X5 Retail Regulatory News (FIVE)

X5 JOINS THE UN GLOBAL COMPACT

Moscow, 12 May 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 its accession to the UN Global Compact (UN GC), which is an international business initiative in the field of corporate social responsibility and sustainable development. X5 is the first Russian retailer to join the Global Compact.

By joining the UN GC, X5 confirms its commitment to the principles of human rights, fair labour relations, environmental protection and anti-corruption. It also highlights on an international scale the Company's intention to implement its own sustainable development goals. X5 Retail Group also joined the National Network of the Global Compact Association, the official UN Global Compact headquarters in Russia, which promotes implementing sustainable development models within national frameworks.

Participating in the Global Compact also entails an obligation to publicly disclose annually the outcomes and achievements for stated sustainable development goals. The parties to the Global Compact can regularly share best practices and learnings, as well as accumulated sustainable development expertise.

Late last year X5 approved its sustainable development strategy as part of the company's overall business strategy. X5's goals for sustainable development were developed based on four global UN goals to which the Company can contribute the most: support for local communities, supporting healthy lifestyles, providing decent working conditions and equal opportunities, and helping to enable responsible consumption and resource use. X5 is currently developing programmes to achieve its sustainable development goals underpinned by meaningful metrics and targets, policies and requirements for integrating those goals into its business processes.

X5 Retail Group CEO Igor Shekhterman said: "Sustainable Development Goals have already become part and parcel of the Company's day-to-day activities and today we clearly see that issues of health and safety, food supply, support of vulnerable groups and overall responsible business conduct have become our strategic priorities. The accession of X5 to the UN Global Compact is further proof of our serious intentions in achieving the sustainable development goals that we set for ourselves. We are honoured to be part of the community of leaders in corporate responsibility and sustainable development."

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).