Ad-Hoc Notice

Moscow, Russia, 30 November 2020 – Board of Directors and Management Board of Detsky Mir PJSC (“Detsky Mir” or the “Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer, have noted the news reports about the proposal by Altus Capital (“Altus”) to the shareholders of the Company to acquire  29.9% of the Company’s share capital.

Board of Directors and Management Board of the Company have not had any prior discussions with Altus about a possible transaction with the Company’s shares, have not solicited any offers from it, and do not have any information about Altus’s intentions and views with respect to the Company and the stake in the Company that it plans to acquire. We shall provide further updates to the public on this situation in due course once we have additional information.

For additional information:

The Detsky Mir Group of Companies (MOEX: DSKY) is an omnichannel retailer and the leader in the children’s goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, the detmir.ru online store and marketplace, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 805 Detsky Mir stores located in 319 cities in Russia, Kazakhstan and Belarus, 13 Detmir Pickup stores, as well as 14 Zoozavr stores as of 30 November 2020. The total selling space was approximately 872,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: Free float[1] – 100%.

Websites: detmir.ru, ir.detmir.ru.

([1]) Excluding quasi-treasury shares and shares held by management and directors (0.8% of total shares).

Detsky Mir To Become the First Russian Company with 100% Free Float

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY LAW

Moscow, Russia – 2 September 2020 – Public Joint Stock Company “Detsky Mir” (the “Company” or “Detsky Mir”), Russia’s largest specialised children’s goods retailer, acknowledges today’s announcement in relation to the pricing of a secondary offering of 184,750,001 Detsky Mir shares (the “Shares”) at a price of RUB 112 per Share by Sistema PJSFC (“Sistema”) and the Russia-China Investment Fund (“RCIF”, established by the Russian Direct Investment Fund and China Investment Corporation) (collectively, the “Selling Shareholders”) (the “Offering”).

Maria Davydova, PJSC Detsky Mir Chief Executive Officer, said:

“It has been three and a half years since Detsky Mir’s IPO – a truly landmark event that defined the Company’s subsequent development. Today we can confidently say that during that period we have fulfilled our promises and delivered solid returns for our shareholders and investors. Our achievements have been significant: the Company has successfully transformed itself into one of the leading omni-channel retailers in Russia, demonstrating high sales growth and profitability.

Now that AFK Sistema is no longer our shareholder, we want to thank it for being such a valuable investment partner for our Company, and for its meaningful help in developing Detsky Mir’s business model and effective corporate governance structure, which established Detsky Mir as a highly successful independently-managed business and laid a solid foundation for its further future prosperity. We wish Sistema’s team continued success in being at the forefront of innovative investment projects across various sectors of the Russian economy, and hope that it always reaches its goals.

We highly appreciate the high investor interest in the shares of our Company, and gladly welcome new foreign and Russian investors that have joined the community of our long term shareholders. This past transaction has been, without a doubt, another landmark event for our Company, as well as the entire Russian equity market, as Detsky Mir will become the first Russian company with a 100% free float[1]. As the Company’s management, we understand the enormous level of responsibility that this status places upon us, and will make our utmost effort to fully achieve the goals we have set for our business.

Our team is fully ready to execute on the recently announced strategic development vectors for the Company. We are backed by our strong brand and millions of customers, for whom we are creating a ecosystem that covers the needs of children, parents and home pets. Detsky Mir will continue to consolidate the children’s goods market via further rollout of its omni-channel business model, expansion of its geographical footprint, strengthening of its federal and regional logistical infrastructure, broadening of its assortment, also by means of development of its own marketplace, as well as by improving customer experience across channels. As we seek to address an ever-widening range of our customers’ needs, we see huge potential in developing digital services for children and parents, as well as bolstering our presence in the pet supplies market. Our goal is to generate high investment returns for our shareholders and make them proud of having invested in Detsky Mir as they share in our common success.”

Prior to completion of the Offering, Sistema had a 20.38% ownership interest and RCIF had a 4.62% ownership interest, respectively, in the Company. Upon the completion of the Offering, Sistema and RCIF will cease to hold any ownership interest in the Company.

The Company will not receive any proceeds from the Offering. The Selling Shareholders’ sale of the Shares will not result in dilution of the Company’s issued and outstanding shares.

***

For additional information:

The Detsky Mir Group of Companies (MOEX: DSKY) is a multi-format retailer and the leader in the children’s goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 784 Detsky Mir stores located in 303 cities in Russia, Kazakhstan and Belarus, five Detmir Pickup stores, as well as 27 ELC, 3 ABC and eleven Zoozavr stores as of 31 August 2020. The total selling space was approximately 855,000 square meters.

Important Notice:

The information contained herein has been provided solely for use for this announcement. By reading this announcement, you agree to be bound by the limitations set out below. This announcement do not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of any entity, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto.

Certain statements in this announcement are not historical facts and are forward looking statements. Forward looking statements include statements concerning the Russia-China Investment Fund, Sistema PJSFC (collectively, the “Selling Shareholders”) or PJSC “Detsky mir” (the “Company”), their plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, financial position and future operations and development, the Company’s or the Selling Shareholders business strategy and the trends the Company or the Selling Shareholders anticipate in the industries and the political and legal environment in which the Company or the Selling Shareholders operate and any other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward looking statements. Neither the Company nor the Selling Shareholders intend, and assume any obligation, to update any forward looking statement contained herein.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company, the Selling Shareholders or any of their respective directors, officers or employees or any other person as to the accuracy or completeness of the information contained in this document and no liability whatsoever is accepted by the Company, the Selling Shareholders or their respective affiliates, advisors, agents, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any errors or omissions of information or use of such information or otherwise arising in connection therewith.

This document and the information contained herein is for information purposes only and does not constitute or form part of any offer of, or the solicitation of an offer to acquire or dispose of securities in the United States, Canada, Australia or Japan or in any other jurisdiction in which such an offer or solicitation is unlawful. The securities referred to herein (the “Shares”) have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), or under the applicable securities laws of any state or other jurisdiction of the United States, Canada, Australia or Japan. The Shares may not be offered or sold in the United States unless registered under the Securities Act or offered in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and the securities laws of any relevant state or other jurisdiction of the United States. There will be no public offering of the Shares in the United States.

This document and any offer of securities to which it relates are only addressed to and directed at (1) in any Member State of the European Economic Area, persons who are “qualified investors” as defined in Regulation (EU) 2017/1129 (as amended, the “Prospectus Regulation”); and (2) in the United Kingdom, persons who (i) have professional experience in matters relating to investments who fall within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”); (ii) fall within Article 49(2)(a) to (d) of the Order; or (iii) are persons to whom an offer of the Shares may otherwise lawfully be made (all such persons referred to in (1) and (2) together being referred to as the “Relevant Persons”). The information regarding the offering set out in this document must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This document is not an offer or an invitation to make offers or an advertisement of securities in the Russian Federation.

[1] Excluding quasi-treasury shares and shares held by management and directors

The Results of Detsky Mir’s Annual General Meeting of Shareholders

Moscow, Russia, 16 July 2020 – The Board of Detsky Mir PJSC (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, elected Evgeniy Madorskiy as Chairman of the Board of Directors of the Company.

The Board of Directors established the following Board Committees:

Strategy Committee

1. Evgeniy Madorskiy   – Chairman of the Committee,

2. Maria Davydova,

3. Anna Shakirova,

4. Pavel Boyarinov,

5. Alexander Shevchuk.

Audit Committee

1. Pavel Boyarinov  – Chairman of the Committee,

2. Alexander Shevchuk,

3. Anna Shakirova.

Nomination and Remuneration Committee

1. Stanislav Kotomkin – Chairman of the Committee,

2. Pavel Boyarinov,

3. Evgeniy Madorskiy.

For additional information:

Denis Gurov Appointed Logistics Director at Detsky Mir Group

Moscow, Russia, 6 July 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer, announces the appointment of Denis Gurov as Logistics Director and Member of the Company’s Management Board.    

Denis has over 16 years of retail and logistics experience. Before joining Detsky Mir, he led the logistics function at Dixy Group, where he was responsible for managing eight distribution centers and an in-house delivery service. Prior to that, Denis was in charge of logistics at Pharmacy Chain 36.6, where he launched an automated line project to considerably cut the chain’s logistics costs. Denis started his professional career at the leader of the logistics industry both in Russia and globally, the international express freight and document delivery company DHL, where he organized and launched a warehouse from scratch.

As the Logistics Director at Detsky Mir Group, Denis will be responsible for further expanding the Group’s logistics capacity by launching regional distribution centers across a series of large Russian cities, developing delivery services and scaling up omnichannel processes.

“First and foremost, I would like to thank the outgoing Logistics Director, Vyacheslav Mikhnenko, for his efforts and immense contribution to developing the logistics processes across Detsky Mir. Over the past eight years, he has done a phenomenal job, providing a solid foundation for our further growth. I am really happy that Denis Gurov has joined our team and am convinced that the challenges we are stepping up to, along with our sophisticated logistics processes, will give us the impetus to deliver on the most ambitious of goals and leading-edge projects, fit for our position as the leader of the children’s goods market,” noted Maria Davydova, CEO of PJSC Detsky Mir.

For additional information:

The Detsky Mir Group of Companies (MOEX:DSKY) is a multi-format retailer and the leader in the children’s goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 782 Detsky Mir stores located in 301 cities in Russia, Kazakhstan and Belarus, five Detmir Pickup stores, as well as 43 ELC, 9 ABC and eleven Zoozavr stores as of 30 June 2020. The total selling space was approximately 855,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSC AFK Sistema[1] – 20.38%; The Capital Group Companies, Inc. – 5.64%; Russian-Chinese Investment Fund (RCIF) [2][3]– 4.62%, Free float – 69.36%.  

Websites: detmir.ru, elc-russia.ru, ir.detmir.ru

([1]) 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

([2]) RCIF, an equity investment fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: Floette Holdings Limited and Exarzo Holdings Limited.

The Results of Detsky Mir’s Annual General Meeting of Shareholders

Moscow, Russia, 2 July 2020 – PJSC Detsky Mir (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, announces the results of its Annual General Meeting of Shareholders (AGM) that took place on 30 June 2020.

The Annual General Meeting of Shareholders passed the following resolutions:

1. The distribution of RUB 2,217,000,000 as a final dividend for FY 2019 (RUB 3.0 per ordinary share), with 11 July 2020 set as the dividend record date.

2. The election of the Board of Directors of PJSC Detsky Mir as follows:

1. Maria Davydova
2. Pavel Boyarinov
3. Stanislav Kotomkin
4. Evgeniy Madorskiy
5. Tony Maher
6. Oleg Mamaev
7. Olga Ryzhkova
8. Vladimir Travkov
9. Anna Shakirova
10. Alexander Shevchuk

The biographical details of the members of the Board of Directors are available at ir.detmir.ru

3. The approval of the Annual Report and Financial Statements for FY 2019.

4. The election of ZAO Deloitte & Touche CIS as auditor of Detsky Mir for FY 2020.

5. The election of the Audit Commission as follows:

1. Yury Vikulin
2. Irina Borisenkova
3. Anton Kozlov

6. The approval of the Company’s membership of the Retail Companies Association (ACORT), an association of commercial entities.

For additional information:

The Detsky Mir Group of Companies (MOEX:DSKY) is a multi-format retailer and the leader in the children’s goods sector in Russia. The Group comprises the Detsky Mir and the Detmir Pickup retail chains, the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 782 Detsky Mir stores located in 301 cities in Russia, Kazakhstan and Belarus, five Detmir Pickup stores, as well as 43 ELC, 9 ABC and eleven Zoozavr stores as of 30 June 2020. The total selling space was approximately 855,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSC AFK Sistema[1] – 20.38%; The Capital Group Companies, Inc. – 5.64%; Russian-Chinese Investment Fund (RCIF) [2][3]– 4.62%, Free float – 69.36%.  

Websites: detmir.ru, elc-russia.ru, ir.detmir.ru

([1]) 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

([2]) RCIF, an equity investment fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: Floette Holdings Limited and Exarzo Holdings Limited.

The Board of Directors Approved Management Change

11 March 2020, Moscow, Russia – PJSC Detsky Mir (“Detsky Mir” or the “Company”, MOEX: DSKY), Russia’s and Kazakhstan’s largest children’s goods retailer, announces that its Board of Directors at a meeting on 10 March 2020 approved the early termination of appointment of Vladimir Chirakhov as the Company’s CEO, to be succeeded by Maria Davydova, Deputy CEO of Commercial Activities.

The Board of Directors passed the following resolutions:

1. The early termination of the appointment of Vladimir Chirakhov, CEO of PJSC Detsky Mir effective 2 April 2020.
2. The appointment of Maria Davydova as CEO of PJSC Detsky Mir effective 3 April 2020.
3. The appointment of Vladimir Chirakhov as Chairman of the Board of Directors of PJSC Detsky Mir effective 3 April 2020.

***

For additional information:

Detsky Mir Group (MOEX: DSKY) is a multi-format retailer and Russia’s and Kazakhstan’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir and the Detmir.ru retail chains, the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a network of 766 Detsky Mir stores located in 293 cities in Russia, Kazakhstan and Belarus, 4 Detmir.ru stores, as well as 49 ELC, 13 ABC and ten Zoozavr stores as of 31 December 2019. Total selling space was approximately 843,000 square meters.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSFC Sistema[1]  – 33.38%, Russia-China Investment Fund (RCIF) [2] – 9.0%, free-float – 57.62%. 

Lear more at www.detmir.ru, elc-russia.ru, ir.detmir.ru

(1) 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.

(2) RCIF, an equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: Floette Holdings Limited and Exarzo Holdings Limited.

Detsky Mir Announces Management Change

3 March 2020, Moscow, Russia – The Board of Directors of PJSC Detsky (“Detsky Mir” or the “Company”, MOEX: DSKY), Russia’s largest children’s goods retailer, announces that the Board’s next meeting will discuss the early termination of appointment of Vladimir Chirakhov as the Company’s CEO and Chairman of the Management Board, to be succeeded by Maria Davydova, Deputy CEO of Commercial Activities.

In its meeting scheduled for 10 March 2020, the Board will address the following agenda items:

• The early termination of the appointment of Vladimir Chirakhov, CEO and Chairman of the Management Board of PJSC Detsky Mir effective in April 2020.
• The appointment of Maria Davydova as CEO and Chairman of the Management Board of PJSC Detsky Mir for a term of three (3) years effective in April 2020.
• The appointment of Vladimir Chirakhov as Chairman of the Board of Directors of PJSC Detsky Mir effective in April 2020.

“We truly owe a debt of gratitude to Vladimir Chirakhov for so many great years at the helm of Detsky Mir. Over this period, the Company has, beyond a shadow of a doubt, evolved into an industry leader, consistently delivering high growth rates in Russia while also entering new markets and actively building an online marketplace. Under Vladimir’s leadership, Detsky Mir not only entered the public capital markets, but also conducted a secondary public offering last year, which has already translated into a significant rise in market capitalization thanks to increased liquidity. We welcome Maria Davydova in her new capacity and are confident that she will continue to chart the Company’s strategic course successfully, and maintain strong growth performance and high dividend payouts. In the meantime, Vladimir Chirakhov’s appointment as Chairman of the Board of Directors will ensure a smooth succession,” said Alexey Katkov, Chairman of the Board of Directors of PJSC Detsky Mir, and Managing Partner at PJSFC Sistema.

“I am confident that I have succeeded in building a strong team of professionals at Detsky Mir. Through eight years’ hard work, we have transformed a loss-making company into a highly effective and dynamically expanding business. We completed a successful IPO, and have delivered both a double-digit EBITDA and high dividend payouts to our shareholders and other investors.

Our strong financial performance in 2019 evidences the fact that we have chosen an effective growth strategy for the Company, with our consolidated revenue up 16.1% year-on-year to RUB 128.8 billion and adjusted EBITDA up 16.3% year-on-year to RUB 14.7 billion. We have distributed RUB 7 billion to our shareholders as a dividend and cut our debt compared to 2018, both in absolute terms and as a ratio to EBITDA. Furthermore, PJSC Detsky Mir’s net profit for Q4 2019 under Russian Accounting Standards is expected to increase by 23% year-on-year to RUB 4.1 billion. We will recommend distributing the entire net profit as a dividend for the year in Q2 2020.

There is no doubt in my mind that all top executives will stay at Detsky Mir, while Maria Davydova’s in-depth experience and knowledge of all business processes and industry-specific nuances will contribute to the business growth of the Company. Over the past seven years, Maria has greatly contributed to our successful financial and operational performance, cementing our market position and evolving into a truly global toy retailer. I am secure in the belief that Maria will lead Detsky Mir to further successes. As Chairman of the Board of Directors, I will lend Maria my full support, and will continue to actively engage in the operational and strategic governance of the Company,” commented Vladimir Chirakhov, CEO of PJSC Detsky Mir.

“Detsky Mir is the undisputed leader of the post-Soviet market for children’s goods, yet has strong potential for further growth. I will continue to deliver on all of Detsky Mir’s previous strategic commitments as the new CEO, so as to build a more effective omnichannel business model and enter new markets. My team and I will endeavor to deliver on our promises to shareholders and secure our growth and business performance targets,” commented Maria Davydova, Deputy CEO of Commercial Activities at PJSC Detsky Mir.

Biography of Maria Davydova

Maria Davydova joined Detsky Mir Group in 2013 as Procurement Director in Toys. In March 2015, the Company’s Board of Directors appointed Maria as a member of the Management Board, Deputy CEO of Commercial Activities, and Head of Fast Moving Consumer Goods at the Commercial Department. Over the seven years of Maria’s direction, Detsky Mir’s market share reached 29.9% in Products for Newborns and 51.3% in Toys, propelling the Company to become Russia’s largest toy retailer.

Prior to joining Detsky Mir, Maria served as Commercial Director at leading consumer goods distributor NTS Gradient (gradient.ru). She was responsible for exclusive contracts and private labels, and was directly engaged in launching the Merries and Pigeon brands in the Russian market. She has also served in various roles, including Director of Children’s Goods and Commercial Director for Home and Recreation Products, at Enter – Svyaznoy.

Born in 1974, Maria has a degree in Economics from the Institute of Humanities (1998). Maria has extensive expertise in marketing, category management and procurement.

***

CONFERENCE CALL INFORMATION

Detsky Mir’s management will host a conference call today at 21:00 (Moscow time) / 18:00 (London time) / 13:00 (New York time).

The dial-in numbers for the conference call are:

Russia

+7 495 283 98 58

UK

+44 203 984 98 44

USA

+1 718 866 46 14

PIN

288 543#

For additional information:

Detsky Mir Group (MOEX: DSKY) is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir and the Detmir.ru retail chains, the ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The Company operates a network of 766 Detsky Mir stores located in 293 cities in Russia, Kazakhstan and Belarus, 4 Detmir.ru stores, as well as 49 ELC, 13 ABC and ten Zoozavr stores as of 31 December 2019. Total selling space was approximately 843,000 square meters

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSFC Sistema[1]  – 33.38%, Russia-China Investment Fund (RCIF) [2] – 9.0%, free-float – 57.62%. 

Lear more at www.detmir.ru, elc-russia.ru, ir.detmir.ru

Disclaimer

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of Detsky Mir. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “intend”, “will”, “could,” “may” or “might” the negative of such terms or other similar expressions. Detsky Mir wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Detsky Mir does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Detsky Mir, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries Detsky Mir operates in, as well as many other risks specifically related to Detsky Mir and its operations.

(1) 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.

(2) RCIF, an equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), holds its stake in PJSC Detsky Mir through its funds: Floette Holdings Limited and Exarzo Holdings Limited.

THE RESULTS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS OF PJSC DETSKY MIR

Moscow, 20 May 2019 – Detsky Mir PJSC (“Detsky Mir” or “the Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer and a Sistema Group company (LSE: SSA, MOEX: AFKS) announces the results of its Annual General Meeting of Shareholders (AGM) that took place on May, 16, 2019.

The Annual General Meeting of Shareholders passed the following resolutions:

1. Distribution of RUB 3.3bn in final dividends for FY 2018 (RUB 4.45 per one ordinary share). The list of persons entitled to dividends will be made on May, 27, 2019.

2. Election of the Board of Directors of PJSC Detsky Mir as follows:

1. Pavel Boyarinov;

2. Alexey Katkov;

3. Stanislav Kotomkin;

4. Evgeny Madorsky;

5. Tony Mayer;

6. Olga Ryzhkova;

7. Vyacheslav Khvan;

8. Vladimir Chirakhov;

9. Alexander Shevchuk;

10. Alexander Shulgin.

3. Approval of the Annual Report and Financial Statements for FY 2018 and revised Charter of PJSC Detsky Mir.

4. Election of CJSC Deloitte and Touche CIS as auditor of Detsky Mir for FY 2019

5. Election of the Audit Review Commission as follows:

1. Yuri Vikulin;

2. Anatoly Panarin;

3. Marina Zhuravleva.

For additional information:

Detsky Mir Group (MOEX: DSKY) is a multi-format retailer and Russia’s largest specialized children’s goods retailer. The Group comprises the Detsky Mir retail chain, ELC (Early Learning Centre in Russia) and the ABC retail chains, as well as the Zoozavr pet supplies retail chain. The company operates a network of 674 Detsky Mir stores located in 254 cities in Russia, Kazakhstan and Belarus, as well as 56 ELC and 12 ABC stores as of 31 March 2019. The Zoozavr retail chain comprises six stores. Total selling space was approximately 769,000 square meters.

In accordance with the audited Financial Statements under IFRS, Group revenue amounted to RUB 110.9 bn for FY 2018, adjusted EBITDA totalled RUB 12.7 bn and adjusted profit amounted to RUB 7.2 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%. 

(1) 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.

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