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MAGNIT PJSC (MGNT)
Magnit Announces the Key Decisions of the BOD.
26-Jul-2018 / 16:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Press Release
Krasnodar
July 26, 2018
Magnit Announces the Key Decisions of the BOD.
Krasnodar, July 26, 2018: PJSC "Magnit", one of Russia's leading retailers
(the "Company", MOEX and LSE: MGNT), announces the key decisions of the
Board of Directors of the Company taken at the meeting held on July 25,
2018.
The Board has decided to form the Capital Markets Committee, comprised of
Paul Michael Foley (Chairman of the Committee), Alexey Makhnev, and Charles
Emmitt Ryan. The Committee will have the following key functions and
responsibilities: further development and strengthening of the Company's
corporate governance systems; formation, development and implementation of
the Company's investor relations strategy; and assessment and recommendation
to the Board of Directors on the Company's dividend policy.
The Board of Directors has approved the new version of the Regulations on
Committees of the Board of Directors of PJSC "Magnit" that implies the
formation of the Capital Markets Committee and specifies its purposes.
The Board has considered the logistics development strategy for drogerie
stores and pharmacies and the potential acquisition of the pharmaceutical
distributor "SIA Group". The Board was not comfortable with the indicative
transaction terms. However, the Board and management agree on the strategic
logic of deploying capital to improve the supply chain and logistics
infrastructure in order to improve customer value proposition and LFLs. The
Board recommended that in addition to the ongoing work with Boston
Consulting Group, management should engage an investment bank to examine the
optimal strategy for improving logistics infrastructure to find the right
asset and terms and to revert to the Board.
The Board has considered and approved the key terms of the Short-Term
Incentive Program of PJSC "Magnit" Group of Companies which is based on the
higher share of performance bonuses in total compensation, with the size of
bonuses directly linked to meeting key performance targets including
revenue, LFL sales and EBITDA as a corporate part of the senior management
KPIs as well as to specific KPIs of each person depending on the area of
their responsibility.
The Board has considered and approved the key terms of the Long-Term
Incentive Program (LTIP) of PJSC "Magnit" Group of Companies. The LTIP is
introduced to ensure the growth of PJSC "Magnit" share price within five
years and retention of key employees of the PJSC "Magnit" Group of
Companies. The LTIP involves key managers at the levels of CEO-1, 2 and 3,
whose work has the greatest impact on the results of the PJSC "Magnit" Group
of Companies. It is assumed that the total number of participants of the
LTIP will not exceed 50 individuals. The amount of payments to the LTIP
participants depends on the financial performance of the PJSC "Magnit" Group
of Companies, time worked during the LTIP as well as level of participant's
responsibility for achievement of the result.
The Board considered the financial and operating results of PJSC "Magnit"
Group of Companies for the 1H 2018 as well as the budget of PJSC "Magnit"
Group of Companies for the 2H 2018 and recommended to submit the updated
budget for the 2H 2018 for approval at the next Board meeting.
For further information, please contact:
Dina Svishcheva Investor Relations
Email: Chistyak@magnit.ru
Office: +7-861-277-4554 x 15101
Media Inquiries Media Relations Department
press@magnit.ru
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers.
Founded in 1994, the company is headquartered in the southern Russian city
of Krasnodar. As of June 30, 2018, Magnit operated 37 distribution centers
and 16,960 stores (12,503 convenience, 244 hypermarkets, 213 supermarkets
and 4,000 drogerie stores) in 2,808 cities and towns throughout 7 federal
regions of the Russian Federation.
In accordance with the unaudited IFRS management accounts for 1H 2018,
Magnit had revenues of RUB 595 billion and an EBITDA of RUB 44 billion.
Magnit's local shares are traded on the Moscow 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.
ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5788
EQS News ID: 708331
End of Announcement EQS News Service
(END) Dow Jones Newswires
July 26, 2018 09:00 ET (13:00 GMT)
