X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Investor Presentation (October 2022)
30 slides from X5 Corporate Center's investor presentation, October 2022
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 2022 Highlights
3 X5 is a leading Russian food retailer… 9M 2022 Highlights #1 Russian 12.6% market share 20,227 stores >325 ths food retailer by revenue vs 9.5% in 2017 in 67 Russian regions employees +8.2% y-o-y Loyal 65 mln 18.3 mln >17 mln customer base active loyalty card users MAUs of X5 digital services aver
Slide 4: X5 businesses
4 X5 businesses 972 Supermarkets 18,865 Proximity stores 23,612 Pickup points and parcel lockers 316 Express delivery Hard discounter stores 5 2,633 Large dark stores Stores 45 Dark stores 56 Dark kitchens (incl. 4 franchisees)
Slide 5: Pyaterochka
5 Pyaterochka Proximity stores 83 % Share of revenue (Q3 2022) 18,865 >4 THS 392 SQM Stores SKUs Average selling space
Slide 6: Perekrestok
6 Perekrestok Supermarkets 13 % Share of revenue (Q3 2022) 972 8–15 THS 1,126 SQM Stores SKUs Average selling space
Slide 7: Chizhik
7 Chizhik Hard discounter stores 1.5 % Share of revenue (Q3 2022) 316 750–800 294 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 11.2% Selling space, ths sqm 7.3% CAGR 2017-2021: 14.3% CAGR 2017-2021: 11.3% 2,194 8,410 1,973 7,840 1,728 7,239 6,464 1,525 1,287 5,480 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 LFL sales, % y-o-y growth N
Slide 9: …supported by robust profitability
9 …supported by robust profitability Revenue CAGR exceeding 14% in 2017-21 Adj. ROIC2 has increased by 4 p.p. since CAGR 2017-2021: 14.2% 11.5% 2018 17.1% 2,205 16.1% 1,978 15.2% 1,734 14.5% 1,533 1,295 13.2% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 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 2021 2022E 2 p.p. 22% 20% 43% 45% 9% 2 p.p. 1 p.p. 10% 3% 2% 1 p.p. 5% 6% 1 p.p. 19% 18% 68% 71% 3 p.p. share of grocery market 1 p.p. share of groc
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% Aldi 27% 26% Tesco 13.3% 9.5% 62% 61% Auchan 57% 4
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 +10.5% Moscow & Moscow region +8.8% 295 287 279 407 399 272 267 389 378 374 Q3 2021 Q4 2021
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 RUB bln +147% • X5 Digital oversees express delivery technology platform, small 383 dark-store of express delivery and large dark-store infrastructure under Vprok.ru brand 155 • Offering a range of e-grocery services: expr
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 increased 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 – 2020 progress against strategic goals Planet Health Employees Communities -9% 45.5% 77.7% 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: 2022 financial goals
18 2022 financial goals Accelerated revenue growth Capex reduction in absolute terms Focus on cost optimisation & Net financial debt / EBITDA <1.8x FCF management
Slide 19: Q3 2022 Results
19 Q3 2022 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) 18.7% 18.6% 19.5% 1,654 7.4% 7.3% 1,586 6.9% 7.1% 14.7% 6.6% 641 642 1,497 1,459 11.3% 1,412 599 8,640 8,755 596 8,528 8,410 8,212 537 Q3 2021 Q4 2021 Q1 2022 Q2 2
Slide 21: …combined with stable profitability
21 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 19.1% 18.6% 19.2% 14.9% 18.8% 18.6% 18.5% 11.7% 17.2% 16.7% 648.0 647.9 607.5 604.2 113.2 543.6 111.6 111.3 108.1 13.1% 102.1 84.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2022 pre-IFRS
Slide 22: Q3 2022: Adjusted SG&A expense analysis
22 Q3 2022: Adjusted SG&A1 expense analysis Q3 2022 analysis Key Q3 2022 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): the operating leverage effect on the back of accelerated revenue 18.8% growth in Q3 2022 as well as balanced approach to targeted 0.9%
Slide 23: X5 capital expenditures
23 X5 capital expenditures Capex breakdown, 2021 Capex dynamics by year, RUB bln 15% 7.6% 5.5% 4.7% 4.5% 34% 4.4% New store openings 2.2% 11% Refurbishments 98.6 97.9 89.9 83.7 81.1 Logistics 97.9 RUB bln +8.9% y-o-y IT 41.4 Maintenance 10% Other 2017 2018 2019 2020 2021 9M 2022 10% 20% Capex % of s
Slide 24: X5 debt structure
24 X5 debt structure Debt profile Debt portfolio maturity RUB mln 30 Sep 2022 30 Sep 2021 100% 29% Total debt 208,945 242,928 Short-term debt 70,497 67,983 35% % of total debt 33.7% 28.0% Long-term debt 138,448 174,945 33% % of total debt 66.3% 72.0% Net debt (pre-IFRS 16) 169,246 230,031 3% 30 Sep
Slide 25: Appendix
USeroup Appendix
Slide 26: Pyaterochka – key format highlights (Q3 2022)
26 Pyaterochka – key format highlights (Q3 2022) Key results Operating highlights CVP 18,865 stores +13.7% +4.4% 4,500 392 sqm +7.2% y-o-y LFL sales LFL traffic SKUs average selling space 539 RUB bln +8.9% 1,466 mln 50 mln LFL ticket customer visits active loyalty card Revenue +20.3% y-o-y users +10
Slide 27: Perekrestok – key format highlights (Q3 2022)
27 Perekrestok – key format highlights (Q3 2022) Key results Operating highlights CVP 972 stores +6.3% -0.3% 8-15 ths 1,126 sqm -0.8% y-o-y LFL sales LFL traffic SKUs average selling space 89 RUB bln +6.6% 166 mln 14 mln LFL ticket customer visits active loyalty card users Revenue +9.4% y-o-y +2.6%
Slide 28: Chizhik – key format highlights
28 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 29: Express delivery
29 Express delivery Business model overview Key operating metrics Q3 2022 Order made by customer via GMV RUB 10.2 bln mobile app Orders per day 66 ths Average ticket RUB 1,651 Order received at the nearest store Stores 2,633 Click to delivery 50–60 min Order assembled at the store by in-store staff
Slide 30: X5 Investor Relations
X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13147