X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2009)
18 slides from X5 Corporate Center's investor day presentation, Oct 20, 2009
Slide 1: Operational Excellence: Valuing Our People's Potential
Operational Excellence: Valuing Our People’s Potential Ekaterina Stolypina HR Director X5 Russian Retail Days 20 October 2009 2009, Moscow p. 1
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: Valuing Our People's Potential
Valuing Our People’s Potential X5 Employs over 61,000 People and Creates New Job Opportunities Every Day We Pay Competitive Wages and Motivate, Measure and Reward Performance We are Targeting Significant Improvements in Employee Productivity Our Training & Development Programs Drive Quality, Service
Slide 4: Key Employment Figures
Key Employment Figures Headcount (EoP) Selling Space Growth Thousand square meters 70,000 +1% 1,000 +7% 936 37% 60,467 +37% 61,055 874 60 000 60,000 900 +44% 800 50,000 +26% 44,092 700 +31% 609 40,000 34,941 600 500 466 30,000 400 20 000 20,000 300 200 10,000 100 0 0 2006 2007 2008 6m2009 2006 2007
Slide 5: We Motivate, Measure & Reward Performance
We Motivate, Measure & Reward Performance X5’ C X5’s Compensation ti and dBBenefits fit PPolicy li isi Directly Di tl Linked Li k d to t the th Company’s C ’ Strategic Goals Return on Human Fight Fi ht for f Talents… T l t Capital Invested… …to Deliver Growth & …to Achieve Operational Long-Term Lead
Slide 6: We Motivate, Measure & Reward Performance
We Motivate, Measure & Reward Performance X5 applies HayGroup job grading approach approach, which enables us to: ¾ Find a right balance between each grade’s value to the Company and mark-to-market results ¾ Ensure competitive fixed compensation levels ¾ Align grades with short-term (bonuses) and lo
Slide 7: We Motivate, Measure & Reward Performance
We Motivate, Measure & Reward Performance P f Performance- Performance -Based B d Sh Shortt-Term Short- T Incentive I ti Scheme S h Performance Target-Setting Evaluation & Bonus Awards Monitoring October February April December January March Start of year End of year • Corporate budgets and objectiv
Slide 8: Productivity Improvement Potential
Productivity Improvement Potential X5 O Outperforms t f M Mostt R Russian i C Competitors tit iin Terms T off Sales S l per Employee, E l but b t has Significant Potential to Drive further Productivity Improvements Sales per Employee, Employee USD USD’000 000 (2008) 390 270 266 233 224 232 219 229 2
Slide 9: Productivity Improvement Potential
Productivity Improvement Potential W Have We H C Conducted d t d a Comprehensive C h i Analysis A l i to t Reveal R l Areas A for f In- In I -Store St Productivity Improvement 9 Bottom Bottom-up up and top-down top down approaches were used 9 Bottom-up analysis enabled to assess the efficiency of wo
Slide 10: Benchmarking Productivity Improvements
Benchmarking Productivity Improvements Bottom B Bottom- tt -Up U AAnalysis l i Identified Id tifi d >20% 20% Scope S for f Improving I i In- In I -Store St Staff St ff Efficiency Effi i by Introducing Best Practices and New Technologies Inefficient workspace Optimal workspace Inefficient re-stocking
Slide 11: In-Store Productivity Objectives
In--Store Productivity Objectives In Average Headcount Per Store by Format 307 -10.4% 275 0.0% 275 -27.3% 200 123 -18.7% 100 -20.0% 80 -21.6% 42 63 -18.8% 34 -11.0% 30 -29.6% 21 2005 2007 2008 2011 Hypermarket Supermarket Discounter We Target Material In-Store Personnel Optimization Through Applicat
Slide 12: Recruiting and Retaining Talent
Recruiting and Retaining Talent M Macro E Economy Creates C t O Opportunities t iti to t Improve I Staffing St ffi and dWWorkforce kf Q Quality lit Staffing level Format 2007 2008 H1 2009 Hypermarket 94.0% 98.3% 98.3% Supermarket 97.0% 97.6% 97.4% Discounter 90.0% 95.8% 97.3% Turnover Format 2007 20
Slide 13: Commitment to Training & Development
Commitment to Training & Development Corpo t T&D C C Corporate Centers t iin K Key R Regions i off X5’ X5’s P Presence – Unique U i Advantage Ad t in i the Framework of Fast Growth and M&A Activity Corporate T&D Centers 9 Moscow 9 Saint-Petersburg g 9 Nizhniy Novgorod 9 Kazan 9 Lipetsk 9 Samara 9 Kr
Slide 14: Business Education
Business Education • Introduction to business • Situation management • Corporate culture • Persuasion skills In-House • Communication skills Trainers • Monitoring and feedback • Decision-making skills • Negotiation skills • Planning and management Programs for • Presentation skills • Motivation of e
Slide 15: Corporate University for New Employees
Corporate University for New Employees Programs for New Employees All Head Office Employees Supermarket Staff INTRO COURCE TWIST INTERNSHIP ‘AGITBRIGADA’ TRAININGS • Company’s history • Store structure of all the formats • Changes in the format • Corporate management • Layout of goods in the store a
Slide 16: Building X5's Corporate Culture
Building X5’s Corporate Culture Training on Corporate Culture Commitment C it t tto Company Pride Newsletter and Intranet Excellence Events and Awards Employee Code of Conduct We Do the Right Business Ethics Training on Business Ethics Thing g & regulatory Legal g y compliance “Serving Our Customers
Slide 17: Company Pride
YX5RETAILGROUP f | Ppouxg = \Aamepouxa = pxspetay pEKpzctox SS TEPEKPECTCK T=EPEKPECTOK Bh ptenbut p. 17
Slide 18: Thank You!
YX5RETAILGROUP THANK YOU! p. 18