DETSKY MIR GROUP ANNOUNCES OPERATING RESULTS FOR 1st QUARTER 2016

Detsky Mir Group (“Detsky Mir” or “the Group”), Russia’s largest children’s goods retailer, announces its unaudited operating results for the first quarter of 2016, which ended on 31 March 2016.

KEY OPERATING RESULTS FOR 1st QUARTER 2016

• Group unaudited revenue increased by 35% to RUB 16.4bn, vs. RUB 12.2bn in Q1 2015
• Detsky Mir’s like-for-like sales gained 13.1%[1] (with the number of checks growing by 0.9%, and the average check increasing by 12.1%)
• Group stores increased to 429 with total retail floorspace of approximately 495,000 sq. m. as a result of the opening of four new Detsky Mir stores in Q1 2016.

Vladimir Chirakhov, CEO of Detsky Mir Group said:

“As competitors rolled back growth plans, in the first quarter Detsky Mir continued to expand its chain, increasing the number of Group retail outlets to 429 stores. Unaudited consolidated revenue in the first quarter increased by 35% year-on-year to RUB 16.4bn. This significant growth in revenue was mainly driven by increased traffic in stores opened in 2015 and 2014, as well as an increase in like-for-like sales of 13.1%.

 In 2015 Detsky Mir Group became the largest taxpayer in Russia among children’s goods retailers. Total taxes paid in 2015 increased by 11.9% to RUB 3.7bn. Total taxes paid to the Republic of Kazakhstan increased by 13.7% to RUB 59.6mln.

Detsky Mir continues to adhere to its policy of limiting price growth on children’s goods. One promising area is the conclusion of new rouble-denominated supply contracts with international partners. In the first quarter we negotiated a rouble-based contract for the supply of children’s clothing with Reima, which will allow our customers to buy popular Finnish products at attractive prices.

In 2016, Detsky Mir Group will continue growing at a strong pace, with plans to open at least 50 new stores and hypermarkets, including five retail facilities in Kazakhstan.”

([1])  Like-for-like (LFL) and average check are hereinafter specified as year-on-year in Russian roubles in comparative periods, included only Detsky Mir stores in Russia.