X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q3 2010 Earnings Presentation
16 slides from X5 Corporate Center's earnings presentation, Nov 26, 2010
Slide 1: Q3 & 9M 2010 Financial Results
Q3 & 9M 2010 Financial Results Conference Call Presentation 26 November 2010
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: Agenda
Agenda I. Q3 2010 Highlights II. Q3 2010 Operational Performance III. Q3 & 9M 2010 Financial Performance 3
Slide 4: Positive Outlook
Positive Outlook • Q3 2010 - Best top-line growth this year • Consumer spending recovery and trading-up now visible • Well on track to meet 2010 growth outlook • Execution of store expansion plan ahead of expectations 4
Slide 5: Q3 2010 Highlights
Q3 2010 Highlights We are well on track to deliver on X5’s 2010 outlook 116 New Stores 21% (Net addition of 54 thousand sq. m.) Net Sales Growth (RUR) 8.0% (Net sales increased to RUR 80 bn) EBITDA Margin Before ESOP (EBITDA margin, incl. ESOP amounted to 7.4%) 5
Slide 6: New Retail Format "Pyaterochka-Maxi"
New Retail Format “Pyaterochka-Maxi” First Pyaterochka-Maxi Opened 18th November 2010 in Syzran (Samara Region) Pyaterochka-Maxi extends the brand’s price leadership advantages in a new “economy-class” hypermarket • Format specially developed for Russian regions, enabling X5 to reach under-served cu
Slide 7: Q3 2010 Operational Performance
Q3 2010 Operational Performance X5 Delivered Its Best Top-Line Growth of 2010 with RUR Net Retail Sales Up 21% • Sales growth in the third quarter 2010 consisted of 6% LFL sales growth with the rest coming from organic expansion (+13%) as well Q3 2010 Net Retail Sales as the contribution from acquir
Slide 8: Q3 2010 LFL Results
Q3 2010 LFL Results Strong Sales and New Store Openings in Discounter Segment Positive Trends In Supermarkets LFL Performance • X5’s LFL sales growth at 6% in RUR terms year-on-year • Soft discounters achieved 10% LFL growth against last Supermarkets’ Q3 2010 LFL Performance year’s high comparable b
Slide 9: Selling Space Expansion in Q3 2010
Selling Space Expansion in Q3 2010 Record 116 New Stores Added In Q3 2010 – X5 On Track to Exceed 2010 New Store Plan While Staying Below CapEx Limit Number Of Stores, EoP In Q3 2010 • Net 116 stores or 54 th. sq.m. of selling space added: 1 635 44 65 1 435 58 – 97 soft discounters 289 1 235 46 275
Slide 10: Strategic Efficiency Program Update
Strategic Efficiency Program Update X5’s multi-year effort has made good progress in establishing a strong efficiency platform for the Company to drive competitive advantages and growth IT Systems Integrated Supply In-Store Labour Asset Business Processes Transformation Chain Logistics Productivity
Slide 11: Q3 & 9M 2010 Financial Performance
Q3 & 9M 2010 Financial Performance(1) Net Sales EBITDA & EBITDA Margin USD mln EBITDA, USD mln EBITDA Margin, % 7.7% 8.4% 7.4% 7.6% 24% 28% 20% 17% 2,614 7,798 2,103 6,081 194 593 162 509 Q3 2009 Q3 2010 9M 2009 9M 2010 Q3 2009 Q3 2010 9M 2009 9M 2010 Gross Profit Net Profit / (Loss) Gross Profit, U
Slide 12: Q3 & 9M 2010 P&L Highlights
Q3 & 9M 2010 P&L Highlights(1) % change % change % change % change USD mln Q3 2010 Q3 2009 9M 2010 9M 2009 USD RUR USD RUR Net Sales 2,614.0 2,103.1 24% 21% 7,797.7 6,081.2 28% 19% incl. Retail 2,606.6 2,094.2 24% 21% 7,778.6 6,053.2 29% 20% Gross Profit 629.9 501.8 26% 23% 1,861.8 1,480.8 26% 17% G
Slide 13: Key Q3 2010 P&L Developments
Key Q3 2010 P&L Developments Net sales increased 21% year-on-year in RUR terms to RUR 80,050 mln or 24% in USD terms to USD 2,614 mln; Gross profit totaled USD 630 mln, for a gross margin of 24.1%; EBITDA amounted to USD 194 mln, for an EBITDA margin of 7.4%; X5 reported a net profit of USD
Slide 14: Q3 & 9M 2010 Cash Flow Highlights
Q3 & 9M 2010 Cash Flow Highlights % change % change % change % change USD mln Q3 2010 Q3 2009 9M 2010 9M 2009 USD RUR USD RUR Net Cash Flows from Operating Activities 72.8 151.0 (52%) (55%) (66.2) 190.5 n/a n/a Net Cash from Operating Activities before Changes in Working Capital 210.6 191.8 10% 7% 6
Slide 15: Debt Financing and Liquidity
Debt Financing and Liquidity Highlights Debt Maturity Profile as at 30.09.10 USD mln • As at 30 September 2010, the Company’s total debt amounted to RUR 60 billion or USD 1,965 million (at RUR/USD exchange rate of Denominated in RUR Denominated in USD 30.4) • Net debt totaled RUR 57 billion or USD 1
Slide 16: Time for Q&A
XS5RETAILGROUP Time for Q&A — ‘S Tameporwa nEPEKPECTOK BER APE