7th Feb 2008 11:02
X5 Retail Group N.V.07 February 2008 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM AUSTRALIA, CANADA OR JAPAN S&P ISSUES SUMMARY UPDATE ON X5 Amsterdam, 7 February 2008 - X5 Retail Group N.V. (the 'Company' or the 'Group'), Russia's largest food retailer in terms of sales (LSE ticker: "FIVE"),announced today that Standard & Poor's issued an updated summary on the Company. In its report S&P commented that "the rating on X5 Retail Group N.V., owner ofRussia's largest grocery retail network, reflects the group's aggressive growthappetite--which inevitably leads to an increasing need for capital". At thesame time, the rating agency stated that "the expansion of Russia's retailmarket, which is in the early stages of development, means significant growthpotential for the group. Strongly positive personal income trends in X5's targetmarkets, the group's leading market position, and economies of scale support therating. Added to this is X5's prudent cost management, which supports strongprofitability and cash flow growth." In accordance with the report, X5's "liquidity became adequate in late 2007after the group obtained a three-year syndicated loan of $1.1 billion torefinance its bridge loan...Moreover, growing cash flow generation, acomfortable debt maturity profile, and the flexibility provided by the largelydiscretionary nature of capital-investment requirements also support theliquidity". S&P's rating (BB-) and outlook ("Stable") on X5 remain unchanged. 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: [email protected] e-mail: [email protected] 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 first nine months 2007 reached USD 3,618 million,an increase of 50% year-on-year. Gross profit for the period totaled USD 946million, EBITDA amounted to USD 311 million. X5 Retail Group's full year 2007net retail sales surged 53% year-on-year to 5,284 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 ExchangeRelated Shares:
X5 Retail