Magnit to roll out bakery project in its convenience stores

DJ Magnit to roll out bakery project in its convenience stores

MAGNIT PJSC (MGNT) Magnit to roll out bakery project in its convenience stores 25-Jan-2022 / 10:45 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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Magnit to Roll Out Bakery Project in Its Convenience Stores

Krasnodar, Russia (January 25, 2022): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces the expansion of the assortment of its convenience stores with fresh bakery products of in-store production in the first quarter of 2022. At the first stage, bakeries will appear in 100 stores in different regions, i.e. Moscow, St. Petersburg, Central Russia, the South and Siberia, and it is planned to multiply the number of stores by the end of 2022. This will allow to increase the average ticket and store traffic. Last year, Magnit has already launched the pilot project in 21 stores in Moscow, St. Petersburg, Voronezh, Krasnodar, and other cities. Sales of bakery products in these stores have increased by 2-3 times and the traffic increased by 6-7%.

In 100 Magnit Convenience stores, customers will be offered croissants, hot dogs, puffs, fresh bread, and other pastry, including combo sets. Some stores will also offer various kinds of takeaway coffee. Magnit will differentiate its assortment of bakery products - which amounts to 22-44 items - depending on the store location. The assortment will also depend on the customer, pedestrian and car traffic, and the competitive environment.

An up-to-date equipment will be installed in stores, and professional technologists will make bread and bakery products. Specialists will choose individual production time for each store. For example, if there are offices and business centers nearby, then bakery products will be made in the morning, so that employees have time to have a bite. If the area is residential, then bread and other items will be baked in the afternoon towards evening. The quality will be controlled via the telemetry monitoring, i.e. all the equipment will be connected to the system allowing remote monitoring of processes in real time.

Bakery departments will be visually highlighted in the sales area and arranged so that visitors could see them immediately when entering the store and make a quick purchase. Self-service checkouts will be installed to save the time of customers.

« 
Ruslan Ismailov 
Deputy CEO, Director  "We see customer demand for Grab&Go food - these are ready-made meals that are easy and 
of Magnit Retail Chain convenient to take with you and eat right away, for example, on the way to work. The opening of 
Management       bakery departments will make our stores additional centers of attraction and offer customers 
            more useful and popular services". 
» 
       For further information, please contact: 
 
       Dina Chistyak 
       Head of Investor Relations 
       [e-mail] 
       Office: [phone] x 15101 
 
       Media Inquiries          Twitter 
       [e-mail]          @MagnitIR 
        Note to editors 
 
        "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the 
        southern Russian city of Krasnodar. As of September 30, 2021, Magnit operated 45 distribution centers 

In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had

revenues of RUB 1,311.5 billion and an EBITDA of RUB 151.4 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+.

Forward-looking statements 
 
       This document contains or may contain forward-looking statements that may or may not prove accurate. For 
       example, statements regarding expected sales growth rate and/or store openings are forward-looking 
       statements. Forward-looking statements involve known and unknown risks, uncertainties and other important 
       factors that could cause actual results to differ materially from what is expressed or implied by the 
       statements. Any forward-looking statement is based on information available to Magnit as of the date of 
       the statement. All written or oral forward-looking statements attributable to Magnit are qualified by 
       this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement 
       to reflect any change in circumstances. 

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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.:  138514 
EQS News ID:  1272280 
 
End of Announcement EQS News Service 
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January 25, 2022 02:45 ET (07:45 GMT)