Slide 1: Q4 and FY 2023 Operating and Financial Results
Q4 AND FY 2023 OPERATING AND FINANCIAL RESULTS February 2024
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: This document does not constitute or form part of, and should not be because they relate to events and depend on circumstances that may or may not occur the results of the Company's operations presented under IAS 17 after 1 January 2019 construed as an offer for sale or subscri
Slide 3: Key Achievements in Q4 / 12M 2023
KEY ACHIEVEMENTS IN Q4 / 12M 2023 RUB 82bn / RUB 292bn 252 / 751 17.6% Revenue Net store openings(1) Loyal customer base growth year-on-year 35.3% / 34.0% RUB 16bn / RUB 53bn RUB 9bn / RUB 36bn Gross margin EBITDA Net profit Source: Company information, Management Accounts for Q4 2023, FY 2022 and F
Slide 4: Continuous Store Expansion
CONTINUOUS STORE EXPANSION GEOGRAPHICAL COVERAGE (2022 and 2023, eop) LEGEND KEY RUSSIA NORTH-WESTERN FD(1) SIBERIAN FD(1) Russia (Number of stores) +658 +55 +104 CENTRAL FD(1) 5,756 521 576 699 +xx 5,098 595 +182 xx xx 1,650 1,468 FAR-EASTERN FD(1) +19 SOUTHERN FD(1) 119 100 +82 718 636 URALS FD(1)
Slide 5: Continuous Store Expansion
CONTINUOUS STORE EXPANSION FIX PRICE STORE PORTFOLIO GROWTH SELLING SPACE EXPANSION (Number of stores) (Thous. sqm) +13.5% +13.3% 1,391 6,414 1,225 156 5,663 703 138 624 1,234 5,711 1,087 5,039 31 December 2022 31 December 2023 31 December 2022 31 December 2023 Company-operated Franchised Company-op
Slide 6: LFL Performance
LFL PERFORMANCE 2-YEAR STACKED LFL SALES GROWTH(1)(2) COMMENTS ON QUARTERLY DYNAMICS LFL Sales (Current Year) LFL Sales (Prior Year) • In Q4 2023, LFL sales were 0.9% lower y-o-y due to softer consumer demand amid continued market 19.4% 24.9% 29.0% 16.0% 7.2% 5.9% 6.3% 8.0% 3.0% uncertainty. In a mi
Slide 7: Extended CVP and Continued Robust Price Advantage
EXTENDED CVP AND CONTINUED ROBUST PRICE ADVANTAGE 68% OF ASSORTMENT UNDER RUB 99(1) RETAIL SALES MIX % of retail sales % of SKU Q4 2022 Q4 2023 0.1% 0.1% 0.1% 0.03% 4% 4% 15% 15% 8% 18% 11% 26% 25% 24% Food 37% 47% 36% 20% 25% 25% 48% Drogerie 21% 37% 31% 12% 10% 48% 50% Non-food Q4 2022 Q4 2023 Q4
Slide 8: Revenue Growth and Robust Profitability
REVENUE GROWTH AND ROBUST PROFITABILITY TOTAL REVENUE GROSS PROFIT (RUBm) (RUBm) LFL Sales Gross profit 35.3% 33.1% 34.0% 3.9% (0.9)% 10.1% (4.1)% 34.0% dynamics margin + 5.1% + 7.8% + 7.8% 291,865 277,644 99,172 + 11.7% 32,898 91,994 31,432 81,669 75,757 28,794 8,907 25,789 8,406 246,212 258,967 67
Slide 9: Revenue Growth and Robust Profitability (Cont'd)
REVENUE GROWTH AND ROBUST PROFITABILITY (CONT’D) ADJUSTED EBITDA (IFRS 16) OPERATING PROFIT (RUBm) (RUBm) Adjusted 19.9% 19.5% 19.5% 18.6% Operating 15.3% 14.2% 14.8% 13.0% EBITDA margin profit margin (IFRS 16) + 0.03% (7.6)% 54,198 54,212 41,060 + 5.8% + 0.1% 37,927 15,071 15,938 11,623 11,632 Q4 2
Slide 10: SG&A Expenses Analysis
SG&A EXPENSES ANALYSIS SG&A BREAKDOWN COMMENTS (% of revenue) • Selling, general and administrative expenses (SG&A) excluding LTIP and D&A expenses rose 142 bps y-o-y to 16.0% of revenue due to higher staff costs, advertising IFRS 16 expenditures, bank charges and other expenses as well as the negat
Slide 11: Capital Expenditures to Support Further Growth
CAPITAL EXPENDITURES TO SUPPORT FURTHER GROWTH CAPEX(1) CAPEX COMPOSITION (RUBm) (Q4 2023, %) 14% New stores openings CAPEX 6% 8.6% 1.9% 4.3% 2.2% (% of revenue) RUB DC 1.5bn 80% IT and Other 12,015 COMMENTS 6,558 • CAPEX for Q4 2023 amounted to RUB 1.5 billion, down from RUB 6.5 6,518 billion in Q4
Slide 12: Net Working Capital Dynamics
NET WORKING CAPITAL DYNAMICS NET TRADE WORKING CAPITAL DEVELOPMENT(1) ROBUST INVENTORY DAYS AND DAYS PAYABLE LEVELS (RUB m) Inventory days(3) (days) and Days payable(4) (days) NTWC as % Inventory days Days payable 3.3% 5.0% of revenue (2) FY 2022 80 FY 2022 68 41,020 47,957 FY 2023 84 FY 2023 67 14,
Slide 13: Conservative Debt Level and Superior Cash Flow Generation
CONCERVATIVE DEBT LEVEL AND SUPERIOR CASH FLOW GENERATION NET DEBT / (CASH)(1) FCF DYNAMICS(3) (RUB m) (RUB m) Leverage % of ratio(2) (0.04)x (0.6)x revenue 9.0% 11.2% 32,572 24,857 11,441 -- (5,000) (1,656) 9,903 (10 ,000) 21,131 (15 ,000) 14,954 (20 ,000) FY 2022 FY 2023 (22,644) (25 ,000) FY 2022