X5 Retail Regulatory News (FIVE)

PEREKRESTOK.RU LAUNCHES IN NIZHNY NOVGOROD

Nizhny Novgorod, 1 June 2020 - X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer that operates the Pyaterochka, Perekrestok and Karusel chains (LSE and MOEX ticker: "FIVE"), announces that its Perekrestok.ru online supermarket has launched in Nizhny Novgorod. The region is the third one where the grocery delivery service is available following the Moscow metropolitan area and St Petersburg.

To handle online orders in Nizhny Novgorod, Perekrestok.ru opened its fifth dark store (a new format store accessible only to online supermarket staff responsible for processing and delivering online orders) ahead of schedule. The dark store is located in a former Karusel hypermarket on Moskovskoye Shosse that was shuttered as part of the chain' transformation process. The facility has a total area of 12,000 sq m and storage capacity of 30,000 SKUs. The pilot run began in late May, nearly a month ahead of schedule.

Currently 100 employees operate the dark store using 15 trucks and handle some 200 orders per day. After reaching full capacity, the store will be able to process up to 4,000 orders per day and will employ 800 workers operating a fleet of 150 trucks. The launch of this new facility will increase the total capacity of Perekrestok.ru by 30%.

The dark store opened earlier than planned in response to growing demand for online purchases due to the COVID-19 pandemic. In late March, the number of online delivery requests in Nizhny Novgorod surged by 30 times, according to Yandex Wordstat. In other regions where Perekrestok.ru operates, the number of online orders on peak days in March exceeded 16,000, with the average ticket rising to RUB 6,000 and the number of items on the ticket reaching 80, nearly double the previous average. Demand has remained high, and in May Perekrestok.ru delivered an average of 11,000 orders per day.

The new dark store has put in place all the necessary safety measures. Employees and delivery drivers are provided with PPE, all facilities are regularly disinfected and employees' health screened on a daily basis. To minimise contact between delivery drivers and customers, in Nizhny Novgorod Perekrestok.ru introduced contactless delivery, which is also available in other regions of operation.

"The decision to expand Perekrestok.ru to Nizhny Novgorod was made in response to the growing popularity of online purchases in the region and the availability of a suitable facility owned by X5. Amid the challenging COVID-19 situation, we accelerated the launch of the new dark store, and thanks to close teamwork were able to open it ahead of schedule. In the initial stage, delivery will only be available in Nizhny Novgorod, but later on we plan to roll it out to satellite towns and other localities throughout the region," said Igor Shekhterman, X5 Retail Group CEO.

As in other regions of operation, Perekrestok.ru in Nizhny Novgorod is designed for large stock-up shopping. In the initial phase the product range will include 16,000 SKUs. Additionally, it will offer unique merchandise such as large-size packs of popular products or premium pet foods.

Online orders will either be delivered to the doorstep or picked up at the dark store (a new service by Perekrestok.ru). The minimum order is set at RUB 500 for self-pickup and RUB 1,000 for delivery. For orders over RUB 1,500, the delivery will be free but within longer time frames, while orders from RUB 2,000 will be delivered free of charge within a convenient two-hour window.

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 several retail formats: the chain of proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand and the hypermarket chain under the Karusel brand.

As of 31 March 2020, X5 had 16,658 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 15,739 Pyaterochka proximity stores, 846 Perekrestok supermarkets and 73 Karusel hypermarkets. The Company operates 42 DCs and 4,098 Company-owned trucks across the Russian Federation.

For the full year 2019, revenue totalled RUB 1,734,347 mln (USD 26,791 mln), Adjusted EBITDA under IAS 17 reached RUB 127,380 mln (USD 1,968 mln), and net profit under IAS 17 for the period amounted to RUB 25,908 mln (USD 400 mln). In Q1 2020, revenue totalled RUB 468,994 mln (USD 7,065 mln), adjusted EBITDA reached RUB 32,980 mln (USD 497 mln), and net profit amounted to RUB 8,175 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 - 0.08%, treasury shares - 0.02%, Shareholders with less than 3% - 40.61%.

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.

Elements of this press release contain or may contain inside information about X5 Retail Group N.V. within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014/EU).