X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 33

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

258

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

42

General and 

administrative  

expenses 

2021

2020

Other expenses

 702 

 659 

Audit expenses

 26 

 26 

RSU

 89 

60

TOTAL

 817 

745

Total fees as referred to in section 2:382a Dutch Civil 
Code, paid to audit firm Ernst & Young Accountants LLP 
amounted to RUB  26 (2020: RUB 26). 

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

259

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

43

income tax  

expense

2021

2020

Current tax on dividends 
distributed by the Company’s 
subsidiaries

 *

 3,784 

 1,272 

Deferred income tax benefit

 (1,654)

 (4,205)

Income tax charge / (benefit) 

for the year

 2,130 

 (2,933)

*  During 2021 the Company received dividends of RUB  105,493 

from Russian subsidiary (gross amount including current 
tax on dividends distributed by the Group’s subsidiaries of 
RUB 5,305 (Note 30)). During 2020 the Company received 
dividends of RUB 101,728 from Russian subsidiary (gross 
amount including current tax on dividends distributed by the 
Group’s subsidiaries of RUB 5,087 (Note 30)).

Theoretical and effective tax rates are reconciled as follows: 

2021

2020

Gain / (loss) before taxation

 593 

 (3,261)

Theoretical tax at the effective statutory rate

 **

 148 

 (815)

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

Change in deferred tax liability associated with investments in subsidiaries

 (1,844)

 (3,636)

Deferred tax benefit arising from the recovery of the deferred tax assets  
unrecognised in previous periods

− 

 (648)

Current tax on dividends distributed by the Group’s subsidiaries

 3,784

 1,272 

Unrecognised tax loss carry forwards for the year

− 

 759 

Other non-deductible expense

 54 

 135 

Effect of change in tax rate on deferred taxes

 **

 (12)

−

Income tax charge / (benefit) for the year

 2,130 

 (2,933)

** Profit before taxation on operations in Netherlands is assessed based on the statutory rate of 25%. Starting from 2022 profit before 

taxation on operations in Netherlands is to be assessed based on the statutory rate of 25.8%. 

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

260

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

43

income tax  

expense

Deferred tax assets and liabilities and the deferred tax charge/(benefit) in the company 
statement of profit or loss were attributable to the following items for the year ended 
31 December 2021: 

1 JanUaRy 

2021 

BalanCe  

aCQUiReD in the  

CoURSe of meRGe 

With SUBSiDiaRy

CReDiteD / 

(DeBiteD) to 

pRofit  

anD loSS

31  

DeCemBeR 

2021

Tax effects of deductible temporary differences and tax loss carry forwards

Tax losses available for carry 
forward

 569 

−

 (190) 

 379 

Gross deferred tax assets

 569 

−

 (190)

 379 

Recognised deferred tax assets

 569 

−

 (190)

 379 

Tax effects of taxable temporary differences

Investments into subsidiary

 (395)

 (1,449)

 1,844 

 — 

Gross deferred tax liabilities

 (395)

 (1,449)

 1,844 

 — 

Recognised deferred tax 

liabilities

 (395)

 (1,449)

 1,844 

 — 

Deferred income tax

The Company estimated the temporary differences 
related to unrecognised potential deferred tax assets in 
respect of unused tax loss carry forwards of RUB 2,604 
(2020: RUB 2,282) and unused tax credits of RUB 4,996 
(2020: RUB 5,051). 

At 31 December 2021 temporary differences related to 
unrecognised potential deferred tax assets and unused 
tax credits had no time restrictions for carry forward.

Deferred tax assets, deferred tax liabilities and the deferred tax benefit in the Company 
statement of profit or loss were attributable to the following items for the year ended 
31 December 2020:

1 JanUaRy 

2020 

CReDiteD / 

(DeBiteD) to 

pRofit  

anD loSS

31  

DeCemBeR 

2020

Tax effects of deductible temporary differences and tax loss carry forwards

Tax losses available for carry 
forward

−

 569 

 569 

Gross deferred tax assets

−

 569 

 569 

Recognised deferred tax assets

−

 569 

 569 

Tax effects of taxable temporary differences

Investments into subsidiary

 (4,031)

 3,636 

 (395)

Gross deferred tax liabilities

 (4,031)

 3,636 

 (395)

Recognised deferred tax 

liabilities

 (4,031)

 3,636 

 (395)

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

261

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

44

Staff numbers  

and employee  

expenses

At 31 December the number of persons (excluding 
members of the Management board and the 
Supervisory board) having an employment contract with 
the Company is nine. For the remuneration of members 
of the Management Board and the Supervisory Board, 
please refer to Note 28 in the consolidated financial 
statements, which are deemed incorporated and 
repeated herein by reference. Incurred wages, salaries 
and related social security charges in relation to the 
other employees comprise RUB 46 (included former 
employee) (2020: RUB 33, included former employee).

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

262

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

45

Contingent rights  

and liabilities

31 DeCemBeR 2021 

31 DeCemBeR 2020

Irrevocable offer to holders of X5 FINANSE LLC bonds

79,534

 74,848 

TOTAL

 79,534 

 74,848 

 
The guarantees issued mature as follows:

31 DeCemBeR 2021 

31 DeCemBeR 2020

Not later than 1 year

 59,129 

 8,967 

Later than 1 year and no later than 5 years

 20,405 

 65,881 

TOTAL

 79,534 

 74,848 

Guarantees are irrevocable assurances that the Company will make payments in the event that another party cannot 
meet its obligations. The Company had the following guarantees issued under obligations of its group companies:

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

263

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

46

Related party 

transactions

Please refer to Note 8 of the consolidated financial 
statements; all group companies are also considered 
related parties. During 2020 and 2021 there were no 
transactions with related parties outside the normal 
course of business.

StatUtoRy DiReCtoR’S CompenSation

The Company has a Management Board and a 
Supervisory Board. The total remuneration of all Board 
members as well as other key management personnel is 
disclosed in Note 28 and Note 29 of the Consolidated 
Financial Statements.

loanS to GRoUp CompanieS

For loans issued to and interest income from group 
companies please refer to Note 38.

loanS fRom GRoUp CompanieS

For loans received from and interest expenses to group 
companies please refer to Note 40.

FINANCIAL STATEMENTS

noteS to the Company finanCial StatementS 

264

noteS to the Company 

finanCial StatementS 

for the year ended 31 December 2021 

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

47

Subsequent events  

for the company

Since late February 2022 a number of countries 
(including the US, UK and EU) imposed new sanctions 
against certain entities and individuals in Russia as a 
result of the official recognition of the Donetsk People 
Republic and Lugansk People Republic by the Russian 
Federation. Announcements of potential additional 
sanctions have been made following military operations 
initiated on 24 February 2022. Such sanctions can 

Amsterdam, 19 May 2022

Management Board:

Frank Lhoёst
Igor Shekhterman
Quinten Peer

directly impact the sanctioned entities and individuals, 
and entities under their control. The Company and 
its subsidiaries are not subject to any sanctions or 
restrictions at the moment, but is likely to encounter 
challenges due to sanctions on financial system and 
certain imports into Russia. For the management 
considerations of the potential risks arisen from recent 
geopolitical changes please refer to the section “How 
we manage risk” of the Annual report.

Supervisory Board:

Peter Demchenkov
Marat Atnashev
Nadia Shouraboura 
Alexander Tynkovan

STATUTORY PROFIT APPROPRIATION

In Article 30 of the Company’s Articles of Association 
the following has been stated concerning the 
appropriation of result:

On proposal of the Supervisory Board, the General 
Meeting shall determine which part of the profits 
earned in a financial year shall be added to the 
reserves and the allocation of the remaining profits.

SUBSEQUENT EVENTS

For subsequent events, please refer to Notes 36 and 
47 of the financial statements.

EXPLANATION ON THE ABSENCE  
OF THE INDEPENDENT AUDITOR’S REPORT

In connection with the ongoing conflict between 
Russia and Ukraine, X5’s external auditor, Ernst 
& Young Accountants LLP, Netherlands (‘EY’), 
suspended their audit services for X5 to assess their 
ability to continue the audit of the financial statements 
despite the fact that the Company is not subject 
to sanctions.

The Group believes that there are no circumstances 
preventing the issuance of the auditor’s report on the 
Group consolidated and Company financial statements 
for the year 2021, and that these financial statements 
give a true and fair view of the financial position and 
results of the Group. Therefore, for transparency 
purposes, and pending EY’s internal analysis regarding 
its ability to issue the required auditor’s report, the 
Company has decided to submit the 2021 Annual 
Report including the 2021 Consolidated Financial 
Statements, albeit without the auditor’s report. If and 
when the independent auditor’s report is received, 
the Group will issue the 2021 Annual Report including 
the 2021 Financial Statements with the independent 
auditor’s report included.

FINANCIAL STATEmENTS

OTHER INFORmATION

265

X5 RETAIL GROUP N.V.

Other 

information