ru

Customer Help Desk 24/7

Delivery by manipulator

Equipment leasing

Lifting

Removal of refuse

Pain tinting

Sawing

Services

www.petrovichstd.ru

«Standard delivery»within 4 hours

«Exact time»delivery

«Express delivery»within 2 hours

«Daylong delivery»for people readyto wait

Call-center 24/7

www.petrovichstd.ru

Share of sales through thecall-center to the turnover – 37%

Service rate – 95%

Average amount of callshandled per month – 160 000

Number of specialists – 235

Online shopping www.petrovichstd.ru

www.petrovichstd.ru

Share of online sales to turnover(cumulatively)

Web-site traffic with 225 000unique visitors per month

Yandexmarket 340 comments2011 2012 2013

2%2%

5%5%

10%10%

2014

14%14%

prognosis2015

17%17%

Loyalty program“Petrovich Friends Club”

www.petrovichstd.ru

Benefits for participants:

Accumulating pointsand exchanging for prizes.

Payment by points.

Receiving discounts on the purchase.

Receiving applicationsfor repair and constructionworks in heading “Bids”.

Special terms and conditions forservices provided by “Petrovich” CTC.

Growth dynamics of active

participants number:

Participants of program – professionals without legal entity establishment.

6 267

30 683

47 272

2010 2011 2012

86 000

2014

112 000

2015

Loyalty program“Petrovich Friends Club”

www.petrovichstd.ru

Share of sales through PFC to turnover – 49%49%

person rub

Expert Profi Master Spec

Share:

1%

12%16%

36%

26%31%

25%

52%

Saint-Petersburg

www.petrovichstd.ru

Depot and Cash and Carry

Moskovskaya Slavyanka

pr. Engelsa, 157, lit. A

Tallinskoe shosse, 131

Planernaya, 15 B

Salova, 46

Gatchina

Murmanskoe shosse 12-13 km

Industrialniy pr.

United distributive centerUtkina zavod, 1.

Distribution center Piskarevsky

Saint-Petersburg

Kolpino

Gatchina

Ring Road

Ring Road

Ring Road

Ring Road

Ring Road

The Gulf of Finland

NorthwesternFederal District

www.petrovichstd.ru

Velikiy Novgorod, Sirkovskoe shosse, 29

Volosovo, Narvskaya, 15

Vyborg, Pekarniy pr., 2

Kingisepp, Dorozhnikov, 14

Luga, Komsomolskiy pr., 54 A

Petrozavodsk, Solomemenskoe shosse, 5

Tver, Octyabrskiy 113

Luga

VelikiyNovgorod

Petrozavodsk

Tver

Kingisepp

Slantsi

Volosovo

Saint-Petersburg

Vyborg

The Gulfof Finland

LakeLadoga

Thank you for your attention!