PowerPoint Presentation · Detsky Mir took market share away from other channels Notably, Detsky...

3

3

4

6

7

1

115

35

6731

25

70

20

35

B

Online Segment Revenue (RUB MM)

0

1

2

3

4

5

6

7

8

9

10

0

20

40

60

80

100

120

140

160

180

3

Launch of new DC in the Ural region will be considered in 2020

A

B

C

D

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

18

3

1

1,0%0,6%

1,0% 0,6%

1,2% 0,9%

1,2% 0,9%

2

1

1 2

−

−

3

−

−

−

−

−

−

−

1

2

1

•

• 2

2

2

• 4

• 43

• 1

•

• 5

• 4

•

• 6

2

14,6% 15,0% 14,5% 14,2% 15,3%

24,5% 22,1% 20,7% 20,3% 18,4%

16,8% 22,1% 26,5% 26,0% 28,9%

18,9% 17,8% 17,1% 17,8% 15,4%

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

FY2016 FY2017 FY2018 H1 2018 H1 2019

Supermarkets Hypermarkets Detsky Mir Standalone children's stores Minimarkets

32,3% 34,4% 36,5% 36,6% 37,2%

18,1% 17,5% 16,3% 16,0% 15,8%

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

26,2% 23,8% 24,2% 23,8% 24,2%

FY2016 FY2017 FY2018 H1 2018 H1 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 share of the diapers market 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 “bestseller” SKUs

Detsky Mir took 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 33% to 15.0% in H1 2019

(vs 2016)

Detsky Mir’s Diapers market share

increased by 1.7x to 28.9% in H1 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.

+0.7 p.p.

-1.3 p.p.

+0.6 p.p.

-0.2 p.p.

+2.9 p.p.

-2.4 p.p.

-1.9 p.p.

+0.3 p.p.

+1.1 p.p.

+0.4 p.p.

1Q

'15/

1Q

'14

2Q

'15/

2Q

'14

3Q

'15/

3Q

'14

4Q

'15/

4Q

'14

1Q

'16/

1Q

'15

2Q

'16/

2Q

'15

3Q

'16/

3Q

'15

4Q

'16/

4Q

'15

1Q

'17/

1Q

'16

2Q

'17/

2Q

'16

3Q

'17/

3Q

'16

4Q

'17/

4Q

'16

1Q

'18/

1Q

'17

2Q

'18/

2Q

'17

3Q

'18/

3Q

'17

4Q

'18/

4Q

'17

1Q

'19/

1Q

'18

2Q

'19/

2Q

'18

DetskyMir

X5 Magnit Lenta Okey M.VideoGroup

−

−

−

−

−

−

−

(-110bps H1 '19 vs H1 '18)

(+30bps H1 '19 vs H1 '18)

H1 '18 H1 '19

6,108 2,864 3,289)

32