X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q1 2014 Earnings Presentation
22 slides from X5 Corporate Center's earnings presentation, Apr 30, 2014
Slide 1: First Quarter 2014 Financial Results Conference Call
First Quarter 2014 Financial Results Conference Call Sergey Piven, X5 CFO Moscow, Russian Federation 30 April 2014
Slide 2: 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
Slide 3: Quarterly Financial Results
Quarterly Financial Results 3
Slide 4: Financial Highlights
Financial Highlights RUR million Q-o-Q Y-o-Y Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 (when applicable) +/( - )% +/( - )% Revenue 126,524 133,449 124,246 150,341 144,167 (4.1) % 13.9 % Net retail sales 126,296 133,076 123,534 149,786 143,898 (3.9) % 13.9 % COGS (95,622) (101,876) (93,155) (113,559) (
Slide 5: Revenue & EBITDA Dynamics
Revenue & EBITDA Dynamics 1,199 1,325 515 92 40 144,167 14,472 126,524 Revenue Dynamics, Total: + 17.7% Total: + 4.4% Total: + 8.7% Total: + 30.1% RUR million Central: + 19.5% Central: + 4.5% Central: + 22.0% Central: + 30.1% NW: + 7.1% NW: + 10.1% NW: + 0.3% NW: - Other: + 22.8% Other: + 0.9% Other
Slide 6: SG&A Breakdown
SG&A Breakdown % of % of % of % of Q1 2013 Q1 2014 RUR mln Q4 2013 Q1 2014 Revenue Revenue Revenue Revenue 10,780 8.5% 12,104 8.4% Staff costs 11,308 7.5% 12,104 8.4% 5,323 4.2% 6,598 4.6% Lease expenses 6,161 4.1% 6,598 4.6% 3,362 2.7% 3,889 2.7% D&A 2,911 1.9% 3,889 2.7% 3,072 2.4% 3,499 2.4% Util
Slide 7: Cash Flow Highlights
Cash Flow Highlights RUR mln Q1 2013 Q1 2014 +/( - ) +/ ( - ), % Net cash generated from/ (used in) operating activities 866 (4,632) (5,498) n/a Net cash from operating activities before changes in working capital 8,807 9,196 389 4.4 % Change in Working Capital (4,081) (10,120) (6,039) 148.0 % Decre
Slide 8: Capital Expenditures Overview
Capital Expenditures Overview Q1 2014 Capital Expenditures(1) Net Investment Cash Flows, RUR mln Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Reconstruction & Maintenance 25% New Store (3,204) Openings Logistics, IT & 64% (4,289) Other (4,880) 11% (5,183) (7,885) In Q1 2014, capex focused on organic expa
Slide 9: Condensed Balance Sheet
Condensed Balance Sheet RUR mln 31 December 2013 31 March 2014 +/( - ) +/( - )% Total current assets 76,488 73,164 (3,324) (4.3) % Cash & cash equivalents 7,611 4,825 (2,786) (36.6) % Inventories 37,465 36,602 (863) (2.3) % Total non-current assets 225,415 221,292 (4,123) (1.8) % Net PP&E 134,998 13
Slide 10: Debt Structure
Debt Structure Debt Profile Debt Portfolio Maturity Short-term debt Lont-term debt RUR mln 31 Mar 2013 31 Dec 2013 31 Mar 2014 32.8% 36.5% Total Debt 119,907 110,523 116,735 (1) Short-Term Debt 51,533 30,680 32,169 25.0% % of total debt 43.0% 27.8% 27.6% Long-Term Debt 68,374 79,843 84,566 % of tota
Slide 11: Operational Overview
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Slide 12: X5 Regional Presence
X5 Regional Presence (1) Q1 2014 Regional Store Breakdown (2) Overview • Multi-format presence in 62 cities of North region Pyaterochka: 63 European Russia, the Urals and Western Siberia with population > 200,000 (3) North-West region Petrozavodsk Pyaterochka: 535 • Total stores – 4,618, including:
Slide 13: X5 Distribution Capabilities
X5 Distribution Capabilities Distribution center (DC) locations Warehouse Space (1) Space, Region # of DCs th sq. m. Central 343.4 15 North-West 80.4 5 5 Povolzhsky 62.5 3 St. Petersburg Povolzhsky 43.5 5 Volgo-Vyatsky 29.1 1 MOSCOW Central-Chernozemny 30.7 2 15 South 13.6 1 Total 603.3 32 N. Novgor
Slide 14: Russian Retail Market
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Slide 15: Retail Market Snapshot
Retail Market Snapshot Top-10 Russian Retailers Top-10 Market Share & Market Evolution % in Retail market (gross sales) & Top 10 share RUR 11.1 trillion Net retail sales % in # Company name total 2013, RUR mln top 10 market RUR 9.1 trillion 1 Magnit (1) 567,655 24.8% 5.8% 2 Х5 532,692 23.3% 5.5% RUR
Slide 16: 2014 YTD Russian Macro & Consumer
2014 YTD Russian Macro & Consumer Industrial production Real Retail Food Sales Growth Food CPI 8.4% 6.9% 7.3% 6.5% 2.1% 1.8% 1.4% 1.1% 1.1% 0.8% 0.7% (0.2%) Jan'14 Feb'14 Mar'14 Q1'14 Jan'14 Feb'14 Mar'14 Q1'14 Jan'14 Feb'14 Mar'14 Q1'14 Real Wage Growth Unemployment rate Consumer confidence index 5
Slide 17: Appendix 1: 2014 Monthly Results
Appendix 1: 2014 Monthly Results 17
Slide 18: Q1 2014 Expansion
Q1 2014 Expansion Q1 2013 - 66 stores added(1) 49 Q1 2014 - 74 stores added(2) 45 Number of Stores 20 Opened, net 18 5 3 Jan Feb Mar Q1 2013 – 18,519 sqm added 15,488 Q1 2014 - 9,609 sqm added 742 stores added 11,110 8,443 Selling Space 4,955 Added, net sqm (5,412) (6,456) Jan Feb Mar Notes: (1) Dur
Slide 19: Q1 2014/2013 Net Retail Sales Growth
Q1 2014/2013 Net Retail Sales Growth X5 Retail Group Pyaterochka 19.0% 17.5% 16.7% 13.7% 15.3% 10.8% 11.0% 9.4% 13.0% 10.6% 5.4% 10.4% 8.7% 10.2% 5.0% 8.5% 8.9% 6.7% 6.1% 9.2% 10.2% 7.1% 8.9% 10.0% 6.4% 5.6% 6.9% 6.3% 4.1 % 4.2 % 4.8% 3.4% 0.6 % (1.4 %) (1.6 %) (1.5 %) Perekrestok Karusel 11.6% 8.9%
Slide 20: Q1 2014/2013 LFL Sales Dynamics
Q1 2014/2013 LFL Sales Dynamics (1) X5 Retail Group Pyaterochka 8.2% 9.1% 6.5% 7.2% 7.5% 5.2% 1.6% 0.3 % 0.3% 0.5 % 0.6 % 7.6% 0.5 % 5.8% 6.2% 0.3% 6.1% 7.6% 10.0% 1.2% 0.6% 4.7% 6.8% (0.4 %) 2.8% 0.4% (0.7 %) (4.0 %) (1.4 %) (2.4 %) (1.6 %) (0.2%) (0.1%) (0.8 %) (1.2%) (5.6 %) Perekrestok Karusel 3
Slide 21: Q1 2014/2013 Express Stores Results
Q1 2014/2013 Express Stores Results Net Retail Sales Growth, % LFL Sales Growth(1), % 99.5%) 15.0% 83.1% 83.7% 13.0% 12.2% 3.2 % 3.8 % 4.8% 5.6 % 84.7 % 34.1% 73.5 % 64.9 % 28.9% 26.7% 3.3% 11.4 % 3.5% 9.2 % 7.3 % 21.4% 21.5% 33.2% 6.6 % 4.3 % 9.3 % 12.4 % 5.4% 3.1% 3.3 % 6.6 % (0.8 %) (1.0 %) 0.2 %
Slide 22: Contact Information
Contact Information IR Department Contact Details Gregory Madick Andrey Napolnov, CFA Executive IR Director Senior IR manager Tel.: +7 (495) 502 97 83 Tel.: +7 (495) 662 8888 ext. 22-455 Mob.: +7 (910) 459 73 56 Mob.: +7 (926) 654 6262 E-mail: Gregory.Madick@X5.ru E-mail: Andrey.Napolnov@X5.ru Addre