Seventh continent

JSC Sedmoy Kontinent – one of the first Russian multiformat retail networks. Shops of network – "The Seventh Continent — Five Stars", "The Seventh Continent — the Supermarket", "The Seventh Continent — Near the House", "The Seventh Continent — the Gastronomy", Our Hypermarket. JSC Sedmoy Kontinent was founded in 1994 and is the international retail retail chain stores and one of leaders of retail market of Russia.

Seventh Continent company - one of the first Russian multiformat retail networks. Work in several formats allows at once the company not only to constantly broaden the sphere of the activity, but also to increase competitiveness of shops, to expand a circle of regular customers with the most different consumer preferences and income.

Assets

Shops of the company:

• "The seventh Continent - Five stars",
• "The seventh Continent - the Supermarket",
• "The seventh Continent - Near the house",
• "The seventh Continent - the Gastronomy",
• "NASH Hypermarket",
• "Scope".

• 100% of stocks of JSC Financial Service Bank
• Participation in Riteylmediagroup LLC (together with Soskovsky Komsomol member).
• 50% plus 1 stock SZAO Prostormarket, Republic of Belarus, city of Minsk.
• 100% of authorized capital of JSC Objedinennaya torgovaya nedvizhimost which is the owner of 29 objects of the trade real estate in Moscow which total area is about 68 thousand sq.m.

• 100% in subsidiary company SKMO LLC.

History

1994-2000: Formation of network

• 1994 The first three epicures Seventh Continent are open. The first shop "Seventh Continent" opened on April 7, 1994 on Leninsky Avenue, 61/1. Soon two more epicures — on Miklukho-Maclay St., 18/2 and Bolshaya Lubyanka St., 12/2 open. Thus, Seventh Continent became the first retail network in Moscow.

Distinctive feature of work of shops for the Russian market in the mid-nineties became; round-the-clock operation, new level of service, the wide range and high quality of the offered goods and services.

• 1995 The well-known epicure on Okhotny Ryad, near Red Square is open.

• 1996 The independent company PricewaterhouseCoopers is appointed by the official company auditor Seventh Continent

• 1997 Two new shops "Seventh Continent" are open

• 1998 The beginning of a new stage in development of the company — supermarkets in dormitory areas with the prices, available to all categories of the population, at high-quality preserving of the products and service traditional for Seventh Continent network become the priority direction for Seventh Continent. The seventh shop of Seventh Continent network is open.

• 1999 The number of shops of network increased to 9 shops

• 2000 The number of shops of network increased to 15 shops

2001: Entry into a pool "Six semerok"

• The number of shops of network increased to 22

• The pool Six of Semerok, consolidation of eight companies which are not competing among themselves, including Seventh Continent, M.Video, Sportmaster, "Starik Khottabych", "the Arbat Prestige", Avtokey, "MVO", "Куда.ru" is based

2002: Bonds on MICEX

• The number of shops of network increased to 31

• The Seventh Continent company of the first of domestic retail networks successfully placed a bonded loan on MICEX

• The service of the order and delivery Seventh Continent — "7K Delivery" begins to work

• Stroitelno-inzhiniringovye sistemy LLC — service of operation of buildings and constructions of Seventh Continent network begins to work

• On September 11, 2002 the issuer produces 300 thousand bonds of 1,000 rubles everyone. Vneshtorgbank acted as the underwriter of release.

2003: Division of shops into three formats

• The number of shops of network increased to 47. Moscow. The number of checks – 33.3 million. Revenue of JSC Sedmoy Kontinent – $342.2 million.

• Division of shops of network into three formats: "The seventh Continent — Shop at the House", "the Seventh Continent — the Supermarket", "The seventh Continent — Five stars"

• The Seventh Continent company became the winner of the special nomination "The Best Retail Network" (category "supermarkets") within the VII All-Russian competition "The Best Russian Enterprises" organized by Russian Union of Industrialists and Entrepreneurs, Chamber of Commerce and Industry of the Russian Federation and Expert institute with assistance of the Government of the Russian Federation.

• The Uniform Discount Card "Six Semerok" — the unique project which combined efforts of the leading network companies of Russia is provided. Card holders have an opportunity to use one card for receiving discounts in shops of the companies: "Starik Khottabych", Sportmaster, "Arbat Prestige", "Where. ru", M.Video, "MVO" and Seventh Continent

2004: The IPO on RTS

• The number of shops of network increased to 77. Moscow (76) and Moscow region (1). The number of checks - 46.1 million. Revenue of JSC Sedmoy Kontinent – $509.6 million.

• On September 8, 2004 the Seventh Continent company transferred to Vneshtorgbank money for repayment of the bonded loan placed on MICEX in 2002 in the amount of 300 million rubles. Thus, the company in full fulfilled the obligations.

• On November 12, 2004 the Seventh Continent company of the sector's first retail and consumer goods in Russia performed the IPO, having successfully placed 8,415,573 ordinary shares of new release that makes 13% of authorized capital of the company, on RTS Stock Exchange. The share price at placement was 275 rub, receipts from share placing about 2.3 billion rubles. As a result of the IPO company raised funds in the amount of $80 million. The raised funds were aimed at the development of the company and at expansion of retail network in a format supermarket and hypermarket.

• Stocks of JSC Sedmoy Kontinent are included in quoted list "B" (SCON code) and admitted to trading on RTS and MICEX.

• The company became the winner of the All-Russian tender "The Best Russian Enterprises" which is annually carried out by Russian Union of Industrialists and Entrepreneurs (RUIE) together with Chamber of Commerce and Industry of the Russian Federation and Expert Institute of RUIE - with assistance of the Government of the Russian Federation. According to the results of tender the Seventh Continent company was recognized by "The best retail network" in category Supermarkets and awarded with a prize of Catherine the Great

• JSC Sedmoy Kontinent signs long-term agreements of lease of 17 shops of Petrovsky network. Same year performs rebranding 15 of them under the Seventh Continent brand.

• The Seventh Continent company leased 3 shops of Samokhval network

2005: Opening of the first hypermarket under the Our brand

• The number of shops increased to 111. Moscow and Moscow region (100), Kaliningrad and Kaliningrad region (11). The number of checks – 67.6 million. Revenue of JSC Sedmoy Kontinent 2005 – $712.8 million.

• Opening of the first shop in a format hypermarket. The first hypermarket registered under the Our Hypermarket brand opened in Moscow on Bolshaya Cheremushkinskaya Street, vl. 1, in RIO shopping Center. The Our Hypermarket format became essentially new and perspective format for network. Actually the Seventh Continent network operating in four formats covers all key segments of the Russian retail market. The plans of the company are active development of the Our Hypermarket format in regions.

• On February 22, 2005 the State register of trademarks and service marks of the Russian Federation registered the trademark Nashprodukt which owner is JSC Sedmoy Kontinent. Thus, the company had a Private brand (Private Label) under the Our Product brand

• On September 27, 2005 JSC Sedmoy Kontinent signed the agreement on providing a term loan by means of placement of the first release of credit notes (Credit Linked Notes, further CLN) for the amount of 90 million dollars. And individual the lead manager of the first release of credit notes acted as the organizer MDM Bank. Dresdner Bank AG (London) acted as the credit agent and the initial creditor.

• Within implementation of strategy of regional expansion JSC Sedmoy Kontinent enters the market of promptly developing city of Kaliningrad and the Kaliningrad region, having made purchase of 11 shops of Altyn network. By the end of 2005 in Kaliningrad 8 shops under the Seventh Continent brand open.

• Own meat and baking production opens.

• "The seventh Continent" to become the winner of the National annual tender "Elite of the Stock Market — 2004" in The Best IPO Project nomination.

• Seventh Continent receives a prestigious award of the leading investment company of countries of Eastern Europe of EAST CAPITAL. The award in the Opening of Year 2005 nomination was awarded Seventh Continent companies for high growth rates, the competent development strategy and high efficiency of company management.

2006: Start of banking services

• The number of shops of network increased to 123.

• On April 14, 2006 JSC Sedmoy Kontinent and Deutsche UFG announced successful closing of the transaction on a public offer of stocks of JSC Sedmoy Kontinent and to attraction in the company about 6.6 billion rubles. Deutsche UFG acted as the Organizer, the placement Agent and the Manager of the bid book of the Offer. Within the Offer 10,480,603 ordinary registered shares of additional release (that made about 14% of the increased authorized capital of the Company), from which 723,546 shares were redeemed by the shareholders who submitted applications during the term of the exercise of the preemptive right were sold. The rest of a share issue of JSC Sedmoy Kontinent in number of 9,757,057 actions was sold to a wide range of the Russian and international investors. Demand for stocks of the company exceeded the offer almost twice.

• On April 24 JSC Sedmoy Kontinent and JSC Sobinbank announced implementation of the new joint project "In store banking". The companies make the decision on acquisition of 51% of stocks (Sedmoy Kontinent) and 49% of stocks (Sobinbank) of Finservice bank which offices will be located in shops of Seventh Continent network. Thus, the Seventh Continent company creates convenient and reliable infrastructure for buyers, performing the strategy according to discount and rewards programs by means of banking services.

• For the purpose of optimization of delivery of the press to consumers the publishing holding Moskovskij Komsomolets and JSC Sedmoy Kontinent combine efforts in the innovation project on creation of Riteylmediagroup LLC.

• On July 12, 2006 JSC Sedmoy Kontinent, implementing the strategy of regional expansion, Republic of Belarus, the city of Minsk announces acquisition of 50% of stocks of the North-Western Administrative District of Prostormarket.

• The North-Western Administrative District of Prostormarket, is the first Belarusian company which successfully opened the first ProStore hypermarket in Minsk.

• On October 12, 2006 in the center of Moscow the updated Gastronomy Smolensky shop opens. It becomes a milestone event of year as the Five Stars format purchases the new person and becomes the premium format meeting the requirements of time. On December 22 opening of the second shop participating in the program of restyling in Atrium shopping Center took place.

• On November 15 JSC Sedmoy Kontinent announced the joint project with Finservice bank - "We work for you - we earn together"! The unique project allowing buyers of network to acquire shares of the company.

• On December 6, 2006 "NASH Hypermarket", opened on November 4, 2006 the city of Ryazan, received a prestigious award "The best hypermarket of year" at tender Business results of 2006, carried out in Ryazan.

2007: Regional expansion

• On January 9, 2007 the company announced increase in an authorized equity interest of the North-Western Administrative District in Prostormarket (Republic of Belarus, the city of Minsk) up to a controlling stake – 50% plus 1 action.

• On February 9, 2007 within program implementation of rebranding of bonus supermarkets of the "Seventh Continent — Five Stars" format the company opens new shop "Gastronomiya" in the heart of the capital in shopping Mall Okhotny Ryad (Manezhnaya Square, 1). The new shop is the first and only product supermarket located in the territory of shopping Mall Okhotny ryad from the date of its basis.

• On March 9, 2007 Seventh Continent announces acquisition of 100% of authorized capital of JSC Objedinennaya torgovaya nedvizhimost. Total amount of the transaction was 3,950 million rubles. The Integrated Trade Real Estate company is the owner of 29 objects of the trade real estate in Moscow which total area is about 68 thousand sq.m.

• On March 15, 2007 the company announces creation of 100% of the SKMO Limited liability company subsidiary company.

• On March 15, 2007 JSC Sedmoy Kontinent enters the market of the Urals, having opened the first hypermarket "Our Hypermarket" in the city of Chelyabinsk (Artilleriyskaya St., 136, Gorki shopping Mall). The hypermarket in Chelyabinsk on the opening day is the biggest hypermarket of the company. The total area of hypermarket is 10.6 thousand square meters.

• On April 26, 2007 JSC Sedmoy Kontinent announced expansion of the presence in Russian regions, having signed with Tashire Group of the agreement, providing construction of three Shopping and entertainment centers, with a total area of 150 thousand sq.m, in the cities of Vologda, Petrozavodsk, Kostroma.

• On May 02, 2007 JSC Sedmoy Kontinent signed the agreement on proprietary insurance and the civil responsibility with JSC Kapital Strakhovaniye which is a part of Kapital Insurance group. The insured sum of the agreement made more than 350 mln. dollars of the USA, the duration of the agreement - 2 years.

• On May 25, 2007 Seventh Continent became the winner of the VI All-Russian tender "Gold Networks — 2007" in The Best Supermarket Chain nomination.

• On May 28, 2007 JSC Sedmoy Kontinent signed the agreement with Stroimontazh LLC providing implementation of construction of Shopping and entertainment center in Novocherkassk with a total area more than 40 thousand sq.m.

• On June 09, 2007 JSC Sedmoy Kontinent and Tashire Group signed the strategic Agreement on joint participation in project implementation of Moscow and regions.

• On June 21, 2007 Seventh Continent successfully placed a five-year bonded loan of series 02 (GRN 4-02-00462-H of 12/26/2006) for the amount of 7,000 million rubles. A rate of the 1st coupon - 7.8% per annum. The organizer, the underwriter and the payment agent is MDM Bank.

• On June 26, 2007 Seventh Continent signed the construction agreement of hypermarket in the city of Yaroslavl (Frunzensky district, Gogol St.) with a total area of 11 thousand sq.m. Opening of hypermarket is planned for 2010.

• On August 16, 2007 Seventh Continent announced strengthening of the positions in the market of the Urals and fast opening of two shops in the city the million plus city of Perm.

• On August 29, 2007 JSC Sedmoy Kontinent signed the Loan agreement in the amount of 36 mln. dollars of the USA for a period of 3 years with the Black Sea bank of trade and development (ChBTR).

• On September 27, 2006 JSC Sedmoy Kontinent performed repayment of the rest of the credit of Dresdner Bank AG London Branch for the amount of 31.8 mln. dollars of the USA.

• On November 8, 2007, Alexander Zanadvorov consolidated 100% of stocks of 7K invest-holding Ltd.

• On December 20, 2007 JSC Sedmoy Kontinent performed payment of the bond coupon of series 02, GRN 4-02-00462-H of 12/26/2006. The annual interest rate according to the coupon is 7.8% per annum, conditions of bond issue provide the semi-annual coupon period. The payment amount on payment of the first coupon made 272.23 million rubles.

• On December 21, 2007 Seventh Continent announces further steps on mastering of the market of the Urals and opening of premier shop in a format supermarket in the city of Perm, to the address: the street of Kuibyshev, house 16 and about fast opening in this city of hypermarket of Our Hypermarket Company.

2008

• "The seventh Continent" opened 3 hypermarkets and 3 supermarkets. Fixed the positions in the market of the Urals (Perm, Our Hypermarket), left to the new region (Yaroslavl, Our Hypermarket), opened the third hypermarket in the city of Moscow.

• On January 31 Seventh Continent performed interest payment on the credit to the Black Sea bank of trade and development (ChBTR). Payments for percent made 1.23 mln. dollars of the USA.

• On March 19 inconvertible bonds to bearer of a series 02 companies of JSC Sedmoy Kontinent are included in quoted list "A" (MICEX) of the first level.

• On April 15 JSC Sedmoy Kontinent became the winner the national award "IT Leading of 2008". Merits of JSC Sedmoy Kontinent and personally the Director of service of program and information support Andrey Vladimirovich Pachikin were mentioned by an award in the special nomination "For an Outstanding Contribution to Information Technology Development in Russia".

• On April 22, 2008 employees Seventh Continent, Chepikova Oksana Yurevna and Pachikin Andrey Vladimirovich, became winners of the Russian tender "Manager of Year-2007" and "The Best Manager of Structural Division — 2007".

• On April 30 Seventh Continent wins the VIII All-Russian tender "Gold Networks — 2008" in the nomination against "supermarket". The second year in a row receives a rank of the best Company supermarket chain.

• On June 19 JSC Sedmoy Kontinent in full performed payment of the bond coupon of series 02, GRN 4-02-00462-H of 12/26/2006. An annual interest rate according to the coupon - 7.8% per annum. Conditions of bond issue provide the semi-annual coupon period. The payment amount on payment of the first coupon made 272.23 million rubles.

• On June 20 JSC Sedmoy Kontinent purchased 100% of authorized capital of MIS LLC company. Under the terms of the agreement after the end of construction and commissioning, JSC Sedmoy Kontinent passes the property right to Shopping mall in the city of Rostov-on-Don (Nagibin Ave., the region of the Anonymous beam). The total area of Broadcasting Company is over 78 thousand sq.m.

• On June 21 the annual general meeting of shareholders and the first meeting of the Board of Directors of JSC Sedmoy Kontinent in new structure took place. In day of carrying out JSC Sedmoy Kontinent General shareholder meeting the duration of the agreement about delegation of power of sole executive body of JSC Sedmoy Kontinent of management company of Sedmoy Kontinent-RT Ltd expired. According to the solution of the General meeting the new structure of Board of Directors is elected: Zanadvorov Alexander Yuryevich, Naydyshev Mikhail Alekseyevich, Karnaukhov Vladimir Alekseyevich, Ilyashenko Galina Igorevna, Slepenkova Natalia Vladimirovna. Two new members were a part of Board of Directors: CEO of 7K invest-holding Ltd Morozov Boris Vladimirovich and Managing director of Yust-Capital Investment company Soglayev Igor Vladislavovich. In the same day the first meeting of the Board of Directors of JSC Sedmoy Kontinent in new structure took place. The CEO of JSC Sedmoy Kontinent Kovalchuk Stepan Vasilyevich to whom operational management by the Company is assigned is elected the solution of Board of Directors. Ilyashenko Galina Igorevna is elected the chairman of the board of directors.

• On July 30, 2008 JSC Sedmoy Kontinent signed the agreement with JSC JSB ROSBANK on providing a credit line in the amount of 150 mln. dollars of the USA a repayment period till December 29, 2008.

• On July 31 Seventh Continent in full performed interest payment on the credit to the Black Sea bank of trade and development (ChBTR). The payment amount on interest payment made 852.1 thousand dollars of the USA.

• On October 2, 2008 the Central office of the Company moves to new business center near Zamoskvorechye of the Central Administrative District to the address: 115114, Moscow, Letnikovskaya St. 10 building 5.

• On October 7 at the XI annual summit "Trade in Russia" of the Company the first place in the all-Russian rating "TOP 100 Russian Retail" in the "Most It Is Information the Active Company" nomination is awarded.

• On November 7 within implementation of the Government of the Russian Federation of support of the retail sector the VTB Bank approves selection of a credit line of JSC Sedmoy Kontinent in the amount of 2.5 billion rubles.

• On November 11, 2008 the company opens the restored Seventh Continent — the Gastronomy shop on Bolshaya Lubyanka. The central epicure Seventh Continent on Bolshaya Lubyanka was open in 1994 and became one of the first shops of network and one of the first supermarkets not only in Moscow, but also in Russia.

• On November 13 the Company signs the agreement on opening of a credit line in JSC ROSBANK on 150 mln. dollars of the USA.

• On December 18 the Company in full performs payment of the third bond coupon of series 02, GRN 4-02-00462-H of 12/26/2006 in the amount of 272.23 million rubles.

2009

• On February 12 Seventh Continent opened the fourth and biggest "NASH Hypermarket" in the city of Moscow. The hypermarket was located in modern Mega Mall of RIO, on intersection of MKAD and Dmitrovskoye Highway.

• On March 3, 2009 JSC Sedmoy Kontinent is awarded with the degree prize "For a Contribution to Charity" II in a newspaper ranking Vedomosti.

• On March 5 within implementation of the Government of the Russian Federation of support of the retail sector the VTB Bank granted a short-term loan to JSC Sedmoy Kontinent in the amount of 500 million rubles.

• On April 20, 2009 the Company appoints MDM Bank the agent on restructuring of obligations under bonds of series 02.

• On April 30 the Company announces the main conditions of restructuring of obligations under bonds of series 02.

• On June 2 the Board of Directors makes the decision on release of a bonded loan of BO-01 series circulation period 2 years in the amount of 5.8 billion rubles.

• On June 4 in the city of Moscow on Chusovskaya Street the 130th shop of network working in a format "supermarket" opens.

• On June 19 the Company announces placement of debut issue of Exchange-traded bonds of 5.8 million pieces.

• On June 23 the Company announces results of restructuring of obligations for bond issue of series 02 and prolongation of validity periods of the offered scheme of restructuring.

• On June 29 at the Central office of the Company on Letnikovskaya Street the Gastronomiya shop opens.

• On June 30 at the Annual general shareholder meeting the new structure of Board of Directors is elected: Sergey Timofeyevich Gruzdev, Alexander Yuryevich Zanadvorov, Vladimir Alekseyevich Karnaukhov, Stepan Vasilyevich Kovalchuk (Chairman of the board of directors), Boris Vladimirovich Morozov, Natalia Vladimirovna Slepenkova, Dmitry Gennadiyevich Sukhorukov. Based on the General meeting the decision not to pay dividends according to the results of 2008 financial year is made. In the same day the solution of Board of Directors in new structure the CEO of JSC Sedmoy Kontinent elects Boris Vladimirovich Morozov.

• On September 28 the Company announced drawing of 2 public irrevocable offers on a bond buyback of the Company of series 02 with completion dates of obligations under the redemption on October 15, 2009 and on May 18, 2010 respectively.

• On November 06 the Company announced carrying out restructuring of the obligations for a bond buyback of series 02 placed on June 21, 2007 with a total amount of 7 billion rubles. Taking into account the carried-out restructuring, accomplishment of conditions of the additional public offer on October 15, 2009 and also the bondholders of a series of 02 decisions on signing of settlement agreements accepted with a row, the Company reached decisions on settlement of the obligations to 99.86% of the nominal volume of issue of this bond issue.

• On November 25 in the city of Belgorod the Our Hypermarket is open.

2010

• On January 13, 2010 the Seventh Continent company repaid a part of the credit to the Black Sea bank of trade and development (ChBTR) in the amount of 5.4 mln. dollars of the USA.

• On March 19, 2010 Seventh Continent in full performed payment of the third coupon for exchange-traded bonds of BO-01 series.

• On April 20, 2010 Seventh Continent repaid the credit of JSC Sberbank of Russia in the amount of 600 million rubles.

• On May 18, 2010 passed the public offer on series 02 bond buyback, having in full satisfied the submitted applications.

• On June 17 the Company paid the sixth bond coupon of series 02.

• On June 18 the Company repaid 20% of the nominal value of Bonds of release of BO-01 and paid the fourth coupon. Also Kopania made payment of the fourth coupon for exchange-traded bonds of BO-01 series.

• On June 28 annual general shareholder meeting JSC Sedmoy Kontinent took place. Based on the General meeting the decision not to pay dividends according to the results of 2009 financial year is made. In Council three persons were among independent Directors, namely: Ageenkov Alexander Vladimirovich, Ievangelisti Rodolphe Lucian Felix, Lazayerva Victoria Igorevna. According to the solution of the General meeting, the new structure of Board of Directors consists of 7 members: Ageenkov Alexander Vladimirovich, Gruzdev Sergey Timofeyevich, Ievangelisti Rodolphe, Zanadvorov Alexander Yuryevich, Karnaukhov Vladimir Alekseyevich, Lazareva Victoria Igorevna, Slepenkova Natalia Vladimirovna. Ageenkov Alexander Vladimirovich is elected the chairman of the board of directors.

• On July 22 the company consolidated 100% of stocks of JSC Financial Service Bank.

• On August 4 the Company completely repaid the three-year credit of the Black Sea bank of trade and development.

• On September 17 the Company repaid 20% of the nominal value of Bonds of release of BO-01 and payment of the fifth coupon.

• On December 17 the Company paid the sixth coupon and ahead of schedule repaid Bonds of release of BO-01.

• In 2010 the Company opened 8 shops, including: 6 supermarkets (Moscow) and 2 hypermarkets (Moscow and Obninsk).