Detsky Mir Announces the Date of AGM

Moscow, Russia, 26 May 2020 – Detsky Mir Group (“Detsky Mir”, the “Group” or the “Company”, MOEX: DSKY), Russia’s largest specialized children’s goods retailer, announces that its Board of Directors at a meeting on 25 May 2020 resolved to convene the Annual General Meeting of Shareholders (AGM). The AGM will be held by absentee vote, and the deadline for receipt of completed ballots is 30 June 2020. The record date for the AGM is 5 June 2020.

The Board of Directors recommended that PJSC Detsky Mir’s AGM approve a final dividend for 2019 of RUB 2,217,000,000 (90% of IFRS net profit[1] or 55% of RAS net profit¹), or RUB 3.0 per ordinary share.

The Board of Directors recommended that the AGM set the record date for dividend for 11 July 2020.

The AGM materials will be available on the Company’s website (ir.detmir.ru), as well as on Interfax’s website (e-disclosure.ru) and by request at the Company’s corporate secretariat: 3 3rd Nizhnelikhoborsky proyezd, Bld. 6, 127238, Moscow after 9 June 2020.

Shareholders may register to participate in the AGM, fill out the electronic ballot form and vote via the electronic voting service online (www.aoreestr.ru/shareholders/e-voting).

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

“Despite the remaining uncertainty around lockdown length, we have decided to recommend that in Q2 2020 the Company’s Board of Directors and shareholders distribute slightly over one half of RAS net profit for Q4 2019 as a dividend.

Maintaining financial stability is a top priority for the Company during the current crisis. Thanks to our strong liquidity, we have sufficient financial ability to pay the full dividend; however, amid this period of high turbulence, we have a responsibility to the future of our business and have therefore suggested a different decision to the Board of Directors. The Company is still at the very beginning of the road back to normality, but we are convinced that we can recommend that the Board of Directors pay the remaining undistributed earnings for Q4 2019 before year-end.”

Vladimir Chirakhov, PJSC Detsky Mir Chairman of the Board of Directors, said:

“Detsky Mir’s investment case is driven by the combination of strong business growth and high dividends; therefore, the Board of Directors has supported management’s recommendation to pay the final dividend for 2019 despite a challenging situation in the country. At the same time, we recognize the need to take a more conservative approach and postpone the second part of 2019 final dividend payment until the second half of 2020.”

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 Pickup retail chains, the ELC (Early Learning Centre) branded retail stores in Russia and the ABC retail chain, as well as the Zoozavr pet supplies retail chain. The Company operates a retail chain of 772 Detsky Mir stores located in 297 cities in Russia, Kazakhstan and Belarus, 5 Detmir Pickup stores, as well as 46 ELC, 12 ABC and 11 Zoozavr stores as of 31 March 2020. Total selling space is approximately 847,000 sq. m.

Detsky Mir Group’s shareholder structure as of the date of this announcement is as follows: PJSFC Sistema[2] – 33.38%, the Russia-China Investment Fund (RCIF)[3] 9.0% and free-float 57.62%.

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

Disclaimer

Some of the information in this document 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, a competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries where Detsky Mir is active, the impact of the COVID-19 pandemic on the macroeconomic situation in the markets in which Detsky Mir operates and the financial results of Detsky Mir and its subsidiaries, as well as other risks specific to Detsky Mir and its operations.

([1]) Calculated based on the recommended dividend payments and net profit for Q4 2019. In December 2019, Detsky Mir paid an interim dividend for 9M 2019 to a total of RUB 3.7 billion, or RUB 5.06 per ordinary share. The Company applied IFRS 16 “Leases”.

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

([3]) 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 two subsidiaries: Floette Holdings Limited and Exarzo Holdings Limited.