X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2009)
11 slides from X5 Corporate Center's investor day presentation, Oct 20, 2009
Slide 1: Financial Discipline
Financial Discipline Evgeny Kornilov Deputy CEO, Chief Financial Officer 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: Financial Discipline: Areas of Focus
Control Financial of Performance Discipline Cash Gross Generation Margin Disciplined SG&A Liquidity From Operations Growth Management Areas of Focus • Ensure sustainable • Focus on discounters, • Optimize debt structure operational primarily rented with focus on maturity performance profile improvem
Slide 4: X5's Top Line Growth Remains Solid Despite Tough Macro-Economic Environment
X5’s Top Line Growth… … Remains Solid Despite Tough Macro-Economic Environment Net Sales, consolidation (1) Net Sales, consolidation (1) RUR mln USD mln + 38% 196,615 + 6% 5,923 6,053 142,427 9M 2008 9M 2009 9M 2008 9M 2009 Net Sales, pro-forma (2) Net Sales, pro-forma (2) RUR mln USD mln 196,615 -7
Slide 5: Efficiency Focus Enables Gross Margin Investment in Customer Loyalty
As X5 Efficiency Focus… Enables for Gross Margin Investment in Customer Loyalty SG&A(1) as % of Sales Key SG&A Lines 19.1% 19.2% 18.0% 17.1% Other 3.4% 18.3% 3.6% 18.0% 18.1% 18.0% Utilities 1.6% 1.8% 17.2% Lease 3.0% 17.0% 17.0% 3.1% Staff 10.0% costs 8.6% Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08
Slide 6: Efficiency Focus Supports Stable EBITDA Margin
X5 Efficiency Focus… Supports Stable EBITDA Margin and Helps Maximize Operating Cash Flow Gross Profit & Gross Margin EBITDA & EBITDA Margin USD mln % USD mln % 25.8% 9.0% -30 bp 8.7% -120 bp 24.6% 1,115 979 388 347 H1 2008 H1 2009 H1 2008 H1 2009 (1) All P&L numbers are provided on pro-forma basis,
Slide 7: Strong Operating Cash Flow Offset by Working Capital Seasonality
Strong Operating Cash Flow… …Offset by Working Capital Seasonality % change % change % change % change USD mln Q2 2009 Q2 2008 H1 2009 H1 2008 USD RUR USD RUR Net Cash Flows from Operating Activities 77.9 77.8 0% 41% 39.5 112.1 (65%) (51%) Net Cash from Operating Activities before Changes in Working
Slide 8: Working Capital Management
Working Capital Management H1'08 Net Working Capital Cycle (days) H1'09 Net Working Capital Cycle (days) 40 40 30 19 30 11 20 20 (79) (74) 10 23 10 28 NWC Cycle NWC Cycle 0 0 Trade Trade Accounts Accounts Inventories Accounts Inventories Accounts Receivable Receivable (15) Payable* (10) Payable* (37
Slide 9: Disciplined Growth
Disciplined Growth X5’s Approach is Aimed at Balancing Growth & Returns Growth Return on Potential Investments X5 Expansion Strategy X5 Investment Efficiency Discounters Requirements • Accelerating expansion in 2010 and beyond • Each location considered for optimal format to maximize the Company’s b
Slide 10: Liquidity Management
Liquidity Management In H1 X5: Debt Maturity Profile as at 30.06.09 • Completely eliminated its short-term FX exposure by repaying Denominated in RUR Denominated in USD short-term USD-denominated debt USD mln 1,396 • Placed 7-year RUR 8 bln corporate bonds with a put option in 2 years. Proceeds were
Slide 11: Thank You!
YX5RETAILGROUP THANK YOU! @ p.11