Children's world

Detsky Mir Group of Companies (ticker on the Moscow Stock Exchange - DSKY) is a multi-vertical digital retailer, a player in the children's goods market in Russia and Kazakhstan, as well as in Belarus.

Aktivs

As of July 2021, the Group comprises:

• retail chains of stores "Detsky Mir" and "PVZ Detmir,"
• online store and marketplace detmir.ru,
• as well as the animal goods chain "Zoosaurus."

Since 2017, the average number of employees of the Group has increased by almost 6,000 people and as of September 2022 is more than 16 thousand.

Shareholders

Shareholder of Detsky Mir for July 2021 - Gulf Investments Limited (Altus Capital) - 29.9%; shares in free float - 70.1%, including quasi-treasury shares and shares owned by management and directors (0.3%).

Performance indicators

2022: More than 5x more stores in 10 years

Over 10 years (from September 2012 to September 2022), the number of stores under the sign "Detsky Mir" has increased more than 5 times: from 216 to 1,123 outlets in Russia, Kazakhstan and Belarus, and the online range - a record 300 times (from 3,200 SKU to 902,000 SKU).

The annual volume of own and attracted investments aimed at charitable assistance to children and homeless animals has grown more than 10 times over the past 10 years to 1.1 billion rubles. Under the patronage of the charitable foundation of the same name for September 2022, there are already more than 900 social institutions, non-profit organizations and animal shelters.

2021: Revenue growth by 15.0% to RUB 164.3 billion

Detsky Mir Group of Companies, a multi-vertical digital retailer, shared its operating results for the fiscal year ended December 31, 2021 with TAdviser on January 25, 2022. Total sales of the Group (GMV) increased by 16.9% to RUB 184.3 billion (including VAT).

The total volume of online sales in Russia increased over the year by 39.1% to 54.0 billion rubles. (including VAT); the share of online sales in Russia amounted to 30.8%.

The Group's net revenue increased by 15.0% over the year (and 6 times in 10 years) to RUB 164.3 billion. Sales of own brands and direct imports in Russia amounted to 46.2% of total sales (+ 1.7 pp year-on-year).

In 2021, the company opened a total of 251 new stores: 72 Detsky Mir stores in Russia, 4 Detsky Mir stores in Kazakhstan, 8 Detmir stores in Belarus, 94 Detmir Mini stores and 73 Zoosaurus stores. At the end of the fourth quarter of 2021, the Group's total number of stores increased by 28.9% year-on-year to 1,119 stores located in 445 cities and towns in Russia, Kazakhstan and Belarus. In turn, the retail space of the Group's retail stores increased over the year by 9.3% to 980 thousand square meters. m

At the same time, in the reporting year Detsky Mir continued to strengthen its position in the exclusive assortment. Thus, over the full year, the share of sales of own brands and direct imports in Russia increased and amounted to 46.2% of revenue (+ 1.7 pp year-on-year). The growth was primarily caused by the increased share of sales of the Clothing and Footwear category (where STM and direct imports are 97%), as well as an increase in the share of STM in the neonatal products and large goods categories.

The number of participants in the bonus program in Russia is constantly growing. At the end of the reporting period, 29.6 million buyers had bonus cards (+ 10.4 million cards year-on-year). The share of purchases made by program participants in sales amounted to 86.5% (+ 2.2 pp year-on-year).

The number of active loyalty card holders amounted to 11.4 million people. The number of digital active loyalty card holders grew by 26.5% to 4.3 million people, taking 38.1% of the total number of active cards.

Shareholders of Detsky Mir approved the payment of interim dividends for the results of 9 months of 2021 in the amount of 3 842 800 000 rubles, which corresponds to 5.20 rubles. per ordinary share. The amount of dividends corresponds to 60% of adjusted profit for 9 months of 2021 according to RAS. The total amount of dividends paid in 2021 will amount to 8.3 billion rubles, which represents an increase of about 7% against the total amount of dividends paid in 2020.

The company launched the third regional distribution center in the Novosibirsk region. The fulfillment center based on the Russian Post will provide delivery the next day of at least 80% of online orders to Detsky Mir customers in the Siberian Federal District. At the fulfillment warehouse, the Post will be able to simultaneously store up to 200,000 product items from the Detsky Mir assortment and ship up to 90,000 online orders monthly. The center will handle all product categories, from diapers and toys to baby furniture, strollers and pet products.

Buyers have issued more than 1.5 million orders in Detsky Mir during the Black Friday sale days. As a result of the action, more than 1.5 million orders totaling 3 billion rubles were issued in the online store and the Detsky Mir mobile application. The maximum discounts were valid from 18:00 on November 25 to 23:59 on November 26, when more than 450,000 orders were recorded for a total amount of more than 930 million rubles, which is 37% higher than last year's share in monetary terms.

"The past 2021 proved the success of the model development course omnicanal we have chosen. As a result of the strategy, we have strengthened our position in the children's products market, becoming one of the largest and fastest growing players e-commerce in the Childhood category. In particular, we expanded the geography of the retail network's presence, strengthened the federal and regional logistics infrastructure, increased the assortment due to the development of the marketplace, and also increased the speed of online order delivery and improved the quality Maria Davydova of customer service in all sales channels, "summed up the results of the year, CEO of Detsky Mir PJSC.

According to her, in 2022, the main task of Detsky Mir remains in the further consolidation of the children's goods market, and the key focus is to effectively expand the logistics, retail and digital infrastructure to achieve high results both offline and online in the changing market environment.

History

2023

Transfer of almost 45 tons of recyclable materials to the Dmitrovsky RTI Group plant for further processing

Detsky Mir handed over almost 45 tons of recyclable materials for further processing to the Dmitrovsky RTI Group plant, increasing the volume of raw materials transferred per year by almost 10 times. Detsky Mir announced this on December 26, 2023.

For 2023, buyers of the Detsky Mir chain within the framework of the New Life of Unnecessary Clothes and Shoes with Benefits for You campaign donated almost 18 tons of used shoes and unnecessary textiles for further processing. The number of buyers who took part in the promotion for 2023 exceeded 25 thousand people.

The most popular points for collecting recyclables were Detsky Mir stores on 37 Vernadsky Avenue, building 3, at 38 Menzhinsky Street, building 2, building 2, also Detsky Mir in the Grand Plaza shopping center in Shchelkovo.

In addition to the waste of shoe and textile production collected as part of the New Life of Unnecessary Clothes and Shoes with Benefits for You campaign, Detsky Mir sent more than 26 tons of plastic hangers used earlier in the trading floor of the chain's stores to the Dmitrovsky RTI Group plant for further processing.

For more than three years, the "Children's World" has been operating an action to collect unnecessary clothes and shoes. 2023 was a record year in terms of the number of recycled materials handed over. We are pleased that every year the number of eco-share participants is growing, both in our stores and among the employees of the Group of Companies. Our joint initiative with the Dmitrovsky RTI Group plant is a great opportunity to get rid of unnecessary wardrobe items and get a 15% discount on new things, - commented Natalya Rychkova, PR director of Detsky Mir Group of Companies.

Dmitrovsky Plant RTI Group constantly supports and initiates environmental actions, primarily so that more people consciously approach purchases. Our task is to make the world cleaner, so for three years now we, together with Detsky Mir, have been organizing the collection of clothes from the population through points installed in retail outlets of the network, "said Ksenia Yershova, Deputy General Director of the Dmitrov RTI Group Plant.

Completing a Transformation into a Private Business

On September 20, 2023, Detsky Mir announced that the transformation into private business, announced in November 2022, has been completed. Based on the results of the implementation of the programs for the acquisition of shares of Detsky Mir PJSC announced in May 2023, the subsidiary of the Company, DMFA JSC, consolidated 58.26% of the voting shares of Detsky Mir PJSC (hereinafter referred to as "Shares"), taking into account Shares owned by its affiliates. Part of the repurchased Shares was paid in accordance with the terms of the Voluntary Offer of DMFA JSC with other securities - shares of DMK JSC (owns a 100% stake in the non-public operating company DM LLC, separated from Detsky Mir PJSC in May 2023).

Thus, the shareholders of Detsky Mir PJSC, who accepted the Voluntary Offer of DMFA JSC with payment of Shares with other securities - shares of DMK JSC, acquired 100% of shares of DMK JSC and, thus, full control over the operating business of the Detsky Mir. Further steps in relation to the Shares of Detsky Mir PJSC Further, DMFA JSC will send to the owners of the remaining Shares of Detsky Mir PJSC a public offer to acquire Shares from them (hereinafter referred to as the "Binding Offer"), within which it can acquire up to 100% of the Shares outstanding. The price of Shares purchased under the Binding Offer shall not be lower than:

1. weighted average price of the Share determined based on the results of organized trading for six months preceding the date of sending the Mandatory Offer to the Bank of Russia;
2. the highest price at which DMFA JSC and its affiliates purchased (or assumed the obligation to purchase) Shares within six months preceding the date of submission to Detsky Mir PJSC of the Mandatory Offer.

Taking into account the completed programs for the acquisition of Shares of Detsky Mir PJSC announced in May 2023, it is expected that the price of Shares in the Mandatory Offer will not be less than 71.5 rubles per Share. As previously reported, in accordance with the decision of the Government Commission within the framework of the Mandatory Offer, non-resident investors from unfriendly states, if they take part in the Mandatory Offer, will be able to receive funds for the Shares sold by them only to accounts of type "C." The Company notes that participation in the Mandatory Shareholder Offer is a right, not a duty.

Shareholders may independently decide to participate in the Mandatory Offer taking into account publicly announced plans of the Company, their own investment strategy and current market conditions. 1 The list of unfriendly states is determined in accordance with the Order of the Government of the Russian Federation No. 430-r dated March 5, 2022. It is expected that after the completion of the Mandatory Offer, the Company can be liquidated subject to the adoption of the necessary corporate decisions. In this case, the shareholders of the Company, who for one reason or another did not sell the Shares, will be able to receive the property of the liquidated Company remaining after the completion of settlements with creditors (liquidation value), as part of the voluntary liquidation of the Company in proportion to the number of Shares owned by them.

At the same time, the Company's shares will be redeemed. The Company notes that the liquidation value that the shareholders of the Company will receive in the event of its voluntary liquidation may be lower than the price of Shares purchased by DMFA JSC on the basis of the Mandatory Offer. The company also plans to apply to the Ministry of Finance of the Russian Federation with a request to grant permission to pay funds remaining after settlements with creditors during liquidation to non-resident shareholders from unfriendly states, bypassing accounts of type "C." If such permission is obtained, shareholders will be able to use the funds received at their discretion without additional coordination with the regulators of the Russian Federation.

Opening 1000 stores

On September 1, 2023 To Moscow , the 1000th store of the chain was opened in the Raikin Plaza shopping center. The opening ceremony was attended by Maria Davydova Georgy Kononov retail trade Yuri Moscow Litvinov, Director General of Detsky Mir Group of Companies, Operations Director of Detsky Mir Group of Companies and Head of the Department for Infrastructure and Services Development of the City Department and Services.

The object with a trading area of ​ ​ about 900 square meters. m. Decorated in the classic concept of "Children's World" with a separate zone for serving buyers and issuing Internet orders. On the trading floor, convenient navigation with an emphasis on seasonal and most popular product groups, as well as store-specific promotions and sales. For the convenience of buyers, there is an infokiosk in the trading floor, where you can find out all the necessary information about the product, its current cost, the availability of goods of the desired size, as well as the final cost after applying the bonus card. To preserve the quality of food for the smallest in the hall, specialized refrigeration equipment is installed.

The store's product range exceeds 20 thousand items. More than half of the goods in almost all categories and price segments are represented by goods under the exclusive brands of Detsky Mir. For buyers, all key categories are presented: "Clothes and Shoes" - almost 7,000 items, "Stationery" - 1,500 items, "Toys" - 5500 items, categories "Nutrition" and "Feeding and Care" - 1000 items and 500 items of diapers.

The store is connected to all ecological initiatives of the Company. Buyers of a thousandth store have the opportunity to refuse to print cash checks and receive them for their own. email Also, the store has special containers, where anyone can hand over unnecessary clothes and shoes for further processing and receive a 15% discount on a new product in the "Clothes and Shoes" category. In addition, at the box office of the store, customers can take part in charity events of the Detsky Mir Foundation - purchase the necessary things for children's social institutions, as well as families and children in difficult life situations.

Our retail network covers the entire territory of Russia - the easternmost store of the Group is located in Petropavlovsk-Kamchatsky, the westernmost - in Kaliningrad. More than 250 million customers visit our stores annually. The trust of our customers is a great pride for us. We are working so that every parent of Russia can purchase everything necessary for their children in one place, and most importantly, at affordable prices, - commented Maria Davydova, General Director of Detsky Mir Group of Companies.

Detsky Mir launched a network of discounters with goods up to 99 rubles "More"

In August 2023, Detsky Mir launched a network of discounters with goods up to 99 rubles. New stores began work in Moscow and Dzerzhinsk. There are dishes, toys, clothes, stationery, etc. Read more here.

The court at the request of Otkrytie arrested the 5% stake in Goldman Sachs in Detsky Mir

On August 7, 2023, information appeared that the Moscow Arbitration Court, at the request of Otkritie Bank, seized a 5% stake in Detsky Mir, owned by the American Goldman Sachs Group. Read more here.

Children's world launches children's clothing chain based on purchased manufacturer Reima

In June 2023, it became known about the renaming of the former Russian "daughter" of the Finnish clothing manufacturer Reima after its sale to Detsky Mir. The new name of the company is Lassie (legal entity - LLC Lassi), according to the Unified State Register of Legal Entities. Read more here.

The founder of Korablik with a group of investors bought a 29.9% stake in the company from Pavel Grachev and Mikhail Stiskin

Alexey Zuev, who sold the Korablik chain of children's stores he founded in March 2023, did not rest for long from business. As it became known on May 2, 2023 from the message of Detsky Mir, Zuev, together with a consortium of investors, acquired a 29.9% stake in this largest Russian children's retailer from the former top managers of Polyus - Pavel Grachev and Mikhail Stiskin. Earlier, Grachev and Stiskin left the board of directors of Detsky Mir, and as a result of the transaction they completely left the company's capital.

Interestingly, before the Covid-19 pandemic greatly shoveled the entire retail market, including the children's market, Detsky Mir was the main senior competitor of Korablik, and in 2012 even grabbed its CEO.

Buying a stake in Zebra Toys

Detsky Mir bought a stake in toy manufacturer Zebra Toys. The deal was closed on March 13, 2023, according to data from SPARK-Interfax. Read more here.

Dmitry Klenov sold his share of 10% in the company

Detsky Mir left one of the major shareholders. Dmitry Klenov sold all his shares in the company to an unnamed party. The company said the buyer is not affiliated with the current major shareholders.

Klenov agreed to sell his 10% stake back in October 2022. But the deal closed on March 10, 2023 - after receiving all the necessary permits.

The exit from the capital of the company was in his plans to completely curtail his activities in Russia.

Purchase of 25% of Reima's business in the Russian Federation

On March 7, 2023, it became known about the sale of the Russian business of the Finnish manufacturer of children's clothing Reima. Among the co-owners of these assets was Detsky Mir - through DM Capital LLC, he owns a 25% stake. Read more here.

2022

Top 5 brands of children's clothing on the marketplace

On February 9, 2023, the Detsky Mir marketplace presented the top 5 Russian brands of children's clothing, which were most popular on the online platform in 2022. Read more here.

Launch of a project to recycle books in Krasnodar stores

On March 23, 2022, Detsky Mir Group of Companies announced the launch of a project to process books in Detsky Mir stores in Krasnodar.

The pilot project to collect books for disposal will last in 11 Detsky Mir stores in Krasnodar until April 30, 2022.

Anyone can bring books, give them to a store employee at the information desk and receive a coupon for a 10% discount on new books from the store's assortment. The discount can be used until April 30 by making a purchase in the Detsky Mir stores participating in the promotion.

All collected recyclables will be sent for further processing. Based on the results of the pilot, a decision will be made to expand geography.

List of Detsky Mir stores participating in the action:

• Krasnodar, st. Krylataya, d. 2. OZ Moll shopping center
• Krasnodar, st. Dzerzhinsky, d. 100. Shopping center "Red Square"
• Krasnodar, st. Uralskaya, d. 98/11. Shopping center "Galaxy"
• Krasnodar, pr-kt Chekistov, d. 1. Tabris Center Shopping and Entertainment Center
• Krasnodar, st. Krasnaya, d. 176. TK "City Center"
• Krasnodar, highway Neftyannikov, 42. Shopping center "Fairy Tale"
• Krasnodar, st. V. Golovaty, d. 313. Mall "Gallery"
• Krasnodar, st. Uralskaya, d. 79/2. SBS-Megamall shopping and entertainment complex
• Krasnodar, st. Stavropolskaya, d. 55. Mall "Royal City"
• Krasnodar, st. Zipovskaya, d. 34. Residential complex "Kubansky"
• Krasnodar, st. Im. Valeria Gassia, d. 2A

Launch of a new distribution center in Yekaterinburg for 3.2 billion rubles

In February 2022, Detsky Mir opened a distribution center with an area of ​ ​ 63.2 thousand square meters. m, in which it invested 3.2 billion rubles. The service area of ​ ​ the new facility will include the Urals, the Far East and Kazakhstan.

We are launching this distribution center, this is an important milestone for us. We will be able to deliver a very wide range of children's products faster. I hope that we will not only create almost a thousand jobs, but also strengthen the investment attractiveness of the region, - said the general director of Detsky Mir Maria Davydova at the opening ceremony.

With the launch of the center near Yekaterinburg, Detsky Mir plans to reduce transport costs for the delivery of goods from warehouse to stores by 30%. The center will serve 900 people. He will be able to process 35 thousand online orders every day. In total, the warehouse is designed to process 2.4 million product names.

As noted by TASS, by February 2022 in the Sverdlovsk region there is a problem of a shortage of warehouses for participants in the online sales market, which is actively developing, including in a pandemic. To solve the problem, a strategic project was adopted to create a Euro-Asian wholesale trade and logistics services in Yekaterinburg, which the city authorities approved until 2030. However, according to market participants referred to by the agency, the project should be implemented in a shorter time frame - until 2024.

Deputy Governor of the Sverdlovsk Region Dmitry Ionin noted that one of the advantages of the region is a unique position at the junction of regional and global Eurasian continental transport ties. The regional governor Yevgeny Kuyvashev pays special attention to the development of his own export-oriented cargo base, which allows the Sverdlovsk region to strengthen its position as a transport and logistics center and, in partnership with business, launch such large infrastructure projects, he stressed.^[1]

2021

Opening a small format store in Novovoronezh

On November 25, 2021, Detsky Mir Group of Companies opened the 100th anniversary store of the small format Detmir Mini in Novovoronezh at the address: ul. Cosmonauts, d. 16 A. The area of ​ ​ the store is 167 square meters. meters.

Detmir Mini combines a retail store, in the assortment of which there are about 2,000 most popular product items of all categories presented in the Detsky Mir network, and a point for issuing Internet orders, where you can either make an order using an electronic catalog or pick up a purchase issued through any online platform of Detsky Mir Group of Companies.

In the medium term, Detsky Mir Group of Companies will continue the active development of the network. The format of Detmir mini stores is constantly improving, it becomes more convenient for customers. In the near future, testing of new equipment and facilities with a larger area will begin on the network, which will significantly increase the range of products presented, "said David Melik-Kasumov, director of the Detmir Mini format.

Opening of stores in Tula and Semenov

On September 24, 2021, Detsky Mir Group of Companies announced the opening of the 40th Zoosaurus store and the 80th Detmir mini ultra-small store.

Anniversary stores were:

• "Zoosaurus" in Tula,
  • located in the shopping center "Sarafan" at the address: st. Puteyskaya, d. 5. The area of ​ ​ the store is about 100 square meters. m.

• "Detmir mini" in the city of Semenov (Nizhny Novgorod region),
  • located in the shopping center "Rus" at the address: st. 3 Communists, d.1A. The area of ​ ​ the store is about 150 square meters. m.

As part of the implementation of the strategy, Detsky Mir Group continues to expand the geography of the presence of its retail chains. In the first half of 2021, the Group opened 61 stores: 24 stores of the Detsky Mir chain, 33 stores of the Detmir Mini chain and 4 stores of the Zoosaurus chain.

In the network "Detsky Mir" - 929 stores in Russia, Kazakhstan and Belarus

As of June 30, 2021, the Group included 929 stores located in 378 cities and towns of Russia, Kazakhstan and Belarus. The total area of ​ ​ stores is 1,148 thousand square meters. m. Storage area - 146 thousand square meters. m.

Opening of 22 retail outlets

The Detsky Mir Group of Companies, an omnichannel operator of the trade in children's goods, announced the opening of 22 new retail outlets on June 9, 2021.

As part of the development of the omnichannel business model, Detsky Mir Group continues to expand the presence of the retail network and the PVZ Detmir format (a hybrid of a retail store and an order point with a total area of ​ ​ about 200 square meters).

Over the past month, the company has opened 8 stores of the Detsky Mir chain in, To Moscow,, To Kolomna To Penza Kyzyl,,, To Yoshkar-Ola Perm Artem, as well as 14 points of issue of orders in Teykov, Dyatkov, Belaya Kalitva,, Kimry Kireevsk, Gukov, Unech, Udomla, Krasnodar Desnogorsk, Vichuga Donetsk, Novoaleksandrovsk. The total area of ​ ​ new outlets exceeds 10,000 square meters. meters.

The company plans to open at least 230 stores of the traditional format of the Detsky Mir chain in Russia, Kazakhstan and Belarus by 2023, and also intends to launch 800 stores of the PVZ Detmir format by 2024. The range of the PVZ Detmir store consists of 2 thousand product items of all categories, which are represented in the Detsky Mir network, while the category "Consumer Goods" occupies most of the range.

Opening of shops in Minsk and Gomel

On May 13, 2021, Detsky Mir Group of Companies announced the opening of two stores in the Republic of Belarus.

These stores of the Detmir chain opened in Minsk and Gomel:

• Minsk
  in the Ocean shopping center at the address: Dzerzhinsky Avenue, 3B-4. The area of ​ ​ the store is more than 1,000 square meters. meters. The supermarket became the chain's fifth store in the city.
• Gomel
  in the shopping center "GIPPO" at the address: st. Kosareva, d. 18. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the chain's second store in the city.

As of May 2021, Detmir stores are represented by 15 stores in 9 cities: Minsk, Molodechno, Gomel, Mozyr, Mogilev, Bobruisk, Vitebsk, Grodno, Brest.

Opening of seven PVZ Detmir stores

On May 5, 2021, Detsky Mir Group of Companies (hereinafter referred to as Detsky Mir or Company, MOEX: DSKY) announced the opening of seven regular stores of the ultra-small format PVZ Detmir.

Stores of the ultra-small format "PVZ Detmir" began their work in a number of cities and settlements:

• Efremov
  at: st. Mira, d. 2G. The area of ​ ​ the store is more than 200 square meters. meters.
• village Vyselki
  at the address: Frunze Lane, 8. The area of ​ ​ the store is about 200 square meters. meters.
• Ilsky
  at: st. Pervomaiskaya, 77. The area of ​ ​ the store is about 200 square meters. meters.
• Kalininets
  in the shopping center "Dubki" at the address: p. 1Ye. The area of ​ ​ the store is about 200 square meters. meters.
• Svetlograd
  at: pl. 50 years of October, d. 8A The area of ​ ​ the store is more than 200 square meters. meters.
• Abundant
  at: st. Lenin, d. 115/2. The area of ​ ​ the store is about 200 square meters. meters.
• Yartsevo
  at the address: Metallurgov Avenue, 6A. The area of ​ ​ the store is about 200 square meters. meters.

Opening of stores in St. Petersburg and the Moscow region

On March 26, 2021, Detsky Mir Group of Companies, an omnichannel operator for the sale of children's goods, announced the opening of two regular stores of the chain.

Stores of the Detsky Mir chain opened in the Central and North-Western federal districts:

In St. Petersburg at the address: shopping center "Perekrestok," Enlightenment Avenue, 74. The area of ​ ​ the store is about 1,000 square meters. meters. The supermarket became the 41st store of the chain in the city.

In Ruza, Moscow Region at: mkrn. Severny, d.11A. The area of ​ ​ the store is about 800 square meters. meters. The supermarket became the chain's first store in the city.

The Detsky Mir network has a large range of products for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for early and school development of children and adolescents.

Opening of four stores of ultra-small format "PVZ Detmir"

On March 12, 2021, Detsky Mir Group of Companies, a multi-format operator for the sale of children's goods, announced the opening of four stores of the ultra-small PVZ Detmir format.

Stores of the ultra-small format "PVZ Detmir" began their work in a number of cities and settlements:

• Uglich - in the shopping center "Dobrynya" at the address: st. Starostina, d. 1A. The area of ​ ​ the store is more than 200 square meters. meters.
• Millerovo - at the address: Quarry Lane, 4. The area of ​ ​ the store is more than 200 square meters. meters.
• the village of Novopokrovskaya - at the address: st. Firstseva, d. 27 A. The area of ​ ​ the store is about 200 square meters. meters.
• Krasny Sulin - at the address: st. Motorists, d. 2 D. Store area - more than 200 square meters. meters.

As of March 12, the Detmir PVZ network is represented by 20 retail facilities located in the Moscow, Kaluga, Smolensk, Yaroslavl, Vladimir, Rostov regions, as well as the Krasnodar and Stavropol Territories.

"As part of the further expansion of the presence of the Detsky Mir Group of Companies network, it plans to open 800 stores of the ultra-small PVZ Detmir format, combining a retail store and an online order point," said Yulia Polikarpova, head of the external communications department of Detsky Mir Group of Companies.

2020

Revenue growth by 11%, to 142.88 billion rubles, profit - by 6.3%, to 7.77 billion rubles

In 2020, Detsky Mir's consolidated revenue amounted to 142.88 billion rubles, which is 11% more than a year earlier. The retailer's net debt increased by 2.7%, to 17.96 billion rubles.

Sales in the Detsky Mir online store in 2020 rose almost 2.5 times and reached 34.8 billion rubles. The company said that the share of online sales in the total revenue of the network in Russia increased 2.2 times compared to 2019 - up to 25.2%. The share of online orders issued in retail stores of the chain amounted to 82.2%.

For the entire 2020, more than 17.4 million orders were issued through the company's mobile application, more than 6 million downloads were recorded.

The revenue of the Detsky Mir network in Kazakhstan at the end of 2020 increased by 1.6% compared to 2019 and amounted to 3.8 billion rubles. Total comparable sales (like-for-like) of the Detsky Mir chain of stores in Russia and Kazakhstan increased by 3.9%:

• comparable number of checks decreased by 1.5%;
• the comparable size of the average check increased by 5.5%.

Comparable sales (like-for-like) of the Detsky Mir chain of stores in Russia increased by 4%:

• comparable number of checks decreased by 1.4%;
• the comparable size of the average check increased by 5.4%.

Detsky Mir's net profit in 2020 was 7.77 billion rubles, an increase of 6.3% on an annualized basis.

At the end of 2020, 71 new stores of the Detsky Mir chain were opened, as well as 12 stores of the PVZ Detmir chain and 10 stores of the Zoosaurus chain.

The message of Detsky Mir says that the company is engaged in the "digitalization" of most of the existing stores. The results of this work should be:

• combining all service areas into a single service center for buyers who have made an online order;
• Implementation of a separate storage area for online orders
• Adapt all assembly and order storage processes, including prepaid and marketplace goods.^[2]

Opening of 13 stores

On December 23, 2020, Detsky Mir Group of Companies announced the opening of 13 more chain stores.

Stores of the Detsky Mir Group of Companies opened their doors for customers in several cities of Russia:

• Ufa
  • in the shopping center "Planet" at the address: st. Enthusiasts, d. 20. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the eighth store of the chain in the city and the 18th in the Republic of Bashkortostan.

• Mytishchi
  • in the XL Family Outlet shopping center at the address: st. Communist, d. 1 Store area - more than 1000 square meters. meters. The supermarket became the chain's fifth store in the city.

• Moscow
  • in the shopping center "Festival" at the address: st. Golubinskaya, 28. The area of ​ ​ the store is about 1000 square meters. meters.

• Moscow
  • in the Galeon shopping center at the address: Leninsky Prospekt, 123V. The area of ​ ​ the store is about 1000 square meters. meters.

• Kemerovo
  • in the shopping center "Summer" at the address: Moskovsky Prospekt, 19. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the fourth store of the chain in the city and the 10th in the Kemerovo region.

• Chernogorsk
  • in the Yenisei shopping center at the address: st. Mira, d. 030. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the first store of the chain in the city and the third in the Republic of Khakassia.

• Krasnoyarsk
  • in the shopping center "Emerald City" at the address: st. TV, 1, p. 4. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the seventh store of the chain in the city and the 11th in the Krasnoyarsk Territory.

• Yakutsk
  • in the shopping center "Urasa Mall" at the address: st. Motorway 50 years of October, 6. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the chain's second store in the city.

• Moscow
  • in the shopping center "Evrospar" at the address: st. Yasenevaya, d. 30. The area of ​ ​ the store is more than 1000 square meters. meters.

• Moscow
  • in the shopping center "Evrospar" at the address: st. Elevator, 12 building 1. The area of ​ ​ the store is about 1000 square meters. meters.

• Lysva
  • in the shopping center "Lemon Mall" at the address: st. Lunacharsky, d. 17. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the first store of the chain in the city and the 12th in the Perm Territory.

• Azeris
  • in the shopping center "Magnum" at the address: st. Lenin, d. 35. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the chain's first store in the city.

• Novokuybyshevsk
  • in the shopping center "City Park" at the address: Pobedy Avenue, 1Zh. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the first chain store in the city and the 15th in the Samara region.

The Detsky Mir network has a large range of products for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for early and school development of children and adolescents.

Opening a store in Kalmykia

On December 16, 2020, Detsky Mir Group of Companies announced the opening of its first store in the Republic of Kalmykia.

The launch of the Detsky Mir chain store took place in the capital of the Republic of Kalmykia - Elista. The store is located in the Mega shopping center - a large shopping center in the city at the address: st. Lenin, d. 278A. The area of ​ ​ the store is more than 1400 square meters. meters, thereby "Detsky Mir" is one of the anchor tenants of the shopping center "Mega."

We are entering the next region for our network - the Republic of Kalmykia. Opening retail outlets, we not only provide residents of cities with high-quality children's goods at affordable prices, but also create jobs, as well as support orphanages and boarding schools in the regions as part of the charity event "Participate!," - said Yulia Polikarpova, head of the external communications department of the Detsky Mir Group of Companies.

The opened supermarket became the 100th store of the Detsky Mir chain in southern Russia.

Opening 12 stores

On December 14, 2020, Detsky Mir announced the opening of 12 chain stores.

Stores of the Detsky Mir Group of Companies opened their doors for customers in several cities of Russia, Kazakhstan and Belarus:

• Ulan-Ude
  • in the shopping center "Honey" at the address: 110 microdistrict, 11. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the chain's fourth store in the city.

• Nizhnevartovsk
  • in the Golden Park shopping center at the address: st. Lenin, d. 8. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the third store of the chain in the city and the 15th in the Khanty-Mansiysk Autonomous Okrug.

• Novoshakhtinsk
  • in the shopping center "TSUM" at the address: Lenin Avenue, 4. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the first chain store in the city and the 21st in the Rostov region.

• Irkutsk
  • in the shopping center "Electron" at the address: st. October Revolution, d. 1/3. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the fifth store of the chain in the city and the 11th in the Irkutsk region.

• Belebey
  • in the Essen shopping center at the address: st. Morozova, d. 9. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the first chain store in the city and the 17th in the Republic of Bashkortostan.

• Krasnoyarsk
  • in the shopping center "Siberian Town" at the address: st. Govorova, d. 57A. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the seventh store of the chain in the city and the 11th in the Krasnoyarsk Territory.

• St. Petersburg
  • in the Konstantinovsky shopping center at the address: Pushkin, st. Polkovaya, d. 1/25 letter A. The store area is about 1000 square meters. meters. The supermarket became the chain's first store in the city.

• Rybinsk
  • in the shopping center "Cosmos" at the address: st. Maxim Gorky, d. 10. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the second store of the chain in the city and the ninth in the Yaroslavl region.

• Nizhny Tagil
  • in the shopping center "Kit" at the address: Chernoistochinskoye highway, 49. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the fourth store of the chain in the city and the 16th in the Sverdlovsk region.

• Karaganda
  • in the Global Mall at 134th Accounting Quarter, p. 921. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the second store of the chain in the city and the 40th in the Republic of Kazakhstan.

• Temirtau
  • in the Alem shopping center at the address: 22A Metallurgov Avenue. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the first store of the chain in the city and the 41st in the Republic of Kazakhstan.

• Mazyr
  • in the Global Mall shopping center at the address: Druzhba Boulevard, 11A. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the first store of the chain in the city and the tenth in the Republic of Belarus.

The Detsky Mir network presents an assortment of goods for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for the early and school development of children and adolescents.

Plan for the construction of a distribution center near Yekaterinburg

On December 9, 2020, Detsky Mir Group announced the conclusion of an agreement with the developer PNK group on the construction of a distribution center on the territory of the A + class industrial park PNK Park Berezovsky near Yekaterinburg. Read more here.

Altus Capital will buy 29.9% of Detsky Mir shares

On November 30, 2020, Altus Capital announced the purchase of a 29.9% stake in Detsky Mir. The investment company decided to acquire 220.961 million of the retailer's securities at a price of 160 rubles apiece. The total amount of the transaction is estimated at 35.35 billion rubles.

According to Interfax, the price announced by Altus Capital is 27.9% higher than the value of Detsky Mir shares at the time of the closing of the Moscow Exchange on November 27, 2020, when the quotation rate amounted to 125.12 rubles. In addition, this price is 43.2% more than the weighted average exchange rate for six months (111.74 rubles) and 42.9% more than the price of the last SPO retailer in September (112 rubles).

Altus Capital has successful experience in transactions aimed at disclosing the fundamental value of companies in Russia. We see the long-term potential of investment in Detsky Mir, a leading player in the rapidly developing market for children's goods, "said Dmitry Klenov, managing partner of the investment company.

The offer of the investment company does not apply to owners of shares of Detsky Mir in the United States and dependent territories. The deadline for submitting applications for the conclusion of share purchase and sale agreements begins on December 3, 2020 and expires at 16.00 Moscow time on December 18.

The capitalization of Detsky Mir on the Moscow Exchange by the beginning of trading on the Moscow Exchange amounted to 93.47 billion rubles. Against the background of news about the deal with Altus, it grew by more than 10 billion rubles and amounted to 104.4 billion rubles as of 11:30 Moscow time. Shares of Detsky Mir at their peak rose in price by 15% to the closing price of trading on November 27 and reached 144.36 rubles.

The Altus Capital Foundation calls itself an independent investment company specializing in direct investments in fast-growing and undervalued projects in Russia and the CIS countries. According to SPARK-Interfax, by the end of November 2020, the fund is the largest owner (29.97%) of shares in Pharmacy Chain 36.6 PJSC. ^[3]

Launch of the 800th retail store

On November 27, 2020, Detsky Mir Group of Companies announced the launch of the 800th retail store.

The opening of the "Children's World" took place in Kaliningrad. This store with an area of ​ ​ 1700 square meters. meters is located in the MPSC "Baltic Mall" at the address: Primorsky Ring, ed. 2, becoming the sixth store in town and the chain's 800th.

Detsky Mir Group continues to actively expand its geography of presence throughout the country. For 9 months of 2020, the company opened 30 additional retail stores in the Russian Federation, by the end of the year intensive expansion will continue. The launch of outlets allows more of our customers to purchase everything they need at affordable prices, which is especially important in the run-up to the New Year. We strive to become even closer to each client, offering a large selection of goods and convenient ways to make purchases, - commented Yulia Polikarpova, head of the external communications department of Detsky Mir Group.

The Detsky Mir network presents an assortment of goods for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for the early and school development of children and adolescents.

Opening of stores in the cities of Kazan and Livny

On November 20, 2020, Detsky Mir Group of Companies, a retail operator for the sale of children's goods, announced the opening of two more chain stores.

Thus, the stores of the Detsky Mir Group of Companies opened their doors for customers in several cities of Russia:

• Kazan: in the shopping center KazanMall at the address: st. Pavlyukhina, 91. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the 11th store of the chain in the city and the 25th in the Republic of Tatarstan.
• Livny: in the shopping center "Jupiter" at the address: st. Gaidar, d. 2V. The area of ​ ​ the store is about 1000 square meters. meters. The supermarket became the first store of the chain in the city and the fourth in the Oryol region.

The Detsky Mir network has a wide range of products for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for early and school development of children and adolescents.

Opening of four stores of the ultra-small format "PVZ Detmir" in the Krasnodar Territory

On November 13, 2020, Detsky Mir Group of Companies announced the opening of four regular stores of the ultra-small format PVZ Detmir.

Stores of the ultra-small format "PVZ Detmir" began their work in a number of cities and settlements:

• Anapa

in the shopping center "Voley Grad" at the address: s. Vityazevo, Yuzhny Prospekt, 3B. The area of ​ ​ the store is about 150 square meters. meters.

• Pavlovskaya village

at the address: st. Gorky, d. 274. The area of ​ ​ the store is more than 200 square meters. meters.

• Primorsko-Akhtarsk

at the address: st. Proletarskaya, d. 113. The area of ​ ​ the store is about 200 square meters. meters.

• Leningradskaya village

in the shopping center "Solnechny" at the address: st. Cooperation, d. 141/2. The area of ​ ​ the store is more than 200 square meters. meters.

As of November 2020, the Detmir PVZ network is represented by nine retail facilities.

"Detsky Mir" opens stores of the ultra-small format "PVZ Detmir," combining a retail store and a point for issuing online orders, as part of the development of the company's omnichannel business model and the expansion of the network's presence.

Opening of stores in Magadan and Naberezhnye Chelny

On November 6, 2020, Detsky Mir Group of Companies, a retail operator for the sale of children's goods, announced the opening of two additional stores in the chain.

Stores of the Detsky Mir Group of Companies opened their doors for customers in Magadan and Naberezhnye Chelny:

Magadan: in the shopping center "Mega Magus" at the address: Main highway 2 km. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the chain's first store in the city.

Naberezhnye Chelny: in the Essen shopping center at 14 Yashlek Avenue. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the fifth store of the chain in the city and the 24th in the Republic of Tatarstan.

The Detsky Mir network presents an assortment of goods for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for the early and school development of children and adolescents.

Opening a store in Moscow in TPU "Shchelkovsky"

On October 29, 2020, Detsky Mir Group of Companies announced the opening of another store in the Moscow region.

The store of the Detsky Mir Group of Companies opened its doors for customers at TPU Shchelkovsky at 75 Shchelkovskoye Shosse. The area of ​ ​ the store is more than 1000 square meters. meters. The supermarket became the 204th store of the chain in the Moscow region.

The Detsky Mir network has a large range of products for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for early and school development of children and adolescents.

Opening of six stores in different regions of Russia

On September 18, 2020, Detsky Mir Group of Companies announced the opening of six additional chain stores in different regions of the Russian Federation.

The stores of Detsky Mir Group of Companies opened their doors for customers in the following cities:

• St. Petersburg
  • in the Gulliver shopping center at the address: Peat Road, 7 lit. B. The area of ​ ​ the store is about 1000 square meters. meters.

• Stavropol
  • in the Yusiti shopping center at the address: ul. Tukhachevsky, d. 25/1. The area of ​ ​ the store is about 1000 square meters. meters.

• Belorechensk
  • in the shopping center "City Center" at the address: st. Dundich, d. 2D. The area of ​ ​ the store is about 1000 square meters. meters.

• Timashyovsk
  • in the shopping center "Timashevsk" at the address: st. Bratskaya, d.165. The area of ​ ​ the store is more than 1000 square meters. meters.

• Ust-Ilimsk
  • in the shopping center "Rolby" at the address: st. Karl Marx, d. 20V. The area of ​ ​ the store is more than 1000 square meters. meters.

• Yakutsk
  • in the shopping center "Asia" at the address: st. Chernyshevsky, d. 74/8. The area of ​ ​ the store is about 1000 square meters. meters.

The Detsky Mir network presents an assortment of goods for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for the early and school development of children and adolescents.

Goldman Sachs became the largest shareholder of Detsky Mir

On September 15, 2020, it became known that Goldman Sachs became the largest shareholder of Detsky Mir. The American Investment Bank through affiliated structures received ownership of about 8.53% of the Russian company (5.56% owns GS International), which sells goods for children. Previously, the share was 4.53% (including 2.61% for GS International).

The basis of the transactions is indicated "the conclusion of another agreement, the subject of which is the exercise of rights certified by shares." There are a number of structures in the ownership chain, including Goldman Sachs Asset Management.

The title of the largest shareholder of Detsky Mir may be challenged by Capital Group: until the last SPO, its funds owned 5.64% of the company, while they participated in the penultimate placement. The size of Capital's stake after the final SPO has not yet been disclosed.

The transactions took place on September 4, 2020 - after the Detsky Mir SPO, as a result of which AFK Sistema Vladimir Yevtushenkov and the Russian-Chinese Investment Fund (RCIF) left the retailer's capital, and its free float increased to 100%. Vladimir Yevtushenkov was pleased with the deal.

We took the company to the stock exchange, increased its capitalization and now completely went out, - he said in a conversation with Forbes. - This is the first company fully traded on the stock exchange in Russia.

One large buyer did not have shares - mainly British and American investment funds bought. The majority on the board of directors will be independent directors.

For long-term investors, this situation creates a space for doubts about the sustainability of the business, says Alexey Kiriyenko, managing partner of Exante. However, according to him, it may well turn out that this is simply the desire of AFK Sistema and RCIF to capitalize profits from increased share prices due to abnormal demand from retail investors.^[4]

100% of shares in free float

In early September 2020, Detsky Mir became the first company in Russia with a 100% stake in free float. AFK Sistema and the Russian-Chinese Investment Fund (RCIF), created by the Russian Direct Investment Fund and the China Investment Corporation) announced the completion of the offer of a 25% stake in the retailer, as a result of which the parties will withdraw from the company's share capital.

AFK Sistema and the Russian-Chinese Investment Fund sell 184 million 750.001 thousand shares of the retailer, which corresponds to 25% + 1 share, and completely withdraw from the capital of Detsky Mir. AFK sells 20.38% of shares, RCIF - 4.62%. Taking into account the placement price - 112 rubles/share (equivalent to capitalization of almost 83 billion rubles), in total they, excluding commissions, will receive 20.7 billion rubles, including Sistema - 16.9 billion rubles. They are planned to be used for general corporate purposes, including debt repayment.

After the sale is completed, Detsky Mir will become the first Russian company to have all shares in free float. AFK Sistema President Vladimir Chirakhov called this a historical event.

Detsky Mir has become a success story for AFK Sistema: since the company's IPO on the Moscow Exchange in 2017, this asset has brought us more than 60 billion rubles in the form of proceeds from stock offerings and dividends, Chirakhov emphasized.

He recalled that in the early 1990s, Detsky Mir had about 20 stores, and now there are 784. The seller of goods for children went beyond Russia - to the markets of Kazakhstan and Belarus.

In June 2020, AFK Sistema and RCIF sold about 16% of Detsky Mir shares. The sale amount amounted to 11 billion rubles. AFK planned to use the funds received to pay off debt obligations. As of March 31, the total debt of the corporation amounted to 207.8 billion rubles.^[5]

Opening of the 203rd store in the Moscow region

On August 18, 2020, Detsky Mir Group of Companies, a retail operator for the sale of children's goods, announced the opening of another store in the Moscow region on August 18, 2020.

The supermarket is located in the Kvartal WEST shopping center at the address: Aminyevskoye Shosse, vl. 15. The area of ​ ​ the store is more than 1000 square meters. m. The supermarket became the 203rd store of the chain in the Moscow region.

The Detsky Mir network has a wide range of products for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for early and school development of children and adolescents.

Ability for advertisers to assess the impact of marketing on online and offline sales using myTarget

On July 20, 2020, Detsky Mir Group of Companies (hereinafter referred to as Detsky Mir or Company), a retail operator for the sale of children's goods, and Mail.ru Group, a holding in Russia by day audience, announced cooperation in the development of marketing O2O solutions. The companies will help advertisers launch conversion marketing campaigns and analyze their impact on real sales both online and offline. Read more here.

Magnit and Lenta apply markings in stores to protect against coronavirus

On March 25, 2020, it became known that Russian retailers began to apply markings in stores to maintain the distance between customers. Read more here.

2019: First shop in the Republic of Belarus

The first store of the retail chain with an area of ​ ​ 1690 square meters. m opened in February 2019 in Minsk, in the Euroopt shopping center at the address: st. Montazhnikov, 2.

In Belarus, Detsky Mir Group of Companies began its development under the Detmir brand. The new sound of the brand corresponds to the name of the site detmir.ru in Russia and detmir.by in Belarus, is based on the principles of the omnichannel business strategy and modern trends for simplifying and reducing the usual names.

The Detmir network in Belarus presents a wide range of goods for children from 0 to 12 years old: clothes and shoes, goods and food for newborns, toys for boys and girls, goods for the early and school development of children and adolescents - more than 30 thousand items in total. Along with world manufacturers, Belarusian goods are presented on the shelves of the Detmir store.

Detsky Mir has been cooperating effectively with Belarusian manufacturers since 2013. In Russia, the share of Belarusian products in the category "Baby food" is 35%. Belarusian toys, sports and outdoor goods, bulky goods and clothing, in particular, school uniforms and hosiery are in great demand According to the results of 2018, the volume of sold Belarusian goods in the Detsky Mir retail chain in Russia amounted to more than 400 million Russian rubles.

2017

Revenue growth + 21.9%

• The Group's consolidated unaudited revenue for 2017 increased by 21.9% to RUB 97.0 billion compared to RUB 79.5 billion in 2016;
• including online store revenue ^[6] grew by 67.0% to RUB 4.6 billion compared to last year;
• In accordance with the methodology used in the operating and financial statements of public product retailers in Russia, comparable sales (alternative like-for-like) Detsky Mir chain of stores in Russia increased by 7.2% ^[7]:
• a comparable increase in the number of checks was 12.2%;
• the comparable size of the average check decreased by 4.4%;
• In 2017, 104 ELC ^[8] were opened. ^[9] new Detsky Mir stores.

The Company developed most actively in the Moscow region, where the retail chain grew by 23 new stores. The total number of supermarkets of the chain at the end of 2017 in the Moscow region was 166, in St. Petersburg - 34.

41 stores of the Detsky Mir chain were opened in new cities for the Company Russia and. Kazakhstan The first supermarkets appeared in,,, Pervouralsk,, Michurinsk,, Gudermes,, Kaspiysk,, and Maykop Solikamsk Tuapse Neftekamsk many Salavat Pushkino other cities.

Detsky Mir continued its expansion in the Republic of Kazakhstan, opening 10 new supermarkets and almost doubling the retail chain in this country. Debut supermarkets appeared in Aktau, Zhanaozen, Atyrau, Petropavlovsk and Semey. The company expanded its network in Almaty, Uralsk, Shymkent and Kostanay. Thus, the Detsky Mir retail chain in Kazakhstan is represented by 22 stores in 12 cities. The growth of sales for comparable stores in tenge amounted to 25% in 2017.

The central children's store on Lubyanka changed the manager

ESE Rusland LLC will manage the Central Children's Store on Lubyanka, the Hals-Development company said in a statement.

The Hals-Development

company plans to strengthen the positioning of the CDM. According to the results of two years of work, we see opportunities to expand the target audience: the CDM is interesting not only for families and children, it is a real center of attraction for hundreds of thousands of Russian and foreign tourists who visit or prepare to visit our country during the World Cup in 2018. It is planned to open a variety of cafes and restaurants, souvenir shops for this audience, expand the capabilities of the viewing platform, "explained Leonid Kaprov, Senior Vice President of Hals-Development

.

2016

Key Shareholders and Assets of the Group

According to 2016 data, the main shareholders of the Company were AFK Sistema (74.6%), the Russian-Chinese Investment Fund (23.1%).

The group combined:

• national chain of stores "Detsky Mir,"
• luxury center "Children's Gallery" Yakimanka "and
• S-Toiz, one of the leading distributors of children's goods in Russia.

  

"Detsky Mir" before the IPO was estimated at 50-118 billion rubles

The largest Russian chain of stores for children "Detsky Mir" in preparation for the IPO on the Moscow Exchange was estimated at 50-118 billion rubles. ($0.844-2 billion), reports Reuters at the beginning of the year, citing informed sources.

It is clarified that Sberbank CIB valued the company at 98-118 billion rubles, and Credit Suisse - at 50-108 billion rubles.

As of December 31, 2016, the largest stakes are in AFK Sistema (72.57%) and the Russian-Chinese Investment Fund (RCIF, 23.1%). 1.79% of the shares belong to the general director of Detsky Mir Vladimir Chirakhov, 1.976% to managers and members of the board of directors of the company from among the top managers of AFK Sistema. All of them are selling shareholders. About 30% of the shares of Detsky Mir will be put up for sale. According to the results of the IPO, AFK Sistema will remain the owner of the controlling stake.

The organizers of the placement are Credit Suisse, Goldman Sachs International and Morgan Stanley, the bookrunners are Sberbank CIB and UBS Investment Bank. At the same time, the estimates of the issuer's capitalization (especially their lower limits) lie in a very wide range. According to Sberbank CIB analysts, Detsky Mir costs from 98 to 118 billion rubles, while Credit Suisse gives an estimate of 50-108 billion rubles. Morgan Stanley and UBS do not provide capitalization estimates in their reports.

Today, the shares of Detsky Mir look like an attractive asset. In recent years, the company has managed to significantly improve its performance, and in many respects this is the merit of CEO Vladimir Chirakhov, who took this post in 2012. Under his leadership, first of all, the management structure was optimized and a course was taken to reduce costs. Gradually it was possible to deal with all the accumulated problems - in relations with suppliers, pricing, ^[10]

As a result, starting in 2013, Detsky Mir's revenue grew by 30-36% per year, and gross profit - by 33-39% per year. The number of stores increased from 252 in 2013 to 525 in early 2017. For the nine months of 2016, the company's revenue amounted to 54.2 billion rubles (an increase of 41% year-on-year), net profit - 1.7 billion rubles (an increase of 2.6 times). According to preliminary estimates, for the whole of 2016, management expects revenue in the range of 79.2-79.8 billion rubles (an increase of 30% year-on-year). Detsky Mir Group of Companies in 2015 occupied 32% of the specialized retail market for children's goods in Russia and 13% of the market for children's goods in general (including hyper- and supermarkets). The closest competitor - the Korablik network - occupies a share 3 times less.

The immediate plans of Detsky Mir as the main player in the market for goods for children look promising. The Russian market as a whole is close to saturation. Therefore, first of all, Detsky Mir's plans imply further growth due to the ongoing market consolidation against the background of a consistent reduction in the share of unorganized trade, which is still high.

In addition, in 2017, the revenue of regional stores of the chain will grow faster than in the Moscow region - 26% versus 19% (according to preliminary calculations by Credit Suisse). On the one hand, this is explained by the gradual saturation of the capital's market and the development of Internet sales, and on the other hand, by the plans of Detsky Mir to develop the regional direction at an accelerated pace. For example, by 2020, the retailer plans to open 250 new stores, of which 175 are in the regions.

In general, the company's plans for the near future look realistic and attractive, and the likelihood of their successful implementation is currently not in doubt.

The initial placement of shares of Detsky Mir can be successful due to the correct choice of the moment of the transaction. The main reason is the positive dynamics of the Russian stock market, which over the past two years has been growing by an average of 25% per year. Support is also provided by positive forecasts for oil prices and, as a result, at the ruble exchange rate . It will also not forget that in the context of a recession of the domestic economy, the market for goods for children remains one of the few sectors that continue to grow. In addition, the company shows good reporting performance before the IPO. The company is plus an active development program, 98% brand recognition and a high level of customer loyalty, as well as the presence of investors from China who can attract capital from Asian financial markets for development.

2015

Detsky Mir Group of Companies is the largest retail operator in Russia for children's goods. The group combines the national retail chain Detsky Mir, the ELC chain of stores and the Detsky Mir and ELC online stores. As of December 31, 2015, the Detsky Mir chain of stores is represented by 381 stores in Russia and Kazakhstan, the ELC chain is represented by 44 stores in Russia. The total retail area of ​ ​ the group's stores is 491 thousand square meters. m.

Growth of consolidated unaudited retail revenue to RUB 59.5 billion (+ 32%)

• Preliminary consolidated unaudited retail revenue increased by 32% to RUB 59.5 billion compared to RUB 45.0 billion in 2014;
• Like-for-like sales of the Detsky Mir chain of stores increased by 12.4% (an increase in the number of checks by 3.7% and an increase in the size of the average check by 8.4%);
• The number of stores in the Group increased to 425 stores with a total trading area of 491 thousand square meters. In 2015, 104 new stores were opened: 103 new super and hypermarkets "Detsky Mir" and 1 new ELC store

The preliminary volume of consolidated unaudited retail revenue for 2015 increased by 32% to 59.5 billion. rubles Strong revenue growth was driven by strong comparable store sales, with LFL (like-for-like) accounting for 12.4%, primarily due to an 8.4% increase in average check size and 3.7% increase in check numbers. Against the background of the expected fall in the volume of the children's goods market in physical terms, the LFL growth in the turnover of the Detsky Mir network in units of goods amounted to 6%.

Opening 104 stores in a year

In 2015, Detsky Mir Group opened 104 new stores, which is a record figure in the history of the company. At the fastest pace, Detsky Mir developed in the Moscow region (33 new supermarkets), St. Petersburg and the Leningrad region (13 new supermarkets). Development continued in Kazakhstan, the opening of a new store in Astana.

Sale of a 23.1% stake in the company to the Russian-Chinese Investment Fund for 9.75 billion rubles

The result of many years of effective work of the Company was the closure by the main shareholder of AFK Sistema OJSC of the transaction on the sale of 23.1% of shares of Detsky Mir OJSC to the Russian-Chinese Investment Fund (hereinafter referred to as RKIF). The transaction amount amounted to 9.75 billion rubles.

The agreement was the first major transaction in the children's goods market with the participation of foreign capital, confirming the high interest of not only Russian, but also foreign investors in such an effective asset as Detsky Mir.

2012

At the end of 2012, the company's revenue under US GAAP amounted to 27.75 billion rubles, net profit - 456 million rubles

2011

In 2011, Detsky Mir opened 21 new stores, including the first store in Astana (Kazakhstan).

In June 2011, Gennady Levkin was appointed the new general director of the management company Detsky Mir - Center.

In June 2011, Detsky Mir approved a regional development program until 2013. In the next two years, Detsky Mir will open more than 50 new stores in dozens of regions of Russia. The total retail area of ​ ​ the network by 2013 will increase by more than 70 thousand square meters. m. The retail space of most stores will be from 1500 to 3000 sq.m., depending on the concept of the retail facility, its location and the expected flow of visitors. It is planned that new stores of the chain will open in an updated concept using modern trading technologies: new visualization elements and merchandising, improved equipment.

2010: Revenue of RUR 20 billion

The revenue of Detsky Mir Group in 2010 amounted to 20.023 billion rubles, net profit - 33 million rubles.

In 2011, Detsky Mir Group revenue grew by 18.6% due to the implementation of the regional development program and an increase in the number of visitors.

OIBDA of Detsky Mir decreased in full 2011 due to an increase in operating costs for opening stores in the regions, changes in pricing policy, optimization of the assortment and the launch of a loyalty bonus program.

Detsky Mir's debt burden increased by 3.4% compared to 2010 to US $125 million at the end of 2011, while net debt denominated in rubles decreased by more than 30%.

2000: Opening of Detsky Mir stores in Russian cities begins

In the summer of 2000, the management and new shareholders of Detsky Mir decided to create a national network. Thus Russia , stores under the sign "Detsky Mir" began to open in cities.

1947: Opening of the first store with the name "Detsky Mir"

The first store with the name "Detsky Mir" opened on September 8, 1947 in Moscow on Kirov Street (since 1990 Myasnitskaya Street) and was a branch of TSUM.

Notes