X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Group — Investor Presentation (April 2022)
31 slides from X5 Corporate Center's investor presentation, April 2022
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: X5 is a leading Russian food retailer: 2021 Highlights
3 X5 is a leading Russian food retailer… 2021 Highlights #1 Russian 12.7% market share 19,121 stores >340 ths food retailer by revenue vs 9.5% in 2017 in 67 Russian regions employees +57.8% vs 2017 Loyal 63 mln 27 mln +6.9 +3.6 customer base active loyalty card users MAUs of X5 digital services incr
Slide 4: X5 businesses
4 X5 businesses 983 Supermarkets 18,320 Proximity stores 23,802 Pickup points and parcel lockers 89 Express Hard discounter stores delivery 5 Large dark stores 1,722 Stores 53 Dark kitchens (incl. 2 franchisees)
Slide 5: Pyaterochka
5 Pyaterochka Proximity stores 81 % Share of revenue (Q1 2022) 18,320 >4 THS 392 SQM Stores SKUs Average selling space
Slide 6: Perekrestok
6 Perekrestok Supermarkets 16 % Share of revenue (Q1 2022) 983 8–15 THS 1,115 SQM Stores SKUs Average selling space
Slide 7: Chizhik
7 Chizhik Hard discounter stores 0.7 % Share of revenue (Q1 2022) 89 750–800 285 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 11.2% Selling space, ths sqm 7.3% CAGR 2017-2021: 14.3% CAGR 2017-2021: 11.3% 2,194 8,410 1,973 7,840 1,728 7,239 6,464 1,525 1,287 5,480 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 LFL sales, % y-o-y growth N
Slide 9: ...supported by robust profitability
9 …supported by robust profitability Revenue CAGR exceeding 14% in 2017-21 Adj. ROIC2 has increased by 4 p.p. since CAGR 2017-2021: 14.2% 11.5% 2018 17.1% 2,205 16.1% 1,978 15.2% 1,734 14.5% 1,533 1,295 13.2% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 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 2021 2022E 2 p.p. 22% 20% 43% 45% 9% 2 p.p. 1 p.p. 10% 3% 2% 1 p.p. 5% 6% 1 p.p. 19% 18% 68% 71% 3 p.p. share of grocery market 1 p.p. share of groc
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% Aldi 27% 26% Tesco 13.3% 9.5% 62% 61% Auchan 57% 4
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 +6.3% Moscow & Moscow region +4.7% 279 389 272 267 378 262 264 371 373 374 Q1 2021 Q2 2021 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 RUB bln +147% • Offering a range of e-grocery services: express delivery, 383 click&collect and scheduled delivery 155 • Launched in 2020, express delivery service is available from 1,611 stores in 50 regions 18 27 43 • Op
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 increased 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 – 2020 progress against strategic goals Planet Health Employees Communities -9% 45.5% 77.7% 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: Key priorities for the next 6 months
18 Key priorities for the next 6 months Human resources management Ensuring safety in stores and maintaining a sufficient headcount to avoid staff shortages On-shelf availability Reducing technological risks Ensuring smooth functioning of infrastructure and logistics. Implementation of a programme t
Slide 19: 2022 financial goals
19 2022 financial goals Accelerated revenue growth Capex reduction in absolute terms Focus on cost optimisation & Net financial debt / EBITDA <1.8x FCF management
Slide 20: Q1 2022 Results
UeGroup Q1 2022 Results
Slide 21: Double-digit top-line growth supported by strong LFL sales dynamics
21 Double-digit top-line growth supported by strong LFL sales dynamics… Net retail sales Traffic, mln customers Net selling space (eop) 19.0% 8.3% 8.3% 14.7% 1,478 1,497 1,459 7.4% 7.4% 10.4% 11.4% 1,412 6.9% 8.0% 604 1,276 602 8,528 8,410 8,212 544 541 8,063 7,938 506 Q1 2021 Q2 2021 Q3 2021 Q4 202
Slide 22: ...combined with stable profitability
22 …combined with stable profitability Revenue SG&A (excl. D&A&I<I) 1 19.1% 14.9% 19.2% 17.9% 18.8% 18.6% 18.5% 10.7% 11.7% 8.1% 607.5 604.2 113.2 546.5 543.6 111.6 507.2 14. 2% 102.1 97.1 97.8 86.1 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2022 pre-IFRS 16
Slide 23: Q1 2022: Adjusted SG&A expense analysis
23 Q1 2022: Adjusted SG&A1 expense analysis Q1 2022 analysis Key Q1 2022 highlights as a percentage of revenue Staff costs (excluding LTI and share-based payments): (69) b.p. positive operating leverage effect partially offset by additional 19.2% staff hiring due to increased consumer demand. 18.5%
Slide 24: X5 capital expenditures
24 X5 capital expenditures Capex breakdown, 2021 Capex dynamics by year, RUB bln 15% 7.6% 5.5% 4.7% 4.5% 34% 4.4% New store openings 11% Refurbishments 98.6 97.9 89.9 83.7 81.1 Logistics 97.9 RUB bln +8.9% y-o-y IT Maintenance 10% Other 2017 2018 2019 2020 2021 10% 20% Capex % of sales Prioritising
Slide 25: X5 debt structure
25 X5 debt structure Debt profile Debt portfolio maturity RUB mln 31 Mar 2022 31 Mar 2021 100% 29% Total debt 333,408 248,009 Short-term debt 115,489 78,081 35% % of total debt 34.6% 31.5% Long-term debt 217,919 169,928 33% % of total debt 65.4% 68.5% Net debt (pre-IFRS 16) 280,196 235,796 3% Adj. n
Slide 26: Appendix
UeGroup Appendix
Slide 27: Pyaterochka – key format highlights (Q1 2022)
27 Pyaterochka – key format highlights (Q1 2022) Key results Operating highlights CVP 18,320 stores +12.6% +4.2% 4,500 392 sqm +8.0% y-o-y LFL sales LFL traffic SKUs average selling space 489 RUB bln +8.1% 1,241 mln 44 mln LFL ticket customer visits active loyalty card Revenue +20.3% y-o-y users +11
Slide 28: Perekrestok – key format highlights (Q1 2022)
28 Perekrestok – key format highlights (Q1 2022) Key results Operating highlights CVP 983 stores +8.0% +0.4% 8-15 ths 1,115 sqm -0.7% y-o-y LFL sales LFL traffic SKUs average selling space 97 RUB bln +7.5% 158 mln 14 mln LFL ticket customer visits active loyalty card users Revenue +13.5% y-o-y +6.2%
Slide 29: Chizhik – key format highlights
29 Chizhik – key format highlights 250–300 sqm 7–9 RUB mln 750–800 SKUs 75% of store selling space net capex per store in the assortment target share of private (excl. VAT) label assortment EDLP over 100% up to 50% 7 price strategy higher sales density higher return on investments employees per stor
Slide 30: Express delivery
30 Express delivery Business model overview Key operating metrics Q1 2022 Order made by customer via GMV RUB 13 bln mobile app Orders per day 81 ths Average ticket RUB 1,729 Order received at the nearest store Stores 1,722 Click to delivery 50–60 min Order assembled at the store by in-store staff ~4
Slide 31: X5 Investor Relations
X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13147