OJSC DETSKY MIR INCREASED NET INCOME BY 7.2% TO RUB 657 MLN FOR 9 MONTHS 2015

Transcription

1 OJSC DETSKY MIR INCREASED NET INCOME BY 7.2% TO RUB 657 MLN FOR 9 MONTHS Nvember Russia, Mscw. OJSC Detsky Mir (hereinafter referred t as "Detsky Mir" r "the Cmpany"), Russia's largest children's gds retailer, annunces its unaudited financial results under US GAAP fr 9M 2015 ended n 30 September KEY UNAUDITED FINANCIAL AND OPERATING RESULTS FOR 9M 2015 OIBDA 1 increased frm RUB mln in the first 9 mnths f 2014 t RUB mln in 9 mnths f 2015, and OIBDA margin amunted t 7.4% Revenue grew by 34.1% cmpared t 9M 2014, and reached RUB 40.0bn The Cmpany pened 49 new stres, including 48 Detsky Mir stres and 1 ELC stre Selling space reached 435,000 sq m in 9M 2015 Like-fr-like sales gained 13.8% 2 (with the number f checks grwing by 4.3%, and the average check grwing by 9.1%) Grss prfit grew by 26.7% in 9M 2015 t RUB 13.8bn; grss margin amunted t 34.6% Selling, general and administrative expenses t revenue rati fell frm 29.1% t 27.3% due t increased perating efficiency and measures taken t reduce csts Net incme grew by 7.2% t RUB 657 mln cmpared t the same perid f the last year The Cmpany s net debt ttaled RUB 16.5 bn as f 30 September The increase in net debt frm the beginning f 2015 is due t the active develpment f the cmpany's retail chain, the cnstructin f a new distributin center and ther investment prjects KEY UNAUDITED RESULTS FOR THE 12 MONTHS ENDED SEPTEMBER OIBDA increased by 36.6% t RUB 5.6bn; OIBDA margin grew frm 9.8% t 10.0% Revenue grew by 33.3% YY t RUB 55.6bn The Cmpany pened 74 new stres, including 71 DM stres and 3 ELC stres Selling space grew by 20.2%, frm 362,000 sq m t 435,000 sq m Grss Prfit increased by 26.3% t RUB 20.2bn; grss margin declined slightly frm 38.3% t 36.3% Net incme increased by 20.8% t RUB 2.1bn; net incme margin amunted t 3.8% 1 OIBDA is a nn-gaap measure, which is calculated n the basis f the US GAAP financial statements. OIBDA is defined as ttal revenue minus cst f sales and selling, research and administrative csts 2 LFL measures is calculated n the basis f peratins f Detsky mir branded stres nly. The Detsky Mir stres that are included in like-fr-like cmparisns are thse stres that have been pen during the entirety f the tw years fr which the like-t-like cmparisn is being made. Fr example, the like-fr-like cmparisn f retail sales between 9 mnths 2015 and 9 mnths 2014 wuld include revenue f all Detsky Mir stres that were pened during the curse f 2013 and that were in peratin during the entirety f 2014 and 9 mnths Like-fr-like revenue is calculated n the basis f stre revenue in rubles (including VAT but excluding returns) 1

2 Vladimir Chirakhv, CEO f Detsky Mir said: "Despite the decline in cnsumer demand in the cuntry, Detsky Mir keep high grwth rates f key perfrmance indicatrs f business. The Cmpany's revenue increased by mre than 34,1% cmpared t the same perid f last year. The main factr f high dynamics f revenue was a bst in sales in existing stres, which is reflected in a like-fr-like grwth f 13.8%. The significant grwth f like-fr-like sales is caused by increasing f the average check by 9.1%, while the number f purchases made (number f checks) in like-fr-like stres increased by 4.3%. OIBDA demnstrated an increase f 30% t RUB mln. This result was btained including by the peratinal imprvements implemented by the Cmpany's management. Imprving the efficiency f business prcesses, ptimising the prduct matrix, and revising the retail cncept, and the transitin t a single SAP platfrm reduced the share f sales, general and administrative csts as a percentage f revenue frm 29% t 27%. The Grup cntinued t develp dynamically, pening new stres. Fr 9 mnths f 2015, we pened 48 DM stres and 1 stre ELC, 19 f them - in the Mscw regin. At the end f September 2015, DM stres are represented in 136 cities f Russia and Kazakhstan. One hundred stres will be pened in dzens f cities acrss the cuntry in FY E-cmmerce has a significant impact n business develpment f Detsky Mir. Revenue f e-cmmerce withut in stre- pick up increased by 2 times cmpared t the same perid f last year and amunted t RUB 496 mln. Fr 9 mnths f 2015 OIBDA amunted t RUB 2.8 mln cmpared t the lss f RUB 15.0 mln in the last year. 2

3 UNAUDITED FINANCIAL AND OPERATING RESULTS FOR 9 mnths In RUR mln 9 M M 2015 % change Number f stres, units ,0% Detsky Mir stres ,8% ELC stres ,3% Selling space (ksqm) ,2% Revenue ,1% % LFL revenue grwth 14,2% 13,8% Grss prfit ,7% Grss margin,% 36,7% 34,6% SG&A ,8% % f revenue 29,1% 27,3% OIBDA ,9% Margin, % 7,6% 7,4% Net incme ,2% Margin,% 2,1% 1,6% 3 The number f stres is made fr Detsky Mir stres excluding Yakimanka Children's Gallery 3

4 UNAUDITED FINANCIAL RESULTS FOR THE TWELVE MONTHS ENDED SEPTMEBER In RUS mln LTM-SEP'14 LTM-SEP'15 % change Number f stres, units ,0% Detsky Mir stres ,8% ELC stres ,3% Selling space (ksqm) ,2% Revenue ,3% % LFL revenue grwth Grss prfit ,3% Grss margin,% 38,3% 36,3% SG&A ,7% % f revenue 28,5% 26,2% OIBDA ,6% Margin, % 9,8% 10,0% Net incme ,8% Margin,% 4,1% 3,8% Fr additinal infrmatin cntact: *** Nadezhda Kiseleva Head f PR + (495) , ext Cell: +7 (903) nkiseleva@detmir.ru Sergey Levitskiy Head f M&A and Business Valuatin + (495) , ext Cell: slevitskiy@detmir.ru The Detsky Mir Grup is the largest children's gds retailer in Russia. The Grup includes the natinal-wide retail chain Detsky Mir, the ELC retail chain, and tw nline stres (DM and ELC). As f 30 September 2015, Detsky Mir's chain is represented by 326 stres in Russia and Kazakhstan. The ttal selling space f the chain is 435 K sq.m. Detsky Mir's principal sharehlder is Sistema JSFC. Websites: Sistema is a publicly-traded diversified Russian hlding cmpany serving ver 100 millin custmers in the sectrs f telecmmunicatins, high technlgy, radi and space technlgy, banking, retail, mass media, turism and healthcare services. Funded in 1993, the cmpany reprted revenues f RUB 164 billin fr IIQ 2015 and ttal assets f RUB 1.2 trillin as June 30, Sistema s glbal depsitry receipts are listed under the symbl SSA n the Lndn Stck Exchange. Sistema s rdinary shares are listed under the AFKS ticker n the Mscw Stck Exchange. Website: Sme f the infrmatin in this dcument may cntain prjectins r ther frward-lking statements regarding future events f the Detsky Mir Grup and Sistema JSFC. Such statements cntain phrases like "expected", "estimated", 4 The number f stres is made fr Detsky Mir stres excluding Yakimanka Children's Gallery; Financial results are presented, including f dispsal f Yakimanka building in

5 "intended", "will", "culd", negatives f such statements, and ther similar expressins. We wuld like t warn yu that such statements are assumptins nly and the actual curse f events and their results may differ significantly frm such statements. We d nt intend t revise such statements t reflect events and circumstances ccurring after the date heref r t reflect the ccurrence f unanticipated events. Due t numerus factrs, the actual results f the Detsky Mir Grup and Sistema JSFC may differ significantly frm thse stated in ur assumptins and prjectins. Such factrs may include general ecnmic cnditins, cmpetitive envirnment in which we perate, risks related t the peratins in Russia, rapid technlgical r market changes in ur sphere f business, and many ther risks directly related t the Detsky Mir Grup and Sistema JSFC and their activities. Freign Currency Translatin The Cmpany fllws a translatin plicy in accrdance with ASC 830, Freign Currency Matters. Management has determined that the functinal currency f the Cmpany and its Russian subsidiaries is the Russian Ruble ( RUB ). The functinal currencies f the Cmpany s German and Kazakhstan subsidiaries are the Eur and Tenge, respectively. 5