Store opening guidance upgraded to at least 28 new hypermarket openings in 2015

Saint-Petersburg, Russia; 1 September 2015–Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce it has signed a purchase agreement with O’KEY Group to acquire three new stores and three land plots.

The three stores purchased will become Lenta Standard format hypermarkets. Two of the stores are located in Chelyabinsk and one in Volgograd. Construction and fitting out of the Volgograd store has been completed. Construction of one of the stores in Chelyabinsk has been completed and it is ready to be fitted out as a Lenta store. The second store in Chelyabinsk is in the final stages of construction. It is expected that all three stores will open in 2015.

The additional land plots are located in Chelyabinsk, Omsk and Taganrog. Lenta expects to construct new hypermarkets on each of these plots within the 2016-17 timeframe.

Lenta currently has one hypermarket in Chelyabinsk, two in Volgograd, four in Omsk and one in Taganrog.

The transaction will be funded from existing cash resources, so will not require any additional financing.

Lenta’s Chief Executive Officer, Jan Dunning said:

“The deal will strengthen Lenta’s position in Chelyabinsk, Volgograd, Omsk and Taganrog - all cities where we are already present. It also enhances our already strong new store pipeline, enabling an increase in our guidance to at least 28 new hypermarkets in 2015. In addition to supporting top line growth, the new stores will also help us realize additional supply chain efficiencies by increasing utilization of our DC in Rostov and a new DC under construction in Ekaterinburg which is scheduled to open later this year.

Lenta continues to deliver industry-leading growth in sales and selling space despite a challenging consumer and macro environment. Our financial position is strong and we are confident in our hypermarket opening programme for 2015 and in our ability to accelerate further in 2016.

Revised New Hypermarket Opening Guidance

Lenta increases its store opening guidance for 2015 to at least 28 hypermarkets. Lenta expects to further increase hypermarket openings in 2016 to exceed the 31 hypermarkets opened in 2014 and to maintain a similar or higher pace of expansion thereafter.

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

Lenta
Anna Meleshina,
Director of Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Albert Avetikov, Director of Investor Relations
Ňel:+7 812 363 28 44
E-mail: albert.avetikov@lenta.com  

Instinctif Partners
International Media:
Mark Walter and Saule Jandossova
Ňel:+44 020 7457 2020
E-mail: Mark.Walter@instinctif.com

Russian Media:
Leonid Fink
Ňel:+44 020 7457 2020
E-mail: Leonid.Fink@instinctif.com