MAGNIT AND TO OFFER PRODUCTS AT COST PRICE

Moscow, April 2, 2020: Magnit and X5 Retail Group—the largest Russian retailers—have decided to sell several socially important product categories with zero markup for at least one month.

The initiative is aimed at supporting socially vulnerable customers in the face of the challenging epidemiological situation currently impacting the country. Each retail chain will establish a list of essential food products in the “first price” segment, which will then be offered to customers without any markup—i.e., at the same price the chain pays to the manufacturers.

The leaders of Russian retail are looking to constructive efforts from producers and suppliers to support the initiative and help maximize its impact. Magnit and X5 Retail Group also invite all retail companies of any format to join the initiative.

“Many of our customers, especially from low-income households, face quite a challenging situation today. For us, it’s important to support these customers and allow them to minimize their spending on essential food products”, —noted Jan Dunning, Magnit’s Chief Executive Officer.

“The current situation has prompted us to take special measures to support our customers. ‘First price’ products are essential for socially vulnerable population segments, and it’s these people we have to attend to first. We hope that our joint initiative will resonate with our suppliers and allow us to get the lowest possible wholesale price for these products”, —said Igor Shekhterman, CEO of X5 Retail Group.

For additional information, please contact: Denis Kuznetsov Anton Karpov Head of Public Relations Administration Head of Administration for External X5 Retail Group Communications Magnit T: +7 (495) 662 88 88 ext. 13-884 E-mail: [email protected] E-mail: [email protected]

For reference: X5 Retail Group (LSE and MOEX: FIVE, Fitch: BB+, Moody’s: Bа1, S&P: BB, RAEX: ruAA+) is the leading Russian grocery retailer. The Company operates several retail banners: convenience stores, Perekrestok supermarkets, and Karusel hypermarkets. As of December 31, 2019, the Company had 16,297 stores, with a dominant presence in and Saint Petersburg and extensive footprint across the European . These included 15,354 Pyaterochka stores, 852 Perekrestok supermarkets, and 91 Karusel hypermarkets. The Company also operated 42 distribution centers and a fleet of 4,124 of its own trucks spread across territory of the Russian Federation. In 2019, the Company recorded a revenue of RUB 1,734,347 mln (USD 26,791 mln), IAS 17 adjusted EBITDA of RUB 127,380 mln (USD 1,968 mln), and IAS 17 net profits of RUB 28,642 mln (USD 400 mln).

X5’s shares are distributed as follows: CTF Holdings S.A. — 47.86%, Intertrust Trustees Ltd (Axon Trust) — 11.43%, X5’s directors — 0.08%, treasury shares — 0.01%, free float — 40.62%. Public Joint Stock Company “Magnit” (MOEX and LSE: MGNT, S&P – BB) is a holding company of the group of companies (the Company) carrying out retail trade through the Magnit Retail Chain. The Company’s headquarters are in Krasnodar. Magnit Retail Chain is one of Russia's leading grocery retailers. As of December 31, 2019, Magnit operated 20,725 stores (14,622 convenience stores, 473 Magnit Family supermarkets, and 5,630 drogerie stores) in 3,742 cities and towns across the Russian Federation. Approximately two thirds of the Company’s stores are located in cities with a population of less than 500,000 people. The majority of the Group’s stores are located in the Southern, North Caucasian, Central, and Volga Federal Districts. Magnit’s stores also operate in the North-Western, Ural and Siberian Federal Districts.