The Board of Directors of PJSC “Detsky Mir” updated the 3-year Long-Term Incentive Plan for the Company’s senior management

Moscow, 08 October 2018 – The Board of Detsky Mir PJSC (“Detsky Mir” or “the Company”), updated the Long Term Incentive Plan (the LTIP) for the senior management of Detsky Mir with a view to further encouraging continuing focus on creation of sustainable value for the shareholders.

The duration of the LTIP has not changed and covers the three-year period to February 2020, the third anniversary of the Company’s IPO. The main change deals with an increase in the size of the bonus fund in value to up to 4.6% (hitherto – 2%) of the increase in the Company’s stock market value (including dividend payments) over the period.

In accordance with the terms of the LTIP, senior management in continuing employment by the Company upon the expiration of this period will be eligible for share grants or cash payments. The LTIP continues to include more than 20 key employees of the Company, including the CEO.

The LTIP also keeps providing for additional cash payments expected to total around RUB 500 million (plus any social taxes); of this amount, around RUB 250 million was paid in January 2018, while payment of the balance can be paid in 2019 subject to Board approval.

For additional information:

Detsky Mir Group (MOEX: DSKY) is Russia’s largest specialized children’s goods retailer. The company operates a network of 650 stores, including 599 Detsky Mir stores in Russia and Kazakhstan located in 225 cities, as well as 51 ELC (Early Learning Centre) and ABC stores in Russia. The total selling space as of 30 June 2018 was approximately 704,000 square meters.

In accordance with the audited Financial Statements under IFRS for FY 2017, Group revenue amounted to RUB 97.0 bn., adjusted EBITDA totaled RUB 10.7 bn and adjusted profit amounted to RUB 5.5 bn..

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSC Sistema[1] – 52.10%, Russia-China Investment Fund (RCIF) [2] – 14.03%, other shareholders owning less than 5% of the shares – 33.87%.

Learn more at www.detmir.ru, corp.detmir.ru and elc-russia.ru.

(8) Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, children’s goods retail, paper and packaging, healthcare services, agriculture, high technology, banking, real estate, pharmaceuticals and hospitality.

(9) RCIF is an equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), hold its stake in PJSC Detsky Mir through its funds: FLOETTE HOLDINGS LIMITED and EXARZO HOLDINGS LIMITED.