X5 Corporate Center · RUS:X5

X5 Corporate Center — X5 Retail Group — Investor Day (October 2014)

21 slides from X5 Corporate Center's investor day presentation, Oct 29, 2014

  1. Slide 1: Pyaterochka – Capital Markets Day 2014

    an company Pyaterochka X5 Retail Group Capital Markets Day 2014 Olga Naumova, Pyaterochka General Director 29 October 2014 Moscow, Russian Federation

  2. Slide 2: Introduction

    INTRODUCTION 2

  3. Slide 3: Pyaterochka at a Glance

    PYATEROCHKA AT A GLANCE YOUR NEIGHBORHOOD STORE FOR DAILY SHOPPING NEEDS TOTAL NUMBER OF STORES, 30.09.2014 4,342 TOTAL NEW & REBRANDED STORES, 30.09.2014 1,122 TOTAL SELLING SPACE (TH SQ. M.), 30.09.2014 2,376 NET SALES FOR 9M 2014, RUB BLN 310 SHARE IN X5’S TOTAL NET SALES 69% AVERAGE ASSORTMENT S

  4. Slide 4: 4 Quarters of Improving Results

    ESTABLISHING A TRACK RECORD Net Sales Growth, % y-o-y Net Selling Space Growth, % y-o-y 30.3% 21.3% 19.6% 19.9% 18.7% 22.6% 17.7% 14.1% Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Sales Densities, th.RUB/sq.m.(1) Total LFL Sales Growth, % y-o-y 273 274 276 281 17.7% 11.0% 8.2% 5.2% Q4 '1

  5. Slide 5: 2013 Initiatives Score Card

    2013 INITIATIVES SCORE CARD Initiative Status Comments Increase Store Openings ~800 openings in 2014 Assortment Review Increase by ~500 SKU’s Quality Director in all Stores / Improve Product Quality accessible to customers 90% Shelf Availability for Improve Availability “Top – 100 Products” Launch R

  6. Slide 6: Assortment & Category Management

    ASSORTMENT & CATEGORY MANAGEMENT 6

  7. Slide 7: Assortment Update

    ASSORTMENT UPDATE Focus on “right” assortment to drive basket & traffic  Assortment expansion – on average 15% to 20% in 2014 to ~ 4,000+ SKU’s  Weekly rotation – up to 50 new SKU’s in stores provides “something new” for customers and opportunities for new listings (positive for supplier relations

  8. Slide 8: Assortment Rotation

    ASSORTMENT ROTATION Click to start video 50 New SKUs Every Week 8

  9. Slide 9: Category Management – Category Review

    CATEGORY MANAGEMENT – CATEGORY REVIEW CASE-STUDY: REVIEW OF SAUCES & SPICES CATEGORY Assortment  Enhanced largely through mid-price segment and local assortment Pricing  Lower prices on key high-volume SKUs and higher prices on other SKUs Planogram  Planogram adjustment frees up space for high-de

  10. Slide 10: Refurbishments

    REFURBISHMENTS 10

  11. Slide 11: Refurbishment Program Update

    REFURBISHMENT PROGRAM UPDATE Program Targets Program Results Net Retail Sales Growth Average Duration At 30 September 2014 Of Store Closure 332 = 317 15 Stores refurbished at Positive Negative 30 September 2014 Result Result 13.2% 16 days (excluding 23 pilot projects) Average Capex Average Payback (

  12. Slide 12: Old Pyaterochka vs…

    OLD PYATEROCHKA VS… 12

  13. Slide 13: New Pyaterochka

    NEW PYATEROCHKA 13 6) Tlamépouka

  14. Slide 14: Expansion

    EXPANSION 6) Tlamépouka

  15. Slide 15: Store Openings

    15 STORE OPENINGS PROCESS RESULTS 2013 2014E  Identifying optimal store location, estimating turnover & space # Of Store Openings (gross) 696 ~800  Establishing assortment AVG Store Opening Cost, mln RUB 12.6 13.3 (Ex real estate, incl. VAT)  Establishing complementary services  Liaising with lo

  16. Slide 16: Store Opening Software – GIS

    16 STORE OPENING SOFTWARE – GIS Social Local market Transport Population Competition Personal income infrastructure share accessibility Retail turnover analysis, presentations for the Development priorities Investment Committee Roadmap Retail turnover estimation, screenshot from the system GIS: key

  17. Slide 17: GIS in Action

    17 GIS IN ACTION Summary information on the town of Shakhovskaya: Population: 10 700 Number of Pyaterochka stores: 3 Number of rival stores: 1 Distance from Moscow: 154 km, M9 highway Click to start video 17

  18. Slide 18: 4,000th Pyaterochka Opened – Krasnodar Region

    4,000th PYATEROCHKA OPENED - KRASNODAR REGION Click to start video 18

  19. Slide 19: Strategic Focus

    STRATEGIC FOCUS  Top-line growth – increase selling space and improve sales densities Growth &  Selling space – accelerate store and DC roll out in target regions including tactical M&A Profitability  Sales densities – improve best in class position through assortment/price/service – especially i

  20. Slide 20: Thank you for your attention!

    an company Thank you for your attention!

  21. Slide 21: Disclaimer

    DISCLAIMER This presentation does not constitute or form part of and should not be construed as an advertisement of securities, an offer or invitation to sell or issue or the solicitation of an offer to buy or acquire or subscribe for securities of X5 Retail Group N.V. or any of its subsidiaries or

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