Detsky Mir Grows Online Back-to-School Sales 3.5-fold in August 2020

Moscow, Russia, 1 September 2020 – Detsky Mir Group (the “Group”, “Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, is disclosing its sales performance for August 2020.

In August, the Company continued to demonstrate strong growth in total sales, with Group unaudited revenue up by 15.1% year-on-year. The Detsky Mir chain increased its LFL sales growth to 7.5% year-on-year vs. 2.5% in 1H 2020. Back-to-school has become a key total sales driver, with total sales in this category up 23.6% year-on-year.

At the same time, Detsky Mir maintained explosive growth in online sales in August: sales via the Detsky Mir online store and mobile app increased 2.6 times year-on-year. The strong online performance was led by back-to-school (+247%): Drawing Supplies (+512%), Writing Supplies (+452%), School Accessories (+300%) and School Apparel and Footwear (+226%). Toys have also demonstrated strong growth, with online sales in this category up by almost 2.6 times year-on-year.

Over 90% of online revenue came from in-store pickup of online orders at Detsky Mir retail stores. The Company continues to offer a high level of service when processing orders in-store: 95% of online orders picked in-store are handed to the customer at checkout within 60 minutes of the online purchase.

As of 1 September 2020, all Detsky Mir stores have continued normal operation.

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

“Every year, Detsky Mir provides a seamless and stress-free back-to-school shopping experience for parents. In August, we sold a record amount of school uniform products – over 5 million items. As a result, our total sales have accelerated to 15.1% year-on-year in August.

The detmir.ru online store and Detsky Mir retail stores offer everything school students need: apparel, footwear, school kits, backpacks, stationery and even furniture products. Customers have the choice of both private labels and major brands. Our private labels fully meet Russia’s stringent quality standards and enjoy increased popularity with customers. This year, our Chessford private brand was named the Best School Uniform at the children’s goods industry’s Golden Bear Cub National Awards. The share of private labels and direct imports in total back-to-school sales grew by 11 p.p. year-on-year to 85.2% in August 2020.”

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 302 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%; Russian-Chinese Investment Fund (RCIF)[2]– 4.62%, Free float – 75%- 1 share.

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, impact of COVID-19 pandemic on macroeconomic situation on the markets of presence and financial results of Detsky Mir and its subsidiaries, 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 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.