Dixy : Arbitration court of Moscow region supported Dixy group in dispute with Mortadel

PRESS RELEASE

ARBITRATION COURT OF MOSCOW REGION SUPPORTED DIXY GROUP IN

DISPUTE WITH MORTADEL

Moscow, Russian Federation, July 19, 2018

The Court of Cassation supported decisions of the Moscow Region Arbitration Court and the Tenth Court of Appeal for recovery of RUB 47-million debt on provided marketing services from the supplier in DIXY's favour.

On July 17, at the request of DIXY Group the Arbitration Court of the Moscow Region considered legality of decisions made by the Courts of the First and Appeal Instances on recovery of the debt on marketing services provided to supplier company Mortadel. The Arbitration Court supported conclusions drawn by the Courts of the First and Appeal Instances and in its turn inferred that the trade network had fully and properly provided marketing services aimed at promotion of goods to the supplier, thus giving full support to the position of DIXY Group.

Firma Mortadel LLC argued that it had had no need for those services that had been obtruded on it. Having assessed all facts, the Courts of all three instances found the arguments of the supplier vicious and recovered the full amount of RUB 47-million debt in DIXY's favour.

Earlier Mortadel had filed another suit to invalidate this transaction on the grounds of its ostensibility and contradiction to the Law on Trade. The Courts of the First and Appeal Instances had also rejected the supplier's claims entirely, thus having fully backed the position of DIXY Group.

Therefore, both disputes that were considered for more than a year and finally resolved in favour of DIXY Group, to confirm its fairness in relationship with the supplier.

Director of Legal Department and Compliance-Control of DIXY Group Artem Afanasiev: «We are satisfied with the decisions and believe they are fair, and the supplier's claims - inconsistent. Both disputes lasted more than a year and have been resolved in our favour, which proves once again our good faith and law-abidance. DIXY Group is a reliable partner, we build relationships with suppliers on the principles of voluntary business cooperation and mutual benefit in full compliance with the legislation».

Background

DIXY Group (MICEX: DIXY) is one of Russia's leading companies in food and fast moving consumer goods retail. As of December 31, 2017, the Company operated 2,703 stores, including 2,534 DIXY convenience stores, 128 Victoria stores and 41 compact hypermarkets Megamart and Minimart, located in 753 towns and settlements of the Russian Federation. The Group's footprint covers four Federal Districts of Russia: Central, North-West and Urals, as well as Kaliningrad and the Kaliningrad Region.

In 2017, DIXY Group's total revenue amounted to RUR 282 billion.

Contacts:

Yuliya Chernyshova

PR-Projects Director of DIXY Group [phone] (ext.43-305)

[phone]

[e-mail]http://www.dixygroup.ru