Press Release | St. Petersburg | 19 May 2021

Lenta to acquire Billa Russia to become #2 supermarket operator in Moscow

St. Petersburg, Russia, 19 May 2021: Lenta LLC, an indirect subsidiary of Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces an agreement to acquire the supermarkets business of Billa Russia GmbH ("Billa Russia") for EUR 215 million in cash.

The acquisition significantly accelerates Lenta's expansion in Moscow, adding prime retail locations that represent mature retail properties with a high sales density. As a result of the transaction, Lenta will have a total food retail market share of approximately 3% in Moscow and the Moscow region.

The acquisition is expected to make a meaningful contribution to Lenta's revenue growth and performance.

Vladimir Sorokin, Chief Executive Officer, commented:

"The acquisition of Billa Russia's supermarkets gives us access to mature stores with established customer traffic, including in central Moscow neighborhoods, and instantly doubles Lenta's footprint in the supermarket segment in terms of the number of stores overall. Billa's locations also enable Lenta to further expand its online express delivery offering across all of Moscow, supporting our ambitious plans to significantly grow the online business in the coming years.

Becoming the second biggest supermarket operator in Russia's largest and wealthiest metropolitan area represents a significant statement of intent backing up the ambitious strategic goals we announced at our recent Capital Markets Day. In addition, this acquisition demonstrates our commitment to continue playing an active role in the development of the grocery retail sector.

We see a strong cultural fit between Billa Russia and Lenta and are pleased to welcome over 5,400 new colleagues from Billa Russia to the Lenta family. We are confident that this acquisition is a strong win for Lenta customers, employees and shareholders alike."

Lenta plans to integrate the 161 newly acquired supermarkets, supply chain infrastructure and Billa Russia employees into the Lenta retail network. Once the stores have been converted to the Lenta brand, the Billa brand will be discontinued within Russia.

Billa currently operates supermarkets with total selling space of 138,051 square meters, the vast majority of them in Moscow and the Moscow region, as well as a distribution center in Bykovo (Moscow Region).

The transaction is expected to close in Summer 2021, subject to regulatory approvals from the Russian Federal Antimonopoly Service (FAS).

For further information, please visit www.lentainvestor.com or contact:

About Lenta

Lenta IPJSC (LSE and MOEX: LNTA) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and recently launched a new proximity store format under the brand "Mini Lenta." It also provides customers the option to shop online via its click-and-collect and express delivery services. Lenta is Russia's largest hypermarket operator and the fourth largest food retailer overall by Sales. The company was founded in 1993 in St. Petersburg and as of March 31, 2021 operated 254 hypermarkets and 140 supermarkets in 89 cities across European Russia with more than 1.5 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 13 distribution centers to supply all of its stores. 2020 Revenues were RUB 445 billion (approximately USD 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.