PowerPoint Presentation€¦ · BoD recommended to pay out a final dividend for 4Q 2018 of RUB...

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Detsky Mir Clicks Lojas Renner LPP CCC Raia Drogasil B&M Liverpool XXL X5 Magnit Lenta Five Below Children's place Carters Jumbo Baby Bunting

High Performance Specialty Retailers Russian Food Retailers Children’s Goods Retailers

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BoD recommended to pay out a final dividend for 4Q 2018 of RUB 3.3bn

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14,6% 15,0% 14,5% 13,8% 14,8%

24,5% 22,1% 20,7% 21,9% 18,9%

16,8% 22,1% 26,5% 26,8% 28,3%

18,9% 17,8% 17,1% 16,9% 16,3%

25,2% 22,9% 21,0% 20,7% 21,6%

FY2016 FY2017 FY2018 Q1 2018 Q1 2019

Supermarkets Hypermarkets Detsky Mir Standalone children's stores Minimarkets

32,3% 34,4% 36,5% 36,0% 37,2%

18,1% 17,5% 16,3% 17,1% 16,1%

11,3% 13,4% 14,3% 14,6% 15,2%12,1% 11,0% 8,7% 9,0% 8,0%

26,2% 23,8% 24,2% 23,3% 23,5%

FY2016 FY2017 FY2018 Q1 2018 Q1 2019

Supermarkets Hypermarkets Detsky Mir Standalone children's stores Minimarkets

Case Study: Gaining Market Share in Baby Food and Diapers Sales

Source: AC Nielsen

Detsky Mir’s shares in the diapers markets increased by 1.7x over several years

Baby food and Diapers remain key

categories for children’s goods stores as

traffic generators

Only children’s goods specialized stores

offer a full range of Baby Food and Diapers

products unlike hypermarkets which are

focused on “bestsellers” SKU

Detsky Mir gained market share away from

other channels

Notably, Detsky Mir has outperformed food

retailers which have been the largest sales

channel for baby food historically

Detsky Mir’s Baby Food market share

increased by 35% to 15.2% in Q1 2019

(vs 2016)

Detsky Mir’s Diapers market share

increased by 1.7x to 28.3% in Q1 2019

(vs 2016)

+2.1 p.p.

-2.5 p.p.

-1.1 p.p.

+2.1 p.p

+1.0 p.p.

+0.4 p.p.

-2.3 p.p.

+1.9 p.p.

Baby Food Sales by Channel in Russia Comments

Diapers Sales by Channel in Russia

+5.3 p.p.

-2.3 p.p.

-1.1 p.p.

-2.4 p.p.

+4.4 p.p.

-1.9 p.p.

-0.7 p.p.

-1.4 p.p.

-0.6 p.p. -1.2 p.p.

+0.4 p.p. -0.5 p.p.

+0.6 p.p.

-1.0 p.p.

+1.2 p.p.

-1.1 p.p.

+1.5 p.p.

-0.6 p.p.

-3.0 p.p.

+0.9 p.p.

+1.0 p.p.

+0.2 p.p.

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Detsky Mir X5 M.Video Group

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(-130bps Q1 '19 vs Q1 '18)

(+70bps Q1 '19 vs Q1 '18)

Q1 '18 Q1 '19

6,108 2,867 3,289

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