X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2013)
17 slides from X5 Corporate Center's investor day presentation, Oct 11, 2013
Slide 1: X5 Retail Group Capital Markets Day
X5 Retail Group Capital Markets Day Stephan DuCharme X5 Chief Executive Officer 11 October 2013
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: Creating a Multi-Format Retailer
Creating a Multi-Format Retailer X5 since 2005 Capturing a greater share of the customer’s wallet The right strategy, however not always the right focus 3
Slide 4: Core Business Strengths
Core Business Strengths We are confident we can turn the situation around… Favorable retail market Diversified brand fundamentals portfolio Right operational model Quality asset base: for multi-format strategy stores & locations High standards of Developed logistics corporate governance infrastructu
Slide 5: Strategy and Priorities
Strategy and Priorities No Change in Strategy Leverage our scale and multi-format value proposition to capture greater wallet share by providing the best customer experience in the dynamic Russian food retail market Strategic Priorities Build the right management team Define appropriate format v
Slide 6: New Team & Values
New Team & Values Executive Board Shared Business Values Operational Professionalism Karusel Pyaterochka Perekrestok S. Volikova O. Naumova J. Lella Result oriented supported by strong divisional teams of experienced Russian & International retailers Client orientation (external/internal) Cent
Slide 7: Format Value Propositions
Format Value Propositions Surprising customers everyday! #1 Supermarket for fresh! Convenient shopping, fair prices! We want to move closer to customers, Develop fresh categories with an accent Why I shop at Karusel: and surprise with cleanness, freshness on quick and easy purchases: I can find ev
Slide 8: Closer to the Stores
Closer to the Stores Back to Basics Retail Assortment Availability In-store operations – routines & processes Personnel – training & accountability Focus on like-for-like results Pyaterochka: Refurbishments, new operational model (incl. category management/logistics) and updated assortme
Slide 9: Multi-format Business Model
Multi-format Business Model Mid – 2011 begin transition towards a multi-format organizational structure, start cascading resources to Pyaterochka Perekrestok Karusel formats Perekrestok Express, E5.RU Operations Operations Operations Strong, autonomous banners provide long-term success in Market
Slide 10: New Operational Model
New Operational Model New structure reinforces format strategy and value propositions Globally most multi-format retailers provide significant operational independence to individual formats Dedicated operations, category management & supply chain teams focus on customer needs, drive sales and av
Slide 11: Category Management
Category Management Customer-focused: “We buy what our customers want to buy”… Creation of two category management teams: Pyaterochka: team in place and functioning Big formats: Perekrestok and Karusel will use existing commercial department services until 1 February 2014 with increased focus,
Slide 12: Category Managers' Responsibilities
Category Managers’ Responsibilities Core responsibilities of category managers Category indicators Right assortment Sales, losses Right price and place on the shelf Stock turnover Proper margins Gross profit (RUR) Proper suppliers’ trade terms Accounts receivable and accounts payable
Slide 13: Supply Chain Concept
Supply Chain Concept Focus on individual needs of formats Different value propositions and assortments – Perekrestok & Karusel have larger proportion of fresh category (fish, meat, poultry, fruit & vegetables) & non-food Different levels of centralization – higher for Pyaterochka Store densiti
Slide 14: Supply Chain Transformation
Supply Chain Transformation Sep Oct Nov Dec 2014 2015 2016 Strategy and requirements Organizational separation DC separation Plan agreed New DCs Plan agreed Transport solution Plan agreed 14
Slide 15: IT – Platform for Growth
IT – Platform for Growth 15 IT is a competitive advantage for X5 Fully integrated SAP Retail platform – a base that no other Russian retailer has and one that we have not used to the fullest potential Scalable IT platform to allow company growth: from both the physical store perspective as well
Slide 16: Improving Supplier Relationships
Improving Supplier Relationships To move closer to the customer we also need to improve our supplier relationships Better cooperation on assortment Streamlined processes for new product introduction Sharing information on sales, plans and forecasts Category reviews and management with suppli
Slide 17: Thank you for your attention!
Thank you for your attention! 17