Slide 1: Q2 and H1 2023 Operating and Financial Results
Q2 AND H1 2023 OPERATING AND FINANCIAL RESULTS September 2023
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 H1 2023
KEY ACHIEVEMENTS IN H1 2023 RUB 136bn 376 25.4% Revenue Net store openings(1) Loyal customer base growth year-on-year 33.3% RUB 24bn RUB 20bn Gross margin EBITDA Net profit Source: Company information, Reviewed IFRS accounts for H1 2022 and H1 2023 Notes: 1 Including Company-operated and franchise s
Slide 4: Continuous Store Expansion
CONTINUOUS STORE EXPANSION GEOGRAPGICAL COVERAGE (2022 and H1 2023, eop) LEGEND KEY RUSSIA NORTH-WESTERN FD(1) SIBERIAN FD(1) Russia (Number of stores) +330 +32 +49 CENTRAL FD(1) +xx 5,428 553 644 5,098 595 +86 xx 521 xx 1,554 1,468 FAR-EASTERN FD(1) +8 SOUTHERN FD(1) 108 100 +44 680 636 URALS FD(1)
Slide 5: Continuous Store Expansion
CONTINUOUS STORE EXPANSION FIX PRICE STORE PORTFOLIO GROWTH SELLING SPACE EXPANSION (Number of stores) (Thous. sqm) +15.0% +14.7% 1,308 6,039 1,137 148 5,267 667 128 578 1,160 5,372 1,009 4,689 30 June 2022 30 June 2023 30 June 2022 30 June 2023 Company-operated Franchised Company-operated Franchise
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 Q2 2023, LFL sales were 7.9% lower y-o-y on the back of the high base effect from the previous year. The LFL average ticket grew by 1.8%; LFL traffic was 9.6% low
Slide 7: Extended CVP and Continued Robust Price Advantage
EXTENDED CVP AND CONTINUED ROBUST PRICE ADVANTAGE 80% OF ASSORTMENT UNDER RUB 99(1) RETAIL SALES MIX % of retail sales % of SKU Q2 2022 Q2 2023 0.4% 0.0% 0.6% 0.0% 3% 13% 14% 14% 9% 31% 28% 21% 20% Food 22% 42% 44% 26% 28% 50% 47% 8% Drogerie 15% 9% 13% 16% 38% 43% 44% Non-food Q2 2022 Q2 2023 Q2 20
Slide 8: Revenue Growth and Robust Profitability
REVENUE GROWTH AND ROBUST PROFITABILITY TOTAL REVENUE GROSS PROFIT (RUB m) (RUB m) LFL Sales growth 13.5% (6.6)% Gross profit margin 33.0% 33.3% + 3.0% + 3.8% 131,788 135,677 45,148 43,477 15,100 15,591 116,688 120,086 H1 2022 H1 2023 H1 2022 H1 2023 Retail Wholesale Source: Reviewed IFRS accounts f
Slide 9: Revenue Growth and Robust Profitability (Cont'd)
REVENUE GROWTH AND ROBUST PROFITABILITY (CONT’D) ADJUSTED EBITDA (IFRS 16) (1) OPERATING PROFIT (RUB m) (RUB m) Adjusted EBITDA margin Operating profit margin 19.7% 17.8% 14.9% 12.0% (IFRS 16) (7.3)% (16.8)% 25,991 24,093 19,618 16,327 H1 2022 H1 2023 H1 2022 H1 2023 Source: Reviewed IFRS accounts f
Slide 10: SG&A Expenses Analysis
SG&A EXPENSES ANALYSIS SG&A BREAKDOWN(1) COMMENTS (% of revenue) • SG&A costs (excl. LTIP expense and D&A) as a percentage of revenue totalled IFRS 16 15.7%, compared to 13.8% a year ago, driven by negative operational leverage effect and increased staff costs 21.5% • Staff costs (excl. LTIP) as a p
Slide 11: Capital Expenditures to Support Further Growth
CAPITAL EXPENDITURES TO SUPPORT FURTHER GROWTH CAPEX(1) CAPEX COMPOSITION (RUB bn) (H1 2023, %) 14% 0.3% New stores openings CAPEX DC (% of revenue) 2.8% 2.5% RUB 3.4bn 54% Refurbishments 32% IT and Other COMMENTS 3.7 • CAPEX for H1 2023 was RUB 3.4 billion, down from RUB 3.7 billion in H1 2022, due
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(2) (days) and Days payable(3) (days) NTWC as Inventory days Days payable % of 7.0% 4.2% revenue H1 2022 86 H1 2022 63 42,583 40,026 17,992 H1 2023 82 H1 2023 65
Slide 13: Conservative Debt Level and Superior Cash Flow Generation
CONVERVATIVE DEBT LEVEL AND SUPERIOR CASH FLOW GENERATION NET DEBT / (CASH)(1) FCF DYNAMICS(3) (RUB m) (RUB m) Leverage % of (0.04)x (0.2)x 3.6% 9.0% 10.1% ratio(2) 0.5x revenue 24,857 22500.0 22000.0 21500.0 20,564 9,903 13,701 21000.0 20500.0 20000.0 19500.0 19000.0 18500.0 18000.0 17500.0 17000.0