21 October 2015

X5 reports 28.6% revenue growth in Q3 2015

Amsterdam, 21 October 2015

X5 Retail Group N.V., (“X5” or the “Company”), a leading Russian food retailer (LSE ticker: “FIVE”), today released the Company’s unaudited condensed consolidated interim financial information for the nine months (9M) ended 30 September 2015, in accordance with International Financial Reporting Standards as adopted by the European Union.

Revenue growth accelerated to 28.6% year-on-year (y-o-y), the highest growth rate since Q3 2011, on the back of a strong increase in like-for-like (LFL) sales and solid selling space expansion.
Gross margin increased by 34 bps y-o-y and reached 25.0% in Q3 2015, mainly as a result of improved logistics and transportation costs.
EBITDA grew by 27.7% y-o-y and reached RUB 14,263 mln in Q3 2015.
EBITDA margin remained flat at 7.3% in Q3 2015, despite strong addition of new selling space (29.6% y-o-y increase).
The Company’s net debt/EBITDA ratio remains at a comfortable level of 2.48x as of 30 September 2015.
X5 has refinanced all of its loan facilities linked to MosPrime interest rate, thereby mitigating the risk of interest expense growth.
In 9M 2015, X5 added a total of 1,029 new stores vs. 461 new stores during the same period last year, delivering record selling space growth of 507.4 th. sq. m., driven principally by organic expansion.

For further details please contact
Maxim Novikov
Head of Investor Relations
+7 (495) 502-9783
Anastasiya Kvon
IR Director
+7 (495) 792-3511

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.