Magnit

Earnings Release • Apr 10, 2014

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OJSC MAGNIT - 1Q 2014 Operating Results

PR Newswire

London, April 10

Press-releaseKrasnodarApril 10, 2014OJSC "Magnit" Announces 24.48% Retail Sales Growth in Rubles forMarch 2014[1]Krasnodar, April 10, 2014: OJSC "Magnit", Russia's largest foodretailer (the "Company"; MICEX and LSE: MGNT) announces 24.48% retail salesgrowth in rubles for March 2014.During March 2014 the Company opened (net) 49 stores. The totalstore base reached 8,256 stores (7,341 convenience stores, 165 hypermarkets,50 "Magnit Family" stores and 700 cosmetics stores).Preliminary consolidated unaudited net retail revenue (excl. VAT)in 3M 2014 increased by 24.95% in ruble terms (compared to 3M 2013) and stoodat 163,951.83 million rubles.According to Rosstat food inflation in March 2014 amounted to 1.8%compared to 0.4% in March 2013, in 3M2014 - 4.0% compared to 3.0% in 3M2013.March and 3M 2014 Key Operating and Financial Highlights: March 2014 March 2013 Growth Rate 3М 2014 3М 2013 Growth RateNumber of opened stores, NET 49 80 n/a 163 191 n/a convenience stores 45 70 n/a 141 163 n/a hypermarkets 3 4 n/a 4 6 n/a magnit family 2 0 n/a 4 1 n/a cosmetics stores (1) 6 n/a 14 21 n/aTotal number of stores 8,256 7,075 n/a 8,256 7,075 n/a convenience stores 7,341 6,209 n/a 7,341 6,209 n/a hypermarkets 165 132 n/a 165 132 n/a magnit family 50 21 n/a 50 21 n/a cosmetics stores 700 713 n/a 700 713 n/aSelling space growth, th. sq.m. 24.54 38.81 n/a 57.24 80.62 n/a convenience stores 12.60 22.84 n/a 37.51 52.74 n/a hypermarkets 8.68 14.39 n/a 10.66 19.85 n/a magnit family 2.46 0 n/a 4.82 1.45 n/a cosmetics stores 0.79 1.58 n/a 4.25 6.58 n/aSelling space, eop, th. sq. m. 3,068.61 2,629.88 16.68% 3,068.61 2,629.88 16.68% convenience stores 2,349.71 2,030.20 15.74% 2,349.71 2,030.20 15.74% hypermarkets 493.53 407.46 21.12% 493.53 407.46 21.12% magnit family 58.08 25.81 125.06% 58.08 25.81 125.06% cosmetics stores 167.29 166.41 0.53% 167.29 166.41 0.53%Number of customers, million 241.31 202.41 19.22% 662.66 563.01 17.70% convenience stores 211.57 181.07 16.84% 582.77 505.46 15.30% hypermarkets 19.70 15.55 26.63% 53.07 42.13 25.98% magnit family 4.39 2.07 112.40% 11.53 5.58 106.65% cosmetics stores 5.65 3.72 52.05% 15.29 9.85 55.23%Net retail sales, million RUR 59,813.27 48,051.12 24.48% 163,951.83 131,217.87 24.95% convenience stores 45,654.95 37,801.71 20.77% 126,020.31 104,145.23 21.00% hypermarkets 11,045.11 8,573.74 28.82% 29,589.83 22,670.89 30.52% magnit family 1,704.15 729.71 133.54% 4,453.55 1,935.79 130.06% cosmetics stores 1,409.07 945.96 48.96% 3,888.13 2,465.97 57.67%Net retail sales, million US$[2] 1,651.73 1,560.17 5.87% 4,689.82 4,314.36 8.70% convenience stores 1,260.75 1,227.38 2.72% 3,604.79 3,424.23 5.27% hypermarkets 305.01 278.38 9.57% 846.41 745.40 13.55% magnit family 47.06 23.69 98.62% 127.39 63.65 100.15% cosmetics stores 38.91 30.71 26.69% 111.22 81.08 37.17%LFL resultsFormats 1Q 2014 - 1Q 2013[3] # of Stores Average Ticket Traffic SalesConvenience Stores 5,851 5.32 0.61 5.96Hypermarkets 128 4.34 4.62 9.17Magnit Family 21 5.27 9.93 15.73Cosmetics Stores 571 1.97 50.54 53.50Total 6,571 5.60 1.79 7.49For further information, please contact:Timothy Post Director, Investor Relations Email: post@gw.tander.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562Dina Svishcheva Deputy Director, Investor Relations Email: Chistyak@gw.tander.ru Office: +7-861-277-45-54 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562Company description:Magnit is Russia's largest food retailer. Founded in 1994, thecompany is headquartered in the southern Russian city of Krasnodar. As ofMarch 31, 2014, Magnit operated 23 distribution centers and over 8,200 stores(7,341 convenience, 215 hypermarkets, and 700 cosmetics) in more than 1,905cities and towns throughout 7 federal regions of the Russian Federation.In accordance with the audited IFRS consolidated financialstatements for 2013, Magnit had revenues of $18,202 million USD and an EBITDAof $2,032 million USD. Magnit's local shares are traded on the Moscow StockExchange (MICEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT)and it has a credit rating from Standard & Poor's of BB. Measured by marketcapitalization, Magnit is one of the largest retailers in Europe.---------------------------------[1] According to management accounts[2] Based on the average exchange rate for March 2014 - 36.2124 RUBper 1 USD, March 2013 - 30.7987 RUB per 1 USD, 3M 2014 - 34.9591 RUB per 1USD, 3M 2013 - 30.4142 RUB per 1 USD[3] LFL calculation base includes stores (all formats), which havebeen opened 12 months prior to the last month of the reporting period. i.e. byMarch 1, 2013.