fy 2006 results presentation x5 retail group n.v. march 1, 2007

FY 2006 results FY 2006 results presentation presentation

X5 Retail Group N.V.

March 1, 2007

DisclaimerThis 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.

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

Net sales of US $ 3,485.4 million (+46.8%)

Gross profit of US $ 972.2 million (+60.9%, margin 27.9%, vs 25.4% last year)

EBITDA(1) of US $ 295.4 million (+31.0%, margin 8.5%, vs 9.5% last year)

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, preliminary management accounts(1) EBITDA includes Options expenses of Pyaterochka chain of US$ 64.6 mio in 2006 and of US$ 5.4 mio in 2005; (2) 2005 EBITDA does not include an extraordinary gain on Perekrestok’s Tushino Plaza real estate transaction of US $ 18.7 million

226

2959,5%

8,5%

2005 Pro-Forma 2006 Pro-Forma

EBITDA incl. options EBITDA incl. options Margin

604972

27,9%25,4%


Gross Profit Gross Profit Margin

231360

10,3%

9,7%


EBITDA EBITDA Margin

Net Sales

YOY Growth = 55.8%

EBITDA(1)

Strong Financial Performance

(1) Perekrestok EBITDA for 2005 does not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 millionSource: Company information, preliminary management accounts

3 485

2 374


Normalised EBITDA incl. options(1)

YOY Growth = 46.8%

YOY Growth = 31.0%

($ in millions)

($ in millions) ($ in millions) (% margin)(% margin)

Gross Profit($ in millions) (% margin)

YOY Growth = 60.9%

PRO FORMA - Income Statement Highlights $ million 2006 2005 YOY Change

(+/- %)

Net Sales 3,485.4 2,374.1 +46.8%

Gross Profit 972.2 604.1 +60.9%

Gross Margin 27.9% 25.4%

OPEX 530.3 319.3 +66.1%

% of Sales 15.2% 13.4%

EBITDAR (1) (2) 445.8 282.1 +58.0%

EBITDAR Margin 12.8% 11.9%

Net Rental Expense 85.8 51.1 +67.7%

EBITDA (2) 360.0 231.0 +55.8%

EBITDA Margin 10.3% 9.7%

OPTIONS 64.6 5.4

% of Sales 1.9% 0.2%

EBITDA incl. options (2) 295.4 225.6 +31.0%EBITDA margin incl. options 8.5% 9.5%

(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 millionSource: Company information, preliminary management accounts

Pyaterochka - Income Statement Highlights $ million 2006 2005 YOY Change

(+/- %)

Net Sales 1,973.1 1,359.3 +45.2%

Gross Profit 529.8 338.5 +56.5%


OPEX 241.9 141.7 +70.7%

% of Sales 12.3% 10.4%

EBITDAR (1) 288.9 194.7 +48.4%



EBITDA 244.2 168.7 +44.8%


OPTIONS 64.6 5.4

% of Sales 3.3% 0.4%

EBITDA incl. options 179.6 163.3 +10.0%EBITDA margin incl. options 9.1% 12.0%

(1) EBITDAR calculated as EBITDA plus net rental expensesSource: Company information, preliminary management accounts

Perekrestok - Income Statement Highlights $ million 2006 2005 YOY Change

(+/- %)

Net Sales 1,512.3 1,014.8 +49.0%

Gross Profit 442.4 265.6 +66.6%


OPEX 288.4 177.6 +62.3%

% of Sales 19.1% 17.5%

EBITDAR (1) (2) 156.9 87.4 +79.5%



EBITDA (2) 115.8 62.3 +85.9%


OPTIONS 0.0 0.0

% of Sales 0.0% 0.0%


(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 millionSource: Company information, preliminary management accounts

Pro Forma 4Q 2006 vs. 4Q 2005

Net sales of US $ 1,074.0 million (+51.1%)

Gross profit of US $ 325.8 million (+72.3%, margin 30.3%, vs 26.6% last year)

EBITDA incl. options of US $ 120.3 million (+54.2%, margin 11.2% vs 11.0% last year)

Source: Company information, preliminary management accounts

PRO FORMA - Income Statement Highlights $ million 4Q 2006 4Q 2005 YOY Change

(+/- %)

Net Sales 1,074.0 710.8 +51.1%

Gross Profit 325.8 189.2 +72.3%


OPEX 178.3 87.3 +104.2%

% of Sales 16.6% 12.3%

EBITDAR (1) 149.2 99.1 +50.6%



EBITDA 122.9 83.4 +47.4%


OPTIONS 2.6 5.4

% of Sales 0.2% 0.8%



Pyaterochka - Income Statement Highlights $ million 4Q 2006 4Q 2005 YOY Change

(+/- %)

Net Sales 599.1 400.5 +49.6%

Gross Profit 172.5 104.4 +65.2%


OPEX 78.5 36.5 +115.1%

% of Sales 13.1% 9.1%

EBITDAR (1) 94.9 65.7 +44.4%



EBITDA 81.6 58.0 +40.7%


OPTIONS 2.6 5.4

% of Sales 0.4% 1.3%



Perekrestok - Income Statement Highlights $ million 4Q 2006 4Q 2005 YOY Change

(+/- %)

Net Sales 474.9 310.4 +53.0%

Gross Profit 153.3 84.7 +81.0%


OPEX 99.8 50.8 +96.5%

% of Sales 21.0% 16.4%

EBITDAR (1) 54.3 33.4 +62.6%



EBITDA 41.3 25.4 +62.6%


OPTIONS 0.0 0.0

% of Sales 0.0% 0.0%



fy 2006 results presentation x5 retail group n.v. march 1, 2007

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