X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — H1 2015 Earnings Presentation
26 slides from X5 Corporate Center's earnings presentation, Aug 13, 2015
Slide 1: Q2&H1 2015 Financial Results Conference Call
Q2&H1 2015 Financial Results Conference Call Stephan DuCharme, X5 CEO Elena Milinova, X5 CFO Moscow, Russian Federation 13 August 2015 X5 RETAIL GROUP
Slide 2: Disclaimer
DISCLAIMER 2 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL his presentation does not or otherwise) for any loss howsoever arising the Securities on the territory of the Russian T constitute or form part of and from any use of this presentation or any Federation at present. No prospectus for should no
Slide 3: Delivering Growth
3 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL DELIVERING GROWTH
Slide 4: Key Achievements for H1 2015
KEY ACHIEVEMENTS FOR H1 2015 4 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Strong Solid 50% of Pyaterochka organic growth financial results stores under new concept NPS of Perekrestok Positive traffic Successful demonstrates solid at Karusel integration of 103 growth stores Pokupochka stores New DC
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS 5 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL NET RETAIL SALES (mln RUB) TRAFFIC (mln, customers) NET SELLING SPACE (mln sq. m.) 198,623 615 2,844 +15.6% 532 +28.1% +7.9% 2,296 493 155,109 2,048 133,076 +16.6% Q2 2013 Q2 2014 Q2 2015 Q2 2013 Q2 2014 Q2 2015 Q2 2013 Q2 2014 Q2
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS 6 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL TOTAL REVENUE (mln RUB) GROSS PROFIT (mln RUB, %) SG&A (mln RUB, %) 24.5% 24.1% 20.8% 19.8% 199,883 20.4% 23.7% +28.5% 48,075 155,579 +26.1% (39,666) +22.7% 133,449 38,110 +18.9% (32,316) 31,573 (27,178) +16.6% +20.7% Q2 2013 Q2 201
Slide 7: Net Retail Sales Summary
NET RETAIL SALES SUMMARY 7 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Q2 2015 NET RETAIL SALES BREAKDOWN, RUB MLN 37,848 (335) 3,327 198,623 2,421 252 155,109 Q2 2014 Q2 2015 KEY DRIVERS Net retail sales grew by 28.1% due to an increase in new selling space and improved LFL sales Pyaterochka’s str
Slide 8: Expansion Summary – Q2 2015
EXPANSION SUMMARY – Q2 2015 8 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL NET SELLING SPACE, th.sq.m. NET SELLING SPACE ADDED, th.sq.m. ● Strong organic opening programs at Pyaterochka and Perekrestok 2,844 30-Jun-15 ● Increased total store base to 496 48 5,971 stores by Q2 2015 end ● Continued inv
Slide 9: Improving LFL Results
IMPROVING LFL RESULTS 9 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL X5 LFL RESULTS TOTAL 15.6% BASKET 13.0% 9.5% 8.1% TRAFFIC 2.2% (1.2%) Q2 2014 Q2 2015 Q2 2014 Q2 2015 Q2 2014 Q2 2015 X5 LFL SALES GROWTH,% X5 LFL TRAFFIC GROWTH,% X5 LFL BASKET GROWTH,% 17.1 15.6 13.3 13.7 11.6 12.0 13.0 9.5 9.0 8
Slide 10: EBITDA Breakdown
EBITDA BREAKDOWN 10 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL 11,398 14,389 mln RUB +26.2% mln RUB 7.3% (0.44%) 0.17% 0.16% 7.2% Q2 2014 Gross Staff Other Q2 2015 EBITDA margin costs EBITDA ● Decline in gross margin due to higher shrinkage on the back of higher inventory volumes to support the Co
Slide 11: Capital Expenditures Overview
CAPITAL EXPENDITURES OVERVIEW 11 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Q2 2015 CAPITAL EXPENDITURES– Q3 2014 — Q2 2015 CAPITAL EXPENDITURES 16,826 RUB MLN Q3 2014 Q4 2014 Q1 2015 Q2 2015 267 stores (6,939) 39% Refurbishments (7,942) 2% Logistics (17,591) (16,826) 3% Maintenance, IT & Other 56
Slide 12: Debt Structure
DEBT STRUCTURE 12 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL DEBT PROFILE DEBT PORTFOLIO MATURITY 46% RUB mln 30 Jun 2015 31 Dec 2014 36% Total Debt 129,029 130,986 Short-Term Debt 30,779 15,834 18% % of total debt 23.9% 12.1% 1% 2015 2016 2017 2018 Long-Term Debt 98,250 115,152 % of total debt 76
Slide 13: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS 13 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Y-o-Y RUB MLN Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2015 Q2 2015 +/( - )% Revenue 155,579 152,539 181,588 633,873 182,725 199,883 28.5% Net retail sales 155,109 152,028 180,894 631,930 182,053 198,623 28.1% COGS (117,469) (1
Slide 14: Condensed Balance Sheet
CONDENSED BALANCE SHEET 14 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL RUB MLN 30 June 2015 31 December 2014 +/( - ) +/( - )% Total current assets 91,875 110,509 18,634 (16.9%) Cash & cash equivalents 4,532 25,623 (21,091) (82.3%) Inventories 50,400 47,084 3,316 7.0% Total non-current assets 257,15
Slide 15: Cash Flow Highlights
CASH FLOW HIGHLIGHTS 15 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL RUB MLN Q2 2015 Q2 2014 +/( - ) +/( - )% Net cash generated from 6,843 12,776 (5,933) (46.4%) operating activities Net cash from operating activities 15,384 12,201 3,183 26.1% before changes in working capital Change in Working Cap
Slide 16: Operational Highlights July 2015
OPERATIONAL HIGHLIGHTS JULY 2015 16 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL NET RETAIL SALES (mln RUB) TRAFFIC (mln, customers) NET SELLING SPACE (mln sq. m.) 2,924 210 +15.4% +26.2% 66,377 182 2,317 51,799 +28.1% July 2014 July 2015 July 2014 July 2015 July 2014 July 2015 LFL SALES (%) LFL TRA
Slide 17: Operational Review
17 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL OPERATIONAL REVIEW 13.3 17.1 15.6 11.6 8.1 6.3 -1.7 3.9 -0.4
Slide 18: X5 Regional Presence
X5 REGIONAL PRESENCE 18 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Q2 2015 NET RETAIL SALES NUMBER OF STORES BY REGION as of 30.06.2015(1) BY REGION 16% NORTH REGION VOLGO — VYATSKY REGION 54% Pyaterochka: 98 Pyaterochka: 410 Perekrestok: 32 Karusel: 9 NORTH-WEST REGION 8% St. Petersburg Pyateroch
Slide 19: X5 Distribution Capabilities
X5 DISTRIBUTION CAPABILITIES 19 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL WAREHOUSE SPACE (1) DISTRIBUTION CENTER (DC) LOCATIONS Region Space, th. sq. m. # of DCs Central 359,7 13 5 North-West 82,8 5 St. Petersburg Volgo-Vyatsky 41,9 2 Ural 58,7 5 Central- 13 74,5 5 Chernozemny Povolzhsky 71,7 3
Slide 20: Key Formats
20 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL KEY FORMATS
Slide 21: Pyaterochka Summary
PYATEROCHKA SUMMARY 21 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL YOUR NEIGHBORHOOD STORE FOR DAILY SHOPPING NEEDS ● 5,273 stores ● Q2 2015 Net retail ●A verage check: 335 RUB (Q2 2015), at 30 June 2015, sales – RUB 145 billion, 13.1% increase y-o-y 28 % increase y-o-y 35% increase y-o-y ●A vg. ne
Slide 22: Establishing a Track Record — Pyaterochka
ESTABLISHING A TRACK RECORD — PYATEROCHKA 22 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL 35.3% 32.9% Net Sales Growth, % y-o-y 34.7% Total LFL Sales Growth, % y-o-y Net Selling Space Growth, 28.8% 30.3% % y-o-y 24.1% 29.1% 21.7% 21.4% 22.6% 17.7% 19.6% 19.5% 18.6% 19.9% 18.5% 17.3% 17.7% 15.1% 17.2
Slide 23: Perekrestok Summary
PEREKRESTOK SUMMARY 23 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL RUSSIA’S FAVORITE, HIGH QUALITY FRESH SUPERMARKET ● 438 stores ● Q2 2015 Net retail sales — ●A verage check: at 30 June 2015, RUB 31 billion; 475 RUB (Q2 2015) 13.2% increase y-o-y 11.9% increase y-o-y ●A vg. net selling space, ● 44
Slide 24: Establishing a Track Record — Perekrestok
ESTABLISHING A TRACK RECORD — PEREKRESTOK 24 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Net Sales Growth, % y-o-y Total LFL Sales Growth, % y-o-y Net Selling Space Growth, % y-o-y 12.2% 12.4% 11.9% 11.9% 10.4% 9.3% 9.0% 9.0% 10.7% 8.4% 7.5% 6.9% 8.1% 5.9% 6.2% 4.3% 6.9% 4.5% 5.9% 5.6% 3.7% 5.6% 5.
Slide 25: Karusel Summary
KARUSEL SUMMARY 25 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL YOUR DESTINATION STORE FOR ALL FOOD & HOUSEHOLD NEEDS ● 83 stores at 30 June ● Q2 2015 Net retail ● Average check: 2015, 2.5% increase y-o-y sales – RUB 19 billion, 682 RUB (Q2 2015) 14.2% increase y-o-y ● 361 thousand sq. m. ●A verage
Slide 26: Establishing a Track Record — Karusel
ESTABLISHING A TRACK RECORD — KARUSEL 26 Q2&H1 2015 FINANCIAL RESULTS CONFERENCE CALL Net Sales Growth, % y-o-y Total LFL Sales Growth, % y-o-y Net Selling Space Growth, % y-o-y 14.2% 12.3% 8.7% 8.6% 8.6% 7.8% 7.4% 8.4% 7.1% 7.0% 5.6% 6.3% 4.8% 5.0%4.5% 5.4% 4.3% 5.6% 4.1% 3.0% 3.4% (11.4%) (12.0%)