X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q2 2010 Earnings Presentation
13 slides from X5 Corporate Center's earnings presentation, Aug 26, 2010
Slide 1: Q2 2010 Financial Results
Q2 2010 Financial Results Conference Call Presentation 26 August g 2010 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: Q2 Progress On X5 Strategic Objectives
Q2 Progress On X5 Strategic Objectives • 11% Industry-leading LFL sales • Reached 2010 target • Low-20% RUR sales growth Drivers growth at discounters centralisation rate of 67% outlook reconfirmed in lower inflation environment • Stepped up store openings – 73 • 99% of all contracts with stores t o
Slide 4: Q2 2010 Operational Performance
Q2 2010 Operational Performance 18% nett retail t il sales l growth th in i RUR against i tabbackdrop kd off weak k consumer spending…. • …and drastically lower food inflation in Russia: 4.5% in June Q2 2010 Net Retail Sales 2010 year-on-year year on year compared to 12% in June 2009 RUR bln • X5 co
Slide 5: LFL Results: Industry-Leading Performance at Discounters
Q2 2010 LFL Results… … Industry- I d t -Leading Industry L di Performance P f att Discounters Di t with ith 11% LFL Sales S l Growth G th • X5’s LFL sales growth at 4% in RUR terms year-on- year Supermarkets’ Q2 2010 LFL Performance • Strong Discounters LFL growth was achieved in Q2 Based on RUR- RU
Slide 6: Selling Space Expansion in H1 2010
Selling Space Expansion in H1 2010 S l ti and Selective d Efficient Effi i t New N Store St Openings O i In Q2 2010 Number Of Stores, EoP • Net 73 stores or 29 th. sq.m. of selling space added: –72 soft discounters –one supermarket closed –two hypermarkets • 42 convenience stores added via gaining o
Slide 7: X5's Strategic Efficiency Program
X5’s Strategic Efficiency Program…. …is i a Multi- Multi M lti-Year Y Eff Effortt B Butt W We A Are Al Already d Delivering D li i Results R lt SG&A(1) as % of Sales 17.1% 17.3% 16.7% 16.7% 16.4% 15.9% 15.3% Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 (1) Excluding ESOP & D&A p. 7
Slide 8: Q2 2010 Financial Performance
Q2 2010 Financial Performance(1) Net Sales EBITDA & EBITDA Margin USD mln 25% 20% Gross Profit Net Profit / (Loss) 22% (1)All P&L numbers are provided on pro-forma basis p. 8
Slide 9: Q2 2010 P&L Highlights
Q2 2010 P&L Highlights(1) USD mln Q2 2010 Q2 2009 % change % change y-o-y, USD y-o-y, RUR Net Sales 2 640 9 2,640.9 2 111 2 2,111.2 25% 17% incl. Retail 2,637.7 2,099.6 26% 18% Gross Profit 637.8 520.8 22% 15% Gross Margin, % 24.1% 24.7% SG&A (excl. (excl D&A) (449.2) (358.0) 25% 18% % of revenue 17
Slide 10: Key Q2 2010 P&L Developments
Key Q2 2010 P&L Developments Net sales increased 17% year-on-year in RUR terms to RUR 79,850 mln or 25% in USD terms to USD 2,641 mln; Gross profit totaled USD 638 mln mln, for a gross margin of 24 24.1%; 1%; EBITDA amounted to USD 220 mln, for an EBITDA margin of 8.3%; X5 reported a net pro
Slide 11: Q2 2010 Cash Flow Highlights
Q2 2010 Cash Flow Highlights % change % change USD mln Q2 2010 Q2 2009 USD S RUR Net Cash Flows from Operating Activities (9.5) 77.9 n/a n/a Net Cash from Operating p g Activities 238 6 238.6 210 2 210.2 13% 6% before Changes in Working Capital Change in Working Capital (176.9) (56.1) 215% 207% Net
Slide 12: Debt Financing and Liquidity
Debt Financing and Liquidity Hi hli ht Highlights D bt M Debt Maturity t it Profile P fil as att 30 30.06.10 06 10 • As at 30 June 2010, the Company’s total debt amounted to RUR USD mln 59 billion or USD 1,899 million (at RUR/USD exchange rate of 31.19). Net debt totaled RUR 56 billion or USD 1,794
Slide 13: 2010 Outlook
2010 Outlook 2010 Outlook • Net new store addition: -Hypermarkets: 7-10 stores; -Supermarkets: ~15 stores; Discounters: -Discounters: 200-250 200 250 stores. • Capital Expenditures of up to RUR 18 bln Due to significantly lower food inflation to date and in the official forecast rate for the year, X