1. Inbound Russia

2. “43 % shops cross-border and this is predicted to grow to 89%” Russia Market overview Russia has a population of 141 million inhabitants 30 million buy online They have spent $25 billion in 2103 and are expected to reach $38 billion by 2018 Currently 10%-15% of total e-commerce sales are made through foreign sites The annual average online spend is $883 The import threshold is max 1.000 € ( $1.250) or 31kg per individual per month The top 3 categories 1 2 3 Household Appliances Clothing & Accessories Consumer Electronics The top 3 countries they buy from 1 2 3 China US Germany

3. Highlights of our delivery service to RU Delivery via a trusted local partner One injection point into Russia (via Moscow) DDP service for all shipments Customs clearance performed for all values < 1.000 €. Full tracking from origin including pickup, customs clearance and end-delivery Delivery service at home with proof of delivery (scan). Delivery and date agreement with the recipient via call center and automatic sms notification Covering RU in between 5-12 days from US, EU, Asia, AU for main cities Final mile delivery in RU from 3-8 days Insurance coverage for all parcels maximum 40 USD/kg Maximum weight: 31,5kg and parcel size : length is maximum 40 inch (100cm) and length +width + height < 60 inch (150cm)* *Minimum size: 11x15cm.

4. Special requirements for customs clearance into RU ! Guidelines on which goods can be shipped to Russia By law, it is not authorized to import to Russia goods that have not been certified/agreed/notified by the government Goods which can be imported and which have already been notified by the government (approx. 90.000 lines) are on the notification list  If a brand/product is on the list, it’s OK to send to Russia Additional information which is requested, by our local partner, to perform customs clearance and delivery into Russia The Russian ID-number of the buyer must be provided for clearance Highly recommended to include all the contact details of the shopper: phone number (preferable the mobile number) and email address, so the addressee can be reached The name of the addressee needs to be provided besides English also in Cyrillic+ height < 60 inch (150cm)*

5. Transit times for shipping to Russia via Moscow Moscow (SVO, DME for US) St. Petersburg 3-4 days 5-6 days 6-8 days Final Mile RU Delivery (main cities) Transport to RU* From US:2-4days From EU: 1-2 days From Asia: 1-2 days From AU: 2-3 days E2E transit times to RU (main cities) From US: 6-12 days From EU: 5-11 days From Asia: 5-11 days From AU: 6-12 days *start from LG facility – 1 extra day for handling

6. Operational flow to ship into RU StepDescriptionTransit 1Buyer places order onlineDay 0 2 We pick up parcels in your facility or you drop at our facility. We consolidates and prepare for delivery to RU Day 1 3 We airlifts parcels into Moscow and perform customs clearance through our local partner US: 2-4 days EU: 1-2 days Asia: 1-2 days AU: 2-3 days 4 Parcels are injected into our Russia partner network for delivery within Russia 3-8 days

7. Inbound Russia Annex

8. Special requirements for customs clearance into RU NOTIFICATION By law, it is not authorized to import to Russia goods that have not been certified/agreed/notified by the government Our partner has the full lists of goods that have already been notified by the government ( a file with approx. 90.000 lines) o If a brand/product is on the list, it’s OK to send to Russia o If it is NOT on the list, a certification/notification has to be asked to the government before sending the items to Russia Our partner can help to obtain the notification. Therefore, we need a direct contact with the manufacturer. Together with the manufacturer, within +/1 month, they can obtain the notification Today, there are at least 2 brands that are not notified in Russia : Xiaomi and ‘One Plus One’. The products of these 2 brands cannot be shipped into Russia as long as they don’t obtain an official notification DETAILS ON THE MANIFEST Since the 1th of September 2014, the Russian customs ask detailed information about the content of each parcel This is not limited to electronic devices but to all goods imported to Russia. Instead of mentioning the generic product name, you need to mention the brand and the type : o e.g. instead of ‘smartphone’, you need to mention Apple Iphone 6 o e.g. instead of ‘ clothes’, you need to mention Esprit, pull over in wool

9. Customs clearance Russia - Notification list The Russia notification list from November 2014