X5 Retail Regulatory News (FIVE)

6 Mar 2008 09:14

X5 Retail Group N.V.06 March 2008 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN PRESS RELEASE X5 to Introduce SAP for Retail An Enterprise Resource Planning System Moscow, March 6, 2008 - X5 Retail Group N.V., Russia's largest food retailer bysales volume, announced today that it has begun the phased introduction of SAPfor Retail programming solutions to manage its retail operations. Lev Khasis, the CEO of X5 Retail Group, made the following comments about thelaunch of the project: "The introduction of a modern enterprise resource planning (ERP) system is a keynext step to support both the intense rate of growth that X5 Retail Group iscurrently experiencing and the Company's aggressive future plans. The systemwill allow X5 Retail Group to increase its operational effectiveness, achieve alasting competitive advantage, and move to a higher level of development,thereby satisfying our company's long term goals." Teimur Shternlib, the CIO of X5 Retail Group added: "As an instrument in retail, SAP for Retail is the most resilient and offers thefunctionality we require. It will enable us to improve control over processesacross all levels of company management, from store operations to strategicplanning. Technically, SAP solutions provide a scalable integrated system toautomate business processes, which will allow us to create a growth platform andincrease the effectiveness of the company's operations." The introduction of the SAP for Retail system will be conducted in stages. Thefirst phase of the launch will create a technological platform to manage retailoperations, including transactions, purchasing, and logistics, as well asinventory and accounting. This will standardize business processes in thecompany's operational activities, optimize the receipt of combined managingreports on store operations, and create a platform to implement future steps ofSAP functionality, including expanding functional financial models. Jovan Maryanovich, General Director of SAP C.I.S., said: "We see X5 Retail Group as a strategic partner on the Russian market and arepleased that they have selected SAP for Retail solutions for their company. Wehope that, together with the largest Russian food retailer, we can once againconfirm our position as the absolute leader on the Russian ERP market." The first stage of implementation is scheduled to be completed by the end of2009 and will cost approximately USD $35 million, according to X5 Retail Group'sestimates. For further details please contact Anna Kareva Elena CherkalovaIR Director PR ManagerTel.: +7 (495) 980-2729, ext. 22 162 Tel.: +7 (495) 950-5577e-mail: anna.kareva@x5.ru e-mail: elena.cherkalova@x5.ru Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. TheCompany was created as a result of a merger between Pyaterochka (soft discounterchain) and Perekrestok (supermarket chain) on 18 May 2006. As of 31 December 2007, the Group had 674 Company managed soft discount storeslocated in Moscow (309), St. Petersburg (244) and other Russian areas (121), 179Company managed supermarkets across Central Russia and Ukraine, including 105stores in Moscow (Moscow region and Yaroslavl region), and 15 Company managedhypermarkets. As of 31 December 2007, X5's franchisees operated 688 stores across Russia andKazakhstan. The Group's net sales for the full year 2007 reached USD 5,320 mln, an increaseof 53% year-on-year. Gross profit for the period totaled USD 1,404 mln, EBITDAamounted to USD 479 mln. Full year 2007 net income reached USD 141 mln. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identifiedby 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 otherwords of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-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 anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. This information is provided by RNS The company news service from the London Stock Exchange