X5 Corporate Center · RUS:X5

X5 Corporate Center — X5 Retail Group — Q3 2021 Earnings Presentation

77 slides from X5 Corporate Center's earnings presentation, 2021

  1. Slide 1: New Retail Starts Now

    we = NEW RETAIL STARTS NO )X5 RETAIL GROUP

  2. Slide 2: Disclaimer

    DISCLAIMER T his presentation does not constitute or form part of and should not be construed as an advertisement of securities, an offer or This presentation includes statements that are, or may be deemed to be, “forward- looking statements”, with respect to the financial The information and opinio

  3. Slide 3: I. Highlights

    I. HIGHLIGHTS 3

  4. Slide 4: Our Mission and Goals

    OUR MISSION AND GOALS To become the most valuable company in the eyes of customers, employees, and shareholders, which means: Shareholder Customer recognition Employee recognition + = recognition Retail sales and NPS High engagement leadership Focus on strategic KPIs  Net retail sales  Employee tu

  5. Slide 5: Strategic Highlights

    STRATEGIC HIGHLIGHTS  Market leader in Russian food retail, 12.6% market share in 12M 2020  Strategy is aimed at maintaining leadership  X5 is a multi-format retailer with focus on two largest segments of the Russian food retail - proximity and supermarkets  Balanced approach to expansion  Fast

  6. Slide 6: Key Results Q3 2021

    KEY RESULTS Q3 2021  11.7% revenue growth  7.5% YoY selling space growth in Q3 2021 (11.4% net retail in Q3 2021 (+353 new stores sales growth in Q3 2021) added, net)  4.8% LFL sales growth  23% of X5 stores operate in new in Q3 2021 concept as of Q3 2021 (new CVP launched in 2019)  12.9% adj.

  7. Slide 7: X5 vs. Russian Food Retail in Top-Line Growth

    X5 VS. RUSSIAN FOOD RETAIL IN TOP-LINE GROWTH 28% 28% 25% 23% 20% 21% 18% 21% 19% 18% 19% 13% 14% 12% 11% 14% 12% 9% 10% 10% 9% 8% 9% 8% 11% 10% 7% 6% 5% 8% 8% 7% 4% 4% 2% 2% 5% 3% 2% 2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M 2021 X5 y-o-y revenue growth Top-10 Market Food CPI Source: Infol

  8. Slide 8: Our Competitive Advantages

    OUR COMPETITIVE ADVANTAGES 1 Strong brands 2 Effective omni-channel operating model 3 Growing loyalty programme 4 Developed backbone infrastructure 5 Strong leadership team 6 Strong corporate governance and ESG 8

  9. Slide 9: X5 Multi-Format Offer

    X5 MULTI-FORMAT OFFER Pyaterochka Perekrestok Chizhik Perekrestok Vprok Format Proximity store Supermarket Hard discounter FMCG marketplace Price [Low] – [Mid] [Mid] – [Mid+] [Low] – [Mid-] [Mid-] – [Mid] segment Medium choice of Wide choice of food Primary food offer Hypermarket Assortment food pro

  10. Slide 10: Key Benefits of Food Retail Market Leadership

    KEY BENEFITS OF FOOD RETAIL MARKET LEADERSHIP  Market leaders tend to have significant impact on how the market develops, and other players follow  Leaders often set the predominant market pricing strategy, which serves as the benchmark for other players to adapt to  Strong position to influence

  11. Slide 11: Evolution of Russian Food Retail Market

    EVOLUTION OF RUSSIAN FOOD RETAIL MARKET 2020 2030E Retail Food Market Retail Food Market: (incl. HoReCa): RUB 28.1 trn RUB 17.5 trn +RUB 10.6 trn (4.8% CAGR) 80.5% - Offline 92.9% - Offline food retail food retail 0.9% - Online 10.1% - Online food retail food retail 4.1% - Offline ready-to-eat segme

  12. Slide 12: Russian Food Retail Market Trends: Non-Price Elements Gain Importance

    RUSSIAN FOOD RETAIL MARKET TRENDS NON-PRICE ELEMENTS GAIN IMPORTANCE What clients % of respondents giving positive answer expect from retail? 2012 2018 2023 Price/ -7 p.p. -3 p.p. Quality 60% 53% 50% +4 p.p. +9 p.p. Convenience 36% 45% 32% Assortment +3 p.p. +5 p.p. 32% 35% 40% Pleasant +5 p.p. +7 p

  13. Slide 13: X5 Regional Presence

    X5 REGIONAL PRESENSE X5 today  Multi-format presence in seven Federal Districts  Total stores – 18,648, including: ― 17,600 Pyaterochka stores ― 980 Perekrestok supermarkets ― 34 Karusel hypermarkets North North Format Unit Southern Central Volga Ural Siberian Total Caucasus Western 353 1,813 6,38

  14. Slide 14: X5 Distribution Capabilities

    X5 DISTRIBUTION CAPABILITIES Warehouse space as of 30 September 2021 Space, Federal district # of DCs th. sq. m Central 561 14 6 North-Western 150 6 Volga 230 9 14 Ural 157 7 9 7 Southern 143 5 5 Siberian 70 2 2 Total 1,311 43 Centralisation levels Highlights for 9M 2021  X5 continued the implement

  15. Slide 15: Supply Chain: Key Achievements

    SUPPLY CHAIN: KEY ACHIEVEMENTS Selling space per sq.m of warehouse Own truck fleet (units) space (sq.m) 5.9 4,124 4,055 5.5 3,830 5.0 4.7 3,144 2017 2018 2019 2020 2017 2018 2019 2020 DC throughput (boxes/sq.m) Warehouse costs (RUB/box) -11% +10% 6.5 6.3 5.9 6.0 10.2 9.2 9.1 9.0 2017 2018 2019 2020

  16. Slide 16: Operational Highlights (Annual)

    OPERATIONAL HIGHLIGHTS (ANNUAL) Net retail sales dynamics, RUB bn LFL sales, % y-o-y growth CAGR 2016-2020: 17.8% 14.2% CAGR 2018-2020: 13.8% 1,973 1,728 1,525 1,287 7.7% 1,026 5.4% 5.5% 4.0% 1.5% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Selling space, th. sq. m Number of stores, end of per

  17. Slide 17: Financial Highlights (Annual)

    FINANCIAL HIGHLIGHTS (ANNUAL) Revenue dynamics, RUB bn Gross profit & gross margin CAGR 2016-2020: 17.6% CAGR 2016-2020: 18.2% CAGR 2018-2020: 15.2% 14.1% CAGR 2018-2020: 14.8% 24.2% 23.9% 24.1% 24.6% 24.6% 1,978 1,734 14.4% 1,533 1,295 487 1,034 426 370 309 250 2016 2017 2018 2019 2020 2016 2017 20

  18. Slide 18: II. Delivering on Our Strategy

    II. DELIVERING ON OUR STRATEGY 18

  19. Slide 19: Strategy 2018-2020: Implementing and Adapting

    STRATEGY 2018-2020 IMPLEMENTING AND ADAPTING STRATEGY IMPLEMENTATION STAGES 1-2 years 1-3 years 1-5 years Strengthen the Next Generation Digital transformation core business Retail  EBITDA margin above 7%  Formed big data team and  Achieved market leadership in competence centre the e-grocery seg

  20. Slide 20: Strategy 2023

    STRATEGY 2023 Our goal is to create value for both X5 shareholders and the broader society by advancing and evolving our technology and competitive strategies to further cement our position as the top choice in the food market LEADERSHIP IN FOOD MARKET COMMITMENT TO SHAREHOLDERS 15% • Growing shareh

  21. Slide 21: Sustainable Development Performance Targets

    SUSTAINABLE DEVELOPMENT PERFORMANCE TARGETS Strategic targets by 2023 30x30 – Strategic Goals by 2030 COMMUNITIES +100% Up to 30% families receiving Basket of increase of the growth rate of number of families Kindness help by 2023 receiving Basket of Kindness per year HEALTH Promote responsible Expa

  22. Slide 22: Positive Dynamics in Key ESG Ratings

    POSITIVE DYNAMICS IN KEY ESG RATINGS MSCI ESG rating Sustainalytics Risk Rating* BBB 20.8 21.2 BB 2020 2021 2020 2021 Bloomberg ESG Disclosure Score S&P Global CSA 34 49.2 26 41.7 2020 2021 2019 2020 *Scale 1 to 100 with 100 = worst, 1 = best 22

  23. Slide 23: Business Growth Structure Will Evolve

    BUSINESS GROWTH STRUCTURE WILL EVOLVE Contributors to growth of revenue Structure of X5 digital sales, 2022F 1.5% 5.0% 6.3% New businesses 10.3% Personalised Perekrestok online offers Vprok LFL growth 32.1% 39.3% 52.8% 54.8% 66.4% Express delivery Net expansion 55.7% services, Click & Collect, 5 Pos

  24. Slide 24: Overview of X5's New Businesses (1/2)

    OVERVIEW OF X5’s NEW BUSINESSES (1/2) Perekrestok Vprok 5Post Express delivery Launched 2018 2019 2020 EBITDA 2021 2021 2023 positive CAPEX < RUB 15 bn < RUB 10 bn RUB 1 bn 2020-2023 Top 3 in express delivery in Result #1 in e-grocery in 2020 #2 in e-com delivery 2020 2020 X5 estimates it will earn

  25. Slide 25: Overview of X5's Digital Businesses (2/2)

    OVERVIEW OF X5’s DIGITAL BUSINESSES (2/2) Vprok (marketplace) 5Post Express delivery Strategic  Online will help X5 become a  E-comm parcel delivery  Meet customers’ demand for consistency leader in food/FMCG e- complements X5 retail sales food/FMCG express delivery commmerce  Strengthens X5’s r

  26. Slide 26: Customer Loyalty Is Key

    CUSTOMER LOYALTY IS KEY Proximity stores Supermarkets Hypermarkets  Over 46 mln active users*  Over 14 mln active users*  Over 1 mln active users*  66% traffic penetration  72% traffic penetration  81% traffic penetration  81% retail sales penetration  85% retail sales penetration  89% reta

  27. Slide 27: Focus on CVP: Insights from Pyaterochka Loyalty Programme

    FOCUS ON CVP: INSIGHTS FROM PYATEROCHKA LOYALTY PROGRAMME Revenue by loyalty segment Approximate spending RUB ths per person per year Regular customers without loyalty cards 42% Regular customers with loyalty cards 63% Revenue approx. 5x bigger than regular customer 19% High-value customers with loy

  28. Slide 28: New Store Formats

    NEW STORE FORMATS  Higher LFL sales compared to the old format  Higher LFL sales compared to the old format ─ by 5.2 p.p. in Q2 2021 ─ by 12 p.p. in Q2 2021 ─ by 4.0 p.p. in Q3 2021 ─ by 8 p.p. in 9M 2021  Capex per store is comparable vs old format  Capex per store is comparable vs old format 

  29. Slide 29: Quality of New Openings

    QUALITY OF NEW OPENINGS Cash return on new store opened >30% -1.1 p.p. y-o-y Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Note: Opened 12-36 months ago Share of stores in ‘clinic’ 18,295 18,648 17,707 17,959 17,352 4.1% 3.6% 3.4% 2.7% 2.5% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Number of stores, eop Sha

  30. Slide 30: Larger Market Share Drives Higher Profitability

    LARGER MARKET SHARE DRIVES HIGHER PROFITABILITY EBITDA above 10% 5-10% 7% or less margin, % Sales density, Above 350 200-260 230 or less RUB ths / sqm >25% 18% 18% 15% Market share, % 12% 11% 9% 5% St Petersburg Moscow and Central (excl. Volga North-Western Ural Southern and Siberia and Leningrad Mo

  31. Slide 31: Sales Density Stabilisation: Impact of Regional Mix

    SALES DENSITY STABILISATION IMPACT OF REGIONAL MIX Unit: ‘000 RUB/m2 (annualised) Overall 267 264 262 262 261 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Moscow & St Petersburg Rest of Russia Moscow region & Leningrad region 223 376 375 358 220 373 374 353 354 355 371 351 217 215 211 Q3 Q4 Q1 Q2 Q3 Q3 Q

  32. Slide 32: Operational Efficiency: Key Initiatives

    OPERATIONAL EFFICIENCY KEY INITIATIVES Proximity stores Supermarkets  Launch of shrinkage committees in macro  Develop and test clustered pricing policies Shrinkage Regional model regions  Rollout of a regional pilot store  Remote F&V acceptance launched at DCs  Smart reduction in the assortmen

  33. Slide 33: Big Data Capabilities

    BIG DATA CAPABILITIES IT DATA SCIENCE CLUSTER METHODS over 300 professionals Big Data is primarily leveraged to drive business operations improvements DEMAND ASSORTMENT PRICING CUSTOMER FORECASTING ADAPTATION OPTIMISATION PERSONALISATION 33

  34. Slide 34: Spread of Technology: New Innovation Capabilities

    SPREAD OF TECHNOLOGY X5 RESPONSE – NEW INNOVATION CAPABILITIES Sources: Stage 1: Stage 2: Stage 3: Stage 4: SCOPING BUSINESS PILOTS ROLLOUT CASE December 1,133 565 134 19 2019 STARTUPS STARTUPS PILOTS PROJECTS ADDED IN 2020 +1,567 +735 +30 +16 December >2,700 1,300 164 35 2020 STARTUPS STARTUPS PILO

  35. Slide 35: Transformation of Karusel Hypermarkets

    TRANSFORMATION OF KARUSEL HYPERMARKETS  34 hypermarkets Karusel now  1.2% of X5’s retail sales in Q3 2021 (down from 2.3% in Q3 2020)  0.3% of X5’s EBITDA in 2020  34 remaining hypermarkets will be considered for closure, or transfer to Transformation Perekrestok or continuation under Karusel br

  36. Slide 36: III. Macro and Market Overview

    III. MACRO AND MARKET OVERVIEW 36

  37. Slide 37: Macro Environment (1/3): Annual Macro Indicators

    MACRO ENVIRONMENT (1/3) ANNUAL MACRO INDICATORS Real GDP growth Nominal retail food sales Food CPI 2.5% growth 1.6% 19.1% 1.3% 0.3% 8.3% 6.5% 5.0% 4.3% 2.5% 1.8% 6.1% 4.5% 3.9% 3.0% (2.5)% 1.7% (3.1)% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Real wage

  38. Slide 38: Monthly Macro Indicators (2/3)

    MONTHLY MACRO INDICATORS (2/3) Real food retail trade growth in 9M 2021 was The increase in real disposable income in driven by the low base effect 9M 2021 was driven by the low base effect 15 Y-o-y growth rates, % 2.5 Y-o-y growth rates, % 10.0 2.0 8.0 10 1.5 6.0 4.0 1.0 5 2.0 0.5 0.0 0.0 0 (2.0) (

  39. Slide 39: Macro Environment (3/3)

    MACRO ENVIRONMENT (3/3) Consumer sentiment deteriorated in Q2 The main factor behind the decline in 2020 driven by the situation with COVID-19 industrial production in 2020 was the and started improving in H2 due to the reduction in domestic and foreign demand, easing of pandemic related restriction

  40. Slide 40: Russian Grocery Retail Market Globally

    RUSSIAN GROCERY RETAIL MARKET GLOBALLY Grocery retail market size globally in 2020 1,322 1,250 407 287 269 266 233 227 USD bln 75 66 49 China USA India Japan France Germany United Russia Turkey Poland Brazil Kingdom CAGR 3.8% 3.2% 10.3% (1.5)% 0.2% 0.5% 0.4% (1.5)% (5.6)% 1.5% (6.6)% 2010-20 Modern

  41. Slide 41: Russian Food Retail Market Will Grow 4% p.a. Mid-Term

    RUSSIAN FOOD RETAIL MARKET WILL GROW 4% P.A. MID-TERM CAGR 4% CAGR 10% 20 CAGR Consolidation phase Nominal 17.9 26% CAGR 17.1 Expansion phase 16.1 16.4 43% 15.1 15 Emerging phase 14.4 13.7 13.4 33% 33% 12.4 25% 24% 11.1 23% 23% 10.0 23% 10 9.1 8.0 13.7 12% 6.5 11% 9% 13% 8% 13% 5% 7% 4.9 14% 5 RUB t

  42. Slide 42: Committed to Major Food Retail Formats

    COMMITTED TO MAJOR FOOD RETAIL FORMATS 2023E: RUB 6.3 trn Market growth Total market size: 2020: RUB 16.4 tn ∆ RUB 1.5 trn 2023E: RUB 18.8 tn 2023E: RUB 3.9 trn 2023E: RUB 3.5 trn 2023E: RUB 3.5 trn ∆ RUB 0.1 trn ∆ RUB (0.1 trn) ∆ RUB 1.5 trn 2020: RUB 4.8 trn 2023E: RUB 1.6 trn ∆ RUB (0.3 trn) 2020

  43. Slide 43: Food Retail Growth Estimates

    FOOD RETAIL GROWTH ESTIMATES Food retail market turnover, RUB trn 16.1 16.4 18.2 20.8 24.8 0.3% 0.9% 1.7% 4% 9% 27% 29% 29% 30% 32% 22% 21% 19% 17% 14% 13% 11% 10% 8% 6% 2% 3% 3% 6% 10% 12% 14% 15% 19% 23% 24% 21% 22% 17% 7% 2019 2020 2021E 2023E 2026E Traditional trade Other formats Hard discounter

  44. Slide 44: Further Consolidation of Food Retail Market

    FURTHER CONSOLIDATION OF FOOD RETAIL MARKET  Currently the top 5 players in Russia control just 32% market share compared to 60-70% in developed markets  Continued shift to modern retail and market consolidation will be the key sources for growth for the top players Share of top-5 grocery retailer

  45. Slide 45: Russian Retail Market Snapshot

    RUSSIAN RETAIL MARKET SNAPSHOT Top 10 Russian food retailers % market share % market share # Company name 2020 2019 1 Х5 12.8% 11.5% 2 Magnit 8.8% 7.6% 3 DKBR 6.6% 5.7% 4 Lenta 2.7% 2.5% 5 Auchan 1.5% 1.5% 6 Svetofor 1.3% 0.7% 7 Metro 1.2% 1.1% 8 O`KEY 1.1% 1.0% 9 Monetka 0.8% 0.7% 10 Vkusvill 0.8%

  46. Slide 46: E-Commerce Food Retail Market

    E-COMMERCE FOOD RETAIL MARKET GMV Russian e-grocery market, RUB bn Key highlights  Russian e-grocery market is estimated to reach 2030E 2,500 RUB 389 bn in 2021, up 251% y-o-y  The e-grocery market is expected to grow faster 2023E 1,048 than any other market segment at 2.7 times by 2023  Delivery

  47. Slide 47: X5 Online Sales Dynamics

    X5 ONLINE SALES DYNAMICS Turnover (GMV*), RUB mln 11,873 11,327 11,169 9,145 6,229 6,817 5,724 3,809 6,391 4,525 1,664 1,317 2,498 1,861 5,336 5,098 5,056 1,014 989 1,052 118 4,060 4,777 710 14 3,208 307 1 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 202

  48. Slide 48: Perekrestok Vprok: Run-Rate 14,000 Daily Orders

    PEREKRESTOK VPROK: run-rate 14,000 daily orders (Oct-2021) Business model overview Key operating metrics Order made by customer 5 (3 in Moscow, via X5 proprietary app Darkstores 1 in St Petersburg, website 1 in Nizhniy Novgorod) Employees c. 3,650 Order received at the Trucks c. 600 nearest X5 dark

  49. Slide 49: Express Delivery: Run-Rate 60,000 Daily Orders

    EXPRESS DELIVERY: run-rate 60,000 daily orders (Oct-2021) Business model overview Key operating metrics Order made by customer Orders per day up to 72,000 via mobile app Average ticket c. 1,400-1,600 Order received at the Stores ~1,400 nearest store Click-to-deliver 50-60 min SKUs per order 12-14 Or

  50. Slide 50: IV. Operational and Financial Results Q3 2021

    IV. OPERATIONAL AND FINANCIAL RESULTS Q3 2021 50

  51. Slide 51: Growing Share of Most Profitable Businesses

    GROWING SHARE OF MOST PROFITABLE BUSINESSES X5 revenue breakdown EBITDA margin 2020 2018 2020 0% 1% 8.1% Pyaterochka 3% 6% Perekrestok 7.2% 16% 15% Karusel 0.8% Discontinued Operations Discontinued Operations (Perekrestok Express (Perekrestok Express offline 79% offline format) format) 81% New busin

  52. Slide 52: X5 Operational Summary (Quarterly)

    X5 OPERATIONAL SUMMARY (QUARTERLY) Net retail sales Traffic, mln customers Net selling space (eop) 1,478 1,497 15.4% 1,401 1,360 12.7% 1,276 9.6% 8.3% 8.3% 7.4% 6.9% 10.7% 11.4% 8.1% 7,840 7,936 8,063 8,212 7,680 526 544 541 486 506 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2

  53. Slide 53: Pyaterochka Proximity Stores Summary (Quarterly)

    PYATEROCHKA PROXIMITY STORES SUMMARY (QUARTERLY) Q3 2021 net retail sales: Q3 2021 selling space: Q3 2021 sales densities: 12.1% increase y-o-y 7.7% increase y-o-y 2.8% increase y-o-y Net sales growth (% y-o-y) Net selling space growth (% y-o-y) Net sales densities (th. RUB/sq. m[1]) 16.3% 18.4% 17.

  54. Slide 54: Perekrestok Supermarkets Summary (Quarterly)

    PEREKRESTOK SUPERMARKETS SUMMARY (QUARTERLY) Q3 2021 net retail sales: Q3 2021 selling space: Q3 2021 sales densities: 14.1% increase y-o-y 10.5% increase y-o-y 1.5% decrease y-o-y Net sales growth (% y-o-y) Net selling space growth (% y-o-y) Net sales densities (th. RUB/sq. m[1]) 344 337 335 334 33

  55. Slide 55: X5 Quarterly Financial Highlights

    X5 QUARTERLY FINANCIAL HIGHLIGHTS (QUARTERLY) Revenue Gross profit & gross margin SG&A (excl. D&A&I&LTI)[1] 26.2% 17.9% 18.6% 19.2% 17.9% 18.8% 15.3% 25.1% 25.2% 25.3% 25.8% 12.7% 10.7% 11.7% 23.8% 102.1 8.1% 98.5 97.1 97.8 140.2 142.2 14.3% 138.1 528.8 546.5 543.6 122.2 126.1 127.6 87.3 486.6 507.2

  56. Slide 56: Q3 2021: Adjusted SG&A Expenses Analysis

    Q3 2021: ADJUSTED SG&A[1] EXPENSES ANALYSIS Q3 2021 analysis as percentage of revenue 91 b.p. 18.9% 18.0% 0.9% 0.8% 15 b.p. 1.4% 1.1% 27 b.p. 1.1% 1.1% (5) b.p. 14.5% 2.0% 2.0% 5 b.p. 0.9% Third party services 1.2% 1.0% Other expenses 4.9% 5.0% (11) b.p. 2.0% Other store costs 0.7% Utilities Lease e

  57. Slide 57: X5 Capital Expenditures

    X5 CAPITAL EXPENDITURES Capex breakdown, Q3 2021 Capex dynamics by quarter, RUB mln 28,034 22,839 23,907 20,583 20,617 16% New store openings Refurbishments Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 40% RUB Logistics 13% IT 20.6 bn Expected change in Capex structure Maintenance -9.7% y-o-y Other 3% 4%

  58. Slide 58: X5 Debt Structure

    X5 DEBT STRUCTURE Debt profile Debt portfolio maturity 100% 3% 34% RUB mln 30 Sep 2021 30 Sep 2020 Total Debt 242,928 228,291 46% Short-Term Debt 67,983 75,520 % of total debt 28.0% 33.1% Long-Term Debt 174,945 152,771 17% % of total debt 72.0% 66.9% Net Debt 230,031 216,619 30 Sep 2021 2021 2022 20

  59. Slide 59: X5 Dividends

    X5 DIVIDENDS Dividend policy Dividends dynamics 127.6%  The dividend policy approved in 2017 and amended 115.8% in 2020. 50.0 87.3% 69.0%  Key dividend policy principals1: 30.0 25.0 21.6 – The Company intends to pay a full year dividend per share that will be stable or growing over time in absolut

  60. Slide 60: X5 Profit and Loss Statement

    X5 PROFIT AND LOSS STATEMENT IAS 17 IFRS 16 RUB mln Q3 2021 Q3 2020 +/( - ) +/ ( - ), % Q3 2021 Revenue 543,586 486,641 56,945 11.7% 543,586 Net retail sales 540,718 485,552 55,165 11.4% 540,718 COGS (403,423) (364,415) (39,008) 10.7% (401,416) Gross profit 140,163 122,226 17,937 14.7% 142,170 Gross

  61. Slide 61: X5 Balance Sheet (IFRS 16)

    X5 BALANCE SHEET (IFRS 16) RUB mln 30 Sep 2021 30 Sep 2020 Total current assets 190,547 171,545 Cash & cash equivalents 12,897 11,672 Inventories 146,278 128,683 Total non-current assets 989,257 942,860 Right of use asset 496,173 462,607 Net PP&E 324,745 319,549 Goodwill 105,022 104,020 Total assets

  62. Slide 62: X5 Cash Flow Statement

    X5 CASH FLOW STATEMENT IAS 17 IFRS 16 RUB mln Q3 2021 Q3 2020 +/( - ) +/ ( - ), % Q3 2021 Net cash generated from operating 45,055 24,547 20,508 83.5% 61,087 activities Net cash from operating activities before 42,250 38,104 4,146 10.9% 68,450 changes in working capital Change in Working Capital, in

  63. Slide 63: Appendix I. Performance Summary of Key Formats

    APPENDIX I. PERFORMANCE SUMMARY OF KEY FORMATS 63

  64. Slide 64: Pyaterochka Summary (1/2)

    PYATEROCHKA SUMMARY (1/2) RUSSIA’S #1 PROXIMITY NETWORK BY REVENUE 17,600 stores as of 6,909 th. sq. m of selling space 30 September 2021, as of 30 September 2021, 7.4% increase y-o-y +7.7% y-o-y Q3 2021 net retail sales – 1,325 mln of customer visits in RUB 448.1 bn, Q3 2021, +6.7% y-o-y 12.1% incr

  65. Slide 65: Pyaterochka Proximity Stores Summary (2/2): Format Strategy Highlights

    PYATEROCHKA PROXIMITY STORES SUMMARY (2/2) FORMAT STRATEGY HIGHLIGHTS  Increase number of loyal customers and maximise share of their wallet: − New CVP and further adaptation of assortment − Leadership in NPS and service level − Better personnel turnover and engagement − Focus on operational effici

  66. Slide 66: Perekrestok Supermarkets Summary (1/3)

    PEREKRESTOK SUPERMARKETS SUMMARY (1/3) RUSSIA’S #1 SUPERMARKET 980 stores as of 1,081 th. sq. m. of selling 30 September 2021, space as of 30 September 2021, 8.3% increase y-o-y 10.5% increase y-o-y Q3 2021 net retail sales of 161 mln customers in Q3 2021, RUB 81.5 bn, +11.3% y-o-y 13.5% increase y-

  67. Slide 67: Perekrestok Summary (2/3): Format Strategy Highlights

    PEREKRESTOK SUMMARY (2/3) FORMAT STRATEGY HIGHLIGHTS  Value proposition and adapting to customer needs: − Further adaptation of assortment with focus on fresh, F&V, ready-to-eat − Omni-channel development − Targeted loyalty system and personalised promo − Best-in-class service, further increase of

  68. Slide 68: Perekrestok Summary (3/3): Vprok.ru Perekrestok

    PEREKRESTOK SUMMARY (3/3): VPROK.RU PEREKRESTOK Net sales, RUB mln Average customer spending per 4,747 4,492 4,256 month, RUB ths 4,188 3,592 11.6 2,836 2,096 6.7 x1.6 6.0 1,630 891 867 922 636 5.6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Before Online launch After Online launch 2018 2019 2019 2019 2019

  69. Slide 69: Appendix II. Russian Food Retail

    APPENDIX II. RUSSIAN FOOD RETAIL 69

  70. Slide 70: Russian Food Retail Market Snapshot in 2020

    RUSSIAN FOOD RETAIL MARKET SNAPSHOT IN 2020 Russian population – key statistics  146.8 mln people Population structure  40 – average age  75% - urbanisation level 22% 22% younger than 20  8.5 people per sq. km - density 20-40 years  25% - share of pensioners 40-60 years Food retail in Russia 27

  71. Slide 71: Healthy Lifestyle Trend Changes Eating Habits

    HEALTHY LIFESTYLE TREND CHANGES EATING HABITS 84% 67% of Russian population of Russian population changed their eating started to eat more habits fruits and vegetables 65% 53% of Russian population of Russian population decreased sugar decreased fat intake consumption 62% of Russian population value

  72. Slide 72: Russian Population Distribution

    RUSSIAN POPULATION DISTRIBUTION North North Name Southern Central Volga Ural Siberian Far East Caucasus Western Population, % 7 11 27 20 10 8 12 6 Land area, % 1 3 4 6 10 11 30 36 Population density 58.5 36.8 60.4 28.1 8.3 6.8 3.9 1.2 (people/km) Share of modern 20% 64% 86% 82% 96% 82% 78% 57% retai

  73. Slide 73: Russian Grocery Retail Market Dynamics

    RUSSIAN GROCERY RETAIL MARKET DYNAMICS CAGR CAGR 2017-2020 2020-2023 16% 26% 24% 22% (3)% (5)% 27% 40% 41% 43% 3% 4% 43% 42% 44% 33% 37% 12% 10% 30% 32% 2017 2018 2019 2020 2023 Federal chains Regional modern trade Traditional trade Source: Infoline Despite the substantial level of modern trade pene

  74. Slide 74: Traditional vs. Modern Retail Across Key World Regions in 2020

    TRADITIONAL VS. MODERN RETAIL ACROSS KEY WORLD REGIONS IN 2020 13% 19% 18% 22% 25% 49% 64% 69% 87% 81% 82% 78% 75% 51% 36% 31% Middle East Asia Pacific Latin America Eastern Australia Western North Russia and Africa Europe Europe America Modern retail Traditional retail Source: Euromonitor, Infoline

  75. Slide 75: Modern Retail Penetration in Russia by Region in 2020

    MODERN RETAIL PENETRATION IN RUSSIA BY REGION IN 2020 Average=78% 97% 89% 85% 82% 82% 82% 69% 64% St Petersburg North-Western Moscow and Central (excl. Ural Volga Siberia and Far South (exc.St Moscow region Moscow and East Petersburg and Moscow region) Leningrad region) Source: Infoline North-Wester

  76. Slide 76: Grocery Retail Regulation in Russia

    GROCERY RETAIL REGULATION IN RUSSIA REGULATORY ASPECT KEY TRENDS Antimonopoly  25% individual market share cap in any given region legislation  Maximum bonuses from suppliers reduced from 10% to 5% from July 2016 Relations with suppliers  Maximum days payable are set depending on a product’s shel

  77. Slide 77: X5 Investor Relations

    X5 Investor Relations iro@x5.ru +7 (495) 662 88 88 ext. 13 147 77

X5 Retail Group — Q3 2021 Earnings Presentation on 6ix