Communities – Bettering the Lives of Ordinary Russians

X5 Retail Group is committed to bettering the lives of our employees, our customers and our neighbours in the regions and communities in which we operate. Strong corporate citizenship is fundamental to our success, helping us attract and cultivate talented staff and earn customer loyalty. We invest a substantial amount of time and money into these communities to improve the quality of life for those around us.

Access to Affordable Products
X5 cares about product aff ordability for socially vulnerable segments of the population. We off er special discounts and other benefits to pensioners, war veterans and disabled persons at our stores. At our Pyaterochka discounter stores, these groups receive an additional 5% discount on their purchases during our “Care Time Hours”. Those hours are set by each regional division and last from 9 a.m. to 12 p.m., on average, every day. In a number of regions, including Central and North-West, we have “Care Time Hours” that apply to all clients, generally from 9 a.m. to 10 a.m. In Perekrestok and Karusel, pensioners receive a 5% discount during morning hours as well (except on weekends and holidays).

Education and Health Initiatives
Each year, X5 Retail Group conducts its “Perekrestok Goes to Schools!” education initiative. Every September, each “Perekrestok” supermarket provides its customers with the opportunity to vote for their favorite school in order to help that school win a valuable prize. The feature that distinguishes this program from similar charitable initiatives is that the program allows the public to select the charitable recipients. In 2011, the seventh national “Perekrestok Goes to Schools!” charity program was implemented by the Company, with support from education departments in more than 60 Russian cities. In 2011, voting took place in more than 290 “Perekrestok” supermarkets, with customers submitting votes for more than five thousand schools. The winning schools receive diff erent prizes, including a gift certificate for 350 thousand Roubles to buy up-to-date sporting equipment (for the school with the most votes, city-wide) and a table tennis set (for the school with the most votes in each supermarket).

The Company is also proud of its partnership with the Liniya Zhizni (“Life Line”) charity fund, which works to reduce child mortality from serious, treatable illnesses. Our customers provide their generous support to Liniya Zhizni by making contributions in special collection boxes displayed in our stores. Collection boxes have also been installed at our Moscow headquarters since 2010.

In 2011 alone, the partnership with “Life Line” charity fund led to 16 mln Roubles being raised for the treatment of children’s heart diseases. Two-thirds of this total was collected in the regions; the remainder was generated in Moscow. The funds were used to finance surgical procedures for 64 children.

During the 2010-2012 period, the Company’s strategic plans for charity and sponsorship include further expansion of the partnership with “Life Line” charity fund.