X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q3 2012 Earnings Presentation
22 slides from X5 Corporate Center's earnings presentation, Nov 20, 2012
Slide 1: Third Quarter 2012 Financial Results Conference Call
1 Third Quarter 2012 Financial Results Conference Call Kieran Balfe, X5 Chief Financial Officer Moscow, Russian Federation 20 November 2012
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 – 9M & Q3 2012
Summary Highlights – 9M & Q3 2012 3 Our Business • Russia's largest food retailer in terms of sales – 5.7% of total food retail market(1) • Multi-format brand retail operator: Pyaterochka (Soft Discounter), Perekrestok (Supermarket), Karusel (Hypermarket) plus assorted brand name convenience stores
Slide 4: Regional Presence
Regional Presence 4 Moscow & Central region Discounters: 1,309 Stores St. Petersburg & Supermarkets: 200 Hypermarkets: 17 North-West region Convenience stores: 110 • More than 662 locations Discounters: 484 Supermarkets: 35 Multi-format presence in 61 cities of European Russia, Hypermarkets: 17 Pe
Slide 5: Key Macroeconomic Indicators
Key Macroeconomic Indicators 5 % change, y-o-y JAN FEB MAR APR MAY JUN JUL AUG SEP (when applicable) 2012 2012 2012 2012 2012 2012 2012 2012 2012 Retail turnover 7.4% 7.9% 7.4% 6.8% 7.1% 7.1% 5.4% 4.3% 4.4% Food retail turnover, incl. drinks and tobacco 5.2% 5.2% 5.3% 4.3% 5.1% 4.3% 1.6% 0.8% 0.5% I
Slide 6: Financial Overview – Q3 2012 vs. Q3 2011
6 Financial Overview – Q3 2012 vs. Q3 2011
Slide 7: Financial Highlights
Financial Highlights 7 USD mln Q-o-Q Y-o-Y Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 (when applicable) +/( - )% +/( - )% Retail sales 3,610.7 3,954.6 3,862.0 3,981.8 3,610.4 (9.3) % (0.0) % Total revenues 3,623.0 3,965.3 3,870.7 3,987.9 3,616.7 (9.3) % (0.2) % COGS 2,784.7 2,984.4 2,923.5 3,077.6 2,79
Slide 8: Sales & EBITDA Breakdown
Sales & EBITDA Breakdown 8 Change in net retail sales by format, RUB mln Net retail sales grew by 10,452.1 1,348.1 541.0 123.7 10.2% in RUB terms (1,562.6) primarily due to soft discounters and 115,881.6 supermarkets’ sales 104,979.2 growth offset by a decrease in hypermarkets sales Net retail sales
Slide 9: SG&A Breakdown
SG&A Breakdown 9 % of Net % of Net % of Net % of Net Q3 2011 Q3 2012 USD mln Q2 2012 Q3 2012 Sales Sales Sales Sales (318.8) 8.8% (290.0) 8.0% Staff Costs (324.5) 8.1% (290.0) 8.0% (145.9) 4.0% (145.9) 4.0% Lease Expenses (144.6) 3.6% (145.9) 4.0% (54.2) 1.5% (68.2) 1.9% Other Store Costs (61.9) 1.6
Slide 10: Cash Flow Highlights
Cash Flow Highlights 10 USD mln Q3 2012 Q3 2011 +/( - ) +/( - )% Net Cash Flows (Used in)/Generated from Operating Activities 131.4 308.6 (177.2) (57.4) % CFO before Changes in Working Capital 221.9 224.4 (2.5) (1.1) % Change in Working Capital 24.3 181.0 (156.7) (86.6) % Net Interest and Income Tax
Slide 11: Capital Expenditures Overview
Capital Expenditures Overview 11 Q3 2012 CapEx Breakdown (USD 231.9 mn) (1) Net Cash Flows From Investing Activities, USD mln 397.6 IT &Other 5% Reconstruction & Maintenance 16% New Store 226.6 Openings 194.5 195.4 Logistics 76% 171.6 180.4 3% 98.2 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3
Slide 12: Condensed Balance Sheet
Condensed Balance Sheet 12 USD mln 30-Sep-12 31-Dec-11 +/( - ) +/( - )% Total current assets 2,034.1 2,041.1 (7.0) (0.3) % incl. Cash & cash equivalents 222.5 385.0 (162.5) (42.2) % incl. Inventories 868.9 895.0 (26.1) (2.9) % Total non-current assets 7,303.9 6,769.1 534.8 7.9 % incl. Net PP&E 4,245
Slide 13: Debt Structure
Debt Structure 13 Debt profile Debt portfolio maturity, USD mln (3) USD mln 30-Jun-12 % in total 30-Sep-12 % in total 28% 25% Total Debt 3,691.4 4,036.8 21% 19% 12% Short-Term Debt 1,170.1 31.7% 1,404.8 34.8% Long-Term Debt 2,521.3 68.3% 2,632.0 65.2% Net Debt / (Net Cash) 3,525.3 3,814.3 7% 16% Den
Slide 14: Appendix
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Slide 15: 2012 YTD Expansion Update
2012 YTD Expansion Update Number of Stores Opened, net Selling Space Added, net sq.m. + 50,645 sq.m. + 184 stores 149,162 538 98,517 354 10M 2011 10M 2012 10M 2011 10M 2012 Acceleration of expansion y-o-y in 10M 2012: ~50% more stores opened adding ~50% more selling space 15
Slide 16: 2012 YTD Net RUR Retail Sales Dynamics
2012 YTD Net RUR Retail Sales Dynamics Total Net Retail Sales Growth, % y-o-y Soft Discounter Net Retail Sales Growth, % y-o-y 22 % 15 % 17 % 18 % 17 % 11 % 11 % 10 % 10 % 10 % 13 % 13 % 12 % 11 % 10 % 8% 4% 5% 5% 5% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Sup
Slide 17: 2012 YTD RUR LFL Sales Dynamics
2012 YTD RUR LFL Sales Dynamics Total LFL Sales Growth, % Soft Discounters LFL Sales Growth, % 3% 7% 1% 3% 3% 3% 2% 2% (1 %) (0 %) (0 %) (2 %) (1 %) (3 %) (3 %) (3 %) (3 %) (4 %) (5 %) (5 %) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Supermarkets LFL Sales Growth
Slide 18: 2012 YTD Total RUR Sales: Traffic and Basket
2012 YTD Total RUR Sales: Traffic and Basket Total X5 Sales Growth, % Soft Discounters Sales Growth, % Total basket growth, % Total traffic growth, % Total basket growth, % Total traffic growth, % 16% 20% 14% 12% 12% 17% 17% 14% 9% 8% 10% 10% 10% 14% 14% 14% 12% 11% 6% 8% 3% 0% 0% 0% 2% 3% 1% 2% 0%
Slide 19: 2012 YTD LFL RUR Sales: Traffic & Basket
2012 YTD LFL RUR Sales: Traffic & Basket Total X5 LFL Sales Growth, % Soft Discounters LFL Sales Growth, % LFL basket growth, % LFL traffic growth, % LFL basket growth, % LFL traffic growth, % 1% 3% 3% 1% 2% -1% -2% 0% 1% 2% 2% 5% 1% 4% 5% 4% 5% 3% 0% 0% 2% -5% -4% -1% 0% -3% -3% -2% -2% 1% -5% -2%
Slide 20: 2012 YTD Convenience Store RUR Results
2012 YTD Convenience Store RUR Results Net Retail Sales Growth, % LFL Sales Growth, % 16 % 80 % 82 % 15 % 69 % 73 % 61 % 10 % 57 % 9% 9% 43 % 43 % 44 % 7% 6% 27 % 5% 4% 2% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Net Retail Sales, mln Comments • Rapidly develop
Slide 21: 2012 YTD Customer Visits Dynamics
2012 YTD Customer Visits Dynamics Total X5, mln customer visits Soft Discounters, mln customer visits 151.3 159.5 152.4 153.6 151.4 149.0 155.9 152.0 130.5 132.9 114.7 115.4 120.9 115.5 116.7 114.4 112.9 117.7 96.2 100.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 22: Contact Information
Contact Information IR Department Contact Details Gregory Madick Anastasiya Kvon Andrey Napolnov Executive IR Director IR Director Senior IR manager Tel.: +7 (495) 502 97 83 Tel.: +7 (495) 792 3511 Tel.: +7 (495) 662 8888 ext. 22-455 Mob.: +7 (910) 459 73 56 Mob.: +7 (926) 358 8545 Mob.: +7 (926) 65