REG - X5 Retail Group N.V - X5 Pilots Domestic System for Loyalty Programme

X5 Retail NVAnnouncement

29/06/2022 08:00

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RNS Number : 5204Q  X5 Retail Group N.V.  29 June 2022

 

X5 PILOTS DOMESTIC PROCESSING SYSTEM FOR ITS LOYALTY PROGRAMME

 

Moscow, 29 June 2022 - X5 Group ("X5" or the "Company", LSE and MOEX
ticker: FIVE), a leading Russian food retailer, has launched a new processing
system for its loyalty programme based on home-grown technologies. The
transition of X5's loyalty programme to a new system is set to become the
largest loyalty programme transition in Russian retail to date.

The system is operating in pilot mode across 1,500 of Pyaterochka proximity
stores in Moscow and the Moscow region. The pilot in the Moscow region has
already been completed and will extend to Pyaterochka stores across all
regions of operation. X5's Perekrestok supermarkets will join the testing
stage in July.

The transition to a new processing system requires zero effort from customers
to continue benefiting from the X5 loyalty programme, as all existing Helping
Cards will remain active. Customers who visit stores that are already
connected to the new processing system will be able to earn and redeem points
using their plastic Helping Cards. The functionality of the loyalty cards has
not been affected, with customers earning points and receiving discounts for
purchases made with their loyalty cards as before. Customers who made a
purchase during the transition to the new processing system already have their
points appearing on their loyalty card.

The new processing system was launched by X5's in-house technology team on a
platform developed by the Russian company Loymax (https://loymax.ru/) . The
platform offers new opportunities to enhance the customer experience,
including by introducing unified standards for customer authorisation that
remove overlapping data and a proprietary crisis-monitoring system with prompt
notifications. The new processing system relies on X5's infrastructure, which
ensures seamless operation of the loyalty programme and effective protection
of customer data. The platform will enable X5 to further improve the system
and introduce new functionalities, regardless of market constraints.

In total, X5's new processing system will serve more than 60 million
customers across 19,000 stores and 86,000 checkouts. The Russian retail
industry has never before seen such a large-scale loyalty programme
transition. X5 will fully migrate to the new processing system as early as
this summer, including the in-app use of loyalty cards, and will kick off the
development of the loyalty programme's functionality. In Autumn 2022, X5
plans to restore the function that enables customers to choose their favourite
product categories and partner offers, in addition to offering new features
and expanding opportunities for X5 customers.

 

 

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; RAEX: ruAA+) is a leading Russian
food retailer. The Company operates proximity stores under the Pyaterochka
brand, Perekrestok supermarkets and Chizhik hard discounters. X5 provides an
omnichannel experience to its customers, integrating retail stores and
e-commerce through its businesses Vprok.ru Perekrestok, 5Post and Mnogo
Lososya.

As of 31 March 2022, X5 had 19,479 Company-operated stores. It has the leading
market position in both Moscow and St Petersburg and a significant presence in
the European part of Russia. Its store base includes 18,320 Pyaterochka
proximity stores, 983 Perekrestok supermarkets, 89 Chizhik hard discounters
and 28 Karusel hypermarkets. The Company operates 47 DCs and 4,574
Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 328
thousand people.

For the full year 2021, revenue totalled RUB 2,204,819 million (USD 29,935
million*), EBITDA pre-IFRS 16 reached RUB 161,024 million (USD 2,186
million*), and net profit pre-IFRS 16 for the period amounted to RUB 48,513
million (USD 659 million*). In Q1 2022, revenue totalled RUB 604,230 million
(USD 7,020 million**), adjusted EBITDA pre-IFRS 16 reached RUB 70,179 million
(USD 815 million**), and net profit pre-IFRS 16 amounted to RUB 2,499 million
(USD 29 million**).

 

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 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 Group N.V. speak
only as of the date of this announcement. Save as required by any applicable
laws or regulations, X5 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.

* FX rate: 73.6541 USD/RUB

** FX rate: 86.0693 USD/RUB

 

 For further details please contact:
 Varvara Kiseleva                       Maria Yazeva

 Head of Corporate Finance and IR       Investor Relations Officer

 Tel.: +7 (495) 662-88-88 ext. 27-300   Tel.: +7 (495) 662-88-88 ext. 13-147

 e-mail: Varvara.Kiseleva@x5.ru         e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 

 

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