PJSC MAGNIT - Magnit May/5M 2015 Results

Press-release

Krasnodar

June 9, 2015

PJSC "Magnit" Announces 28.73% Retail Sales Growth in Rubles for May 2015[1]

Krasnodar, June 9, 2015: PJSC "Magnit", Russia's largest retailer (the "Company"; MOEX and LSE: MGNT) announces 28.73% retail sales growth in rubles for May 2015.

During May 2015 the Company opened (net) 254 stores. The total store base reached 10,537 stores (8,791 convenience stores, 200 hypermarkets, 107 "Magnit Family" stores and 1,439 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 5M 2015 increased by 31.24% in ruble terms (compared to 5M 2014) and stood at 375,177.79 million rubles.

According to Rosstat food inflation in May 2015 amounted to 0.1% compared to 1.5% in May 2014, in 5M 2015 it was 11.3% compared to 6.9% in 5M 2014.

May and 5M 2015 Key Operating and Financial Highlights:

	May 2015	May 2014	Growth Rate	5? 2015	5? 2014	Growth Rate
Number of opened stores, NET	254	174	n/a	826	424	n/a
convenience stores	127	135	n/a	447	345	n/a
hypermarkets	2	2	n/a	10	8	n/a
magnit family	1	1	n/a	10	5	n/a
drogerie stores	124	36	n/a	359	66	n/a
Total number of stores	10,537	8,517	n/a	10,537	8,517	n/a
convenience stores	8,791	7,545	n/a	8,791	7,545	n/a
hypermarkets	200	169	n/a	200	169	n/a
magnit family	107	51	n/a	107	51	n/a
drogerie stores	1,439	752	n/a	1,439	752	n/a
Selling space, eop, th. sq. m.	3,868.01	3,153.27	22.67%	3,868.01	3,153.27	22.67%
convenience stores	2,830.89	2,410.98	17.42%	2,830.89	2,410.98	17.42%
hypermarkets	587.31	504.54	16.41%	587.31	504.54	16.41%
magnit family	119.94	59.22	102.53%	119.94	59.22	102.53%
drogerie stores	329.87	178.54	84.76%	329.87	178.54	84.76%
Selling space growth, th. sq.m.	81.12	55.70	n/a	277.37	141.90	n/a
convenience stores	45.82	40.50	n/a	157.58	98.78	n/a
hypermarkets	5.85	6.58	n/a	28.22	21.66	n/a
magnit family	1.48	1.14	n/a	10.87	5.96	n/a
drogerie stores	27.97	7.48	n/a	80.70	15.50	n/a
Net retail sales, million RUR	80,064.17	62,195.35	28.73%	375,177.79	285,871.77	31.24%
convenience stores	59,822.63	47,331.76	26.39%	279,866.82	219,024.81	27.78%
hypermarkets	13,878.81	11,691.38	18.71%	66,063.55	52,376.18	26.13%
magnit family	3,680.02	1,888.47	94.87%	16,781.26	8,132.98	106.34%
drogerie stores	2,682.72	1,283.74	108.98%	12,466.15	6,337.81	96.69%
Net retail sales, million US$[2]	1,582.62	1,780.53	(11.12)%	6,471.86	8,146.12	(20.55)%
convenience stores	1,182.51	1,355.01	(12.73)%	4,827.74	6,241.27	(22.65)%
hypermarkets	274.34	334.70	(18.03)%	1,139.60	1,492.50	(23.64)%
magnit family	72.74	54.06	34.55%	289.48	231.76	24.91%
drogerie stores	53.03	36.75	44.29%	215.04	180.60	19.07%

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 March 31, 2015, Magnit operated 28 distribution centers and over 10,000 stores (8,581 convenience, 300 hypermarkets, and 1,239 drogerie stores) in approximately 2,180 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) 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 May 2015 - 50.5895 RUB per 1 USD, May 2014 - 34.9308 RUB per 1 USD, 5M 2015 - 57.9706 RUB per 1 USD, 5M 2014 - 35.0930 RUB per 1 USD