Press-release Krasnodar October 9, 2014 OJSC "Magnit" Announces 34.37% Retail Sales Growth in Rubles for September 2014[1] Krasnodar, October 9, 2014: OJSC "Magnit", Russia's largest food retailer (the "Company"; MICEX and LSE: MGNT) announces 34.37% retail sales growth in rubles for September 2014. During September 2014 the Company opened (net) 121 stores. The total store base reached 9,020 stores (7,891 convenience stores, 175 hypermarkets, 68 "Magnit Family" stores and 886 cosmetics stores). Preliminary consolidated unaudited net retail revenue (excl. VAT) in 9M 2014 increased by 30.03% in ruble terms (compared to 9M 2013) and stood at 542,288.27 million rubles. According to Rosstat food inflation in September 2014 amounted to 1.0% compared to 0.0% in September 2013, in 9M2014 - 8.4% compared to 4.4% in 9M2013. September 2014 Key Operating and Financial Highlights: September 2014 September 2013 Growth Rate Number of opened stores, NET 121 91 n/a convenience stores 79 95 n/a hypermarkets 3 1 n/a magnit family 6 0 n/a cosmetics stores 33 (5) n/a Total number of stores 9,020 7,646 n/a convenience stores 7,891 6,783 n/a hypermarkets 175 148 n/a magnit family 68 30 n/a cosmetics stores 886 685 n/a Selling space growth, th. sq.m. 48.88 26.47 n/a convenience stores 25.05 26.57 n/a hypermarkets 9.75 1.51 n/a magnit family 7.12 0 n/a cosmetics stores 6.97 (1.62) n/a Selling space, eop, th. sq. m. 3,327.00 2,841.39 17.09% convenience stores 2,519.71 2,195.74 14.75% hypermarkets 521.98 448.45 16.40% magnit family 78.83 35.44 122.47% cosmetics stores 206.48 161.77 27.63% Number of customers, million 245.11 199.69 22.74% convenience stores 213.55 176.82 20.77% hypermarkets 19.01 15.92 19.42% magnit family 5.25 2.60 102.24% cosmetics stores 7.30 4.36 67.43% Net retail sales, million RUR 62,106.39 46,221.74 34.37% convenience stores 47,440.04 35,739.81 32.74% hypermarkets 10,743.74 8,510.24 26.24% magnit family 2,125.71 905.51 134.75% cosmetics stores 1,796.90 1,066.18 68.54% Net retail sales, million US$[2] 1,639.70 1,416.35 15.77% convenience stores 1,252.49 1,095.16 14.37% hypermarkets 283.65 260.78 8.77% magnit family 56.12 27.75 102.26% cosmetics stores 47.44 32.67 45.21% 3Q and 9M 2014 Key Operating and Financial Highlights: 3Q 2014 3Q 2013 Growth Rate 9М 2014 9М 2013 Growth Rate Number of opened stores, NET 402 230 n/a 927 762 n/a convenience stores 277 231 n/a 691 737 n/a hypermarkets 6 10 n/a 14 22 n/a magnit family 11 4 n/a 22 10 n/a cosmetics stores 108 (15) n/a 200 (7) n/a Total number of stores 9,020 7,646 n/a 9,020 7,646 n/a convenience stores 7,891 6,783 n/a 7,891 6,783 n/a hypermarkets 175 148 n/a 175 148 n/a magnit family 68 30 n/a 68 30 n/a cosmetics stores 886 685 n/a 886 685 n/a Selling space growth, th. sq.m. 137.79 93.30 n/a 315.62 292.14 n/a convenience stores 86.05 66.36 n/a 207.51 218.28 n/a hypermarkets 17.44 25.36 n/a 39.10 60.83 n/a magnit family 11.80 4.25 n/a 25.57 11.08 n/a cosmetics stores 22.49 (2.67) n/a 43.44 1.95 n/a Selling space, eop, th. sq. m. 3,327.00 2,841.39 17.09% 3,327.00 2,841.39 17.09% convenience stores 2,519.71 2,195.74 14.75% 2,519.71 2,195.74 14.75% hypermarkets 521.98 448.45 16.40% 521.98 448.45 16.40% magnit family 78.83 35.44 122.47% 78.83 35.44 122.47% cosmetics stores 206.48 161.77 27.63% 206.48 161.77 27.63% Number of customers, million 758.35 625.49 21.24% 2,158.82 1,808.12 19.40% convenience stores 661.02 554.95 19.11% 1,890.94 1,614.69 17.11% hypermarkets 60.13 49.68 21.05% 173.08 139.61 23.98% magnit family 15.85 7.95 99.45% 41.26 20.03 105.95% cosmetics stores 21.35 12.92 65.24% 53.54 33.80 58.42% Net retail sales, million RUR 193,384.54 144,260.91 34.05% 542,288.27 417,061.48 30.03% convenience stores 147,390.87 111,743.27 31.90% 414,372.92 327,004.60 26.72% hypermarkets 34,341.49 26,636.85 28.92% 98,349.79 74,994.86 31.14% magnit family 6,428.94 2,779.21 131.32% 16,510.65 6,982.67 136.45% cosmetics stores 5,223.24 3,101.58 68.41% 13,054.92 8,079.35 61.58% Net retail sales, million US$[3] 5,343.46 4,398.51 21.48% 15,324.16 13,191.05 16.17% convenience stores 4,072.59 3,407.05 19.53% 11,709.49 10,342.68 13.22% hypermarkets 948.90 812.16 16.84% 2,779.20 2,371.98 17.17% magnit family 177.64 84.74 109.63% 466.56 220.85 111.26% cosmetics stores 144.32 94.57 52.62% 368.91 255.54 44.37% LFL results Formats 3Q 2014 - 3Q 2013[4] # of Stores Average Ticket Traffic Sales Convenience Stores 6,179 10.86% 5.74% 17.21% Hypermarkets 147 7.63% 6.38% 14.49% Magnit Family 29 9.12% 9.90% 19.93% Cosmetics Stores 591 3.44% 35.59% 40.25% Total 6,946 10.13% 6.43% 17.21% Formats 9M 2014 - 9M 20134 # of Stores Average Ticket Traffic Sales Convenience Stores 5,814 8.56% 3.42% 12.27% Hypermarkets 146 6.78% 5.80% 12.97% Magnit Family 29 8.14% 9.94% 18.88% Cosmetics Stores 529 3.40% 41.22% 46.03% Total 6,518 8.42% 4.33% 13.12% For 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: +7-861-277-4562 Dina Svishcheva Deputy Director, Investor Relations Email: Chistyak@magnit.ru Office: +7-861-277-45-54 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 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 September 30, 2014, Magnit operated 25 distribution centers and over 9,020 stores (7,891 convenience, 243 hypermarkets, and 886 drogeries) in approximately 2,000 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the reviewed IFRS consolidated financial statements for 1H 2014, Magnit had revenues of $9,979 million USD and an EBITDA of $1,045 million USD. Magnit's local shares are traded on the Moscow Stock 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 by market capitalization, Magnit is one of the largest retailers in Europe. --------------------------------- [1] According to management accounts [2] Based on the average exchange rate for September 2014 - 37.8766 RUB per 1 USD, September 2013 - 32.6344 RUB per 1 USD [3] Based on the average exchange rate for 3Q 2014 - 36.1909 RUB per 1 USD, 3Q 2013 - 32.7977 RUB per 1 USD, 9M 2014 - 35.3878 RUB per 1 USD, 9M 2013 - 31.6170 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 September 1, 2013.