X5 Retail opens its first Pyaterochka stores in Barnaul in the Siberian Federal District

Barnaul, RUSSIA, 2017-Sep-29 — /EPR Retail News/ — X5 Retail Group (“X5” or “the Company”), a leading Russian food retailer (LSE: FIVE), announces its further expansion in the Siberian Federal District and the opening of the first Pyaterochka stores in Barnaul.

Five new Pyaterochka stores were opened in the city. The stores, which have a total area of over 2,100 sq. m, are fully in line with the new concept launched in October 2013. To date, Pyaterochka has upgraded and rebranded over 97% of its stores across the 61 regions where it operates.

Siberian producers account for over 25% of Pyaterochka’s product mix in its Siberian stores. At present, the retail chain partners with more than 130 local suppliers. Over 50 producers are located in the Novosibirsk region, over 30 in the Omsk region, 22 in the Kemerovo region and 23 in the Altai territory. Some of X5’s partners also have the opportunity to supply goods to X5 stores in neighbouring regions. Products made in Siberia are marked with a special eye-stopper.

The new stores in Barnaul have created around 100 jobs in the city. By the end of 2017, the retail chain plans to open another 19 Pyaterochkas in the city, and to ramp up the local headcount to 350 employees.

Pyaterochka launched its operations in Siberia in early August 2016.

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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 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 Group announces cooperation agreement between Pyaterochka and VimpelCom

Moscow, 2016-Oct-03 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the signing of a cooperation agreement between Pyaterochka and VimpelCom.

The first stage entails the opening of 950 Beeline branded outlets and points of sale in Pyaterochka stores this year. The project will span 20 Russian regions, with over 500 points of sale to be opened in the Moscow and St. Petersburg metropolitan areas. By the end of 2017, the total number of Beeline outlets and points of sale in Pyaterochka stores is due to exceed 1,600.

Beeline outlets will be located near the checkout area, outside of the Pyaterochka shopping area, and will include both full-scale telecom stores or small-format service desks and counters. The offering will depend on format: Beeline counters will sell the key tariff plans and process requests for equipment delivery and mobile number transfer, while stores will also have equipment available for sale.

The partnership will boost traffic and conversion thanks to the additional services offered to customers. On top of that, the Pyaterochka agreement will provide Beeline with new opportunities to scale up its business as the national food retailer continues its rapid expansion with new stores.

Projects like this are part of Pyaterochka’s strategy for developing partnerships in high-value segments of additional services, which, in addition to mobile phone stores, also include pharmacies, children’s stores, repair and service kiosks, and bakers.

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 2016, X5 had 7,936 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 7,164 Pyaterochka proximity stores, 493 Perekrestok supermarkets, 89 Karusel hypermarkets and 190 convenience stores. The Company operates 35 DCs and 1,469 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 H1 2016, revenue totalled RUB 483,244 mln (USD 6,878 mln), EBITDA reached RUB 36,498 mln (USD 519 mln), and net profit amounted to RUB 13,004 mln (USD 185 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%.

VimpelCom (Beeline brand) is part of VimpelCom Ltd., an international communications and technology company, headquartered in Amsterdam, and driven by a vision to unlock new opportunities for customers as they navigate the digital world. Present in some of the world’s most dynamic markets, VimpelCom provides more than 200 mln customers with voice, fixed broadband, data and digital services. VimpelCom’s heritage as a pioneer in technology is the driving force behind a major transformation focused on bringing the digital world to each and every customer. VimpelCom offers services to customers in 14 markets including Russia, Italy, Algeria, Pakistan, Uzbekistan, Kazakhstan, Ukraine, Bangladesh, Kyrgyzstan, Tajikistan, Armenia, Georgia, Laos, and Zimbabwe. VimpelCom operates under the Beeline, Kyivstar, WIND, Mobilink, Banglalink, Telecel, and Djezzy brands.

Contact:
Maxim Novikov
Head of Investor Relations
X5 Retail Group
Tel.: +7 (495) 502-9783
e-mail: Maxim.Novikov@x5.ru

Anna Aybasheva
Corporate Communication Direction VimpelCom
Tel.: +7 (495) 139-2726
e-mail: media@beeline.ru

Source: X5 Retail Group N.V.

X5 Retail Group announces cooperation agreement between Pyaterochka and mobile phone retailer Euroset

Moscow, 2015-10-30 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, announces the signing of a cooperation agreement between Pyaterochka and mobile phone retailer Euroset. The agreement involves the opening of 150 small-format Euroset outlets in Pyaterochka stores by late 2015, with 40 to be launched in Moscow and the Moscow region, 20 in St. Petersburg, and the rest in other regions where Pyaterochka operates.

Euroset outlets of up to 10 sq m each will be located near Pyaterochka’s checkout area and will enjoy a single rental rate regardless of the outlet size or the region of operations.

Euroset has developed an improved outlet concept with an optimised product offering and a stronger service awareness focus to best match the needs of Pyaterochka customers. The outlets’ main services will include SIM card sales, money transfers, utility, TV and internet bill payments, loan payments, as well as airline, rail and bus ticket sales.

This agreement with Pyaterochka will provide Euroset with a vast distribution network and access to its target audience, while also creating the opportunity for it to scale up its business in line with the growth Pyaterochka’s national food retail chain. Taking advantage of the complementary value propositions of Pyaterochka and Euroset, this partnership will boost traffic thanks to additional services available to customers.

Such cooperation agreements are part of Pyaterochka’s strategy for developing partnerships in high-value additional services segments, which, in addition to mobile phone stores, also include pharmacies, repairs and everyday service kiosks, children’s stores, bakeries and more. The main purpose of sublease agreements is to create a comprehensive product and service offering tailored to customers’ needs at each location. In line with this initiative, Pyaterochka is working to build a strong pool of major partners that provide high-quality, specialised goods or services.

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

X5 Retail Group announces the signing of cooperation agreement between Pyaterochka and telecom operator Tele2

Moscow, 2015-10-14 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer (LSE ticker: “FIVE”), announces the signing of a cooperation agreement between its Pyaterochka subsidiary and telecom operator Tele2. The agreement was signed at the Russia Calling investment forum in Moscow by Pyaterochka CEO Olga Naumova and Tele2 First Deputy CEO Aleksandr Provotorov.

In the first phase of the agreement, Tele2 will open more than 1,000 branded outlets in Pyaterochka stores in Moscow and Moscow Region by late 2015. Next year, X5 and Tele2 will also discuss opportunities to work together in other regions across Russia. The Tele 2 outlets will be located near cash desks outside the shopping area in Pyaterochka stores, and will operate both as full-scale telecom stores and small-format service desks and counters. Tele2 will enjoy a sliding scale of rental rates based on the total number of outlets it opens at Pyaterochka stores.

As Tele2 taps into the Moscow market, Pyaterochka offers an extensive distribution network and target audience access, and opens up new opportunities for the telco to scale its business in proportion to the growth of the national food chain. The partnership will leverage the complementary value propositions of the retailer and the mobile operator to boost traffic by offering additional services to buyers. Tele2 will also offer exclusive subscription benefits to Pyaterochka customers.

Such cooperation agreements form part of Pyaterochka’s strategy to develop partnerships in high-value additional services segments including pharmacies, everyday services such as dry-cleaning and locksmiths, children’s goods, ready meals, butchers and farm produce outlets in addition to mobile phone 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 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 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%

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 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 announces the opening of the 5000th store of the Pyaterochka national retail chain in Russia

Moscow, 2015-4-27 — /EPR Retail News/ — X5 Retail Group, a leading Russian food retailer, is honoured to announce the opening of the 5000th store of the Pyaterochka national retail chain in Russia.

A ceremony to mark the opening of the store was attended by Alexei Nemeryuk, Head of the Department of Trade and Services of Moscow, Dmitry Dorofeev, Chairman of X5 Retail Group’s Supervisory Board, and Olga Naumova, Pyaterochka’s CEO.

The new store with the selling space of around 1,000 sq m is located on Generala Belova Street, Moscow’s Southern Administrative Area. The product offering comprises 5,000 SKUs, with 35% classified as fresh. The store is fully in line with the new Pyaterochka concept launched in October 2013. Currently, over 2,000 stores operate under the new concept in various Russian regions, of which 175 stores are located in Moscow.

To celebrate the opening of the 5,000th store, Pyaterochka announced a launch of a large-scale social project. The adjacent territory of 10,000 sq m will be used for the construction of a modern recreation area, including a children’s playground, a rollerdrome and a public park with over 500 trees. The opening of the recreation area is scheduled for 1 July 2015. Pyaterochka puts special focus on public amenities in areas adjacent to its stores. Last year, the chain launched the Pyaterochka’s Nice Courtyard programme.

Over the recent years, X5 Retail Group has significantly expanded its footprint, from Petrozavodsk in the Republic of Karelia to Tobolsk in the Tyumen Region. Pyaterochka is the driver of such an active expansion. Less than a year ago, in May 2014, X5 celebrated the opening of Pyaterochka’s 4,000th store in Russia (in Tikhoretsk, Krasnodar Territory). This year, the chain will see further expansion in Russian regions, creating more jobs and sales opportunities for local suppliers.

The Pyaterochka chain accounts for over 70% of X5’s revenue. In Q1 2015, as a result of the selling space increase by 28.8% and traffic growth by 17.9%, net retail revenue of the chain gained 34.7% year-on-year.

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 March 2015, X5 had 5,639 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 4,958 Pyaterochka proximity stores, 405 Perekrestok supermarkets, 83 Karusel hypermarkets and 193 convenience stores. The Company operates 33 DCs and 1,407 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).

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%.

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 completed the integration of 103 Pokupochka stores into the store base of Pyaterochka

Samara, 2015-4-13 — /EPR Retail News/ — X5 Retail Group (‘X5’ or the ‘Company’), a leading Russian food retailer, announced today that the Company has completed the successful integration of 103 Pokupochka stores, in the Samara Region, into the store base of Pyaterochka, the Company’s proximity store format.

X5 acquired the stores in October 2014 and the integration, including refurbishment and rebranding, was launched in November 2014. On 12 April, in downtown Volzhsky, the last store was rebranded as Pyaterochka.

All 103 stores were refurbished and rebranded in-line with the new Pyaterochka concept and most of the 1,000 employees were retained after completing supplementary training courses that were aligned with retail best practices and modern retail standards.

Currently, the Pyaterochka retail chain comprises 281 stores in the Samara Region. On top of that, there are 16 Perekrestok supermarkets and five Karusel hypermarkets also operating in the Region. The total number of employees working for X5 in the Samara Region is approximately 6,000, including employees of the three retail chains, two distribution centers and administrative offices.

The addition of the new Pyaterochka stores in the Samara Region opens up broader opportunities for local producers to sell and promote their goods. The share of local suppliers in the product mix offered by Х5’s Samara stores stands at between 30–35%, climbing as high as 70–90% in a select group of categories, such as bakery and confectionery, grocery and dairy products.

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 March 2015, X5 had 5,639 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 4,958 Pyaterochka proximity stores, 405 Perekrestok supermarkets, 83 Karusel hypermarkets and 193 convenience stores. The Company operates 33 DCs and 1,407 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).

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%.

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

X5 Retail Group: Pyaterochka and the Moscow Regional Union of Consumer Societies to open co-branded stores under the Pyaterochka.MSPK brand

Moscow, 2015-4-9 — /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 cooperation agreement (the ‘Agreement’) between Pyaterochka, the Company’s proximity store chain, and the Moscow Regional Union of Consumer Societies (‘MSPK’). According to the Agreement, Pyaterochka and MSPK will open co-branded stores under the Pyaterochka.MSPK brand at MSPK’s retail facilities using a reverse franchise model in at least 21 of MSPK’s Moscow Region district consumer societies.

The Agreement is aimed at meeting the needs of Moscow Region residents, particularly those living in rural areas, by providing a wide range of products and services at affordable prices. This will be achieved by leveraging MSPK’s facilities and resources, in conjunction with Pyaterochka’s food retail experience, to develop wholesale and retail trade. The process will be supported by modern retail technologies, efficient marketing and logistics models, a unified pricing policy and the procurement capabilities of one of Russia’s largest retailers.

Pyaterochka’s presence in the Moscow Region is currently comprised of approximately 800 stores while MSPK operates approximately 600 stores. In accordance with the Agreement, about 20 stores under the Pyaterochka.MSPK brand are expected to open at MSPK retail facilities in the Moscow Region before the end of 2015, with some 150 more in the pipeline.

In addition, up to 70 MSPK outlets may be launched in Pyaterochka stores during 2015 under the shop-in-shop model, which will help expand the Pyaterochka product range with goods from local farmers and producers.

The Agreement also specifies that MSPK will also have the right to extend the product range of stores not participating in the project with goods from Pyaterochka’s range, which will provide customers from smaller towns and villages access to lower priced products. Also, members of the Moscow Regional Consumer Society will receive special discount cards for store purchases.

When needed, Pyaterochka will also gain access to MSPK’s educational facilities (technical schools) to train and develop its staff, both as part of the Agreement and for Pyaterochka specific personnel needs.

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 convenience stores. The Company operates 34 DCs and 1,438 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).

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%.

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

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

X5 Retail Group’s proximity store chain Pyaterochka and RPM Group sign social cooperation agreement

Kaluga, Russia, 2015-2-19 — /EPR Retail News/ — X5 Retail Group N.V. (‘X5’ or the ‘Company’), a leading Russian food retailer (LSE ticker: ‘FIVE’), and RPM Group (‘RPM’), part of Russian Railways, announced today a joint cross-industry initiative between Pyaterochka, the Company’s proximity store chain and RPM’s plant in Kaluga, in the form of a social cooperation agreement (the ‘Agreement’). The agreement was signed today by the CEO of Pyaterochka, Olga Naumova and the CEO of RPM, Konstantin Danilov, in the presence of Anatoly Artamonov, Governor of the Kaluga region and X5’s CFO Elena Milinova.

As part of the Agreement, in 2015 Pyaterochka will establish training centers at ten RPM plants across Russia to retrain staff facing redundancy and provide full-time employment opportunities with one of Russia’s leading food retailers. The joint project enjoys support from the Russian Trade Union of Railway Workers and Transport Builders.

After the agreement was signed, the first training center at RPM’s plant in Kaluga was formally opened while another training center was opened on the same day at RPM’s plant in Perm.

Russian Railways is one of the world’s leading railway operators, whose consistent efforts in technology innovation and operational excellence boost overall performance, ultimately leading to a release of staff resources. X5 Retail Group is one of Russia’s largest employers with approximately 120,000 employees. With the rapid expansion of Pyaterochka’s footprint across Russia, opening and reconstruction of Perekrestok and Karusel stores, X5 Retail Group added almost 15,000 new jobs last year, generating strong demand for a skilled retail workforce.

Pyaterochka’s RPM-based training centers will train up to 3,000 retail professionals, including store directors, assistant store directors, stock managers, supervisors, distribution center operators, operations engineers, and HSE engineers, every year. The centers will be able to enroll staff released by both RPM and non-Russian Railways companies.

Currently, there are 74 Pyaterochka proximity stores and three Perekrestok supermarkets in the Kaluga region. This year, the Company is going to open up new stores and upgrade those in operation. X5 Retail Group launched its first Pyaterochka in the Kaluga region back in 2007.

Note to Editors:
X5 Retail Group N.V. (LSE: FIVE, 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%.