X5 Retail Regulatory News (FIVE)

X5 OPENS 11,500TH STORE

Samara, 17 November 2017 - X5 Retail Group, ("X5" or the "Company"), a leading Russian food retailer (LSE ticker: "FIVE") announces the opening of its 11,500th store. The landmark store is a Karusel hypermarket located at 4 Georgi Dimitrov Street in Samara.

Spanning over 4,000 sq m, the new Karusel features a modern lighting system in the shopping space for customers' convenience. The new compact shelving system makes navigation easier, with every department visible from anywhere in the store.

Customers can also take a break from shopping, relax and grab a bite to eat at the cosy café located inside the shopping area. There are 18 checkouts and four self-checkout units in the hypermarket to boost throughput in rush hours.

The landmark store offers around 19,000 SKUs, more than half of which are food products. The bakery makes delicious fresh tandoor flatbreads and pizza. Some 50 local producers supply around 900 SKUs to this Karusel, which uses their products, for example, to make its own ready-to-eat foods. In addition to the menu items on display, the store's cooks will take customised orders.

The new hypermarket has created more than 140 jobs for the local community, is the fifth in Samara and the sixth in the Samara region.

Note to Editors:

X5 Retail Group N.V. (LSE: FIVE, Fitch - 'BB', Moody's - 'Ba2', S&P - 'BB') 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, the hypermarket chain under the Karusel brand and Express convenience stores under various brands.

As of 30 September 2017, X5 had 11,326 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 10,481 Pyaterochka proximity stores, 584 Perekrestok supermarkets, 91 Karusel hypermarkets and 170 convenience stores. The Company operates 37 DCs and 2,550 Company-owned trucks across the Russian Federation.

For the full year 2016, revenue totalled RUB 1,033,667 mln (USD 15,420 mln), Adjusted EBITDA reached RUB 79,519 mln (USD 1,186 mln), and net profit for the period amounted to RUB 22,291 mln (USD 333 mln). In 9M 2017, revenue totalled RUB 933,303 mln (USD 15,999 mln), EBITDA reached RUB 72,392 mln (USD 1,241 mln), and net profit amounted to RUB 25,975 mln (USD 445 mln).

X5's Shareholder structure is as follows: Alfa Group - 47.86%, Intertrust Trustees Ltd (Axon Trust) - 11.43%, X5 Directors - 0.06%, treasury shares - 0.01%, Shareholders with less than 3% - 40.63%.

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).