X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Q3 2023 Earnings Presentation
30 slides from X5 Corporate Center's earnings presentation, October 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: 9M 2023 Highlights
3 X5 is a leading Russian food retailer 9M 2023 Highlights #1 Russian 13.2% market share1 23,466 stores >364 ths food retailer by revenue vs 9.5% in 2017 in 72 Russian regions employees +16.0% y-o-y Loyal 74.7 mln 24.8 mln >19 mln customer base active loyalty card users MAUs of X5 digital services a
Slide 4: X5 businesses
X5 businesses 66 Dark kitchens (incl. 3 franchisees) 955 Loyalty programme Supermarkets 601 Stores 20,761 Proximity stores Express delivery 7,779 Stores 44 Dark stores Digital Subscription service 1,071 25,823 Hard discounter stores Pickup points and parcel lockers 3 Large dark stores
Slide 5: Pyaterochka proximity stores
5 Pyaterochka Proximity stores 80 % Share of revenue (9M 2023) 20,761 >4 THS 392 SQM Stores SKUs Average selling space
Slide 6: Perekrestok supermarkets
6 Perekrestok Supermarkets 13 % Share of revenue (9M 2023) 955 8–15 THS 1,117 SQM Stores SKUs Average selling space
Slide 7: Chizhik hard discounter stores
7 Chizhik Hard discounter stores 3% Share of revenue (9M 2023) 1 071 750–800 296 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 +8.4% Moscow & Moscow region +3.6% 421 319 411 413 414 312 407 305 300 295 Q3 2022 Q4 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: Sustainable development is X5's strategic priority — 2022 progress
17 4 Sustainable development is X5’s strategic priority — 2022 progress against strategic goals Planet Health Employees Communities -13.7% 46% 82.5%2 100% GHG emissions (Scope 1 + Scope 2) Share of FRESH and F&V products Employee engagement of Pyaterochka stores engage in the Help for per sqm of sel
Slide 18: X5 updated its strategic ESG goals to 2025
18 5 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 a
Slide 19: Q3 2023 Results
19 Q3 2023 Results
Slide 20: Double-digit top-line growth supported by strong LFL sales dynamics…
20 Double-digit top-line growth supported by strong LFL sales dynamics… Net retail sales1 Traffic, mln customers Net selling space (eop) 22.9% 12.6% 19.5% 19.2% 16.5% 15.7% 10.4% 788 1,951 765 1,870 9,860 8.3% 7.9% 1,654 1,648 1,595 698 689 6.6% 9,541 9,203 642 9,107 8,755 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 21: …combined with stable profitability
21 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 22.9% 19.2% 19.2% 16.1% 15.2% 18.0% 17.2% 17.0% 17.3% 16.0% 772.0 796.2 705.2 696.4 137.9 647.9 129.4 131.0 126.7 13.6% 111.3 107.9 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2023 pre-IFRS
Slide 22: Q3 2023: Adjusted SG&A expense analysis
22 Q3 2023: Adjusted SG&A1 expense analysis Q3 2023 analysis Key Q3 2023 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): a negative operating leverage effect as well as the hiring of additional store personnel at Perekrestok on the back of the new CVP. 17.
Slide 23: X5 capital expenditures
23 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 24: X5 debt structure
24 X5 debt structure Debt profile Debt portfolio maturity RUB mln 30 Sep 2023 30 Sep 2022 100% 19% Total debt 219,003 208,945 44% Short-term debt 119,987 70,497 % of total debt 54.8% 33.7% Long-term debt 99,016 138,448 22% % of total debt 45.2% 66.3% Net debt (pre-IFRS 16) 164,584 169,246 15% 30 Sep
Slide 25: Appendix
USeroup Appendix
Slide 26: Pyaterochka – key format highlights (Q3 2023)
26 Pyaterochka – key format highlights (Q3 2023) Key results Operating highlights CVP 20,761 stores +10.4% +6.1% 4,500 392 sqm +10.1% y-o-y LFL sales LFL traffic SKUs average selling space 640 RUB bln +4.1% 1,669 mln 59% 77% Net retail sales +18.7% y-o-y LFL ticket customer visits loyalty card Loyal
Slide 27: Perekrestok – key format highlights (Q3 2023)
27 Perekrestok – key format highlights (Q3 2023) Key results Operating highlights CVP 955 stores +9.5% +2.2% 8-15 ths 1,117 sqm -1.6% y-o-y LFL sales LFL traffic SKUs average selling space 97 RUB bln +7.2% 168 mln 66% 81% LFL ticket customer visits loyalty card loyalty card Net retail sales +9.1% y-
Slide 28: Chizhik – key format highlights
28 Chizhik – key format highlights 250–300 sqm 8–10 RUB mln 750–800 SKU of store selling space net capex per store (excl. VAT) in the assortment EDLP 7 75% price strategy employees per store target share of private label assortment Q3 2023 results 1,071 3x 31 RUB bln 3х 555 RUB 471 RUB / sqm Stores
Slide 29: Express delivery
29 Express delivery Business model overview Key operating metrics Q3 2023 Order made by customer via GMV RUB 25.9 bln mobile app Orders per day 202.2 ths Average ticket RUB 1,368 Order received at the nearest store Stores 7,828 Click to delivery 50–60 min Order assembled at the store by in-store sta
Slide 30: X5 Investor Relations
X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13-147