#1Detsky Mir Investor Presentation Leading children's goods retailer in Russia and Kazakhstan July 2021 detsky mir#2Disclaimer THIS DOCUMENT IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES detsky mir Certain information in this document is forward-looking, and reflect Detsky Mir's current expectations and projections about future events, which reflect various assumptions made by Detsky Mir. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such information. By their nature, forward-looking statements involve known and unknown risk and uncertainty because they relate to future events and circumstances. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. 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This document is not an offer or an invitation to make offers or advertisement of securities in the Russian Federation. 2#31 Detsky Mir at a glance detsky mir#4Russia's Children goods retail market leader with strong growth and attractive shareholder returns Key facts Strong operational and financial results(3) P e Undisputed #1 player 22% share of total children's goods market in Russia in 2020 Iconic brand with 98% prompted awareness (1) 929 branded stores in 378 cities in Russia, Kazakhstan and Belarus, of which 856 Detsky Mir, 24 Zoozavr stores and 49 Detmir Pickup (2) Prime locations in modern shopping malls with average store selling space of ~1,100 sqm Top-4 online retailer in Russia by number of orders +2.4x online sales growth in 2020 Publicly listed on the Moscow Stock Exchange since February 2017 with current free-float of 70% Total number of stores detsky mir Generating attractive returns for investors Detsky Mir share price performance since IPO Consistently paying out 100% of Net Income (RAS) in dividends CAGR +19% CAGR +9% +61 868 850 929 New store RUB/sh openings in 1H 2021 216 160 +10.6% FY'12 FY'20 1H'20 1H'21 150 LFL in 1H 2021 Total GMV) (RUB bn) (Detsky Mir's Group) 140 CAGR +23% online CAGR +2.4x +24% (+32% Q2 21) online +42% 29% 130 Share of online 157,6 sales in Russia 120 65,9 81,5 1H 2021 30,4 110 86% 100 FY'12 FY'20 1H'20 1H'21 Cash conversion (4) FY 2020 90 Adjusted EBITDA (6) margin 100% 80 +5.9p.p. +1.4p.p. Dividend payout ratio(7) TSR 120% 11,9% 6,0% 8,7% 70 7,3% 1.1x RUB 40.9/sh RUB 85.0/sh Net debt/ 60 RUB 151.2/sh FY'12 FY'20 Q1'20 Q1'21 RUB 107.1/sh adj. EBITDA 2020 50 Revenue breakdown, 2020 Current share price Toys 31% Fashion 29% Newborns 30% Other (8) 10% Cumulative declared dividends IPO share price Total return 2017 2018 2019 2020 2021 Source: Company data, Ipsos Comcon, MOEX as of 30 June 2021 (1) "Children Goods Market in Russia" report by Ipsos Comcon ("Ipsos Comcon report"). Consumer survey conducted in December 2020 (2) As of 30 June 2021 (3) Under IAS 17 (4) Calculated as (Adj. EBITDA - Capex)/Adj. EBITDA (5) GMV includes purchases at the Group's retail stores and goods and services sold through the website and mobile application, which may be own or third-party goods and services (incl. value added tax, net of discounts given to customers and net of returns and cancelled orders) (6) Adjusted for the one-off effect relating to additional bonus accruals and Income received from partial termination of employees' right to receive shares under the LTI program (as percentage of Revenue) (7) Based on net profit under Russian Accounting Standards (8) Including large items, stationery, sports and seasonal goods 151.2#5Tackling online competition via a better offering Price Leadership 123456 Broad & Exclusive Assortment Faster & Wider Delivery detsky mir Superior Customer Experience 4-7% below Ozon/WB Enabled by buying power in children's goods purchase volumes (market share gap): - Threefold overall Over tenfold in 1P (Market share in total children's goods retail in Russia, %) 2020 WILDBERRIES OZON Total sales: 1P+3P 2% 1P Sales 4% 2% 9% 22% 22% Large and growing share of exclusive assortment (Private labels & exclusive direct imports, % of sales) 2024E 2020 44% 60% 60 minute click-and- collect covers 80% of Russia's population for 20-30k SKUs R²) - (2) Ozon: not offered - WB: not offered 60-120 minute express courier delivery covers 280 cities for 20-30k SKUS (2) - Ozon: only Moscow (c. 3K SKUs) - WB: not offered (3) Higher customer NPSⓇ NOZO 2024E ●• detsky mir Q2 2021 WILDBERRIES 55% 54% 56% 70% (1) Based on Pricing Index calculated by Detsky Mir for a comparable basic children's goods purchase basket on each platform as of 30 June, 2021 (2) Assortment for a typical Detsky Mir branded store, which takes >50% of total market sales (3) NPS as of Q2 2021 measured by Online Market Intelligence agency (external panel) Source: Company data 5#62 Strategic priorities detsky mir#7Our Strategy 2020 - key building blocks Solidify leadership in the children's goods retail detsky mir Accelerated investment in logistics Continuous expansion of omni-channel proposition driving both offline and online sales Enter digital services and products market -C= & detsky mir New verticals KB Implementing best-in-class UX and CX across the channels Developing family marketplace Aggressive roll-out of Zoozavr store network and online platform#8Progressing on Strategy 2020 execution 2024 Targets (1) Performance update detsky mir дет ми HDIO Omni-channel retail platform Opening 230+ Detsky Mir stores (2021-2023) and 800+ Detmir pick-up points (2021-2024) Targeting 45% share of online sales Accelerated investment in logistics c.80% of online orders to be delivered next-day Launch of 2 Federal DCs and 3 Regional DCs Enhancing UX/CX Store digitalisation with 70% NPS across channels Mobile-first concept with best-in-class app (# of Detsky Mir stores and Detmir pick-up points) Q4'20 1H'21 Q4'21 (% of next-day) 2020 2021 848 31% 905 1,018 50%+ Partner pick-up points amounted to 21k (+3.5x year-to-date) (% share of online sales) 2020 1H'21 Q4'21 25% 29% 35% (1) As was presented at the Capital Market Day (August 2020). Source: Company data. Detsky Mir 3.0 digital concept approved, opening of the debut store in Q2'21 Modernisation of existing stores in mid- Launched a second Regional DC in Kazan (April 2021) Launching a third federal DC in the Ural region and two Regional DCs in the Northern and Siberian regions in Q1'22 term Enhanced UX in 1H'21 Subscription delivery service for recurring orders Courier delivery service (next-day) in Kazakhstan iOS and Android Apps in Kazakhstan#9Progressing on Strategy 2020 execution (cont'd) Performance update 2024 Targets (1) detsky mir Marketplace to drive assortment breadth 0000 Маркет Leadership in assortment breadth Плейс (2,400k SKUs) GMV to reach a double-digit share of our online sales Zoozavr - specialised pet supplies retailer 500 Zoozavr stores in mid-term, share of online 30%+ Digital services for children Content Educatio n Service Enter digital 30% private label share in mid-term Health Digital Service services and products market Subscription S (# of SKUs) (Zoozavr stores in operation) Q4'20 Q2'21 Q4'21 Q4'20 Q2'21 Q4'21 20 partners were selected to participate in a pilot stage of digital products marketplace 250 422 c.1,000 20 24 90 70 mobile apps and 30 services tested on Android platform in Moscow region Safety Games Education Babysitting 5% share of GMV in online in Q2'21 Launched a full-feature IT platform for merchants' accounts 50% share of online sales in Q2'21 7 private label brands across categories comprising 600 SKUs to be launched in Q1'22 (1) As was presented at the Capital Market Day (August 2020). Source: Company data. еще 45 9#103 Our investment story detsky mir#11Detsky Mir - leading specialized children's goods retailer in Russia detsky mir P Undisputed market leader in children's goods retail market in Russia with significant growth potential in online Category-defining brand with highly popular customer proposition 1 2 Unique omni-channel model with multiple initiatives for further enhancement 3 detsky mir Emerging new strong layers of growth beyond core business model 4 $ Asset-light cash-generative business model providing for strong returns on capital and consistent dividend payments 5 Strong management team with well-established market-oriented governance practices 6 11#12Solid addressable market for Detsky Mir Healthy outlook on key market... Russian children's goods market in all Russian cities (1) (RUB bn) detsky mir ...with further growth potential in other categories Market size in all Russian cities (1) (RUB bn) +1% 705,6 696,8 701,1 705,8 712,8 719,9 22% Target market CAGR 20-24 Detsky Mir market for expansion 122,4 117,9 119,3 121,1 Toys 91,7 92,6 93,0 94,0 Stationery 214,1 208,3 204,8 198,9 Newborns Apparel 212,6 213,0 218,4 224,9 Shoes 64,8 65,0 65,6 66,9 2019 2020 2021 2022 2023 2024 share in Russian children's goods 17% Detsky Mir market share children's goods and pet supplies combined Children's goods market in Russia Pet supplies market in Russia 30% (1) Market volume is counted in retail prices including VAT (10%, except for pets products, charged with 20% VAT) in all Russian cities population). Detsky Mir share estimation is based on total Detsky Mir sales. Source: Company data, Ipsos Comcon report, Euromonitor. RUB 992bn 2020 70% 12#131 Market environment evolution Online is one of the most fast- growing channels... ...while Detsky Mir maintains dominant market position... detsky mir ...building on its market leadership in all segments Detsky Mir market share by segment (²) (%) Russian children's goods market breakdown by channels (%) Market share in total children's goods retail in Russia (2) (%) 22% 13,6% 10,4% 9,4% 7,0% 5,8% detsky mir 10,1% 12,6% 15,6% 8,9% 22,0% WILDBERRIES Toys 19% 9% 7% 6% Stationery 6% 4% OZON 25% 2% 38,6% 39,8% Newborns 39,1% 38,8% 22% 36,4% Дочки- Сыночки 3% 15% Apparel 13% mothercare 3% 15% Shoes 39,1% 39,7% Rich Family 38,9% 38,6% сеть тепермаркетов детских товоров 35,8% 2% 13% 22% 2016 2017 General food retailers 2018 E-commerce" 2019 ■Specialised stores Other 2020 КОРАБЛИК Дарим улыбку детям 2% 2020 2019 | All market 19% 2020 2019 (1) Represents children's goods ordered online (excluding online stores of offline retailers from other sales channels). (2) Market share is based on sales (including VAT of c. 10%) and market volume estimation in Russian total urban population. Market share for Detsky Mir is based on the consolidated IFRS data (excl. Kazakhstan, Belarus and Zoozavr stores). Source: Company data, Ipsos Comcon report, SPARK, Data Insight. 44% 40% 13#142 Category-defining brand with highly popular customer proposition Leading customer proposition Brand positioning Iconic Russian household name with 70-year history 98% prompted awareness (1) 82% unprompted awareness (1) Product offering and convenience One-stop-shop across key children's categories Product offering of ~20,000 SKUs for a typical store and ~321,000 SKUs for online Fast fashion (8 seasons) Full omni-channel model with convenient delivery options Convenient locations in high foot traffic areas Attractive pricing and promotions Price segment from medium to medium-low We aim to offer highly competitive pricing in baby food and hygiene products Periodic sales and promotions detsky mir Loyalty program c.28.0m loyalty cards c.11.1m active loyalty cards (2) (34% online customers) c.16.1m contact base of users as of June 2021 Average ticket for loyalty card holders is significantly higher vs. customers without cards Bigger, better and more recognizable than the competition Number of stores (Q2 2021)(3) Well-balanced product mix across traffic generators and high-margin products Gross 847 Product segment margin Traffic generation Revenue breakdown (4) (2020 and 2019) Net store openings 173 120 116 44 Newborns 30% 31% +53 (14) (24) detsky mir Дочки- Сыночки Brand recognition (Aided and Spontaneous awareness, December 2020) кораблик Дарим улыбку детям (5) mothercare (1) EYBADFM Toys ✓ ✓ 31% 32% 98% 82% 91% Fashion ✓ ✓ ✓ 55% 43% 29% 27% 30% 22% 22% 3% 4% Large items and other ✓ ✓ ✓✓ 10% 10% detsky mir Дочки- Сыночки кораблик mothercare Дарим улыбку датям Source: Detsky Mir for Company and peers data; Ipsos Comcon for brand recognition metrics (1) Based on consumer survey conducted in December 2020 (3) Excluding Kazakhstan and Belarus stores, as well as Zoozavr stores (2) Cardholders who made at least one purchase at Detsky Mir during the last 12 months to 31 December 2020 are considered active (4) Retail revenue only 14#153 Embedded formats strategy with solid expansion pipeline Pickup points are a unifying feature of all formats Format with game zones Total/Selling sqm 2,000/1,700 825/700 625/500 250/205 195/160 175/145 125/100 Modernised diversified formats with unified standards Clear medium-term white space Source: Company data detsky mir Cluster Flagship Hypermarket Supermarket Small Ultra small 1 Cluster 2 Cluster 3 Cluster 4 Detsky Mir Classic Detmir PUP Detsky Mir Classic: 230+ new stores (2021-2023) 50 Cities with DM presence (>100k pop.) 60 Replacing competitors (specialized stores) 10 New stores in Russia's Far East 60 Cities with no DM presence (40-100k pop.) Belarus Kazakhstan 30 20 New stores in Belarus New stores in Kazakhstan 230+ Russia Detmir PUPS: 800+ new stores (2021-2024) 315 New cities and towns (20-40k pop.) 485 Stores in cities with DM presence (>50k pop.) 15#163 Digital transformation of retail chain detsky mir Hblo дет Мир New store format: compact Detmir Pick-Up-Points (PUPS) Pick-ups with an unlimited shelf from DCs plus ~2,000 SKUs in-store ✓ Capture smaller cities with 5k-100k population, expanding our market size by 30+% to c.RUB 700bn ✓ 800+ stores medium-term, 1,200+ more stores longer term ✓ High-single-digit EBITDA margin 30%+ IRR on 7-year cash flows (w/o terminal value) Relies on regional DCs coverage within 500m, Store capex RUB 3-4m detmin Source: Company data Скачай детский мир в телефон дет Скачай ATCETCH питание игрушки Забери заказ c detmir.ru здесь detmir.ru Detsky Mir 3.0 Full digital transformation and modernisation of all existing stores in the mid-term (<RUB 1m capex per store) to make them fully online and pick- up capable New store openings under Detsky Mir 3.0 concept since 2021 with store capex unchanged Store format: 900-1,000sqm total area; simplified store design allowing for more space for products and customer zones Omni-channel design concept providing unified customer communication in stores and online ✓ Clear and accessible navigation Digital look & feel for shoppers implemented at new stores Automated solutions: electronic price tags, employee apps, self-checkouts info orders & info 绝 detmir.ru интернет заказы дет 9 МИР детский мир 16#173 Investing in mobile app as key driver to deliver strategic objectives Targeting 70% NPS across the channels in mid-term 70% 60% 53% 49% "Mobile first" concept - Detsky Mir mobile app 9.8 million Q4 2018 downloads (2) Online orders, % detsky mir Q2 2021 2021 2022 2023 2020 Share of online sales(1) #1 Website in the world in Childcare category +2.4x Online sales FY 2020 >90% Organic traffic 82% Click and Collect #40 11 #10 App ranking in Shopping category(3) #36 11 #10 App ranking in Shopping category(3) Developing Tier 1 app ✓ Catalogue Filters and sorting Shopping cart and checkout 36% 64% 82% 18% Desktop Web-site (mobile) Mobile app 45% Favourites 25% 29% Online payment Tier 3 Tier 2 Tier 1 12% 5% Personal account with order history 2017 2019 2020 1H 2021 Mid-term target Search Source: Company data, AppAnnie, SimilarWeb (1) As % of total revenue in Russia (2) Cumulative number of downloads since launch as of Q2 2021 (3) As of 31 December 2020 vs. 24 November 2019 based on AppAnnie data Chat support Recurring orders subscription Personalised product recommendations detsky mir Mid-term Provided now Pending shortly 17#183 Detsky Mir marketplace Why DM Marketplace? Provide our shoppers with broadest possible assortment they have come to expect Provide our suppliers a great platform to reach customers and manage inventory Lower costs than competitors by building on top of existing infrastructure Limited capex and no extra working capital DM Marketplace profile Assortment % % Long-term vision detsky mir ☐ Overtake key local competition in relevant SKUs (2,400k SKUs) ☐ GMV representing double-digit share of our online sales 19-22% fixed/actual commission rate Cost structure - Mainly logistics, delivery, personnel Low marketing cost vs other MPs thanks to "free" traffic / strong brand Initially focus on children's FMCG and fashion Pricing PP Mid-to mid-high price segments Economics 3PL commission-based model Customers Shoppers: same target base, same loyalty program Merchants: local producers and well- known international brands Service platform DM provides interface and logistics/ delivery on same platform as its 1P e-Commerce New verticals To be launched based on success of core categories 1H 2021 highlights 1,200 Number of suppliers added 1.0 GMV (RUB bn) 4.4% Share of marketplace in total online sales (%) 1,400 Brands shipped Key initiatives in 2021 Achieve 5% share of GMV in e-commerce Transition to a structural commission (similar to Ozon and Wildberries) Deeper monetisation of merchants Automation of logistics processes Improvement of reverse logistics management Source: Company data 18#193 3 complementary channels to optimise speed and coverage of courier delivery Omni-channel delivery platform Main DC Pickup Pickup Return Courier delivery Regional DC Source: Company data (1) Bekasovo 1 and 2 Retail store ) In-store pickup Express delivery Main DC Regional DCs Assortment 2.4m SKUs Number of locations 2 Main DC(1) + 2 DCs in the pipeline I detsky mir "Last mile" through retail chain 200K SKUs 20k-30k SKUS | 2 Regional DC +2 DCs in the pipeline 500 stores Coverage 95% of Russia population 500km from Regional DCs, 84% of Russia population 5km within stores 30% of Russia population Speed 1-20 days Next-day Next day delivery Same-day ~3 hours 1999#203 Roll-out of regional DCs to boost availability of next-day delivery Next-day coverage within 500km area from DCs Growing availability of next-day delivery Share of next-day delivery in total revenue, (%) detsky mir Saint-Petersburg Moscow Ekaterinburg Kazan Rostov Novosibirsk Federal DCs coverage Regional DCs coverage 52% 31% 2020 2021 81% 71% 2022 2023 Distribution centers overview Federal and Regional DCs Coverage as % of Russia population, (%) Distribution center Launch SKUs, m Population, m 84% 84% Moscow (Bekasovo 1 and 2) Opened 2.4 48.3 68% Rostov Opened 0.2 15.9 37% 37% 21% Kazan Opened 0.2 14.9 33% Ekaterinburg Q1 2022 2.4 20.5 47% 47% 47% Saint-Petersburg Q1 2022 0.2 9.5 33% Novosibirsk Q1 2022 0.2 14.4 2020 2021 2022 2023 Federal DC #4 2023 2.4 TBU Federal DCs (2.4m SKUs) Regional DCs (0.2m SKUs) Total 123.5 Source: Company data 20 20#21detsky mir 4 Zoozavr - entering promising pets supplies market Store Format ■ 200sqm total/170sqm selling area ■ At shopping center or street retail, close to a chain food retailer ■ Comprehensive assortment: ~6.5k SKUs in store >10.0K SKUs online - Upcoming private labels range ■ Store capex of RUB 3-4m ■ Cross-integration with DM: stores, ordering, pickups, logistics Effective online coverage of entire Russia via DM's footprint 3003ABP сеть зоомагазинов Why Zoozavr? ■ Russian pet supplies market is large at RUB 296bn (2020) ■ Solid market growth outlook 8.3% 2020-24E CAGR, outpacing children's goods Rising pet ownership rate, while children's birth rates are sluggish Same low elasticity to macro as children's goods ■ High fragmentation with weak competition Top 5 specialist players account for only 8% market share No highly recognized brand or large, well-funded and efficient player ■ Large overlap with children's goods target customers and suppliers 10-22" КИБЕР ЕДНИ SOMEE 1000 ΤΟ ΒΑΡΟΣ СО СКИДКОЙ 0.50% Source: Company data КИБЕР SMA 1932 ДНИ D 50% TIBHA 2002 Performance highlights in 2020 ✓ RUB 350m sales Share of online sales reached 56% in total sales Loyalty program members generated ~75% of total sales Immediate steps ✓ 70+ new stores in 2021 ✓ Launch of 7 private labels with 600 SKUs in 1Q'22 ✓ Develop veterinary supplies category to differentiate vs. online competition 2 21#224 "Beyond retail" – digital services as the next growth layer - detsky mir 2:12 Services 2:12 Apps 2020 2020 Babysitting Online education Online pediatrician Pregnancy Feeding and care Cleaning Hairdressing Dog walking kids Entering digital services and products market in mid- term Pilot results ■In December 2020, the pilot stage of digital products marketplace was launched in our mobile app ■ 20 partners were selected and 70 apps for children and parents added (including parental control and GPS locators, educational apps for toddlers, entertainment and games, etc.) ■ 30 new services such as babysitting and dog walking, cleaning, online medicine, husband for an hour services added in March 2021 ■In April 2021, we successfully finished a pilot stage, starting to develop a full- fledged platform Key benefits abc Repair Tutors Events Source: Company data Education Cartoons Safety еще Games 45 For Customers For Detsky Mir High confidence in brand Savings from accumulation and using points across multiple products Unique customer experience at all touchpoints The right content at the right time Business diversification Retention and growth of the target audience Building long-term relationships with clients More data on household members Increased purchase frequency 22#235 Focus on execution excellence to achieve superior operating margins detsky mir Improvement of 160bps in adjusted EBITDA (1) margin since 2014 driven by: Reduction of average personnel per store from 24 in 2014 to 16 in Q1 2021 enabled by greater business processes automation and adoption of advanced software, resulting in reduced time and effort required per transaction Decline in rental costs as % of sales driven by improving sales density and negotiation of favourable rental terms and received discounts from landlords, supported by our status of "anchor" traffic generator for shopping malls Reduction in adjusted SG&A as % of revenue by over 930 bps over 2014-2020 (-100bps YoY in Q1 2021) Adjusted SG&A expenses (2) as % of sales and personnel per store (3) Adjusted EBITDA(1) 24 22 11,9% 11,4% 11,4% 11,0% 20 10.2% 10,3% 18 9,8% 17 17 16 16 16 8,7% 28.2% 3,8% 25.9% 3,0% 1,7% 23.7% 1,8% 3,2% 22.8% 21.8% 22.0% 20.8% 21.0% 3,3% 1,3% 3,2% 18.9% 3,5% 1,6% 3,2% 3,5% 9,9% 1,3% 9,5% 1,1% 3,2% 0,8% 0,6% 0,8% 8,9% 8,1% 8,0% 8,0% 8,6% 8,4% 7,4% 16 964 +25% CAGR 14-20 14 725 7,3% 12 665 10 663 8 203 6,185 4,463 12,8% 11,7% 3 103 2 260 10,3% 9,8% 9,2% 8,6% 9,1% 7,5% 8,5% 2014 2015 2016 2017 2018 2019 2020 Q1'20 Q1'21 Rent & utility Payroll Advertising & marketing Other Personnel per store Source: Company data (4) 2014 2015 2016 2017 2018 2019 Adj EBITDA (RUB m) 2020 Adj EBITDA margin Q1'20 Q1'21 Note: The Group's consolidated financial statements for 2013 under US GAAP and for 2014-2020 under IFRS and as restated according to IAS 17 for 2018-21. For the line items and the periods presented, there was no difference between the figures under US GAAP and IFRS (1)Adjusted EBITDA is calculated as profit for the year before income tax, FX gain/loss, gain on acquisition of controlling interest in associate, net finance expense, D&A, adjusted for the one-off effect relating to disposal of the Yakimanka building in 2014, as well as share-based compensation and cash bonuses under the LTI program; (2)Adjusted SG&A expenses are calculated excluding depreciation and amortisation and additional bonus payments under the LTI program; (3)Excluding personnel in headquarters; (4) Less one-off RUB 1,164m net gain from disposal of Yakimanka store 23#245 Asset-light cash-generative business model providing for strong returns on capital and consistent dividend payments Attractive new store economics and disciplined roll-out... ☐ Capex of c. RUB 13m per 1 standard DM store Strict investment criteria: IRR hurdle rate of 40% on 7-year cash flows (not accounting for terminal value) Total maturity period - 18-24 months Targeted EBITDA breakeven in 6 months after a store opening Payback period of 2.5-3.0 years Resulting in strong returns ... detsky mir supported by well-controlled rental costs Prime locations in high-traffic modern shopping malls Most rental agreements with right to lease for more than 5 years and fixed annual increases Unilateral termination rights for Detsky Mir (with reasonable notice periods) Limited currency risk for leased properties (denominated in respective local currencies in Russia, Kazakhstan and Belarus, or with fixed caps for USD and EUR exchange rates) ... and a leading ROIC(4) in global retail context FY 2019, median values for respective peer groups % 2014 2015 2016 2017 2018 2019 2020 Revenue growth 26% 33% 31% 22% 14% 16% 11% Selling space growth 22% 26% 21% 15% 12% 10% 6% Adj. EBITDA, RUB bn 4.5(2) 6.2 8.2 10.7 12.7 14.7 17.0 Capex, RUB bn (1.9) (5.3) (1.7) (2.5) (3.8) (3.5) (2.4) Dividends, RUB bn (1.9) (3.0) (4.4) (4.8) (6.1) (7.0) (7.8) Adj. net debt (3) / Adj. EBITDA LTM(1) 0.6x 1.7x 1.4x 1.0x 1.4x 1.2x 1.1x ROIC(4), (5) 71% 62% 71% 78% 70% 63% 76% 63% detsky mir 29% 21% 12% Children's goods retailers (6) High performance Russian food retailers specialty retailers (7) (8) Source: Companies' disclosure and reporting Note: The Group's consolidated financial statements for 2013 under US GAAP and 2014-2020 under IFRS (before IFRS16). For the line items and the years presented, there was no difference between the calculation of numbers or presentation under US GAAP and IFRS (1) Adj. EBITDA is calculated as profit for the year before income tax, FX gain/loss, gain on acquisition of controlling interest in associate, impairment of goodwill, net finance expense, D&A, adjusted for the one-off effect relating to disposal of the Yakimanka building in 2014, as well as share-based compensation and cash bonuses under the LTI program (2) Less RUB 1,164m net gain from disposal of Yakimanka store (3) Adj. Net Debt is calculated as total borrowings (long term borrowings and short-term borrowings and current portion of long-term borrowings) less cash and cash equivalents adjusted for amounts receivable under the loan issued to CJSC "DM-Finance" (RUB 5.2bn in 2014, RUB 5.8bn in 2015 and RUB 1.1bn in 2016) (4) Calculated as operating profit divided by average capital invested (simple average of capital invested as at the respective dates). Capital invested is calculated as net debt plus total equity/(equity deficit) (5) Adjusted for amounts receivable under the loan issued to CJSC "DM-Finance" in 2014, 2015 and 2016; as well as for net book value of the building occupied by the Bekasovo distribution center of RUB 3.1bn (for 2015 only, given it was completed in 2015, but was not operational for the most of 2015) (6) Five Below, Children's Place, Carters, Jumbo and Baby Bunting; (7) Clicks, Lojas Renner, LPP, CCC, Raia Drogasil, B&M, Liverpool and XXL; (8) X5, Magnit and Lenta 24#259 Strong management team with well-established public market-oriented governance practices Highly experienced management 14 8 14 14 14 1 20 detsky mir Strong governance framework BoD of 10 members with 50% INEDS (incl. Independent Chairwoman) Maria Davydova Chief Executive Officer Held senior positions at Enter Svyaznoy, Arbat Prestige Anna Garmanova Chief Financial Officer Held senior positions at Podruzhka, Understanding and Reconciliation Fund Andrey Osokin Chief Marketing Officer Held senior positions at Goods.ru, Otto Group 6 Konstantin Frischberg Commercial Director-FMCG Held senior positions at Enter, Wikimart, Samsung Electronics Audit, Strategy and ESG, and Nomination and Remuneration committees 20 9 Maria Volodina Commercial Director - Apparel and Footwear Held senior positions at Sela, Reebok Rus, Kira Plastinina, TJ Collection Years of sector experience 16 1 Nikolay Ermakov Chief Technical Officer Held senior positions at X5 Retail Group, Gett and Rambler & Co Years with Detsky Mir Management incentive programs IPO LTI program completed in Feb 2020 24 5 Pavel Pischikov E-Commerce Director Held senior positions at Dochki-Sinochki ("Daughters and Sonnies") and X5 Retail Group • New LTI program adopted by the Board for the period of 2020-2023 17 2 Denis Gurov Logistics Director Previously Logistics Director at Dixy Group and Pharmacy Chain 36,6 New programme based on the same principles - c. 40 key employees; payout up to 4.6% of total shareholder return (growth in market capitalization + dividends) over the life of the programme Source: Company data (1) Gulf Investments Limited (2) Excluding quasi-treasury shares and shares held by management and directors (0.3% of total shares) Audit, as well as Nomination and Remuneration committees 100% INEDS Prominent shareholder base Altus Capital(1) - 29.9% Free float (2) - 70.1% 25#264 ESG detsky mir#27Focus on ESG evolution 4 Pillars of Sustainability Strategy Our Employees Equal opportunity for all ■Workplace safety Training & development Key Achievements in 2020 Sustainable Development Workgroup headed by CFO Enhanced prerogatives of BoD Strategy & Sustainable Development Our World Our Community Our Business Our Workplace ESG Analysis and Road Map detsky mir Greenhouse emissions report (1,2&3 scope ratios) Responsible Sourcing of Children's Merchandize Responsible manufacturing practices of suppliers Purchases of environmentally friendly & safe children's products Development of local manufacturing of baby goods Committee Extensive work with suppliers 100% comply with Prohibited & 100% signed to Supplier Code of Conduct Restricted Chemical List Zero Discharge of Hazardous Chemicals program: 69% of purchases in clothing and 37% in shoes Improved energy efficiency at DCs & stores, eco requirements for transportation & logistics services Eco programs at stores & offices: collection of clothing, shoes, appliances, batteries & paper for reuse / recycle Focus on Social Help and Charity Corporate charitable giving Social & charity programs ■ Volunteering " Ecology & Environmental Protection Greenhouse emissions reduction Reusable packaging Greater volumes of recycled / reused materials 2021 ESG Targets Develop & implement long-term Sustainable Development strategy and incorporate it to management incentives Improve ESG ratings (currently "B" from MSCI) Audit suppliers' compliance with sustainable development principles Develop of long-term partnerships and joint initiatives in environmental and responsible waste management areas Better Cotton Initiative: 2% share of cotton goods purchased Improve ratio of Zero Discharge of Hazardous Chemicals in clothing and shoes 27#285 Recent financial performance detsky mir#29Continued top-line growth Total GMV(1) growth accelerated... (RUB m) incl. VAT +14.5% 49 126 42 913 175 1276 47 165 41 462 Q4 '19 Q4'20 373 1588 ...thanks to explosive growth in online sales (2) (RUB m) incl. VAT +118.4% +15.6% 39 643 376 34 286 192 1088 1379 6549 37 888 33 006 Q1'20 Q1'21 14 305 2.3% +79.0% 6 112 detsky mir 10 939 3.7% Q4'19 Q4'20 Q1'20 Marketplace share in total online sales, % Q1'21 15.7% 30.1% 18.4% 28.6% Russia Kazakhstan Belarus Online share in total GMV (Russia), % (1) Hereinafter, GMV (gross merchandise value) includes purchases at the Group's retail stores and goods and services sold through the website and mobile application, which may be own or third-party goods and services. GMV includes value added tax, net of discounts given to customers and net of returns and cancelled orders during the reporting period. (2) Hereinafter, total online sales include all sales through the Company website and mobile app, including home delivery and in-store pickup. It includes value added tax, net of discounts given to customers and net of returns and cancelled orders during the reporting period. Source: Company data. 29#30Solid online performance with strong loyal customer base detsky mir Continuous growth in traffic and improving conversion rate (Web and mobile platforms) Click & collect and Mobile app are largest channels (Russia) 4.6% 5.6% 159,0 4.9% 5.2% 85,7% 78,9% 20 141,6 85,7% 85,8% 86,3% 74,0% 65,9% 84,4 8,9 77,8 3,9 3,9 7,4 47,5% 25,3% 54,2% Q4'19 Q4'20 Q1'20 Q1'21 Q1'20 Q2 '20 Q3 '20 Q4'20 Q1'21 Online Visitors (m) Online Orders (m) Click & collect (online sales), % Mobile platform (online orders), % Healthy mobile app metrics Installations (1) 2.1m Q1'20 +4.1x Strong loyal customer base (3) MAU(2) +3.4x 81% 8.7m 0.9m 3.0m Q1'21 Q1'20 Q1'21 86% 10.6 10.8 34% 18% Q1'20 Loyalty card holders in total sales, % Q1'21 Q1'20 Q1'21 Share of online active loyalty card holders, % Active loyalty card holders, m (1) Reflects the total number of app installations between its launch (December 2019) and the end of the reporting period. (2) MAU monthly active users - the average number of active mobile app users in a month. (3) Cardholders who made at least one purchase at Detsky Mir during the last 12 months are considered active. Online loyalty card holders who made at least one online purchase through the Company website or mobile application within the last 12 months are considered active cardholders. Source: Company data. 30#31detsky mir Retail chain started a trajectory of steady growth Robust like-for-like sales(1) (RUB m) Group's retail chains expansion (2) # of stores Total space (sqm 000s) Selling area (80%) 4.7% 5.7% 3.5% 7.5% 5.0% 5.9% 4.0% 7.9% +4.0% 3,2% 880 846 5 21 225 22 11 58 2,9% 7,9% 7,4% 4,3% 4,7% 3,9% 4,5% 4,4% 4,5% 1,4% 1,2% -0,4% -0,4% -2,5% -2,7% Q4'19 Q4'20 Q1'20 Q1'21 Q4 '19 Q4'20 Q1'20 Q1'21 Russia Number of tickets LFL Russia & Kazakhstan & Belarus Average ticket LFL 772 837 +6.5% 1123 1054 Q1'20 Q1'21 Q1'20 Q1'21 Detsky Mir ELC&ABC Zoozavr Detmir Pick-Up Points (PUPs) (1) LFL revenue growth in Russian rubles, LFL number of tickets growth and LFL average ticket growth are based on stores in operation for at least 12 full calendar months preceding the reporting date. A store is considered comparable and is included in the calculation of the monthly like- for-like if the difference between the number of days worked in comparable months does not exceed three working days. (2) In order to improve margins by accelerating the opening of our small-format Detmir Pickup stores, the Group decided to close its ELC and ABC stores in Q3 2020, which accounted for 0.8% of total Group revenue in 2019. Source: Company data. 31#32High revenue growth and solid gross margin driven by private-label expansion Group revenue is growing across all segments(1) (RUB m) Keep investing gross margin in price leadership +15.0% 35 672 +14.3% 44 488 4 -116 38 915 336 438 1 410 53 158 1166 31 020 203 68 170 974 37 101 42 623 34 001 29 605 113 326 1 232 34,1% detsky mir 31,1% 29,3% 29,6% +4.5% 13 845 13 255 +16.1% 10 550 9 085 Q4'19 Q4'20 Q1'20 Q1'21 Gross profit (RUBm) -Gross profit margin (%) 39.7% 40.7% 39.1% 40.4% Q4 '19 Detsky Mir in Russia Zoozavr Source: Company data. Q4'20 Q1'20 Q1'21 Detsky Mir in Kazakhstan ELC &ABC Detmir in Belarus Private label & direct imports (Russia), % of revenue(2) (1) Hereinafter, revenue is net of value added tax and includes revenue from the sale of goods as well as fees charged by the Group to third-party sellers for selling their goods through the Group marketplace. Detsky Mir in Russia includes all sales of children's goods in Russia, as well as the sales results of the Detmir Pickup chain. Zoozavr includes all sales of pet products, including sales made via the Company website and mobile app. (2) Sales of private labels and direct imports in Russia include sales of all children's goods in Russia, including through the Company website and mobile application. 32#33Consistently strong profitability Optimising payroll and rental costs... Adjusted SG&A expenses (1) as % of revenue ... drive solid profitability 22.0% detsky mir 15,9% 15,2% +20.5% 5 664 8,7% 4 700 21.0% 3,5% 3,5% 0,8% 0,6% 14.1% 13.8% 8,6% 8,4% 3,5% 3,5% 7,3% 0,8% 0,6% +37.3% 3 103 2260 8,6% 8,4% 9,1% 8,5% 1,2% 1,3% Q1'20 (IAS 17) Q1'21 (IAS 17) Q1'20 (IFRS 16) Q1'21 (IFRS 16) Q1'20 (IAS 17) Q1'21 (IAS 17) (2) Rent & utility Payroll Advertising & marketing Other Adjusted EBITDA (RUBm)` Q1'20 (IFRS 16) Q1'21 (IFRS 16) -Adjusted EBITDA margin (%) (1) Hereinafter, adjusted selling, general and administrative expenses is calculated as selling, general and administrative expenses adjusted for depreciation and amortisation expenses, additional share-based compensation expense and cash bonuses under the LTI program. (2) Hereinafter, adjusted EBITDA is calculated as profit for the period before income tax expense, foreign exchange (loss)/gain, gain on acquisition of controlling interest in associate, finance expense, finance income, depreciation and amortization, adjusted for share-based compensation expense and cash bonuses under the LTI program. Source: Company data. 33#34Strong cash flow conversion detsky mir Comments Improvement in operating cash flow driven by high EBITDA growth and decrease in NWC investments ■ Low finance expense on the back of decrease in debt and interest rate Disciplined capex focused on store openings and selective investments in IT and infrastructure; limited maintenance capex requirements Cash flow evolution (RUB m) Q1'20 Q1'21 Q1'20 IAS 17 IAS 17 IFRS 16 Q1'21 IFRS 16 I Adjusted EBITDA 2,260 3,103 4,700 5,664 I Changes in NWC (7,680) (7,368) (7,616) (7,280) Cash income taxes paid (702) (928) (702) (928) Capex grew by 2.8x YoY due to an advance payment for the construction of the third federal distribution center, located in the Ural region (RUB 688 m) Net finance expense paid (179) (121) (821) (652) Other operating cash flow (79) 371 I (81) 357 Strong return on investment capital Operating cash flow (6,380) (4,944) (4,520) (2,839) I 76% CAPEX (338) (950) (338) (950) I I 63% 59% DC construction (28) (668) (28) (668) 49% I Store openings, IT & maintenance (310) (262) (310) (262) 85% 69% 76% 86% Free cash flow (6,718) (5,894) (4,858) (3,789) I Investment cash flow (326) (945) I (326) (945) Financial cash flow 15,754 5,273 13,894 3,168 Q1'20 (IAS 17) Q1'21 (IAS 17) (1) ROIC FY'19 (IAS 17) FY'20 (IAS 17) Change in cash 9,048 (616) 9,048 (616) -(Adj. EBITDA - Capex) / Adj. EBITDA Effect of changes in foreign exchange 19 (196) 19 (196) rates | (1) Calculated as operating profit for the past 12-months period, divided by average capital invested (simple average of the balance of capital invested at the end of respective periods). Capital invested is calculated as net debt plus total equity/(equity deficit). Source: Company data. 34#35Conservative financial policy Comments Leverage Q1'21 total debt - RUB 25.1 bn detsky mir 1.4x 33 998 36 831 24 259 24 042 24 259 24 042 ■ Commitment to a conservative financial policy - Fully RUB-denominated debt to match RUB revenue, mostly fixed rates Relationships with multiple Russian and international banks ■ Net debt / adj. EBITDA LTM ratio as of 31 March 2021 is 1.4 vs. 4.0x average covenant level across the loan portfolio (IAS 17) Decreased YoY thanks to CAPEX and NWC optimisation ▪ Weighted average interest rate(¹) – 6.6% (as of Q1'21) ■ No contingent off-balance sheet liabilities ■ Available undrawn credit limit of RUB 32.5 bn for refinancing of the current credit portfolio aiming at its further diversification Debt maturities as of 31 March 2021 1.6x Q1'20 (IAS 17) (RUB m) 5 777 2021 10 530 2022 Q1'21 (IAS 17) Net debt Lease liabilities Q1'20 (IFRS 16) Q1'21 (IFRS 16) Weighted average interest rate (1) Net debt/adj. EBITDA LTM (%) 9,3% 9,1% 8,9% 9,0% 8,8% 8,4% 8,5% 5780 8,0% 7,5% 7,4% 3 000 6,7% 6,6% 2023 2024 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 (1) Calculated on the basis of the weighted interest rates applying to the specified indebtedness (weighted by the principal amount of such indebtedness) as of the dates specified. Source: Company data 35#36Sustainably high returns to shareholders Comments ☐ Asset-light cash generative model underpins significant dividend paying capacity Dividends as major differentiator from most Russian high-growth retailers Able to consistently maintain sound leverage levels despite significant dividend payout ■ Dividend policy: payout ratio of at least 50% of consolidated IFRS net income for the previous year - - Historically, paying out up to 100% of net income under RAS Typically two dividend payments per year (9m interim and full year) ■ In 2020, Detsky Mir paid out final dividends of RUB 4.1 bn for Q4 2019, as well as interim dividends of RUB 3.7 bn for 9m 2020 ■ FX losses of RUB 2.1 bn affected adjusted net profit in FY'20 (69% non-cash) ■ Executive Board will recommend to pay out the full net profit for Q4'20 as a final dividend of RUB 4.5 bn (+10.8% YoY) in 2021 Dividends as % of adjusted net income (IAS 17) 87% 2017 (IPO) 84% 2018 Adjusted net income (1) (RUB m) detsky mir 1532 4,3% 0,05% 15 Q1'20 (IAS 17) Q1'21 (IAS 17) 1512 4,2% -0,3% -83 Q1'20 (IFRS 16) Q1'21 (IFRS 16) Adjusted net profit History of declared dividends -Adjusted net profit margin (%) (RUB m) 94% 87% 2019 2020 +11,3% +15,1% 7 819 +28,1% 7 028 6 108 4767 2017 (IPO) 2018 2019 2020 1% of current year adjusted net income (1) Hereinafter adjusted net profit is calculated as profit for the period adjusted for the share-based compensation expense and cash bonuses under the LTI program Source: Company data 36#37Short and mid-term guidance reiterated New store openings FY2020 Detsky Mir: 71 ☐ Detmir PUP: 12 Zoozavr: 10 Revenue Adjusted EBITDA margin ☐ Guidance Detsky Mir: 70 in 2021; 230 in medium-term ◉ Detmir PUP: 100 in 2021; 800 in medium-term Zoozavr: 70 in 2021; 500 in medium-term detsky mir 3.9% total LFL growth (RUS & KZ) 11.0% total revenue growth Share of online sales at 25% New strategic initiatives (Zoozavr, Detmir PUP, Marketplace) allow the Company to double total GMV in medium-term Online sales share increased to 45% in medium-term ■ 11.9% under IAS17 ■ 18.0% under IFRS16 30.8% gross margin ■ 10% area under IAS17 Double-digit under IFRS16 Continued gross margin investment in traffic Rent & utility expenses of 7.5% and personnel expenses of 7.4% of sales ☐ Grow share of higher-margin PL sales to ~60% ☐ Reduced personnel & rental expense margins thanks to efficiency Leverage ☐ 1.1x leverage Dividends Disciplined financial policy with target leverage below 2.0x despite accelerated investment in logistics and IT 94% of IFRS net income 100% of RAS net income Payout ratio of at least 50% of IFRS net income (IAS17) Management recommendation - 100% of RAS net income 37#386 Appendix detsky mir#39New Government measures to support birth rates and boost disposable income for families with children detsky mir Additional payments of c. RUB 600bn for families with children starting from June 2020 One-off payments related to COVID-19 Allowance per child Before changes After Changes (2021) 1st child RUB 483k 2nd child 3rd child RUB 467k RUB 156k - RUB 639k 1st child c.540k children 2nd child c.560k children 3rd child c.230k children - RUB 15k per child in Q2 2020 for children <3 years old RUB 10k per child for children 3-16 years old in June RUB 10k per child for children <16 years old in July RUB 5k per child for children <8 years old in December Supporting measures have been updated starting from 2021 - - Ongoing support for lower income families: 50%, 75% or 100% of the living wage payments per month depending on the family income for children 3-7 years old accruing from January 2021 Ongoing payment of RUB 7.1k per month for children <1.5 years old starting from February 2021 One-off payment of RUB 18.9k for the birth of a child starting from February 2021 Total program c. RUB 260bn c. RUB 450bn Cumulative incremental funds available +RUB 190bn Strictly defined use of proceeds, overwhelmingly linked to purchases of housing and compensation of mortgage payments Incremental funds available = c. 1/3 of the total children's good market size Russian Government expects substantial positive impact of the new measures on the actual birth rates - Supporting demographics remains of paramount importance for the Government Source: Rosstat demographic forecast 2020-2035, PFR, CIF of Russia In April 2021, the President instructed the Federal Assembly to prepare a comprehensive system of support measures for families with children by July 2021 Ongoing payments of RUB 6.4k per month for pregnant women with low income A lump sum payment in August 2021 in the amount of RUB 10k for families with schoolchildren and future first-graders Ongoing payments of RUB 5.7k per month for children growing up in single- parent families Sick leaves for child care (<7 years old) to be paid at 100% of the parent's income 39#40Gaining market share in baby food and diapers segments detsky mir Baby food sales by channel in Russia 39% 59% 54% 56% 13,4% 14,4% 15,5% +1.5x 17,2% 16,4% 19,2% 11,0% 8,8% 7,4% 4,4% 5,7% 3,2% Detsky Mir's market share growth 23,8% 24,1% 24,5% 23,7% 22,5% 22,3% over 4 years 17,5% 16,0% 15,3% 14,7% 15,5% 13,9% Supermarkets ■Hypermarkets 34,4% 36,7% 37,3% 40,0% 39,8% 41,4% Minimarkets Specialised stores Detsky Mir Online market share, % 2017 2018 2019 2020 5m 2020 5m 2021 Diapers sales by channel in Russia 51% 64% 61% 59% 22,1% 26,1% +1.8x 29,7% 34,7% 32,5% 39,2% 17,8% Detsky Mir's market share growth 17,7% 13,8% 7,9% 9,6% 5,8% over 4 years 22,9% 21,6% 22,6% 24,2% 23,9% 24,0% ■Supermarkets Hypermarkets 22,1% 20,1% 18,3% 16,5% 17,8% 14,1% Minimarkets ■Specialised stores 15,0% 14,5% 15,5% 16,6% 16,3% 16,9% Detsky Mir Online market share, % 2017 2018 2019 2020 5m 2020 5m 2021 Source: Nielsen 40#41Top management compensation structure overview Annual compensation structure CEO <<CEO-1>> Fixed 50% 50%-80% Total 50% 20%-50% Variable Incl. Financial¹ 25% 4%-15% Incl. Financial² 25% 16%-35% detsky mir <<CEO-2» 70%-85% 15%-30% 3%-9% 10.5%-24% Last LTI programme At IPO ☐ %-based payment linked to valuation increase at IPO ◉ ☐ ☐ Amount calculated as 3% from the differential between new liquidity event (i.e. IPO) price and RCIF price in 2015 50%/50% cash and share based payments (via purchases of shares in the open market) ■ After IPO Approved by the Board of Directors in August 2017 Covers the 3-year period to February 2020, the third anniversary of the Company's IPO, senior management in continuing employment by the Company as of that anniversary will be eligible for cash payments from a pool equivalent in value to up to 4.6% of the increase in the Company's stock market value (including dividend payments) over the period The LTIP also provides for additional cash payments expected to total around RUB 500m (plus any social taxes) New equity-based compensation programme The new 3-year LTIP Approved by the Board of Directors in October 2019 Covers the 3-year period from the end date of the previous program (Feb 8, 2020) to February 7, 2023 Senior management team in continuing employment by the Company and in program membership as of April 30, 2024 will be eligible for the Company's share grants and cash payments from a bonus fund valued at up to 4.6% of the increase in the Company's stock market value (incl. dividend payments) over the period. The new LTIP includes more than 40 key employees of the Company Incentive program to cement the management's long-term focus on shareholder value creation 1 Financial KPIs - EBITDA, net income, revenues 2 Functional KPIs - specific operational KPIs, individual for each role 41#42Consolidated statement of profit or loss highlights Russian Ruble (RUB), million Revenue IAS 17 Change YoY Q1 2020 Q1 2021 Q1 2020 31,020 35,672 +15.0% 31,020 detsky mir IFRS 16 Q1 2021 35,672 Gross profit 9,085 10,550 +16.1% 9,085 10,550 % of revenue 29.3% 29.6% +0.3 p.p. 29.3% 29.6% Selling general and administrative expenses (1) (6,826) (7,479) +9.6% (4,386) (4,928) % of revenue (22.0%) (21.0%) (1.0 p.p.) (14.1%) (13.8%) Other operating expenses 1 31 1 41 EBITDA 1,922 2,830 +47.2% 4,362 5,391 % of revenue Adjusted EBITDA (2) % of revenue 6.2% 7.9% +1.7 p.p. 14.1% 15.1% 2,260 3,103 +37.3% 4,700 5,664 7.3% 8.7% +1.4 p.p. 15.2% 15.9% Profit/(loss) for the period % of revenue (255) 1,313 (353) 1,294 (0.8%) 3,7% +4.5 p.p. (1.1%) 3.6% Adjusted profit/(loss) for the period (3) % of revenue 15 0.05% 1,532 (83) 1,512 4.3% +4.2 p.p. (0.3%) 4.2% Note: The Company has applied IFRS 16 "Leases" for its unaudited financial results beginning on January 1, 2018. However, this table provides a comparison of key financial indicators on an IAS 17 basis, as in management's opinion, this approach allows the Company to more accurately assess the trends and dynamics of its business growth. This table also provides our financial results on an IFRS 16 basis. (1) Selling, general and administrative expenses is calculated as selling, general and administrative expenses adjusted for depreciation and amortization expenses, additional share-based compensation expense and cash bonuses under the LTI program. (2) Adjusted EBITDA is calculated as profit for the period before income tax expense, foreign exchange (loss)/gain, gain on acquisition of controlling interest in associate, finance expense, finance income, depreciation and amortization, adjusted for share-based compensation expense and cash bonuses under the LTI program. (3) Adjusted net profit is calculated as profit for the period adjusted for the share-based compensation expense and cash bonuses under the LTI program. Source: Company data 42#43Consolidated statement of financial position Russian Ruble (RUB), million ASSETS Non-current assets Property, plant and equipment Intangible assets Right-of-use assets Other non-current assets Current assets Inventories Trade receivables Cash and cash equivalents detsky mir IAS 17 IFRS 16 Q1 2020 Q1 2021 Q1 2020 Q1 2021 13,199 13,157 45,651 47,498 9,472 9,654 9,472 9,654 1,346 1,442 1,346 1,442 2,134 1,836 32,113 33,760 247 225 2,720 2,642 52,879 49,160 52,512 48,802 38,121 42,827 38,121 42,827 1,719 3,091 1,719 3,091 10,836 1,014 10,836 1,014 2,203 2,228 1,836 1,870 66,078 62,317 98,163 96,300 Other current assets TOTAL ASSETS EQUITY AND LIABILITIES Liabilities 66,449 60,896 100,300 97,597 Long-term loans and borrowings 14,700 19,310 14,700 19,310 Lease liabilities (non-current) 26,853 28,579 Other non-current liabilities 100 90 100 90 Short-term loans and borrowings 20,395 5,746 20,395 5,746 Lease liabilities (current) 7,144 8,252 Trade payables 25,925 29,204 25,925 29,204 Other current liabilities 5,329 6,546 5,183 6,416 Total equity/ (equity deficit) (371) 1,421 (2,137) TOTAL EQUITY AND LIABILITIES 66,078 62,317 98,163 (1,297) 96,300 Source: Company data 43#44Consolidated statement of cash flow Russian Ruble (RUB), million detsky mir IAS 17 IFRS 16 Q1 2020 Q1 2021 Q1 2020 Q1 2021 OPERATING ACTIVITIES: Profit/(loss) for the period Non-cash adjustments Changes in working capital Interest paid Interest received Income tax paid (255) 1,313 (353) 1,294 2,436 2,158 4,972 4,727 (7,680) (7,366) (7,616) (7,280) (187) (123) (829) (654) 8 2 8 2 (702) (928) (702) (928) Net cash used in operating activities INVESTING ACTIVITIES: Payments for property, plant and equipment Payments for intangible assets (6,380) (4,944) (4,520) (2,839) (294) (871) (294) (871) (44) (79) (44) (79) Proceeds from sale of property, plant and equipment Net cash used in investing activities 12 5 12 5 (326) (945) (326) (945) FINANCING ACTIVITIES: Purchase of treasury shares (90) (90) Repayment of loans and borrowings Lease payments Proceeds from loans and borrowings Net cash generated by financing activities (16,386) (14,407) (16,386) (14,407) (1,860) (2,105) 32,230 19,680 32,230 19,680 15,754 5,273 13,894 3,168 Net (decrease)/increase in cash and cash equivalents 9,048 (616) 9,048 (616) Cash and cash equivalents, beginning of the period 1,769 1,826 1,769 1,826 Effect of changes in foreign exchange rates on cash and cash equivalents Cash and cash equivalents, end of the period 19 (196) 19 (196) 10,836 1,014 10,836 1,014 Source: Company data 44#45Contact information detsky mir We have prepared a short feedback survey on our investment case and IR activities. The survey should take just a few minutes. Your feedback and opinions are important and valuable to us. Please follow this link to fill in the feedback survey. All results are anonymous. Thank you in advance. Feedback Survey Please find below the link to the updated IR Calendar. Sergey Levitskiy Head of Strategy and Investor Relations [email protected] +7 495 781 08 08 (ext. 2315) Investor Calendar 45