X5 Retail : Quarterly Earnings Document

X5.RU 01

X5 Group 2022 net sales increase 18.3% Digital business net sales up 46.6%

FY 2022 HIGHLIGHTS

+18.3% y-o-y

Total net sales increased by RUB 402.2 billion, totalling RUB 2.6 trillion

10.8% y-o-y increase in like-for-like (LFL1) sales

7.5% contribution to sales growth from a

8.3% increase in selling space

+2,202 new stores

X5 net new stores in 2022

Including 1,192 proximity stores, 445 hard discounters, 595 Krasny Yar and Slata stores, 7 joint dark stores and 6 dark kitchens.

19 supermarkets, 21 hypermarkets and 3 Vprok.ru dark stores were closed.

12x y-o-y

Chizhik net sales increased by RUB 33.0 billion, totaling RUB

35.9 billion

Chizhik opened 445 stores and entered 9 new regions in 2022.

+18.0% y-o-y

Net offline retail sales for Pyaterochka increased by RUB

320.5 billion, totalling RUB 2.1

trillion

Q4 2022 HIGHLIGHTS

+8.3% y-o-y		+46.6% y-o-y
Net offline retail sales for		Digital business2 net sales
Perekrestok increased by RUB		increased by RUB 22.4 billion,
27.9 billion, reaching RUB 365		totalling RUB 70.4 billion
billion		2.7% of total net sales
		+0.6 p.p. of consolidated revenue growth
		rate

+16.3% y-o-y

Total net sales increased by RUB 98.6 billion, totaling RUB 704.0 billion

7.9% y-o-y increase in like-for-like (LFL1) sales

8.4% contribution to sales growth from a

8.3% increase in selling space

+1,093 new stores

X5 net new stores in Q4 2022

Including 299 proximity stores, 201 hard discounters, 595 Krasny Yar and Slata stores, 2 dark kitchens and 3 joint dark stores.

5 hypermarkets and 2 Vprok.ru dark stores were closed.

8x y-o-y

Chizhik net sales increased by RUB 13.4 billion, totaling RUB 15.2 billion

+13.5% y-o-y

Net offline retail sales for Pyaterochka increased by RUB

65.5 billion, reaching RUB 551.9 billion

+4.4% y-o-y		+ 35.8% y-o-y
Net offline retail sales for		Digital business2 net sales
Perekrestok increased by RUB		increased by RUB 5.8 billion,
4.1 billion, reaching RUB 98.0		totalling RUB 22.1 billion
billion		3.1% of total net sales
		+0.6 p.p. of consolidated revenue growth
		rate

Amsterdam

24 January 2023

X5 Retail Group N.V. ("X5" or the "Company", LSE and MOEX ticker: "FIVE"), a leading Russian food retailer that operates the Pyaterochka, Perekrestok and Chizhik retail chains, today announces its preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 20223.

1. LFL comparisons of retail sales between two periods are comparisons of retail sales in local currency (including VAT) generated by the relevant stores. The stores that are included in LFL comparisons are those that have operated for at least 12 full months. Their sales are included in LFL calculations starting from the day of the store's opening. We include all stores that fit our LFL criteria in each reporting period.
2. Vprok.ru, express delivery, 5Post and Mnogo Lososya.
3. Numbers in this press release are preliminary and have not been reviewed or audited by the Company's auditor.

X5.RU 02

Igor Shekhterman

X5 Chief Executive Officer

Despite a challenging macro environment, X5 Group continued to deliver strong results while expanding our market presence and customer offering. In that regard, I would like to start off by thanking the entire X5 team, including all staff and management, for their contribution to X5's impressive performance and their commitment to providing the best possible value and service to our customers.

In 2022, total net sales grew by 18.3% to RUB

2.6 trillion, with net offline sales at Pyaterochka and Perekrestok increasing by 18.0% and 8.3% year-on-year, respectively. X5 added 2,202 net new stores in 2022 (compared to 1,366 net new stores in 2021), driven by the expansion of the Group's proximity and hard discounter formats as well as the addition of stores from Krasny Yar and Slata, two leading retailers in Eastern Siberia, with whom X5 finalised a strategic partnership this year.

We have continued to see standout performance from our hard discounter format, Chizhik, since its launch in the fall of 2020. Chizhik's net sales grew 12-foldyear-on-year in 2022 to nearly RUB 36 billion, while the number of stores increased 7-fold to a total of 517 stores by the end of December. The hard discounter format has proven attractive to customers looking for the best price offer amid ongoing food inflation, and we plan to accelerate store openings for Chizhik in 2023.

X5's digital businesses saw net sales rise by 46.6% year-on-year to RUB 70.4 billion, with our express delivery service, Vprok.ru online hypermarket and the Mnogo Lososya ready-to- eat delivery service demonstrating solid GMV growth in 2022. In 2022, we continued to rapidly expand express delivery services from

Pyaterochka and Perekrestok stores and secured partnerships with three leading delivery aggregators to make online delivery from X5 stores even more convenient. We also completed a revamp of our loyalty programme, X5 Club, which numbered nearly 70 million active loyal customers by the end of Q4 2022.

Social responsibility became an even bigger priority for X5 in 2022. I would particularly like to note our tremendous effort to ensure that all products remained available for our customers despite a very challenging supply chain environment. X5 also continued to support local communities through various charitable initiatives. Notably, we collected more than 518 tonnes of food donations through our Basket of Kindness joint project, a 1.5-fold increase from the amount collected in 2021. We also launched a pilot food sharing initiative, which we plan to roll out across more regions of Russia.

In 2023, our key areas of focus include entry into the Russian Far East, which will significantly expand X5's market geography and create new opportunities for customers and suppliers in the region. After signing a cooperation agreement with the Russian Far East and Arctic Development Corporation (RFEADC) in September 2022, we plan to assess local infrastructure needs in Q1 2023 in order to develop our further course of action.

Additionally, in 2023 we will continue to actively expand our hard discounter and proximity store networks with a focus on more accessible pricing, as well as reviewing opportunities to expand to new territories through strategic partnerships with local retail chains.

NET SALES PERFORMANCE

Sales of offline and digital businesses4

			CHANGE			CHANGE
			Y-O-Y, % OR			Y-O-Y, % OR
RUB MLN	Q4 2022	Q4 2021	MULTIPLE	FY 2022	FY 2021	MULTIPLE
Pyaterochka	551,900	486,449	13.5	2,100,019	1,779,550	18.0
Perekrestok	97,965	93,861	4.4	365,283	337,362	8.3
Karusel	2,355	6,987	(66.3)	15,693	31,723	(50.5)
Chizhik	15,233	1,854	8x	35,893	2,940	12x
Offline net sales5	681,935	589,151	15.7	2,531,369	2,151,575	17.7
Digital businesses' net sales	22,058	16,244	35.8	70,354	47,991	46.6
Total net sales	703,993	605,395	16.3	2,601,723	2,199,566	18.3

1. In the tables and text of this press release, immaterial deviations in the calculation of % change, subtotals and totals are due to rounding.
2. Including Krasny Yar and Slata.

X5.RU 03

Net retail sales6 by format

Including express delivery, excluding Vprok.ru and 5Post sales

			CHANGE			CHANGE
			Y-O-Y, % OR			Y-O-Y, % OR
RUB MLN	Q4 2022	Q4 2021	MULTIPLE	FY 2022	FY 2021	MULTIPLE
Pyaterochka	560,440	491,290	14.1	2,122,793	1,793,676	18.3
Perekrestok	104,400	97,986	6.5	385,495	348,941	10.5
Karusel	2,355	6,993	(66.3)	15,693	31,742	(50.6)
Chizhik	15,233	1,854	8x	35,893	2,940	12x
Net retail sales7	697,568	598,519	16.5	2,576,578	2,178,298	18.3

Q4 & FY 2022 LFL store performance by format

% change y-o-y8

		Q4 2022			FY 2022
	SALES	TRAFFIC	BASKET	SALES	TRAFFIC	BASKET
Pyaterochka	8.4	4.7	3.6	11.7	3.5	7.9
Perekrestok	5.3	1.2	4.0	7.1	0.0	7.1
X5 Group9	7.9	4.3	3.5	10.8	3.1	7.5

Q4 2022 monthly net retail sales (RUB) by format

change y-o-y, % or multiple

	OCTOBER 2022	NOVEMBER 2022	DECEMBER 2022
Pyaterochka	14.1	12.8	13.5
Perekrestok	4.1	4.7	4.3
Karusel	(61.8)	(66.3)	(69.6)
Chizhik	10x	9x	7x
Offline business total	14.5	16.2	16.4
Digital business total	31.7	27.3	45.7
Total	14.9	16.5	17.2

1. Net retail sales represent revenue from operations of X5-managed stores net of VAT. This number differs from revenue, which also includes proceeds from direct franchisees (royalty payments) and other revenue, which will be reported as part of X5's Q4 2022 financial results.
2. Including Mnogo Lososya, Krasny Yar and Slata.
3. Excluding Vprok.ru and Mnogo Lososya.
4. Including Chizhik and Karusel.

X5.RU 04

AVERAGE TICKET AND NUMBER OF CUSTOMER VISITS

Q4 & FY 2022 average ticket and customer visits by offline format

			CHANGE			CHANGE
			Y-O-Y, % OR			Y-O-Y, % OR
AVERAGE TICKET, RUB	Q4 2022	Q4 2021	MULTIPLE	FY 2022	FY 2021	MULTIPLE
Pyaterochka	453.9	438.5	3.5	441.3	409.2	7.9
Perekrestok	713.0	683.7	4.3	670.6	626.0	7.1
Karusel	1,149.2	1,198.9	(4.1)	1,070.7	1,016.6	5.3
Chizhik	609.8	616.7	(1.1)	630.3	567.8	11.0
X5 Group10	484.2	470.0	3.0	469.0	437.4	7.2
NUMBER OF CUSTOMER
VISITS, MLN
Pyaterochka	1,415.1	1,284.6	10.2	5,524.1	5,028.7	9.9
Perekrestok	167.1	163.8	2.0	657.6	636.5	3.3
Karusel	2.4	6.8	(65.1)	16.9	36.0	(53.1)
Chizhik	28.5	3.4	8x	64.8	5.9	11x
X5 Group10	1,648.2	1,458.5	13.0	6,298.6	5,707.1	10.4

Q4 2022 average monthly ticket and customer visits by offline format

change y-o-y, % or multiple

AVERAGE TICKET	OCTOBER 2022	NOVEMBER 2022	DECEMBER 2022
Pyaterochka	4.0	2.8	3.7
Perekrestok	4.9	2.3	5.3
Karusel	(2.4)	(4.5)	(2.9)
Chizhik	3.4	0.8	(3.8)
X5 Group10	3.6	2.2	3.1
NUMBER OF CUSTOMER VISITS
Pyaterochka	9.6	10.6	10.3
Perekrestok	0.2	4.4	1.7
Karusel	(60.9)	(64.9)	(69.0)
Chizhik	10x	9x	7x
X5 Group10	10.5	14.7	14.0

10.Including Krasny Yar and Slata.

X5.RU 05

EXPANSION DYNAMICS

Selling space and number of stores by format

SELLING SPACE,			CHANGE
SQUARE METRES	AS AT 31-DEC-22	AS AT 31-DEC-21	VS 31-DEC-21, % OR MULTIPLE
Pyaterochka	7,497,056	7,048,488	6.4
Perekrestok	1,085,496	1,098,905	(1.2)
Karusel	49,225	128,063	(61.6)
Chizhik	152,370	20,327	7x
Joint dark stores	8,087	-	n/a
X5 Group11	9,107,479	8,409,757	8.3
NUMBER OF STORES
Pyaterochka	19,164	17,972	6.6
Perekrestok	971	990	(1.9)
Karusel	12	33	(63.6)
Chizhik	517	72	7x
Joint dark stores	7	-	n/a
X5 Group11	21,323	19,121	11.5

11. Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar and Slata stores.