X5 Retail Group. Годовой отчет за 2022 год (на английском)

178

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Related party

transactions

Total compensation of the Management Board and other
key management personnel was as follows:

2022

2021

Short-term employee benefits

1,158

824

Long-term employee benefits

458

538

Social security costs

232

196

Total

1,848

1,558

Total compensation of the Supervisory Board was
as follows:

2022

2021

Short-term renumerations

153

109

Equity-based compensation

Total

166

198

As at 31 December 2022 the total number of outstanding
conditional rights awarded to members of the Supervisory
Board (Note 29) under the Phantom Stock Unit Plan was
38,925 (31 December 2021: Nil) and under Restricted Stock
Unit Plan 23,248 (31 December 2021: 120,448).

Terms and conditions of transactions
with related parties

The sales to and purchases from related parties are made
on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are
unsecured and interest free and settlement occurs in
cash. There have been no guarantees provided or received
for any related party receivables or payables. For the
years ended 31 December 2022 and 31 December 2021,
the Group did not record any material expected credit
loss provisions for trade and other receivables nor did it
recognise any impairment provisions for prepayments.

Key management personnel compensation

Key management personnel are those persons having
authority and responsibility for planning, directing and
controlling the activities of the Group. The Group considers
all members of the Management Board, Executive Board
and the Supervisory Board to be key management
personnel as defined in IAS 24 Related Party Disclosures.
The total direct compensation for members of the
Management Board and other key management personnel
consists of a base salary and a performance related
short-term incentive as well as, for the CEO and other key
management personnel, a performance related long-term
incentive. Members of the Supervisory Board receive a fixed
annual remuneration in cash and equity-based payments.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

179

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Cash and cash

equivalents,

short-term financial

investments

31 December

2022

31 December

2021

Bank current account –
Roubles

14,336

2,733

Bank current account −
other currencies

1,577

Cash in transit – Roubles

17,457

14,997

Cash in hand – Roubles

9,759

8,278

Deposits – Roubles

126

Total

43,255

26,062

31 December

2022

31 December

2021

Short-term financial
investments

50,067

50,092

Total

50,067

50,092

The bank accounts represent current accounts. Interest
income on overnights / term deposits was immaterial. Cash
in transit is cash transferred from retail outlets to bank
accounts and bank card payments being processed.

The Group assessed credit quality of outstanding cash and
cash equivalents balances as high and considered that
there was no significant individual exposure. The maximum
exposure to credit risk at the reporting date was the
carrying value of cash and bank balances.

Short-term financial investments at 31 December 2022 and
31 December 2021 represent irrevocable bank deposits in
Russian Roubles with maturity not more than a year that
earn interest income at the rates in the range of 8.0%–9.0%
per annum.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

180

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Property, plant

and equipment

Land

and buildings

Machinery and

equipment

Refrigerating

equipment

Vehicles

Other

Construction

in progress

Total

COST

At 1 January 2021

316,545

65,987

72,728

25,673

59,090

7,274

547,297

Additions

−

79,716

Transfers

31,764

16,375

11,208

5,795

13,140

(78,282)

−

Disposals

(7,360)

(5,536)

(4,098)

(921)

(3,835)

(282)

(22,032)

At 31 December 2021

340,949

76,826

79,838

30,547

68,395

8,426

604,981

Additions

–

56,258

Transfers

18,548

10,400

6,454

4,468

9,553

(49,423)

–

Transfer to investment property

(1,605)

–

(1,605)

Assets from acquisitions

697

815

663

408

2,681

Disposals

(11,858)

(3,689)

(2,386)

(1,671)

(2,619)

(115)

(22,338)

At 31 December 2022

346,731

84,352

84,569

33,408

75,737

15,180

639,977

1 This category also includes machinery and equipment, refrigerating equipment, vehicles and other items

of property, plant and equipment not yet available for use.

181

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Land

and buildings

Machinery and

equipment

Refrigerating

equipment

Vehicles

Other

Construction

in progress

Total

ACCUMULATED DEPRECIATION AND IMPAIRMENT

At 1 January 2021

(114,675)

(29,788)

(31,974)

(11,513)

(36,480)

(160)

(224,590)

Depreciation charge

(28,408)

(10,709)

(9,513)

(4,044)

(10,865)

−

(63,539)

Impairment charge

(3,160)

(872)

(585)

(27)

(196)

(131)

(4,971)

Reversal of impairment

1,829

−

1,866

Disposals

4,539

5,161

3,946

808

3,745

198

18,397

At 31 December 2021

(139,875)

(36,199)

(38,122)

(14,754)

(43,794)

(93)

(272,837)

Depreciation charge

(29,678)

(11,789)

(9,842)

(4,917)

(11,295)

–

(67,521)

Impairment charge

(4,766)

(567)

(300)

–

(234)

(81)

(5,948)

Reversal of impairment

1,043

–

1,043

Transfer to investment property

911

–

911

Disposals

10,351

3,424

2,246

1,394

2,457

115

19,987

At 31 December 2022

(162,014)

(45,131)

(46,018)

(18,277)

(52,866)

(59)

(324,365)

Net book value at 31 December 2022

184,717

39,221

38,551

15,131

22,871

15,121

315,612

Net book value at 31 December 2021

201,074

40,627

41,716

15,793

24,601

8,333

332,144

Net book value at 1 January 2021

201,870

36,199

40,754

14,160

22,610

7,114

322,707

Property, plant

and equipment

1 This category also includes machinery and equipment, refrigerating equipment, vehicles and other items

of property, plant and equipment not yet available for use.

182

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Property, plant

and equipment

Depreciation charge, impairment charge and reversal
of impairment were included in selling, general and
administrative expenses in the consolidated statement of
profit or loss for the years ended 31 December 2022 and
31 December 2021.

Construction in progress predominantly related to the
development of stores through the use of sub-contractors.

The buildings are mostly located on leased land. No loans
were collateralised by land and buildings including
investment property as of 31 December 2022 and
31 December 2021.

Impairment test

At the end of 2022 management performed an impairment
test of property, plant and equipment, right-of-use assets,
other intangible assets and investment property. The
approach for determination of the recoverable amount of
an asset was different for each class of property, plant and
equipment, right-of-use assets, other intangible assets and
investment property.

The evaluation for long-lived assets is performed at the
lowest level of identifiable cash flows, which is generally at
the individual store/unit level (cash generating unit − CGU).
The variability of these factors depends on a number of
conditions, including uncertainty about future events and
changes in demand.

The impairment review has been carried out by comparing
recoverable amount of the individual store/unit with their
carrying values. The recoverable amount of store/unit is
determined as the higher of fair value less cost of disposal
or value in use.

The resulting impairment charge arose primarily from
underperforming stores and Karusel transformation.
At the same time the Group recognised the reversal of
previously recorded impairment charges due to improved
performance of certain stores. Due to the great number
of CGUs being tested for impairment it is considered
impracticable to disclose detailed information for each
individual CGU.

Fair value of land and buildings and construction in
progress is determined by management internal specialists
by reference to current observable prices on an active
market subsequently adjusted for specific characteristics
of respective assets. The fair value measurement of these
assets is classified at level 3 of the fair value hierarchy.

Value in use

For property, plant and equipment, right-of-use assets,
other intangible assets and investment property the
discounted future cash flow approach is applied and covers
a 10-year period from 2023 onwards. The Group believes
that use of 10 year forecast better reflects expected future
cash flows of its cash generating units due to cyclical
nature of their renovation expenditures. The future cash
flows are based on the current budgets and forecasts
approved by the management. For the forecast period, the
data of the strategic business plan is extrapolated based
on the consumer price indices as obtained from external
resources and key performance indicators inherent to
the strategic plan. One of the main assumptions used for
the forecast period is revenue growth being in the range
from 4.00% to 6.91% in accordance with the internal
forecasts based on budget and consumer price index
projections (31 December 2021: 4.00% to 7.86%). For the
years beyond the forecast period the long-term consumer
price index forecast of 4.00% at 31 December 2022 is
used (31 December 2021: 4.00%). The projections are

made in the functional currency of the Group’s entities,
being Russian Rouble, on a pre-tax basis and discounted
at the Group pre-tax weighted average cost of capital
which is then adjusted to reflect the risks specific to the
respective assets (cash-generating units (CGUs)) − 15.92%
(31 December 2021: 13.39%). Inflation rates are in line
with the consumer price index forecast published by the
Ministry of Economic Development of Russian Federation.
The Group’s management believes that all of its estimates
are reasonable and consistent with the internal reporting
and reflect management’s best knowledge.

The result of applying discounted cash flows model
reflects expectations about possible variations in the
amount and timing of future cash flows and is based on
reasonable and supportable assumptions that represent
management’s best estimate of the range of uncertain
economic conditions. If the revised estimated discount
rate consistently applied to the discounted cash flows had
been 200 b.p. higher than management’s estimates, the
Group would need to reduce the carrying value of property,
plant and equipment, right-of-use assets, investment
property and intangible assets by RUB 1,994 (31 December
2021: RUB 1,544), if 200 b.p. lower − increase by RUB 1,581
(31 December 2021: RUB 1,198). If the annual revenue
growth rate used in calculations of value in use had been
200 b.p. higher, the Group would need to increase the
carrying value of property, plant and equipment, right-of-
use assets, investment property and intangible assets by
RUB 157 (31 December 2021: RUB 809), lower − decrease
by RUB 164 (31 December 2021: RUB 1,026).

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

183

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Right-of-use assets

(land and buildings)

Lease

liabilities

At 1 January 2022

502,325

(577,363)

Additions

64,489

(64,059)

Acquisition of businesses
(Note 7)

22,635

(22,467)

Depreciation expense

(75,958)

−

Impairment charge

(3,239)

−

Reversal of impairment

1,788

−

Derecognition (decrease
in the scope of the lease
and terminations of lease
agreements)

(3,497)

6,048

Interest accrued

−

(49,880)

Payments

−

115,894

Effect of changes in foreign
exchange rates

−

667

At 31 December 2022

508,543

(591,160)

Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities
and the movements during the period:

Leases

Group as a lessee

The Group has lease contracts for land and buildings used
in its operations. Leases of land and buildings generally
have fixed lease terms between 5 and 45 years and contain
extension options provided by the law. However vast
majority of lease contracts include cancellation options on
2–12 months’ notice.

Lease terms are negotiated on an individual basis and
contain a wide range of different terms and conditions. The
lease agreements do not impose any covenants other than
the security interests in the leased assets that are held by
the lessor.

Right-of-use assets

(land and buildings)

Lease

liabilities

At 1 January 2021

480,511

(548,501)

Additions

96,964

(96,555)

Acquisition of businesses
(Note 7)

3,928

(3,928)

Depreciation expense

(74,601)

−

Impairment charge

(1,596)

−

Reversal of impairment

966

−

Derecognition (decrease
in the scope of the lease
and terminations of lease
agreements)

(3,847)

6,787

Interest accrued

−

(40,572)

Payments

−

105,182

Effect of changes in foreign
exchange rates

−

224

At 31 December 2021

502,325

(577,363)

184

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Leases

The expenses related to short-term leases for the
year ended 31 December 2022 amounted to RUB 100
(31 December 2021: 97). The expense related to variable
lease payments not included in the measurement of lease
liabilities for the year ended 31 December 2022 amounted
to RUB 19,825 (31 December 2021: 14,444). Variable lease
payments are mainly linked to sales generated from a store.
Variable payment terms are used for a variety of reasons,
including minimising the fixed costs base.

The total cash outflow for leases for the year ended
31 December 2022 amounted to RUB 135,546 (2021:
RUB 119,238).

Maturity analysis of the lease liabilities is disclosed in the
Note 31.

As at 31 December 2022 potential future cash outflows
of RUB 3,529 (undiscounted) (31 December 2021: 3,134)
have not been included in the lease liability because it
was assessed reasonably certain that the leases will be
terminated.

Group as a lessor

The lease arrangements are operating leases, the majority
of which are short-term. The future minimum lease and
sublease payments receivable under operating leases were
as follows:

31 December

2022

31 December

2021

Within 1 year

3,382

2,928

Between 1 and 2 years

638

403

Between 2 and 3 years

432

329

Between 3 and 4 years

315

272

Between 4 and 5 years

212

138

Later than 5 years

364

418

Total

5,343

4,488

The rental income from operating leases recognised
in the consolidated statement of profit or loss for the
year ended 31 December 2022 amounted to RUB 7,214
(2021: RUB 7,007) (Note 26). The contingent rents
recognised in the consolidated statement of profit or loss
in the year ended 31 December 2022 amounted to RUB 221
(2021: 202).

Income from subleasing right-of-use assets under
operating lease agreement for the year ended 31 December
2022 amounted to RUB 2,763 (2021: RUB 2,618).

Impairment test

At the end of 2022 management performed an impairment
test of right-of-use assets. The evaluation performed
and reasons for it are consistent with the approach for
impairment testing of Property, Plant and Equipment
(Note 10).

In an ordinary course of the business the Group constantly
arranges for leases of new premises and land. As at
31 December 2022 and 31 December 2021 the Group
had a certain number of leases to which the Group was
committed but the lease did not commence. The Group
assesses that the amount of future cash outflows to which
the lessee is potentially exposed is not significant.

In 2022 the Group completed a sale and leaseback
transaction in respect of a number of stores located in
Bashkortostan. The cash proceeds amounted to RUB 970
recognised in the consolidated statement of cash flows,
the loss from sale amounted to RUB 25 recognised in the
consolidated statement of profit or loss for the year ended
31 December 2022. When measuring the lease liability, the
Group included fixed lease payments per lease agreement
and the estimate of variable payments calculated as
a percentage of the expected revenue generated from the
leased asset. The lease term of the leaseback was 14 years.

In 2021 the Group completed a sale and leaseback
transaction in respect of a store located in Saint-
Petersburg. The cash proceeds amounted to RUB
594 recognised in the consolidated statement of cash
flows and gain amounted to RUB 124 recognised in the
consolidated statement of profit or loss for the year ended
31 December 2021. When measuring the lease liability, the
Group included fixed lease payments per lease agreement
and the estimate of variable payments calculated as
a percentage of the expected revenue generated from the
leased asset. The lease term of the leaseback was 12 years.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

185

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Investment properties

The Group held the following investment properties at 31 December 2022 and 31 December 2021:

2022

2021

COST

Cost at 1 January

7,909

8,356

Transfer from fixed assets

1,605

−

Disposals

(467)

(447)

Cost at 31 December

9,047

7,909

ACCUMULATED DEPRECIATION AND IMPAIRMENT

Accumulated depreciation and impairment at 1 January

(3,448)

(3,854)

Depreciation charge

(176)

(169)

Impairment charge

(483)

(65)

Reversal of impairment

251

408

Transfer from fixed assets

(911)

−

Disposals

293

232

Accumulated depreciation and impairment at 31 December

(4,474)

(3,448)

Net book value at 31 December

4,573

4,461

Net book value at 1 January

4,461

4,502

Depreciation charge, impairment charge and reversal
of impairment are included in selling, general and
administrative expenses in the consolidated statement of
profit or loss for the years ended 31 December 2022 and
31 December 2021.

The Group’s investment properties consist of land and
buildings. Rental income from investment property
amounted to RUB 1,165 (2021: RUB 1,140). Direct operating
expenses incurred by the Group in relation to investment
property amounted to RUB 937 (2021: RUB 796). There
were no significant direct operating expenses incurred by
the Group in relation to investment property that did not
generate rental income.

Management estimates that the fair value of investment
property at 31 December 2022 amounted to RUB 6,861
(31 December 2021: RUB 6,700). The fair value was
estimated using market approach with key inputs being
rent income rates and market value of comparable assets.

Impairment test

At the end of 2022 management performed an impairment
test of investment property. The evaluation performed
and reasons for it are consistent with the approach for
impairment testing of Property, Plant and Equipment
(Note 10).

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

186

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Goodwill

Goodwill impairment test

For the purposes of impairment testing, goodwill is
allocated to groups of cash-generating units (groups of
CGUs) being store chains of each format and dark kitchens.
This represents the lowest level within the Group at
which the goodwill is monitored for internal management
purposes.

The group of CGUs to which goodwill has been allocated
is tested for impairment annually or more frequently if
there are indications that the particular group of CGUs
might be impaired. Goodwill is tested for impairment at
the group of CGUs level by comparing carrying values of
particular group of CGU assets including allocated goodwill
to their value in use. The Karusel group of CGUs started
reorganisation in 2019. The reorganisation is expected to
be finalised in 2023. The reorganisation resulted in disposal
of goodwill allocated to Karusel in amount of RUB 6,567
and its accumulated impairment in the same amount and
impairment charge for the year ended 31 December 2022 in
amount of RUB 255 (2021: RUB 980).

Movements in goodwill arising on the acquisition of businesses at 31 December 2022 and 31 December 2021 were:

2022

2021

COST

Gross book value at 1 January

172,099

171,202

Acquisition of businesses (Note 7)

8,176

1,118

Disposal

(6,567)

(221)

Gross book value at 31 December

173,708

172,099

ACCUMULATED IMPAIRMENT LOSSES

Accumulated impairment losses at 1 January

(67,071)

(66,312)

Impairment charge

(275)

(980)

Disposal

6,567

221

Accumulated impairment losses at 31 December

(60,779)

(67,071)

Carrying amount at 1 January

105,028

104,890

Carrying amount at 31 December

112,929

105,028

187

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Goodwill

Goodwill impairment test (continued)

Value in use

For items of land, buildings and construction in progress
the discounted future cash flow approach is applied
and covers a 10-year period from 2023 onwards. The
Group believes that use of 10 year forecast better reflects
expected future cash flows of its cash generating units
due to cyclical nature of their renovation expenditures.
The future cash flows are based on the current budgets
and forecasts approved by the management. For the
forecast period, the data of the strategic business plan
are extrapolated based on the consumer price indices as
obtained from external resources and key performance
indicators inherent to the strategic plan. One of the main
assumptions used for the forecast period is revenue growth
being in the range from 4.00% to 6.91% in accordance with
the internal forecasts based on budget and consumer price
index projections (31 December 2021: 4.00% to 7.86%).
For the years beyond the forecast period the long-term
consumer price index forecast of 4.00% at 31 December
2022 is used (31 December 2021: 4.00%). The projections
are made in the functional currency of the Group’s entities,
being Russian Rouble, on a pre-tax basis and discounted
at the Group pre-tax weighted average cost of capital
which is then adjusted to reflect the risks specific to the
respective assets (cash-generating units (CGUs)) – 15.92%

Pyaterochka

Perekrestok

Other

Total

31 December 2022

Goodwill

81,258

23,334

8,337

112,929

31 December 2021

Goodwill

80,756

23,334

938

105,028

The allocation of carrying amounts of goodwill to each group of CGUs was as follows:

(31 December 2021: 13.39%). Inflation rates are in line
with the consumer price index forecast published by the
Ministry of Economic Development of Russian Federation.
The Group’s management believes that all of its estimates
are reasonable and consistent with the internal reporting
and reflect management’s best knowledge.

The changes in assumptions applied in the model used
for impairment testing do not indicate any trigger for
impairment because the fair value less cost of disposal and
the value in use are significantly higher than the carrying
values of the cash generating unit assets.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

188

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other intangible assets

The majority of additions of software are represented
with internally generated development costs. Brand and
private labels includes brand “Pyaterochka” with the
carrying amount of RUB 4,029 (31 December 2021: RUB
4,029), brand “Karusel” with the carrying amount of RUB
42 (31 December 2021: RUB 298) and brands “Krasny Yar”,
“Baton”, “Slata”, “KhlebSol” with the carrying amount of
RUB 1,630.

Amortisation charge, impairment charge and reversal
of impairment are included in selling, general and
administrative expenses in the consolidated statement
of profit or loss for the years ended 31 December 2022
and 31 December 2021.

Impairment test

At the end of 2022 management performed an impairment
test of brands.

For private labels the evaluation performed and reasons
for it are consistent with the approach for impairment
testing of property, plant and equipment (Note 10). For
brands, which are tested annually for impairment, evaluation
performed is consistent with the approach for goodwill
(Note 13).

Also the Group recognised an impairment of software
which was no longer used.

Other intangible assets comprise the following:

Brand and private labels

Software and other

Total

COST

At 1 January 2021

16,843

42,302

59,145

Additions

−

16,520

Acquisition of businesses (Note 7)

−

Disposals

−

(415)

At 31 December 2021

16,843

58,417

75,260

Additions

−

12,221

Assets from acquisitions

1,725

138

1,863

Disposals

–

(5,057)

At 31 December 2022

18,568

65,719

84,287

ACCUMULATED AMORTISATION AND IMPAIRMENT

At 1 January 2021

(12,439)

(15,949)

(28,388)

Amortisation charge

(76)

(7,846)

(7,922)

Impairment charge

−

(352)

Disposals

−

408

At 31 December 2021

(12,515)

(23,739)

(36,254)

Amortisation charge

(352)

(10,291)

(10,643)

Impairment charge

–

(3,918)

Disposals

–

4,855

At 31 December 2022

(12,867)

(33,093)

(45,960)

Net book value at 31 December 2022

5,701

32,626

38,327

Net book value at 31 December 2021

4,328

34,678

39,006

Net book value at 1 January 2021

4,404

26,353

30,757

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

190

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Financial instruments

by category

31 December 2022

31 December 2021

FINANCIAL ASSETS AT AMORTISED COST

Assets as per consolidated statement of financial position

Short-term financial investments

50,067

50,092

Trade and other receivables excluding prepayments

15,462

15,338

Cash and cash equivalents

43,255

26,062

Total

108,784

91,492

31 December 2022

31 December 2021

FINANCIAL LIABILITIES AT AMORTISED COST

Liabilities as per consolidated statement of financial position

Lease liabilities

591,160

577,363

Borrowings

234,532

294,338

Interest accrued

1,143

1,792

Trade, other current and non-current payables
excluding statutory liabilities and advances

324,382

290,074

Total

1,151,217

1,163,567

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

191

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Trade, other accounts

receivable and

prepayments

31 December 2022

31 December 2021

Trade accounts receivable

13,123

11,499

Other receivables

3,117

4,658

Allowance for expected credit losses of trade and other receivables

(778)

(819)

Total trade and other accounts receivable

15,462

15,338

Prepayments

4,631

4,327

Advances made to trade suppliers

2,076

1,086

Allowance for impairment of prepayments and advances

(787)

(561)

Total prepayments

5,920

4,852

Total

21,382

20,190

The carrying amounts of the Group’s trade and other
receivables were primarily denominated in Russian Roubles.
Trade receivables and other receivables are non-interest
bearing and are generally on terms of 30 to 90 days.

192

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Trade, other accounts

receivable and

prepayments

Trade receivables

Trade receivables are mainly bonuses from suppliers
of goods for resale with a low historic default rate. The
maximum exposure to credit risk at the reporting date was
the carrying amount of each class of receivable. The Group
did not hold any collateral as security.

Movements on the allowance for expected credit losses of trade receivables were as follows:

Expected

credit loss rate

at 31 December 2022

Estimated total gross

carrying amount

at default

31 December 2022

Expected

credit loss

31 December 2022

Expected

credit loss rate

at 31 December 2021

Estimated total gross

carrying amount

at default

31 December 2021

Expected

credit loss

31 December 2021

Not overdue − 1 month

0.16%

12,582

0.28%

11,018

1–6 months

2.80%

214

3.91%

256

6–12 months

40.32%

45.16%

Over 1 year

75.85%

265

201

71.17%

163

116

Total

13,123

252

11,499

185

2022

2021

At 1 January

(185)

(472)

Addition of allowance for expected credit losses

(308)

(110)

Release of allowance for expected credit losses

104

Trade receivables written off as uncollectable

211

293

At 31 December

(252)

(185)

Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix:

The creation and release of the allowance for expected credit losses have been included in net impairment losses
on financial assets in the consolidated statement of profit or loss.

193

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

(expressed in millions of Russian Roubles,
unless otherwise stated)

Trade, other accounts

receivable and

prepayments

Other receivables

The maximum exposure to credit risk at the reporting date
was the carrying amount of each class of receivable. The
Group did not hold any collateral as security.

Movements on the allowance for expected credit losses of other receivables were as follows:

Expected

credit loss rate

at 31 December 2022

Estimated total gross

carrying amount

at default

31 December 2022

Expected

credit loss

31 December 2022

Expected

credit loss rate

at 31 December 2021

Estimated total gross

carrying amount

at default

31 December 2021

Expected

credit loss

31 December 2021

Not overdue − 1 month

0.41%

1,930

0.85%

2,695

1–6 months

11.98%

668

9.07%

739

6–12 months

43.37%

44.12%

204

Over 1 year

92.20%

436

402

44.51%

1,020

454

Total

3,117

526

4,658

634

2022

2021

At 1 January

(634)

(609)

Addition of allowance for expected credit losses

(270)

(356)

Release of allowance for expected credit losses

202

208

Trade receivables written off as uncollectable

176

123

At 31 December

(526)

(634)

Set out below is the information about the credit risk exposure on the Group’s other receivables using a provision matrix:

The creation and release of the allowance for expected credit losses have been included in net impairment losses
on financial assets in the consolidated statement of profit or loss.

X5 Retail Group. Годовой отчет за 2022 год (на английском) - часть 12