X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 29

FINANCIAL STATEMENTS

226

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

22

Share 

capital

As at 31 December 2021 the Group had 190,000,000 
authorised ordinary shares (31 December 2020: 
190,000,000) of which 67,888,696 ordinary shares 
were outstanding (31 December 2020: 67,882,444) and 
4,521 ordinary shares in amount of RUB 41 were held 
as treasury stock (31 December 2020: 10,774 ordinary 
shares in amount of RUB 92). The nominal par value of 
each ordinary share is EUR 1.

Dividends approved for distribution at the General 
Meeting in May 2020 have been paid in the amount of 
RUB 29,996 during the year ended 31 December 2020 
(RUB 441.88 per share).

In December 2020 interim dividends proposed by 
the Supervisory Board for the nine months ended 
30 September 2020 have been paid in amount of 
RUB 19,997 (RUB 294.58 per share).

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).

FINANCIAL STATEMENTS

227

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

23

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.

Earnings per share were calculated as follows:

2021

2020

Profit attributable to equity holders of the parent

 42,738 

 28,344 

Weighted average number of ordinary shares in issue

 67,886,315 

 67,883,361 

Effect of share options granted to employees, number of shares

 1,801 

 3,135 

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

 67,888,116 

 67,886,496 

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

 629.55 

 417.54 

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

 629.54 

 417.52 

FINANCIAL STATEMENTS

228

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

24

Revenue

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 

 

2020

PyateRoChKa

PeReKReStoK

otheR SeGmeNtS

total

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

 1,581,157 

 307,292 

68,441

 1,956,890 

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

 16,017 

 438 

 −

 16,455 

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

 215 

 1,156 

 963 

 2,334 

Revenue from other services (over time)

 926 

 574 

847

 2,347 

TOTAL

 1,598,315 

 309,460 

70,251

 1,978,026 

FINANCIAL STATEMENTS

229

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

25

expenses  

by nature

2021

2020

Cost of goods sold

1,580,063

1,427,974

Staff costs (Note 28)

218,948

188,863

Lease expenses (Note 11)

14,541

11,286

Depreciation, amortisation

145,554

132,877

Impairment of non-current assets

4,724

5,028

Other store costs

31,430

29,664

Utilities

47,935

41,940

Net impairment losses  
on financial assets

154 

251 

Other

67,775 

52,163 

TOTAL

2,111,124

1,890,046

Other expenses included impairment of prepayments in 
amount to RUB 221 in 2021 (2020: RUB 237).

The fees listed below related to the procedures applied 
to the Group by Ernst & Young Accountants LLP and 
Other EY Network as referred to in article 1(1) of the 
Dutch Accounting Firms Oversight Act (Dutch acronym: 
Wta):  

2021

2020

Statutory audit of financial 
statements performed by Ernst & 
Young Accountants LLP

 26 

 26 

Statutory audit of financial 
statements performed by Other EY 
Network

 44 

 46 

Other assurance services 
performed by Other EY Network

 7 

 — 

Non-audit services by Other EY 
Network

43

40

TOTAL

120

112

In addition to the statutory audit of the financial 
statements the EY member firm in Russia provided 
non-audit services in the areas of supply chain network 
design, retail pricing proof, business trainings and tax 
advisory. 

The external auditor of the Group is Ernst & Young 
Accountants LLP.

FINANCIAL STATEMENTS

230

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

26

lease / sublease  

and other income

2021

2020

Lease / sublease income (Note 11)

 7,007 

 6,284 

Income from sales of waste

 8,412 

 3,820 

Other 

 8,458 

 7,633 

TOTAL

 23,877 

 17,737 

FINANCIAL STATEMENTS

231

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

27

Finance income  

and costs

2021

2020

Interest expense on lease liabilities

 40,562

 39,916

Interest expense on borrowings

 16,412

 15,191

Interest income

(154)

(44)

Other finance costs, net

 409

 1,573

TOTAL

 57,229

 56,636

FINANCIAL STATEMENTS

232

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

28

Staff costs 

Total compensation of key management personnel: 

2021

2020

Management Board and Executive Board

 1,558 

 1,543

Supervisory Board

 198 

 162

TOTAL 

 1,756 

 1,705

Wages and salaries in 2021 included expenses 
of RUB 2,535 related to the long-term incentive 
programme (LTI) for key employees, including members 
of the Management Board, other key management and 
other key employees (2020: RUB 247).

Social security costs in 2021 included pension 
contributions amounted to RUB 32,052 (2020: 
RUB 28,024).

The number of employees as at 31 December 2021 
amounted to 340,928 (31 December 2020: 339,716).

Key management personnel

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 CEO is a member of both the 
Management Board and the Executive Board. 

At the end of 2021 the Executive Board consisted of 
nine members. The total direct compensation for the 
CEO and other Executive Board members consists of a 
base salary, a performance related annual cash incentive 
(STI) and a performance related long-term cash incentive 
(LTI). Members of the Supervisory Board receive an 
annual base compensation in cash and share-based 
payments. 

2021

2020

Wages and salaries

171,225

147,148

Social security costs

47,634

41,655

Share-based payments expense

89

60

TOTAL

218,948

188,863

FINANCIAL STATEMENTS

233

NoteS to the CoNSolidated FiNaNCial StatemeNtS

NoteS to the CoNSolidated 

FiNaNCial StatemeNtS

for the year ended 31 December 2021 

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

28

Staff costs 

instalments. In case of breach of the non-competition 
obligations, the agreement provides for a penalty in 
the amount of two annual base salaries on a net basis, 
and repayment of the termination compensation. The 
agreement with Igor Shekhterman may be terminated by 
either party with a notice period of three months.

Frank Lhoёst

In 2021, the Company provided Frank Lhoёst with an 
annual base salary and participation in the annual cash 
incentive plan. Frank Lhoёst was re-appointed in 2019 
for another four-year term, until the annual General 
Meeting of Shareholders in 2023. His annual base salary 
is EUR 315,000. The target pay-out under the annual 
cash incentive plan is 60% of base salary and is capped 
at 120% in the event of above-target performance. The 
agreement with Frank Lhoёst provides for a severance 
payment of six month’s base salary, and may be 
terminated by either party with a notice period of two 
months.

Quinten Peer

In 2021, the Company provided Quinten Peer with an 
annual base salary and participation in the annual cash 
incentive plan. Quinten Peer was appointed in 2019 for 
a four-year term, until the annual General Meeting of 
Shareholders in 2023. His annual base salary amounts 
to EUR 275,000. The target pay-out under the annual 
cash incentive plan is 60% of base salary and is capped 
at 120% in the event of above-target performance. The 
agreement with Quinten Peer provides for a severance 
payment of six month’s base salary and may be 
terminated by either party with a notice period of two 
months.

Igor Shekhterman

In 2021 the Company provided Igor Shekhterman with 
an annual base salary, participation in the annual cash 
incentive plan and participation in the Company’s long-
term incentive plan. The 2021 Annual General Meeting 
approved the re-appointment of Igor Shekhterman, for 
another two-year term, until the annual General Meeting 
of Shareholders in 2023, whereby his annual base salary 
was increased from RUB 70 million to RUB 120 million. 
The target pay-out under the annual cash incentive plan 
is 100% of base salary and is capped at 140% in the 
event of above-target performance. The target award 
under the long-term incentive plan is 100% of base 
salary per year for the period of the implementation 
of the long-term incentive plan. As disclosed when 
Mr. Shekhterman took office in 2015, he is entitled to 
a minimum annual compensation package of USD 
4,000,000. Should the minimum annual compensation 
exceed the total annual remuneration based on fixed 
and variable components, Mr. Shekhterman shall be 
entitled to the difference upon completion of his full 
term as CEO. Furthermore, Mr. Shekhterman is eligible 
to a termination compensation of up to USD 5,000,000 
at the discretion of the Supervisory Board. Upon 
contract termination and subsequent compliance with 
non-competition obligations, Igor Shekhterman shall 
be entitled to an amount equal to the net annual base 
salary under his contract, payable in four quarterly 

RemUNeRatioN oF the maNaGemeNt BoaRd 
 

Service agreements with individual management  
Board members

Expenses recognised for remuneration of the members of the Management Board: 

Name

yeaR

BaSe 

SalaRy

 1

 

ShoRt-teRm  

iNCeNtiVe

 2

loNG-teRm 

iNCeNtiVe

 3

SoCial 

SeCURity 

CoSt

 4

total

I. Shekhterman

2021

 104 

 88 

 122 

 44 

 358 

2020

 74

59

108

34

275

F. Lhoёst

2021

 27 

 16 

 — 

 1 

 44 

2020

27

17

−

−

44

Q. Peer

2021

 24 

 15 

 — 

 1 

 40 

2020

 23

 15

−

−

38

Total 

2021

 155 

 119 

 122 

 46 

 442 

2020

124

91

108

34

357

1  The table reflects actual base salary amounts, including 

adjustments based on number  
of days spent on vacation, in accordance with Russian labour 
law. 

2  Short-term incentives are based on results achieved in 2021 

and payable in 2022. The short-term incentive levels are based 
on achievement of individual and group targets, resulting 
in payouts of 86.2% of base salary for Mr. Shekhterman 
(31 December 2020: 85.3%), 61.2% of base salary for Mr. 
Lhoёst (31 December 2020: 61.1%) and 63.2% of base salary 
for Mr. Peer (31 December 2020: 61.1%).

3  For Igor Shekhterman the expense recognised in 2021 for the 

long-term incentive award is based on the deferred payout 
under the 2018-2020 LTI programme and an accrual based on 
the probability of achieving the targets under the 2021-2023 
LTI programme.

4  For the year ended 31 December 2021 statutory pension 

contributions amounted to RUB 29 (2020: RUB 22).