1. INVESTMENT CASE
Rapidly growing market
MKS: Geared up for prompt expansion
PC and Audio/video segments major growth drivers
2. 2006 Results
Retail chain roll-out program set for launch
Stronger sales
Reshuffling product mix to sustain robust growth
Laptops secured higher PC sales
Deeper penetration into brown goods
Opening up new markets drags profitability
3. UKRAINE'S RETAIL BOOM
Central & Eastern Europe's fastest growing market
Macroeconomic environment favors further growth
Modern formats gain market share
Higher share of non-food products
Regions become key growth engine
4. Ukraine's consumer electronics: Fast growing child
5. Market players
Market fragmentation remains high
So far M&A and foreign interest has been sluggish
PC & IT-related segment
6. MKS franchise
Profile
Light on its feet
Focused on the right region
Kyiv: Precision expansion
The roll-out program
7. Trading formats
High brand recognition
Multi-format approach
Hyper & Mini format interplay
Small size fits PCs best
Hyper size
Insight into the efficiency
Age
Location
Brisk exploration of new markets
Outlet profiles by format
Hypermarket
Electronics supermarket
Computer supermarket
Computer store
8. Segment outlook
PCs: Reshuffled product mix to sustain solid growth
Laptop revolution
Strong response to the market challenge
Desktops still extremely under-penetrated
Corporate sales to support desktops
White goods to slow as segment approaches saturation
Audio/Video sales: Growth to continue
Mobile handsets: Not impressive, but encouraging
9. Real estate: Extra gravy
Account for real estate to see real life book
The hedge and value booster
10. Valuation summary
DCF Valuation
Peer comparison
Sum-of-the-parts valuation
11. Financial statements
