X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Investor Day (October 2013)
20 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 Sergey Piven X5 Chief Financial 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: Market Overview
Gy Tlamépouxa “z, Nlepexpectok BEz APYCEAD >>ru
Slide 4: Russian Macro Snapshot
Russian Macro Snapshot Real GDP growth, y-o-y Real monthly retail sales dynamics, y-o-y Food CPI vs. food PPI, y-o-y Comments • GDP growth decelerated in H1 2013: H2 slight recovery 16.0% Food CPI Food PPI expected however FY GDP has been revised down by World Bank from 2.3% to 1.8% 12.0% • Food ret
Slide 5: Russian Consumer Snapshot
Russian Consumer Snapshot Real wage, y-o-y Unemployment rate nominal real 8% 18% 7% 6.1% 6.1% 15% 5.3% 5.4% 6% 5.4% 12% 5% 9% 4% 3% 6% 2% 3% 1% 0% 0% Mar Mar Mar May May May Mar Mar Mar May May May Jan Nov Jan Nov Jan July July July July Nov Nov July July Jan Jan Jan Sep Sep Sep Sep 2011 2012 2013 2
Slide 6: Competition is Growing…
Competition is Growing… Top-10 Russian retailers, selling space (thd sqm) Top-10 Market Share & market evolution Space %, Retail market (gross sales) & Top 10 share RUR 9.9 trillion # Company name 2007 2012 added change RUR 7.1 trillion 1 Magnit 652 2,549 1,898 291% 2 X5 609 1,970 1,361 223% RUR 4.9
Slide 7: …but Opportunities Still Exist…
…but Opportunities Still Exist… Modern Retail Penetration (MRP) X5 market share breakdown by municipality Russian average X5 market share is below 15% in ~80% of municipalities Below average MRP & limited regulatory constraints in a majority of regions Source: Goldman Sachs Investment Research, Russ
Slide 8: …compared to Developed & Emerging Mkts
…compared to Developed & Emerging Mkts Largest Global and European Retail Markets Market Share of Top-5 Largest Players 1,563 USD billion 67% 63% 1,055 42% 39% 319 288 268 19% 18% 223 209 9% China USA Russia France UK Germany Italy Germany UK USA Poland Turkey Russia China MRP – Developed Markets, 2
Slide 9: Financial Strategy
Gy Tlamépouxa “z, Nlepexpectok BEz APYCEAD >>ru
Slide 10: Financial Management
Financial Management Liquidity Top-tier banks placements, limit cash concentrations Management Maintain available bank credit lines sufficient to cover short-term debt Centralized approach to funding and liquidity management Funding Establish diversified sources of funding by instrument and
Slide 11: Working Capital Analysis
Working Capital Analysis Working Capital(1) Working Capital Days 6M 2013 RUR mln (10.2) 10.8 days -5,024 (60.9) (18.6) 29.5 days (20.6) days (20.6) -16,848 -18,748 Inventories Trade and other Trade accounts Cash conversion H1 2011 H1 2012 H1 2013 accounts payable cycle receivable X5’s strategic init
Slide 12: Financial Policies & Guidance
Financial Policies & Guidance H1 2013 Metric Covenants 2012 2013 guidance Sales Growth, % na 8.1% 8.0% In line with 2012 EBITDA Margin, % na 7.1% 6.9% 7%+ CAPEX, RUR billion na 28 7 30 Selling Space Growth, % na 14% 12.5% 11% Net Debt / EBITDA, x < 4.00x 3.15x 3.23x < 3.50x Interest Coverage Ratio,
Slide 13: Q3 Operating Results Overview
Q3 Operating Results Overview 13
Slide 14: Q3 Trading Update Overview
Q3 Trading Update Overview Expansion dynamics (1) Net retail sales and LFL dynamics (1) 30-Sep- 9M Net 31-Dec- % vs 30-Sep- % vs Net retail sales, % , Q3 2013 Q3 2012 2013 added 2012 31-Dec-12 2012 30-Sep-12 RUR mln y-o-y Selling space , thd sqm Pyaterochka 81,708 76,193 7.2% Pyaterochka 1,302
Slide 15: 2013 YTD Expansion Update
2013 YTD Expansion Update Number of Stores Opened, net Selling Space Added, net thd sqm 95 90 81 78 35 28 56 51 24 46 45 45 40 38 41 39 15 16 16 16 34 33 13 13 14 15 22 11 14 18 8 11 2 4 3 Jan Feb Mar Apr May Jun Jul Aug Sep -5 2013 2012 Jan Feb Mar Apr May Jun Jul Aug Sep 2013 2012 9M 2013 = 385 st
Slide 16: 2013 Total Sales Growth
2013 Total Sales Growth Total X5 Sales Growth, % Pyaterochka Sales Growth, % 8.7% 10.2% 10.8% 11.0% 8.0% 8.2% 7.5% 8.7% 8.0% 7.2% 7.7% 7.4% 5.0% 5.9% 5.4% 7.3% 7.2% 7.3% 7.0% 6.2% 6.1% 6.7% 5.9% 5.8% 3.8% 1.3% 10.2% 5.6% 3.4% 10.0% 7.2% 5.7% 3.9% 6.0% 5.8% 7.1% 5.0% 6.9% 5.4% 7.1% 4.2 % 3.7% 4.6% 4.
Slide 17: 2013 LFL Sales Dynamics
2013 LFL Sales Dynamics Total LFL Sales Growth, % Pyaterochka LFL Sales Growth, % 0.2% 1.6% 0.0% 0.1% 0.3% 6.1% 5.1% 4.9% 5.5% 5.8% 5.6% 1.2% 4.4% 4.7% 5.0% 2.8% 3.6% 3.6% 3.9% 0.6% 3.9% 3.8% 0.4% 2.0% 2.2% (3.3 %) (4.2 %) (2.4 %) (1.6 %) (1.4 %) (0.7 %) (4.0 %) (4.2 %) (4.4 %) (5.4 %) (4.1 %) (6.6
Slide 18: 2013 Convenience Store RUR Results
2013 Convenience Store RUR Results Net Retail Sales Growth, % LFL Sales Growth2, % 17.9 % 99.5 % 15.0 % 15.6 % 15.6 % 83.1 % 83.7 % 82.9 % 14.8 % 14.1 % 76.5 % 77.2 % 71.9 % 13.0 % 12.2 % 11.9 % 61.1 % 59.2 % 10.4 % 43.8 % Jan Feb Mar Apr May Jun Jul Aug Sep 9M Jan Feb Mar Apr May Jun Jul Aug Sep 9M
Slide 19: 2013 Q4 Road Map
2013 Q4 Road Map Selling space additions, Net retail sales growth, EBITDA margin, Capital expenditures, thd sqm % y-o-y % mln RUR 9.3% ~9.3% ~105 2,186 6.8% 6.9% 7.0%+ 7.0%+ 7.0%+ 22,897 30,000 8.1% 7.8% ~8.0% 6.6% 33 60 19 1,970 7,103 2012 Q1 Q2 Q3 Q4E 2013E Q1 Q2 Q3 Q4E 2013E Q1 Q2 Q3E Q4E 2013E H
Slide 20: Thank you for your attention!
Thank you for your attention! 20