X5 GROUP PUBLISHES 2020 SUSTAINABILITY REPORT

X5 RETAIL GROUP PUBLISHES SUSTAINABILITY REPORT IN ACCORDANCE WITH GRI STANDARDS

Amsterdam, 25 May 2021 - X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), today announces the release of its inaugural Sustainability Report prepared in accordance with GRI Standards and independently assured. The X5 Sustainability Report 2020 outlines the Company's commitment to responsible environmental, social and governance (ESG) practices, and highlights its comprehensive sustainability initiatives that are being implemented across its operations, as well as actions taken by the Company to support communities in Russia in response to COVID-19.

Publication of a Sustainability Report in accordance with GRI Standards and with independent assurance reflects X5's ongoing efforts to further improve the quality of disclosures for our stakeholders, embed sustainability principles within our Company and demonstrate our commitment to transparency and corporate social responsibility.

Igor Shekhterman, CEO of X5 Retail Group, said: 

"During an extraordinary year that was dominated by the effects of the global pandemic, sustainable and responsible business practices became even more important. We are committed to delivering value to all stakeholders by improving environmental sustainability, investing in employees, supporting our communities and ensuring effective governance. Our inaugural Sustainability report captures our progress to date against the medium- and long-term goals set out in X5's sustainability strategy. In 2020, X5 managed to improve its ESG metrics in all key areas including GHG emissions intensity, sales of healthy lifestyle products and number of people that received direct support from X5. I am confident that we will meet our targets for 2023 and 2030 and be a leading contributor to sustainable development and achieving the United Nations Sustainable Development Goals."

The Sustainability report is available on X5's corporate website at:

https://www.x5.ru/en/PublishingImages/Pages/Investors/ResultCenter/X5_Sustainability_Report_2020_ENG.pdf

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 proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Karusel hypermarkets. X5 provides an omnichannel experience to customers, integrating retail stores and e-commerce, through its businesses Vprok.ru Perekrestok, 5Post and Okolo.

As of 31 March 2021, X5 had 17,959 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 16,960 Pyaterochka proximity stores, 940 Perekrestok supermarkets and 49 Karusel hypermarkets. The Company operates 41 DCs and 4,014 Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 339 thousand people.

For the full year 2020, revenue totalled RUB 1,978,026 mln (USD 27,417 mln), EBITDA pre-IFRS 16 reached RUB 145,137 mln (USD 2,012 mln), and net profit pre-IFRS 16 for the period amounted to RUB 39,180 mln (USD 543 mln). In Q1 2021, revenue totalled RUB 507,191 mln (USD 6,822 mln), adjusted EBITDA pre-IFRS 16 reached RUB 35,475 mln (USD 477 mln), and net profit pre-IFRS 16 amounted to RUB 9,163 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 - 0.09%, 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.