Investor Presentaiton
4
Relentless Focus on SG&A Optimisation
Underpinning Margin Expansion
Continuous Optimisation of Personnel Expense...
Personnel per Store¹
26
26
24
22
222
20
20
DETSKY MIR
RETAIL
CHAIN
...while Growing Sales Density Offsetting Declines in Gross
Margin...
38,6%
38,0%
36,2%
34,1%
33,8%
48,6
49,7
49,9
51,1
18
45,5
2013
2014
2015
2016
2017
...Ensuring Strong Positive Operating Leverage...
Adjusted SG&A expenses as % of revenue²
2013
2014
2015
2016
2017
Gross Profit Margin (%)
Gross Profit per sqm³ (RUB 000)
...Resulting in Sustainable Margin Expansion
11,0%
31,0%
9,8%
10,2%
10,3%
28.2%
7,7%
3,8%
25.9%
10 663
1.6%
3,8%
23,7%
22,8%
1,7%
3,0%
8 203
1,8%
3,2%
3,3%
12,5%
1,3%
1.6%
6 185
10,0%
9,6%
8,9%
8,1%
4 463
2 771
13,1%
12,8%
11,7%
10,3%
9,8%
2013
2014
2015
2016
■Rent & Utility
■Payroll
Advertising & Marketing
2017
■ Other
2013
2014
2015
2016
2017
Adjusted EBITDA (RUBm)
Adjusted EBITDA Margin (%)
Source: Company data. Note: The Company's consolidated financial statements for 2013 under US GAAP and 2014-2017 under IFRS. For the line items and the periods presented, there was no difference between the calculation of numbers or
presentation under GAAP vs IFRS
Excluding personnel in headquarters
2 SG&A expenses exclude D&A expenses and adjusted for LTI bonuses, as well as Income received from partial termination of employees' right to receive shares under the LTI program
3 Calculated per average space for the period
4Adj. EBITDA is calculated as profit for the year before income tax, FX gain/loss, gain on acquisition of controlling interest in associate, impairment of goodwill, net finance expense, D&A, adjusted for the one-off effect relating to disposal of the Yakimanka
building in 2014, as well as share-based compensation and cash bonuses under the LTI program
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