MGNT.L Regulatory News (MGNT)

Press-release | Krasnodar | December 7, 2020.

Magnit and Delivery Club Launch Express Delivery of Cosmetics

Krasnodar, Russia (December 7, 2020): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, and Delivery Club have launched a service for express delivery from Magnit Cosmetic stores. Delivery Club couriers are already delivering goods from Magnit Cosmetic stores in Krasnodar and Ekaterinburg. In 2021, the service will also become available in Moscow, Saint-Petersburg, and all major cities where Magnit operates. Delivery time is 30-45 minutes. There is no minimum order, and the delivery fee varies depending on the order amount: the larger it is, the cheaper the delivery, down to free-of-charge when ordering from 699 rubles.

Delivery Club users will have access to around 6,600 SKUs from Magnit Cosmetic stores, namely care and decorative cosmetics, household chemicals, as well as home care products. The goods will be delivered in compliance with all of the requirements of Russian legislation; to ensure that, Delivery Club has developed special sealed bags which can be carried by delivery agents both in and out of their backpacks.

Magnit Cosmetic became Delivery Club's first specialized partner in cosmetics delivery. Previously, users could only get this category from the assortment of grocery stores connected to the service.

For Magnit, this also represents the first step in developing delivery from its drogerie format. Prior to this partnership, no delivery was available for products sold at Magnit Cosmetic stores.

"Based on the results of our work in the field of food delivery, we can see that there is also a great demand from consumers for complementary product categories. Most of these are present in grocery chains, but the interest for such products actually spans beyond what those chains can offer. For this very reason, we've launched pet products delivery in August 2020, and are now launching cosmetics delivery as well. Our partnership with Magnit in e-grocery demonstrates strong performance, and so we're happy to start developing another delivery segment together. Delivery of products from Magnit Cosmetic is a new product on the Russian e-commerce market-previously, it was impossible to get cosmetics from a specialized store in just half an hour,"- Guvenc Donmez, Chief Executive Foodtech Officer at O2O Holding (joint venture of Mail.ru Group and Sberbank).

"Magnit Cosmetic is one of our most successful and in-demand formats. We are happy that now, in a partnership with Delivery Club, we will be able to offer our customers a new convenient service that will bring Magnit Cosmetic even closer to consumers and reinforce its position on the market. Express delivery of care and decorative cosmetics supplemented by a broad assortment of home care products and household chemicals is a service that currently has no match in Russian retail, and so we're certain that this project will be successful. Magnit will continue to build up its presence in e-commerce to create a convenient ecosystem of digital and offline offerings for our customers,"-comments Florian Jansen, Magnit Deputy CEO and Executive Director.

Magnit Cosmetic is the fastest growing format of the Company. Net retail sales of the format grew by 24% in 9M 2020 and stood at 97.3 billion rubles, LFL sales growth was 10.3%. The share of drogerie format of the total Magnit retail sales reached 9.4% in 3Q 2020. At the end of 3Q 2020, Magnit operated about 6,000 Magnit Cosmetic stores in 65 regions of Russia.

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

Media Relations Department

Email: press@magnit.ru

Note to editors about Magnit:

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 September 30, 2020, Magnit operated 38 distribution centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986 drogerie stores) in 3,819 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS 16 management accounts results for 1H 2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 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.

Information about Delivery Club:

Delivery Club is the market leader in the delivery of ready-made food in Russia. The service fulfills over 5.5 million orders monthly. At the end of 2019, Delivery Club's revenue amounted to 4.46 billion rubles; at the end of the 3 quarters of 2020, it was over 7 billion rubles. More than 30.8 thousand eateries in 256 cities across the country are connected to Delivery Club. In more than 100 cities, Delivery Club users can order not only ready-made food from restaurants, but also delivery of food products and everyday goods. Delivery Club is also making developments in the field of takeout ordering. In 2019, Delivery Club became part of an O2O (online-to-offline) platform in the food and transport markets, which is being established by Mail.ru Group and Sberbank.

Forward-looking statements:

This document contains 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.