#1Investor Presentation Leading children's goods digital retailer in Russia and Kazakhstan detsky mir 16 May 2022#2Disclaimer detsky mir THIS DOCUMENT IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES 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#4Russia's Children goods retail market leader with strong growth profile Detsky Mir at glance Undisputed #1 player Geography of operations (2) Total number of Group stores +37 268 27% P +8 1% 21 24% share of total children's goods market in Russia in 2021(1) +71 +7 90 11% Store openings, 2021 detsky mir Share of Group sales, 2021 Distribution centers Iconic brand • with 98% prompted awareness (1) 12% 185 +50 +15 Belarus 161 12% Moscow Region 159 17% +8 -3% 30 Northwest Central +4 Far East Volga South 454% Urals and Siberia +51 Kazakhstan Omni-channel with focus on online 160 13% . 80% CAGR '18-21 in online sales • 31% share of online in total sales in Q1'22 Stable growth of number of stores 1,119 1,125 842 868 269 Private label & exclusive assortment 743 274 +251 622 122 90 100 Net store openings 66 • 45% share of private label & direct imports in total sales in Q1 2022 in Russia 556 643 720 778 850 851 in 2021 2017 2018 2019 2020 2021 Q1'22 DM in Russia Other (3) Sources: Company data, Ipsos Comcon, MOEX as of 30 June 2021 Notes: (1) "Children Goods Market in Russia" report by Ipsos Comcon ("Ipsos Comcon report"). Consumer survey conducted in December 2021; (2) As of 31 Dec 2021; (3) Includes DM in Kazakhstan, DM in Belarus and Zoozavr 4#5Iconic brand with 75 years of history 1947-1996 1997-2018 O1947 2019-Today First store with the name of "Detsky Mir" was established O1997 ✓ Sistema consolidated 100% of "Detsky Mir" company detsky mir Establishment of Detsky Mir store chain and brand in USSR Active expansion of Detsky Mir retail chain to become #1 children's goods market player in Russia Transformation into a fully-fledged omni- channel player with well- known brand strength 2011-2012 ✓ Launch of e-commerce Entering Kazakhstan market Acquisition of ELC retail chain in Russia O 2015-2017 ✓ Sale of 23.1% in DM to RCIF Successful IPO on MOEX with over 30.5% free float Детский мир раза 2019 ✓ ✓ Launch of own marketplace Entering Belarus market Revenue has increased -6x since 2012 while number of stores performed 5.2x growth reaching 1,119 stores by December 2021 O 2020-2021 New Strategy 2020-2024 Online channel development with focus on mobile Introduction of Detsky Mir 3.0 Developing new verticals (Zoozavr), digital services and own marketplace Sources: Company data детский мир 5#6Unique customer value proposition: tackling online competition via a better offering 123456 detsky mir Price Leadership 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, % *** WILDBERRIES OZON Focus on Private Label & Exclusive Products Online Delivery Convenience Large and growing share of exclusive assortment 44.8% Private labels & direct imports, Q1 22, % of sales in Russia Direct contracts with large manufacturers Purchase prices optimization, efficient assortment management & better quality control 382 3% 2020 6% 2021 9% 14% 22% Producers among Detsky Mir suppliers 24% 60 minute click-and-collect covers 80% of Russia's population for 20-30k SKUS (2) 45k own and partners' pickup points in more than <2,100 cities 60-120 minute express courier delivery for 20-30K SKUs Next-day delivery from regional DC 86.3% Total orders fulfilled via pickup 110 DM Mini (in-store compact Pick-Up-Points) Mobile App & Digital Store Concept Introduction of digital services in Dec'20 - Mar'22 In 2022, section "Digital services" is planned to be launched in mobile app Content Education Service Health Digital Subscription Service S Educational apps Online games Babysitting Dog walking Cleaning Online medicine Granny for an hour 12 partners selected for development of digital products marketplace 2 games launched in pilot version 1 game released in Apr'22 Sources: Company data Notes: (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#72 Our investment story#8Leading specialized children's goods retailer Market leader in children's goods retail market in Russia and Kazakhstan detsky mir Unparalleled customer value proposition with the focus on private label and digital experience 2 detsky mir Unique omni-channel model with significant growth potential, including new verticals 3 $ Asset-light business with strong returns on capital and consistent dividend payments 4 ୦୦୦ Experienced management team and strong adherence to ESG best practice 5 1 80#9detsky mir Detsky Mir - increasing footprint in Russia and CIS Nº1 Children's goods market player in Russia Nº1 Children's goods market player in Kazakhstan With 24% market share(¹) With ~30% market share by selling space 23 185 268 Belarus Moscow Region 91 30 160 161 Northwest Retail chain structure as of 31 March 2022 By geography Kazakhstan, 47 (4%) By format Zoozavr, 94 (8%) Belarus, 23 (2%) Detmir mini, 110 (10%) 1,125 1,125 Central South 160 Volga Far East Urals and Siberia 47 Kazakhstan Federal Distribution centers ☐ Regional DCs coverage X Total number of Group stores Sources: Company data Notes: (1) "Children Goods Market in Russia" report by Ipsos Comcon ("Ipsos Comcon report"). Consumer survey conducted in December 2021 Russia, 1,055 (94%) Stable growth of stores number +15% CAGR '18-21 DM Classic, 921 (82%) 1,119 1,125 842 868 743 2018 2019 2020 2021 Q1'22#10detsky mir Solid addressable market for Detsky Mir Healthy outlook on key market segments ... Russian children's goods market in all Russian cities (1) (RUB bn) ...with DM gaining market leadership across all categories Detsky Mir market share by segments (2) (%) +2% CAGR'21-25 Toys 733.8 747.2 760.9 774.1 787.6 696.8 7% Stationery 17% 17% 17% 7% 17% 13% 15% 16% Newborns 13% 30% 25% 23% 30% 32% 34% 31% 30% 9% 9% 10% 11% 2020 2021 2022E 2023E 2024E 2025E Shoes Apparel Newborns Stationery Toys 31% 25% 17% Apparel 15% 16% Shoes 15% 24% All market I 22% 2021 2020 Sources: Company data, Ipsos Comcon report, NPD Group report Notes: (1) Market volume is counted in retail prices including VAT (10%) in all Russian cities population); (2) Detsky Mir share estimation is based on total Detsky Mir sales 52% 48% 10#11Market environment evolution detsky mir Online is one of the most fast-growing channels... Russian children's goods market breakdown by channels (%) ... while DM maintains leading positions in both offline & online Market share in total children's goods retail in Russia (2) (%) 7.0% 5.8% 7.0% 24% 10.4% 9.4% 22% 10.1% 12.6% 15.6% 22.0% 27.0% #1 In total children goods retail in Russia #2 detsky mir By children goods online purchases 14% 9% 6% 3% 3% 3% 2% 1% 39.8% 39.1% 38.8% 36.4% 39.0% detsky mir WILDBERRIES OZON 2021 39.7% 38.9% 38.6% 35.8% 27.0% 2017 2018 General food retailers E-commerce (¹) 2019 Дочки- Сыночки Rich Family mothercare КОРАБЛИК Дарим улыбку детям. 2020 Key competitive strengths allowing Detsky Mir to sustain market leadership Price leadership Faster and wider and more convenient delivery 2020 Specialised stores 2021 Focus on private label and direct imports Other Strong offline presence appreciated by our customers Sources: Company data, Ipsos Comcon report, SPARK, Data Insight Notes: (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) 11#12Private label and direct import – value accretive differentiating factor - Private label development is to support margin growth Share of private labels and direct imports in total sales, % 60.0% 44.5% 46.2% 41.6% 35.9% 33.1% 2017 2018 2019 2020 2021 2024E +10p.p. Gross margin in private labels and direct import vs other brands detsky mir Exclusive value offers and direct contracts with large manufacturers Fashion 1 Large-Size products Stationery and others Toys Products for newborns Private labels & direct imports % in total sales, 2021 (vs 2017) 97.4% (90.3% in 2017) 71.5% (64.6% in 2017) 52.8% (31.7% in 2017) 31.7% (18.1% in 2017) 7.7% (1.6% in 2017) Share of private labels and direct imports in sales by category, % 7.7% 6.4% 5.6% 2.9% 31.7% 1.6% 30.7% 29.2% 18.1% 22.9% I 50.3% 52.8% FUTURINO 38.9% 31.7% 33.4% FUTURING Моя Горошина Orsolini Римано в Расены B Baby Go MAMA -TREND- futurino SCHOOL! babyton ute 64.6% 64.6% 67.6% 68.9% 71.5% Own brands CHESSFORD Erhaft RUN JOMOTO JUST MOM ¡Olsson LIFEWEAR ULLA 90.3% 92.9% 95.9% 96.5% 97.4% | Шарро JOOK Futurino Côôl 2017 2018 2019 2020 2021 Fashion Toys ■Large-size products ■Stationery and other Products for newborns Sources: Company data FASHION FUTURINO DINI Demi Star GLOBAL BROS Laffi nearest & deares Baby Go Attivio MANY MOBICARO OKREISS 12#13Well-balanced product mix across traffic generators and high-margin products Product segment Newborns Toys Fashion detsky mir Gross margin Traffic generation Revenue breakdown (1) * ** *** 31% 30% 30% 32% 31% 31% 27% 29% 30% Large items and other ** ** 10% 10% 9% 2019 2020 2021 Newborns Toys Fashion Other Sources: Company data Notes: (1) Retail revenue only 13#14detsky mir Unlocking online growth through omni-channel model Efficient online channel Accelerated growth on the back of the unique omni-infrastructure ☐ #1 Website in the world in Childcare category >90% Organic traffic 80% Online sales CAGR '18-'21 Rapidly shifting to online channel Online sales as % of total GMV Online sales, RUB bn +79% CAGR '17-21 16.2 9.9 86% 5.3 Share of Click & Collect in online sales 2017 2018 2019 45% 30% 31% 25% 11% 8% 5% 54.0 38.9 2020 2021 Outperforming pure e-commerce players and traditional retailers in online Online sales CAGR'18-21, % 77% 71% 66% 2017 2018 2019 2020 2021 Q1' 22 Mid-term target Marketplaces (1) Non-food retailers (2) detsky mir Sources: Company data; Companies' Investor presentations; Public data Notes: (1) Incl. Ozon and Wildberries; (2) M.Video-Eldorado 14#15Detsky Mir core store format overview - Detsky Mir Classic Presence in large cities with >100k population Sales channel mix with focus on in-store (70% offline, 30% online) 1,057 sqm Average selling space(1) Product assortment is almost equally allocated across toys, products for newborns and apparel & footwear 18-24 months stores maturity period - 2.5 3.0 years payback period 99% stores leased Detsky Mir Mini (2) detsky mir 20-30k in-store SKUs 855 # of stores RUB 1,210 Average ticket Presence in smaller cities with 5k-100k population, expanding Company's market size by 30%+ to c. RUB 700bn Balanced sales channel mix (50% offline, 50% online) 800+ stores in medium-term, 1,200+ additional stores in longer term Pick-ups with an unlimited shelf from DCs focused on products for newborns, clothing, footwear Relying on regional DCs coverage 138 sqm Average selling space (1) ~2k in-store SKUs 110 # of stores RUB 856 Average ticket ИГРАЙ ИГРАЙ детский мир Sources: Company data Notes: (1) Including a newer format of smaller selling space stores in less profitable locations; (2) Rebranded Detsky Mir Pick Up Points (PUPs) гrsona within 500km detmir.ru 3 Скачай с уход за детьми Забери заказ delinir.ru Здесь detmir Pickup point 15#16Initiatives to achieve best-in-class mobile user experience New personal account Subscription New planning and prioritisation Профиль 19:05 Болайн 10 19.05 70XC Болайн Ст 19.05 - Белайн (то Бонусная карта Корзина (9) detsky mir Вчера - 3563,90 г Готов к выдаче ТРЦ «Мегаполис Храним до 29 января включительно Мои заказы 1 текущий заказ Избранное 84 товара 19:05 N° 2221 3771 6617 0001 588,30 97,70 бонусов скоро зачислим ? 500 бонусов сгорят через 12 дней Обычная покупка 1799 р Регулярная доставка 1749 р 1799 -3% Обычная покупка Регулярная доставка Дешевле на 62 Р Бесплатная доставка Все мои карты (6) В корзину +19,90 бонусов • Бесплатная доставка • Можно отменить в любое время Бонусная карта 588,30 Добавить карту бонусов История операций • Не нужно привязывать карту Бонусы активированы Сегодня Что такое регулярная доставка? +29 Купленное 287 товаров Заказ № 8821774381 3 563,90 P +34,60 Неактивные -3% -4% -5% Скидка на этот товар растёт с каждой доставкой Подробнее -6% Сегодня в Shopping cart 1024 E www 19:05 Регулярная доставка (7) -5% -6% Подгузники Huggies Elite Soft для новорожденных 24-6кг 100 шт 1749 Р 1799 р. Скидка 50 р Регулярная доставка + Notifications & Payment options www - Билайн СТЕ 10:05 TAN - Болайн СТЕ www 19.05 Explore customers needs Define targets with a focus on NPS growth & UX improvement Prioritise based on impact on UX Key initiatives Revamped shopping cart New personal account Subscription Customised category ТЦ «Валдай» Сегодня Завтра 25 мая, OP 99 р 99 р 4 товара Все товары Bee TOBA 4 товара сегодня - 0 Р Соберём заказ с полок этого магазина. Забрать можно уже через час. Будем хранить до 19 августа включительно. Подробнее Забрать 4 товара 1459,90 р Где остальные товары? Якитория й Арбат Sources: Company data Готово! Заказ № 33119482 Приходите в магазин, когда получите СМС. Отправим в течение часа. +7 925 905-94-06 [email protected] > Уведомления Поддержка Акции Промокоды Статус 9 июля 2020 ФИКСИРУЕМ ЦЕНЫ только на 1 день! Все до 199 #14 8 июля 2020 Очень вкусно и выгодно 4+1 на ВСЮ ФрутоНяню 1 1+1 на Nestle | Питание до -50% > Способ оплаты При получении Наличными или картой Картой в приложении 4 товара осталось. Закажите их сейчас. 7 июля 2020 Выбрать способ получения или смотреть в корзине Скидки малышам до 70% Игрушки и одежда 1 Доп. скидка 30% на Goon | Подарок при покупке Меопу > Pay Assign responsibilities New search 凸 Analytics and dashboard Collect users' feedback Single projects backlog and KPIs for multiple departments 16#17Investing in mobile app as key driver to deliver strategic objectives Detsky Mir mobile app - a go to app for anything children's goods related 11:41 Q Поиск = Каталог 3003ABP Online orders structure (RUB m) 2019 Адреса 6% 16.3 94% Бонусная карта Статус заказа магазинов Детский мир Дарите мечты 238 Акции Популярные бренды Акции Каталог Профиль Корзина HUGG 79% Desktop Mobile app 13.1 million downloads (1) 3.4 million MAU in 2021 2021 21% 54.9 4.9/4.8 Mobile app rating in Google play / AppStore (2) Google play 4th place in Markswebb E-commerce checkout rank Rank of stores with the easiest order placement in app 2nd place in OMNI Retail Rating Rank of seamlessness of customer's experience Sources: Company data, AppAnnie, SimilarWeb Notes: (1) Cumulative number of downloads since launch, as of Q4 2021; (2) As of December, 2021 Developing Tier 1 app detsky mir Tier 3 Tier 2 Tier 1 detsky mir Mid-term Provided now Pending shortly Catalogue Filters and sorting Shopping cart and checkout Favourites Online payment Personal account with order history Search Chat support $ 16 Recurring orders subscription Personalised product recommendations Digital services and products 17#18detsky mir Roll-out of regional DCs to boost availability of next-day delivery Next-day coverage within 500km area from DCs Saint-Petersburg Moscow Ekaterinburg Kazan Rostov Federal DCs Novosibirsk Regional DCs New Federal Distribution Center in Ekaterinburg ☑Launched in Feb 2022 RUB 3.5bn Total Capex 2.4m SKUS 64k m² storage area 80% next-day delivery coverage of 20.5m population Distribution centers overview Growing availability of next-day delivery Distribution center Space, k sq.m SKUs, m Population coverage, m Federal and Regional DCs Coverage as % of Russia population, (%) 71.0 Moscow (Bekasovo 1 and 2) 2.4 48.3 63.0 84% 84% Rostov (1) 5.5 0.2 15.9 68% 37% 37% Kazan 8.0 0.2 14.9 21% Novosibirsk 10.0 0.2 14.4 33% Ekaterinburg 63.0 2.4 20.5 47% 47% 47% Saint-Petersburg (2) 33% 10.0 0.2 9.5 Federal DC (3) 2.4 Total 230.5 Sources: Company data 2020 2021 2022E 2023E 123.5 Federal DCs (2.4m SKUs) Regional DCs (0.2m SKUs) 18 Notes: (1) Planned expansion to 7k sq.m in 2022; (2) Planned to open in Q1 2022; (3) Planned to open in 2024#193 complementary channels to optimise speed and coverage of courier delivery Omni-channel delivery platform Main DC Courier delivery In-store pickup Pickup Retail store Pickup KO Regional DC Sources: Company data Connected Pups 37k own and partners' pickup points 310 Cities with express delivery detsky mir Main DC Regional DCs "Last mile" through retail chain Assortment 2.4m SKUs 200K SKUs <40K SKUs Number of Locations 2 Main DC(1) +2 DCs in the pipeline 2 Regional DC +2 DCs in the pipeline 950 stores Coverage 95% of Russia population 500km from Regional DCs, 84% of Russia population 5km within stores 30% of Russia population 88 Speed 1-20 days Next- day ~2 hours Next day delivery Notes: (1) Bekasovo 1 and 2 Same-day 19#20Detsky Mir marketplace contributes to the wide assortment detsky mir Key developments in 2021 3.5 GMV (RUB bn) 6.3% Share of marketplace in total online sales Long-term vision 2,400k SKUs - overtaking key local competitors in relevant categories DM Marketplace profile Assortment Focus on children's FMCG and fashion PP Pricing Mid- to mid-high price segments 2.1k Number of suppliers added 920k SKUs Double-digit share of marketplace in total online sales % Economics 3PL commission-based model Users Customers: same target base, same loyalty program Merchants: local producers and well-known international brands % Service platform Interface and logistics/ delivery on same platform as DM's 1P e-Commerce Growth Focus on children's goods ✓ New categories (pet supplies) O Transition to a structural commission (similar to Ozon and Wildberries) Deeper monetisation of merchants Automation of logistics processes Improvement of reverse logistics management 19-22% fixed / actual commission rate Lean costs structure - primarily logistics and payroll Low marketing cost vs other MPs thanks to "free" traffic / strong brand Sources: Company data 20#21Zoozavr - entering promising pets supplies market detsky mir Store Format ■ 100sqm total / 85sqm selling area ■ At shopping center or street retail, close to a chain food retailer ■ Comprehensive assortment: • ~3k SKUs in store >10.0k SKUs online - Upcoming private labels range ■ Cross-integration with DM: stores, ordering, pickups, logistics Effective online coverage of entire Russia via DM's footprint 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 Лучший предложения для в питомцел 3023ABP товары для животных Sources: Company data Performance highlights in 2021 ✓ RUB 930m revenue Share of online sales reached 66% in total sales Loyalty program members generated ~75% of total sales Q1'22 highlights 94 stores as of 31 March 2022 ✓ 6 private labels with 600 SKUs were successfully launched 21#22detsky mir "Beyond retail" - digital services as the next growth layer 2:12 Services Babysitting Online education Online pediatrician Cleaning Hairdressing Dog walking 2:12 Apps 2020 Education Feeding and care Entering digital services and products market in mid-term Pilot results Pilot stage of digital products marketplace launched in Dec'20 Selection of 20 partners & adding 70 apps to mobile app (incl. parental control & GPS, educational apps, entertainment and games) Adding 30 new services in Mar'21 (incl. babysitting, dog walking, cleaning, online medicine, granny for an hour services) Starting to develop a full-fledged platform in Apr’21 12 partners were finally selected for development of DM digital products marketplace 1 game released in Apr 22 Section "Digital services" is planned to be launched in mobile app in 2022 Key benefits For Partners Free traffic and loyal audience еще 45 abc FINIT Safety Games Repair Tutors Events Sources: Company data ༢་ For Customers High confidence in brand Trustworthy content Unique customer experience at all touchpoints Business diversification For Detsky Mir Additional source of monetizing traffic and audience Building long-term relationships with clients 22#233 Strategic update#24Our Strategy 2021 - key building blocks Solidify leadership in the children's goods retail Investment in logistics - enhancing our delivery options 84% Next Day Delivery Coverage of Russian Population by 2022 detsky mir Further roll-out of private label and exclusive offering ✓ 60% private label share in the sales by 2024 Continuous expansion of omni-channel proposition driving both offline and online sales 2x GMV growth '20-24 detsky mir Pet supplies stores - penetrating new market ✓ Promising unconsolidated new market New verticals </> ✓ m ✓ Implementing best-in-class UX and CX across the channels An emerging go-to app for anything children's goods related Marketplace as a tool to enrich the assortment 2.4m SKUs by 2024 - the leading children's goods assortment Digital services - further unlocking value of our mobile app ✓ A promising new source of monetization/traffic 24#252021 and Q1 2022 Highlights 1 Accelerated top-line growth 2 Explosive online sales growth 3 2021 ■ 16.9% total GMV growth 15.0% net revenue growth detsky mir Q1'22 7.6% total GMV growth 6.1% net revenue growth 40.2% total online sales growth ■ 29.8% online sales share 19.9% total online sales growth ■ 30.7% online sales share Continuous retail chain expansion 251 new stores: 84 Detsky Mir, 94 Detmir mini, 73 Zoozavr 8 new stores: 7 Detsky Mir, 1 Zoozavr 4 Solid EBITDA and margin 5 Sound financial discipline Adj. EBITDA at RUB 18.0 bn ■ Adj. EBITDA margin at 11.0% Adj. EBITDA at RUB 2.6 bn Adj. EBITDA margin at 7.0% Net debt/ adj. EBITDA LTM at 1.8x Fully RUB-denominated debt to match RUB revenue, mostly fixed Hereinafter, the Company's consolidated financial measures for 2021-2022 and related interim periods are based on proforma financial information prepared as if IFRS 16 'Leases' had not been adopted, and thus do not represent IFRS measures. The data on comparative dynamics are given year-on-year. 25#26Strategy execution progress: Further consolidation of children's goods market Continuous omni-channel retail platform development and growth Number of stores (1) Distribution centers 2020 848 2021 1,026 2 Federal 2 Federal 1 Regional 3 Regional (2) detsky mir Mid-term target ~1,970 4 Federal 4 Regional Online sales share of 25.5% 30.8% 45.0% GMV (Russia) Marketplace GMV % of 1.4% 6.3% -10% online GMV 0000 Number of SKUs (incl. 250k 920k ~2.4m Маркет плейс Marketplace) & Private label share of revenue Sources: Company data 44.5% 46.2% Notes: (1) Only including Detsky Mir Classic and DM Mini stores, not including pet supplies stores; (2) In October 2021 (past the reporting date) the Company launched its third Regional Distribution Center in Novosibirsk 60.0% 26#27Strategy execution progress: Enhancement of customer and user experience MANU MANUL S 1009 Manu 1099 MANU MANU D питесь! Ova проезд < Mobile-first concept with best-in-class app New features introduced to the mobile app, 2021 achievements included Launch of DM mobile app in Belarus and Kazakhstan, launch of Zoozavr mobile app Updated search engine with an improved user interface Quick second order function and improved mobile app area "My orders" Login and registration via social networks Product recommendations and chat with customer support Sources: Company data. orders & info 毎日 detsky mir Detsky Mir 3.0 successful pilot and further roll-out DM 3.0 store concept was introduced in Q2 2021 to support online sales growth and improve customer experience: 107 stores in DM 3.0 format as of Dec'21 Unified customer communication in stores and online leads to NPS increase All new stores will be opened in 3.0 format since 2021 Full digital transformation and modernisation of existing stores in the mid-term Simplified store design and Omni-channel design concept improving user experience 27#28Continued development of our complementary sources of growth detsky mir 娜 2020 2021 Number of Zoozavr stores 20 93 303ABP ко Digital Services Sources: Company data Mid-term target -490 170 sqm Average selling area ~6.5k/>10.0k SKUs in store/ in online 30% share of private labels Successful pilot Development Content Education Service 12 2 Health Digital Subscription Services Partners selected for digital marketplace development Games launched in pilot version & 1 game release is expected in Apr 22 Full-fledge digital services platform In 1H'22 Section "Digital services" is to be launched in mobile app 28#294 Recent financial performance#30Continued top-line growth Total GMV(¹) stable growth, including growth of online sales(2) (RUB m) incl. VAT 157,622 1,093 4,261 152,268 2020 Russia +16.9% 184,277 2,130 6,927 39,634 376 1,379 25.5% Online sales in Russia Kazakhstan 175,220 2021 Belarus 37,879 30.8% Online sales in Russia Q1'21 Russia detsky mir +7.6% 42,645 645 1,903 40,097 28.5% 32.0% Online sales in Russia Online sales in Russia Q1'22 Kazakhstan Belarus Source: Company data Notes: (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 30#31Solid online growth with strong loyal customer base Continuous growth in online traffic (Web and mobile platforms) +47.4% 450.6 Sources: Company data detsky mir Strong loyal customer base (1) Active loyalty card holders, m 10.9 11.7 664.4 +22.5% 177.9 Q1'21 Q1'22 145.3 Loyalty card holders in total sales, % 85.9% 87.1% Q1'21 Q1'22 Loyalty card holders active online, % 37.2% 33.5% 2020 2021 Q1'21 Q1'22 Online Visitors (m) Q1'21 Q1'22 Notes: (1) 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 31#32Best-in-class mobile app performance Strong mobile app metrics Installations (1) Mobile app is the largest online channel (Online orders, Russia) MAU(2) 8.7m +59% 13.8m Q1' 21 Q1' 22 detsky mir Click and collect, % 84.0% 86.3% 85.7% 82.8% 21.4% 18.0% 24.0% 40.4% 82.0% 78.6% 76.0% 59.6% 3.0m +27% 3.8m Q1'21 Q1'22 2020 Mobile platform orders, % 2021 Q1'21 Web platform orders, % Q1'22 Sources: Company data Notes: (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 32#33Our growth trajectory Like-for-like sales challenged by the macroeconomic backdrop (1) detsky mir Group's retail chains expansion (2) Total selling space (sqm 000s) (RUB m) # of stores 4.0% 4.9% 7.5% -3.0% 3.9% 5.4% 7.9% -2.1% 13.1% 2.9% 3.2% 13.3% 1.5% 5.4% 3.4% 4.5% 5.5% 1.5% 3.8% 4.5% 880 -1.4% T-1.5% 22 21 22 2020 2021 14.3% Q1'21 Q1'22 2020 Total % change Russia 2021 Q1'21 +245 1125 94 110 902 13.6% 921 837 Q1'22 Total % change Russia & Kazakhstan & Belarus Number of tickets LFL Average ticket LFL +8.9% 982 Q1'21 Q1'22 Q1'21 Q1'22 Detsky Mir Detmir mini Zoozavr Sources: Company data. Notes: (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 mini 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 33#34detsky mir High gross margin driven by private label expansion Group revenue is growing across all segments (1) (RUB bn) While gross margin is supported by private label share increase +15.0% 142.9 164.3 +6.1% 44.5% 30.8% 46.2% 40.4% Private label & direct imports (Russia), % of revenue(2) +14.7% 30.7% 50.4 44.0 37.9 35.7 29.6% 10.6 +8.3% 44.8% 30.2% 11.4 2020 2021 Q1'21 Q1'22 2020 2021 Q1'21 Q1'22 Gross profit (RUB bn) Gross profit margin (%) Sources: Company data Notes: (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 Mini 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 app 34#35Consistently strong profitability Continuous delivery of the solid double-digit profitability... ... despite the rising cost inflation 11.9% 11.0% 8.7% 7.0% +6.2% 18.0 17.0 2020 3.1 2021 Q1'21 -14.9% detsky mir Adjusted SG&A expenses (2) as % of revenue 23.2% 21.0% 19.9% 4.1% 18.9% 3.5% 0.8% 3.5% 3.2% 0.6% 0.6% 0.8% 9.0% 8.5% 7.6% 7.5% 9.3% 7.4% 8.2% 8.4% 2.6 Q1'22 2020 2021 Q1'21 Q1'22 Adjusted EBITDA (RUB m) -Adjusted EBITDA margin (%) Payroll Rent & utility | Advertising & marketing Other Sources: Company data Notes: (1) 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 and one-off (income) / expense items; (2) 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 35#36Cash flow evolution Q1'22 cash flow evolution (RUB m) 3,807 2,641 (6,365) 11,286 Capex breakdown CAPEX (RUB m) 2021 1Q'22 New openings 1,082 83 IT 1,098 358 Infrastructure (inc. DC Ural) 2,679 350 Other (inc. HQ) 397 106 Total 5,256 897 1,054 (889) 8,968 (2,566) Cash and equivalents, 2021 Q1 Adj. EBITDA (IAS 17) Change in NWC Other (incl. interest, Net borrowings taxes and one-offs) Capex FX effect Cash and equivalents, 2022 Q2 Solid operating cash flow driven by high EBITDA • Disciplined capex focused on store openings and selective investments in IT and infrastructure; limited maintenance capex requirements Sources: Company data 36#37Conservative financial policy Comments ■ Commitment to a conservative financial policy - - Fully RUB-denominated debt to match RUB revenue, mostly fixed rates Relationships with multiple Russian and international banks Leverage Q1 22 total debt - RUB 40.2 bn 1.4x ■Net debt / Adj. EBITDA ratio as of 31 March 2022 is 1.8x vs. 4.0x average covenant level across the loan portfolio (IAS 17) ■ Weighted average interest rate (1) - 12% as of 31 March 2022 ■ No contingent off-balance sheet liabilities ■ Available undrawn credit limit of RUB 29.7 bn for refinancing of the current credit portfolio aiming at its further diversification as of 31 March 2021 24,042 Q1 2021 (IAS 17) Debt maturities as of 31 March 2022 (RUB m) 10,498 5,900 2022 2023 13,730 2024 Net debt detsky mir 1.8x 39,779 36,831 31,203 24,042 31,203 Q1 2022 (IAS 17) Q1 2021 Q1 2022 (IFRS 16) (IFRS 16) Lease liabilities Net debt/Adj. EBITDA Weighted average interest rate (1) Company rate CBR 20.0% 12.0% 9.0% 8.8% 8.4% 7,5% 8.0% 8.0% 8.5% 7.5% 7.4% 6.7% 6.6% 7.2% 7.8% 7.8% 7.0% 6.3% 4.5% 4.3% 4.5% 8.5% 6.8% 6.0% 4.3% 5.5% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Sources: Company data Notes: (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 37#385 Sustainable development#39Continuous Focus on ESG Environmental Social CO2 JZDHC BCI Better Cotton Initiative 40% of hangers are made of recycled plastic by the end of 2021 6.6 kt of waste for recycling were collected at the Company's distribution centers - 26% reduction of GHG emission (1) intensity in 2021 vs 2018 From 0.89 in 2018 to 0.66 tons of CO2 per RUB m in 2021 71% and 44% of the purchases in the Clothing and Footwear categories were made from participating suppliers in the ZDHC initiative BCI's cotton processing standards are applied to the Company's own line of Baby Go and Futurino brands % RUB 2.6bn paid to the national and regional budgets as social payments 81% women employment rate with minimal gender pay gap (0.90 ratio of basic salary of women to men) Over RUB 1bn The total value of goods donated to charitable causes in 2021 25.3% of total sales Are children's goods manufactured in countries where the Company operates More than 900 beneficiaries Received help due to Participate! Campaign in 2021 THE GLOBAL COMPA Sources: Company data Notes: (1) Scope 1, Scope 2 + Scope 3 UNITED NATIONS GLOBAL COMPACT International sustainability initiatives supported by Detsky Mir SUSTAINABLE GALS DEVELOPMENT 2 ☑ detsky mir Governance 5 INEDs out of 10 BoD members Independent Chairwoman heads the BoD Transparent compensation system Information is disclosed based on the principles of regularity, consistency and availability Zero tolerance to corruption 100% of suppliers signed Supplier Code of Conduct unicef→ 39#40Strong Independent Governance Framework INEDs Non-INEDS Maria Gordon Chairwoman, Head of Nomination and Remuneration Committee Pavel Grachev Deputy Chairman, Non-Executive Director. Head of Strategy and ESG Committee David Rönnberg Independent Director ⚫ CEO of Musti Group (a Scandinavian omnichannel pet supplies retailer) Alexander Shevchuk Independent Director • Executive Director at the Association of Professional Investors detsky mir BoD of 10 members with 50% INEDS (incl. Independent Chairwoman) INEDs Non-INEDS Dmitri Klenov Non-Executive Director • CEO of Altus Capital • Member of the BoD at Pharmacy Chain 36.6 and Sakhalin Shipping Company Mikhail Stiskin Non-Executive Director •CFO of Polyus • Chairman of the BoD of Lenzoloto Gold Mining Company Committees of the BoD: Audit 100% INEDs Nomination and Remuneration 100% INEDs Strategy and ESG Michael Foss Independent Director • Co-founder & BoD member of Independent Pet Partners Tony Maher Non-Executive Director ⚫ Director at Da Vinci Capital • Member of the BoD at Steppo Agro Andrey Anischenko Independent Director Co-founder of Skillbox • Member of the BoD of Grape LLC and Possible LLC Prominent shareholder base (1) Altus... Vladimir Klimanov Non-Executive Director • Investment Director of Veta Capital Partners LLC Storale Limited,... . Deputy M&A Director at Management Company Polyus Free float(2), 70.0% Sources: Company data Notes: (1) As of 31.12.2021; (2) Including quasi-treasury shares and shares held by management and directors (0.3% of total shares) 40#416 Appendix#42Gaining market share in baby food and diapers segments detsky mir Baby food sales by channel in Russia 13.4% 14.4% 15.5% 17.2% 19.0% +1.4x 11.0% 8.8% 7.4% 4.4% 3.4% Detsky Mir's market share growth 23.8% 24.1% 24.5% 23.7% 22.4% over 4 years 17.5% 16.0% 15.3% 14.7% 13.2% Supermarkets Hypermarkets 34.4% 36.7% 37.3% 40.0% 41.9% Minimarkets ■Specialised stores Detsky Mir 2017 2018 2019 2020 2021 Diapers sales by channel in Russia 22.1% 26.1% 29.7% +1.8x 34.7% 39.3% 17.8% Detsky Mir's market share growth 17.7% 13.8% 7.9% 3.1% over 4 years 22.9% 21.6% 22.6% 24.2% 25.2% Supermarkets ■Hypermarkets 22.1% 20.1% 18.3% 16.5% 13.4% Minimarkets Specialised stores 15.0% 14.5% 15.5% 16.6% 19.0% Detsky Mir 2017 2018 2019 2020 2021 Source: Nielsen 42#43Gaining market share in toys segment detsky mir Toys market and DM sales structure by channels Sales growth 2020-21 DM market shares Key categories enhancing growth 13% 12% 23% 26% 26% 31% Specialist retailers 9.0% +3.8p.p. 52.0 48.2 % % Transport Constructors A Games for preschoolers detsky mir 1.0% Other specialists BC 2020 2021 77% 74% 61% Online retailers 57% 29.0 % +1.1p.p. 43.4 Constructors olo 26.0 % % 42.3% 2020 2021 2020 Total market ■Specialists 2021 detsky mir Other 2020 2021 detsky mir online E-commerce Mass Merchant Sources: NPD report "Trends of the Russian toys market" Notes: Excluding Wildberries Dolls Sport goods & outside games 43#44Why is our offline channel so important? Emotional purposes ☑3 Choose gift for a child • Store visit purposefully at the child's wish Impulsive shopping (customers passed by DM store) Visiting a store for entertainment 98% Purposes of DM store visiting detsky mir - Нравится: 32.953 detsky mir Practical purposes Buy new apparel & footwear M Pickup an online order (☑ Large targeted purchase of necessary goods Buy staples in small amounts 2 - Frequency of mentioning the purpose of DM store visiting 70% Detsky Mir clients prefer buying offline (1) #1 98% Detsky Mir brand awareness Source of family entertainment - shopping centers Share of DM stores located in shopping malls 86% The share of click & collect (fast delivery, post-payment and no min limit for orders) Strong presence in offline channel allows Detsky Mir to deliver unique customer experience, which is highly appreciated by our clients, who prefer in-store shopping Sources: Company data, Ipsos Comcon report Notes: (1) Based on customer survey in Jan-Feb'22 44#45Shopping malls - core family entertainment centers Detsky Mir is a core tenant for shopping malls 98% Share of Detsky Mir stores Located in shopping malls MALL Favorable rental terms lead to costs saving Rental expenses % of revenue 13.5% 13.1% 12.8% 11.7% 10.3% 9.8% 9.2% 8.6% 7.5% 7.6% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sources: Company data, Ipsos Comcon report % detsky mir Detsky Mir is a must for the most shopping malls Exceptional brand awareness boosts traffic generation Detsky Mir is a large and financially sound counterparty with strong bargain power Shopping malls in Russia - #1 source of family entertainment детский мир Favorable rental terms 45#46Who is DM's customer? #1 federal chain, 62% customers live in smaller cities/towns Geographical structure, 2021(1) Other, 62% Children and average salary of DM customers (3) 1 child % share of clients 39.3% Monthly income Women Sales structure by gender, 2021(2) 88% sales are 1M+ population cities, 38% generated by women Men, 12% 2 children 40.5% RUB 40-90k RUB 30-60k Sources: Company data Notes: (1) Based on customer survey in Jan-Feb'22; (2) Based on Company's loyalty program data; (3) Based on customer survey in Sep'21 Women, 88% detsky mir 18-35 age 62% of clients are 35 years old or younger Sales structure by age, 2021(3) >40 years, 16% 36-40 years, 22% 18-35 years, 62% 70% clients prefer buying offline (1) Pet owners 53% clients have pets (1) 46#47New Government measures to support birth rates and boost disposable income for families with children Allowance per child Before changes (2020) 1st child 2nd child detsky mir Additional payments of c. RUB 600bn for families with children starting from June 2020 One-off payments related to COVID-19 After Changes (2022) RUB 467k RUB 524k (1) RUB 169k (1) / RUB 693k (1),(2) - - RUB 15k per child in Q2 2020 for children <3 years old 1st child 2nd child Total program c.540k children c.560k children c. RUB 260bn c. RUB 440bn Cumulative incremental funds available ☐ +RUB 180bn 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 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 7.7k (1) per month for children <1.5 years old starting from February 2022 One-off payment of RUB 20.5k (1) for the birth of a child starting from February 2022 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 In February 2022, the Government announced maternity allowance indexation 47 Sources: Rosstat demographic forecast 2020-2035, PFR, CIF of Russia Notes: (1) In February 2021, the Government established a comprehensive system of support measures for families with children. In February 2022, the Government announced these payments indexation; (2) In case of not receiving allowance per 1st child#48Top management compensation structure overview Annual compensation structure detsky mir CEO <<CEO-1>> <<CEO-2>> Fixed 50% 50%-80% 60%-85% Total 50% 20%-50% 15%-40% Variable Incl. Financial() 30% 5%-20% 4%-14% Incl. Functional(2) 20% 15%-30% 10%-26% 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) Sources: Company data 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 In 2022, the Company plans to increase the number of LTI program participants Incentive program to cement the management's long-term focus on shareholder value creation Notes: (1) Financial KPIs - EBITDA, net income, revenues; (2) Functional KPIs - specific operational KPIs, individual for each role 48