X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q1 2009 Earnings Presentation
12 slides from X5 Corporate Center's earnings presentation, May 28, 2009
Slide 1: Winning Customers With The Power Of 5 - Q1 2009 Financial Results
X5 Winning Customers With The Power Of 5 Q1 2009 Financial Results Conference Call Presentation to Investors and Analysts Moscow, 28 May 2009 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: Q1 2009 Operational Performance
Q1 2009 Operational Performance … Was Solid Despite Tougher Macro-Economic Environment Net Retail Sales, consolidation (1) Net Retail Sales, consolidation (1) RUR mln USD mln 63,089 43,066 + 46% 1,775 + 5% 1,859 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Net Retail Sales, pro-forma (2) Net Retail Sales, pro-fo
Slide 4: Q1 LFL Results Varied from Region to Region & Format to Format
Q1 LFL Results… … Varied from Region to Region & Format to Format • Soft Discounters - clear winners in the trading Q1 LFL Performance by Format Based on RUR- down conditions: denominated gross sales Traffic Basket – 10% traffic inflow in Moscow + 17% – 11% traffic inflow in the regions + 13% + 8% +
Slide 5: Selling Space Expansion in Q1 2009 was Focused and Selective
Selling Space Expansion in Q1 2009… … was Focused and Selective • 33 th.sq. m. or 43 stores added on a net basis: Number Of Stores 1 400 – 38 soft-discounters (including 21 stores 1 200 46 49 acquired in Agrotorg-Rostov transaction in 1 000 15 209 207 December 2008) 800 12 179 600 – 2 supermarkets 1
Slide 6: Selling Space Expansion in Q1 2009 Strengthened Regional Positions
Selling Space Expansion in Q1 2009… ... Strengthened Company’s Regional Positions North-West region Moscow & the region • In Q1 X5 entered 2 new cities (Taganrog and Azov) Q1’09 Sales breakdown: Q1’09 Sales breakdown: 28% Hypermarkets 10% Hypermarkets strengthening its presence in the South of Russi
Slide 7: Logistics Infrastructure Development is One of Our Top Priorities for 2009
Logistics Infrastructure Development… … is One of Our Top Priorities for 2009 Functionality Fruit & Region # of DCs 000 sq. m. Dry Veg Fresh Frozen DC locations as at Central 6 109.1 v v v v 31 March 2009 North-West 4 44.5 v v v v Volgo-Vyatsky 1 15.1 v v v Urals 5 18.2 v v v Centralno-Chernozemny 3
Slide 8: Q1 2009 Financial Review
Q1 2009 Financial Review Stable EBITDA Margin on the Back of Top Line Performance and Cost Controls Net Sales EBITDA & EBITDA Margin EBITDA, USD mln Net Sales, USD mln - 8% EBITDA Margin, % 8,7% -8% 8,7% 2,039 1,867 177 163 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Gross Profit Net (Loss)/Profit Gross Profit,
Slide 9: Q1 2009 P&L Highlights
Q1 2009 P&L Highlights % change % change USD mln(1) Q1 2009 Q1 2008 USD RUR Net Sales 1,866.9 2,038.6 (8%) 28% incl. Retail 1,859.3 2,027.5 (8%) 28% Gross Profit 458.2 518.9 (12%) 23% Gross Margin, % 24.5% 25.5% SG&A (excl. D&A) (320.2) (366.0) (13%) 22% % of revenue 17.2% 18.0% EBITDA 162.7 176.7 (
Slide 10: Key P&L Developments
Key P&L Developments • Q1 2009 gross margin declined 100 bp year-on-year to 24.5%. The decline is attributable to planned investment in prices across formats, a managed reduction in Karusel’s gross margin, and the impact of trading down trends (change of product mix in favour of staples) • SG&A decl
Slide 11: Q1 2009 Cash Flow Highlights
Q1 2009 Cash Flow Highlights Strong Cash Generation from Operations Offset by Working Capital Seasonality % change % change USD mln Q1 2009 Q1 2008 USD RUR Net Cash Flows (used in)/from Operating Activities (38.4) 34.3 n/a n/a Net Cash from Operating Activities before Changes in Working Capital 169.
Slide 12: Liquidity Update
Liquidity Update • In Q1 2009 X5 continued its deleveraging efforts, decreasing Debt Maturity Profile as at 31.03.09 absolute levels of debt by USD 70 mln (excluding the FX effect USD mln on RUR-denominated debt) Denominated in RUR Denominated in USD • By 31 March 2009 the Company completely elimina