X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q1 2010 Earnings Presentation
13 slides from X5 Corporate Center's earnings presentation, May 27, 2010
Slide 1: Q1 2010 Financial Results
Q1 2010 Financial Results Conference Call Presentation 27 Mayy 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: Progress On X5 Strategic Objectives
Progress On X5 Strategic Objectives • Strong 7% LFL sales growth • New structure to position • New store openings and Operational supported by 2% traffic supermarkets and capex on track Drivers growth hypermarkets for upturn • Low Low-2020 percent sales • Industry-leading discounters • Paterson inte
Slide 4: Q1 2010 Top Line Performance
Q1 2010 Top Line Performance… … Was W Solid S lid Against A i t Still Weak W k Consumer C Spending S di & Dramatically D ti ll Lower L Food Inflation • 20% net retail sales growth in RUR against a backdrop Q1 2010 Net Retail Sales of weak consumer spending…. RUR bln • …and drastically lower food inf
Slide 5: Q1 2010 LFL Results
Q1 2010 LFL Results… … Led L d by b Powerful P f l Performance P f att Discounters Di t with ith Basket B k t Significantly Si ifi tl Above Ab Internal Inflation Supermarkets’ Q1 2010 LFL Performance • X5’s LFL sales growth stable at 7% Based on RUR- RUR quarter-on-quarter versus internal inflation
Slide 6: Selling Space Expansion in Q1 2010
Selling Space Expansion in Q1 2010 S l ti and Selective d Efficient Effi i t New N Store St Openings O i In Q1 2010 Number Of Stores, EoP • Net 27 stores or 22 th. sq.m. q of selling g space p added: –24 discounters –one supermarket –two hypermarkets • At 31 March 2010 X5 operated 1,399 stores (1,08
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 -60 bps (1) Excluding ESOP p. 7
Slide 8: Q1 2010 Financial Performance
Q1 2010 Financial Performance(1) Net Sales EBITDA & EBITDA Margin USD mln 36% 10% Gross Profit Net Profit / (Loss) 30% (82) Q1 2009 (1)All P&L numbers are provided on pro-forma basis p. 8
Slide 9: Q1 2010 P&L Highlights
Q1 2010 P&L Highlights(1) USD mln Q1 2010 Q1 2009 % change % change y-o-y, USD y-o-y, RUR Net Sales 2 542 7 2,542.7 1 866 9 1,866.9 36% 20% incl. Retail 2,534.4 1,859.3 36% 20% Gross Profit 594.1 458.2 30% 14% Gross Margin, % 23.4% 24.5% SG&A (excl. (excl ESOP) (485.5) (368.1) 32% 16% % of revenue 1
Slide 10: Key Q1 2010 P&L Developments
Key Q1 2010 P&L Developments Net sales increased 20% year-on-year in RUR terms to RUR 76,003 mln or 36% in USD terms to USD 2,543 mln; Gross profit totaled USD 594 mln mln, for a gross margin of 23 23.4%; 4%; SG&A expenses before ESOP as percent of sales decreased by 60 bp year-on-year to 19.1
Slide 11: Q1 2010 Cash Flow Highlights
Q1 2010 Cash Flow Highlights The Company Th C used d available il bl cash h to t expand d stores t selectively l ti l andd reduce d total t t l debt by net USD 133 million. % change % change USD mln Q1 2010 Q1 2009 USD S RUR Net Cash Flows from Operating Activities (129.5) (38.4) 237% 197% Net Cash
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 31 31.03.10 03 10 • In the first quarter X5 continued to strengthen its balance USD mln sheet and liquidity, reducing total debt by net USD 133 mln. 1,530.9 • As of end March 2010 2010, the Company Compa
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