PJSC MAGNIT - July 2016 Results

Press Release

Krasnodar

August 9, 2016

PJSC "Magnit" Announces 13.77% Retail Sales Growth in Rubles for July 2016[1]

Krasnodar, August 9, 2016: PJSC "Magnit", Russia's largest food retailer (the "Company"; MOEX and LSE: MGNT) announces 13.77% retail sales growth in rubles for July 2016.

During July 2016 the Company opened (net) 133 stores. The total store base reached 13,021 stores (9,955 convenience stores, 230 hypermarkets, 174 "Magnit Family" stores and 2,662 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 7M 2016 increased by 14.38% in ruble terms (compared to 7M 2015) and stood at 612,374.89 million rubles.

According to Rosstat, general inflation in July 2016 amounted to 0.5% compared to 0.8% in July 2015, in 7M 2016 it was 3.9% compared to 9.4% in 7M 2015.

Food inflation in July 2016 amounted to 0.0% compared to -0.3% (minus zero point three) in July 2015, in 7M 2016 it was 3.2% compared to 10.5% in 7M 2015.

July and 7M 2016 Key Operating and Financial Highlights[2]:

	July 2016	July 2015	Growth Rate	7M 2016	7M 2015	Growth Rate
Number of opened stores, NET	133	211	n/a	932	1,228	n/a
convenience stores	53	108	n/a	361	654	n/a
hypermarkets	2	5	n/a	11	16	n/a
magnit family	4	5	n/a	19	18	n/a
drogerie stores	74	93	n/a	541	540	n/a
Total number of stores	13,021	10,939	n/a	13,021	10,939	n/a
convenience stores	9,955	8,998	n/a	9,955	8,998	n/a
hypermarkets	230	206	n/a	230	206	n/a
magnit family	174	115	n/a	174	115	n/a
drogerie stores	2,662	1,620	n/a	2,662	1,620	n/a
Selling space, eop, th. sq. m.	4,722.33	4,001.98	18.00%	4,722.33	4,001.98	18.00%
convenience stores	3,258.33	2,903.44	12.22%	3,258.33	2,903.44	12.22%
hypermarkets	661.74	600.53	10.19%	661.74	600.53	10.19%
magnit family	191.27	127.92	49.52%	191.27	127.92	49.52%
drogerie stores	610.99	370.09	65.09%	610.99	370.09	65.09%
Selling space growth, th. sq. m.	45.13	73.98	n/a	308.61	411.34	n/a
convenience stores	22.20	37.19	n/a	138.77	230.13	n/a
hypermarkets	1.23	10.72	n/a	22.60	41.44	n/a
magnit family	4.22	5.19	n/a	21.09	18.85	n/a
drogerie stores	17.47	20.88	n/a	126.15	120.92	n/a
Net retail sales, million RUR	92,916.10	81,669.91	13.77%	612,374.89	535,367.97	14.38%
convenience stores	68,821.44	60,485.54	13.78%	453,848.88	398,919.29	13.77%
hypermarkets	13,547.91	13,807.44	(1.88)%	92,503.95	93,178.57	(0.72)%
magnit family	4,991.56	3,746.84	33.22%	32,484.97	24,083.66	34.88%
drogerie stores	5,555.18	3,630.09	53.03%	33,537.10	19,186.45	74.80%
Net retail sales, million US$	1,444.09	1,430.83	0.93%	8,824.19	9,335.07	(5.47)%
convenience stores	1,069.61	1,059.69	0.94%	6,539.86	6,955.85	(5.98)%
hypermarkets	210.56	241.90	(12.96)%	1,332.96	1,624.73	(17.96)%
magnit family	77.58	65.64	18.18%	468.10	419.94	11.47%
drogerie stores	86.34	63.60	35.76%	483.26	334.55	44.45%

For further information, please contact:

Timothy Post	Head of Investor Relations Email: [e-mail] Office: [phone] x 17600 Mobile: [phone] Direct Line: [phone]
Investor Relations Office	[e-mail] Direct Line: [phone] Website: ir.magnit.com/
Media Inquiries	Media Relations Department [e-mail]

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 June 30, 2016, Magnit operated 34 distribution centers and 12,888 stores (9,902 convenience, 398 hypermarkets, and 2,588 drogerie stores) in 2,397 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS management accounts for 1H 2016, Magnit had revenues of RUB 522 billion and an EBITDA of RUB 52 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 July 2016 -64.3423 RUB per 1 USD, July 2015 - 57.0787 RUB per 1 USD, 7M 2016 -69.3973 RUB per 1 USD, 7M 2015 - 57.3502 RUB per 1 USD