X5 Corporate Center · RUS:X5
X5 Corporate Center — X5 Retail Group — Q2 2012 Earnings Presentation
20 slides from X5 Corporate Center's earnings presentation, Aug 21, 2012
Slide 1: Second Quarter 2012 Financial Results Conference Call
1 Second Quarter 2012 Financial Results Conference Call Kieran Balfe, X5 Chief Financial Officer Moscow, Russian Federation 21 August 2012
Slide 2: Disclaimer
Disclaimer 2 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 o
Slide 3: Summary Highlights – Q2 & H1 2012
Summary Highlights – Q2 & H1 2012 3 Our Business • Russia's largest food retailer in terms of sales – 5.7% of total food retail market(1) • Multi-format brand retail operator: Pyaterochka (Soft Discounter), Perekrestok (Supermarket), Karusel (Hypermarket) plus assorted brand name convenience stores
Slide 4: Key Macroeconomic Indicators
Key Macroeconomic Indicators 4 JAN FEB MAR APR MAY JUN % change, y-o-y 2012 2012 2012 2012 2012 2012 Retail turnover 7.4% 7.9% 7.4% 6.5% 6.8% 6.9% Food retail turnover, incl. drinks and tobacco 5.2% 5.2% 5.3% 4.1% 4.8% 4.0% Inflation (CPI) 4.2% 3.7% 3.7% 3.6% 3.6% 4.3% Inflation (CPI), food products
Slide 5: Financial Overview – Q2 2012 vs. Q2 2011
5 Financial Overview – Q2 2012 vs. Q2 2011
Slide 6: Financial Highlights
Financial Highlights 6 Q-o-Q Y-o-Y USD mln Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 +/( - )% +/( - )% Retail sales 4,006.0 3,610.7 3,954.6 3,862.0 3,981.8 3.1% (0.6)% Total revenues 4,021.4 3,623.0 3,965.3 3,870.7 3,987.9 3.0% (0.8)% COGS 3,075.2 2,784.7 2,984.4 2,923.5 3,077.6 5.3% 0.1% Gross profit
Slide 7: Sales & EBITDA Breakdown
Sales & EBITDA Breakdown 7 Change in net retail sales by format, USD mln Net retail sales grew + 11,113.4 + 1,378.7 + 368.1 + 40.9 by 10.0% in RUB - 1,652.4 terms primarily due to soft discounters and 123,446.5 supermarkets’ sales 112,197.9 growth offset by a decrease in hypermarkets sales Net retai
Slide 8: SG&A Breakdown
SG&A Breakdown 8 % of Net % of Net % of Net % of Net Q2 2011 Q2 2012 USD mln Q1 2012 Q2 2012 Sales Sales Sales Sales (320.5) 8.0% (324.5) 8.1% Staff Costs (342.4) 8.8% (324.5) 8.1% (146.8) 3.7% (144.6) 3.6% Lease Expenses (151.3) 3.9% (144.6) 3.6% (56.2) 1.4% (61.9) 1.6% Other Store Costs (61.3) 1.6
Slide 9: Cash Flow Highlights
Cash Flow Highlights 9 USD mln Q2 2012 Q2 2011 +/( - ) +/( - )% Net Cash Flows (Used in)/Generated from Operating Activities 68.8 (65.6) 134.4 n/a Net Cash from Operating Activities before Changes in Working Capital 275.0 293.3 (18.3) (6.2) % Change in Working Capital (85.3) (241.7) 156.4 (64.7) % N
Slide 10: Capital Expenditures Overview
Capital Expenditures Overview 10 Q2 2012 Capital Expenditures Breakdown Net Cash Flows From Investing Activities, USD mln IT &Other 17% 397.6 Reconstruction & Maintenance 226.6 14% 194.5 171.6 180.4 Logistics 98.2 3% New Store Openings 67% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 In Q2 2012,
Slide 11: Condensed Balance Sheet
Condensed Balance Sheet 11 USD mln 30 June 2012 31 December 2011 +/( - ) +/( - )% Total current assets 1,803.0 2,051.2 (248.2) (12.1) % incl. Cash & cash equivalents 166.0 385.0 (219.0) (56.9) % incl. Inventories 837.9 895.0 (57.1) (6.4) % Total non-current assets 6,753.0 6,759.0 (6.0) (0.1) % incl.
Slide 12: Debt Structure
Debt Structure 12 Debt profile Debt portfolio maturity, USD mln (2) % in % in USD mln 31-Mar-12 30-Jun-12 1,048 1,057 total total 955 Total Debt 3,997.1 3,691.4 280 Short-Term Debt 1,091.9 27.3% 1,170.1 31.7% 647 935 Long-Term Debt 2,905.2 72.7% 2,521.3 68.3% 955 768 Net Debt / (Net Cash) 3,808.3 3,
Slide 13: Appendix
)XS5RETAILGROUP | Tlamépouxa 4, NepeKkpectoK
Slide 14: 2012 YTD Expansion Update
2012 YTD Expansion Update Number of Stores Opened, net Selling Space Added, net sq.m. + 92 stores 334 + 39,185 sq.m. 96,432 242 57,247 7M 2011 7M 2012 7M 2011 7M 2012 Acceleration of expansion y-o-y in 7M 2012: ~40% more stores opened adding ~70% more selling space 14
Slide 15: 2012 YTD Net RUR Retail Sales Dynamics
2012 YTD Net RUR Retail Sales Dynamics Total Net Retail Sales Growth, % y-o-y Soft Discounter Net Retail Sales Growth, % y-o-y1 + 22 % + 15 % + 18 % + 17 % + 11 % + 10 % + 10 % +5 % Apr-12 May-12 Jun-12 Jul-12 Apr-12 May-12 Jun-12 Jul-12 Supermarkets Net Retail Sales Growth, % y-o-y1 Hypermarkets Ne
Slide 16: 2012 YTD RUR LFL Sales Dynamics
2012 YTD RUR LFL Sales Dynamics Total LFL Sales Growth, % Soft Discounters LFL Sales Growth, % +3 % +7 % +3 % +3 % (1 %) (2 %) (5 %) (3 %) Apr-12 May-12 Jun-12 Jul-12 Apr-12 May-12 Jun-12 Jul-12 Supermarkets LFL Sales Growth, % Hypermarkets LFL Sales Growth, % +2 % (2 %) (5 %) (10 %) (6 %) (13 %) Ap
Slide 17: 2012 YTD RUR Sales: Traffic and Basket
2012 YTD RUR Sales: Traffic and Basket Total X5 Sales Growth, % Soft Discounters Sales Growth, %1 Total basket growth, % Total traffic growth, % Total basket growth, % Total traffic growth, % 20% 11% 14% 16% 17% 14% 10% 9% 3% 6% 0% 0% -4% -1% -5% -3% Apr-12 May-12 Jun-12 Jul-12 Apr-12 May-12 Jun-12
Slide 18: 2012 YTD LFL RUR Sales: Traffic & Basket
2012 YTD LFL RUR Sales: Traffic & Basket Total X5 LFL Sales Growth, % Soft Discounters LFL Sales Growth, % LFL basket growth, % LFL traffic growth, % LFL basket growth, % LFL traffic growth, % 0% 1% 3% 1% 5% -1% -1% 1% 0% -3% 3.9% 2% -4% 0% -1% -2% Apr-12 May-12 Jun-12 Jul-12 Apr-12 May-12 Jun-12 Ju
Slide 19: 2012 YTD Convenience Store RUR Results
2012 YTD Convenience Store RUR Results Net Retail Sales Growth, % LFL Sales Growth, % 69 % 61 % +9 % +9 % 57 % +7 % 44 % +4 % Apr-12 May-12 Jun-12 Jul-12 Apr-12 May-12 Jun-12 Jul-12 Net Retail Sales, mln USD Comments • Rapidly developing format operating under Perekrestok 405 Express and Kopeyka bra
Slide 20: Contact Information
Contact Information IR Department Contact Details Gregory Madick Anastasiya Kvon Andrey Napolnov Executive IR Director IR Director Senior IR manager Tel.: +7 (495) 502 97 83 Tel.: +7 (495) 792 3511 Tel.: +7 (495) 662 8888 ext. 22-455 Mob.: +7 (910) 459 73 56 Mob.: +7 (926) 358 8545 Mob.: +7 (926) 65