X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 12

STRATEGIC REPORT

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FINANCIAL REVIEW

90

Lease/sublease and other income

As a percentage of revenue, the Company’s income 
from lease, sublease and other operations under IFRS 
16 increased by 19 b.p. year-on-year, totalling 1.1% 
(increased by 16 b.p. year-on-year totalling 1.0% under 
pre-IFRS 16), reflecting an increase in revenue from 
sales of recyclable materials on the back of improved 
efficiency of internal processes.

EBITDA analysis

EBITDA under IFRS 16 in 2021 grew year-on-year by 
9.9% and totalled RUB 267,850 million (grew by 10.9% 
and totalled RUB 161,024 million pre-IFRS 16), while 
EBITDA margin under IFRS 16 decreased by 17 b.p. 
year-on-year to 12.1% (decreased by 3 b.p. to 7.3% 
pre-IFRS 16).

EBITDA analysis by segment

Upon adoption of IFRS 16, the Management Board 
continued to assess the performance of the 
Company’s operating segments based on a measure 
of sales and adjusted EBITDA pre-IFRS 16, as it more 
accurately reflects the true nature of the Company’s 
business and retail formats.

Pyaterochka (pre-IFRS 16) 

RUB MLN

2021

2020

% CHANGE,

Y-O-Y

Revenue

1,795,018

1,598,315

12.3

EBITDA

145,350

129,268

12.4

EBITDA margin, %

8.1

8.1

1 b.p.

Pyaterochka’s EBITDA margin remained flat at 8.1% on 
the back of express delivery expansion, increasing 
corporate overheads and logistics costs.

Perekrestok excluding Vprok.ru Perekrestok 
(pre-IFRS 16)

RUB MLN

2021

2020

% CHANGE,

Y-O-Y

Revenue

351,100

309,460

13.5

EBITDA

24,213

22,116

9.5

EBITDA margin, %

6.9

7.1

(25) b.p.

Perekrestok’s EBITDA margin decreased by 25 b.p. 
year-on-year in FY 2021 to 6.9% mainly due to higher 
share of express delivery services and higher allocated 
corporate overheads.

Other segments: Karusel, Vprok.ru 
Perekrestok, 5Post, Chizhik 
and Mnogo Lososya (pre-IFRS 16)

RUB MLN

2021

2020

% CHANGE,

Y-O-Y

Revenue

58,701

70,251

(16.4)

EBITDA

(4,375)

(2,409)

81.6

EBITDA margin, %

(7.5)

(3.4)

(402) b.p.

Most of the negative impact on the EBITDA of other 
segments is attributable to Vprok.ru Perekrestok, 
followed by Chizhik.

Corporate Centre (pre-IFRS 16) 
 

RUB MLN

2021

2020

% CHANGE,

Y-O-Y

EBITDA

(4,164)

(3,838)

8.5

Corporate expenses increased by 8.5% year-on-year 
in 2021.

STRATEGIC REPORT

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FINANCIAL REVIEW

91

Depreciation, amortisation and impairment 
costs

Depreciation, amortisation and impairment costs under 
IFRS 16 in 2021 totalled RUB 150,278 million 
(RUB 76,665 million pre-IFRS 16), decreasing as a 
percentage of revenue by 16 b.p. year-on-year to 6.8% 
(increasing by 2 b.p. to 3.5% pre-IFRS 16). This was 
mainly due to the optimisation of the refurbishment 
plan partially offset by increasing impairment.

Analysis of non-operating gains and losses 

Net finance costs under IFRS 16 in 2021 amounted to 
RUB 57,229 million, a 1.0% increase from 2020 (RUB 
16,569 million, a 0.3% decrease from 2020 pre-IFRS 16) 
driven by the increase in interest on lease liabilities. 
The decrease under pre-IFRS 16 is driven by the 
reduced weighted average effective interest rate on 
X5’s total debt from 6.78% for 2020 to 6.56% for 2021 
as a result of declining interest rates in Russian capital 
markets, the solid credit quality of X5 Group and 
actions taken to minimise interest expenses.  

The net FX result reflects the volatility of the rouble 
exchange rate, mainly due to revaluation of lease 
liabilities denominated in foreign currency (IFRS 16) 
and payables for imported goods (IFRS 16 and pre-
IFRS 16).  

Income tax expenses under IFRS 16 increased by 3.9% 
in 2021, reflecting business growth. In 2021, X5’s 
effective tax rate under IFRS 16 decreased to 29.6% 
from 37.9% in 2020 (decreased to 28.6% from 33.8% 
in 2020 pre-IFRS 16), driven by the high base effect of 
the previous year. 

Net profit in 2021 under IFRS 16 included one-off 
adjustments totalling RUB 1,875 million (RUB 1,810 
million pre-IFRS 16) related to the Karusel 
transformation (mainly due to impairment of non-
current assets). 

Non-operating gains and losses

RUB MLN

2021

2020

% CHANGE, 

Y-O-Y

2021

2020

% CHANGE, 

Y-O-Y

Operating profit

117,572

105,717

11.2

84,359

76,785

9.9

Operating profit margin, %

5.3

5.3

(1) b.p.

3.8

3.9

(6) b.p.

Net finance costs

(57,229)

(56,636)

1.0

(16,569)

(16,627)

(0.3)

Share of profit of associates

–

(20)

–

–

(20)

–

Net FX result

399

(3,391)

n/a

175

(913)

n/a

Profit before tax

60,742

45,670

33.0

67,965

59,225

14.8

Income tax expense

(18,004)

(17,326)

3.9

(19,452)

(20,045)

(3.0)

Net profit

42,738

28,344

50.8

48,513

39,180

23.8

Net profit margin, %

1.9

1.4

51 b.p.

2.2

2.0

22 b.p.

Effect of Karusel transformation and tax 
accrual related to X5’s reorganisation in 
previous periods

1,875

7,484

(74.9)

1,810

7,683

(76.4)

% of revenue

0.1

0.4

(29) b.p.

0.1

0.4

(31) b.p.

Adj. net profit

44,613

35,828

24.5

50,323

46,863

7.4

Adj. net profit margin, %

2.0

1.8

21 b.p.

2.3

2.4

(9) b.p.

IFRS 16

PRE-IFRS 16

STRATEGIC REPORT

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FINANCIAL REVIEW

92

Сash flow analysis

In 2021, the Company’s net cash from operating activities 
before changes in working capital under IFRS 16 increased 
by RUB 24,727 million, or 10.3%, year-on-year, totalling RUB 
265,528 million (increased by RUB 17,075 million, or 11.8%, 
totalling RUB 161,387 million pre-IFRS 16) and reflecting the 
overall growth of the business. Changes in working capital 
under IFRS 16 totalled 32,415 million in 2021 compared 
with RUB 2,247 million in 2020. Under pre-IFRS 16, 
changes in working capital in 2021 totalled RUB 32,244 
million compared with RUB 1,261 million in 2020. The 
positive change in working capital was driven by an 
increase in accounts payable due to increasing sales, 
measures taken to increase the efficiency of working 
capital and calendarisation.  

Net interest and income tax paid under IFRS 16 in 2021 
decreased year-on-year by RUB 13,007 million, or 15.6%, 
totalling RUB 70,481 million (decreased by RUB 13,651 
million, or 31.3%, totalling RUB 29,919 million pre-IFRS 16), 
a refund of advance income tax payments in Q3 2021.

As a result, in 2021 net cash flows generated from 
operating activities increased to RUB 227,462 million under 
IFRS 16 (RUB 163,712 million pre-IFRS 16), compared with 
RUB 159,560 million under IFRS 16 (RUB 102,003 million 
pre-IFRS 16) for the same period in 2020.  

Adj. net cash used in investing activities under IFRS 16, 
which generally consists of payments for property, plant 
and equipment, totalled RUB 89,435 million in 2021, 
compared with RUB 84,314 million (RUB 90,295 in 2021 
compared with RUB 84,314 million in 2020 under pre-IFRS 
16) in 2020. In addition, the Company made a short-term 
RUB 50,000 million cash deposit in Q4 2021. 

Net cash used in financing activities under IFRS 16 totalled 
RUB 81,890 million (RUB 17,280 million pre-IFRS 16) in 
2021, compared with RUB 73,805 million under IFRS 16 
(RUB 16,248 million pre-IFRS 16) in 2020. 

Consolidated cash flow

RUB MLN

2021

2020

% CHANGE, 

Y-O-Y

2021

2020

% CHANGE, 

Y-O-Y

Net cash from operating activities before 
changes in working capital

265,528

240,801

10.3

161,387

144,312

11.8

Change in working capital

32,415

2,247

1,342.6

32,244

1,261

2,457.0

Net interest and income tax paid

(70,481)

(83,488)

(15.6)

(29,919)

(43,570)

(31.3)

Net cash flows generated from operating 
activities

227,462

159,560

42.6

163,712

102,003

60.5

Adj. net cash used in investment activities

(89,435)

(84,314)

6.1

(90,295)

(84,314)

7.1

Net cash used in financing activities

(81,890)

(73,805)

11.0

(17,280)

(16,248)

6.4

Short-term financial investments

(50,000)

−

n/m

(50,000)

−

n/m

Effect of exchange rate changes on cash and 
cash equivalents

(83)

(35)

137.1

(83)

(35)

137.1

Net increase/(decrease) in cash and cash 
equivalents

6,054

1,406

330.6

6,054

1,406

330.6

IFRS 16

PRE-IFRS 16

Liquidity analysis

As of 31 December 2021, the Company’s total debt pre-
IFRS 16 amounted to RUB 294,338 million, 29.8% of which 
was short-term debt and 70.2% was long-term debt. The 
Company’s debt is 100% denominated in Russian roubles. 
As of 31 December 2021, the majority of X5’s debt had 
fixed interest rates.   

As of 31 December 2021, the Company had access to RUB 
482,263 million in available credit limits with major Russian 
and international banks. In addition, the Company has 
short-term deposit in the amount of RUB 50 billion as of 31 
December 2021.

Dividends

×

The Company’s Supervisory Board has made 
a recommendation not to pay the final dividend for 2021. 
The total dividend for the year will amount to RUB 20 
billion, or RUB 73.65 per GDR (compared with RUB 50 
billion / RUB 184.13 per GDR in 2020), which represents 
46.8% of X5 Group’s 2021 net profit (176.4% in 2020). 

The dividend policy was approved by the X5 Supervisory 
Board in September 2017 and amended in November 
2020. When considering a dividend recommendation to 
the General Meeting of Shareholders, the Supervisory 
Board is guided by a target consolidated net debt/
adjusted EBITDA  ratio of below 2.0 , in line with the 
Company’s financing strategy, and by the operating cash 
flow against the Company’s investment requirements for 
the upcoming calendar year.  

¹

Liquidity update

RUB MLN

31-DEC-21 % OF TOTAL

31-DEC-20 % OF TOTAL

31-DEC-19 % OF TOTAL

Total financial debt

294,338

261,947

227,933

Short-term borrowings

87,767

29.8

77,026

29.4

74,755

32.8

Long-term borrowings

206,571

70.2

184,921

70.6

153,178

67.2

Net debt (pre-IFRS 16)

268,276

241,939

209,331

Net debt/EBITDA (pre-IFRS 16)

1.67×

1.67×

1.71×

Adj. net debt (pre-IFRS 16)

218,184

241,939

209,331

Adj. net debt/EBITDA (pre-IFRS 16)

   1.35

   

×

1.67×

1.71×

Lease liabilities (IFRS 16)

577,363

548,501

484,795

Net debt/EBITDA (IFRS 16)

3.16×

3.24×

3.28×

Adj. net debt/EBITDA (IFRS 16)

2.97×

3.24×

   3.28

   

×

1 EBITDA shall be adjusted (decreased) by the amount that would have 

been recognised as operating lease, other store costs, third-party 
services and other expenses payable during the period, but which is not 
recognised as such under IFRS 16, as well as the amount of the net 
effect from the decrease in the scope of the lease and terminations of 
lease agreements and adjustment of gain/loss from sale of asset under 
sale and leaseback operations for the proportion of the rights retained  
recognised under IFRS 16.

STRATEGIC REPORT

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INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

93

Information on alternative 

performance measures

EBITDA (including EBITDA margin) 

Adjusted EBITDA (including adjusted EBITDA margin) 

In this report and other public disclosures, X5 Group presents certain alternative performance 
measures (APMs) that it believes provide readers with a more detailed and accurate understanding 
of the Company’s financial and operating performance. In accordance with European Securities 
Markets Authority guidelines, a list of definitions, explanations of the relevance of APMs, comparatives 
and reconciliations are provided below.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is a measure of the Company’s 
operating performance. It is a way to evaluate X5 Group’s performance exclusive of financing, 
accounting and taxation factors. X5 believes that showing EBITDA and EBITDA margin performance 
provides greater detail about the Company’s performance.

Adjusted EBITDA is a measure of the Company’s operating performance. It is a way to evaluate the 
Company’s performance exclusive of financing, accounting and taxation factors, and also excluding the 
effects of the LTI programme and the impact of the Karusel transformation, which do not represent 
ongoing costs of doing business. X5 believes that showing adjusted EBITDA and adjusted EBITDA 
margin performance provides a more accurate reflection of the Company’s sustainable performance.

RUB MLN

2021

2020

2021

2020

RUB MLN

2021

2020

2021

2020

Operating profit

117,572

105,717

84,359

76,785

Adjustments:

LTI, share-based payments and other one-off 
remuneration payments expense and SSC

3,011

345

3,011

345

EBITDA

267,850

243,622

161,024

145,137

Adj. EBITDA

271,023

244,501

164,197

146,016

EBITDA

267,850

243,622

161,024

145,137

Depreciation, amortisation and impairment

150,278

137,905

76,665

68,352

Effect of Karusel transformation

162

534

162

534

PRE-IFRS 16

PRE-IFRS 16

IFRS 16

IFRS 16

RUB MLN

2021

2020

2021

2020

Revenue

2,204,819

1,978,026

2,204,819

1,978,026

EBITDA margin, %

12.1

12.3

7.3

7.3

EBITDA

267,850

243,622

161,024

145,137

PRE-IFRS 16

IFRS 16

RUB MLN

2021

2020

2021

2020

Revenue

2,204,819

1,978,026

2,204,819

1,978,026

Adj. EBITDA

271,023

244,501

164,197

146,016 

Adj. EBITDA margin, %

12.3

12.4

7.4

7.4

PRE-IFRS 16

IFRS 16

Adjusted net profit (including adjusted net profit margin)

Adjusted SG&A (including adjusted SG&A as % of revenue)

Adjusted net profit is a measure of the Company’s profitability. It is a way to evaluate the Company’s 
performance exclusive of one-off factors, including the effect of the Karusel transformation and a tax 
accrual related to X5’s reorganisation in prior periods, which do not represent ongoing costs of doing 
business. X5 believes that showing adjusted net profit and adjusted net profit margin performance 
provides a more accurate reflection of the Company’s sustainable performance.

Selling, general and administrative expenses (SG&A) are reported on the income statement as the sum 
of all direct and indirect selling expenses and all general and administrative expenses of the Company. 
X5 Group reports adjusted SG&A, which excludes the effects of the LTI programme and share-based 
payments, the impact of the Karusel transformation as well as depreciation, amortisation and 
impairment. The Company believes that adjusted SG&A provides additional detail regarding the 
long-term SG&A costs of the business.

RUB MLN

2021

2020

2021

2020

Adjustments:

Effect of Karusel transformation and tax accrual 
related to X5’s reorganisation in previous periods

1,875

7,484

1,810

7,683

Adj. net profit

44,613

35,828

50,323

46,863

Net profit

42,738

28,344

48,513

39,180

PRE-IFRS 16

IFRS 16

RUB MLN

2021

2020

2021

2020

Revenue

2,204,819

 1,978,026

2,204,819

1,978,026

Adj. net profit

44,613

35,828

50,323

46,863

Adj. net profit margin, %

2.0

1.8

2.3

2.4

PRE-IFRS 16

IFRS 16

RUB MLN

2021

2020

2021

2020

Adjustments:

LTI, share-based payments and other one-off 
remuneration payments expense and SSC

(3,011)

(345)

(3,011)

(345)

Effect of Karusel transformation

(162)

(534)

(162)

(534)

Depreciation, amortisation and impairment

(150,278)

(137,905)

(76,665)

(68,352)

Adjusted SG&A

314,017

267,605

410,205

356,838

SG&A

467,468

406,389

490,043

426,069

PRE-IFRS 16

IFRS 16

RUB MLN

2021

2020

2021

2020

Revenue

2,204,819

1,978,026

2,204,819

1,978,026

Adjusted SG&A expenses as % of revenue

14.2

13.5

18.6

18.0

Adjusted SG&A

314,017

267,605

410,205

356,838

PRE-IFRS 16

IFRS 16

STRATEGIC REPORT

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INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

94

Adjusted net cash used in investing activities

Adjusted net cash used in investing activities is a measure of the Сompany’s cash generation or 
spending from various investment-related activities in a specific period. It is a way to evaluate the 
change in a Сompany's cash position from investment gains/losses and fixed asset investments. 
X5 believes that showing adjusted net cash used in investing activities provides a more accurate 
reflection of the Сompany’s performance. 

RUB MLN

2021

2020

2021

2020

Adjustments:

Adjusted net cash used in investing activities

89,435

84,314

90,295

84,314

Short-term financial investments

(50,000)

−

(50,000)

−

Net cash used in investing activities

139,435

84,314

140,295

84,314

PRE-IFRS 16

IFRS 16

Adjusted FCF

Adjusted free cash flow is a measure of the Сompany’s cash generation. It is a way to evaluate the 
Сompany’s cash generation after taking into consideration cash outflows that support its operations 
and maintain its capital assets. X5 believes that showing free cash flow adjusted for investments in 
short-term financial instruments provides a more accurate reflection of the Сompany’s performance. 

RUB MLN

2021

2020

2021

2020

Adjustments:

Investments in short-term financial 
instruments

50,000

−

50,000

−

FCF

88,027

75,246

23,417

17,689

Adjusted FCF

138,027

75,246

73,417

17,689

PRE-IFRS 16

IFRS 16

STRATEGIC REPORT

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INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

95

ROIC

ROIC is a measure of the Сompany's efficiency at allocating the capital under its control to profitable 
investments. It is a way to evaluate how well a Сompany is using its capital to generate profits.     

NOPAT

 82,724   

 65,611   

 60,215   

 50,797   

Invested capital (average equity + net debt)

884,229

 847,982   

 384,793   

 386,524

ROIC

9.4%

7.7%

15.6%

13.1%

2021

2020

2021

2020

PRE-IFRS 16

IFRS 16

Adjusted ROIC

Adjusted ROIC is a measure of the Company's efficiency at allocating the capital under its control 
to profitable investments adjusted for one-off effects and tax on investments. It is a way to evaluate 
how well a Company is using its capital to generate profits excluding one-off effects. X5 believes that 
showing adjusted ROIC provides a more accurate reflection of the Company’s performance.     

2021

2020

2021

2020

Adjustments:

NOPAT

 82,724   

 65,611   

 60,215   

50,797

Effect of Karusel transformation,  tax on investments 
and tax accrual related to X5’s reorganisation 
in previous periods

 7,739   

 17,647   

 5,439   

 11,412   

Adjusted NOPAT

 90,462   

 83,257   

 65,654   

 62,209   

Invested capital (average equity + net debt)

 884,229

 847,982   

 384,793   

 386,524   

Adjusted ROIC

10.2%

9.8%

17.1%

16.1%

PRE-IFRS 16

IFRS 16

Net debt/EBITDA

STRATEGIC REPORT

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INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

96

The net borrowings to earnings before interest depreciation and amortisation (EBITDA) ratio is a 
measurement of leverage. It is calculated as the Company’s long-term and short-term borrowings, 
minus cash and cash equivalents, divided by EBITDA. The net debt to EBITDA ratio is a commonly used 
indicator that provides additional clarification regarding the Company’s debt burden.

RUB MLN

31-DEC-21

31-DEC-20

31-DEC-21

31-DEC-20

Total debt, incl.:

294,338

261,947

294,338

261,947

Short-term borrowings

87,767

77,026

87,767

77,026

Lease liabilities

577,363

548,501

−

−

Long-term borrowings

206,571

184,921

206,571

184,921

Cash and cash equivalents

26,062

20,008

26,062

20,008

EBITDA

267,850

243,622

161,024

145,137

Net debt

845,639

790,440

268,276

241,939

Net debt/EBITDA

3.16×

3.24×

1.67×

1.67×

PRE-IFRS 16

IFRS 16

Adjusted net debt/EBITDA

The net borrowings to earnings before interest depreciation and amortisation (EBITDA) ratio 
is a measurement of leverage. It is calculated as the Company’s long-term and short-term 
borrowings, minus cash and cash equivalents and financial investments, divided by EBITDA. 
X5 Group reports adjusted net debt/EBITDA, which excludes the effect of short-term 
financial investments. X5 believes that showing adjusted net debt/EBITDA provides a more 
accurate reflection of the Company’s debt burden.

RUB MLN

31-DEC-21

31-DEC-20

31-DEC-21

31-DEC-20

Adjustments:

Net debt

845,639

790,440

268,276

241,939

Short-term financial investments

(50,092)

–

(50,092)

–

Adjusted net debt

795,547

790,440

218,184

241,939

EBITDA

267,850

243,622

161,024

145,137

Adjusted net debt/EBITDA

2.97×

3.24×

1.35×

1.67×

PRE-IFRS 16

IFRS 16

STRATEGIC REPORT

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INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

97

Net retail sales

Net retail sales shows the amount of sales generated by the Company after the 
deduction of revenue from franchise services, wholesale operations and other 
services. Because food retail is X5 Group’s core business, net retail sales is 
provided to give a clearer picture of the performance of the Company’s core 
business activity.

RUB MLN

2021

2020

Adjustments:

Revenue

 2,204,819

1,978,026

Revenue from wholesale operations and other services

(10,335)

(4,675)

Net retail sales

2,194,477

1,973,346

Revenue from franchise services

(7)

(5)

Like-for-like (LFL)

LFL comparisons of retail sales between two 
periods are comparisons of retail sales in the 
local currency (including VAT) generated by 
relevant stores. The stores that are included in 
LFL comparisons are those that have operated 
for at least 12 full months. Their sales are 
included in the LFL calculation starting from 
the day of the store’s opening.

We include all stores that fit our LFL criteria in 
each reporting period. This is a commonly used 
indicator in the retail industry that helps illustrate 
the sustainability of a company’s growth by 
focusing on the performance of stores that have 
already been operating for more than 12 months 
by removing the effect of new stores opened 
during the period.

%

2021

2020

Net retail sales growth

11.2

14.2

LFL

5.1

5.5

Less contribution from an increase in selling space

6.1

8.7