Magnit Unaudited 1Q 2015 Financial Results

Press-release Krasnodar April 22, 2015 PJSC "Magnit" Announces Unaudited 1Q 2015Results Krasnodar, April 22, 2015: PJSC "Magnit", Russia's largest food retailer (the"Company"; MOEX and LSE: MGNT) announces its unaudited 1Q 2015 results preparedin accordance with IFRS. During 1Q 2015 the Company added (net) 409 stores (237 convenience stores, 6hypermarkets, 7 "Magnit Family" stores and 159 drogerie stores) and increasedits selling space by 21.64% in comparison to 1Q 2014 from 3,068.61 thousand sq.m. to 3,732.73 thousand sq. m. The total store base as of March 31, 2015reached 10,120 stores (8,581 convenience stores, 196 hypermarkets, 104 "MagnitFamily" stores and 1,239 drogerie stores). Revenue increased by 33.40% YoY from 163,990.13 million RUR in 1Q 2014 to218,756.26 million RUR in 1Q 2015. The top line growth was due to an increasein selling space as well as to a 14.53% increase of like-for-like sales. Gross profit increased by 32.35% from 44,665.95 million RUR to 59,116.27million RUR. Gross margin in 1Q 2015 amounted to 27.02%. EBITDA increased by 37.07% from 14,879.50 million RUR in 1Q 2014 to 20,395.23million RUR in 1Q 2015. EBITDA margin in the 1Q of 2015 was 9.32%, which is 25b. p. higher than 1Q 2014 (9.07%). 1Q 2015 net income increased by 35.63% and amounted to 9,477.84 million RUR vs.6,988.23 million RUR in 1Q 2014. Net income margin for 1Q 2015 was 4.33%. 1Q 2015 Key Operating Highlights: 1Q 2015 1Q 2014 Growth Rate Number of opened stores, NET 409 163 n/a convenience stores 237 141 n/a hypermarkets 6 4 n/a magnit family 7 4 n/a drogerie stores 159 14 n/a Total number of stores 10,120 8,256 n/a convenience stores 8,581 7,341 n/a hypermarkets 196 165 n/a magnit family 104 50 n/a drogerie stores 1,239 700 n/a Selling space, eop, th. sq. m. 3,732.73 3,068.61 21.64% convenience stores 2,754.69 2,349.71 17.24% hypermarkets 577.03 493.53 16.92% magnit family 116.12 58.08 99.92% drogerie stores 284.90 167.29 70.30% Selling space growth, th. sq.m. 142.09 57.24 n/a convenience stores 81.38 37.51 n/a hypermarkets 17.94 10.66 n/a magnit family 7.05 4.82 n/a drogerie stores 35.73 4.25 n/a Number of customers, million 766.34 662.66 15.65% convenience stores 658.09 582.77 12.93% hypermarkets 61.01 53.07 14.95% magnit family 20.89 11.53 81.12% drogerie stores 26.35 15.29 72.31% LFL Results Formats 1Q 2015 - 1Q 2014 # of Stores Average Ticket Traffic Sales Convenience Stores 7,046 13.87% 0.17% 14.06% Hypermarkets 162 14.38% 0.47% 14.91% Magnit Family 47 15.23% 1.79% 17.29% Drogerie stores 639 9.97% 12.63% 23.86% Total 7,894 13.97% 0.49% 14.53% 1Q 2015 Key Financial Results, million RUR 1Q 2015 1Q 2014 Growth Rate Net sales 218,756.26 163,990.13 33.40% convenience stores 162,596.12 126,020.31 29.02% hypermarkets 38,730.75 29,589.83 30.89% magnit family 9,601.90 4,453.55 115.60% drogerie stores 7,303.00 3,888.13 87.83% wholesale 524.49 38.30 n/a Gross profit 59,116.27 44,665.95 32.35% Grossmargin,% 27.02% 27.24% n/a EBITDAR 26,905.10 19,330.73 39.18% EBITDAR margin, % 12.30% 11.79% n/a EBITDA 20,395.23 14,879.50 37.07% EBITDA margin, % 9.32% 9.07% n/a EBIT 15,394.50 10,726.22 43.52% EBIT margin, % 7.04% 6.54% n/a Net income 9,477.84 6,988.23 35.63% Net income margin, % 4.33% 4.26% n/a 1Q 2015 Key Financial Results, US$ million 1Q 2015 1Q 2014 Growth Rate Net sales 3,517.44 4,690.91 (25.02)% convenience stores 2,614.43 3,604.79 (27.47)% hypermarkets 622.76 846.41 (26.42)% magnit family 154.39 127.39 21.19% drogerie stores 117.43 111.22 5.58% wholesale 8.43 1.10 n/a Gross profit 950.55 1,277.66 (25.60)% Gross margin, % 27.02% 27.24% n/a EBITDAR 432.61 552.95 (21.76)% EBITDAR margin, % 12.30% 11.79% n/a EBITDA 327.94 425.63 (22.95)% EBITDA margin, % 9.32% 9.07% n/a EBIT 247.53 306.82 (19.32)% EBIT margin, % 7.04% 6.54% n/a Net income 152.40 199.90 (23.76)% Net income margin, % 4.33% 4.26% n/a Note: net revenue in US$ terms is calculated using the daily exchange rate. For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x 17600 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 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest food retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of March 31, 2015,Magnit operated 28 distribution centers and over 10,000 stores (8,581convenience, 300 hypermarkets, and 1,239 drogerie stores) in approximately2,180 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the audited IFRS consolidated financial statements for 2014,Magnit had revenues of RUB 764 billion and an EBITDA of RUB 86 billion.Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) andits GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit ratingfrom Standard & Poor's of BB+. Measured by market capitalization, Magnit is oneof the largest retailers in Europe. Based on management accounts LFL calculation base includes stores (all formats), which have been opened 12months prior to the last month of the reporting period. i.e. by March 1, 2014. Based on the average exchange rate for 1Q 2015 - 62.1919 RUB per 1 USD, 1Q 2014- 34.9591 RUB per 1 USD