Detsky Mir Expansion Strategy

Sustainably 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

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