Dear partners and friends,

2008 was a year of success for OZON.ru! In April, we celebrated our 10th anni­versary; in June, we started building our new warehouse in Tver; in December, de­spite the difficult economic environment, we estab­lished a set of new records for 2008 – total turnover of 12,3 mln. USD, 2500 orders delivered by couriers in Mos­cow and Saint Petersburg per day, one of the Moscow collection points distributed 800 orders per day. The 55% growth in total $102,4 mln company sales is excellent and proves that our strategy of broad assort­ment and low prices is cor­rect.

In 2008, we processed and delivered 1,268,724 or-ders to our customers, in-cluding 2,937,915 books.

We consolidated our position in new product categories (Home and Decor, Cosme­tics, Sports and Leisure) which show extremely high growth and large potential.

The other important achie­vement is the fast deliv­

ery system which was in­troduced in September in Moscow and Saint Peters­burg: orders placed before 3:00 MT PM, are delivered the next day upon the cus­tomer’s request. Furthermore, we have mas­sively spread our network of regional delivery agents, and now cover over 20 regional cities. All our agents deliver parcels, process cash­on­de­livery payments and accept returns.

Our reaction to the economic downturn was fast and deci­sive: between October and November we implemented important cost and cash­sav­ing measures which enabled us to strengthen our cash position, almost completely eliminated inventory risk, and moved further toward building our new warehouse in Tver.

In Spring 2009, we start­ed OZON-TRAVEL to give OZON.ru a footfold in the fast growing travel business in Russia. It gives our clients an opportunity to book and buy a wide assortment of travel products, including op­tions for individualized tours.

As you will see in the follow­ing pages, OZON.ru is in excellent shape and stands ready to increase its market share in 2009. Each of its operating companies is fo­cused on a specific area of the e­commerce value­chain, with a strong and dedicated team at its head.

We expect 2009 to mark an acceleration of the penetra­tion of e­commerce in Rus­sia, and OZON.ru will lead this trend.

Best regardsBernard Lukey,

CEOOZON.ru Internet­shop

1

OZON.ru turnover in 2008 is $ 102,400,000

110

100

90

80

70

60

50

40

30

20

10

0

2002 2003 2004 2005 2006 2007 2008

OZON.ru Total Turnover, USD, mln

3,5 5,96

12,8

19,5

34,3

66,1

102,4

OZON.ru is the largest Russian Internet­shop offering books, movies, music, electronic equip­ment, photo devices, mobile phones, software and multimedia games and a lot of other goods.

OZON.ru history is a story of success and development. The In­ternet­shop was opened in 1998 and became one of the first prominent e­commerce projects in the В2С segment. Initially, it was started by a group of enthu­siastic fantasy and fiction lovers from Saint Petersburg, who cre­ated a special Internet resource for exchanging opinions about favorite literary genres and new books. During discussions, par­ticipants expressed interest about where they could buy their fa­vorite books. So the idea of an Internet­shop was born. The shop was supposed to be based on

the already compounded elec­tronic bibliographical catalogue and through the Internet­shop one might purchase books being discussed. At first OZON.ru founders aimed at creating an effective and sca­lable business: on the one hand, building a logistic and operation­al structure providing order regis­tration, processing and delivery, and on the other hand offering the newest and the most conve­nient web­services, which would make Internet shopping simple and accessible for Russian users all over the world.As time passed, the Internet­shop constantly needed to update its logistics and technical setups, which required additional in­vestments. In December 1999, OZON.ru became one of the first Internet related investment projects of «Baring Vostok Capi­

tal Partners», which made a $4,800,000 investment. This gave OZON.ru a unique oppor­tunity to develop and improve its chosen business model.All the directions of the project began to develop rapidly when its operational base was moved from Saint Petersburg to Moscow. The existing assortment of books and music discs was widened. Video discs, computer games and software were added; a sec­tion of old and antiquary books appeared later. In the middle of 2005, web­site visitors got ac­cess to electronic devices, com­puter equipment, photo prod­ucts and mobile phones. Over the years, OZON.ru has turned from a cultural goods shop to a web supermarket with the wid­est variety of goods. Today each customer is offered more than 450 000 articles to choose from.

Much attention is paid to the de­velopment of operational and logistic systems, information technology, customer services and goods delivery departments. OZON.ru applies the most mo­dern system in Russia to register, process, and dispatch orders. It

supplies its customers with unique web­services and a convenient search system.OZON.ru offers its clients the highest and the most modern lev­el of services at all stages of the order process. OZON.ru’s shop supports 18 methods of pay­ment and 14 delivery options. The partners of OZON.ru are the most well­known providers of electronic payment systems, banks and financial institutions, including the Russian mail, TNT and CPCR post services; all ex­ports are processed by the Rus­sian International Post.Eleven years of hard and creative work carried out by OZON.ru’s staff and the trust of millions of our customers, has made OZON.ru the most well recognized and highly regarded Internet­shop in Russia.

OZON.ru Mission The Internet is more than tech­nology. It is an absolutely new spirit of life that helps to sat­isfy mankind’s numerous needs. The Internet has and continutes to radically change systems of

development, information and feedback schemes existing in society.During its eleven year history, OZON.ru has always been a pi­oneer and innovator of the Rus­sian e­commerce market. OZON.ru puts into practice all the newest technical and intel­lectual innovations, which make the Internet shopping process through OZON.ru convenient and attractive. Being one of the largest В2С projects in Russian e­commerce, and providing the widest as­sortment of cultural goods in the Russian language, we con­sider that our mission is to pro­vide our compatriots no matter where they are on the planet Earth with access to our prod­ucts so that they can maintain links with their heritage and na­tional culture. OZON.ru always observes pro­tection of consumers’ acts and copyright laws.

OZON.ru Public Recognition OZON.ru is an innovative lead­er in the e­commerce service industry. OZON.ru’s activity in developing and introducing e­commerce standards; delivery of premium quality services and in­novative technologies has been highly appraised by the profes­sional community. OZON.ru was

awarded (among other awards) with many national prizes award­ed for industry excellence, such as the “Russian Commerce Ol­ympus” award, and “Best logis­tic operator in Russia” diplomas of honor.According to Runet research agency ROMIR, OZON.ru is considered to be one of the most popular national Internet­shops.OZON.ru is a member of In­ternational Club of State Hermi­tage Friends, and sponsors serial publications of popular scientific books “Hermitage Halls and Buildings”.

OZON.ru is one of the founders and active members of the Inter­net and Business Association cre­ated in 2007 by Russian leading Internet­companies in order to develop educational programs, coordinate organizational ef­forts establishing legislation for the whole Internet business­com­munity. OZON.ru is an organizer and an active participant of the annual Internet and Business As­sociation conferences. This year OZON.ru will take part in the United conference­2009, orga­nized by the Internet and Busi­ness Association and Russian Public Center of Internet Technol­ogies (ROCIT).

2 3

OZON.ru Audience

OZON.ru is the most famous In­ternet­shop operating in the Rus­sia market. According to IPSOS quantitative research conducted in March 2009, 93% of Russian Internet users know OZON.ru In­ternet­shop, over 47% of those interviewed constantly buy on OZON.ru. At the beginning of January 2009, the number of registered visitors on OZON.ru’s website­exceeded 2.77 mln. Every month 60,000 new users are added to

the clients’ database. OZON.ru has an active customer base of over 400,000 users who make at least one order every six months. Most OZON.ru clients (65%) are over the age of 19, but less than 35 years old. Men (57%) prevail over women. 60% of OZON.ru’s clients list their income as higher than average.Every day OZON.ru’s web site is visited by over 230,000 unique vis­itors. Each month OZON.ru’s clients record on average 7,000,000 ses­sions and review over 40,000,000 pages.In order to study customers’ behav­ior and monitor key webmetrics, OZON.ru partnered with OMNI­TURE Inc, the worldwide leader in online business optimization. In 2006, OZON.ru implemented “Site Catalyst” web analytics tool, which allows to evaluate web­ marketing campaigns, optimize page navigation.

New at OZON.ruOZON.ru’s website is a person­alized dynamic Internet resource which has no analogue in the Rus­sian e­commerce industry.

Personalized Recommendations In September 2007, each regis­tered OZON.ru client was given a personal web­page with a number of articles selected on the basis of automatic analysis of such client’s site behavior. Order history, bas­ket contents, searched items and comments are compared with oth­er clients’ preferences. Such anal­yses and comparison form unique personalized recommendations. A customer may take part in forming his personal window and adjust his recommendations system. Each recommendation is given with a suggestion to evaluate the articles recommended and the quality of the tips.The efficiency of the recommen­dations system is proven by the fact that 30% of cart additions are generated by this engine.

Instant TipsInterrelations between goods and their features, such as author’s name and publishing house; infor­mation about what items are usu­ally bought together, etc – is used to define instant tips. The informa­tion received is used to form such marketing strategies as: “cus­tomers who bought this item also bought…”, what customers buy after viewing this item…”, “Best­sellers of the section …”

The inquiry results show that 85% of interviewed customers appre­ciate the recommendations pro­vided by OZON.ru.

OZON.ru WEB-Site ContentThe website’s greatest advantage is its information and reference section, in particular, bibliogra­phy, movie and discography, per­sonalities’ basis, and archives of personal opinions and reviews. All these elements are interrelat­ed and form the reference body of the site. Most of the website’s content might be formed by its us­ers who place new information on personal pages or comments on forums and take part in different rating inquests. “Magazine” is a project of OZON.ru, and a part of the website, where journalists and observer publish exclusive book reviews, tell about new films and music albums; writers, actors, di­rectors and musicians write about life and creation. Here a visitor to the website may find advice about gifts to give to their loved ones, how to choose a computer or a phone, theater recommendations; they may even win a ticket to a concert or performance. Maga­

zine also serves as an informative guide to all that OZON.ru offers.

C2C Selling at OZON.ruOZON.ru allows its clients not only to buy products through its web­site, but also to sell products. C2C project started in December 2007 and is developing rapidly. Now more than 10,000 clients use this service and every day approxi­mately 100 deals are arranged. More than half of the products sold are second hand goods which are no longer available at OZON.ru.

It increases the chance to find a rare book without leaving the site. Our clients buy first and foremost books, then DVDs, software and music. We strive to make the serv­ice more convenient and OZON.ru a comfortable place for selling and buying things.

Advertising at OZON.ruOZON.ru is an Internet­shop which succeeded in transforming its shop­window into a very popular in­teractive area with high level of credibility. OZON.ru offers places for advertising banners with refer­ences to inner website pages (for instance, to a detailed description of the product, or to a catalogue branch). It also delivers informa­tion to all its customers; including promotion samples, souvenirs and other advertising articles through insertion of such information in parcels with orders. Special con­tent projects such as “Author’s Week”, and concrete promotion such as “Product of the Day” are effective advertising techniques used by OZON.ru. All these adver­tising instruments and techniques are specifically selected for every partner.

Source: Omniture.com

OZON.ru Audience, unique visitors

20082007

Janu

ary

Febru

ary

March April

May

June Ju

ly

Augus

t

September

Octo

ber

November

December

Number of Accepted Orders, thousands

4000

3500

3000

2500

2000

1500

1000

500

0

2003 2004 2005 2006 2007 2008

832

15552175

2656

33713938

4 5

OZON.ru proudly considers itself one of the largest Russian web­shops. Its product assortment in­cludes over 450,000 items.

OZON.ru’s platform has unique advantages which include: rich variety, rapid search, user­friendly interface and high class service.

The products on offer are sub­divided into sections. Items in these sections are arranged in the catalogues, which are con­stantly renewed. Search systems which provide effective and rapid search capabilities, covering a wide spectrum of characteristics

inaccessible in traditional shops are available at OZON.ru. Eve­ry item is located on a separate page containing images, detailed description, and other necessary information.

OZON.ru effectively takes ad­vantage of the Internet to extend highly visual and informative in­formation about its goods and services. Among the means used are high quality photos; “turning over the pages” function; video and music samples; reviews and customers’ opinions, a system of individual tips, cross­references and inner banners.

OZON.ru is the Runet Main E-Shop In 2008 OZON.ru sold 2 261 508 books

OZON.ru Establishment, Books

Electronics, Mobile Phones, Photo and Video

2005

Home and Decor2006

2007

Toys

Music, Soft, DVD

Antique and Rare Goods, Out­of­print Books

2000

2008Digital Books, Tickets

2001

1998

2003

Gifts, Sports & LeisureBeauty Salon, Jewelry, House Appliances

2009OZON Travel

2008 Sales Geography (% from total turnover)

Abroad 1,5%

Russian Regions 24,7%

Moscow Region 1,7%

Saint Petersburg 16,3% Moscow

55,3%

CIS Countries 0,5%

Toys 1,6%

Antiques 4,8%

Books 34,4%

Electronics 32,2%

Gifts 1,6%

Home & Decor 1,8%

Movies 13,2%

Music 3,4%

Others 0,1%

Soft 4,9%

Sport & Cosmetics 1,9%

Average Cost of the Order Value, USD

60

50

40

30

20

10

0 2003 2004 2005 2006 2007 2008

$22$27 $30

$41

$57$61

OZON.ru: Books, Books, BooksThe largest OZON.ru product on offer is is “Books” it contains 300 000 titles: 130 000 in Rus­sian and 170 000 in foreign lan­guages. OZON.ru has a universal assortment of: fiction, science­fic­tion; science popular, scientific, business, education and children’s literature; manuals, socio­politi­cal, historical and reference edi­tions; books on arts and books for gifts. The assortment foreign lan­guage books which include many European languages is constantly increasing. In 2008 the quan­tity of books in foreign languag­es increased by 55%. Annually OZON.ru sells over 3,000,000 books which may well place it in the top ten of Russian retail bookshops. In 2008, OZON.ru introduced a new catalogue sec­

tion «VIP and Luxury Books», which resulted in sales of premium price books increasing by 97% compared to 2007.

OZON.ru Internet shop is the per­manent participant in Moscow In­ternational Books Fair.

OZON.ru Movies and Audio CataloguesOver 23.000 national and foreign movies in the “DVD and Video” section are on offer. The assort­ment offered comprises national and foreign classic movies; mod­ern movies, national television seri­als, author’s and intellectual mov­ies, children and animated movies, documentaries, study and scien­tific­popular programs. In 2008, the BLU­RAY video format became more popular and prices for DVD’s and Videos were decreased. Eve­ry month OZON.ru delivers over 135,000 DVD to its customers.

Over 57 000 music CDs and 30 000 CDs produced by in­ternational major music labels are offered through OZON.ru’s “Music” section. The assortment includes music and vocals per­formed by national and foreign composers and singers of differ­ent genres and styles. Beginning with 2009, OZON.ru presents more than 6,000 original Warn­er Music CDs which will be de­livered directly from OZON.ru warehouse. OZON.ru also offers 4,000 limited edition and exclu­sive CDs.

Software and Multimedia at OZON.ru“Software and Games” section presents computer games, home and business computer software, educational programs from na­tional and foreign producers, also videogames and consoles. Cur­rently, the assortment consists of 10,000 items available for cus­tomers. A priority for 2009 will be the promotion of business soft­ware.

2008 OZON.ru Sales Structure (% from total turnover)

6 7

In 2007, sales of electronic devices, photo and video cameras and mobile phones reached $24,800,000

In autumn 2005, OZON.ru found­ed three new sections: “Elec-tronics”, “Mobile Phones” and “Photo and Video” which cover a wide variety of digital electronic equipment, computer devices and accessories, photo and video cameras, and mobile phones.Today this category of goods is the most rapidly growing sec­tion in OZON.ru catalogue – in 2008 the turnover increased by 76% compared with year 2007, and it was 32.2% of total OZON.ru sales.In 2007­2008 a new section “Household Appliances” was opened. It offers popular goods for the home, kitchen, and music equipment made by the world leading producers.OZON.ru offers only premium quality goods which have all required licenses and certifi­cates.

Electronics, Photo and Video, Mobile Phones and Household Appliances.

OZON.ru in Saint Petersburg

Catalogue New Sections

2008 Electronics Sales, items

Household appliances6%

Computer accessories16,8%

Mobile phones33,2%

Others24,7%

Computers3,7%

Digital cameras4,4%

Accessories11,2%

Saint Petersburg is the place where OZON.ru’s first Internet shop started. The fact, that the city has a reputation of the cul­tural capital of Russia determined the specialization of it’s branch

in Saint Petersburg. The main line of business in Saint Petersburg is antiques and the sale of old, rare and antique books. Collaborating with the best booksellers and anti­quarians of the town on the Neva

river, the Internet shop offers its customers a unique possibility to enrich their collections with the best and rarest books published all over the world at all times.

Out-of print and Old Books at OZON.ruOZON.ru’s books catalog in­cludes the unique section of out­of print and old books. It is rightly considered to be the leader in In­ternet sales of old books, albums, collected works, encyclopedias and entire libraries. Currently, the OZON.ru out­of­print and old books catalogue contains over 30.000 books published over the last 50 years.The main task of this activity is to present to its customers a wide

range of the most interesting, use­ful and valuable books of different genres. It means that a customer may find here not only the wide popular books but also the editions printed with small number of copies. OZON.ru also provides a unique service to clients who are unable to or unwilling to search for such books in other libraries. All books on offer in this catalogue section are in good or well condition with no page or picture exceptions.

The out­of­print and old books assortment is being formed ac­cording to the following principle: “Second life for the best books published over the last 50 years!” It means that through OZON.ru you can find publications verified by time and still required by real connoisseurs.

The antique section is obviously of great interest for lovers of rare things. It offers antique books and rare objects – antique graphics, ancient luxurious books editions, ceramics and porcelains, old photos and postcards. Currently

the assortment of this section con­tains over 3,000 unique goods The antique books and rarities section is operated by the Anti­quary Department, whose per­sonnel determines the assortment offered, searches for rare articles,

describes them and makes adjust­ments before putting the articles on sale. In 2008, the turnover of this section increased by14.5% compared with the year 2007. In the beginning of 2009 a new section – “Handmade section” with batiks, tin soldiers, glasses, ceramics, gems, watercolors, leather goods was introduced.

OZON.ru actively penetrates into new commercial niches, develops new territories, and does its best to take into consideration con­sumers’ and Internet site visitors’ opinions and requests. After the successful start of “Elec­tronics” section, in 2006­2007 OZON.ru founded the sections “Home and Decor“, “Gifts”, “Sports & Leisure”, “Beauty Salon”.

In “Home and Decor” section the wide range of textile goods, kitchen utensils, decor utilities, season goods for house and gar­den from well­known Russian and European producers are on offer.“Gifts” — one of the most rapid­ly developing section at OZON.ru, is accessories for ladies and gentlemen, business and VIP sou­venirs, which now total more than 3,000 items. At “Sports & Leisure” the OZON.ru visitor could find prod­ucts useful in sports, travel jour­neys, countryside recreation. This section now contains 3,500 items. “Beauty Salon” was started at OZON.ru in 2007, and contains more than 2,000 items of 150 world leading perfume and cos­metics brands. OZON.ru has the stable reputation of the online shop with one of the widest rang­es of high quality and original perfume and cosmetic goods.

Antique Books and Rarities at OZON.ru

8 9

OZON.ru New Projects

Electronic tickets, various tourist products and business trips for a long time have been one of the main categories of the global e­commerce market. Last year around 52% of all airline tickets sold globally were distributed electronically. Online booking systems enable customers to buy railway and air­line tickets without queueing up at the ticket office as well as quick­ly and accurately choosing and changing the planned time, des­tination, means of transportation and excursions. Internet booking is also very convenient when it is necessary to make an optimum business trip route taking into ac­count personal preferences. Although, in Russia, this segment of e­commerce has just started to gain popularity, it is clear that it can have great growth potential considering the country’s size and location. The start of e­ticket sales in Russia has accelerated the process. Through electronic sales

approaches, immediately after the completion of booking and payment for the ticket, a customer receives e­mail containing a route receipt. All information about the booking (personal passenger data, route details and price) is stored electronically in each car­rier’s database. In spring, 2009, OZON.ru launched OZON-TRAVEL. The main goal of this project is the de­velopment of a high­tech online booking system which will offer customers superior quality service,

easy and reliable booking platform and convenient payment options.The project’s potential hinges on strong technological, marketing and operating experience of OZON.ru in the area of e­commerce and ris­ing demand for up­to­date and con­venient tools to purchase tickets and tourist products. OZON-TRAVEL offers a unique technological solution which can be used not only to buy electron­ic air and railway tickets, book a hotel room or arrange airport transfer, but also to plan a multi­stay trip at a reasonable price. High level of trust and loyalty of the client base of OZON.ru as well as proven logistical schemes will facilitate success of this strate­gically important project. OZON-TRAVEL is an online trav­el agency which offers very flex­ible online booking tools for both separate services (tickets, hotel rooms, transfers) and packaged tours, providing customers with a wide range of best offers from re­liable tour operators and carriers. Its mission is to make every jour­ney comfortable and economical for its customers.

Digital Content at OZON.ruOZON–TRAVEL – a New Strategic Business Unit

In spring of 2008, OZON.ru started to sell digital content. Dig­ital books have become the first type of content for this new busi­ness direction and can be found in the “Books” category of the OZON.ru website. Digital books are books in the form of computer files. Customers can make an order and pay for digital media by means of credit card or other electronic payment methods. Then, the file is downloaded from the web­page to the customer’s computer, other mobile devices (mo­bile phones, communicators, smart phones) or special gadgets for read­ing books in electronic format. Digital books do not compete with traditional books but rather complement them. In many cases, it is more convenient to read dig­ital books. For instance, on vaca­tion it is easier to take a special device for reading books or use a regular communicator.

One memory card can accommo­date hundreds of various digital books. Usually, digital books are available in several popular for­

mats and are significantly cheap­er than traditional books. All dig­ital books offered by OZON.ru are sold with the copywrite hold­ers’ permission. Today, the assortment of the cat­egory “Digital books” has more than 2,500 digital books of vari­ous genres available for down­loading. In the fall of 2009, OZON.ru plans to enter the market of digital musical content. Co­operation with world leading record companies will enable OZON.ru customers to access more than 1,000,000 tracks of domestic and international art­ists. Our mission is to make OZON.ru the largest online resource in Rus­sia selling legal digital musical content.

OZON.ru New Projects

10 11

In Moscow and Saint Petersburg, where the majority of OZON.ru customers live, OZON.ru has in­tegral logistics and delivery sys­tems which enable it to guarantee its customers 24 hour order de­livery from the moment the order was taken or on the same day by express delivery service.

O-Courier which is specializing in courier services is responsi­blefor order delivery and order collection at points in Moscow, Moscow region, Saint Peters­burg and its region. There are more than 100 couriers deliver­ing daily up to 2,500 orders to OZON.ru customers in Moscow and up to 600 orders to those in Saint Petersburg. The network of collection points is comprised of 3 own points and more than 40 partner points in Moscow and the Moscow region and 2 own points in Saint Petersburg. More than 2,900 orders per day are dispatched to customers at the collection points in Moscow and Saint Petersburg.

In 2008, O-Courier delivered more than 1,000,000 orders, 85% of which were received by customers of OZON.ru. All de­partments within OZON.ru are connected by means of a global information system which facilitates immediate information updates and synchronization of activities. One of the main departments, its warehouse, is operating 24 hours a day which makes next day de­livery for the majority of customers possible. Key logistical operations are performed at night, while day time is used for the customer serv­ice and processing of incoming and outgoing shipments.

O-Courier offers up­to­date high quality services through order tak­ing, processing and delivering. The company assumes the follow­ing functions: • Telephone contact with cus­

tomer to arrange the time and terms of delivery;

• Order delivery to customer by courier or at a collection center;

• Cash collection from client; • Set of necessary documents,

including cash receipts, given to customer;

• Receiving and processing of orders returned by customer;

• Reporting and accounting.

“Borovlevo-2”• Territory – 7. 65 ha• Area – 12.0 thousand

square metersO-Courier Company: Rapid and Reliable DeliveryOZON.ru Integral Operational and Logistical System

Operational and Logistical Complex “Borovlevo-2”Opened in 2009, the complex “Borovlevo-2” was constructed in the industrial zone nearby Tver. The total area of building exceeds 12,000 square meters. The mod­ern telecommunication and logistics equipment enables “Borovlevo-2” to process up to 7.6 m of inventory units per year. Besides, up to 4 m unique items can be accommodat­ed on the shelves of the warehouse at one time and up to 4.7 m orders

can be sent per year. Around 450 people, mostly residents of Tver, are working at the complex. The total investment in the Borolv­levo­2 project including construc­tion of building and purchase of technological equipment amount­ed to $20 mln. Our partners in designing and technical planning are the leading international com­panies Swisslog (Switzerland) and DOCdata (Netherlands). Their ex­

perts are assisting OZON.ru to de­fine the optimal logistics concept, from merchandise flows operation system and goods registering to shipping process planning. Their consultants provide OZON.ru with access to the latest know­how about e­fullfilment.The complex “Borovlevo-2” is the largest logistical facility for e­commerce­related business in Eastern Europe.

OZON.ru has a unique modern integral operational and logisti­cal system based on its in­house IT­platform. It enables the company to ef­ficiently off­load merchandize, place it on the shelves, assemble

orders and check their correctness as well as to keep accounts.The main element of the op­erational and logistical system of OZON.ru is the warehouse “Borovlevo-2”, which is lo­cated in Tver. Besides, there are

two warehouses in Moscow and Saint­Petersburg.

June, 2008. Laying of the foundation

stone. Governor of the Tver region

D. Zelenin and CEO of OZON.ru

B. Lukey.

September, 2008. Constructing of the

main building.

February, 2009. Beginning of inte-

rior decoration works.

2003 2004 2005 2006 2007 2008

Number of Completed Orders, thousands

1200

1000

800

600

400

200

0

249452

625729

998

1 296

“O-Courier”: • Moscow – up to 4 000 orders per day• Saint Petersburg – up to 2 000 orders

per day

12 13

OZON.ru Regional ExpansionHigh level of regional Internet penetration in Russia, banking in­frastructure and channels of com­munication quality improvements lead to active Internet use both as a free information source and as a tool for purchasing goods and services. It`s increasing the OZON.ru’s popularity in Russian regions.Though e­commerce in Mos­

cow, Saint Petersburg and other large cities are well established, Russia’s regional users are mak­ing their first steps toward Inter­net usage, including purchasing goods which are not accessible in local retail shops. A wide va­riety of goods, one price for all regions and rapid delivery to the customers are the main competi­

tive advantages OZON.ru re­gional expansion. Traditionally OZON.ru gives its customers the option to choose how they would like to pay and take delivery. Today, OZON.ru customers have 18 payment and 14 delivery options. OZON.ru’s primary delivery partners are “Russian Post”, TNT and CPCR. Today Russian post services can­

not provide rapid delivery to cus­tomers. One of the e­commerce advantage is not only the wide assortment but also a possibility to receive an order in time.Using fulfillment and delivery ex­perience in Moscow and Saint Petersburg OZON.ru extends courier delivery service and opens collection points in the re­gions.22 largest Russian cities with 19 million inhabitants have courier delivery and collection points provided by partner companies. Collection points located in the down town and fully equipped for the convenience of custom­

ers. Partner companies provide more than orders delivery but cash collection from custom­ers and return orders process­ing. Partner companies allow OZON.ru to reduce delivery time and to personify OZON.ru in the eyes of regional cus­tomers, thereby increasing their confidence both in OZON.ru and e­commerce in general and

as a reliable and efficient way of shopping. A strategic way to improve the delivery service in regions is to increase the number of partner companies by providing courier order delivery and managing of collection centers; to raise quality of services and to reduce the time of order delivery. In 2009, it is planned to introduce time stand­ards for regional order delivery and obligations to observe them. OZON.ru is an Internet shop that gives access to both a wide vari­ety of goods and a high quality of services to all Russians irrespec­tive of their residency.

OZON.ru – more than 700 employees

OZON.ru is a dynamically de­veloping company with a quali­fied staff of 740 professionals, ambitious and committed to busi­ness. Among them those who recently came and introduced new skills, and those who for many years work with OZON.ru and have unique experience in the e­com­merce industry. The results reached by every professional as well as the suc­cess of a project group in effec­tive realization of their ideas is

acknowledged and appreciated. OZON.ru invests in programs that increase personnel loyalty, moti­vation, assistance in adaptation, training and professional self­re­alization.The corporate culture of OZON.ru is based on mutual respect, posi­tive thinking, partnership be­tween managers and subordi­nates. All the company’s branches, irre­spective of their location, follow the same principles of personnel management.

OZON.ru Staff

2003

700

600

500

400

300

200

100

0

142215

317

539614

740

2004 2005 2006 2007 2008

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OZON.ru Team

Victor Bondarev First Deputy CEO

Elena OrlovaChief Financial Officer

Kirill Grodinsky Chief Operation Officer

Alexey TimoninChief Marketing Officer

Nikita Dobrynine Commercial Director

Mikhail Yatkovsky PR Director

Tatiana Yanina HR Director

Bernard Lukey Chief Executive Officer

Yevgeny Tikhomirov General Director, Internet Logistics Co

Anna TsygankovaGeneral Director, Internet Travel Co

Natalia AlievaChief Accountant

Mikhail GritsenkoGeneral Director, O­Courier Co

Alexander AlekhinIT Director

Alexey Vaisberg Purchasing Director

Oksana Chertilina Legal Department Director

Anna Matveeva Director, St. Petersburg Branch

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