Protocolo para el seguimiento de dinámica de la línea de costa y playa

As a result of our national reach and the nature of our business, we contribute significantly to the local communities where we operate and to Russian society and the economy in general. Our stores span approximately 1,000 cities, towns and villages, including metropolitan areas such as Moscow, St. Petersburg, Yekaterinburg and Nizhny Novgorod, as well as smaller towns with just a few thousand inhabitants.

We offer quality products at reasonable prices and a modern retail shopping experience in both densely populated and remote regions. We employ thousands of people, and their families depend on us, our strategy and our performance for their livelihoods. We work with a large number of suppliers, including international, national and local companies, and they depend on us as much as we depend on them.

We pay special attention to our local product offerings and are committed to building strong relationships with local suppliers. We are looking to increase the levels of local sourcing not only to better meet the needs and preferences of local shoppers but also to support regional economies and contribute to their growth.

Life Line Charitable Foundation partnership

One of the main streams of our charitable activity is bringing together donations from customers and employees in the dedicated collection boxes installed in our stores to help children with severe health problems. This is part of the strategic partnership X5 has with the Life Line Charitable Foundation (the ‘Foundation’), with whom we have worked since 2006 under the auspices of the Crossroads of Life, Karusel for Children and Gingerbread House collection box programs. Currently, we also support the Foundation via the Kindness Candy and Running for Life programs, which also consolidate financial support from X5’s customers. The aim of our cooperation is to attract customers’ attention to an important social problem and to provide a convenient way for them to extend help. In 2014, these programs helped raise over RUB 21 million, which provided surgical procedures for 91 sick children.

Strategic report Governance Financial Statements

Kindness Candy charity project

On 1 June 2014, to celebrate Children’s Day, X5 and the Foundation launched the Kindness Candy (X5 private label product) charity project. Under the project, special candies sold for RUB 15 each are available in the checkout areas of all Perekrestok, Pyaterochka and Karusel stores, with RUB 5 from each purchase donated to finance surgeries through the Foundation. Between 1 June and 30 November 2014, X5 raised over RUB 2.5 million through Kindness Candy sales.

Running for Life charity marathon

Each year the X5 team participates in Running for Life, a charity running event organized by the Foundation and the United Way of Russia. In 2014 the race, held annually in Gorky Park at the heart of Moscow, attracted over 2,500 people. To participate, each runner donated RUB 1,000, collected by the organizers.

Live Classics Contest

In April 2014, X5 signed a strategic cooperation agreement with Live Classics International Awards Foundation (‘Live Classics’). The Live Classics Contest is a unique, large-scale project promoting reading among 11 and 12 year old children. Each year over two million children compete by reciting prose pieces from their favorite books. The project’s goal is to encourage reading among children, promote the Russian language and literature, support talented children and drive international cooperation in education. X5 supports the Live Classics project at all stages and provides prizes, candy and food for

participants and winners. The contest also includes special awards from Х5 Retail Group and each of its retail chains. Х5 and the Nutcracker International Television Contest The Company acted as a general partner of the 15th running of the Nutcracker International Television Contest for Young Musicians, which took place in Moscow from 2 to 9 December, 2014. The final round of the contest took place on 9 December at the Tchaikovsky Concert Hall and was broadcast live by the contest organizer, Russian Kultura TV channel, and by Radio Russia Kultura.

The Nutcracker Contest is the only annual televised children’s musical contest in Russia. This year young musicians (up to 14 years old) from 11 countries competed in three rounds for the awards in wind, brass and percussion, strings and piano categories. The finalists’ performances were evaluated by a distinguished panel of ten musical experts.

Supporting veterans

During 2014, over 900 veterans received various gift baskets of food from X5 for Easter, the Victory Day and the 73rd anniversary of the Battle of Moscow.

Supporting vulnerable population groups

We consider it to be our responsibility as a leading Russian food retailer to ensure, to the best of our ability, that vulnerable sections of society have access to basic food products at affordable prices. In the past, we have consistently supported Russia’s senior citizens by offering them discounts at our stores and we plan to continue this practice going forward. At most of our Pyaterochka, Perekrestok and Karusel stores, pensioners enjoy a 5% discount on weekdays from 9 a.m. to 1 p.m. Electronic social certificates

In October 2013, the Moscow city government launched an electronic social certificates program. Those eligible to receive this card include senior citizens, multi-child families, the disabled and people suffering specific hardships. The cards have a monthly balance of RUB 500 that can be used to purchase food products. By the end of 2013, the certificate was valid in 147 Perekrestok and 2 Karusel stores. In 2014, we continued the program by rolling it out across all of X5’s Moscow stores, enabling approximately 300,000 people to use their certificate in our stores. In light of the project’s success in 2014, X5 reached agreement with the Moscow Government to continue financing the program in 2015. Many Russian regional authorities have taken note of the project’s success and the program’s expansion to the other Russian regions is now being discussed.

In 2014, X5 also allocated over RUB 3.5 million to support vulnerable segments of the population. The money went towards supporting orphanages in Kazan and Orenburg; the Children’s World charity marathon in Kursk; the Ryazan rehabilitation treatment center for children with organic central nervous system diseases and cerebral palsy; the New Year’s Eve charity program for orphanages in Voronezh and to other causes.

environmental responsibility

X5 benefitting