Detsky Mir Expansion Strategy slide image

Detsky Mir Expansion Strategy

Russia'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
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