18 November 2020

X5 approves amended dividend policy and first interim dividend of RUB 20 BN

​​​Amsterdam, 18November 2020 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), announces that the Company’s Supervisory Board has approved changes to X5’s dividend policy and recommended distribution of an interim dividend for 9M 2020.

In order to increase the frequency of profit distributions to shareholders, the Company is introducing the practice of semi-annual interim dividend payments. The amended dividend policy will focus on using cash flow as the basis for calculating future dividends while maintaining a net debt/EBITDA ratio of less than 2.0x (under IAS 17 standard) as the target threshold for the payment of dividends.

X5 Retail Group’s management currently estimates the Company’s total dividend capacity for FY 2020 at up to RUB 50 bn, subject to financial performance in Q4 2020, as well as approval by the Supervisory Board and AGM. At present, the Company does not plan any major deleveraging.

The interim dividend for 9M 2020 amounts to RUB 20 bn, or RUB 73.645 per GDR (gross amount subject to taxes and fees), which represents 75.15% of X5 Retail Group’s 9M 2020 net profit under IFRS 16. The record date for the dividend payment has been set as 18 December 2020 and the ex-dividend date is 17 December 2020. Dividends will be payable within 45 days of the announcement in accordance with the dividend policy.

X5 Chief Executive Officer Igor Shekhterman commented:

"In line with the Company’s strategic goal of increasing returns for shareholders, and considering the financial results for 9M 2020, we have proposed the payment of an interim dividend of RUB 20 bn.

"X5 is committed to ensuring a transparent and reasonable dividend policy. The new policy better reflects the performance of our business, expectations for future growth and cash flows, as well as our planned investments, while balancing these factors with the objective of maintaining a strong balance sheet. It will also allow for more regular returns during the course of the financial year."