M.video · RUS:MVID

M.video — M.Video-Eldorado Group — FY2019 Earnings Presentation

29 slides from M.video's earnings presentation, Mar 24, 2020

  1. Slide 1: M.Video-Eldorado Group FY 2019 Audited IFRS Results

    M.VIDEO- ELDORADO GROUP FY 2019 AUDITED IFRS RESULTS MARCH 24, 2020

  2. Slide 2: Content & liability disclaimer

    Content & liability disclaimer The information contained herein has been the Company’s or its subsidiaries’ present Company’s or its subsidiaries’ advisers, or any prepared by PJSC “M.Video” (the “Company”). and future business strategies and the of the Company’s respective subsidiaries, The informa

  3. Slide 3: Content: Market trends and operational highlights

    01 Content Market trends and Group’s operational highlights in FY 2019 Group’s financial results in FY 2019

  4. Slide 4: FY 2019 key highlights

    FY 2019 key highlights Integration of Eldorado MediaMarkt stores Unified business model RUB 6 billion dividend paid completed: single legal entity rebranding for M.Video and Eldorado in December 2019: upon and ERP system completed introduced the successful integration of M.Video and Eldorado RTD ful

  5. Slide 5: Russian CE market growth slowed down in 2019

    Russian CE market growth slowed down in 2019 due to macro factors and abnormally high base of 2018, though the growth is in line with the 5-year average Market turnover dynamics, YoY % Russian CE market, RUB bn CE retail market turnover Non-food retail market turnover 2.9 % 16.6 % Y-o-Y growth 4.2%

  6. Slide 6: Group continued to outperform the market in 2019

    Group continued to outperform the market in 2019 25.9% 25.6% The Group consistently Market Share, % 15.6% 16.7% 16.8% 01 outperforms the market on top line growth 14.6% Sales Growth, YoY, % FY’2014 FY’2015 FY’2016 FY’2017 FY’2018 FY'2019 The Group continuously 18.8% 5.5% 13.3% 7.7% 19.6% 4.6% 02 inc

  7. Slide 7: M.Video-Eldorado is an undisputable CE market leader in Russia

    M.Video-Eldorado is an undisputable CE market leader in Russia with strong online presence Russia CE total market Russia CE online market Computer specialists Marketplaces⁵ Computer specialists Marketplaces⁵ National chains¹ Mobile operators³ Others National chains¹ Mobile operators³ Others Telecoms

  8. Slide 8: Eldorado strengthens Digital categories 5 times outpacing the market

    Eldorado strengthens Digital categories 5 times outpacing the market 63 % x 3 44 % x 5 Digital amounted to 63% Group grew 3 times faster M.Video increased Digital Eldorado grew 5 times of the total CE market in Russia than the Digital market share in its sales to 44% faster than the market FY’19 / F

  9. Slide 9: m_mobile: aiming for digital market leadership

    m_mobile: aiming for digital market leadership 513 shop-in-shops 19 m_mobiles Incl. 1 pilot store Shop-in-Shops in all M.Video stores Standalone stores in 2019 Co-branding with MTS Unique retail format for Russian market: 200-300 sq. m Coffee-zone 9% 2% 76% 13% More than 2,000 Fun zones: VR, digital

  10. Slide 10: Enhancing customer proposition via consumer credits and cashless payment

    Enhancing customer proposition via consumer credits and cashless payment 22.0 % + 15.1 % 11 banks 2 x Credit sales Credit checks 8 available mobile payments doubled for both brands in 2019 in online for the Group in 2019 Installment payments Credit broker platform Payments via Dynamic QR-codes One o

  11. Slide 11: ONE RETAIL – a game changing strategy

    ONE RETAIL – а game changing strategy Company Customer Check-in  Personalized  Client recognition experience  Tracking and analysis  Loyalty program of previous activity Catalogue  Endless shelf  Understanding of  Personalized price customer preferences  Dynamic pricing  SKU management Bask

  12. Slide 12: First results of ONE RETAIL implementation

    First results of ONE RETAIL implementation Real-time dealing fully rolled-out at M.Video stores by August 2019 10.7 mn 530+ stores authorizations (100% of M.Video & (34% of all RTD checks) m_mobiles connected) ~84% 2.3 units units per transaction of M.Video in-store (1.5x more vs M.Video checks reta

  13. Slide 13: Group online sales growth boosted by ONE RETAIL in 2019

    Group online sales growth boosted by ONE RETAIL in 2019 + 3.8% sales growth + 70.2% TOS growth Group demonstrated stable growth supported by Solid online sales supported by RTD implementation across all M.Video new store openings and strong online sales growth stores as a core component of the new O

  14. Slide 14: Group increased its footprint by 983 stores in 2019

    Group increased its footprint by 97 stores in 2019 1,038 stores in 252 cities of Russia 2019 HIGHLIGHTS Total Key Success Factor for Online-driven Business # of Stores, eop 513 506 19 1,038 North1 99 +7 Far East 28 983 stores 55 Center +6 +5 leased owned 140 Siberia +1 149 Moscow +4 +4 234 Urals +6

  15. Slide 15: Well-invested infrastructure platform supporting online operations and business expansion

    Well-invested infrastructure platform supporting online operations and business expansion Efficient infrastructure platform + 10-15 Increase of online traffic in the % area where new store is opened 9 distribution centers & 57 regional multiplatforms >420 thousand m3 North of merchandise 7 Central d

  16. Slide 16: Group's financial results in FY 2019

    02 Content Market trends and Group’s operational highlights in FY 2019 Group’s financial results in FY 2019

  17. Slide 17: FY 2019 Group revenue and gross profit

    FY 2019 Group revenue and gross profit Revenue grew by Gross profit improved by + 3.6% + 4.8% Group revenue (net of VAT), RUB bn Group gross profit, RUB bn 3.6% 352.5 365.2 4.8% 86.8 91.0 FY 2018 FY 2019 FY 2018 (IAS 17) FY 2019 (IAS 17) # stores Gross margin 941 1,038 24.6% 24.9% M.Video–Eldorado G

  18. Slide 18: FY 2019 Group EBITDA and net income

    FY 2019 Group EBITDA and net income + 18.1% 7.3% + 44.8% EBITDA growth YoY EBITDA margin improved Adjusted net income growth YoY by +0.9pp YoY Group EBITDA, RUB bn Group adjusted net income, RUB bn1 18.1% 46.6 44.8% 22.7 26.7 11.2 9.1 7.7 FY 2018 (IAS 17) FY 2019 (IAS 17) FY 2019 (IFRS 16) FY 2018 (

  19. Slide 19: EBITDA margin and net income (IAS 17) evolution

    EBITDA margin and net income (“IAS 17”) evolution EBITDA margin (“IAS 17”) evolution Adjusted net income1 (“IAS 17”) evolution In RUB bn Group EBITDA 6.4% Adj. net income 7.7 (FY 2018) EBITDA Margin (FY 2018) increased by +0.9pp YoY +RUB 4.1 bn EBITDA Gross improvement YoY profit 0.3pp EBITDA 4.1 Re

  20. Slide 20: IFRS 16 vs. IAS 17 EBITDA and net income overview

    “IFRS 16” VS. “IAS 17” EBITDA and net income overview “IFRS 16” EBITDA higher “IFRS 16” Net Income lower due to changes in long-term lease expenses recognition mainly due to changes in finance cost 17.2 19.9 12.8% 4.4 7.2 RUB 9.1 bn Rent & utilities EBITDA “IFRS 16”, EBITDA margin “IFRS Operating ex

  21. Slide 21: FY 2019 Group cash balance evolution

    FY 2019 Group cash balance evolution RUB 6.3 bn RUB 11.0 bn RUB 16.0 bn Cash generated by Cash used in Cash used in operating activities investing activities financing activities FY 2019 cash balance evolution (IAS 17) In RUB bn Net cash generated by Net cash used in Net cash used in operating activ

  22. Slide 22: FY 2019 Group leverage

    FY 2019 Group leverage Gross leverage decreased by Net leverage increased to 0.8x 1.7x Gross debt / EBITDA (IAS 17) Net debt / EBITDA (IAS 17) 0.8x 0.2x 2.6x 1.8x 1.7x 1.5x FY 2018 FY 2019 FY 2018 FY 2019 Gross debt (RUB bn) Net debt (RUB bn) 59.5 49.4 34.0 44.7 M.Video–Eldorado Group FY 2019 Audite

  23. Slide 23: Group 2020 YTD operating performance

    Group 2020 YTD operating performance Sales grew by LFL sales up TOS as % of Group Sales + 18.2% + 13.1% 43.5% Group Sales (with VAT), RUB bn Group TOS (with VAT), RUB bn 18.2% 64.6% 13.1% 43.2 LFL sales 84.0 growth 99.3 26.2 Jan-Mar 15, 2019 Jan-Mar 15, 2020 Jan-Mar 15, 2019 Jan-Mar 15, 2020 TOS as

  24. Slide 24: Appendix

    Content APPENDIX © 1 8 v (= MNideoEldorado 0 | D>

  25. Slide 25: Group profit & loss key highlights

    Group profit & loss key highlights In millions of Russian rubles FY 2019 FY 2018 Change YoY FY 2019 “IAS 17” “IAS 17” “IFRS 16" Revenue 365 216 352 483 +3.6% 365 216 Gross profit 91 015 86 839 +4.8% 91 073 Gross margin, % 24.9% 24.6% +0.3 pp 24.9% Selling general and administrative expenses (incl. D

  26. Slide 26: Group SG&A expense breakdown

    Group SG&A expense breakdown In millions of Russian rubles FY 2019 FY 2018 FY 2019 “IAS 17” “IAS 17” “IFRS 16" Personnel 23 438 24 615 23 438 As % of revenue 6.4% 7.0% 6.4% Rent and utilities 21 335 19 000 4 145 As % of revenue 5.8% 5.4% 1.1% Advertising & marketing 6 025 6 167 5 914 As % of revenue

  27. Slide 27: Group statement of financial position

    Group statement of financial position In millions of Russian rubles 31.12.2019 31.12.2018 31.12.2019 ”IAS 17” “IAS 17” “IFRS 16” Assets Non-current Assets 97 457 98 855 158 711 Fixed assets 19 946 20 597 19 777 Intangible assets 69 671 68 272 69 038 Right-of-use assets – – 62 832 Other non-current 7

  28. Slide 28: Group statement of cash flow

    Group statement of cash flow In millions of Russian rubles FY 2019 FY 2018 FY 2019 ”IAS 17” “IAS 17” “IFRS 16” Operating CF Operating cash flows before movements in WC 26 857 23 722 46 115 Inventory change (16 946) (32 114) (16 946) Trade payables 20 707 36 579 20 707 Others (15 929) 810 (16 151) In

  29. Slide 29: Contact information

    Contact information PJSC “M.VIDEO” Address Listing 105066, Russia, Moscow Nizhnaya Krasnoselskaya Str., 40/12 bld 20 The Moscow Stock Exchange Web-site Ticker invest.mvideo.ru MVID Natalya Belyavskaya (IR) For investors’ +7 495 644 28 48 requests, ext. 1425 please, contact: ir@mvideo.ru Valeriya And

M.Video-Eldorado Group — FY2019 Earnings Presentation on 6ix