Press Release | St. Petersburg | 01 February 2022

LENTA COMPLETES ACQUISITION OF UTKONOS BUSINESS

St. Petersburg, Russia, 01 February 2022: Lenta IPJSC (LSE: LNTA, MOEX: LNTA & LENT), one of the largest multi-format retail chains in Russia, today announces that it has completed¹ the acquisition of the Utkonos business. The purchase price at closing amounted to RUB 20 billion.

The acquisition of Utkonos will enable Lenta to significantly expand its online market share and strengthen Lenta's ability to compete in the Moscow online market, especially within the upper-middle and premium segments. As a result of the acquisition, Lenta will have a total online market share of approximately 11% in Moscow.

The integration of Utkonos is expected to proceed gradually, with an emphasis on the improvement of operating economics and the Company's long-term value. Lenta's Executive team is currently developing the timeline with a gradual merger of Lenta Online and Utkonos into a unified business with two brands, each covering its own customer segment and shopping missions.

This acquisition supports Lenta's strategic goals and creates synergies for the business going forward.

As previously announced, the transaction will be financed via the placement of an additional issue of ordinary shares through a closed subscription to Severgroup LLC (the "Subscription"). As of the record date for the EGM (19 January 2022), other shareholders may use their preemptive right to acquire additionally issued shares if they did not participate in the voting or voted against the Subscription. The EGM to approve the increase of the share capital by way of the Subscription will be held on 11 February 2022, in the form of absentee voting.

Lenta is expected to make payment to Severgroup LLC following its receipt of funds generated by the share placement.

Vladimir Sorokin, Chief Executive Officer, commented:

"Last year, we announced our long-term goal of becoming one of the champions of the Russian retail market. We firmly believe that online will be one of the engines for Lenta's growth. Utkonos is a pioneer of the e-grocery segment in Russia and possesses unique expertise in dark store operations as well as a loyal customer base and the widest assortment amongst Russian offline and online food retailers. 

Together with Lenta Online and Utkonos teams, we are currently developing a new strategy for the combined business, which will focus on preserving and improving quality of service, attaining synergies, and strengthening Lenta's position in the Russian e-grocery market.

We are very pleased to welcome Utkonos employees to the Lenta family."

¹The actual transfer of title will occur from the moment the corresponding entry is made into the Unified State Register of Legal Entities.

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

About Lenta

Lenta IPJSC (LSE: LNTA, MOEX: LNTA, LENT) 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 December 31, 2021, operated 254 hypermarkets and 503 supermarkets and convenience stores in 89 cities across Russia with more than 1.7 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 of its stores. 2021 Revenues were RUB 484 billion (approximately USD 6.5 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.