X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Q4 2023 Earnings Presentation
29 slides from X5 Corporate Center's earnings presentation, 2024
Slide 1: Investor Presentation
UWscGroup Investor Presentation
Slide 2: Disclaimer
2 Disclaimer This presentation does not constitute or form part of and This presentation includes statements that are, or may The information and opinions contained in this should not be construed as an advertisement of be deemed to be, “forward- looking statements”, with document are provided as at
Slide 3: Focus on the fastest-growing market segment
3 Focus on the fastest-growing market segment Diverse grocery business with growth potential across convenience, hard discounter and online segments 2023 2024E 2 p.p. 26% 28% 30% 31% 1 p.p. 16% 17% 17% 1 p.p. 15% 6% 5% 2 p.p. 5% 4% 57% 1 p.p. 58% 1 p.p. 1 p.p. share of grocery market share of grocer
Slide 4: Market consolidation is the key source of growth for the top players
4 Market consolidation is the key source of growth for the top players Potential for growth in the market shares of top-5 players* Continued shift to modern trade and the growing role of nationwide players 76% 75% Globus Svaz 1.7% 7.0% 21% 22% 20% 19% Aldi 24% Tesco 13.3% 9.5% 62% 61% Auchan 57% 4.2
Slide 5: Macro-trend: Online
5 Macro-trend: Online market, RUB bln MARKET GROWTH DRIVERS TRENDS IN CONSUMER PREFERENCES Online +33.5% +34.2% E-grocery share continues to grow, current run-rate estimates twofold growth by 2026. 2,918 2,979 Regions is a key growth The option to buy potential online is becoming a standard, however
Slide 6: X5 is a leading Russian food retailer: FY 2023 Highlights
6 X5 is a leading Russian food retailer FY 2023 Highlights #1 Russian 14.6% market share 24,472 stores >372 ths food retailer by revenue vs 9.5% in 2017 in 72 Russian regions employees +14.8% y-o-y Loyal 77.0 mln 34.9 mln 20 mln customer base active loyalty card users MAUs of X5 digital services ave
Slide 7: X5 has a leading position in offline
77 X5 has a leading position in offline TOP 10 Russian grocery retailers TOP 10 Russian e-grocery players Company Market share in 2023 Company Market share in 2023 1 14.6% 1 15.9% 2 10.6% 2 14.6% 3 6.1% 3 13.2% 4 2.3% 4 10.8% 5 1.6% 5 9.5% 6 1.2% 6 6.9% 7 1.2% 7 5.7% 8 1.0% 8 4.2% 9 1.0% 9 3.4% 10 0
Slide 8: X5 businesses
73 X5 businesses Dark kitchens (incl. 3 franchisees) 1,500 Hard discounter stores Loyalty programme 21,308 Proximity stores Express delivery 8,515 Stores 41 Dark stores Digital 26,058 Pickup points and parcel lockers Subscription service 3 972 610 Large dark stores Supermarkets Stores
Slide 9: Pyaterochka: Proximity stores
9 Pyaterochka Proximity stores 79 % Share of revenue (FY 2023) 21,308 >4 THS 391 SQM Stores SKUs Average selling space
Slide 10: Perekrestok: Supermarkets
10 Perekrestok Supermarkets 13 % Share of revenue (FY 2023) 972 11–14 THS 1,116 SQM Stores SKUs Average selling space
Slide 11: Chizhik: Hard discounter stores
11 Chizhik Hard discounter stores 4% Share of revenue (FY 2023) 1,500 750-800 295 SQM Stores SKUs Average selling space
Slide 12: Track record of strong operational performance…
12 Track record of strong operational performance… Net retail sales dynamics, RUB bln Selling space, ths sqm 12.1% CAGR 2019-2023: 16.1% 20.6% CAGR 2019-2023: 9.0% 10,206 9,107 3,139 8,410 7,840 2,602 7,239 2,200 1,973 1,728 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 LFL sales, % y-o-y growth
Slide 13: …supported by robust profitability
13 …supported by robust profitability Revenue CAGR exceeding 16% in 2019-23 Adj. ROIC2 has increased by 12 p.p. since CAGR 2019-2023: 16.1% 2019 20.8% 26.7% 3,146 2,605 2,205 1,978 19.2% 1,734 17.1% 16.1% 14.5% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Adj. EBITDA margin1 consistently above
Slide 14: Strategic Priorities
14 Strategic Priorities No. 1 by market share growth in food retail Maintaining Pyaterochka’s growth Expanding into new regions Maintaining a strong customer focus momentum We are expanding into new regions by striking We continue to apply a customer-journey lens We are maintaining Pyaterochka’s hig
Slide 15: Building X5’s presence at each step of the customer journey
15 Building X5’s presence at each step of the customer journey X5 is strategically focused on X5 retail chains and alliances consistently expanding its Wholesale distributor Для бизнеса + Okolo small format franchise presence at each step of the Single express delivery platform customer journey: Sub
Slide 16: Growth and profitability supported by improving sales density
16 Growth and profitability supported by improving sales density Maintain sales density leadership in proximity segment in key geographies (Moscow and St Petersburg) Unit: ’000 RUB/sqm (annualised) Overall +9.2% Moscow & Moscow region +5.1% 328 319 432 312 421 305 411 413 414 300 Q4 2022 Q1 2023 Q2
Slide 17: X5 updated its strategic ESG goals to 2025
17 X5 updated its strategic ESG goals to 2025 Planet Health Employees Communities -15% 80% 10% 2025 goal: 2025 goal: 2025 goal: 2025 goal: Reduce GHG emissions (Scope 1 and 2) intensity Increase sales of healthy Grow the number of beneficiaries of food aid Maintain an employee engagement rate of at
Slide 18: Q4 2023 Results
Ueeroup Q4 2023 Results
Slide 19: Double-digit top-line growth supported by strong LFL sales dynamics…
19 Double-digit top-line growth supported by strong LFL sales dynamics… Net retail sales1 Traffic, mln customers Net selling space (eop) 24.7% 12.6% 12.1% 22.9% 10.4% 19.2% 8.3% 7.9% 16.5% 15.7% 870 1,870 1,951 1,880 10,206 788 1,648 1,595 9,860 765 9,541 698 689 9,203 9,107 Q4 2022 Q1 2023 Q2 2023
Slide 20: …combined with stable profitability
20 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 22.9% 25.0% 19.2% 16.1% 15.2% 18.0% 18.6% 881.2 17.0% 17.3% 16.0% 772.0 796.2 705.2 696.4 15.1% 163.9 137.9 129.4 131.0 132.7 126.7 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2023 pre-IFRS
Slide 21: Q4 2023: Adjusted SG&A expense analysis
21 Q4 2023: Adjusted SG&A1 expense analysis Q4 2023 analysis Key Q4 2023 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): the indexation of salaries for store employees. 18.6% 18.0% 64 b.p. Lease expenses: a positive operating leverage effect for fixed 21 b
Slide 22: X5 capital expenditures
22 X5 capital expenditures Capex breakdown, 2023 Capex dynamics by year, RUB bln 5.5% 16% 4.7% 4.7% 4.5% 4.4% 35% 148.4 New store openings 3.1% Refurbishments 8% 97.9 Logistics 89.9 148.4 RUB bln 83.7 81.1 82.0 +80.9% y-o-y IT 10% Maintenance Other, including new business 2018 2019 2020 2021 2022 20
Slide 23: X5 debt structure
23 X5 debt structure Debt profile Debt portfolio maturity RUB mln 31 Dec 2023 31 Dec 2022 100% 44% Total debt 228,229 234,532 Short-term debt 100,833 87,146 % of total debt 44.2% 37.2% 28% Long-term debt 127,396 147,386 % of total debt 55.8% 62.8% 28% Net debt (pre-IFRS 16) 187,454 191,277 31 Dec 20
Slide 24: Appendix
Ueeroup Appendix
Slide 25: Pyaterochka – key format highlights (Q4 2023)
25 Pyaterochka – key format highlights (Q4 2023) Key results Operating highlights CVP 21,308 stores +13.0% +3.0% 4,000 391 sqm +11.2% y-o-y LFL sales LFL traffic SKUs average selling space 686 RUB bln +9.6% 1,581 mln 70% 85% Net retail sales +22.3% y-o-y LFL ticket customer visits loyalty card Loyal
Slide 26: Perekrestok – key format highlights (Q4 2023)
26 Perekrestok – key format highlights (Q4 2023) Key results Operating highlights CVP 972 stores +14.4% +3.0% 11-14 ths 1,116 sqm +0.1% y-o-y LFL sales LFL traffic SKUs average selling space 120 RUB bln +11.0% 173 mln 77% 90% LFL ticket customer visits loyalty card loyalty card Net retail sales +14.
Slide 27: Chizhik – key format highlights
27 Chizhik – key format highlights 250–300 sqm ~10–11 RUB mln 750-800 SKU of store selling space net capex per store (excl. VAT) in the assortment EDLP 6 77% price strategy employees per store share of own brand assortment Q4 2023 results 1,500 3x 42 RUB bln 3х 616 RUB 447 RUB / sqm Stores Net retai
Slide 28: Express delivery
28 Express delivery Business model overview Key operating metrics Q4 2023 Order made by customer via GMV RUB 37.9 bln mobile app Orders per day 257.8 ths Average ticket RUB 1,572 Order received at the nearest store Stores 8,515 Click to delivery 50–60 min Order assembled at the store by in-store sta
Slide 29: X5 Investor Relations
X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13-147