Lenta IPJSC (LNTA;LENT) Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND ONLINE SALES GROWTH OF 108.9% IN FY 2022 30-Jan-2023 / 08:00 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EquityStory RS. The issuer is solely responsible for the content of this announcement.

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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

30 January 
2023 
              Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today 
St.           announces its operational results for the fourth quarter and the full year 2022. 
Petersburg, 
Russia 

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 decreaseby 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 theresults of Semya stores starting from October 2022

              «In 2022, Russian business as a whole faced exceptional challenges that required decisive measures from 
              Lenta's team: reconfiguring supply chains, establishing relationships with new suppliers and setting up 
              payment procedures for transactions involving foreign counterparties. Despite all the difficulties, we 
              were able to meet these challenges, we became even more flexible and efficient, and we continued to 
              develop. 
              An important event in the fourth quarter was the opening of our hypermarket in Tomsk, which we rebuilt 
              from scratch following a fire in 2021. The new store was the first hypermarket that Lenta opened in 2022. 
              One of our priorities in 2022 was to improve the model for our Mini Lenta stores, and we can see the 
              results of this work-specifically, the gradual improvement in the results of our convenience stores. 
              Notably, we achieved positive LFL traffic at these stores in November and December. We plan to further 
Vladimir      increase the number of Mini Lenta stores. One of the things we are doing for this purpose is expanding 
Sorokin,      our vehicle fleet. In Q4 2022, we purchased 22 Kamaz Kompas-12 medium-duty trucks, which, alongside the 
              existing fleet, will be used to deliver goods to small-format stores. Despite the departure of foreign 
Chief         truck distributors from Russia, we were able to find a replacement in the Russian market in a very short 
Executive     time. 
Officer 
              Shoppers continued to economize in 2022 and gradually shifted to cheaper products. We reviewed our 
              product range during the year, adjusting it accordingly to meet the needs of our customers. We expanded 
              the range of products in lower price segments and stepped up our use of promotional and personal offers 
              for our customers. We see that shoppers have responded positively to the changes in our stores' offer, 
              and Lenta's price perception is improving. 
              In terms of the Online segment, we continue to combine the operational processes of Lenta Online and 
              Utkonos, and we are also committed to expanding and improving our online offer for customers. The Lenta 
              Online service has begun delivering orders around the clock: as of today, 40 Lenta hypermarkets and 
              supermarkets offer round-the-clock delivery in 11 cities, and we have no intention of stopping there, as 
              we plan to expand the service throughout Russia. 
              I would like to thank our team for their continued effort and dedication. This year marks the Company's 
              30th anniversary. I am confident that we will become even stronger in this milestone year as we continue 
              to consistently implement our strategy». Q4 & FY 2022 OPERATING RESULTS, y-o-y 

Sales3

                             Q4'22   Q4'21   Change % Change FY'22   FY'21   Change % Change 
Total Sales (RUB million)    148,157 147,316 841    0.6%     537,401 483 641 53,760 11.1% 
Retail Sales                 145,816 144,813 1,003  0.7%     530,197 475 787 54,409 11.4% 
Hypermarkets4                121,703 122,652 -949   -0.8%    431,867 418 061 13,806 3.3% 
Small Formats                22,992  22,161  831    3.7%     90,478  57 727  32,751 56.7% 
Utkonos5                     1,121   -       1,121  -        7,852   -       7 ,852 - 
Wholesale6                   2,341   2,503   -162   -6.5%    7,204   7 853   -649   -8.3% 
Average Ticket (RUB)         1,116   1,146   -30    -2.6%    1,051   1 092   -41    -3.8% 
Hypermarkets                 1,452   1,458   -6     -0.4%    1,351   1 284   68     5.3% 
Small Formats                494     524     -30    -5.8%    494     525     -30    -5.8% 
Utkonos                      3,599   -       3,599  -        4,115   -       4,115  - 
Number of Tickets (millions) 131     126     4      3.4%     505     436     69     15.8% 
Hypermarkets                 84      84      0      -0.4%    320     326     -6     -1.9% 
Small Formats                47      42      4      10.1%    183     110     73     66.4% 
Utkonos                      0.3     -       0.3    -        2       -       2      - 

Stores and Selling Space

                               Q4'22     Q4'21     Change  % Change FY'22     FY'21     Change   % Change 
Total Retail Stores (eop)      820       757       63      8.3%     820       757       63       8.3% 
Hypermarkets4                  259       258       1       0.4%     259       258       1        0.4% 
Openings                       1         0         1       -        1         7         -6       -85.7% 
Closing                        0         1         -1      -        0         3         -3       - 
Small Formats                  561       499       62      12.4%    561       499       62       12.4% 
Openings                       24        90        -66     -73.3%   104       369       -265     -71.8% 
Closing                        16        6         10      -        42        9         33       - 
New Selling Space (sqm, eop)   7,896     29,167    -21,271 -72.9%   33,233    236,385   -203,152 -85.9% 
Hypermarkets4                  5,252     -5,225    10,477  0.0%     5,252     9,780     -4,528   -46.3% 
Small Formats                  2,644     34,392    -31,748 -92.3%   27,981    226,605   -198,624 -87.7% 
Total Selling Space (sqm, eop) 1,788,216 1,754,983 33,233  1.9%     1,788,216 1,754,983 33,233   1.9% 
Hypermarkets4                  1,415,820 1,410,568 5,252   0.4%     1,415,820 1,410,568 5,252    0.4% 
Small Formats                  372,396   344,415   27,981  8.1%     372,396   344,415   27,981   8.1% 

LFL Results7

              Q4'22                        FY'22 
              Sales Average Ticket Traffic Sales Average Ticket Traffic 
Total Retail  -1.3% -0.5%          -0.8%   2.3%  5.0%           -2.6% 
Hypermarkets  -0.4% -0.4%          -0.1%   3.0%  5.7%           -2.6% 
Small Formats -6.2% -4.1%          -2.2%   -3.6% -0.8%          -2.8% 

Online Sales3

                                 Q4'22  Q4'21 Change % Change FY'22  FY'21  Change % Change 
Total Online Sales (RUB million) 11,210 7,033 4,178  59.4%    40,400 19,340 21,060 108.9% 
Online Partners                  4,287  3,619 669    18.5%    12,059 10,625 1,434  13.5% 
Lenta Online8                    5,802  3,414 2,388  69.9%    20,489 8,715  11,774 135.1% 
Utkonos9                         1,121  -     1,121  -        7,852  -      7,852  - 
Average Online Ticket (RUB)      2,189  1,957 232    11.8%    2,252  1,851  401    21.7% 
Online Partners                  1,941  1,844 97     5.3%     1,913  1,808  105    5.8% 
Lenta Online8                    2,230  2,093 137    6.5%     2,107  1,906  202    10.6% 
Utkonos9                         3,599  -     3,599  -        4,102  -      4,102  - 
Total Online Orders (thousands)  5,121  3,593 1,528  42.5%    17,938 10,448 7,490  71.7% 
Online Partners                  2,208  1,962 246    12.5%    6,302  5,875  427    7.3% 
Lenta Online8                    2,601  1,631 970    59.5%    9,722  4,573  5,149  112.6% 
Utkonos9                         312    -     312    -        1,914  -      1,914  - 

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. Lenta's 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 Company's 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, children's 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, Lenta's 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 Lenta's Total Sales constituted 7.6% of Lenta's Total Sales, compared to 4.8% in the corresponding period of the previous year and 6.9% in Q3 2022.

For further information, please contact:

Lenta                              Lenta 
                                   Mariya Filippova 
Tatyana Vlasova                    Head of Public Relations and Government Affairs 
Head of Investor Relations and M&A maria.filippova@lenta.com 
tatyana.vlasova@lenta.com 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 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 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

                             October YoY    November YoY    December YoY 
Total Sales (RUB million)    42,295  0.2%   42,120   1.5%   63,743   0.1% 
Retail Sales                 41,737  0.9%   41,400   2.0%   62,678   -0.3% 
Hypermarkets4                33,975  -1.3%  34,137   0.2%   53,591   -1.1% 
Small Formats                7,157   3.1%   6,989    7.0%   8,845    1.9% 
Utkonos5                     605     -      274      -      242      - 
Wholesale6                   557     -33.4% 719      -17.7% 1,064    34.4% 
Average Ticket (RUB)         997     -0.8%  1,024    -4.0%  1,296    -2.7% 
Hypermarkets                 1,297   1.3%   1,332    -1.8%  1,676    -0.5% 
Small Formats                462     -5.1%  475      -5.9%  542      -6.0% 
Utkonos                      3,770   -      3,568    -      3,262    - 
Number of Tickets (millions) 42      1.7%   40       6.3%   48       2.5% 
Hypermarkets                 26      -2.5%  26       2.1%   32       -0.5% 
Small Formats                15      8.7%   15       13.7%  16       8.4% 
Utkonos                      0.2     -      0.1      100.0% 0.1      - 

Stores and Selling Space

                                October   November  December 
Total Retail Stores (eop)       801       812       820 
Hypermarkets4                   258       259       259 
Openings                        0         1         0 
Closing                         0         0         0 
Small Formats                   543       553       561 
Openings                        2         13        9 
Closing                         12        3         1 
New Selling Space (sqm, eop)    -5,174    8,711     4,359 
Hypermarkets                    0         5,252     0 
Small Formats                   -5,174    3,459     4,359 
Total Selling Space (sqm, eop)  1,775,147 1,783,857 1,788,216 
Hypermarkets4                   1,410,568 1,415,820 1,415,820 
Small Formats                   364,579   368,037   372,396 

Online Sales3

                                 October YoY    November YoY   December YoY 
Total Online Sales (RUB million) 3,304   75.9%  3,253    45.1% 4,654    52.3% 
Online Partners                  936     -10.8% 1,263    8.9%  2,088    32.6% 
Lenta Online8                    1,763   112.7% 1,715    58.5% 2,324    54.6% 
Utkonos9                         605     -      274      -     242      - 
Average Online Ticket (RUB)      2,245   21.5%  2,104    9.9%  2,212    7.1% 
Online Partners                  1,927   11.4%  1,850    3.4%  2,009    0.5% 
Lenta Online8                    2,136   5.6%   2,182    5.5%  2,347    9.0% 
Utkonos9                         3,770   -      3,568    -     3,262    - 
Total Online Orders (thousands)  1,471   44.7%  1,546    32.0% 2,104    42.2% 
Online Partners                  486     -20.0% 683      5.4%  1,039    32.0% 
Lenta Online8                    825     101.4% 786      50.3% 990      41.8% 
Utkonos9                         160     -      77       -     74       100.0% 

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)

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ISIN:          US52634T2006, US52634T1016 
Category Code: FR 
TIDM:          LNTA;LENT 
LEI Code:      213800OMCE8QATH73N15 
Sequence No.:  219092 
News ID:       1545567 
 
End of Announcement EquityStory RS News Service 
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