Source - PRN

Press Release

Krasnodar

September 9, 2016

Magnit Announces 13.83% Retail Sales Growth in Rubles for August 2016[1]

Krasnodar, Russia (September 9, 2016): Magnit PJSC, one of Russia’s leading retailers (the “Company”; MOEX and LSE: MGNT), announces 13.83% retail sales growth in rubles for August 2016.

During August 2016 the Company opened (net) 220 stores. The total store base reached 13,241 stores (10,072 convenience stores, 231 hypermarkets, 176 “Magnit Family” stores and 2,762 drogerie stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 8M 2016 increased by 14.31% in ruble terms (compared to 8M 2015) and stood at 702,506.32 million rubles.

According to Rosstat, general inflation in August 2016 amounted to 0.0% compared to 0.4% in August 2015, in 8M 2016 it was 3.9% compared to 9.8% in 8M 2015.

Food inflation in August 2016 amounted to -0.6% (minus zero point six) compared to -0.7% (minus zero point seven) in August 2015, in 8M 2016 it was 2.6% compared to 9.8% in 8M 2015.

August and 8M 2016 Key Operating and Financial Highlights[2]:

August 2016 August 2015 Growth Rate 8? 2016 8? 2015 Growth Rate
Number of opened stores, NET 220 231 n/a 1 152 1,459 n/a
convenience stores 117 129 n/a 478 783 n/a
hypermarkets 1 1 n/a 12 17 n/a
magnit family 2 7 n/a 21 25 n/a
drogerie stores 100 94 n/a 641 634 n/a
Total number of stores 13,241 11,170 n/a 13,241 11,170 n/a
convenience stores 10,072 9,127 n/a 10,072 9,127 n/a
hypermarkets 231 207 n/a 231 207 n/a
magnit family 176 122 n/a 176 122 n/a
drogerie stores 2,762 1,714 n/a 2,762 1,714 n/a
Selling space, eop, th. sq. m. 4,791.80 4,081.09 17.41% 4,791.80 4,081.09 17.41%
convenience stores 3,297.15 2,951.29 11.72% 3,297.15 2,951.29 11.72%
hypermarkets 665.46 603.12 10.34% 665.46 603.12 10.34%
magnit family 193.27 134.91 43.26% 193.27 134.91 43.26%
drogerie stores 635.92 391.77 62.32% 635.92 391.77 62.32%
Selling space growth, th. sq. m. 69.47 79.11 n/a 378.08 490.45 n/a
convenience stores 38.82 47.85 n/a 177.59 277.98 n/a
hypermarkets 3.72 2.59 n/a 26.32 44.03 n/a
magnit family 2.00 6.99 n/a 23.09 25.84 n/a
drogerie stores 24.93 21.68 n/a 151.08 142.60 n/a
Net retail sales, million RUR 90,131.43 79,181.71 13.83% 702,506.32 614,549.68 14.31%
convenience stores 66,528.33 58,274.92 14.16% 520,377.20 457,194.22 13.82%
hypermarkets 12,943.96 13,326.71 (2.87)% 105,447.90 106,505.27 (0.99)%
magnit family 4,801.13 3,721.70 29.00% 37,286.10 27,805.36 34.10%
drogerie stores 5,858.02 3,858.39 51.83% 39,395.12 23,044.83 70.95%
Net retail sales, million US$ 1,388.15 1,214.37 14.31% 10,206.46 10,531.73 (3.09)%
convenience stores 1,024.63 893.73 14.65% 7,560.37 7,835.08 (3.51)%
hypermarkets 199.35 204.38 (2.46)% 1,532.01 1,825.21 (16.06)%
magnit family 73.94 57.08 29.55% 541.72 476.51 13.68%
drogerie stores 90.22 59.17 52.47% 572.36 394.93 44.93%

For further information, please contact:

Timothy Post Head of Investor Relations
Email: [email protected]
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562
Investor Relations Office [email protected]
Direct Line: +7-861-277-4562
Website: ir.magnit.com/
Media Inquiries Media Relations Department
[email protected]

Company description:

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, 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 reviewed IFRS consolidated financial statements 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 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 August 2016 – 64.9293 RUB per 1 USD, August 2015 – 65.2041 RUB per 1 USD, 8M 2016 –68.8296 RUB per 1 USD, 8M 2015 – 58.3522 RUB per 1 USD