Company Announcements

X5 OPENS THE LARGEST PEREKRESTOK.RU DARK STORE

Moscow, 20 August 2019 - X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), has opened its third dark store as part of the Perekrestok.ru online supermarket. Located in the settlement of Vyoshki in the Moscow Region, the new facility has a total area of 18,000 sq m, making it X5's largest dark store to date.

The facility in Vyoshki is capable of storing 35,000 SKUs. At the initial stage, it will be serviced by around 300 employees and 40 vehicles, will increase to 1,000 and 130, respectively, after full ramp-up. Capable of handling as many as 5,000 orders per day, the new dark store has helped to expand the total capacity of the Perekrestok.ru online supermarket by 1.5 times overall, and to double it in Moscow.

In the second quarter of 2019, the online supermarket handled up to 4,200 orders per day. In the first half of 2019, the total number of orders handled exceeded 541,000, which represents a 4.5-fold rise year-on-year. Over the same period, the revenue of Perekrestok.ru went up 4.6 times, reaching RUB 1.76 bn net of VAT.

The launch of Perekrestok.ru in April 2017 coincided with the opening of X5's first hybrid store in Moscow, which functions as both a regular supermarket and a warehouse for picking online orders. In August 2018, X5 opened its first Perekrestok.ru dark store in Moscow. Designed exclusively for online order fulfilment and servicing, the facility is accessible only by X5 personnel. In autumn 2018, Perekrestok.ru began operations in St Petersburg and the Leningrad Region, where it also launched a darkstore.

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 30 June 2019, X5 had 15,260 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 14,385 Pyaterochka proximity stores, 785 Perekrestok supermarkets and 90 Karusel hypermarkets. The Company operates 42 DCs and 3,952 Company-owned trucks across the Russian Federation.

For the full year 2018, revenue totalled RUB 1,532,537 mln (USD 24,439 mln), Adjusted EBITDA reached RUB 109,871 mln (USD 1,752 mln), and net profit for the period amounted to RUB 28,642 mln (USD 457 mln). In H1 2019, revenue totalled RUB 843,175 mln (USD 12,905 mln), adjusted EBITDA reached RUB 66,072 mln (USD 1,011 mln), and net profit amounted to RUB 22,805 mln (USD 349 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 - 0.01%, Shareholders with less than 3% - 40.62%.

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).