Building the leading online grocery & FMCG marketplace in Russia
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Building the leading online grocery & FMCG marketplace in Russia
The company at a glance 03
Market and competition 07
How the company works 10
Recent developments and future growth 21
2
SberMarket delivers high growth in terms of GMV, orders,...
SberMarket GMV, RUB bn YoY growth, x # of Orders Delivered, mn YoY growth, x
6х 15х 11х 10х 7x 6х 17х 16х 15х 9x
3.5
10.0
2.8
8.9
5.1 1.4
1.3
4.4
1.5 0.4
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21
3
…customers, retailers and FMCG brands
Monthly Customers*, #k Retailers**, #
12x YoY
7x YoY
61
580 60
55
31
5
494 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21
FMCG Brands**, #
8x YoY 300
258
228
160
115
79 38 64
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21
*average over the period. Monthly Customers - unique buyers who placed an order on our platform within one month 4
**at the end of the period
Mission and Vision
Mission
To save time and money for
our customers so that they can
spend it on more important
things
Vision
30 million Russian households
trust SberMarket to deliver their
groceries and essentials
5
The company at a glance 03
Market and competition 07
How the company works 10
Recent developments and future growth 21
6
Russia’s online grocery market is still in its infancy...
Online grocery market in Russia, Share of online in food retail market by country 2020E,
10.1%
RUB bn %
+46% 25%
2,836
CAGR
22%
4.5%
3.5%
939 12%
2.6% 10% 10%
704
1.6%
500
0.8% 4.5%
0.3%
295 3.0%
155
43 0.8%
2019 2020 2021E 2022E 2023E 2024E 2030E
Share in food retail market, %
2024E 2030E
7
Source: Infoline Source: Mercatus, ONS, Bureau of Economic Analysis, Statista
...and quite fragmented in terms of competition
Top e-grocery players’ GMV 2020, RUB bn Key segments and players
Sber Ecosystem
Scheduled
SberMarket 19.8 24.3 Delivery
e-grocery only 24.0 2,000-6,000 RUB
21.9
90-120 min
16.4
14.9
12.6 Express
delivery
11.9
500-1,500 RUB
7.9
4.0 20-60 min
Source: Infoline, Yandex 4Q conference call Scaling in 3Q-4Q
8
The company at a glance 03
Market and competition 07
How the company works 10
Recent developments and future growth 21
9
The marketplace is attractive operating model, with ability to
grow and scale rapidly
There are several business models... …each with a unique set of features
Light asset model (low CAPEX)
Marketplace
Same or lower prices compared to offline stores
Wide assortment of hypermarkets and supermarkets
30-90 min Couriers
● National retailers Margins depend on take rate from retailers
● Local supermarket chains
Asset heavy (1P delivery & warehouses)
Dark Stores /
Offline Stores Same or higher prices compared to offline stores
Central Limited assortment of dark stores and supermarkets
Fulfilment
20-60 min Center ● Small local stores High margins due to stock management
● Small dark stores 100-150 sq.m.
Asset heavy (1P delivery & warehouses)
Pureplay Same or higher prices compared to offline stores
Online
Central Wide assortment of fulfilment centers
120+ min Fulfilment Center High margins due to stock management 10Clear customer value proposition
Vast Hyper/supermarket ● 7 of the top 10 retailers
assortment prices and assortment ● 54 of the next 90 retailers
● Often with offers of free delivery
Lowest Offline promo and ● Online prices are lower than on-the-shelf offline prices
prices regular prices in online due to direct contract with FMCG companies and
logistics optimization
Fast and ● Delivery within 90 min from hypermarkets
convenient Variety of options ● Delivery within 30 min from supermarkets
● Click & collect (buy online, pick up at store)
service
11Seamless customer experience delivered by the top-notch
development & product team
Users
Development team headcount*, #
600
355
170
57
48
Dec-19 Jun-20 Dec-20 Jun-21E Dec-21E
*at the end of period 12Focus on daily needs of mass market audience of 55 million
households across Russia
Geo, % Gender, %
63%
Regions
78%
Women
share in GMV
37%
Moscow & MO
22%
Men
share in GMV
Segment, % Age, %
55 5
Proximity Stores
13Covering 100% of grocery & FMCG needs with over 700k unique
SKUs in 61 retailers
Model Sector Food Non-Food*
Scheduled
90 min
SKUs — 435k Retailers — 49 SKUs — 184k Retailers — 12
Express
30 min
SKUs — 32k Retailers — 5 SKUs — 45k Retailers — 8
Click & collect
SKUs — 237k Retailers — 16 SKUs — 5k Retailers — 2
*Children's Goods, Pet Supplies, Health and Beauty, Home and Decor 14Efficient fulfilment process and well-trained pickers & couriers
Distinctive buying experience with high customer satisfaction SberMarket has achieved its highest ever
customer rating of 4.89 (out of 5)...
4.87 4.89
4.84
4.77
4.74 4.75
Jan-20 Mar-20 Jun-20 Sep-20 Dec-20 May-21
...and efficiency in order picking time (min)
48
44
Convenient Careful Fast
41 41
ordering process picking delivery
39
37
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21
15Increasing sales and EBITDA for retailers...
Complementary expertise from both sides... ...and EBITDA growth
Revenue +10%
...from SberMarket ...from Retailers
Last Mile Delivery Inventory Management Before + SberMarket After
Analytics & Data Mining Supplier Relationship Gross Profit +4%
Product Development Store Operations
Content Working Capital Management
Before + SberMarket After
B2B Sales Retro Bonuses
EBITDA +13%
Online Marketing Distribution Management
CRM Wholesales Logistics
Before + SberMarket After
16…as well as providing white-label solutions
Metro C&C online store by SberMarket Benefits for retailers
Additional order channel with 0 investments
Efficient work with both b2c and b2b customers
Valuable information about offline on-shelf
availability
17Attractive advertising platform for brands with high
personalization and ROI
Number of brands working with 400
SberMarket, #
Advertising Platform
“Google Adwords”
● Special banner ads and search
200
160
115
Personalization
“Netflix”
64
38 ● Personalized promos and coupons
1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 5М’21
18HOW INSTAMART WORKS
Clear and solid monetization model with diversified revenue
streams
Retailers take rate Delivery fee Marketing & data revenue
%
● Take rate from retailers ● Different pricing for light/heavy orders ● Marketing and data revenue from FMCG
brands
● Surge delivery pricing to balance
supply/demand
19The company at a glance 03
Market and competition 07
How the company works 10
Recent developments and future growth 21
20SberMarket is on track for over 3x YoY GMV growth in 2021
GMV*, RUB mln Growth YoY, times SberMarket also grew in 2020...
3x 3x 11x Over 3x
...14x YoY in orders delivered:
from 0.4 mln to 5.9 mln
...12x YoY in available retailers:
from 5 to 60
19.8 ...9x YoY in available cities:
from 17 to 147
0.6 1.9
2018 2019 2020 2021E
21
*Net of promo, incl. VATFocusing on fast and convenient delivery for customers as well
as mutually beneficial partnership with retailers and brands
The main company focus in 2021
Fast and Convenient Vast Lowest
Service Assortment Prices
Delivery within 90 min from #1 technology partner #1 technology partner
Key hypermarkets for retailers for brands
Milestones
Delivery within 30 min from 70 out of top-100 40 out of top-50 FMCG
supermarkets retailers work with us producers work with us
22Fast delivery from supermarkets is one of the key drivers
The maximum number of supermarkets and local stores
City is splitted into small zones
in each zone
Бетховен
У Палыча
Подружка
ВкусВилл
Мираторг
Дочки-сыночки
23Customer acquisition and retention supported by Sber
subscription model (Prime) and loyalty program (Spasibo)
Ecosystem customer base Prime customer base Prime Subscription Value Proposition
Special promo offers for clients
Exclusive discounts for Prime subs
Clients
SberSpasibo as a loyalty program
Clients with
SberMarket Prime client is more lucrative...
12% higher ARPU than non-prime
Clients
66% higher order frequency
Best retention among all cohorts
24Operational efficiency and new revenue streams empowered
by Sber ecosystem
Operational New revenue
efficiency channels
Pay
ID
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