X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Q1 2023 Earnings Presentation
29 slides from X5 Corporate Center's earnings presentation, April 2023
Slide 1: Investor Presentation
Ucroup 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: X5 is a leading Russian food retailer… Q1 2023 Highlights
3 X5 is a leading Russian food retailer… Q1 2023 Highlights #1 Russian 13.2% market share1 21,760 stores >345 ths food retailer by revenue vs 9.5% in 2017 in 72 Russian regions employees +11.7% y-o-y Loyal 71.2 mln 21.8 mln >17 mln customer base active loyalty card users MAUs of X5 digital services
Slide 4: X5 businesses
4 X5 businesses 956 Supermarkets 19,549 Proximity stores 24,332 Pickup points and parcel lockers 591 Express delivery Hard discounter stores 3 5,709 Large dark stores Stores 46 Dark stores 60 Dark kitchens (incl. 4 franchisees)
Slide 5: Pyaterochka
5 Pyaterochka Proximity stores 79 % Share of revenue (Q1 2023) 19,549 >4 THS 391 SQM Stores SKUs Average selling space
Slide 6: Perekrestok
6 Perekrestok Supermarkets 15 % Share of revenue (Q1 2023) 956 8–15 THS 1,117 SQM Stores SKUs Average selling space
Slide 7: Chizhik
7 Chizhik Hard discounter stores 3% Share of revenue (Q1 2023) 591 750–800 295 SQM Stores SKUs Average selling space
Slide 8: Track record of strong operational performance…
8 Track record of strong operational performance… Net retail sales dynamics, RUB bln 18.3% Selling space, ths sqm 8.3% CAGR 2018-2022: 14.2% CAGR 2018-2022: 9.0% 9,107 2,602 8,410 7,840 2,200 7,239 1,973 6,464 1,728 1,525 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 LFL sales, % y-o-y growth Nu
Slide 9: …supported by robust profitability
9 …supported by robust profitability Revenue CAGR exceeding 14% in 2018-22 Adj. ROIC2 has increased by 5 p.p. since CAGR 2018-2022: 14.2% 18.2% 2018 18.5% 2,605 17.1% 2,205 16.1% 1,978 1,734 14.5% 1,533 13.2% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Adj. EBITDA margin1 consistently above 7%
Slide 10: X5 uses its core strengths to create upside potential…
10 X5 uses its core strengths to create upside potential… Our strengths Upside potential Diverse and reliable supply base Strong brands Driving LFL sales growth above food CPI • X5 successfully partners with the largest level X5 brands were among the top Russian FMCG and grocery suppliers, relying u
Slide 11: …and is committed to key strategic objectives
11 …and is committed to key strategic objectives 1 Leadership in the food market 2 Digitalisation • Focus on the largest and fastest-growing market segments: • Focus on express delivery from stores and dark stores, the convenience and hard discounters largest and fastest-growing segment of e-grocery
Slide 12: Focus on the fastest-growing market segment
12 1 Focus on the fastest-growing market segment Diverse grocery business with growth potential across convenience, hard discounter and online segments 2022 2023E 4 p.p. 20% 16% 1 p.p. 8% 45% 3 p.p. 8% 49% 1 p.p. 3% 2% 1 p.p. 8% 7% 17% 17% 72% 76% 4 p.p. share of grocery market 1 p.p. share of groce
Slide 13: Market consolidation is the key source of growth for the top players
13 1 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% 24% 21% 22% 20% Aldi 26% Tesco 13.3% 9.5% 62% 61% Auchan 57%
Slide 14: Growth and profitability supported by improving sales density
14 1 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 +9.4% Moscow & Moscow region +6.3% 305 411 413 300 407 295 287 399 279 389 Q1 2022 Q2 2022 Q
Slide 15: X5 is among the leaders in e-grocery
15 2 X5 is among the leaders in e-grocery Fastest-growing food retail segment • X5 Digital oversees express delivery technology platform, small RUB bln dark-store of express delivery and large dark-store infrastructure under Vprok.ru brand +63% • Offering a range of e-grocery services: express deliv
Slide 16: Focus on efficiency
16 3 Focus on efficiency Key EBITDA drivers Capex drivers Private labels and direct import Regional growth contribution Continue ambitious space Smart refurbishments share growth expansion Delivering assortment differentiation and EBITDA margin in new regions increase Focus on Pyaterochka proximity
Slide 17: ESG is becoming a core element of X5's strategy
17 4 ESG is becoming a core element of X5’s strategy – 2021 progress against strategic goals Planet Health Employees Communities -9% 45.5% 82.5% 100% GHG emissions (Scope 1 + Scope 2) Share of FRESH and F&V products 3 Employee engagement of Pyaterochka stores engage in the Help for per sqm of sellin
Slide 18: Q1 2023 Results
USeroup Q1 2023 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) 18.7% 18.6% 19.5% 1,654 1,648 8.3% 7.9% 16.5% 15.7% 1,586 1,595 7.3% 7.1% 1,411 6.6% 698 9,203 689 9,107 641 642 8,755 596 8,640 8,528 Q1 2022 Q2 2022 Q3 2022 Q4 2
Slide 20: …combined with stable profitability
20 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 19.1% 18.6% 19.2% 16.1% 15.2% 18.5% 16.7% 17.2% 18.0% 16.0% 705.2 17.7% 648.0 647.9 696.4 604.2 126.7 129.4 111.6 111.3 108.1 101.3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2023 pre-IFRS
Slide 21: Q1 2023: Adjusted SG&A expense analysis
21 Q1 2023: Adjusted SG&A1 expense analysis Q1 2023 analysis Key Q1 2023 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): a negative operating leverage effect. 18.5% 18.6% 12 b.p. Lease expenses: a positive operating leverage effect for fixed 0.7% 0.6% leas
Slide 22: X5 capital expenditures
22 X5 capital expenditures Capex breakdown, 2022 Capex dynamics by year, RUB bln 24% 7.6% 5.5% 4.7% 4.5% 4.4% New store openings 3.1% 38% Refurbishments 98.6 97.9 89.9 83.7 81.1 81.6 Logistics 81.6 RUB bln -16.6% y-o-y IT Maintenance 12% Other, including new business 2017 2018 2019 2020 2021 2022 13
Slide 23: X5 debt structure
23 X5 debt structure Debt profile Debt portfolio maturity RUB mln 31 Mar 2023 31 Mar 2022 100% 29% Total debt 247,390 333,408 Short-term debt 99,989 115,489 39% % of total debt 40.4% 34.6% Long-term debt 147,401 217,919 % of total debt 59.6% 65.4% 28% Net debt (pre-IFRS 16) 208,271 280,196 4% 31 Mar
Slide 24: Appendix
USeroup Appendix
Slide 25: Pyaterochka – key format highlights (Q1 2023)
25 Pyaterochka – key format highlights (Q1 2023) Key results Operating highlights CVP 19,549 stores +7.0% +3.8% 4,500 391 sqm +6.7% y-o-y LFL sales LFL traffic SKUs average selling space 549 RUB bln +2.9% 1,352 mln 61% 77% Net retail sales +18.4% y-o-y LFL ticket customer visits loyalty card Loyalty
Slide 26: Perekrestok – key format highlights (Q1 2023)
26 Perekrestok – key format highlights (Q1 2023) Key results Operating highlights CVP 956 stores +4.1% +1.1% 8-15 ths 1,117 sqm -2.6% y-o-y LFL sales LFL traffic SKUs average selling space 101 RUB bln +2.6% 160 mln 69% 83% LFL ticket customer visits loyalty card loyalty card Net retail sales +10.0%
Slide 27: Chizhik – key format highlights
27 Chizhik – key format highlights 250–300 sqm 7–9 RUB mln 750–800 SKUs 75% of store selling space net capex per store in the assortment target share of private (excl. VAT) label assortment EDLP 2x up to 50% 7 price strategy higher sales density higher return on investments employees per store compa
Slide 28: Express delivery
28 Express delivery Business model overview Key operating metrics Q1 2023 Order made by customer via GMV RUB 21.8 bln mobile app Orders per day 149.2 ths Average ticket RUB 1,596 Order received at the nearest store Stores 5,709 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