X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q3 & 9M 2009 Earnings Presentation
18 slides from X5 Corporate Center's earnings presentation, Nov 30, 2009
Slide 1: Q3 & 9 Months 2009 Financial Results
Q3 & 9 Months 2009 Financial Results Conference Call Presentation Moscow, 30 November 2009 p. 1
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: Agenda
Agenda I. Q3&9M Operational Performance II. Q3&9M Financial Performance and Liquidity Update III. 2010 Preliminary Outlook p. 3
Slide 4: Q3 & 9M 2009 Operational Performance
Q3 & 9M 2009 Operational Performance… … Was Solid Despite Tougher Macro-Economic Environment Net Sales, consolidation (1) Net Sales, consolidation (1) RUR mln USD mln +2% +38% 197,527 5,959 6,081 +24% -4% 143,282 65,980 2,193 2,103 53,105 Q3 2008 Q3 2009 9M 2008 9M 2009 Q3 2008 Q3 2009 9M 2008 9M 20
Slide 5: Economic Downturn: Pressured Average Basket, Healthy Traffic Growth
Economic Downturn… … Pressured Average Basket, while X5’s “Close-to-the-Customer” Strategy Supported Healthy Traffic Growth… X5’s 9M ’09 LFL Performance by Region Supermarkets’ 9M ‘09 LFL Performance Based on RUR- Traffic Basket Based on RUR- Traffic Basket denominated gross sales denominated gross
Slide 6: X5's Competitive Position Further Strengthened
X5’s Competitive Position… …Further Strengthened since the Beginning of the Crisis X5 LFL Performance vs Competition(1) LFL Sales Growth Magnit 23% 22% Seventh Continent 20% Dixy 18% 19% X5 14% 12% 13% 11% 13% 12% 8% 10% 7% 5% 5% 3% 3% 2% 1% -1% -2% FY 2008 Q1 2009 H1 2009 9M 2009 (1) While some of
Slide 7: 9M'09 Selling Space Growth
9M’09 Selling Space Growth… … while Focused & Selective… Exceeded Initial Plans Number Of Stores • 89 thousand sq. m. or 116 stores added on a 1,400 net basis: 55 1,200 46 1,000 15 210 – 104 soft discounters 207 800 12 179 600 – 3 supermarkets 156 952 400 674 848 200 451 – 9 hypermarkets 0 2006, EoP
Slide 8: X5's Regional Coverage
X5’s Regional Coverage Moscow & the Region Net Retail Sales 9M 2009: North-West region USD 3,120mln Breakdown: • As at 30 September, X5 was present in 42 Net Retail Sales 9M 2009: USD 1,721mln 11% Hypermarkets cities of European Russia and the Urals, Breakdown: 52% Discounters 27% Hypermarkets 37% S
Slide 9: Step-Up in Logistics Infrastructure
Step-Up in Logistics Infrastructure Fruit & Region # of DCs 000 sq. m. Dry Veg Fresh Frozen Central 8 153.9 v v v v DC locations as at North-West 5 55.2 v v v v 30 September 2009 Volgo-Vyatsky 1 17.5 v v v Urals 4 18.8 v v v Centralno -Chernozemny 2 11.8 v v v Sredne -Volzhsky 1 10.5 v v v South 1 1
Slide 10: Paterson Acquisition
Paterson Acquisition… …Further Reinforces X5 Positions in …And Adds Complementary Discounters Supermarkets… +8 Paterson stores + 8 Paterson St. Petersburg stores Moscow Moscow North-West X5: 195 stores X5: 20 stores Central X5: 81 stores X5: 288 stores Perekrestok: 120 stores +16 Paterson Moscow sto
Slide 11: Agenda
Agenda I. Q3&9M Operational Performance II. Q3&9M Financial Performance and Liquidity Update III. 2010 Preliminary Outlook p. 11
Slide 12: Q3 & 9M 2009 Financial Performance
Q3 & 9M 2009 Financial Performance(1) Net Sales EBITDA & EBITDA Margin USD mln EBITDA, USD mln - 7% EBITDA Margin, % 8.9% 8.4% 8.7% 6,516 7.7% -12% 6,081 - 4% 578 509 2,190 -15% 2,103 191 162 Q3 2008 Q3 2009 9M 2008 9M 2009 Q3 2008 Q3 2009 9M 2008 9M 2009 Gross Profit Net Profit Gross Profit, USD ml
Slide 13: Q3 & 9M 2009 P&L Highlights
Q3 & 9M 2009 P&L Highlights(1) % change % change % change % change USD mln Q3 2009 Q3 2008 9M 2009 9M 2008 USD RUR USD RUR Net Sales 2,103.1 2,190.3 (4%) 24% 6,081.2 6,516.1 (7%) 26% incl. Retail 2,094.2 2,177.0 (4%) 24% 6,053.2 6,478.7 (7%) 26% Gross Profit 501.8 558.8 (10%) 16% 1,480.8 1,673.7 (12
Slide 14: Key Q3 & 9M 2009 P&L Developments
Key Q3 & 9M 2009 P&L Developments Q3 2009 gross margin totaled 23.9% - a 160 bp decline year-on-year, resulting in 9M 2009 gross margin decline of 130 bp year-on-year to 24.4%. This decline is in line with the management's expectations and is attributable to our continuous investment in prices acr
Slide 15: Q3 & 9M 2009 Cash Flow Highlights
Q3 & 9M 2009 Cash Flow Highlights(1) Strong Cash Generation from Operations Offset by Working Capital Seasonality % change % change % change % change USD mln Q3 2009 Q3 2008 9M 2009 9M 2008 USD RUR USD RUR Net Cash Flows from Operating Activities 151.0 147.7 2% 37% 190.5 259.8 (27%) (1%) Net Cash fr
Slide 16: Liquidity Update
Liquidity Update Key Highlights Debt Maturity Profile as at 30.09.09 In Q1 2009 X5 completely eliminated its short-term USD USD mln exposure Denominated in RUR Denominated in USD In June 2009 placed 7-year RUR 8 bln corporate bonds with a 1,096.6 put option in 2 years. Proceeds were used to redu
Slide 17: Agenda
Agenda I. Q3&9M Operational Performance II. Q3&9M Financial Performance and Liquidity Update III. 2010 Preliminary Outlook p. 17
Slide 18: Preliminary Expansion Plan for 2010
Preliminary Expansion Plan for 2010 Step-Up in New Store Openings 2010 Preliminary Expansion & CapEx Outlook • Net new store addition: -Hypermarkets: 7-10 stores; -Supermarkets: ~15 stores; -Discounters: 200-250 stores. • Capital Expenditures of up to RUR 18 bln. p. 18