MGNT.L Regulatory News (MGNT)

Press-release | Krasnodar | March 18, 2021.

Correction: Magnit Enters the Dagestan Market

Further to the "Magnit Enters the Dagestan Market" announcement released on March 18, 2021 at 11:30 London time PJSC Magnit (the "Company") advises that it incorrectly stated the period of stores opening in Dagestan region.

The full correct text of the press release shall be the following:

Krasnodar, Russia (March 18, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, and the Government of the Republic of Dagestan signed a cooperation agreement under which the Company plans to open around 180 stores in the region in the next five years. The document was signed by Abdulpatakh Amirkhanov, Chairman of the Government of the Republic of Dagestan, and Jan Dunning, President and CEO of Magnit, in the presence of Sergey Melikov, Acting Head of the Republic of Dagestan. Magnit is to become the first federal food retailer in the Republic.

The amount of investments in the development of the chain in Dagestan will amount to over RUB 2 bn. In the next five years, Magnit plans to open about 120 convenience and about 60 Magnit Cosmetic stores in the Republic. The Company plans to create over 2,000 new skilled jobs in the region. The Republic will become the 67th region of the retailer's presence.

Special attention in the agreement is paid to the development of small and medium-sized enterprises in Dagestan, including the launch of the products thereof on the shelves of the Company's stores. It is expected that Magnit will actively cooperate with local producers, which will increase the demand for local goods and the recognition of Dagestan brands not only in the Republic, but across the federal geography. Magnit plans to hold trainings where specialists will be able to answer the relevant questions from manufactures regarding working with the chain and provide help in solving various issues.

The first Magnit store is planned to open in July this year in the capital of the region, Makhachkala. Then the stores will appear in the cities of Derbent, Kaspiysk, Izberbash and Dagestanskiye Ogni.

"We are truly interested in Dagestan. We believe that the region has great potential for the development of modern retail formats. We plan to open the stores of our two most popular formats in the Republic, namely Magnit Convenience and Magnit Cosmetic. They combine convenient location, wide assortment for everyday shopping and high service standards. In addition, we are interested in having high-quality goods from Dagestan manufacturers on our shelves, so we will do our best for their promotion, including outside the region", - commented Jan Dunning, President and CEO of Magnit.

For further information, please contact:

Dmitry Kovalenko

Director for Investor Relations

Email: dmitry_kovalenko@magnit.ru

Office: +7 (861) 210-48-80

Dina Chistyak

Director for Investor Relations

Email: dina_chistyak@magnit.ru

Office: +7 (861) 210-9810 x 15101

Media Inquiries     Twitter

Email: press@magnit.ru    @MagnitIR

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 December 31, 2020, Magnit operated 38 distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) in 3,752 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 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 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.