Magnit Announces the Key Decisions of the BOD.

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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: [e-mail] 
 
                Office: [phone] x 15101 
 
Media Inquiries      Media Relations Department 
 
                                [e-mail] 
 
                             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)