Rating of FMCG retailers in Russia

Transcription

1 In 27, research products of the information agency "INFOLine" were appreciated by the leading European companies. Agency "INFOLine" was made into a single association of consulting and marketing agencies of the world "ESOMAR". In accordance with the rules of the association all the products of the agency "INFOLine" certified by European standards, ensuring that our customers receive a quality product and sales service through further consultations at the request of customers. Periodic review of industry Rating of FMCG retailers in Russia May 213 Demo-version Statistical data on retail trade in Russia and regions Changing the main indicators of retail trade in Russia Review of developments in the retail market of Russia, took place in May 213 Rating of FMCG retailers by the number of stores, selling area in May 213 and revenues in 2, I quarter 213

2 Contents branch review "Rating retailers FMCG of Russia" INFOLine Released 6 FMCG Retail Chains of Russia Research Report... 3 Introduction... 4 Rating of FMCG retailers in Russia... 5 Performance results of TOP 13 FMCG chains... 5 The rating of FMCG retail chains of Russia in terms of number of stores... The rating of FMCG retail chains of Russia in terms of trading floorspace The rating of FMCG retail chains of Russia in terms of net sales Section I. Development of retail trade in Russia Macroeconomical figures of the retail trade Leading indicator of retail trade development State regulation of retail trade The structure of retail sales by the categories of goods The structure of retail sales by the categories of trading units Regional structure of retail sales... 4 Inflation at the food market Incomes and expenditures of the population Consumer expectations and confidence of population... 5 Section II. Other events of the retail trade Activities of INFOLine IA specialists Section III. Events and development plans of FMCG retail chains X5 Retail Group N.V. / Pyaterochka, Perekrestok, Karusel and Perekrestok-express retail chain X5 Retail Group N.V. (e5.ru LLC) / Internet shop e5.ru X5 Retail Group N.V. / Pyaterochka retail chain X5 Retail Group N.V. V. / Perekrestok retail chain... 6 X5 Retail Group N. V. (Express-retail, LLC) / Perekrestok express retail chain, Citymag, Kopeika X5 Retail Group N. V. / Karusel retail chain Magnit, JSC / Magnit, Magnit Semeyiniy, Magnit-Cosmetic, Rouge retail chains Magnit, JSC / Magnit, Magnit Semeyiniy retail chains Magnit, JSC / Magnit-Cosmetic, Rouge retail chains... 7 Auchan Groupe / Auchan, Auchan-City, Nasha raduga and Atac retail chains... 7 Auchan Ltd. /Auchan, Auchan-city retail chains... 7 Auchan, LLC / Nasha Raduga retail chain Real,-hypermarket, LLC / real,- retail chain Atac-Rossiya, Ltd. / Atac retail chain Metro Group / METRO, METRO Punct and Real retail chains METRO Cash and Carry, LTD. / METRO, METRO Punct retail chains Metro Cash&Carry, LLC / Fasol franchise retail chain Real-Hypermarket, LTD. / real,- retail chain (retail chain in the process of acquisition) GC DIKSI (Diksi Group, JSC) / Diksi retail chain, Megamart, Minimart, Viktoria-kvartal, Deshevo, Semeynaya Kopilka, Viktoria, Kesh GK DIKSI (Diksi Group, JSC) / Diksi retail chain, Megamart, Minimart GC DIKSI (Victoria, GK) / retail chain Victoria-kvartal, Deshevo, Viktoria, Kesh, Semeynaya Kopilka O'KEY, LTD. / O'KEY retail chain Lenta, LTD. / Lenta Cash&Carry retail chain Sedmoi Kontinent, JSC / Sedmoi Kontinent, Nash retail chains

3 Periodic review of industry "Rating retailers FMCG of Russia" May 213 INFOLine Released 6 FMCG Retail Chains of Russia Research Report Dear colleagues, In June 213 INFOLine IA prepared a research report devoted to 6 FMCG Retail Chains of Russia according to results of 2. The report includes 3 main parts: Part 1. Condition of the FMCG retail market in Russia Part 2. Business reference data on TOP 7 major FMCG retailers of Russia Part 3. Database of 6 FMCG Chains and 46 Distribution Centers in Russia As of beginning of FMCG chains of Russia accounted for the main part of retail chain turnover, about 33 thousand stores (not counting 45 thousand stores of consumer cooperation and more than 41.9 thousand stores of FGUP Pochta Rossii (Russian Post Federal State Unitary Enterprise), with aggregate sales floor space of more than 14 million square meters, including 28 thousand convenience stores, more than 3.5 thousand supermarkets and more than 73 hypermarkets, 46 distribution centers, among them 55 distribution centers of TOP 8 largest retailers of Russia. Total revenue of chains in 2 came up to over 3.2 trillion roubles. Chains are divided into groups: federal chains (inside the group they are arranged in descending order by revenue); other chains divided by Federal Districts (FD) (inside each FD the chains are arranged in descending order by revenue). Database of 6 FMCG Chains and 46 Distribution Centers in Russia, which is intended for optimization of interaction with retail chains and includes the following fields: Chain s brand Legal name Chain s management Chief Executive Officer Chief Financial Officer Chief Procurement Officer Chief Information Officer Actual address Phone: Fax: Web site Formats developed (hypermarket, supermarket, convenience store) Total number of the chain s outlets as of 1 January 213 Number of stores as of 1 January 213 in terms of (hypermarkets, supermarkets, convenience stores) Total trading floor space of the chain s stores as of 1 January 213 Net revenue (without VAT) of the retail chain in 2-2, billion roubles Regional representativeness (regional areas and cities in which the chain s stores are situated, including the number of stores) Number of DCs as of 1 January 213 Total floor space of DCs as of 1 January 213 Regions of DCs presence as of 1 January 213 To obtain detailed information regarding Database of 6 FMCG Chains and 46 Distribution Centers do not hesitate to contact managers of INFOLine IA, Christine Savelyeva ( , , ext. 14 or Darya Feschenko (ext. 6). Best regards, Burmistrov Michail CEO INFOLine-Analitic Fedyakov Ivan CEO IА INFOLine 3

4 Introduction The branch survey The Rating of FMCG retail chain of Russia contains information about the development of the retail trade, as well as the overview of events that took place at the Russian retail market during the period under review (for the present survey this is May 213), the information related to the results of operating, financial and investment activities of FMCG chains in Russia, as well as the rating of 13 largest FMCG retail chains of Russia. The survey is prepared on the basis of integrated set of data sources: Regular monthly polling of more than 15 retail chains of Russia by the experts of INFOLine IA; Materials from MSM (printed press, electronic MSM, federal and regional information agencies); Information materials of the retail chains and supplying companies (press-releases, Web-site content, yearly and quarterly statements, trade literature regarding the securities issue and investment memorandums); Financial statements of the chains according to international standards (audited and managerial); At the present time a large variety of specialist in Russia require immediate and true-to-life coverage of events at the Russian retail market: Top-managers, the specialist of marketing and sale department of companies that produce consumer goods; Top-managers, the specialist of marketing and retail chains development departments; The specialists of sale departments of companies that produce goods for retail trade and offer services for various trade chains. Private and institutional investors, which own or are planning to acquire the assets in Russian retail chain trade. The principal objective of The Rating of FMCG retail chains in Russia is to satisfy the demand for immediate, statistical and analytical information regarding the Russian retail trade market and FMCG chains for the specialists of the above-mentioned specializations. To be able to receive the forthcoming issues of the survey, please, forward a request to INFOLine IA, mail@advis.ru or by fax ( ) and conclude a contract for our information services. You can receive additional information on and Facts about INFOLine information agency INFOLine information agency was established in 1999, its aim was to render information and advisory services to commercial organizations. The agency renders permanent information support to more than companies in Russia and world-wide. INFOLine IA monitors publications in more than 5 MSM on daily basis and carries out analytical research related to 8 subjects of RF economy. Since 23 INFOLine IA has been conducting various desk researches of the markets both on customer s request and on the Agency s own initiative. When working on a market research, the Agency s analysts make extensive use of the unique data support available to them and their years-long experience of operating various data flows. The research reports and surveys of INFOLine IA are used in their activities by largest FMCG retailers (X5 Retail Group, Magnit, Auchan, Metro Cash&Carry, Lenta, O Key), producers (Proсter&Gamble, Coca- Cola, Pepsi, SABMiller, Fazer, Philip Morris, Mars), distributors (Megapolis GC), financial (Uralsib FC, MDM-Bank) and service companies (GC Servis-plus, Wincor-Nixdorf). 4

5 Rating of FMCG retailers in Russia Performance results of TOP 13 FMCG chains 1 Periodic review of industry "Rating retailers FMCG of Russia" May 213 Performance results of TOP 13 FMCG chains in Russia 2 In May 213 the number of trading units of TOP-13 FMCG retailers increased by * units; all in all, during January-May by * units. At the same time in May 213 the growth in the total trading space was about * thousand sq. m. Altogether, during January-May 213 the total trading space increased by * thousand sq. m Dynamics of number of trading units and their floorspace of 13 largest retailers of Russia in (to the beginning of the period) 25 2 Dynamics of number of trading units and their floorspace of 13 largest retailers of Russia in 26-2 (to the end of the period) 15 5 I-7 I-9 II- IV- VI- VI II- Number of trading units X- XII- II- IV- VI- VI II- X- XII- II- IV- VI- VI II- Floorspace of trading units, thousand square meters X- XII- II- IV- VI Number of trading units Floorspace of trading units, thousand square meters The total number of stores among TOP-13 FMCG retailers as of 1 June 213 was *, with total trading floorspace of * thousand sq. m. Development of hypermarket format 3 In May 213 the number of hypermarkets among TOP-13 FMCG retailers increased by *, and the trading space decreased by *thousand sq. m. Altogether, during January-May 213, the number of trading units increased by *, while the trading space increased by *thousand sq. m. 4 3 Dynamics of the net hypermarkets number increase (beginning with January 213 the list was expanded from to 13) among the largest retailers of Russia in on monthly basis, number of outlets I II III IV V VI VII VII IX X XI XII -2 In May 213 there were opened: a Lenta hypermarket in Moscow region (Balashiha) and a K-RUOKA hypermarket in Leningrad region (Vsevolozhsk). 1 Datas was corrected as a result of I qr Hereinafter the data for Х5 Retail Group, Magnit and Diksi is presented as it was available for the date of this survey s preparation: Magnit April 213, Dixy - March 213, X5 Retail Group - March Datas was corrected as a result of I qr Hereinafter the data for Х5 Retail Group, Magnit and Diksi is presented as it was available for the date of this survey s preparation: Magnit April 213, Dixy - March 213, X5 Retail Group - March Datas was corrected as a result of I qr Hereinafter the data for Х5 Retail Group, Magnit and Diksi is presented as it was available for the date of this survey s preparation: Magnit April 213, Dixy - March 213, X5 Retail Group - March

6 Dynamics of number of hypermarkets and their floorspace of 13 largest retailers of Russia in Number of hypermarkets, units I-7I-8I-9I- II- III- IV- V- VI- VII- VI II- IX- Floorspace of trading units, thousand square meters X- XI- XII-I- II- III- IV- V- VI- VII- VI II- IX- X- XI- XII-I- II- III- IV- V- VI- VII-VI II- IX- X- XI- XII-I-13 II- 13 III- 13 The total number of hypermarkets among TOP-13 FMCG retailers as of 1 June 213 was *, with total trading floorspace of * thousand sq. m. Research (full version) includes also the description of development of supermarket format, discounter 4 format and convenience store format Key tendencies of January-April 213 In 213 one can see the continuation of trends that can be traced back: Consolidation of independent retail Sergey Kuznetsov, the general director of the Union of Independent Chains of Russia (UICR), created in 26 and with number of members that reached 55 as of 2, informed in January 213: "One of the objectives of our union for 213 is aggressive promotion of our association and growth of the number of its members. Regional chains are going to open quite large (up to 1.5 thousand square meters) supermarkets with high share of in-house production and products in the fresh category. New projects In the first quarter of 214 it is planned to open the first hypermarkets-discounters of the new retail chain NL (New Lenta), established by the former co-owners of Lenta chain, August Mayer and Dmitriy Kostygin. Big Box LLC will construct a network of the "club type self-service warehouses", where the product mix of an average discounter shop will be presented at the floor space of about 14 thousand square meters 35-4 SKU, 6% of them food commodities. New foreign retailers in Russia In December 2 the Finnish group Kesko (Kesko Food brand) began its development at the Russian market, opening the first hypermarket of K-RUOKA chain in St. Petersburg. In 213 the company plans to open minimum another 2 hypermarkets in St. Petersburg (Uralskaya street) and Leningrad region (Vsevolozhsk). Besides, in 213 the first hypermarkets of the chain are planned for commissioning in Moscow. IV- V VI As it has come to be generally accepted by the international retailers the format of discounter should meet the one commodity - one demand requirement. But it is important to emphasize that in Russia the discounter format, as such, is non-existent. At the same time the specialists of INFOLine IA would like to distinguish two sub of the convenience store format: soft discounters, for the of the number of the largest Russian players, such as Pyaterochka, Diksi, Magnit, Monetka, Kopeika, Maria-Ra and others, and convenience stores. 6

7 Periodic review of industry "Rating retailers FMCG of Russia" May 213 The rating of FMCG retail chains of Russia in terms of number of stores INFOLine IA has been monitoring the dynamics of commissioning of FMCG stores since 26. At the present time we monthly receive the data regarding the number of stores dynamics for 13 largest FMCG retailers of Russia The dynamics of number of trading units among the largest retailers 5 The dynamics of number of stores of the largest retailers for the period of are represented in the table below. Number of stores of the largest FMCG chains during as of the end of the period, (units) Name X5 Retail Group Magnit, JSC (Tander, JSC) Auchan Groupe (Auchan, LTD.) Metro Group (Metro C&C, LTD.) DIXY GC Brand Main 6 Number of stores for the end of period 2 I qr. 2I qr. 213 May 2 May 213 Dynamics of number of stores for the end of period January- January- May May May May Pyaterochka D * Perekrestok S * Karusel, Pyaterochka Maxi H * Perekrestok-Express, C * Pyaterochka- Express Kopeika, Kopeika Super C, S * Total * Magnit D * Magnit cosmetic C * Magnit Semeiny, Rouge H * Hypermarket Magnit H * Total * Auchan, Auchan-City, Raduga H * real,- H * Total * METRO, METRO Punct H * Megamart, Minimart, Diksi D, S, H * Victoria, Cash, Deshevo, Kvartal, Semeinaya kopilka C, S, H * Total * O KEY GC O KEY, O KEY-express S, H * Lenta, LTD. Lenta S, H * Sedmoi Kontinent, Nash C, S, H * Sedmoi Kontinent, JSC Monetka GC (Element- Trade, LTD.) Monetka GC (Investproekt, LTD.) Monetka GK hypermarket Monetka, Monetka Super, Rait D, S, H * Monetka (francheese) C * Total * Maria-Ra GC Maria-Ra D, S * Spar Spar (total company) C, S, H * 5 The rating was updated according to results of the January-April of 213. It presents chains with sales revenue of more than 6 billion roubles. 6 Legend: D - discounter, H - hypermarket, S - Supermarket, C convenience store 7

8 GK Holiday Metro Group (Real- Hypermarket, LTD.) Holiday Classic, Holdy, Sibiriada, Kora, Palata C, D, S, H * real,- H * HyperGlobus, LTD. Globus H *** Atak S (D) *** Auchan Groupe (Atak- Rossiya, LTD.) Norodnaya 7Ya, Idea, Spar, TD Intertorg, LTD. Norma C, S * Corporation Grinn, JSC Liniya S, H *** Gorodskoy supermarket, Azbuka Vkusa S *** LTD. REWE Group (Billa LTD.) Billa S *** Tverskoy kupets, Volny *** Ritm 2, LTD kupets, Telegka, Apelsin, C, D, S, H Econim, 4 Seasona Data source INFOLine IA, according to the companies data Research (full version) includes the rating of TOP largest FMCG chains The rating of FMCG retail chains of Russia in terms of trading floorspace 18 INFOLine IA has been monitoring the dynamics of trading floorspace in FMCG retail since 26. At the present time we monthly analyze the data regarding the changes in trading space for 13 largest FMCG retailers of Russia (since January 213 the number of monitored retailers increased from to 13). The results of 28-2 The key tendency of 2 was the declining of growth rates of the largest multiformat chains (Magnit and X5 Retail Group), of retailers developing large-format outlets (Auchan, Metro C&C, O Key, Lenta), as well as federal retailers with the remaining key format of the convenience store (Diksi, Monetka), while other chains increased their development rates (in the first place due to high growth rates of such chains as Fix Price, Holiday GC, Maria-Ra, TH Intertorg (Narodnaya 7Ya) and others). For instance, the two biggest retail companies of Russia (Magnit and X5 Retail Group) accounted in 2 for *% (in 2 *%, in 2 *%, in 29 *%, in 28 *%) of the total sales floorspace growth. Dynamics of trading floorspace growth of 13 major retailer of Russia (not considering retailers with decreased floorspace) in 28-2, ths.sq.m Magnit X5 Retail Group Auchan Groupe Metro Group GC O'KEY Other chains GC Monetka Net growth (right-hand scale), ths.sq.m. GC DIKSI Lenta 8

9 Periodic review of industry "Rating retailers FMCG of Russia" May 213 The results of January-April 213 In May of the largest chains increased their trading floorspace by * thousand sq. m. The dynamics of monthly floorspace growth of the major 13 7 chains are represented at the diagram. The floorspace growth was provided by commissioning of Magnit, Magnit Semeiny, Lenta, K-RUOKA, supermarkets Maria-Ra, GC Holiday, Spar, outlets in the of discounter and convenience store by Magnit, Pyaterochka, Diksi, Monetka, Maria-Ra and others. 55 Dynamics of net trading floorspace growth of 13 largest retailers of Russia in (beginning with January 213 the list was expanded from to 13), per month (thousand square meters) 15% % 5% % -5% -5 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec. -% the growth rates 2 vs 2, % the growth rates 2 vs 2, % the growth rates 213 vs 2, % Structure of floorspace growth for 13 major retailers of Russia (without retailers with reduced floorspace) in the I qr. 2, % Structure of floorspace growth for 13 major retailers of Russia (without retailers with reduced floorspace) in the I qr. 213, % Magnit X5 Retail Group Other retailers Magnit Auchan Groupe X5 Retail Group Metro Group Auchan Groupe Other retailers Lenta GC DIKSI GC Monetka GC O'KEY Lenta GC DIKSI GC Monetka GC O'KEY Metro Group Research (full version) includes the rating of TOP largest FMCG chains Main Name Brand 9 X5 Retail Group The dynamics of trading floorspace of the largest retailers 8 The dynamics of trading floorspace of the major retailers for the period of are represented in the table below. Dynamics of total trading floorspace Total trading floorspace for the end of period for the end of period I qr. I qr. May May May Januar January May y-may -May Pyaterochka D Perekrestok S Karusel, Pyaterochka Maxi H 7 The represented data include 13 chains of the monthly branch survey of INFOLine IA: TOP - 92 chains with revenue over 3 billion roubles, as well as other FMCG chains, including the members of Union of Independent Chains of Russia and Sistema T3S. 8 The rating was updated according to results of the January-April of 213. It presents chains with sales revenue of more than 6 billion roubles. 9 Legend: D - discounter, H - hypermarket, S - Supermarket, C convenience store 9

10 Perekrestok-Express, Pyaterochka- Express C Kopeika, Kopeika Super C, S Total Magnit D Magnit cosmetic C Magnit, JSC (Tander, JSC) Magnit Semeiny, Rouge H Hypermarket Magnit H Auchan Groupe (Auchan, LTD.) Total Auchan, Auchan-City, Raduga H real,- H Total Metro Group (Metro C&C, LTD.) METRO, METRO Punct H Megamart, Minimart, Diksi D, S, H Victoria, Cash, Deshevo, DIXY GC Kvartal, Semeinaya kopilka C, S, H Total O KEY GC O KEY, O KEY-express S, H Lenta, LTD. Lenta S, H Sedmoi Kontinent, JSC Monetka GC (Element-Trade, LTD.) Monetka GC (Investproekt, LTD.) Monetka GK Sedmoi Kontinent, Nash hypermarket C, S, H Monetka, Monetka Super, Rait D, S, H Monetka (franchise) C Total Maria-Ra GC Maria-Ra D, S Spar Spar (total company) C, S, H GK Holiday Metro Group (Real-Hypermarket, LTD.) Holiday Classic, Holdy, C, D, S, Sibiriada, Kora, Palata H real,- H HyperGlobus, LTD. Globus H Auchan Groupe (Atak-Rossiya, LTD.) TD Intertorg, LTD. Atak S (D) Norodnaya 7Ya, Idea, Spar, Norma C, S Corporation Grinn, JSC Liniya S, H Gorodskoy supermarket, LTD. Azbuka Vkusa S REWE Group (Billa LTD.) Billa S Ritm 2, LTD Tverskoy kupets, Volny kupets, Telegka, Apelsin, Econim, 4 Seasona C, D, S, H Data source INFOLine IA,according to the companies data

11 Periodic review of industry "Rating retailers FMCG of Russia" May 213 The rating of FMCG retail chains of Russia in terms of net sales Legal name X5 Retail Group N.V. Financial performance results 2, January-April 213 for public companies are represented in the table below. Financial performance (without VAT) of the largest FMCG chains during 2-213, billion roubles. Brand Main Sales during 2 2 vs 2, % LFL Sales during I qr. 13 m vs 2, % I qr. 13 I qr., % LFL I qr. 213, % Sales during Jan.-Apr. 13 Jan.-Apr. qr. m vs Jan.- 13 Apr.., % Sales during Apr. 13 Apr. 13 m vs Apr., % Pyaterochka D Perekrestok S Karusel, Pyaterochka Maxi Perekrestok-Express, Pyaterochka- Express, Kopeika H М On-line retail - D, S, H, M Magnit D Magnit-Cosmetic, Rouge C Magnit. JSC Magnit Seminy S Hypermarket Magnit H D, H Diksi C Kvartal, Deshevo C, D Victorya S Diksi group. Kesh S JSC Megamart H Minimart H C, D, S, Total company H O KEY, LTD. O KEY, O KEY-Express S, H Lenta LTD. Lenta S, H Sedmoi Kontinent, JSC Sedmoi Kontinent, Nash hypermarket C, S, H Dynamics of net sales (without VAT) of the largest FMCG chains in 2-2, billion roubles Data source: INFOLine IA Legal name Brand Main Data 2 2 X5 Retail Group Magnit, JSC (Tander, JSC) Auchan Groupe (Auchan, LTD.) Metro Group (Metro C&C, LTD.) Pyaterochka D Perekrestok S Karusel, Pyaterochka Maxi H IFRS Perekrestok-Express, Pyaterochka- Express C Kopeika, Kopeika Super C, S Total Magnit D Magnit cosmetic C Magnit Semeiny, Rouge H IFRS Hypermarket Magnit H Total Auchan, Auchan-City, Raduga H РСБУ METRO, METRO Punct H IFRS DIXY GC Megamart, Minimart, Diksi D, S, H IFRS, 2-IFRS pro-forma, 2-IFRS The rating was updated according to results of the first half of 2 regarding the revenue of chains in 2. It presents chains with sales revenue of more than 6 billion roubles in 2. Legend: D - discounter, H - hypermarket, S - supermarket, C convenience store Legend: D - discounter, H - hypermarket, S - supermarket, C convenience store

12 Victoria, Cash, Deshevo, Kvartal, Semeinaya kopilka C, S, H (consolidate) Total IFRS (retail revenue) O KEY GC O KEY, O KEY-express S, H IFRS Lenta, LTD. Lenta S, H MR Sedmoi Kontinent, JSC Sedmoi Kontinent, Nash hypermarket C, S, H IFRS Monetka GC (Element- Trade, LTD.) Monetka GC (Investproekt, LTD.) Monetka, Monetka Super, Rait D, S, H RAS, MR Monetka (franchise) C RAS Monetka GK Total RAS, MR Maria-Ra GC Maria-Ra D, S MR Spar Spar (total company) C, S, H MR, estimate GK Holiday Holiday Classic, Holdy, Sibiriada, Kora, Palata C, D, S, H RAS, MR Metro Group (Real- Hypermarket, LTD.) real,- H IFRS HyperGlobus, LTD. Globus H RAS Auchan Groupe (Atak- Rossiya, LTD.) Atak S (D) RAS TD Intertorg, LTD. Norodnaya 7Ya, Idea, Spar, Norma C, S RAS, MR Corporation Grinn, JSC Liniya S, H MR Gorodskoy supermarket, LTD. REWE Group (Billa, LTD.) Ritm 2, LTD Azbuka Vkusa S IFRS, MR Billa S MR Tverskoy kupets, Volny kupets, Telegka, Apelsin, Econim, 4 Seasona C, D, S, H RAS Data source INFOLine IA data Research (full version) includes the rating of TOP largest FMCG chains

13 Section I. Development of retail trade in Russia Macroeconomical figures of the retail trade 25 Periodic review of industry "Rating retailers FMCG of Russia" May 213 In 2 the retail trade turnover came up to * billion roubles, in terms of commodities mass that was *% vs. 2. In January-April 213 there happened a sharp decline of food products retail turnover growth (it decreased by *pp in January-April 213 vs. January-April 2). In April 213 the growth rates of food retail turnover demonstrated decline by * pp against March 213, by * pp against April 2. Dynamics of the main figures of the consumer market in , in % as to the corresponding period of the previous year I qr. II qr. III 5 5 qr. 5 IV qr. 5 I qr. II qr. III 6 6 qr. 6 IV qr. 6 I qr. II qr. III 7 7 qr. 7 Growth of retail trade sales Growth of food commodities sales Growth of non-food commodities sales IV qr. 7 I qr. II qr. III 8 8 qr. 8 IV qr. 8 I qr. II qr. III 9 9 qr. 9 Leading indicator of retail trade development The Index of Business Confidence in Russia I qr. 26 II qr. 26 III qr. 26 IV qr. 26 I qr. 27 II qr. 27 III qr. 27 IV qr. 27 I qr. 28 II qr. 28 III qr. 28 IV qr. 28 I qr. 29 II qr. 29 III qr. 29 IV qr. 29 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 213 IV qr. 9 I qr. II qr. III qr. IV qr. 2 I qr. II qr. III qr. IV qr. 2 I qr. II qr. III 2 qr. According to results of the polls conducted by FSGS (Federal Service of Government Statistics) the Index of Business Confidence 13 decreased by pp in the first half of 29 (initial period of the recession in 29), upon which it began to recover and according to results of the IV quarter of 2 the index increased by 8 pp against the first quarter of 29. However, the index has not yet reached the pre-crisis level of confidence and it is unlikely to reach the level of in the near future because of worsening of the overall macroeconomic situation. As for the evaluation of the economic situation in Russia as a whole, the economic situation 14 in Russia by results of the I quarter of 213, according to FSGS data, by 13 pp exceeded the results of I quarter the recessionary 29, when actual changes of economic situation came up to - pp The evaluation of the economic situation in Russia actual changes prospective changes IV qr. 2 I qr. 213 I qr. 26 II qr. 26 III qr. 26 IV qr. 26 I qr. 27 II qr. 27 III qr. 27 IV qr. 27 I qr. 28 II qr. 28 III qr. 28 IV qr. 28 I qr. 29 II qr. 29 III qr. 29 IV qr. 29 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 213 II qr. 213 Apr The index of entrepreneurial confidence in retail trade is calculated as the arithmetic mean value of evaluation balances for the level of storage stock (with the opposite sign), changes in economic situation during the current quarter as compared with the previous one and expected changes in economic situation during the coming quarter (in percentage points). The seasonal component in time series of the index is not excluded. 14 The balance of the index changes evaluation, determined as the difference between respondents shares which distinguished "improvement" and "decline" of the index in comparison with the previous quarter (in percentage points). 13

14 State regulation of retail trade Trade Act On 22 April 213 the Edinaya Rossiya (United Russia) Party presented its draft of amendments to the Trade Act. The deputies propose to limit the volume of all kinds of payments that retail chains receive from producers to 1% of the total costs of food commodities. Currently just the bonus paid by suppliers for volumes of supplied products reaches %, and marketing expenditures are not regulated at all. In May 213 the chief of the RF Government Office Sergey Prihodko expressed his negative judgment regarding the draft law No On Introduction of Amendments into Article 8 of the Federal Act On Principles of State Regulation of Trade in Russian Federation (on introduction of trading margin for individual types of socially significant goods), that limited the size of such margin for certain socially significant goods. In judgment of Sergey Prihodko the limitation of the margin at the level of 15% of the wholesale price might destabilize the economics. Research (full version) includes information on key events in the state regulation of retail trade of Russia 25 The structure of retail sales by the categories of goods Structure of retail trade turnover by commodity groups in (by months), billion roubles food commodities non-food commodities I- II- III- IV- V- VI- VII- VIII- IX- X- XI- XII- I- II- III- IV- V- VI- VII- VIII- IX- X- XI- XII- I-13 II-13 III- 13 In April 213 the share of food commodities came up to *%, and share of nonfood commodities in retail trade turnover of in Russia came up to *% (in April 2 *% and *% accordingly). In January-April 213 the share of food commodities came up to *%, and share of non-food commodities in retail trade turnover of in Russia came up to *% (in January-April 2 * % and *% accordingly). IV- 13 Research (full version) also consists the dynamics of sales of the main food and nonfoods The structure of retail sales by the categories of trading units The structure of retail trade sales according to the categories of trading units according to results of I qr. 213 continues to demonstrate the decrease of the share of the marketplaces (by.6 percentage points vs 2 and by 1.1 percentage points vs I qr. 2), individual entrepreneurs (by.4 and.1 percentage points) and small enterprises (by.4 and.4 percentage points). 14

15 Periodic review of industry "Rating retailers FMCG of Russia" May 213 % The structure of retail trade sales according to the categories of trading units in , % 8% 6% 4% 2% % I qr. 2 I qr. 213 Marketplaces Individual entrepreneurs outside the marketplaces Small enterprises Large and medium organizations (including chains) Research (full version) also consists information on structure of sale of the goods in the retail markets and fairs, detailed information on unorganized trade: number of the markets, trading places on them, structure of the markets and the managing subjects presented on them and other. Regional structure of retail sales Regional structure of retail trade sales in Russia features irregularity: *% retail trade sales in January-April 213 falls on territorial subjects of RF (Moscow, Moscow region, St. Petersburg, Sverdlovsk region, Krasnodarskiy Territory, Samara region, Republics of Tatarstan and Bashkortostan, Tyumen region, Chelyabinsk and Rostov regions), which is *pp lower then in January-April 2. According to results of January-April 213 such federal districts of RF as Volga, Urals, North-Western, Southern, North-Caucasus and Far Eastern FDs increased their shares in the retail turnover, shares of the Central and Siberian FDs decreased by *pp and *pp correspondingly. Structure of retail sales according to federal districts of RF in January-April 2, % Structure of retail sales according to federal districts of RF in January-April 213, % North-Caucasian Federal District Privolzhsk Federal District North-Caucasian Federal District Privolzhsk Federal District South Federal District Ural Federal District South Federal District Ural Federal District Northwest Federal District Siberian Federal District Northwest Federal District Siberian Federal District Central Federal District Far Eastern Federal District Central Federal District Far Eastern Federal District Inflation at the food market Dynamics of the prices for articles of food In May 213 the consumer inflation in Russia came up to *% to April 213 (in May 2 *%), during January-April 213 *% (during January-April 2 *%). In May 213 food price index reached 1% (in May 2 *%), non-food products *% (in May 2 *%), services *% (in May 2 *%). 15

16 3 2,5 Consumer price index in , in % vs. previous month ,5 1,5 -,5 January February March April May June July August September October November December Research (full version) also consists the information on dynamics of cost on key consumer products on Russia and 8 regions of Russia Incomes and expenditures of the population According to results of 2 the growth of actual cash earnings was at the level of actual wages, then according to results of 2 it considerably slowed down. In April 213 the Ministry of Economic Development decreased its forecast of salaries and wages growth in 213 to *% from *% projected earlier. In 214 the Ministry of Economic Development expects the salaries and wages to grow by *%, in 215 by *%, in 216 *%. Dynamics of labor wages and per capita incomes of the population from 2 to 2 and forecast on are represented in the diagrams below. Dynamics of actual wages and actual income of population in 2-2 and forecast on , % as to the previous period Actual wages Actual cash income * 214* 215* 216* Research (full version) also consists the structure of the monetary income of the population and structure of their use, сredit and monetary policy, results of the skanpanel of households following the results of the complete period, Average receipt dynamics in household spendings, etc. 16

17 Consumer expectations and confidence of population Periodic review of industry "Rating retailers FMCG of Russia" May 213 The results of the polls conducted by the Federal State Statistics Service among 5 people at the age of 16 and older, residing in all RF territorial subjects, during aftercrisis period starting from the II quarter of 29 and till the II quarter of 2, the index reflecting collective consumer expectations of the population 15 demonstrated growth and according to results of third quarter came up to (*). However, in the IV quarter of 2 and the I quarter of 2 the dynamics of the consumer expectations index were negative and just in the II quarter of 2 the index grew up by 4 pp to (-9%), and in the III quarter of 2 for another 2 pp to (*), in the I quarter of 2 somewhat improved, growing by 2 pp (*), also continuing its growth in the II quarter of 2 (*) and in III-IV quarter 2 demonstrated decrease by 2pp (*) and (*) again. In the I qr. 213 of the consumer expectations index in Russia demonstrate growth by 1 pp against IV quarter 2. Consumer confidence index for Russia, I qtr. 2 II qtr. 2 III qtr. 2 IV qtr. 2 I qtr. 21 II qtr. 21 III qtr. 21 IV qtr. 21 I qtr. 22 II qtr. 22 III qtr. 22 IV qtr. 22 I qtr. 23 II qtr. 23 III qtr. 23 IV qtr. 23 I qtr. 24 II qtr. 24 III qtr. 24 IV qtr. 24 I qtr. 25 II qtr. 25 III qtr. 25 IV qtr. 25 I qtr. 26 II qtr. 26 III qtr. 26 IV qtr. 26 I qtr. 27 II qtr. 27 III qtr. 27 IV qtr. 27 I qtr. 28 II qtr. 28 III qtr. 28 IV qtr. 28 I qtr. 29 II qtr. 29 III qtr. 29 IV qtr. 28 I qtr. 2 II qtr. 2 III qtr. 2 IV qtr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr. 2 II qr. 2 III qr. 2 IV qr. 2 I qr Index of consumer confidence is calculated as the arithmetic average of 5 individual indexes: expected and actual changes in individual financial conditions, expected and actual changes in economic conditions of Russia, favorability of conditions for major purchases. The balance of estimations represents the difference between the sum of definitely positive and more likely positive than not answers and the some of definitely negative and more likely negative than not answers. Neutral answers are disregarded. 17

18 Section II. Other events of the retail trade Activities of INFOLine IA specialists Appearances at forums and conferences On 3 May 213 the CEO of INFOLine IA Ivan Fedyakov, as one of the key speakers and moderator took part in Figures and Facts, a morning session of DIY, Household & Garden Centers Retail, traditionally arranged by B2B Conference Group. INFOLine IA was the information partner of this event. The subject of the morning session was Earnings and Buyer Behavior. The marketing director of K-Rauta chain Stanislav Kirillov and the CEO of Kashirskiy Dvor company Boris Prigozhin also took part in the session. Interaction of INFOLine IA with KVK Imperia In May 213, in the context of expanding its co-operation with KVK Imperia (a congresses and exhibition providing company), INFOLine IA prepared special gifts for delegates of Fifth All-Russia Forum devoted to Turnover of Medical Goods in Russia, Supplying, Purchasing and Registration, of Thirteenth All-Russia Anti-recessionary Trading Forum, Furniture as Business Fourth Forum of Directors and Electronics, Business Strategy 213 business forum. As a gift the participants of all those events will receive a special version of a number of INFOLine IA s products. The participants of the 13 th All Russia Anti-recession Forum, which is the main annual meeting of food / nonfood goods suppliers with the first persons of chain retail of North-West of Russia, were presented a special version of Geoatlas, a unique product prepared by INFOLine IA together with the Center of Dimensional Research. This product, for the first time, not only contains macroeconomic indicators and relevant data on retail and housing real estate but gives a possibility to see all shopping centers, FMCG and DIY hypermarkets existing in the city the same way they can be seen on a map. Rating of retailers of St. Petersburg and Leningrad region In May 213 INFOLine analytical agency together with Delovoy Peterburg (Business Petersburg) newspaper compiled the first rating of retailers of Petersburg and Leningrad region. The share of TOP 3 retailers forms more than 6% of retail turnover in St. Petersburg and Leningrad region, and their aggregate sales volume (with VAT) exceeds 5 billion roubles. When working on the rating the specialists of INFOLine reviewed and examined operational and financial indicators of more than 3 retailers in all segments of retail, except sales of cars and motorcycles a well as motor fuel. The main parameter, when ranking the companies, was their net retail revenue in roubles in the territory of St. Petersburg and Leningrad region (without VAT). At the same time the net retail revenue includes sales of goods by a franchiser to its franchisee that operates on reverse franchising. TOP 3 retailers of St. Petersburg and Leningrad region (number of stores and floor space are cites as of , revenue as of 213) PositionSegment Brand Group of companies Number of stores The sales floor space, ths. sq. m Revenue, billion roubles (without VAT) 1 FMCG Pyaterochka, Perekrestok, Karusel X5 Retail Group ,63 78,4* 2 FMCG Lenta Lenta 16 3,6 66* 3 FMCG O'KEY, O'KEY-Express O'KEY GC ,25 58,7 4 FMCG Narodnaya 7YA, Ideya, Norma, Spar TH Intertorg 21 76,17 24,2* 5 FMCG Dixy, Victoria-kvartal (until half of 2) DIXY GC ,47 2,5 * Оценка INFOLine 18

19 Periodic review of industry "Rating retailers FMCG of Russia" May 213 Section III. Events and development plans of FMCG retail chains X5 Retail Group N.V. / Pyaterochka, Perekrestok, Karusel and Perekrestokexpress retail chain Company name: X5 Retail Group N. V. Address: 28, str.4, Srednyaya Kalitnikovskaya, Moscow, 929. Phones: Fax: , info@x5.ru Web: Chief executive: Stephan Ducharme, CEO. Chain development As of 1 April of 213 X5 Retail Group manages stores, with trading floorspace of thousand square meters. The chain includes Pyaterochka soft discounters 16, Perekrestok-Express 14 convenience stores, 371 Perekrestok supermarkets, 78 Karusel hypermarkets. During I qr. 213 X5 Retail Group increased its trading floorspace by thousand sq. m., and the number of stores by 66, including 59 Pyaterochka soft discounters, 6 Perekrestok-Express convenience stores and 1 Perekrestok supermarket. In 213 Х5 Retail Group plans to open 8-9 stores: among them 4-45 supermarkets (3-4 out which are Zeleniy Perekrestok), 6-7 stores of Perekrestok-Express and the rest are Pyaterochka outlets. Besides, it is planned to increment the number of franchisee stores to about -15% of newly opened stores are to work according to the reverse franchising program. In the first quarter of 213 in the corporative newspaper Time of Х5" the CEO of X5 Retail Group Stephan Ducharme voiced the company s problems and strategic development initiatives for 213. According to Ducharme the company has problems with product mix and operational servicing in its outlets, in connection with this the company s turnover grows slower than that of its competitors. In May 213 it became known that X5 Retail Group acknowledged as faulty the idea of centralized management of its. In connection with this in 213 Х5 Retail Group began and currently is completing a large-scale reorganization of its business. In the context of the reorganization the commercial and logistics offices of Pyaterochka discounters were separated from similar offices of other (Perekrestok supermarkets, Karusel hypermarkets, E5.ru online store and Perekrestok-Express convenience store). Meanwhile the controlling share holder of Alpha Group, Mikhail Fridman, is personally supervising the reforms in X5 Retail Group. The performance results and expectations The key financial indicators of X5 Retail Group (company as a whole) as of 2 and the first quarter of 213 according to IFRS are presented in the table below. Indicator 2 I qtr 213 Net revenue, billion roubles Net revenue growth, % 5.8% 8% LFL (revenue), % (1.4%).5% LFL (average receipt), % (.9%) 2.5% LFL (traffic), % 9.4% (2.1%) Gross profit, billion roubles Gross margin, % 23.6% 24.4% Net profit, billion roubles (3.933) 1.98 Net profit margin, % - 1.6% EbitDA, billion roubles EbitDA profit margin, % 7.1% 6.8 Data source: X5 Retail Group s data. 16 As it has come to be generally accepted by the international retailers the format of discounter should meet the one commodity - one demand rule. But it is important to emphasize that in Russia the discounter format, as such, is non-existent. At the same time the specialists of INFOLine IA would like to distinguish two sub of the convenience store format: soft discounters, for the of the number of the largest Russian players, such as Pyaterochka, Diksi, Magnit, Monetka, Kopeika, Maria-Ra and others, and convenience stores. In this section we are using the term of a convenience store meaning a soft discount store. 19

20 Net debt of X5 Retail Group, according to results of 2, came up to billion US dollars, ration of net debt/ebitda 3.15x. Private label In May 213 the director for Private Label development of X5 Retail Group Andrey Kravets announced the company s plans to increase the share of PL in the product mix of all retail outlets of all company s. For instance, it is planned to bring the share of PL in the product mix of Pyaterochka to 5%, in Perekrestok to 25% and in Karusel to %. As of May 213, the share of PL in Pyaterochka comes to about 2%, in Perekrestok about % and in Karusel about 5%. X5 Retail Group develops multiformat brands, such as Krasnaya Tsena (The Very Best Price), Ice Age, Charlize, Romashkino, Global Village and others. Co-operation with suppliers In the end of May 213 Karusel hypermarkets began sales of Georgian mineral water Borjomi. According to the representative of X5 Retail Group, Vladimir Rusanov, at present there are no any other retailers in Russia selling Borjomi. Also he informed that in June this mineral water was to appear in other chains of X5 Retail Group in Pyaterochka and Perekrestok. The price for a.5 liter glass bottle in all Karusel hypermarkets in Moscow region comes to 59.9 roubles. It should be reminded that X5 Retail Group and IDS Borjomi have a common shareholder Alpha Group. It became known about the purchase of the mineral water producer s share by Alpha in the end of 2. Corporative events In May 213 it became known that X5 Retail Group proposed to banks to take part in a syndicated loan for approximately 1 billion dollars, which could help to restructure more than 25% of the debt. The loan, supposedly, is to be structured as a club deal. According to the sources inside X5 Retail Group the funds are needed for refinancing of the short-term debt, which, as of the end of 2, came up to 1.68 billion dollars. Research (full version) consists description by largest FMCG chains in Russia: X5 Retail Group N.V. (Pyaterochka, Perekrestok, Karusel and Perekrestokexpress); Magnit, JSC (Magnit, Magnit Semeiny, Magnit-Cosmetic, Rouge retail chains); Auchan Groupe (Auchan, Auchan-City, Nasha Raduga, real,- and Atac retail chains); Metro Group (METRO, METRO Punct and real- retail chains); GC DIKSI, JSC (Diksi trading chain, Megamart, Minimart, Viktoria-kvartal, Deshevo, Semeynaya Kopilka, Viktoria, Kesh) ; O'KEY, LTD. (O KEY, O'KEY-Express retail chain); Lenta, LTD. (Lenta retail chain); Sedmoi Kontinent, JSC (Sedmoi Kontinent, Nash) The description of each network includes news according to sections: Chain development (operation results, plans of further development); The performance results and expectations (key financial results and plans); Investment activities; Private label (key private label of the chain, their development and plans to the future expansion); Resignations and appointments; M&A deals; New (introduce and/or plans on introduce new to the market); Logistics (opening new distribution centers, the level of supply centralization, etc.); Commissioning of the stores (during last month); Closing the stores (during last month); Co-operation with consumers (actions, loyalty programs, etc.); Co-operation with suppliers (working conditions with suppliers, new partners, etc.); Corporative events (other news by the chain (judicial proceedings, labor relations, etc.). 2