X5 RETAIL GROUP Company overview and strategy

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X5 RETAIL GROUPCompany overview and strategy

June 2007

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DisclaimerDisclaimer

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.

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Table of ContentsTable of Contents

1.1. Russian Food Retail MarketRussian Food Retail Market2.2. X5 Retail Group OverviewX5 Retail Group Overview3.3. Growth StrategyGrowth Strategy4.4. Operational StrategyOperational Strategy5.5. Audited 2006 Financial ResultsAudited 2006 Financial Results6.6. Un-audited Q1 2007 Financial Results Un-audited Q1 2007 Financial Results 7.7. AppendixAppendix

p. 4p. 8p.13p.17p.24p.30p.33

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Russian Food Retail Russian Food Retail Market Market

p. 5

Russian Food Retail Market (overview)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

Place in

TOP 10Company

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%

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Forecast of Russian Retail Market Growth Forecast of Russian Retail Market Growth

20062006

Official Russian food retail market

20112011

$281 bln.

Total Russian food retail market $405 bln.

Share of modern formats in total Russian food retail market

TOP 10 modern food retail chains (share)

$bln, incl VAT$bln, incl VAT

35%35%

$106 bln. (75%)

Estimated share of «grey» market 30%

$146 bln.

$233 bln.

15%15%

$18.4 bln. (53%)

37%

• Forecasted annual average growth rate for 5 year period of Total Russian food Forecasted annual average growth rate for 5 year period of Total Russian food retail market isretail market is 1212% % per yearper year. .

• Average growth rate of top-10 in 5 year period is expected at a level of 42Average growth rate of top-10 in 5 year period is expected at a level of 42%.%.

Source of info: FSGS, analysts, media reports

63% 37%70%

30%+ 74%

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Perspectives of Modern FormatsPerspectives of Modern Formatsin Russian Retail Tradein 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%).

Source of info: analysts and media reports

13 3315

639

46

34

37163

227

0

50

100

150

200

250

300

350

400

450

2006 2011

Other

Other formats

Hypermarket

Discounter

Supermarket

Perspectives of retail formats, Perspectives of retail formats, ((blnbln..$$))

233

405

CAGR 12%

CAGR of the formats:Hypermarket – 39%Discounter – 33%Supermarket – 20%

Change of the format structure in modern retail tradeChange of the format structure in modern retail trade, (%), (%)

14%

71%

5%4%

6%

9%

16%

11%

8%56%

2006 2011

Share of modern trade(of total Russian market)

15% 35%

* TRRM

* TRRM

* - Total Russian Retail Market

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X5 Retail Group OverviewX5 Retail Group Overview

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X5 Retail Group – the leader of the X5 Retail Group – the leader of the Russian Food Retail Market 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.

X5 Retail Group TodayX5 Retail Group Today

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HistoryHistory

Key milestonesKey milestones

Perekriostok chain founded by Alfa Group Consortium

20 supermarkets opened 1st DC acquired

A.Rogachev and A.Girda founded Pyaterochka chain 16 stores opened in St.Petersburg

Pyaterochka enters to Moscow market

1st Perekriostok hypermarket opened Regional expansion start

Pyaterochka franchise operations start Private Label development program start

Templeton Investment foundation buys 7.7% of Perekriostok stock SPAR Middle Volga chain acquired

100th store opened The largest DC opened in North-West Russia

«365» chain acquired in Yaroslavl’ Gastronomy production started 90th supermarket opened

Ukraine & Kazakhstan markets entry

Ukraine market entry via 4 Kiev stores chain acquisition

IPO at LSE 18 St. Petersburg and 25 Moscow Kopeyka stores acquisition

Pyaterochka & Perekriostok chains development in Pyaterochka & Perekriostok chains development in 2003-20072003-2007F periodF period

64 90 120 168

209.0

141.5102.4

79.5

0

225

450

675

900

2003 2004 2005 2006

0.0

100.0

200.0

300.0

400.0

Number of stores (eop) Trade area (eop)

189 235347

451

257.2

205.5

145.9112.4

0

225

450

675

900

2003 2004 2005 2006

0.0

100.0

200.0

300.0

400.0

Number of stores (eop) Trade area (eop)

CAGR (03-06): 38%38% CAGR (03-06): 3322%%

PEREKRIOSTOK PYATEROCHKAth.m2 th.m2

Mergerof Pyaterochka

andPerekriostok

2006

1999 2001 2002 2003 2004 2005

1995 1998 2002 2003 2004 2005

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X5 Retail Group in Russia TodayX5 Retail Group in Russia Today

Tyumen

Ekaterinburg

MOSCOW

St. Petersburg

Perm

Izhevsk

Kirov

Ufa

Chelyabinsk

Orenburg

Samara

Toglyatty

Kazan

Yoshkar-OlaCheboksary

Arzamas

Penza

Saratov

Tambov

Ryazan

Ulyanovsk

Saransk

Ivanovo

Kostroma

Vladimir

Vologda

CherepovezTver’

Veliky NovgorodPskov

Smolensk

KalugaBryansk

Orel Tula

Kursk

Belgorod

Lipetsk

Voronezh

Rostov-na-Donu

Volgograd

Krasnodar

Sochi

Novorossiysk

Stavropol Elista

Astrakhan

Yaroslavl

Perekriostok stores - 47Pyaterochka stores - 25Combined:Moscow:

Perekriostok - 100Pyaterochka - 222

St. Petersburg:Perekriostok - 17 Pyaterochka - 204

(excl.4 stores in Ukraine)

Total Stores including Ukraine: - 619

2006: Total Retail Sales by the Regions (mln.$, VAT excl.)

Moscow 1,987North-West 1,128Nizhny Novgorod 158Samara 78 South 70Tatarstan 49Ural 35Ukraine 27Centr.- Chernozemny 19

TOTAL: 3,551

2006: Share of Retail Sales by the Regions (%)

5%

2%

2%

1%

1%

1%

55%

33%

Moscow

North-West

N.Novgorod

Samara

South

Tatarstan

Ural

Ukraine

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New Management Team New Management Team

that means

Following the mergerFollowing the merger a new international management team composed of professionals with extensive a new international management team composed of professionals with extensive

and successful experience in major Russian companies and leading international and successful experience in major Russian companies and leading international retail chains was built up retail chains was built up • Lev Khasis, CEO, Lev Khasis, CEO, former Chairman of Perekrestok Supervisory Board, over 10 former Chairman of Perekrestok Supervisory Board, over 10

years in retail business, PhD in Retail Economics, Chairman of Russian Retail years in retail business, PhD in Retail Economics, Chairman of Russian Retail AssociationAssociation

• Vitaliy Podolskiy, CFO, Vitaliy Podolskiy, CFO, MBA from the University of Chicago, over 12 years of MBA from the University of Chicago, over 12 years of finance experience with leading investment banks and multinationalsfinance experience with leading investment banks and multinationals

• Antonio Melo, COO, Antonio Melo, COO, around 20 years of experience in retail with Makro and around 20 years of experience in retail with Makro and other chainsother chains

• Dariush Bator, Perekrestok GMDariush Bator, Perekrestok GM, over 10 years of experiense in retail with , over 10 years of experiense in retail with Tesco and PerekrestokTesco and Perekrestok

• Andrei Gusev, M&A Director, Andrei Gusev, M&A Director, MBA from the University of Pensylvania, over MBA from the University of Pensylvania, over 5 years of M&A activity with Alfa-Group5 years of M&A activity with Alfa-Group

• Yuri Kobaladze, Corporate Affairs Director, Yuri Kobaladze, Corporate Affairs Director, probably Russia’s best probably Russia’s best professional in this areaprofessional in this area

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Growth StrategyGrowth Strategy

p. 14

Key strategic and 2007 objectives and projections Key strategic and 2007 objectives and projections

2007: CapEx Projections (mln.$, VAT excl.)

TOTAL c. 700

New stores 2007 450

2007: New DCs opening 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

Key objectives

The key strategic objectives of X5 going forwardThe key strategic objectives of X5 going forward

Maintain the leadership position on the Russian marketMaintain the leadership position on the Russian market Play role of the market consolidator in RussiaPlay role of the market consolidator in Russia Ensure highest return on shareholders capital in the sectorEnsure highest return on shareholders capital in the sector

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Focus on the most attractive regionsFocus on the most attractive regions

Source: analysts and media reports

Zone №1 – European part and UralsZone №2 – Siberian regionsZone №3 – Other regions of Russia

* Concentration of population, territory and * Concentration of population, territory and market volume by Russian regions in 2005market volume by Russian regions in 2005

X5 Retail Group will grow both organically and by means of M&A

Geographical zone

Population(>100 th. people)

Area(mln.m2)

European part and Urals

53 000 2.8 16%

Siberia 7 300 2.7 16%

Other regions 10 000 11.5 68%

Total (townsWith population

more than 100 th.):

70 300(50%)

17.1Total

(all population):142 000

Share%

Market volume mln.$

100 800 84%

14 400 12%

4 800 4%

Share%

120 000

75%

10%

15%

Share%

100%

100%100%

1-st priority

2-nd priority

3-rd priority

* - official data

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M&A StrategyM&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

Regions with the own stores of X5 as at the end of 2006 year

European part and UralsEuropean part and Urals

Purchasing of retail chains with trade areas, suitable for organization of discounter, supermarket and hypermarket formats

Regions of western SiberiaRegions 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)

Other regions of RussiaOther regions of Russia

Selling of franchising contracts and possible JVsto pass under X5 control in a longer term perspective

There are no own stores as at the end of 2006

No own stores are planed to be opened on this

territory during 5 years

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Operational StrategyOperational Strategy

p. 18

To increase market penetration and maintain high growth rates,

X5 Retail Group focuses on MULTI-FORMAT STRATEGY:

Format StrategyFormat Strategy

Soft Discounters Supermarkets Hypermarket

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Soft DiscounterSoft Discounter

2006 *2006 *

Format EvolutionFormat 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

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 ConceptFormat Concept

Trade area (average) - 600 м²

Assortment (average) - 3500 SKUs

Non-food - 10%Price - EDLP

Next to customers apartments Low prices Balanced assortment Guaranteed quality of goods

Value PropositionValue Proposition

* As of 31 December 2006

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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»

SupermarketSupermarket

2006 *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 ConceptFormat ConceptTrade area - 800, 1200, 1600, 4000 sq.m.

Assortment - 15 000 – 25 000 SKUs

Price - high/low

Quality - high

Environment - friendly, welcoming

Non-food - 20-30%

Value PropositionValue Proposition

Format EvolutionFormat 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

* As of 31 December 2006

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• Hypermarkets will allow to maintain high growth rates, increase Hypermarkets will allow to maintain high growth rates, increase market share and purchasing powermarket share and purchasing power

• Higher turnover and efficient low-cost operations, a smart pricing Higher turnover and efficient low-cost operations, a smart pricing strategy (high/low) to create a low-price imagestrategy (high/low) to create a low-price image

• Supported by highly disciplined commercial and operational policy Supported by highly disciplined commercial and operational policy based on negative working capitalbased on negative working capital

Trade area 5.000, 7.000, 10.000 sq. m

Assortment 40,000-60,000 SKUs

HypermarketHypermarket

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

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

Drivers for Hypermarkets format development:

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

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Logistic StrategyLogistic 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 m2Strategic Goals of X5 Retail Group:Strategic Goals of X5 Retail Group:

to build own logistic infrastructure, including network of DC-s and to build own logistic infrastructure, including network of DC-s and own fleet transportation to support operations in European part own fleet transportation to support operations in European part of Russia to increase level of centralization to best-in-class of Russia to increase level of centralization to best-in-class levelslevels

Target level of centralization: - 90% for discounters- 85% for supermarkets - 75% for hypermarketsDC types:- Regional DC (FMCG and Fresh)- National DC (SMCG, strategic goods: import & private label)- Both DC types will be own managed

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X5 DCs Planned Locations in European RussiaX5 DCs Planned Locations in European Russia

PskovSt. Petersburg

Veliki Novgorod

Tver’

Cherepovets

Vologda

Smolensk

Bryansk Kaluga

Yaroslavl

Kostroma

Tula

RyazanOrelKursk

Belgorod

Lipetsk

Tambov

Voronezh

MoscowVladimir

IvanovoNizhniNovgorod

CheboksaryYoshkar-Ola

Kirov

Saratov

Rostov-na-Donu

Volgograd

Penza

Saransk

Samara

Togliatti

Ulyanovsk

KazanIzhevsk

Perm

Ufa

Orenburg

Chelyabinsk

Ekaterinburg

Tyumen

Stavropol

Astrakhan

Sochi

Krasnodar

Novorossiysk

- National Distributional Centers planned location

Planned total area of national and regional DC’sPlanned total area of national and regional DC’sin 2011 about 600’000 - 700’000 sq.m.in 2011 about 600’000 - 700’000 sq.m.

p. 24

Audited 2006 Financial Audited 2006 Financial ResultsResults

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(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

Pro-forma Consolidated 12m 2006 HighlightsPro-forma Consolidated 12m 2006 Highlights

p. 25

(1) Perekrestok EBITDA for 2005 does not include an extraordinary gain on the disposal of Tushino Plaza of US $ 18.7 million

Source: Company information, IFRS accounts, management accounts

226

295

9.5%

8.3%

2005 Pro-Forma 2006 Pro-Forma

EBITDA incl. options EBITDA incl. options Margin

604

990

27.9%

25.4%


Gross Profit Gross Profit Margin

231

360

10.1%

9.7%


EBITDA EBITDA Margin

Net Sales

YOY Growth = 55.9%

EBITDA exc. options (1)

3,551

2,374


EBITDA incl. options (1)

YOY Growth = 49.6%

YOY Growth = 31.0%

($ in millions)

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

Gross Profit($ in millions) (% margin)

YOY Growth = 63.8%

12m 2006: Strong Financial Performance12m 2006: Strong Financial Performance

p. 26

$ million / PRO-FORMA 2006 2005YOY Change (+/-

%)

Net Sales 3,551.5 2,374.1 +49.6%

Gross Profit 989.5 604.1 +63.8%

Gross Margin 27.9% 25.4%

OPEX 548.8 319.3 +71.9%

% of Sales 15.5% 13.4%

EBITDAR (1) (2) 446.8 282.1 +58.4%

EBITDAR Margin 12.6% 11.9%

Net Rental Expense 86.8 51.1 +70.0%

EBITDA (2) 360.0 231.0 +55.9%

EBITDA Margin 10.1% 9.7%

OPTIONS 64.6 5.4

% of Sales 1.8% 0.2%

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

EBITDA margin incl. options 8.3% 9.5%

Net Profit (2) 102.8 101.6 +1.2%

Net profit Margin 2.9% 4.3%

(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

X5 Retail Group - Income Statement HighlightsX5 Retail Group - Income Statement Highlights

p. 27

$ million / PRO-FORMA 2006 2005YOY Change (+/-

%)

Net Sales 1,973.1 1,359.3 +45.2%

Gross Profit 528.8 338.5 +56.2%


OPEX 244.8 141.7 +72.8%

% of Sales 12.4% 10.4%

EBITDAR (1) 287.2 194.7 +47.5%



EBITDA 242.6 168.7 +43.9%


OPTIONS 64.6 5.4

% of Sales 3.3% 0.4%

EBITDA incl. options 178.0 163.3 +9.1%


(1) EBITDAR calculated as EBITDA plus net rental expensesSource: Company information

Pyaterochka – Income Statement HighlightsPyaterochka – Income Statement Highlights

p. 28

$ million / PRO-FORMA 2006 2005YOY Change

(+/- %)

Net Sales 1,495.7 1,014.8 +47.4%

Gross Profit 437.8 265.6 +64.9%


OPEX 280.1 177.6 +57.7%

% of Sales 18.7% 17.5%

EBITDAR (1) (2) 160.7 87.4 +83.8%



EBITDA (2) 119.0 62.3 +90.9%


OPTIONS 0.0 0.0

% of Sales 0.0% 0.0%

EBITDA incl. options (2) 119.0 62.3 +90.9%


(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

Perekrestok – Income Statement HighlightsPerekrestok – Income Statement Highlights

p. 29

p. 30

Un-audited Q1 2007 Un-audited Q1 2007 Financial ResultsFinancial Results

$ million / PRO-FORMA Q1 2007 Q1 2006Change

(+/- %)

Net Sales 1,106.2 762.3 45.1%

Gross Profit 301.5 200.7 50.2%


OPEX 165.3 107.0 54.4%

% of Sales 14.9% 14.0%

EBITDAR 136.1 93.6 45.5%


Net Rental Expense 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 -100.0%

% of Sales 0.0% 0.7%

EBITDA 107.1 69.8 53.3%

EBITDA 9.7% 9.2%

Source: Company information

Q1 2007 Un-audited Financial ResultsQ1 2007 Un-audited Financial Results

p. 29

Total Like-for-Like

Traffic Basket

Moscow: Pyaterochka +16% +12% +4%Moscow: Perekrestok +16% +15% +1%Moscow: X5 Retail Group +16% +13% +3%

St. Petersburg: Pyaterochka +8% +2% +6%St. Petersburg: Perekrestok +17% +18% -1%St. Petersburg: X5 Retail Group +9% +3% +6%

Regions: Pyaterochka +35% +17% +18%Regions: Perekrestok +2% +4% -2%Regions: X5 Retail Group +7% +8% -1%

Total X5 Retail Group +13% +8% +5%

Strong Like-for-like performance: LfL Sales Performance for the Group in Q1 2007 vs.Q1 2006 by region and chain (RUR)

Q1 2007 Operational HighlightsQ1 2007 Operational Highlights

Store opening progress (net selling space, sq.m.) in Q1 2007

Moscow St Petersburg Russian regions and

Ukraine

Total Q1 2007

Total as of 31.03.2007

Perekrestok 1,200 1,648 5,600 8,448 216,265Pyaterochka 4,341 5,763 13,811 23,915 280,707X5 Retail Group

5,541 7,411 19,411 32,363 496,972

p. 30

33

AppendixAppendix

p. 31

Source: Company information, IFRS accounts

31 December 2006 31 December 2005

ASSETS

Non-current assets

Property, plant and equipment 1,311,950 324,598 Goodwill 2,622,949 24,153 Intangible assets 492,259 19,040 Prepaid leases 9,440 4,218 Loan to related party 5,250 5,250 Deferred tax assets 18,626 -

4,460,474 377,259 Current assets Inventories of goods for resale 208,576 68,576 Available-for-sale financial assets 623 - Loans receivable 10,985 12 Trade and other accounts receivable 148,225 24,528 VAT and other taxes recoverable 95,595 59,084 Cash 167,988 30,067

631,992 182,267

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

Non-current liabilities Long-term borrowings 949,123 144,089 Long-term finance lease payable 2,913 - Deferred tax liabilities 177,604 16,674 Long-term deferred revenue 4,117 - Other non-current liabilities 159 146

1,133,916 160,909 Current liabilities Trade accounts payable 552,060 119,634 Short-term borrowings 218,013 52,602 Share-based payments liability 69,990 - Short-term finance lease payables 2,271 - Interest accrued 13,544 702 Payable to related parties 414 2,758 Current income tax payable 11,511 5,018 Other liabilities 200,710 35,917

1,068,513 216,631

Total liabilities 2,202,429 377,540

Total equity and liabilities 5,092,466 559,526

IFRS Consolidated Balance Sheet, IFRS Consolidated Balance Sheet, USD thousand (condensed)USD thousand (condensed)

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Source: Company information, IFRS accounts

31 December 2006 31 December 2005 Net cash generated from operations 426,108 59,877 Interest paid (63,843) (12,393) Administrative charges paid for loans received - (2,886) Interest received 687 177 Income tax paid (46,076) (4,587) Net cash from operating activities 316,876 40,188 Cash flows used in investing activities Purchase of property, plant and equipment (256,642) (147,903) Non-current prepaid lease (6,836) (3,734) Acquisition of subsidiaries 227,932 (20,138) Acquisition of other long-term investments (389) - Proceeds from sale of property, plant and equipment 13,125 8,608 Long-term loan to related party originated - (5,250) Loans originated (11,608) - Proceeds from sale of investments available for sale 66 1,186 Purchase of intangible assets (6,594) (246) Net cash used in investing activities (40,946) (167,477) Cash flows from financing activities Proceeds from short-term loans 204,060 487,923 Repayment of short-term loans (207,232) (454,131) Proceeds from long-term loans 470,208 146,262 Repayment of long-term loans (225,186) (75,063) Distribution to shareholders (300,000) - Acquisition of treasury shares (76,534) - Principal payments on finance lease obligations (3,491) - Net cash from financing activities (138,175) 104,991 Effect of exchange rate changes on cash 166 (253) Net increase / (decrease) in cash 137,921 (22,551) Movements in cash Cash at the beginning of the year 30,067 52,618 Net increase / (decrease) in cash 137,921 (22,551) Cash at the end of the year 167,988 30,067

IFRS Consolidated Statement of Cash Flows, IFRS Consolidated Statement of Cash Flows, USD thousand (condensed)USD thousand (condensed)

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

Source: Company information

Management Board StructureManagement Board Structure

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37Source: Company informationNote: 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

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.

Supervisory Board StructureSupervisory Board Structure

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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

Source: Alfa Groupp. 36

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

X5 RETAIL GROUP Company overview and strategy

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