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Russian food retailer X5 Retail Group acquires 100 stores owned by the Soseddushka retail chain in Orenburg and the Orenburg region

Orenburg, Russia, 2015-7-27 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer (LSE ticker: “FIVE”), announces the acquisition of 100 stores owned by the Soseddushka retail chain in Orenburg and the Orenburg region. This will increase X5’s presence in the region almost threefold.

The total area of the stores acquired by X5 Retail Group is close to 63,000 sq m, and total retail space is 36,700 sq m. Of the 100 stores, 61 are located in Orenburg and the rest are in the Orenburg region. The majority of the stores (96) will be re-branded as part of the Pyaterochka retail chain, while the remaining ones will become Perekrestok supermarkets. X5 expects to complete integration of the new assets in November 2015.

The newly acquired facilities will be refurbished in line with the new Pyaterochka and Perekrestok concepts. The chains intend to expand the new stores’ fresh offering (fruits, vegetables, meat, fish, and dairy), thereby strengthening X5’s cooperation with local suppliers. In terms of pricing, Pyaterochka and Perekrestok target all social groups, frequently offering attractive promotions and seasonal discounts.

X5 entered the Orenburg and the Orenburg region market last year, opening its first Pyaterochka store in Orenburg in February 2014. Before this transaction, X5 had 54 Pyaterochka stores and one Karusel hypermarket in the region. The nearest distribution centres servicing X5 retail chains in the region are located in Samara. Under the terms of the transaction, the Group gains the right to use Soseddushka’s existing Orenburg distribution centre for supplying products to its stores.

Note to Editors:
X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘Ba3’, S&P – ‘BB-’) is a leading Russian food retailer. The Company operates several retail formats: the chain of proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores under various brands.

As of 30 June 2015, X5 had 5,971 Company-operated stores. It has the leading market position in both Moscow and St. Petersburg and a significant presence in the European part of Russia. Its store base includes 5,273 Pyaterochka proximity stores, 438 Perekrestok supermarkets, 83 Karusel hypermarkets and 177 convenience stores. The Company operates 35 DCs and 1,364 Companyowned trucks across the Russian Federation.

For the full year 2014, revenue totaled RUB 633,873 mln (USD 16,498 mln), EBITDA reached RUB 45,860 mln (USD 1,194 mln), and profit for the period amounted to RUB 12,691 mln (USD 330 mln). In Q1 2015, revenue totaled RUB 182,725 mln (USD 2,938 mln), EBITDA reached RUB 13,129 mln (USD 211 mln), and net income amounted to RUB 4,110 mln (USD 66 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.05%, treasury shares – 0.01%, free float – 37.64%.

Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forwardlooking statements can be identified by the fact that they do not only relate to historical or current events. Forwardlooking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal”, “believe”, or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.’s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.

For further details please contact
Maxim Novikov
Head of Investor Relations
Tel.: +7 (495) 502-9783
e-mail: Maxim.Novikov@x5.ru

Anastasiya Kvon
IR Director
Tel.: +7 (495) 792-3511
e-mail: Anastasiya.Kvon@x5.ru

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