Pyaterochka’s Helping Card loyalty programme will be available at every Pyaterochka store starting from August 2017

Moscow, 4 July 2017 — 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.

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