X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — X5 Russian Retail Days 2009
14 slides from X5 Corporate Center's conference presentation, Oct 20, 2009
Slide 1: X5 Business Model: Multi-Format Leadership & Operational Excellence
X5 Business Model: Multi-Format Leadership & Operational Excellence Lev Khasis CEO 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: X5's Strategic Priorities
X5’s Strategic Priorities • Build multi-format success • Strengthen value propositions • Drive LFL and top line growth Customer Operational Financial Focus Excellence Discipline Profitable Growth & Long-Term Leadership p. 3
Slide 4: Consumer Confidence Was Substantially Affected by the Economic Crisis
Consumer Confidence…. …Was Substantially Affected by the Economic Crisis Consumer Confidence at Lowest Level Since ‘99 • Russian consumer confidence index (CCI) Rosstat’s Consumer Confidence Index(1) dropped to -35% in Q1 2009 5% • It is the lowest level of CCI since Q4 1999 -5% -15% • In Q2 09 and
Slide 5: X5's Competitive Position
X5’s Competitive Position X5’s LFL Performance is Stable vs Competition Thanks to Multi-Format Approach X5 LFL Performance vs Competition LFL Sales Growth 25% Magnit 22% Seventh Continent 20% 20% Dixy(1) 19% X5 14% 15% 12% 11% 13% 10% 12% 10% 7% 5% 5% 5% 3% 2% 1% 0% FY 2008 Q1 2009 H1 2009 9M 2009 (
Slide 6: Value Propositions
Executing for Long-Term Multi-Format Success Fine-Tuning of Formats’ Value Proposition to Match Long-Term Leadership Goal Soft • Best price in the market on 100% of assortment Lower-income & Discounters • Assortment optimization towards lower price points price-focused customers • Private label deve
Slide 7: X5's Strategic Priorities
X5’s Strategic Priorities • Build supply chain advantages • Drive efficiency and margins • Ensure support for long-term growth Customer Operational Financial Focus Excellence Discipline Profitable Growth & Long-Term Leadership p. 7
Slide 8: X5's Strategic Efficiency Program
X5’s Strategic Efficiency Program Supply Chain Management Efficiency Asset IT Systems Efficiency Integration Operational Excellence In-Store Business Labour Processes Productivity Improvement p. 8
Slide 9: Strategic Efficiency Program Will Impact Every Area of X5's Business
Strategic Efficiency Program… …will Impact Every Area of X5’s Business Support of Working Long-Term Sales Cost Capital Scalable Growth Savings Project Improvement Expansion Efficient Supply Chain Management IT Systems Integration Business Processes Improvement Labour Productivity Improvement Efficie
Slide 10: Strategic Efficiency Program Roadmap
Strategic Efficiency Program Roadmap 2008 2009 2010 2011 Project Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Supply Chain Analysis and Management strategy “Quick Wins” Roll-out adjustment IT Systems Integration Business Support Functions Processes Roll-out Core Processes Labour Analysis and Testing in Produ
Slide 11: Efficiency Program Is Multi-Year but Already Delivering Results
X5’s Strategic Efficiency Program…. …is Multi-Year but We Are Already Delivering Results SG&A(1) as % of Sales 19.1% 19.2% 18.3% 18.1% 18.0% 18.0% 17.0% 17.2% 17.0% Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 (1) Excluding Depreciation and Amortization p. 11
Slide 12: X5's Strategic Priorities
X5’s Strategic Priorities • Cash generation • Disciplined growth • Liquidity management Customer Operational Financial Focus Excellence Discipline Profitable Growth & Long-Term Leadership p. 12
Slide 13: Consumer Confidence Was Substantially Affected by the Economic Crisis
Consumer Confidence…. …Was Substantially Affected by the Economic Crisis Consumer Confidence at Lowest Level Since ‘99 • Russian consumer confidence index (CCI) Rosstat’s Consumer Confidence Index(1) dropped to -35% in Q1 2009 5% • It is the lowest level of CCI since Q4 1999 -5% -15% • In Q2 09 and
Slide 14: Thank You!
YX5RETAILGROUP THANK YOU! @ p.14