REG - X5 Retail Group N.V - X5 to connect all Perekrestok stores to the FPS

X5 Retail NVAnnouncement

28/12/2022 11:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221228:nRSb0484La&default-theme=true

RNS Number : 0484L  X5 Retail Group N.V.  28 December 2022

X5 TO CONNECT ALL PEREKRESTOK STORES TO THE FASTER PAYMENTS SYSTEM

Moscow, 28 December 2022 - X5 Group ("X5" or the "Company", LSE and MOEX
ticker: FIVE), a leading Russian food retailer, will soon begin using the
Faster Payments System (FPS) at all Perekrestok supermarkets. In the near
future, the service will be available at every Perekrestok checkout, including
self-service terminals. Currently, 70% of the chain's supermarkets provide an
FPS-based payment option.

"Perekrestok keeps improving. One of our key ambitions is to offer our
customers convenient, high-quality digital services. We intend to implement
all advanced technologies to cater to the needs of our audience," said Andrey
Kalmykov, General Director of Perekrestok.

"FPS-based payments are a convenient, modern way of shopping. We see that
this payment method is popular among visitors to our retail chains. For the
Company, the FPS roll-out means a further reduction in transaction costs on
purchases," commented Vsevolod Starukhin, CFO at X5.

X5 is running the FPS project in collaboration with Alfa-Bank and the National
Payment Card System. The Company's supplier of NFC chips for contactless
payments is Mikron, Russia's largest microelectronics manufacturer. FPS
payments at Perekrestok checkouts use a static QR code with a checkout link.
X5 was among the first Russian retailers to introduce this technology. What
makes it unique is the combination of a static QR code and a dynamic mechanism
for generating the ticket amount. This payment method has a number of
advantages. For instance, it enables contactless URL scanning via NFC.

Thus, when paying via the FPS, the customer can choose between scanning the QR
code with their phone camera or accessing the transaction URL by holding their
phone close to the NFC chip integrated into the QR code. The customer then
confirms the transaction on their phone without entering the amount. The
payment is transferred from the customer's account to the merchant in a few
seconds upon confirmation in the app.

X5 Group carried out its first FPS payment using a dynamic QR code in late
2019, making it the first food retailer to use the novel technology. In 2022,
the Company began rolling out the FPS payment option at traditional and
self-service checkouts in Pyaterochka stores. X5 plans to complete the FPS
roll-out across its chains in 2023.

 

 

 

 

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; Expert RA - ruAAA; ACRA - AAA(RU))
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,
5Post and Mnogo Lososya.

 

As of 30 September 2022, X5 had 20,227 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 18,865
Pyaterochka proximity stores, 972 Perekrestok supermarkets and 316 Chizhik
hard discounters. The Company operates 52 DCs and 4,247 Company-owned trucks
across the Russian Federation.

 

X5 is one of the largest employers in Russia. The Company employs over 325
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 9M 2022, revenue totalled RUB 1,900,049 million
(USD 26,908 million**), adjusted EBITDA pre-IFRS 16 reached RUB 152,894
million (USD 2,165 million**), and net profit pre-IFRS 16 amounted to RUB
46,395 million (USD 657 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: 70.6135 USD/RUB

 

 For further details please contact:
 Maria Yazeva

 Investor Relations Officer

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

 e-mail: Maria.Yazeva@x5.ru

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGRBDDDXDDGDI