Magnit

Capital/Financing Update • Dec 28, 2017

MAGNIT PJSC (MGNT)

28-Dec-2017 / 07:49 CET/CEST

Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

Press Release Krasnodar December 28, 2017

PJSC"Magnit" Announces the Execution of the Material Transaction

Krasnodar, Russia (December 28, 2017): Magnit PJSC, one of Russia's leading retailers (the "Company", the "Issuer"; MOEX and LSE: MGNT),announces theexecution ofthe materialtransaction onDecember 27, 2017.

Type of transaction: major transaction.

Subject of transaction:

Loan offundsat theinterest rate of 8.1%perannum

Content of transaction:

The Lender provides the Borrower with theloan offundsand the Borrower shallrepay theloanwithin the period determined by thecontract. The interest in the amount of 8.1 (eight point one) per cent per annumshall be accrued on the loan amount provided to the Borrower beginning from the date following the date of the loan provision. The repayment of the loan and (or) the interest may be effected by the Borrower in advance, without written notice to the Lender of the loan repayment by means of transfer of the loan to the bank details specified in the contract or otherwise notcontradictory to the CivilCode ofthe Russian Federation (offset ofmutualclaims,assignment ofaclaim,etc).

Deadline forfulfillment of obligations underthe transaction:

Termfor loan and interest repayment is December 25, 2020.

Parties and beneficiaries underthe transaction:

Parties to thetransaction:the Lender - PublicJoint Stock Company «Magnit»; the Borrower - Joint Stock Company «Tander».

The amount of the transaction in the monetary value and as a % of the asset value of the issuer:

The amount of the transaction is 38,970,670,660.00 (Thirty eight billion nine hundred seventy million six hundred seventy thousand six hundred sixty) rubles, thatamounts to 34.21%oftheissuer's balancesheetassets.

Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction:

113,890,709 thousand rubles

Date of the transaction execution: December 27, 2017

Information on the approval of the transaction:

The transaction was approved by the PJSC "Magnit" Board of Directors on December 20, 2017 (the minutes of the PJSC "Magnit" Board of Directors meetingw/o No. of December 20, 2017). Forfurtherinformation, please contact:

Timothy Post Head ofInvestor Relations Email: post@magnit.ru Office:+7-861-277-4554 x 17600

Dina Svishcheva DeputyDirector, Investor Relations Email:Chistyak@magnit.ru Office:+7-861-277-4554 x 15101

Company description:

Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As ofSeptember 30, 2017, Magnit operated 36 distribution centersand 15,697 stores (11,743 convenience, 432 hypermarkets and 3,522 drogeriestores) in 2,664 citiesand towns throughout 7 federalregions ofthe Russian Federation.

In accordance with thereviewed IFRS consolidated financialstatements for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDAof RUB 49 billion. Magnit's localshares are traded on the Moscow Exchange (MOEX:MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT)and it hasacredit rating fromStandard &Poor's ofBB. Measured bymarketcapitalization, Magnit is one of thelargest retailers inEurope.

ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:3.1.Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 5061

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