Q4 2020 Financial Results
T
DISCLAIMER
his presentation does not constitute or formpart of and should not be construed as anadvertisement of securities, an offer orinvitation to sell or issue or the solicitation ofan offer to buy or acquire or subscribe forsecurities of X5 Retail Group N.V. or any of itssubsidiaries or any depositary receiptsrepresenting such securities in anyjurisdiction or an invitation or inducement toengage in investment activity in relationthereto. In particular, this presentation doesnot constitute an advertisement or an offerof securities in the Russian Federation.
No part of this presentation, nor the fact of itsdistribution, should form the basis of, or berelied on in connection with, any contract orcommitment or investment decision whatsoever.
No representation, warranty or undertaking, express or implied, is given by or on behalf ofX5 Retail Group N.V. or any of its directors,officers, employees, shareholders, affiliates,advisers, representatives or any other personas to, and no reliance should be placed on, thefairness, accuracy, completeness orcorrectness of the information or the opinionscontained herein or any other materialdiscussed at the presentation. Neither X5Retail Group N.V. nor any of its directors,officers, employees, shareholders, affiliates,advisors, representatives or any other personshall have any liability whatsoever (innegligence or otherwise) for any losshowsoever arising from any use of thispresentation or any other material discussed atthe presentation or their contents or otherwisearising in connection with the presentation.
This presentation includes statements that are, or may be deemed to be, “forward- looking statements”, with respect to the financial condition, results, operations and businesses of X5 Retail Group N.V. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events.
Forward-looking statements often use words such as” anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal” believe”, or other words of similar meaning.By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V’s control. As a result, X5 Retail Group N.V’s actual future results may differ materially from the plans, goals and expectations set out in these forward- looking statements. X5 Retail Group N.V. assumes no responsibility to update any of the forward looking statements contained in this presentation.
For Russian law purposes, the securities mentioned in this presentation (the"Securities") represent foreign securities.No prospectus for the issue of the Securities hasbeen or is intended to be registered with theCentral Bank of the Russian Federation. Theinformation provided in this presentation is notintended to advertise or facilitate the offer ofthe Securities in the territory of the RussianFederation. This presentation does notrepresent an offer to acquire the Securities oran invitation to make offers to acquire theSecurities.
The information and opinions contained in thisdocument are provided as at the date of thispresentation and are subject to changewithout notice. Some of the informationis still in draft form and neither X5 RetailGroup N.V. nor any other party is under anyduty to update or inform recipients of thispresentation of any changes to suchinformation or opinions. In particular, it should be noted that some of the financial information relating to X5 Retail GroupN.V. and its subsidiaries contained in this document has not been audited and in some cases is based on management information and estimates.
Neither X5 Retail Group N.V. nor any of its agents, employees or advisors intend orhave any duty or obligation to supplement,amend, update or revise any of the statements contained in this presentation.
2
I. HIGHLIGHTS
STRATEGIC HIGHLIGHTS
Market leader in Russian food retail, 12.8% market share in 12M 2020
Strategy is aimed at maintaining leadership
Constant adaptation of value proposition to Russian consumers’ changing needs and current macro environment, including expansion of fresh assortment, widening local assortment, development of loyalty programmes
Dividend policy since September 2017
2020 dividend RUB 50.0 bln / RUB 184.13 per GDR, which represents 127.6% of net profit IAS 17
Development and implementation of the Big Data strategy based on loyalty cards information
Focus on innovation, digitalization and automation of business processes
X5 is a multi-format retailer with focus on two largest segments of the Russian food retail - proximity and supermarkets
Balanced approach to expansion
Fast growth of online supermarket; express delivery in pilot stage
Significant investments in logistics and transport: in the last 3 years X5 opened 11 DCs and currently operates 45 DCs
adding new links in the value chain and operating a fleet of 4,055 owned trucks as of 31 December 2020
4
KEY RESULTS Q4 2020
8.3% YoY selling space growth in 2020 (+1,410 new stores added, net)
13% of X5 stores operate in new concept as of Q4 2020 (new CVP launched in 2019)
5.1% LFL sales growth in Q4 2020
12.7% revenue growth atin Q4 2020 (12.6% net retail sales growth in Q4 2020)
+17% YoY loyal customers;47.3 mln active loyalty card users as of 31 Dec 2020, across formats
6.2% EBITDA margin in Q4 2020
96% of net store additions in Q4 2020 was organic growth
96% of net store additions in lease
1.67x Net debt / EBITDA as of 31 December 2020
Source: X5 data 5
52.2 thousand daily online orders in Q4 2020, up 9.5 times YoY
+412% digital sales in Q4 2020, contributed 1.6% to net sales and 1.4ppt to sales growth rate
9,187
12,12114,431
16,29717,707
2016 2017 2018 2019 2020
4,302
5,4806,464
7,2397,840
2016 2017 2018 2019 2020
1,0261,287
1,5251,728
1,973
2016 2017 2018 2019 2020
CAGR 2016-2020: 17.8%CAGR 2018-2020: 13.8%
Net retail sales dynamics, RUB bn LFL sales, % y-o-y growth
Selling space, th. sq. m Number of stores, end of period
CAGR 2016-2020: 16.2%CAGR 2018-2020: 10.1%
Source: X5 data
14.2%
8.3%8.7%
OPERATIONAL HIGHLIGHTS (ANNUAL)
CAGR 2016-2020: 17.8%CAGR 2018-2020: 10.8%
7.7%
5.4%
1.5%
4.0%5.5%
2016 2017 2018 2019 2020
6
1,0341,295
1,5331,734
1,978
2016 2017 2018 2019 2020
2234
2937
47
2.2% 2.6%1.9% 2.1% 2.4%
2016 2017 2018 2019 2020
Net profit, RUB bn Net profit margin, %
8099 110
127146
7.7% 7.7% 7.2% 7.3% 7.4%
2016 2017 2018 2019 2020
Adj. EBITDA, RUB bn Adj. EBITDA margin, %
250309
370426
487
24.2% 23.9% 24.1% 24.6% 24.6%
2016 2017 2018 2019 2020
Gross profit, RUB bn Gross margin, %
CAGR 2016-2020: 17.6%CAGR 2018-2020: 15.2%
CAGR 2016-2020: 18.2%CAGR 2018-2020: 14.8%
Revenue dynamics, RUB bn Gross profit & gross margin
Adj. EBITDA & adj. EBITDA margin[1] Adj. Net profit and adj. net profit margin[2]
CAGR 2016-2020: 16.4%CAGR 2018-2020: 15.3%
CAGR 2016-2020: 20.4%CAGR 2018-2020: 27.8%
14.1%
14.6%
14.4%
FINANCIAL HIGHLIGHTS (ANNUAL)
Source: X5 data[1] − Adjusted for LTI, exit share-based payments and other one-off remuneration payments[2] – Adjusted net profit is net profit before one-off impacts from Karusel transformation and tax accrual due to X5 reorganisation in previous periods.
7
Share of stores in ‘clinic’
Cash return on new store opened
Source: X5 data
QUALITY OF NEW OPENINGS
8
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
>30%+2.5 p.p. y-o-y
Note: Opened 12-36 months ago
16,29716,658
17,02517,352
17,707
6.4% 6.3%5.3%
4.1% 3.6%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Number of stores, eop Share of stores in 'EBITDA clinic'
SALES DENSITY STABILISATIONIMPACT OF REGIONAL MIX
9
253
256 257
260262
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
333
342
347
353355
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
202
204
207
211
214
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Overall
Moscow &Moscow region
St Petersburg & Leningrad region
Rest of Russia
Source: X5 data
Sales densities are consistently improving during 2020.
370
375 374376
374
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Unit: ‘000 RUB/m2 (annualised)
II. MARKET OVERVIEW
MACRO ENVIRONMENT (1/2)
11
Source: Rosstat
12M 2020 food retail trade value was +1.8% (-2.6% in real terms) due to COVID-19 pandemic. Food inflation averaged 3.9% in 2020
The main factor of the decline in real foodretail trade in 2020 was the self-isolationregime amid the spread of COVID-19, as wellas the seasonal factor of vacations
The decrease in real disposable income in2020 was due to the transition to part-timeemployment and the placement ofemployees on unpaid leave
(12)
(10)
(8)
(6)
(4)
(2)
0
2
4
6
8
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2018 2019 2020
Real food retail trade CPI food
Y-o-y growth rates, %
(13.0)
(11.0)
(9.0)
(7.0)
(5.0)
(3.0)
(1.0)
1.0
3.0
5.0
7.0
9.0
11.0
(0.7)
(0.5)
(0.3)
(0.1)
0.1
0.3
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2018 2019 2020
Unemployment level, y-o-y p.p. change
Real disposable income (right scale)
Real wages (right scale)
Y-o-y growth rates, %
12
Source: Rosstat, FOM
Key macro risk is weak consumer demand
The main factor behind the decline inindustrial production was the reduction indomestic and foreign demand, which beganin late March, as well as restrictions on thework of enterprises in various fields
Consumer sentiment deteriorated in Q22020 driven by the situation with COVID-19and slightly improved in H2 due to theeasing of pandemic related restrictions
(35)
(30)
(25)
(20)
(15)
(10)
(5)
0
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
2015 2016 2017 2018 2019 2020
Consumer confidence index (Rosstat, %)
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
(10)
(8)
(6)
(4)
(2)
0
2
4
6
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
2018 2019 2020
Industrial production (y-o-y, %)
IHS Markit Manufacturing PMI (SA, right scale)
MACRO ENVIRONMENT (2/2)
X5 VS. RUSSIAN FOOD RETAIL IN TOP-LINE GROWTH
Source: Infoline, X5 analysis
Starting from 2015, X5 has constantly outperformed the market and competition
13
33%
8%9%
19%
28% 28%
25%
18%
13%
14%
30%
21%20%
23%
21%
18%
9%10% 10%
14%14%
9%
12%11%
8%
2%
5%4%
7%
2%4%
8% 7%
10%
19%
6%
3%2%
5%
4%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
X5 y-o-y revenue growth Top-10 Market Food CPI
RUSSIAN RETAIL MARKET SNAPSHOT
Source: InfoLine
Top 10 Russian food retailers
X5’s market share in offline food retail increased from 11.5% in 2019 to 12.8% in 2020
14
# Company name% market share
2020% market share
2019
Х5 12.8% 11.5%
Magnit 8.8% 7.6%
DKBR 6.6% 5.7%
Lenta 2.7% 2.5%
Auchan 1.5% 1.5%
Svetofor 1.3% 0.7%
Metro 1.2% 1.1%
O`KEY 1.1% 1.0%
Monetka 0.8% 0.7%
Vkusvill 0.8% 0.6%
Total Top 10 37.4% 33.3%
10
6
5
4
3
2
1
8
7
9
III. OPERATIONAL RESULTSQ4 2020
X5 OPERATIONAL SUMMARY (QUARTERLY)
Source: X5 data
Net retail sales Traffic, mln customers Net selling space (eop)
LFL sales, y-o-y LFL traffic, y-o-y LFL basket, y-o-y
467 468 493 486526
11.0%
15.9%13.2%
15.4%12.7%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Net retail sales, RUB bn Growth y-o-y, %
1,359 1,3271,205
1,401 1,360
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
7,239 7,327 7,510 7,680 7,840
12.0% 11.0% 10.7% 9.6% 8.3%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Selling space, th. sq. m Growth y-o-y, %
2.3%
5.7%
4.3%
6.9%
5.1%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
1.8%3.7%
(17.2)%
(1.8)%
(7.2)%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
0.5%1.9%
26.1%
8.8%
13.3%3.5%
2.0%
3.6%
4.3%
5.8%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
LFL basket, y-o-y Food CPI, %
16
364,210
78,793
24,296
421,558
91,930
12,818
Q4 2020 RESULTS: X5 NET RETAIL SALES SUMMARY
Net retail sales breakdown by retail format, RUB mln
KEY DRIVERS Pyaterochka, which continues to meet customers’ needs in a challenging macro
environment, was the key driver for X5’s growth thanks to:
– Value proposition that is one of the best-adapted to Russian consumers’ needs
– Smart expansion programme
Net retail sales growth of 12.6% was driven by a 5.1% increase in like-for-like sales and a 7.5% sales growth contribution from a 8.3% rise in selling space
Source: X5 data
Q4 2019
467,299
Q4 2020
526,358+12.6%
Supermarkets
Hypermarkets
Proximity stores
Supermarkets
Hypermarkets
17
Proximity stores
Q4 2020 RESULTS: EXPANSION SUMMARY
16,29717,707
Q4 2019 Q4 2020
Total stores base
Total store base increased to 17,707 stores as of 31 December 2020
Pyaterochka was the main driver for the store base increase with a 127 th. sq. m selling space addition in Q4 2020
324
Other – 242
Central – 60
North-West – 22
Central – 12
Net selling space, th. sq. m Net selling space added in Q4 2020, th. sq. m
Stores added (net) in Q4 2020 by formats and by regions
(1)
Source: X5 data
28
Other – 13
7,2397,840
Q4 2019 Q4 2020
160
Supermarkets HypermarketsProximity stores
Supermarkets
8.3%
18
Hypermarkets
Proximity stores
North-West – 3
Central – 0
North-West – 0
Other – (1)
127
36
(3)
X5 REGIONAL PRESENSE
X5 today
Source: X5 data
Multi-format presence in sevenFederal Districts
Total stores – 17,707, including:
― 16,709 Pyaterochka stores
― 933 Perekrestok supermarkets
― 56 Karusel hypermarkets
Format UnitNorth
CaucasusSouthern Central Volga
NorthWestern
Ural Siberian Total
Number ofstores, #
323 1,660 6,147 4,462 1,772 1,459 886 16,709
10 56 519 144 129 75 - 933
1 2 30 14 8 1 - 56
Net retail sales (FY 2020), %
1.1% 6.5% 49.4% 18.8% 14.3% 7.0% 2.9% 100%
19
X5 DISTRIBUTION CAPABILITIES
5
18
6
9 6
1
Warehouse space as of 31 December 2020
Centralisation levels
Source: X5 data
X5 continued the implementation of the new Logistics and Transportation Strategy covering the period until 2025.
As of 31 December 2020 the Company owned 4,055 trucks.
Highlights for Q4 2020
78%85% 88%
93% 95% 95% 95%
2014 2015 2016 2017 2018 2019 2020
Federal districtSpace,
th. sq. m# of DCs
Central 658 18
North-Western 150 6
Volga 230 9
Ural 148 6
Southern 141 5
Siberian 37 1
Total 1,364 45
20
IV. FINANCIAL RESULTSQ4 2020
X5 QUARTERLY FINANCIAL HIGHLIGHTS (QUARTERLY)
Revenue Gross profit & gross margin SG&A (excl. D&A&I<I)[1]
Adj. EBITDA & EBITDA margin[2] Net profit & net profit marginCapital expenditures, RUB bn
Source: X5 data[1] – Adjusted for impact from Karusel transformation [2] − Adjusted for LTI, exit payments and share-based payments, other one-off remuneration payments and impact from Karusel transformation
469.2 469.0 493.6 486.6528.8
10.9%15.6%
12.9%15.3%
12.7%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Revenue, RUB bn Growth y-o-y, %
112.2 114.2124.7 122.2 126.1 128.1
23.9%24.3%
25.3% 25.1%
23.8%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2020
Gross profit, RUB bn Margin, %
25.9
17.4
21.6 22.8
28.0
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
22
31.4 33.0
41.9 39.232.0
58.06.7% 7.0%
8.5%8.1%
6.0%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2020
Adj. EBITDA, RUB bn Margin, %
11.0%
83.9 84.7 86.4 87.3
98.5
75.4
17.9% 18.1% 17.5% 17.9% 18.6%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2020
SG&A (excl. D&A&I<I), RUB bn % of revenue
14.3%
0.9
8.2
16.3
11.9
2.81.7
0.2%
1.7%
3.3%
2.5%
0.5%
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2020
Net profit, RUB bn Margin, %
0.3%
IAS 17 IFRS 16 IAS 17 IFRS 16
IAS 17 IFRS 16 IAS 17 IFRS 16
24.2%
33%
9%
12%8%
15%
24% New store openings
Refurbishments
Logistics
IT
Maintenance
Other
X5 CAPITAL EXPENDITURES
Capex breakdown, Q4 2020 Capex dynamics by quarter, RUB mln
Source: X5 data (prepared under IAS 17)
In Q4 2020 the capex programme focused mainly on organic expansion, maintenance and logistics
25,889
17,41621,641 22,839
28,034
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
23
RUB 28 bn8.3% y-o-y
Expected change in Capex structure
90% 83%
8% 13%
3% 4%
2020 2022E
New businesses
Efficiency, IT, digital
transformation, etc.
Current business
X5 DEBT STRUCTURE
100% 29%
32%
31%
8%
31 Dec 2020 2021 2022 2023 2024
Debt profile
Covenants & liquidity update
Covenant metrics &
liquidity sources31 Dec 2020 31 Dec 2019
Net Debt / EBITDA (IAS 17) 1.67x 1.71x
Cash & cash equiv., RUB mln 20,008 18,602
Available credit limits, RUB
mln457,086 415,592
X5’s debt portfolio is 100% RUB-denominated
The majority of the X5’s loans and all bonds have fixed interest rates
X5’s available credit limits amounted to RUB 457.1 bln
Record-low cost of debt
Double achievement of the lowest new bonds issue coupon rate in the history of the entire Russian retail sector
Highlights
Debt portfolio maturity
Source: X5 data
RUB mln 31 Dec 2020 31 Dec 2019
Total Debt 261,947 227,933
Short-Term Debt 77,026 74,755
% of total debt 29.4% 32.8%
Long-Term Debt 184,921 153,718
% of total debt 70.6% 67.2%
Net Debt 241,939 209,331
24
Q4 2020: ADJUSTED SG&A[1] EXPENSES ANALYSIS
8.3% 8.0% 8.0%
4.8% 4.7%
0.6%
2.1%2.1%
2.1%
1.1% 1.2%
1.1%
1.1% 1.3%
1.1%
0.9% 1.1%
1.2%
17.9% 18.6%
14.3%
Q4 2019 Q4 2020 Q4 2020
Third party services
Other expenses
Other store costs
Utilities
Lease expenses
Staff costs
Q4 2020 analysis as percentage of revenue
Source: X5 data[1] − Adjusted for D&A&I, LTI, exit share-based payments and impact from Karusel transformation
25
IAS 17 IFRS 16
(28) b.p.
(4) b.p.
(2) b.p.
11 b.p.
14 b.p.27 b.p.
(75) b.p.
Source: X5 data
FINANCIAL STATEMENTS (1/3)PROFIT AND LOSS STATEMENT
IAS 17 IFRS 16
RUB mln Q4 2020 Q4 2019 +/( - ) +/ ( - ), % Q4 2020
Revenue 528,760 469,217 59,543 12.7% 528,760
Net retail sales 526,358 467,299 59,059 12.6% 526,358
COGS (402,690) (356,976) (45,714) 12.8% (400,666)
Gross profit 126,070 112,241 13,829 12.3% 128,094
Gross profit margin 23.8% 23.9% (8) b.p. 24.2%
SG&A (117,482) (104,713) (12,769) 12.2% (112,621)
EBITDA 32,623 28,789 3,834 13.3% 58,654
EBITDA margin 6.2% 6.1% 3 b.p. 11.1%
Operating profit 13,004 10,609 2,395 22.6% 20,818
Operating margin 2.5% 2.3% 20 b.p. 3.9%
Net profit 2,781 865 1,916 221.5% 1,730
Net profit margin 0.5% 0.2% 34 b.p. 0.3%
26
Source: X5 data
FINANCIAL STATEMENTS (2/3)BALANCE SHEET (IFRS 16)
RUB mln 31 Dec 2020 31 Dec 2019
Total current assets 206,284 179,754
Cash & cash equivalents 20,008 18,602
Inventories 144,393 127,462
Total non-current assets 966,945 894,576
Right-of-use assets 480,511 428,166
Net PP&E 322,707 315,257
Goodwill 104,890 101,927
Total assets 1,173,229 1,074,330
Total current liabilities 408,684 368,573
ST debt 77,026 74,755
ST finance lease payables 68,442 57,622
Trade accounts payable 170,909 160,434
Total non-current liabilities 669,703 589,201
LT debt 184,921 153,178
LT finance lease payable 480,059 427,173
Total liabilities 1,078,387 957,774
Total equity 94,842 116,556
Total liabilities & equity 1,173,229 1,074,330
27
FINANCIAL STATEMENTS (3/3)CASH FLOW STATEMENT (IAS 17 AND IFRS 16)
IAS 17 IFRS 16
RUB mln Q4 2020 Q4 2019 +/( - ) +/ ( - ), % Q4 2020
Net cash generated from
operating activities20,353 28,935 (8,582) (29.7)% 36,057
Net cash from operating activities before
changes in working capital32,858 29,740 3,118 10.5% 57,957
Change in Working Capital, incl.: 4,621 6,777 (2,156) (31.8)% 5,163
Decrease/(increase) in trade and
other AR(6,578) (5,702) (876) 15.4% (6,587)
Decrease/(increase) in inventories (15,710) (20,192) 4,482 (22.2)% (15,710)
(Increase)/decrease in trade payable 21,679 29,247 (7,568) (25.9)% 21,679
(Decrease)/increase in other AP 5,230 3,424 1,806 52.7% 5,781
Net interest and income tax paid (17,126) (7,582) (9,544) 125.9% (27,063)
Net cash used in investing
activities(25,611) (22,588) (3,023) 13.4% (25,612)
Net cash generated
from/(used in) financing activities13,589 1,313 12,276 - (2,114)
Effect of exchange rate changes on cash &
cash equiv.5 75 (70) (93.3)% 5
Net increase/(decrease) in cash &
cash equiv.8,336 7,735 601 7.8% 8,336
28
Source: X5 data
APPENDIX
PERFORMANCE SUMMARY OF KEY FORMATS
PYATEROCHKA SUMMARY (1/3)RUSSIA’S #1 PROXIMITY NETWORK BY REVENUE
The proximity store for your daily shopping needs
Q4 2020 net retail sales –RUB 421.6 bn, 15.7% increase y-o-y
Pyaterochka as % of X5's Q4 2020 sales: ~80%
Average Pyaterochka check (offine):RUB 407 (Q4 2020)13.2% increase y-o-y
6,542 th. sq. m of selling space as of 31 December 2020, +9.5% y-o-y
1,190 mln of customer visits in Q4 2020, +2.0% y-o-y
Avg. net selling space: 392 sq. m. Pyaterochka sub-formats
– 250-330 sq. m.
– 330-430 sq. m.
– 430-620 sq. m.
– 620-and more
16,709 stores as of 31 December 2020, 8.8% increase y-o-y
Q4 2020 LFL Results Sales: 6.9% Traffic: (5.9)% - COVID Basket: 13.6% - COVID
Average number of SKUs:4,500
Capex per leased Pyaterochka:RUB 12-15 mln
30
PYATEROCHKA PROXIMITY STORES SUMMARY (2/3)
18.4%18.1%16.3%
15.6%13.4%
11.5%
17.4% 16.1%18.4%
15.7%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q4 2020 LFL sales:6.9% increase y-o-y
Q4 2020 net retail sales:15.7% increase y-o-y
Q4 2020 selling space:9.5% increase y-o-y
Q4 2020 sales densities: 4.7% increase y-o-y
Q4 2020 LFL traffic: 5.9% decrease y-o-y
Q4 2020 LFL basket:13.6% increase y-o-y
Net sales growth (% y-o-y)
Total LFL sales growth (% y-o-y)
Net selling space growth (% y-o-y)
Total LFL traffic growth (% y-o-y) Total LFL basket growth (% y-o-y)
Net sales densities (th. RUB/sq. m[1])
Source: X5 data[1] − Total net sales from trailing four quarters divided by average selling space of trailing four quarters
21.5%19.5%
17.1%15.8%15.0%12.9%12.9%
12.2%10.8%9.5%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
249247 246 246 245 243 246 248 252 255
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0.1%
3.3%
4.7%4.8%
3.4%
2.0%
6.1% 6.0%
8.5%
6.9%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0.5% 1.7% 2.2%3.2%
0.3%1.9%
4.2%
(15.0)%
(0.4)%
(5.9)%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(0.4)%
1.6%2.5%
1.6%3.1%
0.1%
1.8%
8.9%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
LFL basket, y-o-y Food CPI, %
31
2018 2019 2020
13.6%
2018 2019 2020 2018 2019 2020
2018 2019 2020 2018 2019 2020 2018 2019 2020
24.8%
Increase number of loyal customers and maximise share of their wallet:
− New CVP and further adaptation of assortment
− Leadership in NPS and service level
− Better personnel turnover andengagement
− Focus on operational efficiency, incl. shrinkage
− Roll-out of personalised promo
Improve efficiency and reduce costs:
− Further improvements in purchasing terms and opex per store/in logistics
− Lean and agile approach
− Higher share of direct import
− Higher share of private label to >20% during the next 3-5 years
− Improve efficiency of regional model
PYATEROCHKA PROXIMITY STORES SUMMARY (3/3)FORMAT STRATEGY HIGHLIGHTS
32
PEREKRESTOK SUPERMARKETS SUMMARY (1/4)RUSSIA’S #1 SUPERMARKET
Q4 2020 net retail sales ofRUB 91.9 bn, 16.7% increase y-o-y
Perekrestok of X5's Q4 2020 sales: ~17%
1,014 th. sq. m. of selling space as of 31 December 2020, 15.4% increase y-o-y
154 mln customers in Q4 2020,-4.8% y-o-y
Q4 2020 LFL Results Sales: (0.2%) Traffic: (15.2)% - COVID Basket: 17.8% - COVID
Avg. net selling space: 1,087 sq. m.
933 stores as of 31 December 2020, 10.0% increase y-o-y
The main supermarket in every neighbourhood
Average Perekrestok check (offline):RUB 650 (Q4 2020),15.9% increase y-o-y
Average number of SKUs:8,000 – 15,000
Capex per leased Perekrestok:RUB 50-60 mln
33
NPS 27 points in Q4 2020,6 p.p. increase y-o-y
PEREKRESTOK SUPERMARKETS SUMMARY (2/4)
Q4 2020 LFL sales:0.2% decrease y-o-y
Q4 2020 net retail sales: 16.7% increase y-o-y
Q4 2020 selling space:15.4% increase y-o-y
Q4 2020 sales densities:1.3% decrease y-o-y
Q4 2020 LFL traffic:15.2% decrease y-o-y
Q4 2020 LFL basket:17.8% increase y-o-y
Net sales growth (% y-o-y)
Total LFL sales growth (% y-o-y)
Net selling space growth (% y-o-y)
Total LFL traffic growth (% y-o-y) Total LFL basket growth (% y-o-y)
Net sales densities (th. RUB/sq. m[1])
25.5%
23.0%20.3%
18.1%18.0%17.2%
21.3%
12.6%
18.7%
16.7%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
24.4%22.6%
15.9%15.5%
17.2%
15.1%12.7%
19.4%
21.8%
15.4%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
327 326 329332 333 335
344 337 334 330
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
4.7%
7.5% 7.6%7.7% 7.6%
5.9%5.9%
(2.4)%
1.4%
(0.2)%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
6.7% 8.2% 7.8%6.3%
3.0% 3.1%1.4%
(10.8)%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4(1.8)%
(0.7)%(0.2)%
1.3%
4.4%2.7% 4.4%
13.6%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
LFL basket, y-o-y Food CPI, %Source: X5 data[1] − Total net sales from trailing four quarters divided by average selling space of trailing four quarters
34
(15.2)%
17.8%
(32.6)%
44.9%
2018 2019 2020 2018 2019 2020 2018 2019 2020
2018 2019 2020 2018 2019 2020 2018 2019 2020
PEREKRESTOK SUMMARY (3/4)FORMAT STRATEGY HIGHLIGHTS
Value proposition and adapting to customer needs:
− Further adaptation of assortment with focus on fresh, F&V, ready-to-eat
− Omni-channel development
− Targeted loyalty system and personalised promo
− Best-in-class service, further increase of NPS
− Comfort and positive emotions from shopping
− Chain expansion with aim of being closer to the customer
Improve efficiency and reduce costs:
− Further improvements in purchasing terms and opex
− Increase the share of private labels
− Increase the share of direct import
− Further improve logistics (forecasting, stock replenishment system)
35
PEREKRESTOK SUMMARY (4/4):ONLINE: ON TRACK TO BECOMING #1 IN RUSSIAN E-GROCERY
Average customer spending per month, RUB ths
5.6
6.06.7
11.6
Before Online launch After Online launch
Offline Online
x1.6
36
174 204 276636
891 867 922
1,6302,096
3,592
2,836
4,747
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
52 64 93
200280 277 306
505591
885
846
1,295
3,832 3,7914,121
1,000
2,000
3,000
4,000
5,000
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Number of orders, ths Average ticket, RUB
RUB
Net sales, RUB mln
Number of orders and average ticket
Increase number of darkstores to 12 by 2022 (from 5 in Dec 2020)
Increase assortment and develop sales on external marketplaces
X5 online targets
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