24th Nov 2008 11:22
X5 FIRST IN RUSSIA CERTIFIED ON CONFORMITY WITH INTERNATIONAL INTERNAL AUDITING STANDARDS
Moscow, 24 November 2008 - X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), announces that its Corporate Audit Department has passed the external assessment on conformity with the International Standards for the Professional Practice of Internal Auditing.
The Corporate Audit Department (CAD), acting as an internal audit function of X5 Retail Group, has successfully passed external quality assessment procedures and has been certified by Ernst & Young on conformity with the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing.
The main goal of X5 Retail Group's CAD is to provide independent and objective assurance and value-adding advisory activity that assists the Company in achieving business objectives and improve operations. CAD conducts systematic and disciplined evaluations of operational, financial and information systems regarding risk management, internal control and governance processes aimed to improve the effectiveness of these processes.
The organizational independence of the Corporate Audit Department is guaranteed by the reporting system: CAD reports functionally to the Audit Committee of the Supervisory Board, and from the administrative standpoint - to the Management Board of X5 Retail Group.
David Gould, Chairman of the Audit Committee of the Supervisory Board of X5 Retail Group, commented:
"We are glad that the Corporate Audit Department of X5 was the first in Russia to successfully complete the external assessment on conformity with the international standards. Proficient internal audit procedures are an important prerequisite for achieving high corporate governance standards and are especially important in the current market environment as they help to enhance the efficiency of the Company's actions on risk assessment and management".
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For further details please contact |
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Anna Kareva IR & PR Director Tel.: +7 (495) 980-2729, ext. 41323 e-mail: [email protected] |
Svetlana Vitkovskaya Head of PR Department Tel.: +7 (495) 662-8888, ext. 31140 e-mail: [email protected] |
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 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.
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