X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q3 2013 Earnings Presentation
18 slides from X5 Corporate Center's earnings presentation, Nov 14, 2013
Slide 1: Third Quarter 2013 Financial Results Conference Call
Third Quarter 2013 Financial Results Conference Call Sergey Piven, X5 Chief Financial Officer Moscow, Russian Federation 14 November 2013
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: Summary Highlights – Q3 2013
Summary Highlights – Q3 2013 Our Business • Multi-brand retail operator: Pyaterochka (Soft Discounter), Perekrestok (Supermarket), Karusel (Hypermarket) plus assorted brand name convenience stores Q3 2013 Operating Results • Total number of stores – 4,187 with net selling space of 2,081 th sq. m. •
Slide 4: Regional Presence (1)
Regional Presence (1) Q3 2013 Regional Store Breakdown Overview St. Petersburg & Moscow & Central region • Multi-format presence in 62 cities of North-West region Pyaterochka: 1,507 Pyaterochka: 558 Perekrestok: 218 European Russia, the Urals and Ukraine Perekrestok: 39 Karusel: 19 with population >
Slide 5: Financial Overview – Q3 2013 vs. Q3 2012
Financial Overview – Q3 2013 vs. Q3 2012 5
Slide 6: Sales & EBITDA Breakdown
Sales & EBITDA Breakdown 690 164 509 124,246 798 5,515 485 Net sales 116,085 breakdown, Total: + 7.2% Total: + 2.0% Total: + 5.6% Total: + 54.4% RUR million Central: + 6.0% Central: + 3.1% Central: + 12.2% Central: + 54.4% NW: - 4.0% NW: + 6.2% NW: - 0.5% NW: - Other: + 20.1% Other: - 3.4% Other: +
Slide 7: Financial Highlights
Financial Highlights USD million Q-o-Q Y-o-Y Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 (when applicable) +/( - )% +/( - )% Retail sales 3,610.4 4,307.8 4,152.5 4,209.8 3,748.5 (11.0) % 3.8 % Total revenues 3,616.7 4,319.9 4,160.0 4,221.6 3,770.6 (10.7) % 4.3 % COGS 2,791.7 3,278.2 3,144.0 3,223.4 2,82
Slide 8: SG&A Breakdown
SG&A Breakdown % of Net % of Net % of Net % of Net Q3 2012 Q3 2013 USD mln Q2 2013 Q3 2013 Sales Sales Sales Sales (290.0) 8.0% (314.0) 8.3% Staff Costs (339.8) 8.0% (314.0) 8.3% (145.9) 4.0% (175.8) 4.7% Lease Expenses (175.7) 4.2% (175.8) 4.7% (68.2) 1.9% (67.5) 1.8% Other Store Costs (71.6) 1.7%
Slide 9: Cash Flow Highlights
Cash Flow Highlights USD mln Q3 2012 Q3 2013 +/( - ) % change Net Cash From Operating Activities 131.4 104.0 (27.4) (20.9) % Net Cash from Operating Activities before Changes in Working Capital 221.9 280.9 58.9 26.6 % Change in Working Capital 24.3 (89.2) (113.6) n/a Net Interest and Income Tax Paid
Slide 10: Condensed Balance Sheet (1)
Condensed Balance Sheet (1) USD mln 31 December 2012 30 September 2013 +/( - ) +/( - )% Total current assets 2,465.9 1,874.9 (591.1) (24.0) % incl. Cash & cash equivalents 407.9 116.5 (291.4) (71.4) % incl. Inventories 1,114.9 889.1 (225.8) (20.3) % Total non-current assets 7,116.4 6,771.3 (345.1) (
Slide 11: Capital expenditures overview
Capital expenditures overview Q3 2013 CapEx amounted to USD 190 mln Net Investment Cash Flows, USD mln (1) 226.0 195.4 Reconstruction & Maintenance 30% New Store 159.2 Openings 152.4 65% 105.3 Logistics, IT & Other 5% Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 In Q3 2013, capex focused on investments i
Slide 12: Debt Structure
Debt Structure Debt profile Debt portfolio maturity USD mln 31 Dec 2012 % in total 30 Sep 2013 % in total 29.0% 30.0% Total Debt 4,027.3 3,751.6 23.8% Short-Term Debt 1,680.9 41.7% 1,368.8 36.5% 17.2% Long-Term Debt 2,346.4 58.3% 2,382.8 63.5% Net Debt / (Net Cash) 3,619.4 3,635.1 RUR/USD exch. rate
Slide 13: Appendix
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Slide 14: 2013 YTD Expansion Update
2013 YTD Expansion Update Number of Stores Opened, net Selling Space Added, net thd sqm 95 90 81 78 35 28 56 24 51 46 45 45 40 38 41 16 16 39 15 16 15 34 33 13 13 14 14 22 11 18 8 11 2 4 3 Jan Feb Mar Apr May Jun Jul Aug Sep -5 Jan Feb Mar Apr May Jun Jul Aug Sep 2013 2012 Expansion y-o-y in 9M 2013
Slide 15: 2013 Total Sales Growth
2013 Total Sales Growth Total X5 Sales Growth, % Pyaterochka Sales Growth, % 8.7% 10.2% 10.8% 11.0% 8.0% 8.2% 7.5% 8.7% 8.0% 7.2% 7.7% 7.4% 5.0% 5.9% 5.4% 7.3% 7.2% 7.3% 7.0% 6.2% 6.1% 6.7% 5.9% 5.8% 3.8% 1.3% 10.2% 5.6% 3.4% 10.0% 7.2% 5.7% 3.9% 6.0% 5.8% 7.1% 5.0% 6.9% 5.4% 7.1% 4.2 % 3.7% 4.6% 4.
Slide 16: 2013 LFL Sales Dynamics (1)
2013 LFL Sales Dynamics (1) Total LFL Sales Growth, % Pyaterochka LFL Sales Growth, % 0.2% 1.6% 0.0% 0.1% 0.3% 6.1% 5.1% 4.9% 5.5% 5.8% 5.6% 1.2% 4.4% 4.7% 5.0% 2.8% 3.6% 3.6% 3.9% 0.6% 3.9% 3.8% 0.4% 2.0% 2.2% (3.3 %) (4.2 %) (2.4 %) (1.6 %) (1.4 %) (0.7 %) (4.0 %) (4.2 %) (4.4 %) (5.4 %) (4.1 %) (
Slide 17: 2013 Convenience Stores (1) Results
2013 Convenience Stores (1) Results Net Retail Sales Growth, % LFL Sales Growth(2), % 17.9 % 99.5 % 15.0 % 15.6 % 15.6 % 83.1 % 83.7 % 82.9 % 14.8 % 14.1 % 76.5 % 77.2 % 71.9 % 13.0 % 12.2 % 11.9 % 61.1 % 59.2 % 10.4 % 43.8 % Jan Feb Mar Apr May Jun Jul Aug Sep 9M Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 18: Contact Information
Contact Information IR Department Contact Details Gregory Madick Andrey Napolnov, CFA Executive IR Director Senior IR manager Tel.: +7 (495) 502 97 83 Tel.: +7 (495) 662 8888 ext. 22-455 Mob.: +7 (910) 459 73 56 Mob.: +7 (926) 654 6262 E-mail: Gregory.Madick@X5.ru E-mail: Andrey.Napolnov@X5.ru Addre