Slide 1: M.Video 2015 Investor Presentation
M.Video 2015 Investor Presentation April, 2016
Slide 2: Content and liability disclaimer
Content and liability disclaimer The information contained in this presentation or enclosed herewith is provided and intended for informational purposes only and should not be relied on for any investment decisions. The information provided in the presentation includes assumptions and financial info
Slide 3: Macro Outlook «the worst is over»
Macro Outlook «the worst is over» 1998 2009 2015 2016 GDP, % -5,3% -7,8% -3,7% 0,3% Inflation, % 84,5% 8,8% 12,9% 7,0% Real disposable income, % -16% -3,5% -4,0% -4,1% Oil price, USD 12,7 62,8 51,1 40,0 RUB/USD Exchange rate 9,7 31,7 61,0 67,4 Source: Rosstat, Ministry of Economic development of Rus
Slide 4: Crisis is an opportunity and there is huge potential for growth and consolidation
Crisis is an opportunity and there is huge potential for growth and consolidation 68% 62% Metro AG 37% 55% 48% Metro AG 29% 45% 43% 42% Metro AG 22% Yamada Denki Co Ltd 25% Best Buy Co Inc Casino Guichard- Dixons 37% 35% Expert 29% 26% Perrachon Carphone International Euronics SA Pic GmbH Internatio
Slide 5: We have proven to be able to grow within our geography for more than 20 years
We have proven to be able to grow within our geography for more than 20 years 1993 2000 2007 2014 2015 First Store 50m2 Expansion IPO OMNI Model Sustain + 104 stores 122 stores 368 stores 378 stores ► Almost 100% country coverage ► Continuous organic Greater North* Moscow 31 stores growth of asset b
Slide 6: M.Video Business Model principles remained unchanged
M.Video Business Model principles remained unchanged Best Assortment = Endless Shelf Best Service = Best Price Business Across All Guarantee Channels Model = Price Match All information presented on this slide is subject to the disclaimer note on page 2 6
Slide 7: Omni concept is highly supported by customer journey
Omni concept is highly supported by customer journey Visited stores Order Payment Collection 52% Start offline 48% Online Start online On delivery Source: Roland Berger business Analytics ► Online channels are used almost as often as offline when searching for information ► 70% of those who search f
Slide 8: Strong Value proposition is our success factor
Strong Value proposition is our success factor Trust is vital in uncertain environment Trust Affordable price Value for Assortment money Source: «Brand Health tracking» survey, Dec 2015 (the data is based on the responds of consumers in 11 Russian cities, Q4 2015 vs. Q4 2015) All information present
Slide 9: We have used 2015 window of opportunity not only to grow market share but to improve efficiency
We have used 2015 window of opportunity not only to grow market share but to improve efficiency ► Customer offer and assortment • Focus on best assortment, service and competitive price • Telecom category growth potential – connected services approach • Widening of assortment within endless shelf co
Slide 10: Our 2015 GM is under pressure due to category mix, increased credit and promo
Our 2015 GM is under pressure due to category mix, increased credit and promo and inventory difference … but still sustainable Gross Margin %, 2014-2015 Raised margins due to Rub devaluation 2014 26.7% 26% 26% 23% 23% 23.8% 24.1% 2007-2013 2014 2015 2016-2020 ► Current Target gross margin approach i
Slide 11: We have demonstrated an outstanding control of SG&A costs…
We have demonstrated an outstanding control of SG&A costs… as % of as % of 2015 revenue 2014 * revenue RUBm % RUBm % Payroll and related taxes 10 089 6,2% 11 048 6,4% Lease expenses 8 054 5,0% 8 812 5,1% Advertising & promotional expenses 3 640 2,3% 3 923 2,3% Utilities, maintenance & other property
Slide 12: ...and we continue to control our Working capital and generate positive cash flow
...and we continue to control our Working capital and generate positive cash flow Operating Cash Flow, 2010-2015 RUB bln 1.6% 2.4% 3.2% 9.8% 25.5% 8.2% 14,000 12,000 9,848 10,000 8,000 6,817 6,000 4,652 4,000 3,595 2,000 700 1,000 0 2010 2011 2012 2013 2014 2015 - Operating Cash before WC - Dividend
Slide 13: M.Video follows future industry trends
M.Video follows future industry trends ► Be mobile ► Content is key ► Personalized sales ► Wide assortment drives sales ► Best technological solutions to support sales All information presented on this slide is subject to the disclaimer note on page 2 13
Slide 14: Comprehensive Income Highlights
Appendix Comprehensive Income Highlights 2015 2014* Profit & Loss Statement, 2015 vs 2014 RUBm RUBm Revenue 161 691 172 712 Cost of Sales (122 782) (126 544) Gross Profit 38 909 46 168 Selling, general and administrative expenses (34 596) (37 237) Other operating income 1 411 2 001 Other operating e
Slide 15: Consolidated Statement of Financial Position Summary
Appendix Consolidated Statement of Financial Position Summary 31 December 31 December 31 December 2015 2014* 2013* ASSETS RUBm RUBm RUBm Property, plant and equipment 8 880 9 935 9 696 Intangible assets 4 974 4 310 3 190 Deferred tax assets, net 3 556 3 084 2 503 Other non-current assets 649 636 707
Slide 16: Consolidated Statement of Cash Flows Summary
Appendix Consolidated Statement of Cash Flows Summary 2015 2014* RUBm RUBm OPERATING ACTIVITIES: Net profit for the year 4 547 8 174 Adjustments 5 224 5 085 Operating cash flows before movements in working capital 9 771 13 259 Change in working capital (12 879) 14 903 Cash (used in)/generated by ope
Slide 17: Contact Information
Contact Information PJSC “M.video” Nizhnaya Krasnoselskaya Str., 40/12 Moscow 105066 Russia Tel: +7 495 644 28 48, ext. 7064 E-mail: ir@mvideo.ru Official web-site: invest.mvideo.ru Official ticker: MVID RU Exchange: Moscow Exchange For investor relations purposes, please contact: Ekaterina Sokolova