X5 Retail announces net retail sales and operational results for the Q4 and full year 2017

Amsterdam, 2018-Jan-23 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), today announces preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2017(1).

X5 Chief Executive Officer Igor Shekhterman said:

“X5 delivered strong growth in 2017 and showed we were able to achieve sustainable performance even in what continues to be a challenging macro environment. Decelerating food CPI has put a damper on retail sales growth throughout the year, with inflation growth reaching its lowest level in Q4. Real disposable income growth remained negative in 2017, and the recovery in consumer confidence slowed towards the end of the year.

“Despite these external challenges, we continued to deliver solid business growth: X5 once again expanded at the fastest pace among its public peers in Russia, and LFL traffic improved relative to the previous year, reaching 3.0% annual growth in 2017, compared to 2.5% growth in 2016. For the first time in the Company’s history, we added more than one million square metres of selling space.

“Looking ahead to 2018 and beyond, we remain committed to our core strategic goals and will continue on the path of rapid, efficient and profitable growth, with the aim of sustainably occupying the position of Russia’s food retail market leader.”

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

Andrey Vasin
Investor Relations Officer
Tel.:+7 (495) 662-88-88 ext. 21-456
e-mail: Andrey.Vasin@x5.ru

Source: X5 Retail Group N.V.

X5 to divest small-format convenience stores operating under the Perekrestok Express brand in Moscow

Moscow, 2017-Oct-17 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), plans to concentrate on its three major formats: Pyaterochka proximity stores, Perekrestok supermarkets and Karusel hypermarkets. The Company’s small-format convenience stores operating under the Perekrestok Express brand in Moscow will be put on sale. X5 has selected Renaissance Capital to assist with preparation of the deal. Perekrestok Express accounts for less than 1% of X5’s revenue.

X5 Retail Group CEO Igor Shekhterman said: “Convenience stores like those that Perekrestok Express operates in Moscow, which have a selling space of up to 200 sq m, certainly have potential. However, they represent a fairly narrow segment of Russia’s modern food retail market, in which proximity stores, supermarkets and hypermarkets occupy more than a 90% share. With our market share in these formats steadily growing, we have decided to focus our full attention on continuing to develop the customer value propositions of Pyaterochka, Perekrestok and Karusel, including in Moscow.”

This year, X5 has successfully bolstered its major retail formats, while also improving the quality of its store portfolio in Moscow. To achieve this, the Company has, among other things, leased over 100 premises that previously hosted Monetka and Sedmoi Kontinent stores. By the end of this year, these locations will reopen as Pyaterochka stores and Perekrestok supermarkets.

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

Andrey Vasin
Investor Relations Officer
Tel.:+7 (495) 662-88-88 ext. 21-456
e-mail: Andrey.Vasin@x5.ru

Source: X5 Retail Group

X5 Retail Group appoints Svetlana Demyashkevich as Chief Financial Officer

Moscow, 2017-Jun-26 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces that Svetlana Demyashkevich has been appointed as Chief Financial Officer effective from 29 June 2017. Dmitry Gimmelberg has decided to leave the Company, but will temporarily stay on as Advisor to the CEO in order to facilitate a smooth transition.

X5 Retail Group CEO Igor Shekhterman said:

“I would like to thank Dmitry Gimmelberg for his meaningful contribution to the further development of the Company’s financial management function, including improvements to controls and budgeting, as well as streamlining of the investment process.

Svetlana has multifaceted experience in financial management in the banking and corporate sectors. She has worked on setting up and improving the efficiency of business planning, reporting and financial control systems, while also developing successful cooperation with major international financial institutions. With her qualifications and personal qualities,Svetlana will be able to quickly find her place in the X5 team and contribute effectively to the achievement of our strategic goals.”

Svetlana Demyashkevich graduated with honours from the Financial University of the Government of the Russian Federation and is an ACCA qualified accountant. She audited financial institutions at PricewaterhouseCoopers, and was the Financial Controller at UNICEF Russia. Since 2005, Svetlana has held several senior positions at Alfa-Bank, including head of audit and IFRS reporting. She also created and led the financial control service, investor and rating agency relations, the business intelligence centre, and the centralised purchasing service. In her most recent post as Deputy CFO, Svetlana also chaired the tender committee and the credit committee for small- and medium-sized corporate clients, and was involved in the activities of the Boards of Directors of several of the bank’s subsidiaries.

Contact:

Oleg Poletaev
T​: +7 (495) 662-88-88, ext. 22-209

Source: X5 Retail Group

X5 partners with Acmero Capital and Marathon Group to develop universal retail centres at passenger transport hubs

Moscow, 2017-Jun-08 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, has made a trilateral partnership agreement with Acmero Capital, a private equity fund, and Marathon Group, an investment company, to develop state-of-the-art universal retail centres at passenger transport hubs (Passenger Service Centres, or PSCs).

The agreement was signed by X5 CEO Igor Shekhterman, Acmero Capital Senior Managing Partner Siman Povarenkin, and Marathon Group President Alexander Vinokurov. As part of the project, the parties expect to open around 600-1,000 PSCs at bus and railway stations, roadside facilities and airports across Russia by the end of 2021. PSCs will offer a selection of state-of-the-art services under one roof, including Pyaterochka grocery stores, pharmacies operated by Marathon Group, catering facilities by Acmero, ticket booths, parcel lockers, ATMs and payment terminals. The mix-and-match service format will be tailored to the needs of each specific location.

A geographic information system (GIS) in use at the Pyaterochka chain since 2014 will help choose the optimal location and the most economically viable format for each PSC.

“In Russia, an average of 50 million people use public transport daily. This passenger traffic is ripe for converting into retail sales. According to X5’s calculations, passengers at bus and railway stations may become important contributors to the traffic of grocery stores and catering facilities. The project is especially beneficial for smaller cities, where bus and railway stations are often big gathering areas, but do not have modern developed retail infrastructure” said Igor Shekhterman, CEO of X5.

“This is an exciting business idea and a retail format that guarantees demand and good development potential. In our highly mobile living environment, transport hubs attract multitudes of people, and the footfall matters as much for pharmacies as it does for stores and food courts. Marathon Group has all the expertise and resources required for a pharmacy operator in a large-scale project like this. In addition, we already have an extensive track record with Х5 Retail Group, so we are very confident about the success of this partnership” said Alexander Vinokurov, President of Marathon Group.

“This is an unjustly forgotten idea that is very much in line with our modern needs. It has the potential to fundamentally change the notions of convenience and travel in Russia. We are looking to breathe new life into old transport stations, which may involve construction of new facilities from scratch, for example, on major roads. This requires large-scale partnerships with transport infrastructure operators, and, importantly, the largest industry players have already shown their openness to cooperation and a proactive approach” said Siman Povarenkin, Senior Managing Partner at Acmero Capital.

Contact:

email: iro@x5.ru

Source: X5 Retail Group

 

X5 Retail Group and Internet Initiatives Development Fund announce retail partnership programme

Moscow, 2017-Feb-03 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), today ( 2 February 2017) announces a strategic retail partnership programme with the Internet Initiatives Development Fund (IIDF) to test early-stage innovative projects and implement the best solutions in its business processes.

Under the partnership, the IIDF will set up a special retail track within its accelerator programme to give participating start-ups the opportunity to road-test their business models and multiply their growth. Applications may be submitted by companies offering products and services that can help streamline and improve the traditional shopping experience, personalise customer service, optimise logistics and shopping space layout, and increase conversion rates through synergies between online and offline sales.

Start-up companies completing the IIDF accelerator programme will be able to attract RUB 2 million to RUB 25 million in investment from the fund, and will have access to advice from Russia’s largest food retailer and the opportunity to test their business ideas on X5’s anonymised database of more than 3 billion purchases.

X5 will also launch projects to adopt high-potential start-up solutions in its business processes. Accelerator programme graduates and some mature names from the fund’s portfolio with an established track record will be invited to take part. The key requirement is for start-up products and services to be complementary to X5’s business strategy.

X5 CEO Igor Shekhterman said:

“Working with the IIDF will enable us to test and apply early-stage innovations, and to find new and unconventional solutions to deliver on our own objectives of focusing on operational improvements across the entire chain from suppliers to stores.”

IIDF CEO Kirill Varlamov said:

“Strategic partnership with X5 gives a strong competitive edge to start-ups in IIDF’s portfolio. Working with X5 gives founders access to industry-leading expertise at the very earliest stages, lets them test hypotheses on X5’s big data to deliver a perfect product-market fit, and once the pilot projects are completed will give them a successful case-study of working with Russia’s largest offline retailer.”

Until recently, investments in retail-tech start-ups disproportionately lagged the retail segment’s contribution to GDP worldwide: in 2015, global retail turnover was USD 22.6 trillion, while the traditional retail sector’s investment in start-up solutions has been low for many years. Digitisation unlocks opportunities for retailers to tap into and gain ground in new segments, and to build up competitive strengths and operating performance, and retailers worldwide are increasingly investing in retail-tech start-ups.

According to CB Insights, funding of traditional retail technologies is increasing around the globe, while online shopping technologies are attracting less money. In 2016, in-store investments exceeded projections and exceeded USD 800 million. In the past two years alone, global investments in retail-tech start-ups totaled over USD 2.3 billion, according to research from Tracxn.

Start-up projects providing solutions applicable in retail are increasing in number and technological diversity. In IIDF’s three-year history, the number of start-ups in the fund’s funnel developing products or services that can be successfully adopted by retail already numbers in the thousands, with more than half having applied for investment in 2016.

Self-checkout services to eliminate queues, maximum customisation of the product basket, smart loyalty programmes based on analysis of individual shopping histories using big data and machine learning – these and many other technologies will give retailers more precise insight into individuals’ shopping habits and help them tailor their offerings in terms of product mix and customer experience.

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 31 December 2016, X5 had 9,187 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 8,363 Pyaterochka proximity stores, 539 Perekrestok supermarkets, 91 Karusel hypermarkets and 194 convenience stores. The Company operates 35 DCs and 2,318 Company-owned trucks across the Russian Federation.

For the full year 2015, revenue totalled RUB 808,818 mln (USD 13,268 mln), Adjusted EBITDA reached RUB 59,413 mln (USD 975 mln), and net profit for the period amounted to RUB 14,174 mln (USD 233 mln). In 9M 2016, revenue totaled RUB 739,491 mln (USD 11,443 mln), EBITDA reached RUB 56,361 mln (USD 872 mln), and net profit amounted to RUB 19,874 mln (USD 308 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.06%, treasury shares – 0.01%, free float – 37.64%.

Forward looking statements:

This announcement includes statements that are, or may be deemed to be, “forwardlooking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking 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

Andrey Vasin
Investor Relations Officer
Tel.:+7 (495) 662-88-88 ext. 21-456
e-mail: Andrey.Vasin@x5.ru

Source: X5 retail group

SIA International Ltd. to open 3,300 A-MEGA discounter and DA ZDOROV pharmacies in X5 stores by the end of 2020

Moscow, 2016-Sep-24 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, announces it has entered into a 10-year partnership agreement with SIA International Ltd., a major pharmaceutical distributor. The agreement gives priority rights for opening pharmacies in X5 stores at market sublease rates. The project aims to open at least 3,300 pharmacies in Pyaterochka, Perekrestok, and Karusel stores by the end of 2020. The shareholders of SIA International Ltd. plan to invest up to RUB 6 billion into the project.

The partnership creates synergies between X5 Retail Group’s stores and the lessee, helping to boost traffic and conversion, while customers will gain access to additional services. SIA International Ltd. will open pharmacies at X5 stores under the A-MEGA discounter brand and DA ZDOROV brand, which targets middle class customers. The pharmacies will offer 8,000 SKUs and range in size from 20 to 200 sq m. They will be located near checkouts in Perekrestok, Pyaterochka, and Karusel, and in Pyaterochka’s shopping area (shop-in-shop model).

By late 2016, SIA International Ltd. plans to open over 170 pharmacies in the Moscow metropolitan area at premises leased from X5. Going forward, the Company seeks to expand across the geographies where Pyaterochka, Perekrestok, and Karusel operate. Since July 2016, 57 pharmacies were already opened as part of a pilot project. Andrey Gusev, who previously developed the Rigla and A5 chains, will coordinate the project on behalf of SIA International Ltd.

X5 CEO Igor Shekhterman commented:

“Cooperation with one of Russia’s pharmaceuticals distribution majors is in line with the Group’s partnership strategy to provide priority additional services, which helps to create a comprehensive product and service offering across X5 stores.”

“I see synergies resulting from the combination of our experience and mature dedicated logistics services, with X5 Retail Group’s rapid deployment of new stores, stable traffic, and target audience segmentation that is fully in line with our pharmacy formats,” said Sergey Piven, President at SIA International Ltd.”

Contact:

Tel: +7 (495) 662-88-88, +7 (495) 789-95-95
Fax: +7 (495) 662-88-88, ext. 61-145

Source: X5 Retail Group

X5 Retail Group N.V. announces preliminary consolidated Q4 and FY net retail sales and operational results ended 31 December 2015

FY 2015 Highlights

  • X5 delivered total net retail sales growth of 27.3% year-on-year (y-o-y), the Company’s fastest pace of growth since 2011.
  • Net retail sales growth of RUB 172.2 bln was the highest in X5’s history.
  • Net retail sales growth was driven by a 13.7% increase in like-for-like (LFL) sales and a 13.6% sales growth contribution from a 29.6% rise in selling space.
  • LFL sales growth (y-o-y) improved across all three of the Company’s major formats.
  • LFL traffic growth accelerated to 2.3% in 2015, up from 0.6% in 2014.
  • The Company added a record 1,537 new stores in 2015, vs. 939 stores in 2014.
  • Net additional selling space of 760.9 th. sq. m., driven primarily by organic expansion, was the largest annual opening programme delivered by X5.
  • X5’s proximity store chain Pyaterochka added 668.4 th. sq. m. of net selling space, a record for any Russian food retail brand in a single year.

Q4 2015 Highlights

  • Total net retail sales growth remained strong at 26.3% y-o-y, while decelerating slightly vs. Q3 2015 due to slowing food price inflation and a higher comparative base, especially vs December 2014.
  • Pyaterochka was the main driver of growth in Q4 2015: Net retail sales rose by 32.8% y-o-y, driven by 12.6% growth in like-for-like (LFL) sales and a 20.2% contribution to sales growth from a 38.1% increase in selling space.
  • In Q4 2015, the Company demonstrated strong LFL traffic growth of 2.3% y-o-y, compared to a decline of 0.4% in Q4 2014 and growth of 1.6% in Q3 2015.
  • X5 added 508 net new stores in Q4 2015, contributing to additional net selling space of 253.5 th. sq. m. in the quarter.

Amsterdam, 2016-Jan-26 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces its preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2015(1) .

Chairman of the Supervisory Board Stephan DuCharme said: “Despite a challenging economic environment in Russia, we delivered a strong set of numbers in 2015 and grew faster than the Russian food retail market average. We are especially proud of our 29.6% year-on-year rise in selling space: the Company added 760.9 th. sq. m. during 2015, 80% of which was attributable to organic growth. This is a truly impressive feat not only in terms of year-on-year expansion, but also measured by the absolute volume of space added.

“Growth in selling space, combined with continued adjustments to our value proposition for customers, particularly in the current environment, helped to make 2015 our best year since 2011 in terms of retail sales growth, and our best ever year for organic growth: 2015 net retail sales increased by 27.3% year-on-year, with like-for-like sales up to 13.7%.”

Chief Executive Officer Igor Shekhterman added: “Looking forward to 2016, we feel that we have the right strategy and the right team in place to tackle the challenges that lie ahead. We delivered excellent performance in a challenging 2015, and I am confident we will continue to achieve strong growth based on creating value for our customers as we build the best modern retail offering in Russia.”

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 31 December 2015, X5 had 7,020 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 6,265 Pyaterochka proximity stores, 478 Perekrestok supermarkets, 90 Karusel hypermarkets and 187 convenience stores. The Company operates 35 DCs and 1,561 Company-owned 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 9M 2015, revenue totaled RUB 578,701 mln (USD 9,763 mln), EBITDA reached RUB 41,780 mln (USD 705 mln), and net income amounted to RUB 12,084 mln (USD 204 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.06%, treasury shares – 0.02%, free float – 37.64%.

Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forwardlooking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking 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.

FULL PRESS RELEASE

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

X5 Retail Group now with 7,000 stores in Russia

Krasnodar, 2015-12-22 — /EPR Retail News/ — X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of its 7,000th store in Russia and a more than 1.5x year-on-year increase in the expansion rate of its retail chains. Since the beginning of the year, X5 has opened more than 1,500 Pyaterochka, Perekrestok and Karusel stores, compared to 939 new stores in 2014.

Igor Shekhterman, X5 Retail Group CEO, said:

“In 2015 we significantly accelerated organic growth rates, and are proud to open our 7,000th store today. By expanding the Company’s geographic presence, we maintain our focus on creating the best value offer for customers while developing ties with Russian suppliers.”

X5’s 7,000th store is a Pyaterochka in Krasnodar (65 Rossiyskaya St.). This is the second time this year that a new Pyaterochka has been opened as a “milestone store”. In late March, X5 opened a new Pyaterochka in Lyubertsy, marking the Group’s 5,555th store. In July 2015, X5 opened its 6,000th location, a Perekrestok store on Bolshaya Dorogomilovskaya St., Moscow; in November 2015, the Group launched its 6,555th facility, a Karusel hypermarket in Nevinnomyssk (Stavropol region).

The new Pyaterochka store opened today will have an assortment of over 4,000 SKUs, and 35% of this falls into fresh categories. The store’s total area is over 600 sq m, in line with the new Pyaterochka concept launched in October 2013. The new concept has already been rolled out at over 60% of Pyaterochka stores.

Yea-to-date, X5 has opened more than 1,500 stores in Russia, creating over 14,500 new jobs. Significant growth in X5’s retail chains has also increased sales opportunities for Russian suppliers, whose share in the product mix offered by Х5 retail chains exceeds 90%.

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 September 2015, X5 had 6,512 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 5,795 Pyaterochka proximity stores, 451 Perekrestok supermarkets, 84 Karusel hypermarkets and 182 convenience stores. The Company operates 34 DCs and 1,393 Company-owned 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 9M 2015, revenue totaled RUB 578,701 mln (USD 9,763 mln), EBITDA reached RUB 41,780 mln (USD 705 mln), and net income amounted to RUB 12,084 mln (USD 204 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.05%, treasury shares – 0.02%, free float – 37.64%.

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

Leading Russian food retailer X5 Retail Group announces the opening of its 7,000th store in Russia

Krasnodar, RUSSIA, 2015-12-17 — /EPR Retail News/ — X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the opening of its 7,000th store in Russia and a more than 1.5x year-on-year increase in the expansion rate of its retail chains. Since the beginning of the year, X5 has opened more than 1,500 Pyaterochka, Perekrestok and Karusel stores, compared to 939 new stores in 2014.

Igor Shekhterman, X5 Retail Group CEO, said:

“In 2015 we significantly accelerated organic growth rates, and are proud to open our 7,000th store today. By expanding the Company’s geographic presence, we maintain our focus on creating the best value offer for customers while developing ties with Russian suppliers.”

X5’s 7,000th store is a Pyaterochka in Krasnodar (65 Rossiyskaya St.). This is the second time this year that a new Pyaterochka has been opened as a “milestone store”. In late March, X5 opened a new Pyaterochka in Lyubertsy, marking the Group’s 5,555th store. In July 2015, X5 opened its 6,000th location, a Perekrestok store on Bolshaya Dorogomilovskaya St., Moscow; in November 2015, the Group launched its 6,555th facility, a Karusel hypermarket in Nevinnomyssk (Stavropol region).

The new Pyaterochka store opened today will have an assortment of over 4,000 SKUs, and 35% of this falls into fresh categories. The store’s total area is over 600 sq m, in line with the new Pyaterochka concept launched in October 2013. The new concept has already been rolled out at over 60% of Pyaterochka stores.

Yea-to-date, X5 has opened more than 1,500 stores in Russia, creating over 14,500 new jobs. Significant growth in X5’s retail chains has also increased sales opportunities for Russian suppliers, whose share in the product mix offered by Х5 retail chains exceeds 90%.

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 September 2015, X5 had 6,512 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 5,795 Pyaterochka proximity stores, 451 Perekrestok supermarkets, 84 Karusel hypermarkets and 182 convenience stores. The Company operates 34 DCs and 1,393 Company-owned 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 9M 2015, revenue totaled RUB 578,701 mln (USD 9,763 mln), EBITDA reached RUB 41,780 mln (USD 705 mln), and net income amounted to RUB 12,084 mln (USD 204 mln).

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.05%, treasury shares – 0.02%, free float – 37.64%.

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

Igor Shekhterman to succeed Stephan DuCharme as CEO X5 Retail Group N.V.

Amsterdam, 2015-9-11 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), today announced that Stephan DuCharme has decided to step down as CEO of X5 having successfully completed X5’s turnaround. He will return to the Company’s Supervisory Board (the “Board”) as its Chairman, subject to his nomination as a Board member being approved by the Company’s shareholders at an extraordinary general meeting (“EGM”) to take place in November this year. The Board has nominated Igor Shekhterman, currently member of the Board, to succeed Stephan as CEO of the Company.

Stephan has over the last three years led the implementation of X5’s new operating model, the renewal of its three retail formats based on refreshed value propositions, the accelerated rampup of new trading space delivery and the formation of a strong senior management team. Stephan and Igor have worked together closely over this period, in particular with regard to building the current leadership team. Stephan previously served on the Board from 2008-2012. The Board is confident that Stephan’s appointment as Chairman offers shareholders and other stakeholders the greatest continuity.

Stephan DuCharme, CEO, commented: “I am proud that with my team we have been successful in returning X5 to a pathway of strong and sustainable growth. I am pleased and honored to transition to a new role as future Chairman of the Supervisory Board. In this role I look forward to guiding, supporting and encouraging X5 in its aim for sustainable market leadership within the unique Russian food retail landscape. As Chairman I will focus on strategic issues such as exploring further growth opportunities for the Company, key partnerships and engagement with shareholders.”

Igor has been a member of the Board and Chairman of its Nomination and Remuneration Committee since 2013. In this capacity he has played an active role in the formation of the current X5 senior management team, based on a deep understanding of X5 and its business needs. Igor has been Managing Partner and CEO in RosExpert, which he co-founded in 1996 and has subsequently successfully developed into the Russian alliance partner of Korn Ferry.

Stephan and Igor are working hand-in-hand over a three-month transition period to ensure a smooth and seamless transition, continuity of X5’s operating model and culture, as well as avoidance of any distraction as X5 pursues its objective of accelerated, sustainable and profitable growth. They will also ensure clear communication with employees, shareholders and other stakeholders during this period.

Dmitry Dorofeev, Chairman of the Board, commented: “Stephan became CEO of X5 Retail Group at a moment when the Company faced important challenges. He initiated a process of re-positioning the Company to take advantage of the unique opportunity in Russian food retail, and the current results demonstrate the success of the transformation. I would like to join my fellow Board members in thanking Stephan for his contribution. Recognising and respecting Stephan’s decision to step down as CEO, the Board welcomes the fact that he will continue to be closely associated with X5’s ongoing development in his capacity as Chairman.

Igor is highly familiar with the Company’s strategy and affairs having served on the Board for the past two years. We are confident that under his future executive leadership the senior management team will continue to execute on our strategy of maximizing retail customer satisfaction and delivering shareholder value for X5 Retail Group.”

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: a chain of proximity stores under the Pyaterochka brand, a supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand, as well as 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 Company-owned trucks across the Russian Federation.

For the full year 2014, revenue totalled 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 totalled 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 forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking 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

Elena Konnova
Corporate Communications Director
Tel.: +7 (495) 662-8888 ext. 41303
e-mail: Elena.Konnova@x5.ru