M.video · RUS:MVID
M.video — M.video-Eldorado — H1 2021 Earnings Presentation
37 slides from M.video's earnings presentation, 2021
Slide 1: M.Video-Eldorado First Half 2021 Financial & Operational Results Update
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE
Slide 2: Disclaimer
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE THE INFORMATION CONTAINED HEREIN HAS BEEN PREPARED BY PJSC “M.VIDEO” IN THAT MEMBER STATE. IN ADDITION, IN THE UNITED KINGDOM, THIS (THE “COMPANY”). THE INFORMATION AND OPINIONS PRESENTED HEREIN ARE BASED PRESENTATION IS ONLY BE
Slide 3: 1H 2021
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 1H 2021 2 0 2 1 3
Slide 4: Gross Merchandise Value (GMV) performance
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE (1) Gross Merchandise Value (GMV) includes purchases in retail stores (including pick up orders), paid and delivered online orders, paid shipments to legal entities from warehouses. Purchases made in stores and online orders may
Slide 5: Assortment and SKU metrics
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 64k 75k >250k T 18.0% 21.0% 27.0% D F 10.1% 10.1% 12.6% 2.3% 2.8% 5.1% Information on # of SKU and share of innovative assortment provided as of 30.06.2021 5
Slide 6: Customer and OneRetail metrics
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 26.2 mn 30.4 mn n/a 47.8% 54.1% n/a 10,294 10,950 n/a 21.8% 30.5% 60.0% (1) Information on Active Identified Customers, OneRetail customers, Share of OneRetail customers, OneRetail customers average ticket provided on a last twe
Slide 7: Key operational highlights
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 29.9% 34.0% >50.0% 83.8% 85.0% >90.0% -1 +36 >500 +2 +28 >100 7
Slide 8: IT development and product upgrades
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Personalized pricing "I'm in the store" mode for Client App other features, (including payment at the shelf) tweaks and OneRetail cart new functionality upgrades Launch of Corporate Digital Academy and Agile school MVP
Slide 9: OneRetail digital features
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Personalized pricing Data driven tools support OneRetail order (create, modify upselling, cross-sales and pay for order anywhere) and better customer interaction In-app loans in the customer app App in Store feature enabling too
Slide 10: AI-based personalized pricing
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE In-house AI-based tool enables consistent personalized pricing offers across mobile platform Personalized pricing based on frequency and value of purchases at M.Video During testing, the feature helped achieve a significant upli
Slide 11: Consumer loans in Customer App
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Consumer loan option integrated into Customer App at transaction stage Lending features will be further developed in next 6-9 months 11
Slide 12: OneRetail order payable anywhere
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Order created for customer in Consultant App can be paid for anywhere (in customer app, at check-out counter or on website) Following payment, customer can pick up order in-store Added convenience helps to enroll new OneRetail c
Slide 13: Consultant App with customer data
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Provide store consultants with access to all relevant customer data Helpful suggestions to facilitate more efficient customer interactions Automated recommendations for store consultant to offer higher-end products and/or additi
Slide 14: Marketplace development
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 3P 1P Available through new and existing vendors Available through SberMegaMarket white- label integration 105 3P partners (total – 1,200) 45 45 30 of online traffic driven 2020 1H 2021 Strategic by marketplace assortment object
Slide 15: Share of premium and innovative assortment in GMV
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Share of premium and innovative assortment in GMV With special Sales growth in smart premium zones home devices vs +30% for Russian market Premium growth in sales assortment of wearables vs +55% for Russian market Growth of serv
Slide 16: ESG highlights
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE • Developed a GHG emissions model (scope 1,2,3) • Supported the creation of an inclusive coworking • Reviewed our commercial websites and mobile using GHG Protocol and IPCC Guidelines to space for disabled individuals by providi
Slide 17: Employee support during COVID-19
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 01 02 03 Expanding employee Providing additional material Making telemedicine insurance programs to support to employees who available across the include post-COVID-19 have contracted COVID-19 country recovery 04 05 06 Hosting w
Slide 18: 1H 2021
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 1H 2021 2 0 2 1 18
Slide 19: Share of total online sales by platform
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Share of TOS Web Platform1 Y-o-Y growth Consultant App Customer App 1H 2020 1H 2021 1H 2020 1H 2021 (1) Web Platform includes sales from website, marketplace, manual orders, vendor catalogue and contact center Source: Company da
Slide 20: Share of OneRetail customers
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Share of OneRetail customers Non-OneRetail OneRetail June 2020 June 2021 Source: Company data Information presented on the slide is related to M.Video-Eldorado Group unless stated otherwise 20
Slide 21: OneRetail share of sales
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Not identified OneRetail OneRetail Non-OneRetail OneRetail Non-OneRetail Non-OneRetail Total Total 2Q (LTM) 2020 2Q (LTM) 2021 2Q (LTM) 2020 2Q (LTM) 2021 (1) Including unidentified transactions Source: Company data 21
Slide 22: Revenue and gross profit
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 22.3% 13.1% 1H 2019 1H 2020 1H 2021 1H 2019 1H 2020 1H 2021 Source: Company data Note: Company financials in accordance with IAS 17 accounting standard, unless stated otherwise 22
Slide 23: Adjusted EBITDA and net profit
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 8.1% 65.0% 1H 2019 1H 2020 1H 2021 1H 2019 1H 2020 1H 2021 Source: Company data. Note: Company financials in accordance with IAS 17 accounting standard, unless stated otherwise (1) IAS 17-Based Adjusted EBITDA excludes proceeds
Slide 24: EBITDA and margin drivers
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 1. Increase in promo activities 2. Higher share of lower-margin products sold 3. Volatile purchasing prices due to persistence of chip shortage/components deficit Source: Company data Note: Company financials in accordance with
Slide 25: Net profit and dividend recommendation
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE (to be submitted to BoD as dividend recommendation) Source: Company data Note: Company financials in accordance with IAS 17 accounting standard, unless stated otherwise (1) IAS 17-Based net profit adjusted for loss from investme
Slide 26: Working capital and cash flow
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Extended periods of payment Lower front/back margin ratio due to deferrals to suppliers in 2020 increase in promo activity that resulted agreed upon in light of COVID-19 in higher accounts receivables balance Source: Company dat
Slide 27: Liquidity and net debt
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 01 +0.4 Additional pool of liquidity created in 1H’20 due to significant drop in sales in 2Q’20 as the result of COVID-19 lockdown restrictions 02 Extended periods of payment deferrals to suppliers in 2020 1H 2019 1H 2020 1H 202
Slide 28: Appendix
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 2 0 2 1 28
Slide 29: EBITDA and net profit bridge
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Source: Company data (1) Includes changes in COGS, advertising and marketing expenses, warehouse services expenses, other operating income as well as other operating expenses (2) Net profit adjusted for loss from investments in
Slide 30: Income statement
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE (VAT excl.) Selling general and administrative expenses (incl. D&A) Other operating income, net D&A Finance income / (cost), net Income tax expense Source: Company data 1) IAS 17-Based Adjusted EBITDA excludes proceeds from sale
Slide 31: Costs as percentage of revenue
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE (VAT excl.) As % of revenue 6,4% 6,3% 6,4% 6,3% As % of revenue 5,4% 5,9% 1,0% 0,7% As % of revenue 1,8% 1,5% 1,8% 1,5% As % of revenue 1,2% 1,0% 1,2% 1,0% As % of revenue 1,2% 1,1% 0,7% 0,6% As % of revenue 0,5% 0,6% 0,5% 0,6%
Slide 32: Balance sheet
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE 31.12.2020 30.06.2021 31.12.2020 Fixed assets 16,465 17,085 16,433 17,025 Intangible assets 73,752 71,314 73,323 70,845 Right-of-use assets - - 67,197 71,593 Other non-current 7,543 8,123 7,685 8,076 Inventory 148,888 146,994 14
Slide 33: Cash flow statement
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Inventory change (2,169) 23,490 (2,169) 23,490 Trade payables (8,262) (30,443) (8,262) (30,246) Others (15,330) 2,989 (15,177) 852 Interest paid (2,152) (2,673) (5,046) (4,935) Income tax paid (3,194) (693) (3,194) (693) CAPEX -
Slide 34: Recycling and e-waste programs
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE Collect used consumer devices Collect recyclable materials In partnership with Duracell from clients in-store or via pick-up in-store for recycling Launched pilot Launched pilot Launched pilot in 4Q 2019 in February 2021 in June
Slide 35: Social and environmental initiatives
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE We aim to assist the most vulnerable members of society during the pandemic and protect the environment. Highlights of 1H 2021 include: including those involved directly in fighting Covid-19 by donating goods worth which enables
Slide 36: Inclusive economy and accessibility
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE We believe in a fair and inclusive economy, which is why we are working to make our stores, websites and products more accessible: We have In 2021, we designed a transparent method of for different groups of people selecting pro
Slide 37: Vaccination support for employees
M.VIDEO-ELDORADO FIRST HALF 2021 FINANCIAL & OPERATIONAL RESULTS UPDATE The Group Promotional videos related to 80% of top managers are vaccinated Direct financial incentives for vaccination on in-store TVs and the against COVID-19 vaccinated employees intranet Top managers have shared their Moscow