X5 SUPERVISORY BOARD PROPOSES REAPPOINTING CEO

X5 SUPERVISORY BOARD PROPOSES RENEWING CEO IGOR SHEKHTERMAN'S APPOINTMENT FOR ANOTHER TWO-YEAR PERIOD

Amsterdam, 28 September 2020 - X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains (LSE and MOEX ticker: "FIVE"), announces that its Supervisory Board has proposed to extend the appointment of Igor Shekhterman as CEO and member of the Management Board for a two-year period ending on the day of the annual general meeting of shareholders to be held in 2023. The current contract with the CEO expires in May 2021.

Igor will lead the implementation of X5's strategy to 2023, which was approved by the Supervisory Board in June 2020. Key elements of the strategy include continued Russian food market leadership through presence at all stages of the customer journey, increasing efficiency, continued digital transformation, a flexible operating model that promotes proximity to the customer and a license to operate from society that is based on sustainable development.

Stephan DuCharme, Chairman of X5 Retail Group's Supervisory Board, commented: "The Supervisory Board is very pleased with the results that X5 has achieved in recent years under the leadership of Igor Shekhterman and the senior management team. We are confident that implementation of the strategy to 2023 will mark another stage of successful development for the Company."

X5's strategy to 2023 will be presented at the Company's Capital Markets Day on 27 October 2020.

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 2020, X5 had 17,025 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 16,096 Pyaterochka proximity stores, 867 Perekrestok supermarkets and 62 Karusel hypermarkets. The Company operates 42 DCs and 4,083 Company-owned trucks across the Russian Federation.

For the full year 2019, revenue totalled RUB 1,734,347 mn (USD 26,791 mn), Adjusted EBITDA under IAS 17 reached RUB 127,380 mn (USD 1,968 mn), and net profit under IAS 17 for the period amounted to RUB 25,908 mn (USD 400 mn). In H1 2020, revenue totalled RUB 962,625 mn (USD 13,876 mn), adjusted EBITDA reached RUB 74,834 mn (USD 1,079 mn), and net profit amounted to RUB 24,450 mn (USD 352 mn).

X5's Shareholder structure is as follows: CTF Holdings S.A. - 47.86%, Intertrust Trustees Ltd (Axon Trust) - 11.43%, X5 Directors - 0.09%, treasury shares - 0.01%, 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).