PJSC MAGNIT - Magnit October/ 10M 2014 Results

Press-release

Krasnodar

November 10, 2014

PJSC "Magnit" Announces 36.14% Retail Sales Growth in Rubles for
October 2014[1]

Krasnodar, November 10, 2014: PJSC "Magnit", Russia's largest food
retailer (the "Company"; MICEX and LSE: MGNT) announces 36.14% retail sales
growth in rubles for October 2014.

During October 2014 the Company opened (net) 183 stores. The total
store base reached 9,203 stores (8,018 convenience stores, 179 hypermarkets,
72 "Magnit Family" stores and 934 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT)
in 10M 2014 increased by 30.66% in ruble terms (compared to 10M 2013) and
stood at 608,511.04 million rubles.

According to Rosstat food inflation in October 2014 amounted to
1.2% compared to 1.1% in October 2013, in 10M 2014 9.6% compared to 5.5% in
10M 2013.

October and 10M 2014 Key Operating and Financial Highlights:

                                   October 2014  October 2013     Growth Rate     10М 2014    10М 2013     Growth Rate
Number of opened stores, NET                183            93             n/a        1,110         855             n/a
               convenience stores           127            97             n/a          818         834             n/a
                     hypermarkets             4             2             n/a           18          24             n/a
                    magnit family             4             2             n/a           26          12             n/a
                  drogerie stores            48           (8)             n/a          248        (15)             n/a

Total number of stores                    9,203         7,739             n/a        9,203       7,739             n/a
               convenience stores         8,018         6,880             n/a        8,018       6,880             n/a
                     hypermarkets           179           150             n/a          179         150             n/a
                    magnit family            72            32             n/a           72          32             n/a
                  drogerie stores           934           677             n/a          934         677             n/a

Selling space, eop, th. sq. m.         3,394.98      2,874.85          18.09%     3,394.98    2,874.85          18.09%
               convenience stores      2,560.93      2,222.90          15.21%     2,560.93    2,222.90          15.21%
                     hypermarkets        534.01        453.19          17.83%       534.01      453.19          17.83%
                    magnit family         83.16         37.91         119.36%        83.16       37.91         119.36%
                  drogerie stores        216.89        160.86          34.84%       216.89      160.86          34.84%

Selling space growth, th. sq.m.           67.98         33.46             n/a       383.60      325.59             n/a
               convenience stores         41.22         27.16             n/a       248.73      245.44             n/a
                     hypermarkets         12.03          4.74             n/a        51.13       65.57             n/a
                    magnit family          4.33          2.47             n/a        29.90       13.55             n/a
                  drogerie stores         10.42        (0.92)             n/a        53.86        1.03             n/a

Net retail sales, million RUR         66,222.76     48,641.73          36.14%   608,511.04  465,703.21          30.66%
               convenience stores     50,437.17     37,825.19          33.34%   464,810.09  364,829.79          27.40%
                     hypermarkets     11,589.89      8,738.03          32.64%   109,939.68   83,732.89          31.30%
                    magnit family      2,415.42      1,000.01         141.54%    18,926.07    7,982.68         137.09%
                  drogerie stores      1,780.27      1,078.50          65.07%    14,835.19    9,157.84          61.99%

Net retail sales, million US$[2]       1,624.26      1,517.06           7.07%    16,932.86   14,708.35          15.12%
               convenience stores      1,237.08      1,179.71           4.86%    12,934.13   11,522.46          12.25%
                     hypermarkets        284.27        272.53           4.31%     3,059.26    2,644.54          15.68%
                    magnit family         59.24         31.19          89.95%       526.65      252.12         108.89%
                  drogerie stores         43.67         33.64          29.81%       412.81      289.23          42.73%

For further information, please contact:

Timothy Post                                                Director, Investor Relations
                                                            Email: [e-mail]
                                                            Office: [phone] x 17600
                                                            Mobile: [phone]

                                                            Direct Line: [phone]
Dina Svishcheva                                             Deputy Director, Investor Relations
                                                            Email: [e-mail]
                                                            Office: [phone] x 15101
                                                            Mobile: [phone]
                                                            Direct Line: [phone]

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 drogerie stores) 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 October 2014 - 40.7710
RUB per 1 USD, October 2013 - 32.0631 RUB per 1 USD, 10M 2014 - 35.9367 RUB
per 1 USD, 10M 2013 - 31.6625 RUB per 1 USD