X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2009)
16 slides from X5 Corporate Center's investor day presentation, Oct 20, 2009
Slide 1: Customer Focus: Hypermarkets
Customer Focus: Hypermarkets Tatiana Ponomareva General Director of Hypermarket Format X5 Russian Retail Days 20 October 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: Repositioning Hypermarkets
Repositioning Hypermarkets Significant Progress since June 2008 Acquisition of Karusel Q3 & Q4 2008 Q1 2009 Q1 2009 - Present Format Smooth & Rapid Perekrestok Repositioning & Integration Hypermarkets Brand-Building Rebranding with Customers • Stores • 16 stores • Adjusting • Publicity • Processes r
Slide 4: Hypermarkets Today
Hypermarkets Today p. 4
Slide 5: Key Format Statistics
Key Format Statistics • Karusel’s net retail sales for 2008 surged 34% y-o-y on pro-forma basis to RUR 41,707 mln (USD 1,678 mln) • Net retail sales for 9M 2009 were up 28% y-o-y on pro-forma basis; totaled RUR 37,883 mln (USD 1,166 mln) • Karusel’s share in total X5 Net Retail Sales for 9M 2009 was
Slide 6: Our Value Proposition
Our Value Proposition Target Customer Base Income per month High Above 84,000 • 120 million Russians RUR 22,000- Above • Looking for wide assortment and 84,000 average – value in food Average • Looking for attractive non-food RUR 14,000 – 22,000 selection and prices Low to below average • Drive to s
Slide 7: We Know Our Customers
We Know Our Customers Karusel Customer Profile (Moscow) GENDER AGE INCOME 10-15 Per Month 16-20 66-70 5% 6% 21-25 7% RUR 9,000 RUR 7,000 12% 56-65 -15,000 18% 21% -9,000 Male 15% RUR 15,000- Female 44% 26-35 20,000 12% 18% 56% 17% 11% Up to 7,000 46-55 RUR 20,000- 16% 36-45 21% 30,000 21% > RUR 25,0
Slide 8: Growing Regional Presence
Growing Regional Presence St. Pet & NW – 16 stores Yaroslavl – 2 stores 9M’09 Net Retail Sales by Region Tver – 1 store N. Novgorod, Regions 29% & Dzerzhinsk 5 stores 31% Moscow & Moscow & the region the region– Cheboksary – 10 stores 1 store Voronezh, Lipetsk – Izhevsk – 3 stores 1 store 40% St. Pe
Slide 9: Competitive Landscape
Competitive Landscape Key Competitors Metro, Real Auchan Lenta Okey FY 2008 Average Store 2008 Share in Top-5 Sales Gross Sales, RUR EoP Store Total Selling Selling Area mln Count Area (sqm) (sqm) 8% OKey Karusel 11% Metro+Real 1. Metro (incl. Real) 143,811 60 (12) 489,602 (97,500) 8,160 (8,125) 35%
Slide 10: Breakthrough in Hypermarkets…
Breakthrough in Hypermarkets… …in 2008 thanks to Acquisition of Karusel and Strong Organic Growth Ever Since Acquisition of Karusel Substantially After Smooth Integration and Rebranding, X5 Strengthened X5’s Hypermarkets Business Targets Dramatic Improvements in LFL Performance Number Of Stores, EoP
Slide 11: Breakthrough in Hypermarkets…
Breakthrough in Hypermarkets… New Openings Celebrated Together with Our Customers p. 11
Slide 12: Our Strategic Vision
Our Strategic Vision Key Medium-Term Objectives • Enhancing competitive positions in existing markets • Top-Line Growth • Maximizing scale leverage Selective Growth • Regional Scale • Capitalizing on current favourable real estate market conditions to secure best locations (on rental basis) • Market
Slide 13: Evolving Our Assortment
Evolving Our Assortment Key Product Categories, 2009 YTD Assortment Strategy • Wide, deep, complementary and complex Dairy 11% assortment Non-food 21% • Strengthening of strategic categories: • Fresh Meat (fresh & Fish & Frozen processed) 19% 6% • Fruit&Veg • Fish Spirits and Сonservation & Alcohol
Slide 14: Modern Retail Techniques…
Modern Retail Techniques… …to Drive Check and Traffic Regular Promitions Timing: every two weeks (26 times a year) # of SKUs: 180 Price Reduction: 20 to 50% “Lethal” Offers Timing: each week Mechanism: staples offered with 30-60% price cuts Seasonal Offers • Variety of events throughout the year, e.
Slide 15: Our Long-Term Vision
Our Long-Term Vision KPIs for Long-Term Growth • Strong top-line growth through Sales – Selective expansion – Improvement in sales per sq. m • Invest in long-term customer loyalty Gross Margin • Grow customer traffic • Purchasing & logistics enhancements Returns • OpEx efficiencies to offset gross m
Slide 16: THANK YOU!
YX5RETAILGROUP THANK YOU! @ p. 16