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 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.

Download (PDF. 0.2 MB)

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 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

X5 Retail announces launch of co-branded cards with Alfa-Bank, Perekrestok and Mastercard

Moscow, 2016-Nov-22 — /EPR Retail News/ — Alfa-Bank, X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer (LSE ticker: “FIVE”), and Mastercard, an international payment operator, announce the launch of a joint nationwide project at Perekrestok to issue co-branded Mastercard-Perekrestok-Alfa-Bank cards. Cardholders will earn points on all purchases that can be redeemed against goods at Perekrestok supermarkets (10 points equal RUB 1). Purchases made at Perekrestok stores earn additional points.

Three types of cards will be available: reloadable prepaid cards, debit cards and credit cards. All cards use Mastercard’s innovative contactless technology, which offers a fast, simple and secure way to pay for purchases – just tap and go.

Prepaid cards with RUB 99 of credit are available at Perekrestok checkouts. A prepaid card will earn 2 points for every RUB 10 spent at Perekrestok, and 1 point for every RUB 10 spent elsewhere. Customers can register and top up prepaid cards on Perekrestok’s website, the My Perekrestok mobile app and at ATMs of Alfa-Bank and its partners. For customers’ convenience, the mobile app (downloaded more than 150,000 times from the Apple App Store and Google Play in the first five months of 2016) will allow users to access their entire card transaction history.

Mastercard-Perekrestok-Alfa-Bank debit and credit cards, which accumulate more points, are available at any office of Alfa-Bank, through the bank’s website or via the My Perekrestok app. Debit and credit cards earn 3 points for every RUB 10 spent at Perekrestok, and 1 point (debit cards) and 2 points (credit card) for every RUB 10 spent elsewhere. In addition, the first purchase made using the card will be rewarded with an additional 2,000 (debit card) and 5,000 (credit cards) welcome points.

All three cards automatically come with individual membership of Perekrestok’s loyalty programme, allowing cardholders to benefit from special offers and other privileges. Active club members can merge their old and new accounts, or have a card issued with their existing membership number (Mastercard-Perekrestok-Alfa-Bank cards accrue more bonus points than Perekrestok Club cards). Perekrestok’s loyalty programme has more than 12 million customers, including over 3.5 million active users.

Mikhail Povaly, member of Alfa-Bank’s Executive Board and head of its Retail Business, commented: “Our joint project with the Perekrestok chain is highly relevant for today’s Russia: this partnership between a bank and a food retailer is unprecedented in the local market. I am confident that the Mastercard-Perekrestok-Alfa-Bank cards will enjoy enormous popularity, as they will provide significant savings for household budgets and enable families to get some goods at Perekrestok supermarkets for free. We have made the cards as user-friendly as possible. With free transfers from cards issued by other banks, a free mobile app and an attractive reward points system, we expect great demand for the cards and high levels of customer satisfaction. Customers who activate our cards during the launch period will have enough time to earn some bonus points and spend them to buy food for the New Year celebrations.”

Vladimir Sorokin, General Director of Perekrestok, said: “Our joint project with Alfa-Bank and Mastercard is not only a milestone in the development of Perekrestok’s loyalty programme, but is a breakthrough for all loyalty programmes in the Russian retail market. I am certain that synergies from our partnership and the social significance of this co-branded project will ensure maximum outreach to Russian customers.”

Ivan Isaenko, Market Development Director at Mastercard, added: “Co-branded projects are a rare sight on the Russian market. Jointly, we have developed an offer that lets customers pick a banking product and a bonus plan. The great thing is that, no matter the choice, it is all Mastercard, which guarantees fast, simple and secure payments both in Russia and other countries. In addition, all Perekrestok stores have contactless payment devices, and this means that Mastercard-Perekrestok-Alfa-Bank cards will enable their holders to take advantage of the cutting-edge payment technologies, including mobile payments.”

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 2016, X5 had 8,574 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 7,787 Pyaterochka proximity stores, 503 Perekrestok supermarkets, 90 Karusel hypermarkets and 194 convenience stores. The Company operates 35 DCs and 1,561 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 totalled 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%.

Founded in 1990, Alfa-Bank is a full-service bank operating in most sectors of the financial market, including retail and corporate lending, investment banking, leasing, trade and structured finance.

According to its auditor reviewed IFRS financial statements for 1H 2016, the Alfa Banking Group, which comprises ABH Financial, Joint Stock Company Alfa-Bank as well as its subsidiary financial companies, had total assets of USD 33.3 bn, gross loans of USD 22.0 bn, and total equity of USD 4.6 bn. Net profit after tax for 1H 2016 amounted to USD 161 mln.

As of June 30, 2016 the Alfa Banking Group serves around 277,000 corporate and 14.0 mln retail customers, while the branch network consists of 723 offices across Russia and abroad, including a subsidiary bank in the Netherlands and financial subsidiaries in United Kingdom and Cyprus.

Alfa-Bank is an official European bank of the 2018 FIFA World Cup and 2017 FIFA Confederations Cup.

Masterсard (NYSE: MA), is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Masterсard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterсardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.

About Mastercard Contactless

Mastercard Contactless is an innovative technology for payment in one touch that provides a fast, safe and convenient way of paying for everyday purchases. There is no need to pass a contactless-enabled card or other device (smartphone, sticker, watch) to the cashier – you just tap it at a contactless-enabled POS-terminal. No PIN or check signing required for purchases under 1000 rubles.

Mastercard Contactless is accepted in over 6 mln points-of-sales in 77 countries (42 of them in Europe).

For further details please contact:

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

Zhanna Kaplun
Press-secretary
Alfa-Bank
Tel.: +7 (495) 502-9783
e-mail: Zkaplun@alfabank.ru

Elena Prorokova
Press service
Mastercard Russia
Tel.: +7 (495) 937-7710
E-mail: Elena.prorokova@mastercard.com

Source: X5 Retail Group

X5 Retail announces that Vardan Dashtoyan will step down as General Director of the Karusel hypermarket chain

Amsterdam, 2016-Feb-10 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces today that Vardan Dashtoyan has informed the Company of his intention to step down as General Director of the Karusel hypermarket chain in order to return to his own business ventures.

Karusel’s Chief Operating Officer Emin Rustamov has been appointed as the interim General Director of Karusel. A new head of the Karusel hypermarkets will be named within three months.

X5 CEO Igor Shekhterman said: “I would like to thank Vardan for his work as General Director of Karusel. Continuing to develop the hypermarket format remains one of X5’s key priorities. X5 Retail Group sees significant potential in the hypermarket space of the Russian food retail market; we remain committed to a presence in this segment via Karusel and its compact hypermarkets. The current economic situation represents an opportunity for Karusel to continue improving its value proposition with a focus on adapting to the changing needs of our customers, and to contribute to X5’s future growth.”

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%.
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

X5 Retail group offers RUB 5 bln BO-04 series rouble-denominated bonds issued by OOO X5 Finance

Moscow, 2015-10-21 — /EPR Retail News/ — X5 Retail Group N.V. (“X5” or “the Company”), a leading Russian food retailer (LSE ticker: “FIVE”), announces the offering of RUB 5 bln BO-04 series rouble-denominated bonds issued by OOO X5 Finance.

The coupon rate on the bonds with oferta in 3.5 years, is set at 11.90%. The Company plans to use the proceeds to finance its current operations, including loan refinancing to improve the loan portfolio structure.

The offering was arranged by Raiffeisenbank.

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%.

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

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