3Q2018 Trading Update Investor Presentation. 29 October, 2018

Transcription

1 3Q018 Trading Update Investor Presentation 9 October, 018

2 3Q018 Highlights Total sales growth in 3Q018 of 1.5%, reaching Rub 100.8bn (3Q017 sales growth of 18.7%, reaching Rub 89.6bn) LFL sales growth in 3Q018 of -0.6%, incl. -0.3% LFL traffic and -0.3% LFL ticket growth 10 new supermarkets were opened while two supermarkets were closed in 3Q018 Total store count reached 33 hypermarkets and 11 supermarkets Total selling space of 1,410,073 sqm as of 30 September 018 (17.% y-o-y growth) Number of active cardholders increased to 13.8m (17% y-o-y growth)

3 BUSINESS GEOGRAPHY NUMBER OF STORES Murmansk As at One store More than one store Stores opened in 018 New city entered in 018 Cities with supermarkets presence St. Petersburg and region 36 Hyper- markets 9 Petrozavodsk Moscow and region 4 46 Hypermarkets Regions Hypermarkets 33 Hypermarkets across 84 cities in Russia 15 in St. Petersburg, Moscow, Novosibirsk, Yekaterinburg and Central region Pskov Cherepovets Syktyvkar Veliky 3 Vologda Novgorod Khanty- Yaroslavl Mansiysk Tver 5 Kostroma Ivanovo 3 Nizhny Smolensk Obninsk Novgorod Yoshkar Perm Vladimir Ola 4 Izhevsk Nizhny Tagil Kaluga Cheboksary Tobolsk Nizhnekamsk Tula 3 Ryazan 4 Kazan Ekaterinburg Bryansk Naberezhnye Chelny 5 5 Tyumen Orel Lipetsk Saransk Ulyanovsk Almetyevsk Kamensk-Uralsky Dimitrovgrad 4 Ufa Penza 6 Chelyabinsk Kursk Togliatti Omsk 3 Samara 6 Belgorod Voronezh 3 Sterlitamak Saratov Balakovo Magnitogorsk Engels Volzhsky Volgograd 5 Novoshakhtinsk 4 Orenburg Orsk Taganrog Shakhty 4 Novocherkassk Rostov-na-Donu Krasnodar 3 Novorossiysk Stavropol Astrakhan Cherkessk Armavir Zheleznovodsk Surgut Novosibirsk 77 Barnaul 3 RUSSIA 3 Tomsk Yurga 5 Krasnoyarsk Achinsk 3 Kemerovo Prokopievsk Bratsk 5 Novokuznetsk Biysk Irkutsk Grozny

4 3Q018 Store network development Store network development Q'18 Hypermarkets Cities of presence (hypermarkets) Selling space development K sqm 31% 6% 7% 8% % 17% 30% 1,38 1, ,146 6% 46 39% % ,98 1,308 1, Q'18 Hypermarkets XX% Total selling space growth, y-o-y 1,300 1, Format development as % of total selling space % % % 14% 13% 1% 85% 84% 86% % 7% 4% 7% 7% 7% 4% 5% 31% 37% 37% 4% % 4% 5% 5% 18% 4% 1% 10% 86% 80% 73% 67% 58% 50% 50% Q' Standard Compact XX Average hypermarket selling Supercompact space, K sqm Selling space ownership as % of total selling space 4% 4% 18% 19% 10% 15% 5% 76% 76% 8% 0% 1% 1% 81% 76% 85% 90% 100% 99% 99% 95% Q'18 Owned Leased 4

5 3Q018 Selling space development Lenta total selling space age split Selling space by city population as % of total selling space 6.3% 6.9% 1.5% 3.6% 1.9% 3.% 36.% 3.6% 17.% 14.8% 33.5% 30.4% 45.3% Moscow St. Petersburg >1M inh 1 9.0% 3.1% % 1.6% % 1.5% K-1M inh 0.9% 0.7% % 40.9% 4.3% 43.8% 49.3% 54.7% K inh <00K inh 1.4% 4.9% 0.% % Q'18 Lenta formats >3 years old 1-3 years old <1 years old Hypermarkets share in total selling space XX Number of hypermarkets share in total selling space XX Number of supermarkets Selling space by region Standard hypermarket Average size (selling space sqm) 7,100 % of total selling space 1 % owned 49.6% 9.3% North-West Central Urals 5.0% 10.% 10.% 0.3% 10.5% 0.5% 10.8% XX Hypermarkets Total Compact hypermarket 4, % 68.4% South Moscow % 9.0% 3.1% 1.1% Supercompact hypermarket 3, % 49.9% St. Petersburg Siberia 13.7% 15.9% 1.6% 15.% 1.8% 17.7% Supermarket 800 (1) as % of total selling space as of 30 September 018 () as % of total selling space of the format as of 30 September % 4.6% Total 75.8% Volga 17.3% K sqm (1) Including Moscow region () Including St. Petersburg region (3) Including North Caucasus 5

6 3Q018 Sales growth Sales growth 3Q018 Total Sales Traffic Ticket + 1.5% + 0.0% - 6.3% Hypermarket + 10.% % -.8% Supermarket % % % LFL - 0.6% - 0.3% - 0.3% Hypermarket - 0.8% - 0.7% - 0.1% Supermarket +.9% + 3.5% - 0.6% Sales split St. Petersburg and Moscow vs. regions Rub sales breakdown 10.6% 13.0% 14.1% 13.5% 3.6%.% 1.9% 0.8% 65.8% 64.8% 64.0% 65.7% 1H'17 H'17 1H'18 3Q'18 1 Regions St. Petersburg Moscow Total Sales growth LFL Sales growth Quarterly sales, Rub bn LFL growth, % 0.% 0.9% % 16.3% 18.7% % % 16.6% 1.5% % 4.3% 0.1% 5.9% 1.7% 0.9% 0.3% -1.7% -.0% -3.9% -.0% -.9%.% 0.7% -1.5% 5.5% 4.6%.0% 5.% 6.1% 3.5% 0.6% -0.3% 1.5% -0.6% 0.6% -0.3% 3Q'16 4Q'16 1Q'17 Q'17 3Q'17 4Q'17 1Q'18 Q'18 3Q'18 Hypermarkets Sales growth, % 3Q'16 4Q'16 1Q'17 Q'17 3Q'17 4Q'17 1Q'18 Q'18 3Q'18 LFL Sales LFL ticket LFL traffic (1) Including St. Petersburg region () Including Moscow region 6

7 Market inflation and income trends Nominal and real GDP in Quarterly growth y-o-y, % 1.4% 11.9% 1.0% 9.4% 6.8% 3.8% 8.% 6.8% 6.8% 5.8% 6.4% 6.7% 5.4% 4.%.9% 3.4% 1.3% 1.8% 0.6% 1.3%.5%.% 0.8% 0.3% -0.4%-0.5%-0.4% 0.3% 0.6% 0.9% 1.3% 1.9% -1.9% -3.4% -.7% -3.% CPI in Monthly growth y-o-y, % 5.0% 4.6% 4.8% 4.3% 4.1% 4.1% 3.9% 3.3% 3.4% 4.4% 3.0% 3.1% 4.%.7%.5%.5% 3.7%.%.%.4%.4%.4%.3%.5% 3.5% 3.6% 3.9% 3.8%.6%.0% 1.6% 1.1% 1.1% 0.7% 0.9% 1.3% 1.1% 0.4% 0.5% -0.%.5% 1.9% Nominal Real CPI Food inflation Nominal and real disposable income in Monthly growth y-o-y, % 8.9% 6.1% 1.% 0.5% -3.8% -4.0% -3.1% -7.8% 4.0% 4.4% 3.% 3.1%.0%.9%.9% 0.1% 1.1% -0.5%-0.1% -4.0% -0.9% -0.1% -1.1% -1.0% -1.4% 8.% 7.3% 6.9% -6.8% 4.6% 5.8% 4.% 4.0% 5.4% 3.%.7%.7% 0.3% 0.7%.3% -0.9% -1.5% Nominal and real food retail sales in Monthly growth y-o-y, % 3.% -.7% -3.6% 4.9% 5.3% 5.% 5.3% 5.6% 4.% 7.0% 6.3% 4.9% 5.5% 4.0% 4.4% 3.9% 3.4% 3.3% 3.6% 3.1% 3.6%.9% 1.7% 4.0% 3.8% 3.7% 3.0% 3.4%.1% 1.9% -0.8% 0.0% 0.6% 0.% 0.8% 1.7%.0%.%.% 1.8% 1.3% 0.0% Nominal Real Nominal Real Source: Rosstat. 7

8 Appendix Quarterly operational data 1Q'16 Q'16 3Q'16 4Q'16 FY'16 1Q'17 Q'17 3Q'17 4Q'17 FY'17 1Q'18 Q'18 3Q'18 Sales total, Rub bn Total sales growth.1% 1.8% 0.% 0.9% 1.% 17.% 16.3% 18.7% 3.4% 19.% 19.9% 16.6% 1.5% Hypermarkets Number of stores Hypermarkets Selling space, K sqm ,146 1,146 1,167 1,173 1,03 1,38 1,38 1,393 1,403 1,410 Hypermarkets ,100 1,100 1,119 1,119 1,144 1,98 1,98 1,303 1,308 1, LFL Sales growth 5.6% 4.9% 4.3% 1.7% 3.9% -1.7% -.0% 0.7% 5.% 0.9% 6.1% 3.5% -0.6% Hypermarkets 5.5% 4.9% 4.3% 1.6% 3.9% -1.8% -.1% 0.5% 5.4% 0.8% 6.7% 3.7% -0.8% 7.9% 3.5% 4.4% 6.1% 5.5% 0.9% 0.4% 5.0% 1.4% 1.9% -4.0% 0.5%.9% LFL Traffic growth 3.0% 1.4% 0.1% -3.9% -0.1% -.0% -.9% -1.5% 0.6% -1.4% 0.6% 1.5% -0.3% Hypermarkets.8% 1.3% 0.0% -4.% -0.% -.% -.8% -1.7% 0.9% -1.4% 1.3% 1.5% -0.7% 5.%.7% 1.0% -0.7% 1.9% 0.% -3.4% 0.6% -1.7% -1.1% -5.4% 1.0% 3.5% LFL Ticket growth.5% 3.4% 4.% 5.9% 4.0% 0.3% 0.9%.% 4.6%.3% 5.5%.0% -0.3% Hypermarkets.6% 3.6% 4.% 6.0% 4.1% 0.3% 0.8%.3% 4.5%.% 5.4%.1% -0.1%.5% 0.8% 3.4% 6.9% 3.5% 0.7% 4.0% 4.4% 3.% 3.1% 1.5% -0.5% -0.6% 8

9 Guidance 018 guidance: to open about 18 new hypermarkets and about 40 new supermarkets, capex of Rub 5-30bn 019 guidance: to be announced in early 019. The Company has decided to significantly reduce store openings next year relative to 018 The Company is no longer targeting to double total selling space during the period of

10 Albert Avetikov Director for Investor Relations Dmitry Kovalenko Investor Relations Manager 11 Savushkina str. St. Petersburg, Russia 10