X5 launches Pyaterochka and Post Bank co-branded Visa card

Moscow, 2017-Aug-08 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), announces the launch of a co-branded Visa card by the Pyaterochka retail format and Post Bank (part of VTB Group), offering customers the combined benefits of the Helping Card loyalty programme with enhanced banking services. Clients can apply for the card at any Post Bank branch, with no issuance or service fees.

From 1 August 2017, the cards are available at over 1,500 Post Bank branches in the Northwestern and Central Federal Districts, where more than 5,000 Pyaterochka stores operate. Starting from September, the cards will be issued at the bank’s branches across the entire territory where Pyaterochka operates, including the Volga, Urals and Southern Federal Districts, and certain regions of the Siberian Federal District.

“The Pyaterochka loyalty programme is gaining momentum. In the first four months since its launch, more than 10 million Helping Cards have been activated, and the pace of growth remains high. This co-branded card with Post Bank gives participants of the loyalty programme additional benefits. Card holders will get points for all of their purchases, while earning three times as many points when shopping at Pyaterochka compared to the regular Helping Card. The pilot project in St Petersburg and the Leningrad region showed that Pyaterochka card holders visited our stores almost twice as often than they did before getting the card,” said Pyaterochka CEO Olga Naumova.

“The co-branded card with Pyaterochka is our first project of its kind. I am confident that Pyaterochka’s many customers will value the card and the benefits it offers. In addition to points for purchases, card owners gain a free savings account with monthly accruals at an annual interest rate of up to 7%,” said Grigory Babajanyan, Vice-President, Director for Retail Business Development at Post Bank.

The Pyaterochka loyalty programme gives participants points for any purchase with the Pyaterochka card. Purchases in Pyaterochka will return card owners 3 points for every 20 roubles if the ticket is up to 555 roubles or 4 points for every 20 roubles if the ticket is over 555 roubles. Moreover, card owners get Pyaterochka points (2 points for every 20 roubles) for purchases with the card in any other store, including online. When shopping in Pyaterochka, customers can then use these points to pay for up to 100% of the amount of their purchases at the conversion rate of 10 points per 1 rouble. Participants of the Helping Card loyalty programme can get the new co-branded Pyaterochka card from Post Bank and consolidate points under both programmes.

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 launches Pyaterochka’s Helping Card loyalty programme following successful completion of the pilot phase

Moscow, 2017-Jul-05 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer, announces the company-wide launch of Pyaterochka’s Helping Card (Vyruchai-Karta) loyalty programme following successful completion of the pilot phase. The programme uses a points-based system and personalised offers based on data about customer preferences.

The pilot programme was successfully completed in selected regions where Pyaterochka operates on 4 July 2017, and the Helping Card programme has now been fully launched in 38 regions of the Russian Federation[1], which represents 66% of the chain’s current territory. By the end of August 2017, Pyaterochka stores in every region where the chain operates will offer customers Helping Cards.

As a result of the pilot project, over 12 million Pyaterochka customers received loyalty cards and began using them, and around 7 million activated their cards by filling in an application online. To date, the new loyalty cards have been used for around 30% of purchases made in the regions where the Helping Cards programme was launched. According to the Company’s preliminary estimates, the loyalty programme may attract up to 30 million customers across Russia once it has been fully rolled out, which would mean that every second Pyaterochka shopper will use the card.

Pyaterochka CEO Olga Naumova said: “Pyaterochka’s pilot loyalty programme has been completed successfully. Our technology-based solution enables us to analyse large volumes of data and focus on our customers’ preferences by developing personalised offers. In addition, the programme’s infrastructure enables our suppliers to plan promos and marketing campaigns more effectively.”

Data on each customer’s shopping habits is stored in the loyalty programme database, and then used to automatically create personalised marketing offers such as extra points for buying certain goods or categories of goods, a multiple-based increase in points earned for purchases made during certain hours of the day, or a 10-fold increase in points on purchases made for the customer’s birthday.

Pyaterochka customers can receive a loyalty card for free with any purchase of RUB 555 or more, or may buy one at the checkout for RUB 25. The customer earns their first points when purchasing the card. Points are earned for buying any goods, including during promotions, with the exception of those offered at the minimum retail price for tobacco and alcohol products. Helping Card points can be earned even if the customer receives other discounts for a purchase, such as the 10% discount offered to pensioners or special offers for parents.

Points are earned and redeemed based on the following system: 1 point is granted for every RUB 20 or RUB 10, depending on the amount paid, and 10 points earn a RUB 1 discount when redeemed. In order to redeem the points and receive a discount, the customer must activate their card, or confirm their participation in the loyalty programme by sending an text message, via Pyaterochka’s call centre or online. The total discount may be for up to 100% of the ticket.

[1] – As of 4 July 2017, the Pyaterochka loyalty program has been operating in Moscow and the Moscow Region, in St. Petersburg and the Leningrad Region, in Bryansk, Murmansk, Novgorod, Pskov, Belgorod, Voronezh, Kursk, Lipetsk, Orel, Tambov, Kaluga, Ryazan, Smolensk, Tula, Kirov, Nizhny Novgorod, Samara, Saratov, Ulyanovsk, Orenburg, Penza, Astrakhan, Volgograd, Rostov regions, in the republics of Karelia, Komi, Mari El, Mordovia and Chuvashia, in Adygeya, Kalmykia and Karachay-Cherkessia, and also in the Krasnodar and Stavropol Territories.

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

RUSSIA: X5 Retail Group opens new distribution centre in Perm

Perm, 2017-May-19 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, announces the development of its Urals logistics infrastructure with the opening of a distribution centre (DC) in Perm.

The logistics facility of over 23,500 sq m will supply Pyaterochka stores in the Perm Region (currently more than 280 stores). Featuring five storage zones, each with a specific temperature band, the facility is designed to accommodate all categories of goods. This multi-format distribution centre is a key milestone in developing X5’s logistics infrastructure in the Urals, with the aim of optimising the number of DCs while also ramping up their capacity and capabilities.

The new logistics centre will ensure the freshness and availability of goods as Pyaterochka continues its active expansion, help to cut transportation costs, and unlock new opportunities for local producers. The Perm DC will be a focal point for local producers, enabling them to increase sales and bring their products to other regions. At full capacity, the DC will be able to process and handle products from over 350 local suppliers. The share of local producers in Pyaterochka’s product mix in the Perm Region is 22%, while in some categories (like bread and bakery) it reaches as much as 90%.

The logistics facility has increased the number of jobs provided by the Pyaterochka retail chain in the Perm Region by 230 to exceed 3,900 jobs.

The DC opening ceremony was attended by Deputy Prime Minister – Minister of Industry, Entrepreneurship and Trade of the Perm Region Alexey Chibisov and Pyaterochka CEO Olga Naumova. X5 Retail Group also invited managers from over 70 suppliers to take part in the ceremony. After the ceremony, the Perm DC hosted the X5 Dialogue Forum, where representatives of X5 Retail Group’s chain stores shared X5’s best practices in partnering with local suppliers and food producers. The local manufacturers received valuable advice on how to build relationships with retail chains, including information on product quality controls and requirements for transportation, storage, sales and disposal of food products set out in the Customs Union’s and X5’s relevant technical regulations.

X5 Retail Group views the development of logistics infrastructure as a strategic priority for the next few years. For the second year running, X5 leads the market by the number of DCs opened during the year. In 2015, X5 opened six new DCs with a total area of 142,000 sq m, while the area of the seven new DCs opened in 2016 totalled 212,000 sq m.

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

70 people in person and online audience attended X5 Retail Group’s capital markets day in Moscow

MOSCOW, RUSSIA, 2015-10-26 — /EPR Retail News/ — X5 Retail Group held its capital markets day (“CMD”) in Moscow.

The schedule for the CMD included:

  • Morning: store visits hosted by Format Heads
  • Afternoon: Presentations and Q&A sessions with the X5 Retail Group CEO, CFO, Format Heads, Business Development Head
  • Evening: dinner for all participants

Three members of the executive management team – CEO Stephane DuCharme, CFO Elena Milinova and Business Development Head Anton Mironenkov – presented on X5’s results and strategic progress, with a focus on how the Company is successfully adapting to changing market conditions.

They were followed by presentations from the Group’s Format heads: Olga Naumova (Pyaterochka), Vladimir Sorokin (Perekrestok) and Vardan Dashtoyan (Karusel)

Some 70 people attended in person, and in addition there was an online audience.

The presentations given during the course of the day can be downloaded here:

Download (PDF. 4.2 Mb)

SOURCE: X5 Retail Group N.V.

X5 Retail Group’s Pyaterochka and Railway Trading Company to open near 300 stores in Russia by the end of 2019

MOSCOW, 2015-9-4 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, announces the signing of a memorandum of cooperation between Pyaterochka, the Company’s proximity store chain, and Railway Trading Company (“RTC”). The joint project of launching of RTC-Pyaterochkabranded retail chain is intended to open near 300 stores in Russia.

Olga Naumova and Konstantin Danilov, the CEOs of Pyaterochka and Railway Trading Company, signed a memorandum of cooperation at the Fifth International Fair of Railway Equipment and Technologies EXPO 1520. Railway Trading Company plans to open five RTC-Pyaterochka stores by late 2015, and near 300 stores across Russia by the end of 2019. Implementation of this project is expected to create over 5,000 jobs.

The project is based on the reverse franchising model developed by X5. Under this model, Pyaterochka will be involved in the store launch and opening, as well as in comprehensive operational support, including repair and maintenance, equipment, IT solutions, staff training, logistics, advertising, marketing, etc. Railway Trading Company will be responsible for day-to-day management of the stores.

The average selling space of new stores will be 350 sq m, with a product mix that includes approximately 4,000 items.

Cooperation with Railway Trading Company is in line with Pyaterochka’s development strategy, which aims to achieve significant expansion of proprietary stores, while also allowing for cobranding projects with major geographically-diversified companies.

The partnership will also benefit Railway Trading Company by helping to improve service level for current and formers employees of Russian Railways, their family members, as well as passengers of the global railway leader.

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 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 H1 2015, revenue totaled RUB 382,608 mln (USD 6,666 mln), EBITDA reached RUB 27,518 mln (USD 479 mln), and net income amounted to RUB 7,942 mln (USD 138 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

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

X5 Retail Group’s proximity format Pyaterochka to enhance the effective use of real estate currently owned by Rostelecom

Moscow, 2015-3-12 — /EPR Retail News/ — X5 Retail Group N.V. (‘X5’ or the ‘Company’), a leading Russian food retailer (LSE ticker: ‘FIVE’), announced today the signing of a letter of intent (the ‘Letter’) between Pyaterochka, the Company’s proximity format, and Rostelecom.

Under the terms of the Letter, the parties will form a long-term partnership to enhance the effective use of real estate currently owned by Rostelecom. During the period from 2015 to 2017, Pyaterochka will be able to purchase or lease (under long-term contracts) real estate from Rostelecom to open approximately 300 new proximity stores with an average selling space of more than 350 square meters.

The redevelopment program will be rolled out across most of Rostelecom’s footprint in Russia, which spans 57 regions.

The first Pyaterochka store at a Rostelecom facility opened in Novocheboksarsk on 6 March 2014. The second store is slated for opening in April 2014 in the town of Semenov (Nizhny Novgorod Region).

Rostelecom is currently in the process of upgrading its technologies, which is increasingly reducing the space required to host equipment. Rostelecom’s real estate facilities are located all across Russia and consist mostly of production buildings in existing and established neighbourhoods of towns and cities.

One of the ways to optimize the under-utilized space is through redevelopment – property upgrade and renewal contributing to more effective use.

Vice-President for Administrative Issues OJSC Rostelecom Alexandr Abramkov:

“One of the options for optimization of under-utilized space is redevelopment. In this case the interests of Rostelecom and X5 coincide”.

General Director of Pyaterochka Olga Naumova:

“Pyaterochka is interested in additional opportunities for opening stores. This will create new jobs and offer consumers in different regions quality products at affordable prices. I am sure that our cooperation with Rostelecom on the redevelopment project will be mutually beneficial and positive for the customer”.

Note to Editors:
X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘B2’, S&P – ‘B+’) 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.

At 31 December 2014, X5 had 5,483 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 4,789 Pyaterochka proximity stores, 403 Perekrestok supermarkets, 82 Karusel hypermarkets and 209 Express stores. The Company operates 34 DCs and 1,438 Company-owned trucks across the Russian Federation.

For the full year 2013, revenue totaled RUB 534,560 mln, EBITDA reached RUB 38,350 mln, and net income amounted to RUB 10,984 mln. In 9M 2014, revenue totaled RUB 452,285 mln, EBITDA reached RUB 32,365 mln, and net income amounted to RUB 9,869 mln.

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.04%, treasury shares – 0.04%, free float – 37.63%.

OJSC Rostelecom (www.rostelecom.ru) is one of the biggest national telecommunications companies in Russia and Europe, with a presence in every segment of the telecommunications services market and coverage of more than 34 million households in Russia.

The Company holds a leading position on the Russian broadband and pay TV markets, with over 11 million fixed-line broadband subscribers and more than 7.8 million pay TV customers, of which more than 2.5 million use the unique nationwide ‘Interactive TV’ product.

The Group’s consolidated revenue for the third quarter of 2014 was RUB 75.5 billion and its OIBDA reached RUB 26.1 billion (34.6% of revenue), with a net profit of RUB 24.5 billion.

The revenue for 2013 was RUB 325.7 billion, its OIBDA reached RUB 113.3 billion (34.8)% of revenue, with a net profit of RUB 24.1 billion.

Rostelecom is an absolute market leader in providing the telecommunications services to Russian government departments and corporate users at every level.

It is also a recognized technological leader in innovative solutions in the fields of Egovernment, cloud computing, healthcare, education, security and housing & utility services.

Its stable financial status is confirmed by credit ratings of BBB- from Fitch Ratings and BB+ from Standard & Poor’s.

Contacts:

Gregory Madick
Executive IR Director
Tel.: +7 (495) 502-9783
e-mail: Gregory.Madick@x5.ru

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