X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Q1 2024 Earnings Presentation
29 slides from X5 Corporate Center's earnings presentation, April 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 Online PREFERENCES +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 Q1 2024 Highlights
6 X5 is a leading Russian food retailer Q1 2024 Highlights #1 Russian 14.6% market share 1 24,884 stores >378 ths food retailer by revenue vs 9.5% in 2017 in 72 Russian regions employees +14.4% y-o-y Loyal 79.0 mln 33.6 mln 20 mln customer base active loyalty card users MAUs of X5 digital services a
Slide 7: X5 has a leading position in offline
7 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
8 73 X5 businesses Dark kitchens (incl. 3 franchisees) 1,616 Hard discounter stores Loyalty programme 21,593 Proximity stores Express delivery 8,394 Stores 35 Dark stores Digital 26,103 Pickup points and parcel lockers Subscription service 3 978 612 Large dark stores Supermarkets Stores
Slide 9: Pyaterochka
9 Pyaterochka Proximity stores 78 % Share of revenue (Q1 2024) 21,593 >4 THS 391 SQM Stores SKUs Average selling space
Slide 10: Perekrestok
10 Perekrestok Supermarkets 14 % Share of revenue (Q1 2024) 978 11–14 THS 1,112 SQM Stores SKUs Average selling space
Slide 11: Chizhik
11 Chizhik Hard discounter stores 5% Share of revenue (Q1 2024) 1,616 750-800 295 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: Growth and profitability supported by improving sales density
14 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 +11,0% Moscow & Moscow region +7,8% 445 432 339 421 328 413 414 319 312 305 Q1 2023 Q2 2023 Q3
Slide 15: Strategic Priorities
15 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 16: Building X5's presence at each step of the customer journey
16 16 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:
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: Q1 2024 Results
Ueeroup Q1 2024 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% 27.0% 12.6% 12.1% 12.3% 22.9% 10.4% 19.2% 7.9% 15.7% 870 876 1 951 10,206 10,336 1 870 1 880 1 821 788 1 595 9,860 765 9,541 689 9,203 Q1 2023 Q2 2023 Q3 202
Slide 20: Combined with stable profitability
20 …combined with stable profitability Revenue SG&A (excl. D&A&I, LTI, share-based payments 22.9% 25.0% 27.3% and other employee incentives) 19.2% 15.2% 881.2 886.2 18.6% 17.0% 17.3% 18.6% 18.1% 772.0 796.2 696.4 163.9 14.5% 160.6 137.9 129.4 131.0 128.5 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 20
Slide 21: Q1 2024: Adjusted SG&A expense analysis
21 Q1 2024: Adjusted SG&A1 expense analysis Q1 2024 analysis Key Q1 2024 highlights as a percentage of revenue Staff costs (excluding LTI and other employee incentives): a shift in the calendarisation of salary indexation. 18.6% (46) b.p. 18.1% Lease expenses: a positive operating leverage effect fo
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 Mar 2024 31 Mar 2023 100% 36% Total debt 233,846 247,390 Short-term debt 98,952 99,989 44.3% 40.4% 28% % of total debt Long-term debt 134,894 147,401 36% % of total debt 57.7% 59.6% Net debt (pre-IFRS 16) 196,781 208,271 31 Mar 202
Slide 24: Appendix
Ueeroup Appendix
Slide 25: Pyaterochka – key format highlights (Q1 2024)
25 Pyaterochka – key format highlights (Q1 2024) Key results Operating highlights CVP 21,593 stores +14.6% +3.0% 4,000 391 sqm +10.5% y-o-y LFL sales LFL traffic SKUs average selling space 687 RUB bln +11.2% 1,521 mln 70% 85% Net retail sales +25.1% y-o-y LFL ticket customer visits loyalty card Loya
Slide 26: Perekrestok – key format highlights (Q1 2024)
26 Perekrestok – key format highlights (Q1 2024) Key results Operating highlights CVP 978 stores +16.8% +3.4% 11-14 ths 1,112 sqm +0.6% y-o-y LFL sales LFL traffic SKUs average selling space 121 RUB bln +13.0% 169 mln 74% 88% LFL ticket customer visits loyalty card loyalty card Net retail sales +18.
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 Q1 2024 results 1,616 3x 46 RUB bln +143.5% 616 RUB 441 RUB / sqm Stores Net
Slide 28: Express delivery
28 Express delivery Business model overview Key operating metrics Q1 2024 Order made by customer via GMV RUB 44.7 bln mobile app Orders per day 284.9 ths Average ticket RUB 1,699 Order received at the nearest store Stores 8,394 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