June 2013 Results

Press-release Krasnodar July 10, 2013 OJSC "Magnit" Announces 30.29% Retail Sales Growth in Rubles for June 2013[1] Krasnodar, July 10, 2013: OJSC "Magnit", Russia's largest retailer(the "Company"; MICEX and LSE: MGNT) announces 30.29% retail sales growth inrubles for June 2013. During June 2013 the Company opened (net) 170 stores. The totalstore base reached 7,416 stores (6,552 convenience stores, 138 hypermarkets,26 "Magnit Family" stores and 700 cosmetics stores). Preliminary consolidated unaudited net retail revenue (excl. VAT)in 6M 2013 increased by 31.49% in ruble terms (compared to 6M 2012) and stoodat 272,800.56 million rubles. We consider 1H 2013 sales growth dynamics stable. May 2013 is theexception from this trend due to the greater number of weekends and publicholidays, including Easter. Thus, there were 10 off days in May 2012 vs. 13 inMay 2013. Additionally, please note that the share of the southern region inthe total number of the Company's stores reduced due to expansion of itsgeographical coverage in the other regions. As the result, the effect of thesummer months on sales growth rates has become less pronounced. Thus, theshare of sales of stores located at the seaside amounted to 7.29% in June 2013vs. 8.04% in June 2012. June 2013 Key Operating and Financial Highlights: June 2013 June 2012 Growth RateNumber of opened stores, NET 170 109 n/a convenience stores 169 72 n/a hypermarkets 3 2 n/a magnit family 2 0 n/a cosmetics stores (4) 35 n/a Total number of stores 7,416 5,722 n/a convenience stores 6,552 5,268 n/a hypermarkets 138 98 n/a magnit family 26 5 n/a cosmetics stores 700 351 n/a Selling space growth, thousand sq.m. 57.43 40.27 n/a convenience stores 49.22 24.19 n/a hypermarkets 6.43 9.05 n/a magnit family 1.79 0 n/a cosmetics stores 0,003 7.03 n/a Selling space, eop, thousand sq. m. 2,748.09 2,119.53 29.66% convenience stores 2,129.38 1,729.52 23.12% hypermarkets 423.09 303.12 39.58% magnit family 31.19 6.20 n/a cosmetics stores 164.44 80.70 n/a Number of customers, million 207.54 168.80 22.95% convenience stores 185.11 155.21 19.26% hypermarkets 16.19 11.42 41.72% magnit family 2.30 0.54 n/a cosmetics stores 3.94 1.63 n/a Net retail sales, million RUR 47,482.97 36,445.07 30.29% convenience stores 37,034.13 29,689.60 24.74% hypermarkets 8,731.89 6,183.93 41.20% magnit family 808.89 179.54 n/a cosmetics stores 908.06 392.00 n/a Net retail sales, million US$[2] 1,470.96 1,107.18 32.86% convenience stores 1,147.27 901.96 27.20% hypermarkets 270.50 187.86 43.99% magnit family 25.06 5.45 n/a cosmetics stores 28.13 11.91 n/a 2Q and 6M 2013 Key Operating and Financial Highlights: 2Q 2013 2Q 2012 Growth Rate 6М 2013 6М 2012 Growth RateNumber of opened stores, NET 341 256 n/a 532 413 n/a convenience stores 343 164 n/a 506 262 n/a hypermarkets 6 7 n/a 12 8 n/a magnit family 5 0 n/a 6 2 n/a cosmetics stores (13) 85 n/a 8 141 n/a Total number of stores 7,416 5,722 n/a 7,416 5,722 n/a convenience stores 6,552 5,268 n/a 6,552 5,268 n/a hypermarkets 138 98 n/a 138 98 n/a magnit family 26 5 n/a 26 5 n/a cosmetics stores 700 351 n/a 700 351 n/a Selling space growth, th. sq.m. 118.21 94.63 n/a 198.84 149.37 n/a convenience stores 99.18 56.03 n/a 151.92 91.69 n/a hypermarkets 15.62 21.02 n/a 35.47 24.67 n/a magnit family 5.38 0 n/a 6.83 2.40 n/a cosmetics stores (1.97) 17.58 n/a 4.61 30.61 n/a Selling space, eop, th. sq. m. 2,748.09 2,119.53 29.66% 2,748.09 2,119.53 29.66% convenience stores 2,129.38 1,729.52 23.12% 2,129.38 1,729.52 23.12% hypermarkets 423.09 303.12 39.58% 423.09 303.12 39.58% magnit family 31.19 6.20 n/a 31.19 6.20 n/a cosmetics stores 164.44 80.70 n/a 164.44 80.70 n/a Number of customers, million 619.62 503.03 23.18% 1,182.63 965.08 22.54% convenience stores 554.28 464.10 19.43% 1,059.74 891.92 18.82% hypermarkets 47.80 32.86 45.47% 89.93 62.25 44.46% magnit family 6.50 1.54 n/a 12.09 2.41 n/a cosmetics stores 11.03 4.54 n/a 20.88 8.50 n/a Net retail sales, million RUR 141,582.69 106,874.05 32.48% 272,800.56 207,467.47 31.49% convenience stores 111,116.10 87,809.30 26.54% 215,261.33 171,468.09 25.54% hypermarkets 25,687.12 17,520.89 46.61% 48,358.02 33,201.16 45.65% magnit family 2,267.66 496.07 n/a 4,203.45 797.63 n/a cosmetics stores 2,511.80 1,047.79 n/a 4,977.77 2,000.59 n/a Net retail sales, million US$[3] 4,478.62 3,446.00 29.97% 8,795.22 6,771.35 29.89% convenience stores 3,514.89 2,831.29 24.14% 6,940.13 5,596.40 24.01% hypermarkets 812.55 564.94 43.83% 1,559.09 1,083.62 43.88% magnit family 71.73 15.99 n/a 135.52 26.03 n/a cosmetics stores 79.45 33.78 n/a 160.49 65.30 n/a LFL Results LFL growth 2Q 2013 - 2Q 2012[4] Convenience stores Hypermarkets TotalAverage ticket (excluding VAT), RUR 6.16% 2.80% 6.07%Traffic (0.07)% 4.55% 0.22%Revenue, RUR 6.09% 7.48% 6.30%LFL growth 6M 2013 to 6M 2012[5] Convenience stores Hypermarkets TotalAverage ticket (excluding VAT), RUR 5.67% 3.00% 5.70%Traffic (0.67)% 3.97% (0.39)%Revenue, RUR 4.96% 7.09% 5.29% For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x7600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 Dina Svishcheva Deputy Director, Investor Relations Email: [email protected] Office: +7-861-277-45-54 x5101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest retailer. Founded in 1994 by SergeyGalitskiy, the company is headquartered in the southern Russian city ofKrasnodar. As of June 30, 2013, Magnit operates 18 distribution centers andover 7,000 stores (6,552 convenience, 164 hypermarkets, and 700 cosmetics) inmore than 1,700 cities and towns throughout 7 federal regions of the RussianFederation. In accordance with its audited IFRS consolidated financialstatements for year-end 2012, Magnit had revenues of $14.43 billion USD and anEBITDA of $1.52 billion 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 now Europe's 2nd largest retailer. --------------------------------- [1] According to management accounts [2] Based on the average exchange rate for June 2013 of 32.2803 RUBper 1 USD, June 2012 - 32.9169 RUB per 1 USD [3] Based on the average exchange rate for 2Q 2013 - 31.6130 RUBper 1 USD, 2Q 2012 - 31.0139 RUB per 1 USD, 6M 2013 - 31.0169 RUB per 1 USD,6M 2012 - 30.6390 RUB per 1 USD [4] Based on 4,236 convenience stores which were opened by October1, 2011, and 65 hypermarkets which were opened by August 1, 2011, i.e. basedon the result of the convenience stores that had been operating for not lessthan six months and hypermarkets that had been operating for not less thaneight months and have achieved a mature level of sales [5] Based on 3,903 convenience stores which were opened by July 1,2011, and 60 hypermarkets which were opened by May 1, 2011, i.e. based on theresult of the convenience stores that had been operating for not less than sixmonths and hypermarkets that had been operating for not less than eight monthsand have achieved a mature level of sales