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Investor Presentaiton

X5Group 3 Focus on efficiency Key EBITDA drivers Private labels and direct import share growth Delivering assortment differentiation and gross margin improvement through private label and direct import development Regional growth contribution EBITDA margin in new regions increased by c. 1.5 p.p. y-o-y in 2021 through DC and other costs utilisation Capex drivers Continue ambitious space expansion Focus on Pyaterochka proximity format and aggressive Chizhik rollout with 3,000+ stores in the next 3 years Smart refurbishments Extended store life cycle in terms of equipment renewal and repairs Driving commercial function efficiency Automation of category management, personalised promo, pricing and customer value management using big data capabilities; using cross-format synergies in the commercial function Operating costs optimisation Leveraging the scale of the business, cross-format synergies and driving efficiency initiatives to deliver lean and efficient retail operations Driving business efficiency Key process digitalisation with high investment returns (IRR >100%) Logistics development Renewal of the truck park and opening of new DCs in line with expansion plans; increasing transport utilisation Improving personnel efficiency Driving productivity growth via process simplification and automation New businesses supporting and strengthening the core X5 formats 16
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