Slide 1: Investor Presentation
UWscGroup 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: Focus on the fastest-growing market segment
3 Focus on the fastest-growing market segment Diverse grocery business with growth potential across convenience, hard discounter and online segments 2023 2024E 2 p.p. 26% 28% 30% 31% 1 p.p. 16% 17% 17% 1 p.p. 15% 6% 5% 2 p.p. 5% 4% 57% 1 p.p. 58% 1 p.p. 1 p.p. share of grocery market share of grocer
Slide 4: Market consolidation is the key source of growth for the top players
4 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% 21% 22% 20% 19% Aldi 24% Tesco 13.3% 9.5% 62% 61% Auchan 57% 4.2
Slide 5: Macro-trend: Online
5 Macro-trend: Online market, RUB bln MARKET GROWTH DRIVERS TRENDS IN CONSUMER Online PREFERENCES +33.5% +34.2% E-grocery share continues to grow, current run-rate estimates twofold growth by 2026. 2,918 2,979 Regions is a key growth The option to buy potential online is becoming a standard, however
Slide 6: X5 is a leading Russian food retailer H1 2024 Highlights
6 X5 is a leading Russian food retailer H1 2024 Highlights #1 Russian 14.6% market share1 25,466 stores >392 ths food retailer by revenue vs 9.5% in 2017 in 74 Russian regions employees +12.3% y-o-y Loyal 80.4 mln 36.8 mln >23 mln customer base active loyalty card users MAUs of X5 digital services a
Slide 7: X5 has a leading position in offline
7 X5 has a leading position in offline TOP 10 Russian grocery retailers TOP 10 Russian e-grocery players Company Market share in 2023 Company Market share in 2023 1 14.6% 1 15.9% 2 10.6% 2 14.6% 3 6.1% 3 13.2% 4 2.3% 4 10.8% 5 1.6% 5 9.5% 6 1.2% 6 6.9% 7 1.2% 7 5.7% 8 1.0% 8 4.2% 9 1.0% 9 3.4% 10 0.
Slide 8: X5 businesses
8 73 X5 businesses Dark kitchens (incl. 1 franchisee) 1,785 Hard discounter stores Loyalty programme 21,997 Proximity stores Express delivery 8,354 Stores 36 Dark stores Digital 26,634 Pickup points and parcel lockers Subscription service 3 987 612 Large dark stores Supermarkets Stores
Slide 9: Pyaterochka
9 Pyaterochka Proximity stores 78 % Share of revenue (H1 2024) 21,997 >4 THS 390 SQM Stores SKUs Average selling space
Slide 10: Perekrestok
10 Perekrestok Supermarkets 13 % Share of revenue (H1 2024) 987 11–14 THS 1,108 SQM Stores SKUs Average selling space
Slide 11: Chizhik
11 Chizhik Hard discounter stores 6% Share of revenue (H1 2024) 1,785 750-800 294 SQM Stores SKUs Average selling space
Slide 12: Track record of strong operational performance…
12 Track record of strong operational performance… Net retail sales dynamics, RUB bln Selling space, ths sqm 12.1% CAGR 2019-2023: 16.1% 20.6% CAGR 2019-2023: 9.0% 10,206 9,107 3,139 8,410 7,840 2,602 7,239 2,200 1,973 1,728 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 LFL sales, % y-o-y growth
Slide 13: …supported by robust profitability
13 …supported by robust profitability1 Revenue CAGR exceeding 16% in 2019-23 Adj. ROIC3 has increased by 12 p.p. since CAGR 2019-2023: 16.1% 2019 20.8% 26.7% 3,146 2,605 2,205 1,978 19.2% 1,734 17.1% 16.1% 14.5% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Adj. EBITDA margin2 consistently above
Slide 14: Growth and profitability supported by improving sales density
14 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 +11.8% Moscow & Moscow region +10.6% 458 349 339 445 328 319 312 432 421 414 Q2 2023 Q3 2023 Q
Slide 15: Strategic Priorities
15 Strategic Priorities No. 1 by market share growth in food retail Maintaining Pyaterochka’s growth Expanding into new regions Maintaining a strong customer focus momentum We are expanding into new regions by striking We continue to apply a customer-journey lens We are maintaining Pyaterochka’s hig
Slide 16: Building X5's presence at each step of the customer journey
16 16 Building X5’s presence at each step of the customer journey X5 is strategically focused on X5 retail chains and alliances consistently expanding its Wholesale distributor Для бизнеса + Okolo small format franchise presence at each step of the Single express delivery platform customer journey:
Slide 17: X5 updated its strategic ESG goals to 2025
17 X5 updated its strategic ESG goals to 2025 Planet Health Employees Communities -15% 80% 10% 2025 goal: 2025 goal: 2025 goal: 2025 goal: Reduce GHG emissions (Scope 1 and 2) intensity Increase sales of healthy Grow the number of beneficiaries of food aid Maintain an employee engagement rate of at
Slide 18: Q2 2024 Results
Ueeroup Q2 2024 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) 24.7% 27.0% 25.2% 12.6% 12.1% 12.3% 10.5% 22.9% 10.4% 19.2% 2 096 958 1 951 870 1 870 1 880 1 821 10,539 876 10,336 10,206 765 788 9,860 9,541 Q2 2023 Q3 2023 Q4 2
Slide 20: …combined with stable profitability
20 …combined with stable profitability Revenue SG&A (excl. D&A&I, LTI and other employee 22.9% 25.0% 27.3% 25.1% incentives) 19.2% 965.5 17.3% 18.6% 18.1% 17.5% 886.2 17.0% 881.2 772.0 796.2 14.1% 163.9 160.6 169.1 137.9 136.1 131.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1
Slide 21: Q2 2024: Adjusted SG&A expense analysis
21 Q2 2024: Adjusted SG&A1 expense analysis Q2 2024 analysis Key Q2 2024 highlights as a percentage of revenue Staff costs (excluding LTI and other employee incentives): an increase in average salaries on the labour market and the resulting indexation of salaries. 56 b.p. 17.5% Lease expenses: a pos
Slide 22: X5 capital expenditures
22 X5 capital expenditures Capex breakdown, 2023 Capex dynamics by year, RUB bln 5.5% 16% 4.7% 4.7% 4.5% 4.4% 35% 148.4 New store openings 3.1% Refurbishments 8% 97.9 Logistics 89.9 148.4 RUB bln 83.7 81.1 82.0 +80.9% y-o-y IT 10% Maintenance Other, including new business 2018 2019 2020 2021 2022 20
Slide 23: X5 debt structure
23 X5 debt structure Debt profile Debt portfolio maturity RUB mln 30 Jun 2024 31 Dec 2023 100% 17% Total debt 215,763 229,907 30% Short-term debt 71,156 101,101 % of total debt 33.0% 44.0% 44% Long-term debt 144,607 128,806 % of total debt 67.0% 56.0% Net debt (pre-IFRS 16) 169,855 190,803 9% 30 Jun
Slide 24: Appendix
Ueeroup Appendix
Slide 25: Pyaterochka – key format highlights (Q2 2024)
25 Pyaterochka – key format highlights (Q2 2024) Key results Operating highlights CVP 21,997 stores +14.9% +3.1% 4,000 390 sqm +8,6% y-o-y LFL sales LFL traffic SKUs average selling space 757 RUB bln +11.4% 1,757 mln 65% 82% Net retail sales +22,7% y-o-y LFL ticket customer visits loyalty card Loyal
Slide 26: Perekrestok – key format highlights (Q2 2024)
26 Perekrestok – key format highlights (Q2 2024) Key results Operating highlights CVP 987 stores +16.1% +3.2% 11-14 ths 1,108 sqm +3.2% y-o-y LFL sales LFL traffic SKUs average selling space 119 RUB bln +12.6% 180 mln 72% 87% LFL ticket customer visits loyalty card loyalty card Net retail sales +18.
Slide 27: Chizhik – key format highlights
27 Chizhik – key format highlights 250–300 sqm ~10–11 RUB mln 750-800 SKU of store selling space net capex per store (excl. VAT) in the assortment EDLP 6 77% price strategy employees per store share of own brand assortment Q2 2024 results 1,785 +120.6% 57 RUB bln +113.6% 602 RUB 439 RUB / sqm Stores
Slide 28: Express delivery
28 Express delivery Business model overview Key operating metrics Q2 2024 Order made by customer via GMV RUB 44.3 bln mobile app Orders per day 286.5 ths Average ticket RUB 1,675 Order received at the nearest store Stores 8,354 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