X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — X5 Russian Retail Days 2009
16 slides from X5 Corporate Center's conference presentation, Oct 20, 2009
Slide 1: Operational Excellence: Efficient Purchasing & Sourcing
Operational Excellence: Efficient Purchasing & Sourcing Ekaterina Ishevskaya Purchasing Director X5 Russian Retail Days 20 October 2009 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: Our Purchasing Vision
Our Purchasing Vision Strategic Objectives Efficient In-Store Deliver Winning Logistics Create Winning Assortment and p with Relationships Value for SUPPLIERS CUSTOMERS •Industry-Beating Assortment •Growth Growth of Private Label & Own Production •Increased Purchasing Leverage •Global, National and
Slide 4: Today's Presentation
Today’s Presentation I. X5 Purchasing Organization II. Winning Assortment and Value for Customers III. Winning Relationships with Suppliers IV. Non-Commercial Purchasing p. 4
Slide 5: X5 Purchasing Organization
X5 Purchasing Organization We Manage over USD 7 bln in Annualized Purchases* Assortment: Suppliers: 38,000 SKUs 4,700 Relationships Share in sales* Non Food Non-Food Dairy 15% 10% Small 35% 45% 7% Fish & suppliers Frozen Foods Meat ((fresh & Large g 55% 65% processed) suppliers 14% 9% Spirits & Alco
Slide 6: X5 Purchasing Organization
X5 Purchasing Organization From Purchasing Organization to Customer Success - Before Marketing Formats Buyer Pricing • Value • Stock monitoring Policy Propositions S Supermarket k t Di Discounter t H Hypermarket k t • Customer • Quotas feedback Now Purchasing Buyer • Assortment fulfilment Assortment
Slide 7: Winning Assortment and Value for Customers
Winning Assortment and Value for Customers Our Approach: Reduce # of Brands, Create More Choices Ensure Best Assortment among Competition Support Price Leadership Strategy Reducing Number of Brands while Improving Customer Choice is our Top Priority Before Now # of Brands # of Brands Medium Medium S
Slide 8: Sourcing and Technology Innovation to Meet Customer Needs
Winning Assortment and Value for Customers Sourcing and Technology Innovation to Meet Customer Needs • Electronic auctions for commodity products Non-Branded or “Commodity” y Products across regions and formats f • Placing orders for commodity products with excess capacity factories • Cross – region
Slide 9: Growth of Private Label & Own Production
Growth of Private Label & Own Production Yesterday (2008) Tomorrow (2011) Own Production Own Production 5% 10% 5% Private Label 25% Private Label 65% Brands 90% Brands p. 9
Slide 10: Evolving X5's Private Label Concept
Evolving X5’s Private Label Concept Private Label Strategy Execution Concept • New PL concept p with new designs g developedp • Pricing policy adopted • Quotas for PL within each product category defined • Exclusive PL products launched (famous characters, unusual tastes tastes, legendary brands) Ex
Slide 11: Focus on Own Production
Focus on Own Production Enhanced Own Production Offers Categories • Meat • Salads & other readyy meals • Fish • Bakery Focus on Centralization • Currently offered only in supermarkets and hypermarkets • Certain stores have production facilities • 2011 target: 100% centralization at distribution cent
Slide 12: Winning Relationships with Suppliers
Winning Relationships with Suppliers Creating Long- Long-Term Mutually Profitable Relationships • As Russia’s leading g retailer, X5 is a partner of choice to our suppliers • Financial crisis has increased importance of X5 for suppliers and opened a door to new opportunities for generating mutual pr
Slide 13: Preferred Supplier Case Study
Preferred Supplier Case Study • Regular business review at GM level 9 We have regular meeting on GM level between the companies with Business Review every 3 months 9 We’ve set an objective to grow ahead of the market with index 160% in 2009 vs. 2008 • Progress on Out-of-Stocks elimination 9 Regular
Slide 14: New Retail Law
New Retail Law Based on the Current Draft*: Key Provisions Implications and Our Actions • Payment days limits: Implications – within ithi 10 days d ffor 10-day 10 d expiry i • Paymentt days P d lilimits it affect ff t only l 10 10-day d expiry i products, while for the rest X5 is well within – withi
Slide 15: X5 Non-Commercial Purchasing
X5 Non- Non-Commercial Purchasing Appr. USD 120 mln in Annualized Non- Non-Commercial Purchases K A Key Accomplishments li h t off 2009 90% of non-commercial purchasing volumes have Centralization b been t li d excluding centralized, l di transport, spare parts, fuels and lubricants •18% saving at S
Slide 16: Thank You!
YX5RETAILGROUP THANK YOU! p. 16