29th Apr 2009 09:19
X5 2008 annual FINANCIAL report
Amsterdam, 29 April 2009 - X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), today announced that it has published its Annual Report for the year ended 31 December 2008. The Company's Annual Report is available at www.x5.ru. This document has been submitted to the UK Listing Authority and will shortly be available for inspection at its Document Viewing Facility which is situated at:
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS
2008 IFRS Results Announcement
The Company published its IFRS Consolidated Financial Statements for the year ended 31 December 2008 on 14 April 2009. As required by the Disclosure and Transparency Rules of the UK Listing Authority in relation to an Annual Results Release, this announcement contains additional information that is extracted from the 2008 Annual Report.
Directors' Responsibility Statement
Each of the members of the Management Board of the Company as at 9 April 2009, the date of approval of the 2008 Annual Report, confirmed that to the best of his knowledge:
The annual financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and its consolidated companies; and
The Annual Report gives a true and fair overview of the situation as per the balance sheet date, the state of affairs during the financial year of the Company and its group companies included in the annual financial statements, together with a description of principal risks it faces.
Related Party Transactions
During 2008 the Company acquired the Karusel hypermarket chain. Karusel, at the time of the transaction, the fifth largest hypermarket operator in Russia by revenue, was acquired in June 2008 by acquisition of the entire issued share capital in the Dutch company Formata Holding B.V. for a total amount of USD 925 million, including an in-kind payment of 1,746,505 shares in X5. Certain intellectual property rights related to Karusel's business were acquired separately for a consideration of USD 15 million.
Mr. Rogachev and Ms. Franus, members of the Supervisory Board until their resignation on 11 and 23 April 2008 respectively, had a controlling interest in Formata Holding B.V. They both did not participate in the decision-making process with respect to the Karusel Transaction.
The Management Board confirms that to the best of their knowledge, there were no related party transactions or changes in related party transactions that materially affected the Group's results or financial position during the financial year ended 31 December 2008, other than the related party transactions mentioned in the Annual Report on page 73, and in note 8 to the Group's Consolidated Financial Statements on pages 130 to 131.
Principal Risks and Uncertainties
Like any other entity X5 faces uncertainty in doing business. Uncertainty represents both risk and opportunity which are events, situations or possibilities that affect an X5 ability to achieve its objectives, maintain a good reputation and support value creation. As a fast growing company operating in an emerging market it is critical for X5's success to be able to utilize opportunities existing in the Russian food market. This requires the Company to constantly evaluate the risks related to operating in an unstable emerging market environment and to accept a certain degree of economically justifiable risk.
A detailed description of the principal risks faced by the Company, and the Company's approach to risk management and internal controls in achieving its strategic objectives is provided on pages 57 to 67 of the 2008 Annual Report. It describes the principal risks to which X5 is exposed as well as their mitigating factors, grouped into five categories: strategic, compliance (legal and regulatory), operational, financial and financial reporting risks. It also gives an overview of the system of internal control procedures and risk management techniques which are employed by management to manage and mitigate risk in an informed, controlled and transparent manner.
Corporate Social Responsibility
A summary of our progress and performance during 2008 in relation to corporate social responsibility is set out on page 43 of the 2008 Annual Report.
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For further details please contact |
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Anna Kareva IR Director Tel.: +7 (495) 980-2729, ext. 41 323 e-mail: [email protected] |
Svetlana Vitkovskaya Head of PR Department Tel.: +7 (495) 662-8888, ext. 31 140 e-mail: [email protected]
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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. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As at 31 March 2009, X5 had 1,144 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 886 soft discount stores, 209 supermarkets and 49 hypermarkets.
As at 31 March 2009, X5's franchisees operated 586 stores across Russia.
For the full year 2008, X5's net sales including acquired Karusel business on a pro-forma basis totalled USD 8,892 mln, EBITDA reached USD 803 mln, and net profit adjusted for non-cash goodwill impairment charge amounted to USD 112 mln.
For the first quarter 2009, pro-forma net retail sales totalled USD 1,859 mln.
X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 23.1%, X5 Management - 1.9%, treasury shares - 0.1%, free float - 27.0%.
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.
Related Shares:
X5 Retail