содержание .. 11 12 13 14 ..

X5 Retail Group. Годовой отчет за 2022 год (на английском) - часть 13

194

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

Prepayments and advances made
to trade suppliers

The creation and release of the allowance for impaired
prepayments have been included in general and
administrative costs in the consolidated statement of profit
or loss.

The individually impaired prepayments mainly related to
debtors that expected financial difficulties or there was
likelihood of the debtor’s insolvency. It was assessed
that a portion of the prepayments was expected to be
recovered.

2022

2021

At 1 January

(561)

(500)

Addition of allowance for prepayments and advances to trade suppliers
impairment

(545)

(372)

Release of allowance for prepayments and advances to trade suppliers
impairment

133

151

Prepayments and advances to trade suppliers written off as uncollectable

186

160

At 31 December

(787)

(561)

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

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

195

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

VAT and other taxes

receivable

31 December 2022

31 December 2021

VAT receivable

8,794

8,462

Other taxes receivable

213

340

Total

9,007

8,802

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

196

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Provisions

and other liabilities

31 December 2022

31 December 2021

Other accounts payable and accruals

34,212

31,896

Accrued salaries and bonuses

28,266

26,153

Accounts payable for property, plant and equipment

15,837

16,191

Taxes other than income tax

37,872

21,261

Advances received

1,796

1,680

Payables to landlords

1,771

1,443

Provisions and liabilities for tax uncertainties (Note 35)

10,696

6,049

Total

130,450

104,673

There were no significant amounts of other payables to foreign counterparties
as at 31 December 2022 and 31 December 2021.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

197

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Contract liabilities

31 December 2022

31 December 2021

Short-term contract liabilities

Short-term contract liabilities related to loyalty programmes

3,487

2,146

Advances received from wholesales customers

Advances received from other customers

238

206

Total

3,767

2,392

2022

2021

At 1 January

2,146

1,955

Deferred during the year

11,949

2,146

Recognised at acquisition of businesses (Note 7)

–

Recognised as revenue during the year

(10,634)

(1,955)

At 31 December

3,487

2,146

Movements in short-term contract liabilities related to loyalty programmes comprise the following:

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

198

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Borrowings

The Group had the following borrowings at 31 December 2022 and 31 December 2021:

FAIR VALUE

CARRYING VALUE

Final maturity year

2022

2021

2022

2021

CURRENT

RUB Bonds X5 Finance series BО-07

5,023

−

5,000

RUB Bonds X5 Finance series 001P-06

−

9,920

−

9,999

RUB Bonds X5 Finance series 001P-05

−

5,017

−

4,999

RUB Bonds X5 Finance series 001Р-10

−

9,875

−

9,998

RUB Bonds X5 Finance series 001Р-07

−

4,967

−

4,999

RUB Bonds X5 Finance series BО-05

2023

−

RUB Bonds X5 Finance series BО-04

−

2,091

−

2,150

RUB Bonds X5 Finance series BО-06

−

1,201

−

1,201

RUB Bonds X5 Finance series 001Р-11

−

9,726

−

9,994

RUB Bonds X5 Finance series 001Р-08

−

4,915

−

4,998

RUB Bonds X5 Finance series 001Р-09

−

4,915

−

4,998

RUB Bonds X5 Finance series 001P-01

2023

−

RUB Bonds X5 Finance series 001P-03

2023

−

RUB Bonds X5 Finance series 001Р-12

2023

9,906

−

9,996

−

RUB Bonds X5 Finance series 001P-02

2023

−

RUB Bilateral Loans

2023

76,989

29,431

76,989

29,431

Total current borrowings

87,058

87,081

87,146

87,767

In December 2022 the Group issued RUB 20,000
exchange-registered corporate bonds series 002P-02
with 8.90% coupon rate with put-option in 2.5 years and
RUB 14,000 exchange-registered corporate bonds series
002P-03 with 8.68% coupon rate with call-option in
2.25 years.

The weighted average effective interest rate on X5’s
total borrowings for the year ended 31 December 2022
comprised 8.64% per annum (year ended 31 December
2021: 6.56%).

All borrowings at 31 December 2022 are shown net of
related transaction costs of RUB 129 which are amortised
over the term of the loans using the effective interest
method (31 December 2021: RUB 119). Borrowing costs
capitalised for the year ended 31 December 2022
amounted to RUB 13 (for year ended 31 December 2021:
RUB 24). The capitalisation rate used to determine the
amount of borrowing costs eligible for capitalisation was
approximate to weighted average effective interest rate for
the period.

Change in total borrowings in amount of RUB 59,806 in
2022 equals to the proceeds from borrowings in amount
of RUB 148,974, repayment of borrowings in amount of
RUB 210,615 (the Consolidated Statement of Cash Flows),
increase due to acquisitions during the year recorded as
part of the purchase price allocation (Note 7) in the amount
of RUB 1,819 and other non-cash movements in amount of
RUB 70 plus amortisation of transaction costs in amount
of RUB 86. Changes in lease liabilities which also form
liabilities arising from financing activities are disclosed in
the Note 11.

1 In case of the Group’s Bonds − the next put/call option date.

199

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)

Borrowings

Change in total borrowings in amount of RUB 32,391 in
2021 equals to the proceeds from borrowings in amount of
RUB 132,345, repayment of borrowings in amount of RUB
99,585 (the Consolidated Statement of Cash Flows) and
other non-cash movements in amount of RUB 447 plus
amortisation of transaction costs in amount of RUB 78.
Changes in lease liabilities which also form liabilities arising
from financing activities are disclosed in the Note 11.

In accordance with a few loan agreements, the Group
maintains an optimal leverage ratio by tracking covenant:
the maximum level of Net Debt/EBITDA pre-IFRS 16
(4.00/4.25 during 2 quarters after acquisition). At 31
December 2022 the Group complied with this covenant
and Net Debt/EBITDA pre-IFRS 16 was equal to 1.02 (31
December 2021: 1.67). Metric EBITDA specified in all loan
agreements is equal to EBITDA pre-IFRS 16 (for calculation
please refer to Note 5).

FAIR VALUE

CARRYING VALUE

Final maturity year

2022

2021

2022

2021

NON-CURRENT

RUB Bonds X5 Finance series BО-05

−

RUB Bonds X5 Finance series 001P-01

−

RUB Bonds X5 Finance series 001P-02

−

RUB Bonds X5 Finance series 001P-03

−

RUB Bonds X5 Finance series 001P-12

−

9,609

−

9,989

RUB Bonds X5 Finance series 002P-01

2024

9,860

9,951

9,992

9,998

RUB Bonds X5 Finance series 002P-02

2025

19,972

−

19,956

−

RUB Bonds X5 Finance series 002P-03

2025

13,930

−

13,969

−

RUB Bilateral Loans

2025

101,279

179,255

103,469

186,423

Total non-current borrowings

145,041

198,971

147,386

206,571

Total borrowings

232,099

286,052

234,532

294,338

1 In case of the Group’s Bonds − the next put/call option date.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

200

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Share capital

As at 31 December 2022 the Group had 190,000,000
authorised ordinary shares (31 December 2021:
190,000,000) of which 67,888,696 ordinary shares were
outstanding (31 December 2021: 67,888,696) and 4,521
ordinary shares in amount of RUB 41 were held as treasury
stock (31 December 2021: 4,521 ordinary shares in amount
of RUB 41). The nominal par value of each ordinary share is
EUR 1.

Dividends approved for distribution at the General Meeting
in May 2021 have been paid in the amount of RUB 30,006
during the year ended 31 December 2021 (RUB 441.99 per
share).

In December 2021 interim dividends proposed by
the Supervisory Board for the nine months ended
30 September 2021 have been paid in amount of
RUB 20,000 (RUB 294.60 per share).

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

201

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Earnings per share

Basic earnings per share are calculated by dividing the profit or loss attributable to equity holders of the Company
by the weighted average number of ordinary shares in issue during the year, excluding treasury shares.

2022

2021

Profit attributable to equity holders of the parent

45,199

42,738

Weighted average number of ordinary shares in issue

67,888,696

67,886,315

Effect of share options granted to employees, number of shares

−

1,801

Weighted average number of ordinary shares for the purposes of diluted earnings per share

67,888,696

67,888,116

Basic earnings per share for profit (expressed in RUB per share)

665.78

629.55

Diluted earnings per share for profit (expressed in RUB per share)

665.78

629.54

Earnings per share were calculated as follows:

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

202

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Revenue

2022

Pyaterochka

Perekrestok

Other segments

Total

Revenue from sale of goods through own stores
(at a point of time)

2,089,270

385,025

87,798

2,562,093

Revenue from sale of goods through franchisees
(at a point of time)

33,523

470

−

33,993

Revenue from wholesale of goods (at a point of time)

572

104

3,571

4,247

Revenue from other services (over time)

1,252

600

3,047

4,899

Total

2,124,617

386,199

94,416

2,605,232

2021

Pyaterochka

Perekrestok

Other segments

Total

Revenue from sale of goods through own stores
(at a point of time)

1,770,731

348,553

51,858

2,171,142

Revenue from sale of goods through franchisees
(at a point of time)

22,946

389

−

23,335

Revenue from wholesale of goods (at a point of time)

372

1,596

3,558

5,526

Revenue from other services (over time)

969

562

3,285

4,816

Total

1,795,018

351,100

58,701

2,204,819

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

203

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Expenses by nature

2022

2021

Cost of goods sold

1,893,469

1,580,063

Staff costs (Note 28)

248,368

218,948

Lease expenses
(Note 11)

19,925

14,541

Depreciation,
amortisation

153,950

145,554

Impairment of
non-current assets

10,781

4,724

Other store costs

34,693

31,430

Utilities

54,147

47,935

Net impairment losses
on financial assets

346

154

Other

74,460

67,775

Total

2,490,139

2,111,124

2022

2021

Audit of financial
statements

Other assurance
services performed by
other companies being
part of external auditor’s
network

Non-audit services by
other companies being
part of external auditor’s
network

Total

129

120

Other expenses included impairment of prepayments in
amount to RUB 412 in 2022 (2021: RUB 221).

The fees listed below related to the procedures applied
to the Group by accounting firms and external auditors
as referred to in article 1(1) of the Dutch Accounting Firms
Oversight Act (Dutch acronym: Wta):

In addition to the statutory audit of the financial statements
the members of the group, comprising the external auditor
entity in Russia, provided non-audit services in the areas of
retail pricing proof and business trainings.

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

204

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Lease/sublease

and other income

2022

2021

Lease/sublease income (Note 11)

7,214

7,007

Income from sales of waste

8,391

8,412

Gain on derecognition of right-of-use assets and lease liabilities

2,551

2,940

Other

4,869

5,518

Total

23,025

23,877

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

205

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Finance income

and costs

2022

2021

Interest expense on lease liabilities

49,877

40,562

Interest expense on borrowings

22,535

16,412

Interest income

(5,248)

(154)

Other finance costs, net

1,253

409

Total

68,417

57,229

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

206

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Staff costs

2022

2021

Wages and salaries

194,883

171,225

Social security costs

53,472

47,634

Share-based payments expense

Total

248,368

218,948

Wages and salaries include expenses for outstaffing and
outsourcing services. Wages and salaries in 2022 included
expenses of RUB 2,171 related to the long-term incentive
programme (LTI) for key employees, including members of
the Management Board, other key management and other
key employees (2021: RUB 2,535). The liability for LTI in
amount of RUB 3,869 (including social security costs) was
included in other non-current liabilities in the consolidated
statement of financial position as at 31 December 2022
(31 December 2021: RUB 1,525) and in amount of RUB 105
(including social security costs) in provisions and other
liabilities in the consolidated statement of financial position
(31 December 2021: RUB 2,403).

Social security costs in 2022 included pension
contributions amounted to RUB 35,178 (2021: RUB 32,052).

The number of employees as at 31 December 2022
amounted to 353,196 (31 December 2021: 340,928).

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

207

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Share-based payments

Restricted Stock Unit Plan

Under the remuneration policy for members of the
Supervisory Board, Supervisory Board members were
entitled to annual awards of restricted stock units (RSUs)
under the Group’s Restricted Stock Unit Plan (RSU Plan).
RSU awards to members of the Supervisory Board were
not subject to performance criteria, and determined by the
General Meeting of Shareholders.

Since the trading of X5 GDRs at the London Stock
Exchange was suspended in March 2022, the General
Meeting of Shareholders approved in its extraordinary
meeting on 30 November 2022 a new phantom stock
plan for eligible Supervisory Board members. The new
plan replaces the RSU Plan that was terminated on
22 September 2022. In accordance with termination
conditions under the RSU Plan, 46,704 RSUs vested and
were settled in cash based on the X5 GDR value at the
Moscow Exchange on 22 September 2022. a total number
of 50,496 RSUs were forfeited during the year ended
31 December 2022.

For the remaining outstanding RSUs, the General Meeting
of Shareholders approved the option to settle RSUs in cash
upon vesting on the GDR value at Moscow Exchange or
other Exchange where GDRs are primarily traded at the
time of vesting.

At 31 December 2022 the carrying amount of liability
related to RSU was RUB 24 (31 December 2021: Nil),
the equity component was RUB 38 (31 December 2021:
RUB 118). The fair value of services received in return for
the conditional RSUs granted to employees is measured
by reference to the market price of the GDRs which is
determined at grant date.

Details of the conditional rights outstanding were as follows:

Expenses recognised during the year for the RSU Plan were as follows:

Number

of conditional rights

Weighted average

fair value, RUB

Number

of conditional rights

Weighted average

fair value, RUB

Outstanding at the beginning

of the period

120,448

2,156.84

116,479

2,025.96

Awarded during the period

–

47,319

2,243.40

Vested during the period

(46,704)

2,114.72

(39,643)

1,878,34

Forfeited during the period

(50,496)

2,167.29

(3,707)

2,127.76

Outstanding at the end of the period

23,248

2,218.76

120,448

2,156.84

2022

2021

Equity settled RSU (benefit)/expenses

(3)

Cash settled RSU expenses

–

Total

2022

2021

208

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)

Number

of conditional rights

Weighted average

fair value, RUB

Number

of conditional rights

Weighted average

fair value, RUB

Outstanding at the beginning

of the period

–

Awarded during the period

38,925

1,049.50

–

Outstanding at the end of the period

38,925

1,049.50

–

Share-based payments

Phantom Stock Unit Plan

Members of the Supervisory Board are entitled to annual
awards of phantom stock units (PSUs) under the Group’s
Phantom Stock Unit Plan (PSU Plan) approved by the
General Meeting of Shareholders on November 2022.
PSUs awards to members of the Supervisory Board are not
subject to performance criteria, and PSUs are converted
into cash after a three-year vesting period.

During the year ended 31 December 2022 a total number
of 38,925 PSUs were awarded under tranche 1 of the PSU
Plan and will vest in 2025.

In total during the year ended 31 December 2022
the Group recognised expense related to the PSU Plan
in the amount of RUB 10 (expense during the year ended
31 December 2021: Nil).

At 31 December 2022 the carrying amount of liability
related to PSU was RUB 10 (31 December 2021: Nil). The fair
value of services received in return for the conditional PSUs
granted to employees is measured by reference to the
market price of the GDRs which is determined at grant date.

Details of the conditional rights outstanding were as follows:

2022

2021

Notes to the сonsolidated

financial statements

for the year ended 31 December 2022

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

209

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Income tax

The theoretical and effective tax rates are reconciled as follows:

1 Profit before taxation on Russian operations is assessed based on the statutory rate of 20%.

2022

2021

Current income tax charge

21,186

22,190

Deferred income tax charge / (benefit)

1,295

(4,186)

Income tax charge for the year

22,481

18,004

2022

2021

Profit before taxation

67,669

60,742

Theoretical tax at the effective statutory rate

13,534

12,148

Tax effect of items which are not deductible or assessable for taxation purposes

Current tax on dividends distributed by the Group’s subsidiaries

–

5,305

Change in deferred tax liability associated with investments in subsidiaries

–

(1,580)

Expenses on inventory shortage

400

337

Unrecognised tax loss carry forwards for the year

153

Effect of income taxable at rates different from standard statutory rates

(6)

Adjustments in respect of current income tax of previous years

1,600

–

Deferred tax expenses arising from deferred tax asset write down

1,599

–

Other non-deductible expense

5,338

1,627

Income tax charge for the year

22,481

18,004

As at 31 December 2022 37 Russian subsidiaries of the
Group were the members of the CGT (consolidated group
of taxpayers) with X5 Corporate Center LLC acting as
a responsible CGT member. At 1 January 2023 the CGT
agreement was terminated and the former members
of the CGT started accounting for income tax on
standalone basis.

содержание .. 11 12 13 14 ..