X5 Retail Regulatory News (FIVE)

19 Jun 2008 10:52



X5 RETAIL GROUP ANNOUNCES NEW APPOINTMENT

Amsterdam, 19 June 2008 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest food retailer in terms of sales (LSE ticker: "FIVE"), announces today the appointment of Mikhail Kuprish as Chief Development Director of the Company effective 30 June 2008. Mr. Kuprish is currently X5 Retail Group's Vice President of Small Format Development. Starting from 30 June 2008 he will be responsible for implementing the Company's strategy with respect to organic development of all of X5's store formats. The current Chief Development Director Andrei Rybakov is leaving the Company for personal reasons. 

Andrei Rybakov is one of the longest-serving employees of X5 Retail Group - he has worked at Perekrestok since 1995 and played an active role in the Company's founding and development. After the merger of Perekrestok and Pyaterochka and the creation of X5 Retail Group in May 2006, he was appointed Chief Development Director of the Company.

"Andrei Rybakov's contribution to our Company's success is difficult to overstate.  Throughout these years he has been an example of commitment and talented management; he served as a director of one of the most important areas of our operations and played a role of a mentor to our young employees.  We are grateful for everything Andrei has done for the Company, and we wish him good luck and prosperity in his undertakings and private life," said Lev Khasis, CEO of X5 Retail Group. 

Mr. Khasis added, "I would also like to welcome Mikhail Kuprish to his new position.  Mikhail has worked at the Company since 1999 and has a deep understanding of our business.  Active organic development is an integral part of X5's growth strategy and one of the key tasks faced by the Company.  I am confident that Mikhail is completely prepared for his new role."

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Mikhail Kuprish graduated from the St. Petersburg Higher Military School in 1997 with a degree in Engineering and Bridge Building.  He served as an officer in the Russian military from 1997 until 1999, when he joined Pyaterochka as a specialist in searching for real estate and worked his way up to become Vice President of Small Format Development of X5 Retail Group. 

  Note to Editors:

X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006.

As of 31 March 2008, X5 had 731 Company managed soft discount stores located in Moscow (321), St. Petersburg (249) and other Russian areas (161), 183 Company managed supermarkets across Central Russia and Ukraine, including 108 stores in Moscow (Moscow region and Yaroslavl region), and 16 Company managed hypermarkets.

As of 31 March 2008, X5's franchisees operated 711 stores across Russia and Kazakhstan.

X5's net sales for the full year 2007 reached USD 5,320 mln, an increase of 53% year-on-year. Gross profit for the period totaled USD 1,404 mln, EBITDA amounted to USD 479 mln. Full year 2007 net income reached USD 144 mln.

X5 Retail Group N.V.'s net sales for the first quarter 2008 surged 61% in USD terms and reached USD 1,786 mln.  Gross profit for the period totaled USD 458 mln, EBITDA amounted to USD 161 mln, net profit - to USD 86 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 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.