Slide 1: Second Quarter 2013 Financial Results Conference Call
1 Second Quarter 2013 Financial Results Conference Call Sergey Piven, X5 Chief Financial Officer Moscow, Russian Federation 15 August 2013
Slide 2: Disclaimer
Disclaimer 2 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 o
Slide 3: Summary Highlights – Q2 2013
Summary Highlights – Q2 2013 3 Our Business • Multi-format brand retail operator: Pyaterochka (Soft Discounter), Perekrestok (Supermarket), Karusel (Hypermarket) plus assorted brand name convenience stores Q2 2013 Operating Results • Total number of stores – 4,031 with net selling space of 2,048 th
Slide 4: Regional Presence (1)
Regional Presence (1) 4 Q2 2013 Regional Store Breakdown Overview St. Petersburg & Moscow & Central region • Multi-format presence in 62 cities of European North-West region Discounters: 1,460 Russia, the Urals and Ukraine with population > Discounters: 536 Supermarkets: 217 Supermarkets: 37 Hyperma
Slide 5: Financial Overview – Q2 2013 vs. Q2 2012
5 Financial Overview – Q2 2013 vs. Q2 2012
Slide 6: Sales & EBITDA Breakdown
Sales & EBITDA Breakdown 6 871 223 182 133,449 1,464 813 6,259 Net sales 123,637 breakdown , Total: + 7.7% Total: + 5.6% Total: + 5.4% Total: + 78.7% RUR million Central: + 5.1% Central: + 6.0% Central: + 8.1% Central: - NW: - 4.3% NW: + 4.8% NW: + 1.4% NW: - Other: + 24.9% Other: + 4.6% Other: + 5.
Slide 7: Financial Highlights
Financial Highlights 7 USD million Q-o-Q Y-o-Y Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 (when applicable) +/( - )% +/( - )% Retail sales 3,981.8 3,610.4 4,307.8 4,152.5 4,209.8 1.4% 5.7% Total revenues 3,987.9 3,616.7 4,319.9 4,160.0 4,221.6 1.5% 5.9% COGS 3,077.6 2,791.7 3,278.2 3,144.0 3,223.4 2.5%
Slide 8: SG&A Breakdown
SG&A Breakdown 8 % of Net % of Net % of Net % of Net Q2 2012 Q2 2013 USD mln Q1 2013 Q2 2013 Sales Sales Sales Sales (324.5) 8.1% (339.8) 8.0% Staff Costs (354.4) 8.5% (339.8) 8.0% (144.6) 3.6% (175.7) 4.2% Lease Expenses (175.0) 4.2% (175.7) 4.2% (61.9) 1.6% (71.6) 1.7% Other Store Costs (70.5) 1.7
Slide 9: Cash Flow Highlights
Cash Flow Highlights 9 +/ ( - ), USD mln Q2 2012 Q2 2013 +/( - ) % change Net Cash From Operating Activities 68.8 49.3 (19.5) (28.2%) Net Cash from Operating Activities before Changes in Working Capital 275.0 296.9 21.9 7.9% Change in Working Capital (85.3) (130.0) (44.7) 52.4% Net Interest and Inco
Slide 10: Condensed Balance Sheet
Condensed Balance Sheet1 10 USD mln 31 December 2012 30 June 2013 +/( - ) +/( - )% Total current assets 2,465.9 1,954.6 (511.3) (20.7 %) incl. Cash & cash equivalents 407.9 220.9 (186.9) (45.8 %) incl. Inventories 1,114.9 932.7 (182.2) (16.3 %) Total non-current assets 7,116.4 6,631.9 (484.6) (6.8 %
Slide 11: Capital expenditures overview
Capital expenditures overview 11 H1 2013 CapEx amounted to USD 229 mln Net Cash Flows From Investing Activities, USD mln (1) 226.0 Reconstruction & Maintenance 194.5 195.4 20% 152.4 New Store Openings Logistics, IT & 70% 105.3 Other 10% Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 In H1 2013, capex focus
Slide 12: Debt Structure
Debt Structure 12 Debt profile Debt portfolio maturity USD mln 31 Dec 2012 % in total 30 Jun 2013 % in total 35.4% Total Debt 4,027.3 3,757.0 27.6% 27.7% Short-Term Debt 1,680.9 41.7% 1,681.1 44.7% Long-Term Debt 2,346.4 58.3% 2,075.9 55.3% Net Debt / (Net Cash) 3,619.4 3,536.0 9.3% RUR/USD exch. ra
Slide 13: Appendix
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Slide 14: 2013 YTD Expansion Update
2013 YTD Expansion Update Number of Stores Opened, net Selling Space Added, net sq.m. 90 35,051 45 39 15,488 34 13,878 18 8,443 10,831 3 Jan Feb Mar Apr May Jun (5,412) Jan Feb Mar Apr May Jun Expansion y-o-y in 6M 2013: 229 stores added vs 296 stores in 2012 / 78.3 thd sqm added vs 92.3 thd sqm in
Slide 15: 2013 Net RUR Retail Sales Dynamics
2013 Net RUR Retail Sales Dynamics Total Net Retail Sales Growth, % y-o-y Soft Discounter Net Retail Sales Growth, % y-o-y 10.2 % 10.8 % 11.0 % 8.7 % 8.0 % 8.2 % 8.7 % 7.2 % 7.3 % 7.2 % 5.0 % 5.4 % (1) Jan Feb (1) Mar Apr May Jun Jan Feb Mar Apr May Jun Supermarkets Net Retail Sales Growth, % y-o-y
Slide 16: 2013 LFL Sales Dynamics
2013 LFL Sales Dynamics(1) Total LFL Sales Growth, % Soft Discounters LFL Sales Growth, % 1.6 % 0.3 % 0.2 % 0.0 % 0.1 % (0.7 %) (0.1 %) (0.2 %) (1.2 %) (2.0 %) (1.2 %) (2.2 %) Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Supermarkets LFL Sales Growth, % Hypermarkets LFL Sales Growth, % 7.4 % 3.3
Slide 17: 2013 Total Sales: Traffic and Basket
2013 Total Sales: Traffic and Basket(1) Total X5 Sales Growth, % Soft Discounters Sales Growth, % Total basket growth, % Total traffic growth, % Total basket growth, % Total traffic growth, % 6.1% 6.7% 10.2% 5.6% 10.0% 5.9% 5.8% 7.2% 7.1% 5.8% 6.9% 7.1% 4.2 % 4.1 % 3.0 % 2.2 % 2.4% 1.5% 0.2% 0.6 % 0
Slide 18: 2013 LFL Sales: Traffic & Basket
2013 LFL Sales: Traffic & Basket(1) Total X5 LFL Sales Growth, % Soft Discounters LFL Sales Growth, % LFL basket growth, % LFL traffic growth, % LFL basket growth, % LFL traffic growth, % 5.8% 6.1% 5.1% 4.4% 4.7% 3.6% 2.8% 2.0% 2.2% 0.4% 1.2% 0.6% (2.4 %) (1.6 %) (1.4 %) (0.7 %) (4.1 %) (5.6 %) (5.6
Slide 19: 2013 Convenience Store RUR Results
2013 Convenience Store RUR Results Net Retail Sales Growth, % LFL Sales Growth, % 17.9 % 99.5 % 15.0 % 15.6 % 14.8 % 83.1 % 83.7 % 82.9 % 13.0 % 12.2 % 76.5 % 77.2 % Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Net Retail Sales, mln Comments 676.7 666.4 626.4 634.7 533.6 546.8 • Rapidly developin
Slide 20: Contact Information
Contact Information IR Department Contact Details Gregory Madick Andrey Napolnov 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 Address: 4