X5 RETAIL GROUP
Company overview and
strategy
June 2007
p. 1
Disclaimer
This presentation does not constitute or form part of and should not be construed as an advertisement of securities, an offer or invitation to sell or issue or the solicitation of an offer to
buy or acquire or subscribe for securities of X5 Retail Group N.V. or any of its subsidiaries or any depositary receipts representing such securities in any jurisdiction or an invitation or
inducement to engage in investment activity in relation thereto. In particular, this presentation does not constitute an advertisement or an offer of securities in the Russian Federation.
No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.
No representation, warranty or undertaking, express or implied, is given by or on behalf of X5 Retail Group N.V. or any of its directors, officers, employees, shareholders, affiliates,
advisers, representatives or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions
contained herein or any other material discussed at the presentation. Neither X5 Retail Group N.V. nor any of its directors, officers, employees, shareholders, affiliates, advisors,
representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or any other
material discussed at the presentation or their contents or otherwise arising in connection with the presentation.
This presentation includes statements that are, or may be deemed to be, “forward-looking statements”, with respect to the financial condition, results, operations and businesses of X5
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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
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Group N.V. assumes no responsibility to update any of the forward looking statements contained in this presentation.
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This presentation does not represent an offer to acquire the Securities or an invitation to make offers to acquire the Securities.
The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. Some of the information is still in
draft form and neither X5 Retail Group N.V. nor any other party is under any duty to update or inform recipients of this presentation of any changes to such information or opinions. In
particular, it should be noted that some of the financial information relating to X5 Retail Group N.V. and its subsidiaries contained in this document has not been audited and in some
cases is based on management information and estimates.
Neither X5 Retail Group N.V. nor any of its agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the statements
contained in this presentation.
p. 2
Table of Contents
1.
2.
3.
4.
5.
6.
7.
Russian Food Retail Market
X5 Retail Group Overview
Growth Strategy
Operational Strategy
Audited 2006 Financial Results
Un-audited Q1 2007 Financial Results
Appendix
p. 4
p. 8
p.13
p.17
p.24
p.30
p.33
p. 3
Russian Food Retail
Market
p. 4
Russian Food Retail Market (overview)
Main characteristics: large, growing, unsaturated and limited competition
Official Russian Food Retail market (2006)
– USD 146 bln
Total Russian Food Retail Market (2006)
– USD 233 bln (incl. “grey” market)
Share of modern formats
– 15% (of Total Market)
Share of Top 10 in modern retail chains
– 53% (of Total Market)
Share of X5 Retail Group on the market
– 1.7% (of Total Market)
Key Russian food retail operators
Place in
TOP 10
Source of info: FSGS, analysts, media reports
Company
Revenue 2006,
(USD mio
excl VAT)
Market share,
%
1
X5 Retail Group
3,551
21.9%
2
Metro
2,544
15.7%
3
Magnit
2,504
15.4%
4
Auchan
2,016
12.4%
5
Dixi
1,080
6.7%
6
Lenta
1,060
6.5%
7
Kopeyka
980
6.0%
8
Seventh Continent
958
5.9%
9
Victoria
900
5.5%
10
Ramstore
635
3.9%
Total TOP 10
16,228
100%
p. 5
Forecast of Russian Retail Market Growth
• Forecasted annual average growth rate for 5 year period of Total Russian food retail market
is 12% per year.
• Average growth rate of top-10 in 5 year period is expected at a level of 42%.
2006
2011
$bln, incl VAT

Official Russian food retail market
$146 bln.
$281 bln.

Estimated share of «grey» market
37%
30%

Total Russian food retail market
$233 bln.
$405 bln.
+ 74%
63%


Share of modern formats in total
Russian food retail market
TOP 10 modern food retail chains
(share)
37%
30%
70%
15%
35%
$18.4 bln. (53%)
$106 bln. (75%)
Source of info: FSGS, analysts, media reports
p. 6
Perspectives of Modern Formats
in Russian Retail Trade
The main formats in Russia are discounters, supermarkets, hypermarkets.
It’s expected that the fastest growing market segments in 5-year period will be hypermarkets and
discounters (CAGR respectively 39% and 33%).
Perspectives of retail formats, (bln.$)
Change of the format structure in modern retail trade, (%)
405
450
* TRRM
2006
400
350
300
* TRRM
227
233
250
Other
200
Other formats
150
0
5%
4%
6%
163
100
50
14%
Share of modern trade
(of total Russian market)
34
9
15
13
CAGR of the formats:
Hypermarket – 39%
Discounter – 33%
Supermarket – 20%
2006
37
46
Hypermarket
Discounter
63
33
15%
35%
2011
16%
11%
8%
56%
71%
9%
Supermarket
2011
* - Total Russian Retail Market
Source of info: analysts and media reports
p. 7
X5 Retail Group Overview
p. 8
X5 Retail Group Today
X5 Retail Group – the leader of the Russian
Food Retail Market
 Pro-forma Net Sales for 12 months 2006 – USD 3.551 bln
 Number of company own managed stores (as at 31 December 2006) – 619
 Net selling space (as at 31 December 2006) – 466,000 sq.m.
 Geography of operations – Russia (12 regional offices), Ukraine, Kazakhstan
(franchising stores)
 Number of customers in 2006 – 445,871,769.
p. 9
History
Key milestones
1995
1998
 Perekriostok
chain founded by
Alfa Group
Consortium
2002
 20
supermarkets
opened
 1st DC acquired
 1st Perekriostok
hypermarket opened
 Regional expansion
start
 A.Rogachev and
A.Girda founded
Pyaterochka chain
 16 stores opened in
St.Petersburg
1999
 Pyaterochka enters
to Moscow market
 Pyaterochka
franchise operations
start
 Private Label
development
program start
2002
2001
2003
2004
 Templeton
Investment
foundation buys
7.7% of Perekriostok
stock
 SPAR Middle Volga
chain acquired
 100th store opened
 The largest DC
opened in NorthWest Russia
2003
PEREKRIOSTOK
th.m2
400.0
 Ukraine &
Kazakhstan markets
entry
2004
Pyaterochka & Perekriostok chains development in
2003-2007F period
900
 «365» chain
acquired in Yaroslavl’
 Gastronomy
production started
 90th supermarket
opened
 Ukraine market
entry via 4 Kiev
stores chain
acquisition
Merger
of Pyaterochka and
Perekriostok
 IPO at LSE
 18 St. Petersburg
and 25 Moscow
Kopeyka stores
acquisition
2005
PYATEROCHKA
th.m2
400.0
CAGR (03-06): 32%
675
300.0
675
200.0
450
257.2
209.0
450
300.0
205.5
141.5
225
2006
900
CAGR (03-06): 38%
79.5
2005
200.0
145.9
112.4
102.4
100.0
451
225
100.0
347
0
90
120
168
64
2003
2004
2005
2006
0.0
Number of stores (eop)
Trade area (eop)
189
235
2003
2004
0
0.0
Number of stores (eop)
2005
2006
Trade area (eop)
p. 10
X5 Retail Group in Russia Today
2006: Total Retail Sales by the
Regions (mln.$, VAT excl.)
St. Petersburg
Pskov
Veliky Novgorod
Cherepovez
Tver’
Vologda
Yaroslavl
Smolensk
MOSCOW
Kostroma
Kaluga
Bryansk
Vladimir
Orel
Kursk
Moscow
North-West
Nizhny Novgorod
Samara
South
Tatarstan
Ural
Ukraine
Centr.- Chernozemny
1,987
1,128
158
78
70
49
35
27
19
TOTAL:
3,551
2006: Share of Retail Sales
by the Regions (%)
1%
Moscow
1%
North-West
55%
1%
N.Novgorod
Samara
South
2%
Tatarstan
2%
Ural
33%
Ukraine
5%
Ivanovo
Kirov
Tula
Ryazan
Lipetsk
Arzamas
Belgorod
Yoshkar-Ola
Cheboksary
Saransk
Voronezh Tambov
Kazan
Penza
Perm
Izhevsk
Ulyanovsk
Ekaterinburg
Toglyatty
Saratov
Ufa
Samara
Chelyabinsk
Rostov-na-Donu
Total Stores including Ukraine: - 619
Volgograd
Novorossiysk
Orenburg
Krasnodar
Sochi
Stavropol
Elista
Astrakhan
Tyumen
Perekriostok stores - 47 (excl.4
Pyaterochka stores - 25
Combined: Moscow:
Perekriostok - 100
Pyaterochka - 222
stores in Ukraine)
St. Petersburg:
Perekriostok - 17
Pyaterochka - 204
p. 11
New Management Team
Following the merger
 a new international management team composed of professionals with extensive
and successful experience in major Russian companies and leading international
that means
retail chains was built up
• Lev Khasis, CEO, former Chairman of Perekrestok Supervisory Board, over 10
years in retail business, PhD in Retail Economics, Chairman of Russian Retail
Association
• Vitaliy Podolskiy, CFO, MBA from the University of Chicago, over 12 years of
finance experience with leading investment banks and multinationals
• Antonio Melo, COO, around 20 years of experience in retail with Makro and
other chains
• Dariush Bator, Perekrestok GM, over 10 years of experiense in retail with Tesco
and Perekrestok
• Andrei Gusev, M&A Director, MBA from the University of Pensylvania, over 5
years of M&A activity with Alfa-Group
• Yuri Kobaladze, Corporate Affairs Director, probably Russia’s best professional
in this area
p. 12
Growth Strategy
p. 13
Key strategic and 2007 objectives and projections
The key strategic objectives of X5 going forward
 Maintain the leadership position on the Russian market
 Play role of the market consolidator in Russia
 Ensure highest return on shareholders capital in the sector
2007: CapEx Projections
(mln.$, VAT excl.)
TOTAL
New stores 2007
2007: New DCs opening
Key objectives
c. 700
450
th.sq.m
Rented
44.0
Owned
19.3
TOTAL:
63.3
 add at least 150,000 sq.m. of net selling
space organically
 expand
supermarkets
“Perekrestok”
across all regions of the European part of
Russia
 expand discounter chain “Pyaterochka” in
Moscow area, enter Samara and Nizhny
Novgorod regions
 develop hypermarket format, with the
aim of massive roll-out starting from 2009
p. 14
Focus on the most attractive regions
3-rd priority
1-st priority
2-nd priority
Zone №1 – European part and Urals
Zone №2 – Siberian regions
Zone №3 – Other regions of Russia
X5 Retail Group will grow both organically
and by means of M&A
* Concentration of population, territory and
market volume by Russian regions in 2005
Geographical
zone
Population
Share
(>100 th. people)
%
Area
(mln.m2)
Share
%
Market
volume
mln.$
Share
%
European part
and Urals
53 000
75%
2.8
16%
100 800
84%
Siberia
7 300
10%
2.7
16%
14 400
12%
Other regions
10 000
15%
11.5
68%
4 800
4%
Total (towns
With population
more than 100 th.):
70 300
(50%)
100%
17.1
100%
120 000
100%
Total
(all population):
142 000
* - official data
Source: analysts and media reports
p. 15
M&A Strategy
Main objective for M&A is to provide sustainable growth of X5 shareholder value through acquisition on financially attractive
terms of strategically located and growing retail chains to enable Company’s strategy for long-term market leadership and to
obtain access to new retail technologies and markets
European part and Urals
Regions with the own stores
of X5 as at the end of 2006 year
Regions of western Siberia
There are no own stores
as at the end of 2006
Purchasing of retail chains with trade areas,
suitable for organization of discounter,
supermarket and hypermarket formats
Creation of joint ventures or purchase of control
in the leading companies on the local market
(organization of self-dependent growth centers
under X5 control without significant involvement of
operating resources of X5)
Other regions of Russia
No own stores are planed
to be opened on this
territory during 5 years
Selling of franchising contracts and possible JVs
to pass under X5 control in a longer term perspective
p. 16
Operational Strategy
p. 17
Format Strategy
To increase market penetration and maintain high growth rates,
X5 Retail Group focuses on MULTI-FORMAT STRATEGY:
Soft Discounters
Supermarkets
Hypermarket
p. 18
Soft Discounter
2006 *
X5 Retail Group operated 451 own
discounter stores, with total net selling
space of 257,000 sq.m., and net sales of
1,973 bln. USD
Format Concept
Trade area (average)
Assortment (average)
Non-food
Price
- 600 м²
- 3500 SKUs
- 10%
- EDLP
Format Evolution
Value Proposition
 Next to customers apartments
 Low prices
 Balanced assortment
 Guaranteed quality of goods
* As of 31 December 2006
 Focus on efficiency
 Increase % of centralized deliveries to
85%-90%
 Investment into price
 Higher speed of opening (multiple
centers of growth)
 Optimization of assortment
 Advertising and Promo activities
 Loyalty program
 Increase share of fresh food
 Increase contribution of Private Labels
p. 19
Supermarket
2006 *
X5
Retail
Group
operated
168
supermarkets stores, with total net selling
space of 209,000 sq.m, and net sales of
1.496 bln USD
Format Concept
Trade area
Assortment
Price
Quality
Environment
Non-food
- 800, 1200, 1600, 4000 sq.m.
- 15 000 – 25 000 SKUs
- high/low
- high
- friendly, welcoming
- 20-30%
Format Evolution
Value Proposition
 Perekriostok is the best in fresh fruits and
vegetables, own bakery products, meat and fish
products
 Good location: close to customers apartments or
«on their way home». Easy access, convenient
parking.
 «Saving Customers’ Time»
* As of 31 December 2006
 Focus on effectiveness
 Increase % of centralized deliveries
 Rationalization of assortment
 Increase participation in fresh up to 60%
 Increase contribution of Private Labels
 Focus on standardization
 Increase efficiency of ratio between trade
and total areas
p. 20
Hypermarket
• Hypermarkets will allow to maintain high growth rates, increase market share
and purchasing power
• Higher turnover and efficient low-cost operations, a smart pricing strategy
(high/low) to create a low-price image
• Supported by highly disciplined commercial and operational policy based on
negative working capital
Trade area
5.000, 7.000, 10.000 sq. m
Assortment
40,000-60,000 SKUs
Price: When I shop in Frank I do a cheap shopping
Atmosphere: I’ll find a happy (friendly) atmosphere
Promotions-Campaigns: I’m always surprised. I’ll get a
good deal
Staff: The people is friendly, willing to help, they know the
business and what they are talking about
Assortment: They did the best selection for me. I can cover
almost all my needs
Drivers for Hypermarkets format
development:
 Building up platform for massive roll-out of
hypermarkets starting from 2009
 land bank in process of creation (over 20 land plots
secured, other 60 in progress)
 X5 plans to open around 70 hypermarkets organically
over next 5-7 years
 Focus on Development projects - building own bigger
trade centers in priority regions
 «Karusel» chain acquisition
 option exercisable from January 1, 2008 until June 30,
2008
 ca. 25 hypermarkets by the beginning of 2008
 the potential acquisition fits well into X5 format and
regional strengthening strategy
p. 21
Logistic Strategy
Current situation: Distributional Centers in Moscow and St. Petersburg
Level of centralization as of end 2006 – 50% for discounters; 25% for supermarkets
Current DCs total area
(as of April 2007) –
100’000 m2 (excl. external logistics services (3PL) operators):
- Rented area – 20’000 m2
- Owned area – 80’000 m2
Strategic Goals of X5 Retail Group:
to build own logistic infrastructure, including network of DC-s and
own fleet transportation to support operations in European part
of Russia to increase level of centralization to best-in-class
levels
Target level of centralization:
- 90% for discounters
- 85% for supermarkets
- 75% for hypermarkets
DC types:
- Regional DC (FMCG and Fresh)
- National DC (SMCG, strategic goods: import & private label)
- Both DC types will be own managed
p. 22
X5 DCs Planned Locations in European Russia
Pskov
- National Distributional Centers planned location
St. Petersburg
Planned total area of national and regional DC’s
in 2011 about 600’000 - 700’000 sq.m.
Veliki Novgorod
Cherepovets
Tver’
Smolensk
Vologda
Yaroslavl
Kostroma
Moscow
Vladimir
Kaluga
Bryansk
Ivanovo
Tula
Orel
Kursk
Kirov
Ryazan
Yoshkar-Ola
Cheboksary
Lipetsk
Belgorod
Nizhni
Novgorod
Saransk
Tambov
Penza
Voronezh
Perm
Izhevsk
Kazan
Ekaterinburg
Ulyanovsk
Saratov
Togliatti
Tyumen
Samara
Rostov-na-Donu
Ufa
Chelyabinsk
Volgograd
Orenburg
Novorossiysk
Krasnodar
Sochi
Stavropol
Astrakhan
p. 23
Audited 2006 Financial
Results
p. 24
Pro-forma Consolidated 12m 2006 Highlights
For ease of comparison, the following financials show the Pyaterochka and Perekriostok
chains combined for the full year of 2006 and 2005 respectively; results of Merkado
operations are taken for the full year 2006 only
Net sales of US $ 3,551.5 million (+49.6%)
Gross profit of US $ 989.5 million (+63.8%, margin 27.9%, vs 25.4% last year)
EBITDA(1) of US $ 295.4 million (+31.0%(2), margin 8.3%, vs 9.5% last year(2))
Net profit of US $ 102.8 million (+1.2%(2), margin 2.9%, vs 4.3% last year(2))
Net selling area of 466,000 square metres as of 31 December 2006
1,234 total stores as of 31 December 2006

Company owned: 451 soft discount stores, 156 supermarkets, 12 city hypermarkets

Franchised stores: 605 soft discount stores, 10 supermarkets/convenience stores
Source:
(1)
(2)
Company information
EBITDA includes Options expenses of Pyaterochka chain of US$ 64.6 mio in 2006 and of US$ 5.4 mio in 2005;
2005 EBITDA does not include an extraordinary gain on Perekrestok’s Tushino Plaza real estate transaction of US $ 18.7 million
p. 25
12m 2006: Strong Financial Performance
Net Sales
Gross Profit
($ in millions)
($ in millions)
(% margin)
3,551
27.9%
2,374
25.4%
990
604
2005 Pro-Forma
2005 Pro-Forma
2006 Pro-Forma
Gross Profit
EBITDA exc. options
(1)
Gross Profit Margin
EBITDA incl. options
(% margin)
($ in millions)
2006 Pro-Forma
(1)
($ in millions)
(% margin)
8.3%
10.1%
9.5%
9.7%
295
360
226
231
2005 Pro-Forma
2005 Pro-Forma
EBITDA
2006 Pro-Forma
EBITDA incl. options
2006 Pro-Forma
EBITDA incl. options Margin
EBITDA Margin
(1)
Perekrestok EBITDA for 2005 does not include an extraordinary ga
in on the disposal of Tushino Plaza of US $ 18.7 million
Source:
Company information, IFRS accounts, management accounts
p. 26
X5 Retail Group - Income Statement Highlights
$ million / PRO-FORMA
2006
2005
Net Sales
Gross Profit
Gross Margin
OPEX
% of Sales
EBITDAR (1) (2)
EBITDAR Margin
Net Rental Expense
EBITDA (2)
EBITDA Margin
OPTIONS
% of Sales
EBITDA incl. options (2)
EBITDA margin incl. options
Net Profit (2)
Net profit Margin
3,551.5
989.5
27.9%
548.8
15.5%
446.8
12.6%
86.8
360.0
10.1%
64.6
1.8%
295.4
8.3%
102.8
2.9%
2,374.1
604.1
25.4%
319.3
13.4%
282.1
11.9%
51.1
231.0
9.7%
5.4
0.2%
225.6
9.5%
101.6
4.3%
(1)
(2)
Source:
EBITDAR calculated as EBITDA plus net rental expenses
Perekrestok’s 2005 EBITDAR and below does not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 million
Company information
YOY Change (+/%)
+49.6%
+63.8%
+71.9%
+58.4%
+70.0%
+55.9%
+31.0%
+1.2%
p. 27
Pyaterochka – Income Statement Highlights
YOY Change (+/%)
$ million / PRO-FORMA
2006
2005
Net Sales
1,973.1
1,359.3
+45.2%
Gross Profit
528.8
338.5
+56.2%
Gross Margin
26.8%
24.9%
244.8
141.7
12.4%
10.4%
287.2
194.7
14.6%
14.3%
44.6
26.0
+71.5%
242.6
168.7
+43.9%
12.3%
12.4%
OPTIONS
64.6
5.4
% of Sales
3.3%
0.4%
EBITDA incl. options
178.0
163.3
EBITDA margin incl. options
9.0%
12.0%
OPEX
% of Sales
EBITDAR
(1)
EBITDAR Margin
Net Rental Expense
EBITDA
EBITDA Margin
(1)
Source:
EBITDAR calculated as EBITDA plus net rental expenses
Company information
+72.8%
+47.5%
+9.1%
p. 28
Perekrestok – Income Statement Highlights
2006
2005
Net Sales
1,495.7
1,014.8
+47.4%
Gross Profit
437.8
265.6
+64.9%
Gross Margin
29.3%
26.2%
280.1
177.6
18.7%
17.5%
160.7
87.4
10.7%
8.6%
41.7
25.1
+66.2%
EBITDA (2)
119.0
62.3
+90.9%
EBITDA Margin
8.0%
6.1%
OPTIONS
0.0
0.0
% of Sales
0.0%
0.0%
EBITDA incl. options (2)
119.0
62.3
EBITDA margin incl. options
8.0%
6.1%
OPEX
% of Sales
EBITDAR
(1) (2)
EBITDAR Margin
Net Rental Expense
(1)
(2)
Source:
YOY Change
(+/- %)
$ million / PRO-FORMA
EBITDAR calculated as EBITDA plus net rental expenses
Perekrestok’s 2005 EBITDAR and below do not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 million
Company information
+57.7%
+83.8%
+90.9%
p. 29
Un-audited Q1 2007
Financial Results
p. 30
Q1 2007 Un-audited Financial Results
$ million / PRO-FORMA
Net Sales
Q1 2006
Change
(+/- %)
1,106.2
762.3
45.1%
Gross Profit
301.5
200.7
50.2%
Gross Margin
27.3%
26.3%
165.3
107.0
% of Sales
14.9%
14.0%
EBITDAR
136.1
93.6
12.3%
12.3%
29.1
18.2
60.2%
EBITDA before options
107.1
75.4
42.0%
EBITDA before options Margin
9.7%
9.9%
OPTIONS
-
5.6
% of Sales
0.0%
0.7%
EBITDA
107.1
69.8
EBITDA
9.7%
9.2%
OPEX
EBITDAR Margin
Net Rental Expense
Source:
Q1 2007
54.4%
45.5%
-100.0%
53.3%
Company information
p. 29
Q1 2007 Operational Highlights

Strong Like-for-like performance: LfL Sales Performance for the Group in Q1 2007 vs.Q1 2006
by region and chain (RUR)
Total
Like-for-Like
+16%
+16%
+16%
Traffic
Basket
+12%
+15%
+13%
+4%
+1%
+3%
St. Petersburg: Pyaterochka
St. Petersburg: Perekrestok
St. Petersburg: X5 Retail Group
+8%
+17%
+9%
+2%
+18%
+3%
+6%
-1%
+6%
Regions: Pyaterochka
Regions: Perekrestok
Regions: X5 Retail Group
+35%
+2%
+7%
+17%
+4%
+8%
+18%
-2%
-1%
+13%
+8%
+5%
Moscow: Pyaterochka
Moscow: Perekrestok
Moscow: X5 Retail Group
Total X5 Retail Group

Store opening progress (net selling space, sq.m.) in Q1 2007
Perekrestok
Pyaterochka
X5 Retail Group
Moscow
St Petersburg
1,200
4,341
5,541
1,648
5,763
7,411
Russian
regions and
Ukraine
5,600
13,811
19,411
Total Q1 2007
Total as of
31.03.2007
8,448
23,915
32,363
216,265
280,707
496,972
p. 30
Appendix
33
p. 31
IFRS Consolidated Balance Sheet,
USD thousand (condensed)
31 December 2006
ASSETS
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Prepaid leases
Loan to related party
Deferred tax assets
1,311,950
2,622,949
492,259
9,440
5,250
18,626
4,460,474
324,598
24,153
19,040
4,218
5,250
377,259
208,576
623
10,985
148,225
95,595
167,988
631,992
68,576
12
24,528
59,084
30,067
182,267
Total assets
5,092,466
559,526
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Total equity
2,890,037
181,986
949,123
2,913
177,604
4,117
159
1,133,916
144,089
16,674
146
160,909
552,060
218,013
69,990
2,271
13,544
414
11,511
200,710
1,068,513
119,634
52,602
702
2,758
5,018
35,917
216,631
Total liabilities
2,202,429
377,540
Total equity and liabilities
5,092,466
559,526
Current assets
Inventories of goods for resale
Available-for-sale financial assets
Loans receivable
Trade and other accounts receivable
VAT and other taxes recoverable
Cash
Non-current liabilities
Long-term borrowings
Long-term finance lease payable
Deferred tax liabilities
Long-term deferred revenue
Other non-current liabilities
Current liabilities
Trade accounts payable
Short-term borrowings
Share-based payments liability
Short-term finance lease payables
Interest accrued
Payable to related parties
Current income tax payable
Other liabilities
Source:
31 December 2005
Company information, IFRS accounts
p. 32
IFRS Consolidated Statement of Cash Flows,
USD thousand (condensed)
Net cash generated from operations
Source:
Company information, IFRS accounts
31 December 2006
426,108
31 December 2005
59,877
Interest paid
Administrative charges paid for loans received
Interest received
Income tax paid
Net cash from operating activities
(63,843)
687
(46,076)
316,876
(12,393)
(2,886)
177
(4,587)
40,188
Cash flows used in investing activities
Purchase of property, plant and equipment
Non-current prepaid lease
Acquisition of subsidiaries
Acquisition of other long-term investments
Proceeds from sale of property, plant and equipment
Long-term loan to related party originated
Loans originated
Proceeds from sale of investments available for sale
Purchase of intangible assets
Net cash used in investing activities
(256,642)
(6,836)
227,932
(389)
13,125
(11,608)
66
(6,594)
(40,946)
(147,903)
(3,734)
(20,138)
8,608
(5,250)
1,186
(246)
(167,477)
Cash flows from financing activities
Proceeds from short-term loans
Repayment of short-term loans
Proceeds from long-term loans
Repayment of long-term loans
Distribution to shareholders
Acquisition of treasury shares
Principal payments on finance lease obligations
Net cash from financing activities
Effect of exchange rate changes on cash
Net increase / (decrease) in cash
204,060
(207,232)
470,208
(225,186)
(300,000)
(76,534)
(3,491)
(138,175)
166
137,921
487,923
(454,131)
146,262
(75,063)
104,991
(253)
(22,551)
Movements in cash
Cash at the beginning of the year
Net increase / (decrease) in cash
Cash at the end of the year
30,067
137,921
167,988
52,618
(22,551)
30,067
p. 33
Management Board Structure

Management Board (7 members)

Lev Khasis, Group CEO
–

Vitaliy G. Podolskiy, Group CFO
–

Mr. Rieff (48) joined the Group in 2002 as Company Secretary. He is also employed by Fortis Intertrust (Netherlands) BV and has held a number of senior positions
during his 29 years there
Andrei Gusev, Group M&A and Business Development Director
–
Source:
Mr. Musial (38) has been Chief Operating Officer of Perekrestok since July 2004. Prior to joining Perekrestok, Mr. Musial held senior management positions in the
food retail industry in Poland, including five years with Tesco in Warsaw
Wim Rieff, Corporate Secretary
–

Before joining Pyaterochka as a Finance Director in March 2001, Ms Li (36) held senior finance positions in the banking, audit and publishing industries
Pawel Musial, Group CCO
–

Prior to joining the Company in 1998, Mr. Vysotsky (38) worked in the merchant fleet and later headed the logistics divisions of several leading wholesalers in St.
Petersburg. Mr. Vysotsky is a graduate of the Makarov State Naval Academy in St. Petersburg
Angelika Li, Group Integration Director
–

Mr. Podolskiy (38) is the former Chief Financial Officer of Perekrestok. He worked for Ford Motor Company from 1999 to 2003 in the UK and then in Germany as
Finance Controller of Material Planning and Logistics of Ford Europe. Mr. Podolskiy also worked as a Management Consultant in A.T. Kearney, Inc. (New York) and as
Senior Banking Associate in Bankers Trust International Plc (London)
Oleg Vysotsky, Pyaterochka Managing Director
–

Mr. Khasis (40) is the former Chairman of the Supervisory Board of Directors of the Perekrestok Group and a founding member of Fosbourne. Fosbourne invests in
various businesses, including in retail business in Russia. Mr. Khasis has held a number of senior board and management positions, including Chairman of the Board
of GUM in Red Square and Chairman of the Board of TsUM, which are Moscow’s two most famous department stores
Mr. Gusev (34) has been director of Portfolio Management and Control for Alfa Group since 2005. From 2001 to 2005, he was Director for Investment Planning of Alfa
Group. In his current role at Alfa Group, Mr. Gusev also serves on a number of Supervisory Boards of Alfa Group companies. Prior to 2001, Mr. Gusev worked in the
consulting group at Deloitte and Touche
Company information
36
p. 34
Supervisory Board Structure

Supervisory Board (8 members)

Herve Defforey, Chairman of the Supervisory Board
–

Andrei Rogachev
–

Mr. Gould (38) worked for PricewaterhouseCoopers in the United States and Moscow from 1992 through 2000. Since 2000 he has served as Deputy Director of Corporate Development,
Finance & Control at CTF Holdings Ltd, the ultimate holding company of Alfa Group Consortium. In addition, Mr. Gould is a member of the Board of Directors of Alfa Finance Holdings
SA
Vladimir Ashurkov
–
Source:
Note:
Mr. Savin (37) serves as Managing Director of Investment Company A1, where he is responsible for overall strategic business development. From 1992 until 2001, Mr. Savin worked at
Bain & Company in Moscow, Boston and London. While at Bain he focused on consulting for private equity businesses as well as on development of strategy for leading multinational
corporations. In 2000 and 2001 he served as an external consultant to the Supervisory Board of Directors of Alfa Group
David Gould
–

Mr. Fridman (42) is Chairman of the Supervisory Board of Alfa Group and principal founder of Alfa Group Consortium. Mr. Fridman also serves as the Chairman of the Board of Directors
of Alfa Bank and TNK-BP and is a member of the Board of Directors of VimpleCom
Alexander Savin
–

From 1993 to 1994 Mr. Kosiyanenko (43) served as Chairman of the Board of Directors of Moskva-Centre Commercial Bank. In 1994, Mr. Kosiyanenko helped to found Perekrestok. He
served as Chief Executive Officer through May 2006 and was responsible for the overall strategy and development of Perekrestok
Mikhail Fridman
–

Prior to joining the Board, Ms Franous (49) was head of finance at United Food Company, a large wholesaler and distributor of canned food products
Alexander Kosiyanenko
–

Mr. Rogachev (42) is a co-founder and principal of Pyaterochka. From 1993 to 1998 Mr. Rogachev was Deputy Chairman of Stema Bank and served as a coordinator of the Banking
Confederation. Mr. Rogachev joined the Group in 1998
Tatyana Franous
–

Mr. Defforey (56) Herve 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 GRP Partners where he also serves as Executive Chairman for Europe
From 2005 to September 2006 Mr. Vladimir Ashurkov (34) held a position of Vice-President of Strategic planning in the Group “Industrial Investors” which incorporates of transport, bin
and machine-building companies. Now Vladimir Ashurkov is a Director of Group Portfolio Management and Control in Alfa Group Consortium.
Company information
The Supervisory Board is responsible for the supervision of and advising to the Management Board,
which in its turn is responsible for Pyaterochka’s overall management.
The Supervisory Board meets at least four times per year
37
p. 35
Alfa Group Overview

Alfa Group is one of Russia’s largest and most sophisticated privately owned financial investors,
with investments in four key sectors of strategic focus: Retail, Oil and Gas,
Telecommunications, and Financial Services
 Russia’s largest
private bank
 Group’s
flagship
company
 Group’s asset
management
operations
 One of the largest
non-obligatory
insurance
companies in
Russia
 25% stake in TNKBP Russia’s third
largest vertically
integrated oil
company (in terms
of production)
 Large-scale
proprietary and forclient investments
in Emerging
Markets
 Company focusing
on the
development of
promising
technologies
 The leading food
retail operator in
Russia
 Long-term focus
on strategic and
portfolio
investments
 One of the largest
wireless
communications
service
companies in
Russia
Source:
Alfa Group
 The third largest
provider of
wireless
communications
services in Russia
 One of the leading
providers of
wireless
communications
services in Ukraine
 Leading
fixed-line and
internet
provider
 A managing
company with
significant
investments in
cellular and fixedline
communications
providers
 Leading GSM
operator in
Turkey
38
p. 36