Magnit

Earnings Release • Apr 11, 2016

National Storage Mechanism | Additional information

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PJSC MAGNIT - March 2016 Results

PR Newswire

London, April 11

Press-release

Krasnodar

April 11, 2016

PJSC “Magnit” Announces 15.35% Retail Sales Growth in Rubles for March 2016[1]****

Krasnodar, April 11, 2016: PJSC “Magnit”, Russia’s largest food retailer (the “Company”; MOEX and LSE: MGNT) announces 15.35% retail sales growth in rubles for March 2016.

During March 2016 the Company opened (net) 132 stores. The total store base reached 12,434 stores (9,715 convenience stores, 225 hypermarkets, 157 “Magnit Family” stores and 2,337 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 3M 2016 increased by 16.59% in ruble terms (compared to 3M 2015) and stood at 254,435.00 million rubles.

According to Rosstat, food inflation in March 2016 amounted to 0.4% compared to 1.6% in March 2015, in 3M 2016 2.3% compared to 10.9% in 3M 2015.

General inflation in March 2016 amounted to 0.5% compared to 1.2% in March 2015, in 3M 2016 2.1% compared to 7.4% in 3M 2015.

March and 3M 2016 Key Operating and Financial Highlights:

	March 2016	March 2015	Growth Rate	3M 2016[2]	3M 2015	Growth Rate
Number of opened stores, NET	132	187	n/a	345	409	n/a
convenience stores	52	102	n/a	121	237	n/a
hypermarkets	2	3	n/a	6	6	n/a
magnit family	1	6	n/a	2	7	n/a
drogerie stores	77	76	n/a	216	159	n/a
Total number of stores	12,434	10,120	n/a	12,434	10,120	n/a
convenience stores	9,715	8,581	n/a	9,715	8,581	n/a
hypermarkets	225	196	n/a	225	196	n/a
magnit family	157	104	n/a	157	104	n/a
drogerie stores	2,337	1,239	n/a	2,337	1,239	n/a
Selling space, eop, th. sq. m.	4,523.63	3,732.73	21.19%	4,523.63	3,732.73	21.19%
convenience stores	3,162.88	2,754.69	14.82%	3,162.88	2,754.69	14.82%
hypermarkets	653,65	577.03	13.28%	653.65	577.03	13.28%
magnit family	172.03	116.12	48.15%	172.03	116.12	48.15%
drogerie stores	535.07	284.90	87.81%	535.07	284.90	87.81%
Selling space growth, th. sq.m.	38.81	65.56	n/a	109.91	142.09	n/a
convenience stores	18.92	35.27	n/a	43.32	81.38	n/a
hypermarkets	1.18	6.52	n/a	14.51	17.94	n/a
magnit family	0.87	6.26	n/a	1.85	7.05	n/a
drogerie stores	17.84	17.52	n/a	50.23	35.73	n/a
Number of customers, million	321.07	275.49	16.55%	893.52	766.34	16.60%
convenience stores	271.22	235.87	14.99%	754.01	658.09	14.58%
hypermarkets	23.22	22.21	4.55%	65.42	61.01	7.23%
magnit family	10.51	7.59	38.54%	29.66	20.89	41.95%
drogerie stores	16.12	9.82	64.17%	44.44	26.35	68.65%
Net retail sales, million RUR	89,964.28	77,994.74	15.35%	254,435.00	218,231.77	16.59%
convenience stores	66,367.33	57,828.25	14.77%	187,509.74	162,596.12	15.32%
hypermarkets	13,878.89	14,015.68	(0.98)%	39,472.89	38,730.75	1.92%
magnit family	4,735.59	3,450.15	37.26%	13,515.09	9,601.90	40.75%
drogerie stores	4,982.48	2,700.66	84.49%	13,937.28	7,303.00	90.84%
Net retail sales, million US$[3]	1,275.91	1,294.38	(1.43)%	3,409.36	3,509.01	(2.84)%
convenience stores	941.25	959.70	(1.92)%	2,512.58	2,614.43	(3.90)%
hypermarkets	196.84	232.60	(15.38)%	528.93	622.76	(15.07)%
magnit family	67.16	57.26	17.30%	181.10	154.39	17.30%
drogerie stores	70.66	44.82	57.66%	186.76	117.43	59.04%

LFL results

Formats	1Q 2016 - 1Q 2015[4]
# of Stores	Average Ticket	Traffic	Sales
Convenience Stores	8,154	0.32%	2.34%	2.67%
Hypermarkets	192	(3.90)%	(5.32)%	(9.01)%
Magnit Family	97	(3.79)%	(1.00)%	(4.76)%
Drogeries	1,114	11.51%	(2.56)%	8.66%
Total	9,557	(1.01)%	1.46%	0.44%

For further information, please contact:

Timothy Post	Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562
Investor Relations Office	MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: ir.magnit.com/
Media Inquiries	Media Relations Department press@magnit.ru

Company description:

Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2016, Magnit operated 34 distribution centers and about 12,434 stores (9,715 convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: 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 market capitalization, Magnit is one of the largest retailers in Europe.

[1] According to management accounts

[2] Please note that February 2016 had 29 days when comparing 3M 2016 with 3M 2015

[3] Based on the average exchange rate for March 2016 - 70.5101 RUB per 1 USD, March 2015 – 60.2563 RUB per 1 USD, 3M 2016 – 74.6283 RUB per 1 USD, 3M 2015 – 62.1919 RUB per 1 USD

[4] LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by March 1, 2015.