MGNT.L Regulatory News (MGNT)

Press-release | Krasnodar | April 5, 2021.

Magnit Opens Ten Discounters in March

Krasnodar, Russia (April 5, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, opened ten My Price discounters in March. As a result, their total number increased to 33 stores as of the beginning of April.

In early March, the Company opened discounters in Omsk and Yaroslavskaya village (Krasnodar Region). Eight more stores were opened in the last two weeks of March in the villages of Tyubuk (Chelyabinsk Region) and Yamkino (Moscow Region), as well as in Lipetsk, Kaluga, Schuchye (Kurgan Region), Suvorov (Tula Region), Bolkhov (Oryol Region), and Korenevo urban-type settlement (Kursk Region).

The total area of stores is 150-350 sq. meters. The assortment includes about 1,700 fixed items. The focus is on the products of the first price segment and private labels (more than 15% of the total assortment), a significant number of which is produced at the Company's own facilities. This allows Magnit to control the cost and quality of goods on the shelf. The assortment also includes fast moving consumer goods in value packs: vegetables, fruits, dry foods, dairy products, meat gastronomy, poultry, preserved foods, confectionery, baby food, drinks, pet food, household chemicals, etc. The discounters follow simple zoning principles and have only a basic equipment setup. This, however, does not affect the level of customer service, which remains high and meets all the requirements to a modern store.

The first three stores of the new pilot format appeared in July 2020. The format of My Price stores is closer to the classic European discounter, which offers a high-quality assortment at low prices. The format is aimed at the customer who is not ready to sacrifice quality but strives for reasonable savings. The discounters opened at the premises previously occupied by Magnit Convenience stores show an average 20% increase in LFL sales, mainly driven by growth in LFL traffic.

The Company plans to open about 15 more My Price stores in April and several dozen new stores by the end of 2021.

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/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.