Lenta IPJSC: Lenta IPJSC Announces Expected Enactment of the Law Requiring Termination of Depositary Receipt Programs

Press Release | St. Petersburg | 25 April 2022

Lenta IPJSC Announces Expected Enactment of the Law Requiring Termination of Depositary Receipt Programs

St. Petersburg, Russia, 25 April 2022: Lenta IPJSC (LSE: LNTA, MOEX: LENT) (the "Company"), one of the largest multi-format retail chains in Russia, announces that the relevant provisions of the new Russian law requiring Russian issuers to terminate their depositary receipt programs (the "Law")  unless they receive a permission of the Government Commission on Control over Foreign Investments to keep the programs (the "Permission"), will enter into force on 27 April 2022 (the "Effective Date").

It is likely that the Law will apply to the global depositary receipts (ISIN: US52634T2006, ISIN: US52634T1016) (the "GDRs") representing ordinary shares in the Company (the "Ordinary Shares"). The Company is going to apply for the Permission of the Government Commission on Control over Foreign Investments to keep its GDR Program, however, no assurance can be given that such Permission will be granted.

Unless the Permission is obtained, the Company will be required to terminate its GDR program which will resulted in the cancellation of the GDRs by way of conversion into the underlying Ordinary Shares that will be distributed to the GDR holders as of the Effective Date. The mechanics and timing of conversion of the GDRs into the Ordinary Shares remain unclear. Furthermore, it is not clear at the moment if and/or when the GDR holders will be able to actually receive the Ordinary Shares, transfer them to their securities accounts and receive distributions on them.

Pursuant to the Law, as from the Effective Date: (i) only those investors who hold global depositary receipts (GDRs) as of the Effective Date will be entitled to convert them into ordinary shares of Lenta IPJSC; (ii) the outstanding GDRs will not grant voting or dividend rights until they have been converted into ordinary shares, and (iii) no further GDRs may be issued under the GDR program of Lenta IPJSC.

The Ordinary Shares will continue to be listed on the Moscow Exchange.

We recommend that investors discuss with their legal, financial, tax and strategic advisers the implications of the Law and potential termination of the Company's GDR program.

For further information, please visit https://corp.lenta.com/ or contact:

About Lenta

Lenta IPJSC (LSE: LNTA, MOEX: 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 541 supermarkets and convenience stores in over 200 cities and towns across Russia with more than 1.77 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).