X5's Hard Discount Chain Opens Its First DC

X5'S HARD DISCOUNTER OPENS ITS FIRST DISTRIBUTION CENTRE

Voronezh, 27 May 2022 - X5 Group, ("X5" or the "Company", LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the launch of the first distribution centre (DC) of its Chizhik hard discount chain. Opened in the Voronezh Region, the DC paves the way for Chizhik hard discounters to enter the regional market in Russia, with the first stores to be launched as early as June.

The facility has a total floor space of 12,000 sq m. It stands out among other DCs due to its multi-format operation: capable of storing products in various conditions, the DC enables shipping of grocery items, ultra-fresh and frozen products, as well as alcohol.

The DC currently receives shipments from over 200 partners of the retail chain. It has capacity to process up to 800 tonnes of products per day, while operational continuity will be ensured by more than 200 employees and around 45 vehicles.

Ilya Yakubson, General Director of Chizhik, commented:

"The launch of Chizhik's first distribution centre is a milestone in the retail chain's development. This move will ensure that Russia's Central Black Earth Region benefits from our efficient logistics infrastructure. I am especially proud of how quickly the project was implemented, with the entire process of bringing Chizhik to Voronezh, including searching for store locations and opening the DC, taking just three months."

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; RAEX: ruAA+) is a leading Russian food retailer. The Company operates proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard discounters. X5 provides an omnichannel experience to its customers, integrating retail stores and e-commerce through its businesses Vprok.ru Perekrestok, 5Post and Mnogo Lososya.

As of 31 March 2022, X5 had 19,479 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 18,320 Pyaterochka proximity stores, 983 Perekrestok supermarkets, 89 Chizhik hard discounters and 28 Karusel hypermarkets. The Company operates 47 DCs and 4,574 Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 328 thousand people.

For the full year 2021, revenue totalled RUB 2,204,819 million (USD 29,935 million*), EBITDA pre-IFRS 16 reached RUB 161,024 million (USD 2,186 million*), and net profit pre-IFRS 16 for the period amounted to RUB 48,513 million (USD 659 million*). In Q1 2022, revenue totalled RUB 604,230 million (USD 7,020 million**), adjusted EBITDA pre-IFRS 16 reached RUB 70,179 million (USD 815 million**), and net profit pre-IFRS 16 amounted to RUB 2,499 million (USD 29 million**).

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 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 Group N.V. speak only as of the date of this announcement. Save as required by any applicable laws or regulations, X5 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.

* FX rate: 73.6541 USD/RUB

** FX rate: 86.0693 USD/RUB