Magnit

Earnings Release • Sep 9, 2014

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OJSC MAGNIT - August/8M 2014 Results

PR Newswire

London, September 9

Press-releaseKrasnodarSeptember 9, 2014OJSC "Magnit" Announces 34.13% Retail Sales Growth in Rubles forAugust 2014[1]Krasnodar, September 9, 2014: OJSC "Magnit", Russia's largest foodretailer (the "Company"; MICEX and LSE: MGNT) announces 34.13% retail salesgrowth in rubles for August 2014.During August 2014 the Company opened (net) 166 stores. The totalstore base reached 8,899 stores (7,812 convenience stores, 172 hypermarkets,62 "Magnit Family" stores and 853 drogeries).Preliminary consolidated unaudited net retail revenue (excl. VAT)in 8M 2014 increased by 29.49% in ruble terms (compared to 8M 2013) and stoodat 480,181.89 million rubles.According to Rosstat food inflation in August 2014 amounted to-0.3% compared to -0.7% in August 2013, in 8M 2014 7.3% compared to 4.4% in 8M2013.[1] According to management accountsAugust and 8M 2014 Key Operating and Financial Highlights: August 2014 August 2013 Growth Rate 8М 2014 8М 2013 Growth RateNumber of opened stores, NET 166 71 n/a 806 671 n/a convenience stores 126 70 n/a 612 642 n/a hypermarkets 2 4 n/a 11 21 n/a magnit family 1 0 n/a 16 10 n/a drogeries 37 (3) n/a 167 (2) n/aTotal number of stores 8,899 7,555 n/a 8,899 7,555 n/a convenience stores 7,812 6,688 n/a 7,812 6,688 n/a hypermarkets 172 147 n/a 172 147 n/a magnit family 62 30 n/a 62 30 n/a drogeries 853 690 n/a 853 690 n/aSelling space, eop, th. sq. m. 3,278.12 2,814.92 16.45% 3,278.12 2,814.92 16.45% convenience stores 2,494.66 2,169.17 15.01% 2,494.66 2,169.17 15.01% hypermarkets 512.23 446.93 14.61% 512.23 446.93 14.61% magnit family 71.71 35.44 102.36% 71.71 35.44 102.36% drogeries 199.51 163.39 22.11% 199.51 163.39 22.11%Selling space growth, th. sq.m. 50.72 31.60 n/a 266.74 265.67 n/a convenience stores 37.80 19.60 n/a 182.46 191.71 n/a hypermarkets 4.27 12.49 n/a 29.35 59.32 n/a magnit family 0.92 0.00 n/a 18.45 11.08 n/a drogeries 7.73 (0.49) n/a 36.47 3.56 n/aNet retail sales, million RUR 65,569.62 48,883.85 34.13% 480,181.89 370,839.74 29.49% convenience stores 49,790.82 37,729.49 31.97% 366,932.88 291,264.79 25.98% hypermarkets 11,823.92 9,137.01 29.41% 87,606.05 66,484.62 31.77% magnit family 2,211.58 958.09 130.83% 14,384.94 6,077.15 136.71% drogeries 1,743.31 1,059.25 64.58% 11,258.02 7,013.17 60.53%Net retail sales, million US$[2] 1,815.76 1,480.63 22.63% 13,688.00 11,775.90 16.24% convenience stores 1,378.82 1,142.78 20.65% 10,459.74 9,249.02 13.09% hypermarkets 327.43 276.75 18.31% 2,497.29 2,111.20 18.29% magnit family 61.24 29.02 111.04% 410.06 192.98 112.49% drogeries 48.28 32.08 50.47% 320.92 222.70 44.10%[2] Based on the average exchange rate for August 2014 - 36.1113RUB per 1 USD, August 2013 - 33.0156 RUB per 1 USD, 8M 2014 - 35.0805 RUB per1 USD, 8M 2013 - 31.4914 RUB per 1 USDFor further information, please contact:Timothy Post Director, Investor Relations Email: post@magnit.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@magnit.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 of June30, 2014, Magnit operated 24 distribution centers and over 8,600 stores (7,614convenience, 226 hypermarkets, and 778 drogeries) in approximately 2,000cities and towns throughout 7 federal regions of the Russian Federation.In accordance with the reviewed IFRS consolidated financialstatements for 1H 2014, Magnit had revenues of $9,979 million USD and anEBITDA of $1,045 million USD. Magnit's local shares are traded on the MoscowStock Exchange (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 bymarket capitalization, Magnit is one of the largest retailers in Europe.