Press Release | St. Petersburg | 30 January 2023

LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND ONLINE SALES GROWTH OF 108.9% IN FY 2022

FY 2022 Highlights1,2

•    Total Sales increased by 11.1% y-o-y to RUB 537.4 billion
•    Retail Sales reached RUB 530.2 billion, representing 11.4% y-o-y growth
•    Like-for-Like (LFL) Sales increased by 2.3%, driven by 5.0% LFL Average Ticket growth
•    The total number of stores reached 820, including 259 hypermarkets and 561 small format stores
•    Total Selling Space increased by 1.9%, reaching 1,788.2 thousand sq. m.
•    Online Sales grew by 108.9% y-o-y to RUB 40.4 billion

Q4 2022 Highlights1,2

•    Total Sales increased by 0.6% y-o-y to RUB 148.2 billion
•    Retail Sales reached RUB 145.8 billion, representing 0.7% y-o-y growth
•    Like-for-Like (LFL) Sales declined by 1.3%, as a result of LFL Average Ticket and LFL Traffic decrease by 0.5% and 0.8% respectively
•    The Company opened 1 hypermarket and 24 small-format stores on a gross basis
•    Online Sales grew by 59.4% y-o-y to RUB 11.2 billion

1.                  Including Utkonos results starting from 1 February 2022
2.                  LFL results include the results of Billa stores starting from September 2022 and the results of Semya stores starting from October 2022

Q4 & FY 2022 OPERATING RESULTS, y-o-y

Sales3

Stores and Selling Space

LFL Results7

Online Sales3

For Q4 2022 monthly operating results, please refer to Appendix 1

3. Including Utkonos results from the date of consolidation (1 February 2022)

4. Historical numbers were adjusted following the Company decision to treat four Semya stores as Hypermarkets.

5. Includes only Utkonos Retail Sales (B2C)

6. Wholesales includes Utkonos wholesales (B2B)

7. LFL results include the results of Billa stores starting from September 2022 and the results of Semya stores starting from October 2022.

8. Lenta Online includes Click & Collect

9. Includes both Utkonos retail sales (B2C) and wholesales (B2B)

Q4 2022 OPERATING RESULTS

In Q4 2022, Total Sales increased by 0.6% to RUB 148.2 billion. Lentas Retail Sales in Q4 2022 increased by 0.7% to RUB 145.8 billion, compared to RUB 144.8 billion in Q4 2021, driven by 1.9% Total Selling Space organic growth which was partially offset by LFL Sales decline of 1.3%. Overall Sales Density in Q4 2022 decreased by 0.4% year-over-year.

In Q4 2022, Lenta continued to note a change in customer behavior driven primarily by a decrease in real disposable income and in consumer confidence. The emigration of the wealthiest segments of the population, a slowdown in Inflation and slower growth in terms of retail trade turnover also put pressure on the Companys results. Our customers now tend to buy products from lower price segments and reduce their expenses on spirits and non-food categories, including home appliences, childrens toys and seasonal non-food items. Meanwhile, the growth rate in the Online channel has contied to slow down.

In Q4 2022, the total Number of Tickets increased by 3.4% thanks to the above-mentioned organic expansion and gradual improvement in the performance of our Lenta Mini stores, while the Average Ticket size decreased by 2.6% primarily due to the increasing share of small-format stores sales in total Retail Sales.

Wholesale Sales, which now includes Utkonos B2B sales from the date of the consolidation, represented 1.6% of Total Sales and decreased by 6.5% compared to the corresponding period of the previous year.

In Q4 2022, Total LFL Sales decrease by 1.3%, as a result of Total Retail LFL Traffic decline by 0.8%, which was further amplified by Total Average Ticket decrease of 0.5%.

In Q4 2022, Lenta continued to improve its loyalty program and actively worked on assortment tailoring and promo. In December, the Company launched a loyalty campaign called Five Steps to a Free Product, which had a positive impact on traffic and resulted in an increase in the average number of tickets per customer. In Q4 2022, 1.5 million new loyalty cards were activated, with the total number of loyalty cards issued reaching to 26.9 million. Transactions using loyalty cards slightly increased compared to Q3 2022 and accounted for 97.3% of total Retail Sales, excluding Utkonos.

Hypermarket Sales represented 83.5% of total Retail Sales in Q4 2022. Hypermarkets Sales declined by 0.8% driven by a decrease of LFL Average Ticket by 0.4% and LFL Traffic by 0.1%. Lenta continues to improve the efficiency of in-store operations, which led to a sales density improvement of 3.0% year-over-year. In Q4 2022, Lenta opened one hypermarket in Tomsk which was rebuilt from scratch following a fire in 2021.

In 2022, Lenta put on hold a significant number of store openings due to the macroeconomic conditions and market uncertainties. During Q4 2022, 24 new small-format stores were opened. Lenta also closed 16 underperforming stores to optimize operations, bringing the total number of small-format stores to 561 as of the end of the year. In the reporting period, small-format stores demonstrated decent year-over-year Sales Growth of 3.7%, driven primarily by an organic expansion. Small-format stores LFL Sales decreased by 6.2% as a result of a 4.1% decrease in the LFL Average Ticket and a 2.2% decline in LFL Traffic.

In Q4 2022, Lentas Online business demonstrated strong sales growth. During the period, Total Online Sales, including Utkonos, amounted to RUB 11.2 billion, an increase of 59.4% year-over-year correlates with the overall e-grocery market dynamics in Russia, while Total Online Orders were up 42.5% and amounted to 5.1 million. The Average Ticket for Lenta Online was RUB 2,230 an increase of 6.5% year-over-year. In Q4 2022, our online sales via Partners recovered, reversing the negative trend of the previous two quarters. Sales through Partners doubled quarter-on-quarter. Utkonos sales slowed down due to the integration of the Utkonos operating model and the focus on improving operating efficiency. Online Sales share in Lentas Total Sales constituted 7.6% of Lentas Total Sales, compared to 4.8% in the corresponding period of the previous year and 6.9% in Q3 2022.

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About Lenta

Lenta IPJSC (LSE: LNTA, MOEX: LENT) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and a new proximity store format under the brand Mini Lenta. It also provides customers the option to shop online via its own Lenta Online services, Online Partners and the Utkonos platform. Lenta is Russias largest hypermarket operator and the fourth largest food retailer overall by Sales. The company was founded in 1993 in St. Petersburg and as of 31 December 2022, operated 259 hypermarkets and 561 supermarkets and Lenta Mini stores in over 200 cities and towns across Russia, with almost 1.79 million square meters of Selling Space. The average Lenta hypermarket has approximately 5,500 square meters of Selling Space, the average Lenta supermarket has 800 square meters, and the Mini Lenta format is 500 meters on average. The company operates 14 distribution centers to supply all its stores. 2022 Revenues were RUB 537 billion (approximately USD 7.6 billion).

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 Lenta'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 Lenta speak only as of the date of this announcement. Except as required by any applicable laws or regulations, Lenta 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.

Appendix 1

Q2 2022 MONTHLY OPERATING RESULTS

Sales3

Stores and Selling Space

Online Sales3

3. Including Utkonos results from the date of consolidation (1 February 2022)

4. Historical numbers were restated following the Company decision to treat four Semya stores as Hypermarkets.

5. Includes only Utkonos Retail Sales (B2C)

6. Wholesales includes Utkonos wholesales (B2B)

7. LFL results include the results of Billa stores starting from September and the results of Semya stores starting from October.

8. Lenta Online includes Click & Collect

9. Includes both Utkonos retail sales (B2C) and wholesales (B2B)