New Chairman of the Supervisory Board of X5 Retail Group N.V.
Amsterdam, 18 October 2006 - X5 Retail Group N.V. (Pyaterochka Holding N.V.) Russia’s leading grocery retailer, announced today its intention to appoint Mr. Herve Defforey as the Chairman of the Supervisory Board on 2 November 2006.
Group CEO Lev Khasis commented: “The merger between Pyaterochka and Perekriostok chains, completed in May 2006, created the clear leader in the Russian food retail market, and provided the company with a solid multiformat platform for its further growth. We strongly believe that the valuable knowledge and experience of Herve Defforey, one of the world’s most reputable experts of the retail business, will allow us to develop the most effective strategic model for the further development of the Group, and to become the main consolidator of the Russian retail market.”
Mr. David Noble will resign as the Chairman and Member of the Supervisory Board as per 2 November 2006.
David Noble commented: “I welcome the appointment of Mr. Herve Defforey who will assume his duties as Chairman of the Supervisory Board on November 2nd. His knowledge and experience will be a valuable asset to the company as we consolidate our industry leading position. It has been a pleasure to Chair the company through its IPO in 2005 and its recent merger with Perekriostok”
“We appreciate David’s contribution to our success and wish him the best of luck with his future business opportunities,” Mr. Lev Khasis said.
Note to Editors:
Herve Defforey started his career as a marketing manager in Nestle Co. in 1975. From 1977 he worked in Chase Manhattan Bank N.A. which he left in the position of Vice President in 1983. From 1983 to 1990 he held top positions in BMW AG. In 1990 he took up the duties of the Managing Director in Azucarrera EBRO S.A. In 1993-2004 served as Finance Director and General Manager in Carrefour, S.A. From 2001 Mr. Defforey is a Partner in GPR Partners where he also serves as Executive Chairman for Europe.
X5 Retail Group N.V. (Pyaterochka Holding N.V.)
X5 Retail Group N.V. (Pyaterochka Holding N.V.) is Russia's largest food retailer in terms of sales. As of 30 September 2006, the group had 420 company-managed "Pyaterochka" soft discount stores located in the Moscow (199), St. Petersburg (199) and Yekaterinburg (22) areas, and 141 company-managed "Perekrestok" supermarkets across Central Russia and Ukraine, including 81 stores in Moscow.
As of 30 September 2006, franchisees operated 539 Pyaterochka branded stores across Russia, in Ukraine and Kazakhstan. Perekrestok has 10 convenience stores operated by franchisees in the Moscow area.
Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 to create the clear leader in the Russian food retail market.
Pyaterochka’s 2005 net sales (pre-merger) reached USD 1,359 million, with gross banner sales in 2005 of over USD 2 billion. Perekrestok net sales reached USD 1,015 million in 2005.
The Group’s pro forma (assuming both chains contribution from 1 January 2006) net sales for the first half of 2006 were US $1,581 million (management accounts). During 1H 2006, the Pyaterochka chain provided US $906 million of net sales, while the Perekrestok chain contributed US $675 million of net sales.
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 Pyaterochka Holding 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 Pyaterochka Holding N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, Pyaterochka Holding 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.
X5 Retail Group
X5 Retail Group is the leading food retailer in Russia. X5 shares are listed on London Stock Echange (LSE) in the form of Global Depositary Receipts. The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores.