Slide 1: 2Q & 1H 2020 Operating Results & Market Update
M.Video-Eldorado 2Q & 1H 2020 Operating Results & Market Update JULY 23, 2020
Slide 2: Content & Liability Disclaimer
Content & Liability Disclaimer The information contained in this presentation or enclosed herewith is provided and intended for informational purposes only and should not be relied on for any investment decisions. The information provided in the presentation includes assumptions and financial inform
Slide 3: 2Q 2020 Key Events & Operational Highlights
01 Content 2Q 2020 Key Events & Operational Highlights
Slide 4: ONE RETAIL became a reality in 3 weeks
ONE RETAIL became a reality in 3 weeks All the benefits of internet and in-store shopping 01 Customers are now smartphone- centric and multi-channel 02 plus ubiquity and ease of use via smartphone access Best service ONE RETAIL ramp-up 15 min store pickup 3 months vs 3 years planned 0.5-2 hrs taxi d
Slide 5: Putting people and safety first
Weathering the pandemic Partnerships and new initiatives Safety Adherence to all sanitary protocols to protect customers and employees, safe and contactless environment across all operations PUTTING PEOPLE Employment Cost control and financial sustainability AND SAFETY Group has met its payroll obli
Slide 6: Safety through technology – going the extra mile
Safety through technology – going the extra mile • Contactless payments from smartphone via link or app >90% • Contactless POS of stores were • QR-code on price tags for quick product access operational in various formats • Remote video calls to consult with shop assistants during • Digital shelf-sp
Slide 7: Our team: we do care
Our team: we do care Group’s operating personnel The Group retained the majority of its 30k+ staff, guaranteeing a stable monthly income for those employees who have continued working at stores, irrespective of sales results. HQ staff working from home 95% Many employees have the opportunity to be t
Slide 8: 2Q 2020 – transformational quarter for online business
2Q 2020 – transformational quarter for online business M.Video and 76m x2.5 Eldorado Average monthly x1.6 paid online traffic websites websites’ visitors in 2Q orders Mobile app 3.6m x6 x1.3 development M.Video mobile app growth in Order comple- WAU and ramp-up installs tion rate Logistics and x2 +8
Slide 9: 2Q and 1H 2020 Operational Results
02 Content 2Q and 1H 2020 Operational Results
Slide 10: 2Q & 1H 2020 operational highlights
2Q & 1H 2020 operational highlights 7.6% growth in net sales in 1H’20 driven by: 2Q & 1H 2020 Total Net Sales YoY, RUB bn +7.6% -5.8% 19.8% growth in sales delivered in 1Q’20 193,6 208,4 Better than expected performance in 92,2 86,9 2Q’20 despite nation-wide quarantine restrictions 1H 2Q 2019 2020 2
Slide 11: 2Q 2020 Group & Brands' Performance
2Q 2020 Group & Brands’ Performance Better than expected 2Q’20 performance due to: 2Q 2020 Group Sales YoY • Increase in average order value (ticket) and units -22,7% +21,9% -5,8% per transaction even despite lower credit sales 92 234 86 901 • Somewhat stronger performance of Eldorado with 12,6 9,8
Slide 12: 1H 2020 Group & Brands' Performance
1H 2020 Group & Brands’ Performance 1H 2020 Group Sales YoY Despite turbulent 2Q'20, solid growth on the back of: • 2x growth in TOS reaching ~70% of sales in 2Q’20 -4,6% +12,8% +7,6% • 19.8% growth in sales delivered in 1Q’20 193 625 208 389 • M.Video delivering increased number of orders, due 26,9
Slide 13: Total Online Sales (TOS): 2Q 2020 performance
Total Online Sales (TOS): 2Q 2020 performance Transformational quarter for online business: 2Q 2020 Group TOS Drivers YoY • 118% growth in total online sales, backed by +135,2% -7,5% +117,5% 2.3x growth in number of paid orders 60 076 • 3x growth in Eldorado catching up to M.Video boasting stronger
Slide 14: Total Online Sales (TOS): 1H 2020 performance
Total Online Sales (TOS): 1H 2020 performance 1H 2020 Group TOS Drivers YoY TOS reached a record share of 56% of total sales • Switched advertising and marketing focus +102,1% -2,2% +97,5% online, driving more traffic and increasing 116 829 conversion rate on website and in mobile app 59 141 • CAPEX
Slide 15: Group's Footprint as of 1H 2020
Group’s Footprint as of 1H 2020 1,037 stores in 252 Russian cities TOTAL Key Success Factor for Online-driven Business # of Stores 512 505 20 1,037 North(1) 100% online coverage in all our 100 cities 48 52 9 DC & 58 regional mini-DCs 90% of population covered by Moscow Center Siberia & same da
Slide 16: Consumer Electronics Marketplace
03 Content Consumer Electronics Marketplace on M.Video-Eldorado Platform via white label integration with
Slide 17: Marketplace: 100% assortment coverage in CE market
All CE + new categories: DIY and gardening tools, sporting gadgets, children care appliances х3 SKUs up to 90,000 in a few months MARKETPLACE: ~10% increase in Group’s sales 100% ASSORTMENT COVERAGE Availability of assortment via all points-of- IN CE MARKET contact of ONE RETAIL Largest online platf
Slide 18: Next step – assortment and CVP development via marketplace
Next step – assortment and CVP development via marketplace As is Targeting full launch by the end of 2020 Marketplace: Own stock and procurements of CE and accessories Direct contracts with large merchants Focus on customer service Our goal and after-sales service Goods.ru white label integration Ve
Slide 19: What customers get: familiar platform with widest choice
What customers get: familiar platform with widest choice Widest assortment Convenient Best deals Largest selection of CE All items in one order Bonuses supplemented by related Promos categories with total Courier delivery or Credit options SKUs of pickup at nearest ~90,000 M.Video or Eldorado 19
Slide 20: White label – double SKUs with zero new investments
White label – double SKUs with zero new investments Integration of product sliders 30 000 SKU Logistics Commission IT and product from sales development 30 000 SKU 30 000 SKU Merchants/ New Goods.ru Complementary suppliers complementary assortment assortment onboarding and categories in via WL for M
Slide 21: See first new proposals on our platform already now
See first new proposals on our platform already now New categories: Direct contracts with: 21
Slide 22: Contact information
Contact information PJSC “M.VIDEO” Address Listing 105066, Russia, Moscow Nizhnaya Krasnoselskaya Str., 40/12 bld 20 Moscow Stock Exchange Web-site Ticker invest.mvideo.ru MVID Maxim Novikov For investors’ Maxim.Novikov@mvideo.ru requests, Timur Akhmedzhanov please, contact: Timur.Akhmedzhanov@mvide