Investor Presentaiton
Financial Performance Summary
(RUBm, unless specified otherwise)1
Comments
2013
2014
2015
2016
2017
Number of stores
252
322
425
525
622
Detsky Mir stores
224
278
381
480
578
ELC stores
27
43
44
45
44
Sales growth
Selling space (k sqm)
320
390
491
596
688
Revenue
36,001
45,446
60,544
79,547
97,003
% total sales growth
30.3%
26.2%
33.2%
31.4%
21.9%
% LFL sales growth²
15.3%
14.6%
13.7%
12.3%
7.2%
Revenue per sqm³
118
128
137
146
151
(RUB thousand/sqm)
Improved
operating
efficiency
Online sales4
227
443
1,260
2,776
4,637
Share of online sales
0.6%
1.0%
2.1%
3.5%
4.8%
Gross profit
13,908
17,263
21,904
27,108
32,798
Margin, %
38.6%
38.0%
36.2%
34.1%
33.8%
Gross profit per sqm³
46
49
50
50
51
(RUB thousand/sqm)
Adjusted SG&A5
11,155)
12,807)
15,708
18,885
22,127
Superior EBITDA
margins
% of revenue
31.0%
28.2%
25.9%
23.7%
22.8%
Adjusted EBITDA6
2,771
4,463
6,185
8,203
10,663
Margin, %
7.7%
9.8%
10.2%
10.3%
11.0%
Adjusted Profit for the period?
1,153
1,685
2,189
3,827
5,501
Margin, %
3.2%
3.7%
3.6%
4.8%
(5.7%)
Capex
Total Debt
5,922
9,716
18,359
14,638
13,592
Cash and cash equivalents
(860)
(1,670)
(1,934)
(2,445)
(3,155)
Adjusted Net Debt
5,062
2,806
10,618
11,133
10,436
Adjusted Net Debt / Adjusted
1.8x
0.6x
1.7x
1.4x
1.0x
EBITDA
Capex
% of revenue
Dividends paid
(772)
2.1%
(1,945)
4.3%
(5,308)
8.8%
(1,747)
2.2%
(2,468)
2.5%
(420)
(1,856)
(2,973)
(4,427)
(4,767)
DETSKY MIR
RETAIL
CHAIN
■Strong support from both network expansion and LFL
■Solid LFL Sales growth rates
■ Accelerated rate of new openings in 2017 (+104 stores⁹)
■Slightly declining gross margin due to investment in price
leadership to support traffic and LFL growth
■ Over 800bps improvement in SG&A as % of sales
over five years (-93bps 2017 vs. 2016)
■Major SG&A optimisation measures implemented by the
new management team since 2013
■Over 320bps margin increase over five years (+68bps
2017 vs. 2016)
■Double-digit EBITDA margin achieved in 2015 and
maintained in 2016 - 2017, expected to be maintained in
2018
■ Asset-light business model allows to achieve superior
cash flow generation
Conservative
financial policy
■Leverage as of 31-December-2017 is 1.0x vs. 4.0x
average leverage covenant level across the loan portfolio
Attractive
returns for
shareholders
■Continuous dividend payout pattern
■Yearly dividend payments increased more than 10-fold
from 2013
Source: Company data
1 The Group's consolidated financial statements for 2011-2013 under US GAAP and 2014-2017 under IFRS. For the line items and the
years presented, there was no difference between the calculation of numbers or presentation under US GAAP and IFRS
2 LfL growth in RUB terms. LfL growth includes only DM stores in Russia that have been in operation for at least 12 full calendar months
3 Calculated per average space for the year
4 Including in-store pickup
5 Adjusted SG&A expenses are calculated excluding Depreciation and Amortisation, as well as additional bonus payments and Income
received from partial termination of employees' right to receive shares under the LTI program
6 Calculated as EBITDA, adjusted for the one-off effect relating to disposal of the building occupied by the Yakimanka Gallery
in 2014, as well as additional share-based compensation expense and Income received from partial termination of
employees' right to receive shares under the LTI program
7 Adjusted for the one-off effect relating to disposal of the building occupied by the Yakimanka Gallery in 2014
(together with related tax effects), as well as additional bonus accruals and Income received from partial
termination of employees' right to receive shares under the LTI program
8 Adjusted Net Debt is calculated as Net Debt adjusted for amounts receivable under the loan issued to CJSC
"DM-Finance" (Sistema's subsidiary), fully repaid on February 27, 2017.
9 In 2017, Detsky Mir closed six stores as part of the Company's ongoing rationalisation programme
32View entire presentation