10th Feb 2009 16:23
VTB GROUP INCREASES X5 RETAIL GROUP'S CREDIT LINE
TO RUR 9 BILLION
Amsterdam, 10 February 2009 - X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), announced today that VTB Group has increased its credit lines to the Company from RUR 7 billion to RUR 9 billion, with the additional RUR 2 billion to be provided by the bank's 100% owned subsidiary VTB North-West.
As a result, the total amount of undrawn credit lines available to X5 Retail Group now exceeds RUR 13 billion. This, in combination with the cash balance fully covers X5's short-term liquidity needs, as the Company's short-term debt as at 31 December 2008 totaled RUR 17 billion (USD 581 million at year-end RUR/USD rate of 29.38).
Evgeny Kornilov, X5 Retail Group CFO, commented:
"We welcome VTB's decision to increase its credit line to X5 Retail Group by a further RUR 2 billion. This recognizes our actions to strengthen the Company's financial position and reflects the Russian government's continued strong support of the retail sector of the economy.
"Over the past few months, X5 has used its healthy cash generation to reduce leverage - the Company's Net Debt/EBITDA ratio has decreased from 3.2x a year ago to below 2.5x today - while increased availability of credit resources provides additional comfort with respect to short-term liquidity management. We are also pleased to report that our short-term FX exposure has been virtually eliminated thanks to dollar-denominated debt repayment and USD cash accumulation. Going forward, we expect that our successful multi-format business strategy, strong cash generating capacity, prudent approach towards capital expenditures and efficient cost controls will result in additional resources for strengthening X5's balance sheet and deleveraging efforts."
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Note to Editors:
X5 Retail Group N.V. is Russia's largest 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 at 30 September 2008, X5 had 1,027 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 794 soft discount stores, 191 supermarkets and 42 hypermarkets.
As of 30 September 2008, X5's franchisees operated 684 stores across Russia.
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.
For the first nine months of 2008, X5 Retail Group N.V.'s net retail sales including acquired Karusel stores on pro-forma basis totaled USD 6,479 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.
Anna Kareva
IR & PR Director
Tel.: +7 (495) 792-3511
e-mail: [email protected]
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