X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q1 2012 Earnings Presentation
15 slides from X5 Corporate Center's earnings presentation, May 17, 2012
Slide 1: First Quarter 2012 Financial Results Conference Call
1 First Quarter 2012 Financial Results Conference Call Andrei Gusev, X5 Chief Executive Officer Kieran Balfe, X5 Chief Financial Officer Moscow, Russian Federation 17 May 2012
Slide 2: Disclaimer
Disclaimer 2 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 o
Slide 3: Summary Highlights – Q1 2012
Summary Highlights – Q1 2012 3 Our Business • Russia's largest food retailer in terms of sales – 5.7% of total food retail market(1) • Multi-format brand retail operator: Pyaterochka (Soft Discounter), Perekrestok (Supermarket), Karusel (Hypermarket) plus assorted brand name convenience stores Q1 20
Slide 4: Financial Overview – Q1 2012 vs. Q1 2011
4 Financial Overview – Q1 2012 vs. Q1 2011
Slide 5: Financial Highlights
Financial Highlights 5 USD mln Q1 2012 Q1 2011 +/( - ) +/( - )% Retail sales 3,862.0 3,826.1 35.9 0.9% Total revenues 3,870.7 3,845.4 25.3 0.7% COGS (2,923.5) (2,931.8) (8.3) (0.3%) Gross profit 947.2 913.6 33.6 3.7% Gross profit margin 24.5% 23.8% - - EBITDA 274.0 281.1 (7.1) (2.5%) EBITDA margin 7
Slide 6: Sales & EBITDA Breakdown
Sales & EBITDA Breakdown 6 Change in net retail sales by format, USD mln + 96.4 Net retail sales grew - 4.5 + 7.2 3,862.0 3,826.1 by 0.9% in USD terms - 57.6 - 5.7 on the back of soft discounters’ sales growth offset by decrease in hypermarkets sales Net retail sales Soft discounters Supermarkets Hy
Slide 7: SG&A Breakdown
SG&A Breakdown 7 USD mln Q1 2012 % of Net Sales Q1 2011 % of Net Sales % change, y-o-y Staff Costs(1) (342.4) 8.8% (332.5) 8.6% 3.0% Lease Expenses (151.3) 3.9% (135.9) 3.5% 11.4% Other Store Costs(1) (61.3) 1.6% (48.0) 1.2% 27.6% D&A (103.0) 2.7% (106.4) 2.8% (3.2%) Utilities (91.2) 2.4% (85.5) 2.2
Slide 8: Cash Flow Highlights
Cash Flow Highlights 8 USD mln Q1 2012 Q1 2011 +/( - ) +/( - )% Net Cash Flows (Used in)/Generated from Operating Activities (77.1) 74.9 (152.1) n/a Net Cash from Operating Activities before Changes in Working Capital 289.8 297.4 (7.7) (2.6%) Change in Working Capital (240.5) (119.9) (120.6) 100.6%
Slide 9: Capital Expenditures Overview
Capital Expenditures Overview 9 Capital Expenditures in Q1 2012 – USD 177 mln Net Cash Flows From Investing Activities, USD mln 397.6 226.6 171.5 180.4 98.2 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 In Q1 2012, X5 almost doubled capital expenditures to finance new store openings, logistics initiatives
Slide 10: Condensed Balance Sheet
Condensed Balance Sheet 10 USD mln 31 March 2012 31 December 2011 +/( - ) +/( - )% Total current assets 1,962.5 2,051.2 (88.6) (4.3%) incl. Cash & cash equivalents 188.8 385.0 (196.2) (51.0%) incl. Inventories 916.0 895.0 21.0 2.3% Total non-current assets 7,486.8 6,759.0 727.8 10.8% incl. Net PP&E
Slide 11: Debt Structure
Debt Structure 11 Debt profile Comments • X5’s net debt to EBITDA ratio increased to 3.36x USD mln 31-Mar-12 % in total 31-Dec-11 % in total compared to 3.13x at the end of 2011 due to Total Debt 3,997.1 3,610.0 seasonal short-term movements in cash & cash equivalents Short-Term Debt 1,091.9 27.3% 9
Slide 12: Liquidity Update
Liquidity Update 12 Net debt/EBITDA in 2011 evolution Historical Average 3.42x 3.59x 3.57x 3.36x 3.40x 3.13x 3.20x Average: 2.73x 2.22x 2.08x 31 Mar 2011 30 Jun 2011 30 Sep 2011 31 Dec 2011 31 Mar 2012 31 Dec 2006 31 Dec 2007 31 Dec 2008 31 Dec 2009 Stable Leverage and Liquidity Metrics Comments Met
Slide 13: Share Capital & Corporate Governance
Share Capital & Corporate Governance 13 Share Capital(1) Corporate Governance Treasury Shares Audit Committee 0.11% General Meeting of Shareholders (3 members) Nomination and Free Float Remuneration 32.06% Committee Supervisory Board (4 members) Alfa Group (7 members) 47.86% Related Party Committee
Slide 14: Benefits of X5 Multi-Format Strategy
Benefits of X5 Multi-Format Strategy 14 Various purchase options in a one-to-one relationship with the customer behind different brands/value propositions More efficiently captures real Ensures a balance between growth estate/location opportunities and profitability in a regulated with varying sizes
Slide 15: Contact Information
Contact Information 15 IR Department Contact Details Gregory Madick Anastasiya Kvon Andrey Napolnov Executive IR Director IR Director Senior IR manager X5 Retail Group N.V. X5 Retail Group N.V. X5 Retail Group N.V. 28 bldg., 4, Sr. Kalitnikovskaya, 28 bldg., 4, Sr. Kalitnikovskaya, 28 bldg., 4, Sr.