X5 Corporate Center · RUS:X5

X5 Corporate Center — X5 Retail Group — H1 2014 Earnings Presentation

22 slides from X5 Corporate Center's earnings presentation, Aug 14, 2014

  1. Slide 1: 2nd Quarter & 1st Half 2014 Financial Results

    2nd Quarter & 1st Half 2014 Financial Results Conference Call Presentation Stephan DuCharme, CEO Sergey Piven, CFO Moscow, Russian Federation 14 August 2014 X5 RETAIL GROUP

  2. 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

  3. Slide 3: Macro & Retail Market

    Macro & Retail Market )XBRETAILGROUP © Tramiépouxa fonlep=xpecton Bx

  4. Slide 4: Q2 2014 Russian Macro & Retail Market

    Q2 2014 Russian Macro & Retail Market Industrial production Real Retail Food Sales Growth Food CPI 9.8% 2.8% 9.5% 2.4% 9.4% 1.9% 1.2% 9.0% 0.4% (0.3%) (0.1%) (1.2%) Apr'14 May'14 Jun'14 Q2'14 Apr'14 May'14 Jun'14 Q2'14 Apr'14 May'14 Jun'14 Q2'14 Real Wage Growth Unemployment rate Consumer Confidence

  5. Slide 5: Q2 2014 Financial Results

    Q2 2014 Financial Results )XBRETAILGROUP © Tramiépoura foNlep=xpecton Bx 4

  6. Slide 6: Financial Highlights

    Financial Highlights RUB million Q-o-Q Y-o-Y Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 (where applicable) +/( - )% +/( - )% Revenue 133,449 124,246 150,341 144,167 155,579 7.9 % 16.6 % Net retail sales 133,076 123,534 149,786 143,898 155,109 7.8 % 16.6 % COGS (101,876) (93,155) (113,559) (109,521) (11

  7. Slide 7: Revenue & EBITDA Dynamics

    Revenue & EBITDA Dynamics 447 1,176 627 40 97 155,579 19,743 133,449 Revenue Dynamics, Total: + 22.6% Total: + 1.6% Total: + 7.4% Total: + 31.7% RUB million Central: + 25.4% Central: + 3.4% Central: + 22.9% Central: + 31.7% NW: + 7.0% NW: + 8.5% NW: - 0.4% NW: - Other: + 28.3% Other: - 7.8% Other: -

  8. Slide 8: SG&A Breakdown

    SG&A Breakdown Q2 % of Q2 % of Q1 % of Q2 % of RUB mln 2013 Revenue 2014 Revenue 2014 Revenue 2014 Revenue 10,754 8.1% 12,001 7.7% Staff costs 12,104 8.4% 12,001 7.7% 5,555 4.2% 6,719 4.3% Lease expenses 6,598 4.6% 6,719 4.3% 3,412 2.6% 4,108 2.6% D&A 3,889 2.7% 4,108 2.6% 2,654 2.0% 3,069 2.0% Util

  9. Slide 9: Cash Flow Highlights

    Cash Flow Highlights RUB mln Q2 2013 Q2 2014 +/( - ) +/ ( - ), % Net cash generated from/ (used in) operating activities 1,548 12,776 11,228 725.4 % Net cash from operating activities before changes in working capital 9,383 12,201 2,818 30.0 % Change in Working Capital (4,114) 3,056 7,170 n/a Decrea

  10. Slide 10: Capital Expenditures Overview

    Capital Expenditures Overview Q2 2014 Capital Expenditures(1) Net Investment Cash Flows, RUB mln Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Reconstruction & Maintenance 38% New Store Openings 58% (4,289) (4,787) (4,911) (5,183) Logistics, IT & Other 4% (7,885) In Q2 2014, capex focused on organic expan

  11. Slide 11: Condensed Balance Sheet

    Condensed Balance Sheet RUB mln 31 December 2013 30 June 2014 +/( - ) +/( - )% Total current assets 76,488 75,741 (747.0) (1.0) % Cash & cash equivalents 7,611 6,121 (1,490.0) (19.6) % Inventories 37,465 37,009 (456.0) (1.2) % Total non-current assets 225,415 225,792 377.0 0.2 % Net PP&E 134,998 136

  12. Slide 12: Debt Structure

    Debt Structure Debt Profile Debt Portfolio Maturity 45.8% RUB mln 30 Jun 2013 31 Dec 2013 30 Jun 2014 Total Debt 122,886 110,523 110,361 Short-Term Debt 54,987 30,680 20,729 23.7% % of total debt 44.7% 27.8% 18.8% 13.6% 18.5% Long-Term Debt 67,899 79,843 89,632 16.9% % of total debt 55.3% 72.2% 81.2

  13. Slide 13: Geography of Operations

    Geography of Operations )XBRETAILGROUP © Tramiépouxa fonlep=xpecton Bx

  14. Slide 14: X5 Regional Presence

    X5 Regional Presence Number of stores by region as of June 30 2014 (2) Overview • Multi-format presence in 62 cities of European Russia, the Urals and Western Siberia with North region population > 200,000 (3) Pyaterochka: 69 • Total stores – 4,779, including: North-West region Petrozavodsk ― 4,128

  15. Slide 15: X5 Distribution Capabilities

    X5 Distribution Capabilities Distribution Center (DC) Locations Warehouse Space (1) Space, Region # of DCs th sq. m. Central 330.9 13 5 North-West 84.3 5 St. Petersburg Volgo-Vyatsky 29.1 1 Ural 46.8 5 MOSCOW Central-Chernozemny 30.0 2 Povolzhsky 62.5 3 13 South 15.0 1 1 Total 598.6 30 N. Novgorod 2

  16. Slide 16: 2014 Monthly Results

    2014 Monthly Results )XBRETAILGROUP © Tramiépoura foNlep=xpecton Bx 4

  17. Slide 17: Q2 2014 Expansion

    Q2 2014 Expansion Q2 2013 - 163 stores added(1) 90 Q2 2014 - 161 stores added(2) 69 54 Number of Stores 45 49 Opened, net 38 39 34 18 20 5 3 Jan Feb Mar Apr May Jun Q2 2013 – 60 thd sqm added 35 Q2 2014 – 64 thd sqm added 742 stores added 29 24 Selling Space 15 Net Additions, 11 11 14 8 11 thd sqm 5

  18. Slide 18: Q2 2014/2013 Net Retail Sales Growth

    Q2 2014/2013 Net Retail Sales Growth X5 Retail Group Pyaterochka 24.4% 22.4% 20.9% 19.0% 16.7% 17.5% 10.4% 16.6% 16.4% 16.7% 15.3% 13.7% 11.1% 13.0% 9.4% 10.7% 6.7% 8.6% 8.5% 10.4% 10.6% 8.5% 8.9% 9.2% 12.7 % 9.7 % 8.9 % 9.3 % 10.2 % 7.4 % 7.3 % 6.4 % 4.8 % 6.3 % 5.6 % 3.4 % Perekrestok Karusel (11.

  19. Slide 19: Q2 2014/2013 LFL Sales Dynamics

    Q2 2014/2013 LFL Sales Dynamics (1) X5 Retail Group Pyaterochka 12.0% 10.6% 9.1% 10.5% 8.1% 8.6% 8.2% 7.5% 7.6% 7.2% 6.5% 5.2% 0.5 % 0.6 % 10.0% 10.5% 13.5% 11.3% 7.6% 6.8% 6.2% 0.5 % 8.9% 8.7% 10.9% 7.6% 4.7% 0.3 % (0.2 %) (1.0 %) (2.5 %) (0.8 %) (0.4 %) 0.0 % (0.6 %) (1.3 %) Perekrestok Karusel 9.

  20. Slide 20: Q2 2014/2013 Express Stores Results

    Q2 2014/2013 Express Stores Results Net Retail Sales Growth, % LFL Sales Growth (1), % 34.1% 34.9% 0.3% 30.9% 4.8% 4.4% 4.8% 28.9% 26.7% 29.5% 3.3% 3.5% 7.3 % 9.7 % 7.3 % 5.6 % 21.5 % 4.3 % 3.3 % 27.4 % 13.3 % 21.4 % 33.2 % (1.0 %) 0.2 % (0.8 %) 21.5 % (2.3 %) (2.8 %) (8.6 %) 9.4 % 11.7 % 5.4 % 5.5

  21. Slide 21: July 2014 Trading Results

    July 2014 Trading Results Sales results Format Net retail sales growth, RUR, y-o-y LFL sales results, y-o-y (1) Net retail sales Customer visits Average ticket (1) Total LFL Traffic Basket Pyaterochka 30.9% 17.6% 11.5% 18.2% 5.4% 12.1% Perekrestok 9.6% (4.8%) 14.4% 6.1% 2.0% 4.1% Karusel 6.5% 0.8% 5

  22. Slide 22: IR Department Contact Details

    IR Department Contact Details Gregory Madick Andrey Napolnov, CFA Executive IR Director Senior IR manager Tel.: +7 (495) 502 97 83 Tel.: +7 (495) 662 8888 ext. 22-455 Mob.: +7 (910) 459 73 56 Mob.: +7 (926) 654 6262 E-mail: Gregory.Madick@X5.ru E-mail: Andrey.Napolnov@X5.ru Address: 4/28, Sr. Kalitn

X5 Retail Group — H1 2014 Earnings Presentation on 6ix