X5 Retail Regulatory News (FIVE)

MSCI UPGRADES X5 GROUP'S ESG RATING TO BBB

Amsterdam, 4 August 2021 - MSCI ESG Research has upgraded X5 Group's sustainability rating from BB to BBB.

The agency assigns ratings to global public companies based on their resilience to long-term, industry-specific, ecological, social and governance risks. The ratings range from CCC to AAA. MSCI noted in particular X5's detailed anti-corruption policy, its ethics training for employees, carbon footprint reduction plan and efforts to protect the rights of minority shareholders.

"Sustainable development is a priority for X5 and we are happy that our work in this area is being recognised and praised. We place equal focus on ecological and social projects, corporate governance and personnel initiatives. Our team will continue to drive the Company towards its strategic sustainable development goals," said Igor Shekhterman, Chief Executive Officer at X5 Group.

The Company was recognised for best sustainable development report in the consumer goods sector at the ESG Reporting Awards 2021 (ESG Investing) and was ranked first among retail companies for its performance in sustainable development by the rating agency RAEX Europe.

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE, Fitch - 'BB+', Moody's - 'Ba1', S&P - 'BB+', RAEX - 'ruAA+') is a leading Russian food retailer. The Company operates proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Karusel hypermarkets. X5 provides an omnichannel experience to its customers, integrating retail stores and e-commerce through its businesses Vprok.ru Perekrestok, 5Post and Okolo.

As of 30 June 2021, X5 had 18,295 Company-operated stores. It has the leading market position in both Moscow and St Petersburg and a significant presence in the European part of Russia. Its store base includes 17,268 Pyaterochka proximity stores, 968 Perekrestok supermarkets and 40 Karusel hypermarkets. The Company operates 43 DCs and 4,128 Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 339 thousand people.

For the full year 2020, revenue totalled RUB 1,978,026 mln (USD 27,417 mln), EBITDA pre-IFRS 16 reached RUB 145,137 mln (USD 2,012 mln), and net profit pre-IFRS 16 for the period amounted to RUB 39,180 mln (USD 543 mln). In Q1 2021, revenue totalled RUB 507,191 mln (USD 6,822 mln), adjusted EBITDA pre-IFRS 16 reached RUB 35,475 mln (USD 477 mln), and net profit pre-IFRS 16 amounted to RUB 9,163 mln (USD 123 mln).

X5's Shareholder structure is as follows: CTF Holdings S.A. - 47.86%, Intertrust Trustees Ltd (Axon Trust) - 11.43%, X5 Directors - 0.10%, treasury shares - 0.01%, Shareholders with less than 3% - 40.60%.

Forward looking statements:

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal", "believe", or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as of the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.