DIXY : launches cooperation with mini bakeries

PRESS RELEASE

DIXY LAUNCHES COOPERATION WITH MINI BAKERIES

Moscow, Russian Federation, February 6, 2018

As part of its assortment improvement program, DIXY Group decided to open a new procurement line - products of mini bakeries. This will allow to expand customer base and facilitate the development of small business in DIXY retail chain presence regions.

Currently the assortment of DIXY's bread and bakery sections is mostly generated from major bread factory supplies and partially by the chain's own production. Over 140 suppliers daily deliver 300 tons of 1700 articles to chain stores, including over 40 kinds of bread and over 20 kinds of bakery products. Bread and bakery products account for 4% of DIXY chain's total sales, of which own production and semi-finished products amount to 0.2%.

The requirements made by the chain to new potential suppliers include high product quality, packaging and labeling in line with the current legislation requirements. The terms, schedules, and delivery volume for each manufacturer shall be determined specifically for each supplier, taking into account its capacity and geographic location. Product prices shall be established in view of the market situation in each region. The mini bakeries cooperation program is going to operate in all the Company's presence regions (Moscow and the Moscow Region, as well as Central, North-West, and Urals Federal Districts).

DIXY retail chain Commercial Director Marina Ratnikova: "The decision to expand the assortment of bread and bakery products by products offered by small bakeries is linked to changing customer demand - the shift of preferences from traditional factory-baked products towards home-made products baked using home-style recipes in family bakeries. The Company is interested in increasing the number of partners in this category in order to offer its customers an extensive selection of fresh, high-quality, and attractive bread and bakery products. Cooperation of mini bakery enterprises with one of Russia's largest retail chains will provide an extra impetus for development of individual enterprise and small business in various regions."

Please send commercial offers toD.Dymov@dixy.ru

Background

DIXY Group (MICEX: DIXY) is one of Russia's leading companies in food and fast moving consumer goods retail.

As of December 31, 2017 the Company operated 2,703 stores, including 2,534 DIXY convenience stores, 128 Victoria stores and 41 compact hypermarkets MegaMart and MiniMart, located in 753 Russian towns and settlements.

The Group's footprint covers four Federal Districts of Russia: Central, North-West and Urals, as well as Kaliningrad and the Kaliningrad Region.

In 2017, DIXY Group's total revenue amounted to RUR 282 billion.

PJSC DIXY Group's shares are traded in the Moscow Exchange since 2007.

Contacts:

Vladimir Rusanov

Head of DIXY Group Press Service +7 495 223 3337 (ext.13-09)

+7 903 629 56 03v.rusanov@dixy.rupr@dixy.ruhttp://www.dixygroup.ru