X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2009)
14 slides from X5 Corporate Center's investor day presentation, Oct 20, 2009
Slide 1: Customer Focus: Soft Discounters
Customer Focus: Soft Discounters Oleg Vysotsky General Director of Discounter Format 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: Russia's Price Leader
Russia’s Price Leader Target Customer Base Income per month High Above 84,000 RUR 22,000- • 110 million Russians Above 84,000 average • Price-conscious or looking for – value Average RUR 14,000 – 22,000 • Walk to shops Low to below average • Shop several times a week RUR 5,600 to RUR 14,000 • Want t
Slide 4: Key Format Statistics
Key Format Statistics • Pyaterochka’s net retail sales for 2008 surged 47% y-o-y to RUR 110,953 mln (USD 4,464 mln) • Net retail sales for 9M 2009 were up 34% y-o-y and totaled RUR 105,321 mln (USD 3,243 mln) • Pyaterochka’s share in total X5 Net Retail Sales for 9M 2009 was 54% As at 30 September 2
Slide 5: Growing Regional Presence
Growing Regional Presence Central Moscow # of stores: 195 # of stores: 398 Market share: 9M’09 Net Retail Sales by Region St. Pet Market share: 4% # of stores: 224 4% Regions Market share: 14% 20% North-West Moscow & # of stores: 288 Volgo-Vyatsky the region Market share: 15% # of stores: 36 Market
Slide 6: Competitive Landscape
Competitive Landscape National Competitors Magnit Dixy Kopeika Competition by Region Region Direct Competitors Indirect Competitors Central Kopeika, Magnit, Dixy, Kvartal Aushan, Atack North-West Dixy, Semya, Polushka, Norma, Netto, O'key, Lenta, Aushan Magnit Privolzhsky Magnit Real Centralno-Chern
Slide 7: Sustained Growth
Sustained Growth Strong Selling Space and Top Line Growth Number Of Stores Selling Space 1,000 952 500 Thousand square meters 461 900 848 450 420 800 674 +69% 204 +30% 266 400 357 +58% 75 +36% 102 700 350 Regions 600 121 300 47 +13% +4% 288 +12% 151 +3% 155 500 St.Petersburg 276 250 135 400 & North-
Slide 8: Outperforming Competitors…
Outperforming Competitors… … in Tough Economic Environment • Continuous outperformance among competition LFL Traffic Growth Acceleration Q-o-Q Based on RUR- denominated gross sales Traffic Basket • Strong traffic growth in good times, further + 20% acceleration in hard times + 17% + 18% + 16% 13% 7%
Slide 9: Our Strategic Vision
Our Strategic Vision Key Medium-Term Objectives • Accelerate Expansion • Top-Line Growth Market Leader • Strengthen Leadership in Key Regions • Regional Scale • Reinforce Price Leadership • Traffic Growth Price Leader • Optimize Assortment towards Lower Price Points • LFL Sales • Grow Private Label
Slide 10: Evolving Our Assortment
Evolving Our Assortment Key Product Categories, 2009 YTD Assortment Principles Share in sales Non-food 6% Fish & Frozen • Assortment matrix based on target customer preferences 8% • Fast moving staples Spirits and Alcohol • Major brands, sales-leaders Dairy 17% Beverages • Focus on low price segment
Slide 11: Strong in Promotions
Strong in Promotions Super - Promo Timing: each week (Tuesday to Monday) # of SKUs: 4 Price Reduction:no less than 25% Mega - Promo Timing: three times a year for two weeks # of SKUs : 20 Price Reduction:no less than 25% Promo Assortment • Category Leaders • Strong Brands with Best Sales Statistics
Slide 12: Close to People
Close to People Leading on Service… …Supporting National Football • Pyaterochka is a proud partner of the Russian National Football Team • And millions of Russians “root for Russian football” with us! • In 220 stores that lead on customer service and operational results, store directors’ pictures we
Slide 13: Russian National Brand…
Russian National Brand… … Catering to Tastes of Ordinary Russians New pricing strategy introduced March 2009 – “the Lowest Price in the Market on 100% of Assortment” Supported by new image advertising campaign “Guslyar” – a popular character from Russian folklore – is featured in all of Pyaterochka’
Slide 14: THANK YOU!
Эх Пятерочка, ай да Матушка! THANK YOU! p. 14