X5 Retail Group

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.

X5 has grown from one supermarket in Moscow in 1995 to 1,217 stores as at 30 September 2009, comprising of 952 soft discount stores, 210 supermarkets and 55 hypermarkets located in 42 cities in Western Russia, the Urals and in the Ukraine, for total net selling space of approximately 963 thousand square meters. In addition, as at 30 September 2009, X5’s franchisees operated 586 stores across Russia.

For the full year 2008, X5’s pro-forma net sales 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 nine months 2009 X5’s net sales totalled USD 6,081 mln, EBITDA reached USD 509 mln, and net profit amounted to USD 121 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%.