Slide 1: Investor Presentation
Ucroup Investor Presentation
Slide 2: Disclaimer
2 Disclaimer This presentation does not constitute or form part of and This presentation includes statements that are, or may The information and opinions contained in this should not be construed as an advertisement of be deemed to be, “forward- looking statements”, with document are provided as at
Slide 3: X5 is a leading Russian food retailer: H1 2023 Highlights
3 X5 is a leading Russian food retailer H1 2023 Highlights #1 Russian 13.2% market share1 22,682 stores >358 ths food retailer by revenue vs 9.5% in 2017 in 72 Russian regions employees +14.7% y-o-y Loyal 72.5 mln 21.4 mln >19 mln customer base active loyalty card users MAUs of X5 digital services a
Slide 4: X5 businesses
X5 businesses 64 Dark kitchens (incl. 3 franchisees) 956 Loyalty programme Supermarkets 596 Stores 20,248 Proximity stores Express delivery 6,509 Stores 45 Dark stores Digital Subscription service 809 24,494 Hard discounter stores Pickup points and parcel lockers 3 Large dark stores
Slide 5: Pyaterochka
5 Pyaterochka Proximity stores 79 % Share of revenue (H1 2023) 20,248 >4 THS 390 SQM Stores SKUs Average selling space
Slide 6: Perekrestok
6 Perekrestok Supermarkets 14 % Share of revenue (H1 2023) 956 8–15 THS 1,116 SQM Stores SKUs Average selling space
Slide 7: Chizhik
7 Chizhik Hard discounter stores 3% Share of revenue (H1 2023) 809 750–800 296 SQM Stores SKUs Average selling space
Slide 8: Track record of strong operational performance…
8 Track record of strong operational performance… Net retail sales dynamics, RUB bln 18.3% Selling space, ths sqm 8.3% CAGR 2018-2022: 14.2% CAGR 2018-2022: 9.0% 9,107 2,602 8,410 7,840 2,200 7,239 1,973 6,464 1,728 1,525 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 LFL sales, % y-o-y growth Nu
Slide 9: …supported by robust profitability
9 …supported by robust profitability Revenue CAGR exceeding 14% in 2018-22 Adj. ROIC2 has increased by 5 p.p. since CAGR 2018-2022: 14.2% 18.2% 2018 18.5% 2,605 17.1% 2,205 16.1% 1,978 1,734 14.5% 1,533 13.2% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Adj. EBITDA margin1 consistently above 7%
Slide 10: X5 uses its core strengths to create upside potential…
10 X5 uses its core strengths to create upside potential… Our strengths Upside potential Diverse and reliable supply base Strong brands Driving LFL sales growth above food CPI • X5 successfully partners with the largest level X5 brands were among the top Russian FMCG and grocery suppliers, relying u
Slide 11: …and is committed to key strategic objectives
11 …and is committed to key strategic objectives 1 Leadership in the food market 2 Digitalisation • Focus on the largest and fastest-growing market segments: • Focus on express delivery from stores and dark stores, the convenience and hard discounters largest and fastest-growing segment of e-grocery
Slide 12: Focus on the fastest-growing market segment
12 1 Focus on the fastest-growing market segment Diverse grocery business with growth potential across convenience, hard discounter and online segments 2022 2023E 4 p.p. 20% 16% 1 p.p. 8% 45% 3 p.p. 8% 49% 1 p.p. 3% 2% 1 p.p. 8% 7% 17% 17% 72% 76% 4 p.p. share of grocery market 1 p.p. share of groce
Slide 13: Market consolidation is the key source of growth for the top players
13 1 Market consolidation is the key source of growth for the top players Potential for growth in the market shares of top-5 players* Continued shift to modern trade and the growing role of nationwide players 76% 75% Globus Svaz 1.7% 7.0% 24% 21% 22% 20% Aldi 26% Tesco 13.3% 9.5% 62% 61% Auchan 57%
Slide 14: Growth and profitability supported by improving sales density
14 1 Growth and profitability supported by improving sales density Maintain sales density leadership in proximity segment in key geographies (Moscow and St Petersburg) Unit: ’000 RUB/sqm (annualised) Overall +8.8% Moscow & Moscow region +3.8% 312 305 411 413 414 300 407 295 287 399 Q2 2022 Q3 2022 Q
Slide 15: X5 is among the leaders in e-grocery
15 2 X5 is among the leaders in e-grocery Fastest-growing food retail segment • X5 Digital oversees express delivery technology platform, small RUB bln dark-store of express delivery and large dark-store infrastructure under Vprok.ru brand +63% • Offering a range of e-grocery services: express deliv
Slide 16: Focus on efficiency
16 3 Focus on efficiency Key EBITDA drivers Capex drivers Private labels and direct import Regional growth contribution Continue ambitious space Smart refurbishments share growth expansion Delivering assortment differentiation and EBITDA margin in new regions increase Focus on Pyaterochka proximity
Slide 17: ESG is becoming a core element of X5's strategy
17 4 ESG is becoming a core element of X5’s strategy – 2021 progress against strategic goals Planet Health Employees Communities -9% 45.5% 82.5% 100% GHG emissions (Scope 1 + Scope 2) Share of FRESH and F&V products 3 Employee engagement of Pyaterochka stores engage in the Help for per sqm of sellin
Slide 18: Q2 2023 Results
USeroup Q2 2023 Results
Slide 19: Double-digit top-line growth supported by strong LFL sales dynamics…
19 Double-digit top-line growth supported by strong LFL sales dynamics… Net retail sales1 Traffic, mln customers Net selling space (eop) 18.6% 19.5% 16.5% 19.2% 10.4% 15.7% 1,870 1,654 1,648 1,595 8.3% 1,586 7.9% 765 9,541 7.1% 6.6% 698 9,107 9,203 689 641 642 8,755 8,640 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 20: …combined with stable profitability
20 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 18.6% 19.2% 19.2% 16.1% 15.2% 772.0 18.0% 705.2 16.7% 17.2% 17.0% 696.4 16.0% 648.0 647.9 126.7 129.4 131.0 13.2% 111.3 108.1 102.3 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2023 pre-IFRS
Slide 21: Q2 2023: Adjusted SG&A expense analysis
21 Q2 2023: Adjusted SG&A1 expense analysis Q2 2023 analysis Key Q2 2023 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): a negative operating leverage effect. Lease expenses: a positive operating leverage effect for fixed lease rates. 16.7% 17.0% 28 b.p. 0
Slide 22: X5 capital expenditures
22 X5 capital expenditures Capex breakdown, 2022 Capex dynamics by year, RUB bln 24% 7.6% 5.5% 4.7% 4.5% 4.4% New store openings 3.1% 38% Refurbishments 98.6 97.9 89.9 83.7 81.1 81.6 Logistics 81.6 RUB bln -16.6% y-o-y IT Maintenance 12% Other, including new business 2017 2018 2019 2020 2021 2022 13
Slide 23: X5 debt structure
23 X5 debt structure Debt profile Debt portfolio maturity RUB mln 30 Jun 2023 30 Jun 2022 100% 22% Total debt 228,985 243,928 Short-term debt 109,997 60,490 44% % of total debt 48.0% 24.8% Long-term debt 118,988 183,438 30% % of total debt 52.0% 75.2% Net debt (pre-IFRS 16) 201,569 205,412 4% 30 Jun
Slide 24: Appendix
USeroup Appendix
Slide 25: Pyaterochka – key format highlights (Q2 2023)
25 Pyaterochka – key format highlights (Q2 2023) Key results Operating highlights CVP 20,248 stores +8.5% +7.2% 4,500 390 sqm +9.1% y-o-y LFL sales LFL traffic SKUs average selling space 617 RUB bln +1.2% 1,595 mln 58% 75% Net retail sales +15.5% y-o-y LFL ticket customer visits loyalty card Loyalty
Slide 26: Perekrestok – key format highlights (Q2 2023)
26 Perekrestok – key format highlights (Q2 2023) Key results Operating highlights CVP 956 stores +4.6% +2.3% 8-15 ths 1,116 sqm -2.9% y-o-y LFL sales LFL traffic SKUs average selling space 100 RUB bln +2.3% 170 mln 66% 81% LFL ticket customer visits loyalty card loyalty card Net retail sales +5.3% y
Slide 27: Chizhik – key format highlights
27 Chizhik – key format highlights 250–300 sqm 8–10 RUB mln 750–800 SKU of store selling space net capex per store (excl. VAT) in the assortment EDLP 7 75% price strategy employees per store target share of private label assortment Q2 2023 results 809 5x 27 RUB bln 4х 558 RUB 500 RUB / sqm Stores Ne
Slide 28: Express delivery
28 Express delivery Business model overview Key operating metrics Q2 2023 Order made by customer via GMV RUB 23.3 bln mobile app Orders per day 165.0 ths Average ticket RUB 1,526 Order received at the nearest store Stores 6,509 Click to delivery 50–60 min Order assembled at the store by in-store sta
Slide 29: X5 Investor Relations
X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13-147