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OR GROUP sets up a subsidiary for logistics services development

OR GROUP (MOEX: ORUP), a modern selling platform which comprises the marketplace, an ecosystem of services, and a network of selling and service points under the Westfalika brand, founds an affiliated company for development of logistics services (opening of pickup points). For this purpose, a legal entity will be established — O2 LLC, which will be a 100% subsidiary of ORG PJSC, the issuer of shares and the parent company of the Group. The decision to establish a new organization was approved on 29 October 2021 by the Board of Directors of ORG PJSC.

The development of online order delivery services and integration into the logistics infrastructure of the Russian e-commerce market is one of the priorities for OR GROUP. As part of this strategy implementation, in 2018, the Company starting to launch partner pickup points based on the Group's stores. At the moment, more than 3,600 pickup points operate in the company's outlets; and every month OR GROUP hands over about 200,000 parcels. The Group now cooperates with 19 partners — leading logistics operators and online retailers, including PickPoint, DPD, Russian Post, SberLogistika, Cainiao, Wildberries, Yandex.Market and others.

Additional services improve business sustainability and provide additional traffic in the Group's stores. Thus, for the first 9 months of 2021 the traffic of customers who came for parcels reached 16% of the total traffic of outlets. During that period OR GROUP delivered more than 1.8 million parcels, three and a half times as much as within the same period last year. The Company plans the further growth of the number of parcels delivered due to the development of the online trading market and the increase in the number of partners. The project also contributes to EBITDA: commission revenue from parcel delivery for 9 months increased 2.5 times year-on-year and exceeded 84 mln rubles.

"We consider the development of logistics services and especially last-mile services to be promising. We have integrated pickup points of leading operators on the base of our stores, we are cooperating with three partner on parcel lockers placement as well. Some other services are also available in our outlets, including cash loan granting. We want to boost this project, further improve the ecosystem of logistics and financial services, so we decided to allocate the project in a separate structure," comments Anton Titov, CEO of OR GROUP. "We are looking at a variety of opportunities, including cooperation with other players in the online trading market, attracting investment through strategic partnerships and developing the project within the Group independently."

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