1 / 38

X5 RETAIL GROUP Company overview and strategy

X5 RETAIL GROUP Company overview and strategy. June 2007. Disclaimer.

lael-hardin
Télécharger la présentation

X5 RETAIL GROUP Company overview and strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. X5 RETAIL GROUPCompany overview and strategy June 2007

  2. 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 Retail Group N.V. 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 Retail Group N.V’s control. As a result, X5 Retail Group N.V’s actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements. X5 Retail Group N.V. assumes no responsibility to update any of the forward looking statements contained in this presentation. This presentation is not for distribution in, nor does it constitute an offer of securities for sale, or the solicitation of an offer to subscribe for securities in Australia, Canada, Japan or in any jurisdiction where such distribution, offer or solicitation is unlawful. Neither the presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to, or viewed by any U.S. person as defined in Regulation S under the US Securities Act 1933 (the "Securities Act”). Any failure to comply with these restrictions may constitute a violation of United States, Australian, Canadian or Japanese securities laws. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this document or any other document or other information referred to herein comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities law of any such jurisdiction. For Russian law purposes, the securities mentioned in this presentation (the "Securities") represent foreign securities. It is not permitted to place or publicly circulate the Securities on the territory of the Russian Federation at present. No prospectus for the issue of the Securities has been or is intended to be registered with the Federal Service for Financial Markets of the Russian Federation. The information provided in this presentation is not intended to advertise or facilitate the offer of the Securities in the territory of the Russian Federation. 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.

  3. Table of Contents • 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

  4. Russian Food Retail Market

  5. 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 Source of info: FSGS, analysts, media reports

  6. Forecast of Russian Retail Market Growth • Forecasted annual average growth rate for 5 year period of Total Russian food retail market is12% 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. $405bln. + 74% • Share of modern formats in total Russian food retail market 35% 15% • TOP 10 modern food retail chains (share) $106bln.(75%) $18.4bln. (53%) Source of info: FSGS, analysts, media reports

  7. Perspectives of Modern Formats • in Russian Retail Trade Perspectives of retail formats, (bln.$) Change of the format structure in modern retail trade, (%) Share of modern trade (of total Russian market) * TRRM 405 2011 2006 CAGR 12% * TRRM 15% 35% 233 CAGRof the formats: Hypermarket – 39% Discounter – 33% Supermarket – 20% * - Total Russian Retail Market • 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 respectively39% and 33%). Source of info: analysts and media reports

  8. X5 Retail Group Overview

  9. 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.

  10. History Key milestones • Pyaterochka franchise operations start • Private Label development program start • 100th store opened • The largest DC opened in North-West Russia • Ukraine & Kazakhstan markets entry • IPOat LSE • 18 St. Petersburg and 25 Moscow Kopeyka stores acquisition • A.Rogachev and A.Girda founded Pyaterochka chain • 16 stores opened in St.Petersburg  Pyaterochka enters to Moscow market 1995 1998 2002 2003 2004 2005 2006  Perekriostok chain founded by Alfa Group Consortium • 20 supermarkets opened • 1st DC acquired • 1st Perekriostok hypermarket opened • Regional expansion start • Templeton Investment foundation buys 7.7% of Perekriostok stock • SPARMiddle Volga chain acquired • «365» chain acquired in Yaroslavl’ • Gastronomy production started • 90thsupermarket opened • Ukraine market entry via 4 Kiev stores chain acquisition Merger of Pyaterochka and Perekriostok 2002 2003 2004 2005 1999 2001 Pyaterochka & Perekriostok chains development in 2003-2007F period th.m2 th.m2 PEREKRIOSTOK PYATEROCHKA CAGR (03-06): 32% CAGR (03-06): 38%

  11. X5 Retail Group in Russia Today St. Petersburg Pskov Veliky Novgorod Cherepovez Tver’ Vologda Yaroslavl Smolensk MOSCOW Kostroma Kaluga Bryansk Ivanovo Vladimir Kirov Tula Orel Ryazan Kursk Lipetsk Yoshkar-Ola Perm Arzamas Cheboksary Belgorod Izhevsk Saransk Kazan Penza Tambov Voronezh Ulyanovsk Ekaterinburg Toglyatty Ufa Saratov Samara Tyumen Chelyabinsk Rostov-na-Donu Volgograd Novorossiysk Orenburg Krasnodar Sochi Elista Stavropol Astrakhan 2006: Total Retail Sales by the Regions (mln.$, VAT excl.) 2006: Share of Retail Sales by the Regions (%) Moscow 1,987 North-West 1,128 Nizhny Novgorod 158 Samara 78 South 70 Tatarstan 49 Ural 35 Ukraine 27 Centr.- Chernozemny 19 TOTAL: 3,551 Total Stores including Ukraine: - 619 Perekriostok stores - 47 (excl.4 stores in Ukraine) Pyaterochka stores - 25 Combined: Moscow: Perekriostok - 100 Pyaterochka - 222 St. Petersburg: Perekriostok - 17 Pyaterochka - 204

  12. 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 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 that means

  13. Growth Strategy

  14. 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 Key objectives 2007: CapEx Projections (mln.$, VAT excl.) • 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 TOTAL c. 700 New stores 2007 450 2007: New DCs opening th.sq.m Rented 44.0 Owned 19.3 TOTAL: 63.3

  15. 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 * Concentration of population, territory and market volume by Russian regions in 2005 Population (>100 th. people) Share % Geographical zone Share % Area (mln.m2) Share % Market volume mln.$ Zone №3 – Other regions of Russia European part and Urals 53 000 2.8 16% 75% 100 800 84% X5 Retail Group will grow both organically and by means of M&A Siberia 7 300 2.7 16% 10% 14 400 12% Other regions 10 000 11.5 68% 15% 4 800 4% 100% Total (towns With population more than 100 th.): 70 300 (50%) 17.1 Total (allpopulation): 142 000 100% 120 000 100% * - official data Source: analysts and media reports

  16. M&A Strategy Main objective for M&A is toprovide 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 Purchasing of retail chains with trade areas, suitable for organization of discounter, supermarket and hypermarket formats Regions with the own stores of X5 as at the end of 2006 year Regions of western Siberia 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) There are no own stores as at the end of 2006 Other regions of Russia Selling of franchising contracts and possible JVs to pass under X5 control in a longer term perspective No own stores are planed to be opened on this territory during 5 years

  17. Operational Strategy

  18. Format Strategy To increase market penetration and maintain high growth rates, X5 Retail Group focuses on MULTI-FORMAT STRATEGY: Soft Discounters Hypermarket Supermarkets

  19. Soft Discounter 2006 * Format Concept 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 Trade area (average) - 600 м² Assortment(average) - 3500SKUs Non-food - 10% Price - EDLP Format Evolution • 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 Value Proposition • Next to customers apartments • Low prices • Balanced assortment • Guaranteed quality of goods * As of 31 December 2006

  20. Supermarket 2006 * Format Concept X5 Retail Group operated 168supermarkets stores, with total net selling space of 209,000 sq.m, and net sales of 1.496bln USD Trade area - 800, 1200, 1600, 4000 sq.m. Assortment - 15 000 – 25 000SKUs Price- high/low Quality - high Environment - friendly, welcoming Non-food -20-30% Format Evolution • 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 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

  21. Hypermarket Drivers for Hypermarkets format development: • Building up platform for massive roll-out of hypermarkets starting from 2009 • Focus on Development projects - building own bigger trade centers in priority regions • «Karusel» chain acquisition • 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 • 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 • 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 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

  22. 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

  23. X5 DCs Planned Locations in European Russia - National Distributional Centers planned location St. Petersburg Pskov Planned total area of national and regional DC’s in 2011 about 600’000 - 700’000 sq.m. Veliki Novgorod Cherepovets Tver’ Vologda Smolensk Yaroslavl Kostroma Moscow Vladimir Kaluga Bryansk Ivanovo Nizhni Novgorod Kirov Tula Orel Ryazan Kursk Yoshkar-Ola Lipetsk Perm Cheboksary Belgorod Saransk Izhevsk Tambov Kazan Penza Voronezh Ekaterinburg Ulyanovsk Saratov Togliatti Tyumen Samara Ufa Rostov-na-Donu Chelyabinsk Volgograd Orenburg Novorossiysk Krasnodar Sochi Stavropol Astrakhan

  24. Audited 2006 Financial Results

  25. 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: 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

  26. 12m 2006: Strong Financial Performance Net Sales Gross Profit ($ in millions) ($ in millions) (% margin) 3,551 YOY Growth = 49.6% YOY Growth = 63.8% 27.9% 2,374 25.4% 990 604 2005 Pro-Forma 2006 Pro-Forma 2005 Pro-Forma 2006 Pro-Forma Gross Profit Gross Profit Margin EBITDA incl. options (1) (1) EBITDA exc. options (% margin) ($ in millions) ($ in millions) (% margin) 8.3% YOY Growth = 55.9% 10.1% YOY Growth = 31.0% 9.5% 9.7% 295 360 226 231 2005 Pro-Forma 2006 Pro-Forma 2005 Pro-Forma 2006 Pro-Forma EBITDA incl. options EBITDA incl. options Margin EBITDA 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

  27. X5 Retail Group - Income Statement Highlights (1) EBITDAR calculated as EBITDA plus net rental expenses (2) Perekrestok’s 2005 EBITDAR and below does not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 million Source: Company information p. 27

  28. Pyaterochka – Income Statement Highlights (1) EBITDAR calculated as EBITDA plus net rental expenses Source: Company information p. 28

  29. Perekrestok – Income Statement Highlights (1) EBITDAR calculated as EBITDA plus net rental expenses (2) Perekrestok’s 2005 EBITDAR and below do not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 million Source: Company information p. 29

  30. Un-audited Q1 2007 Financial Results

  31. Q1 2007 Un-audited Financial Results Source: Company information p. 29

  32. 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) • Store opening progress (net selling space, sq.m.) in Q1 2007 p. 30

  33. Appendix p. 31

  34. IFRS Consolidated Balance Sheet, • USD thousand (condensed) Source: Company information, IFRS accounts p. 32

  35. IFRS Consolidated Statement of Cash Flows, • USD thousand (condensed) Source: Company information, IFRS accounts p. 33

  36. Management Board (7 members) Lev Khasis, Group CEO 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 Vitaliy G. Podolskiy, Group CFO 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 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 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 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 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 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 • Management Board Structure Source: Company information p. 34

  37. Supervisory Board Structure • Supervisory Board (8 members) • Herve Defforey, Chairman of the Supervisory Board • 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 • Andrei Rogachev • 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 • 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 • 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 • 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 • 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. 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 • 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. Source: Company information Note: 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 p. 35

  38. 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 TNK-BP Russia’s third largest vertically integrated oil company (in terms of production) • Large-scale proprietary and for-client investments in Emerging Markets • Long-term focus on strategic and portfolio investments • Company focusing on the development of promising technologies • The leading food retail operator in Russia • A managing company with significant investments in cellular and fixed-line communications providers • One of the largest wireless communications service companies in Russia • 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 • Leading GSM operator in Turkey Source: Alfa Group p. 36

More Related