MGNT.L Regulatory News (MGNT)

Press Release | Krasnodar | May 12, 2020

Magnit to accelerate its digital transformation

Krasnodar, Russia (May 12, 2020): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, announces it has attracted a new team led by Florian Jansen to accelerate the digital transformation of the Company. Florian is appointed as Executive Director and also becomes one of the three deputies of the CEO Jan Dunning.

Next to him, Magnit welcomes an arrival of a highly professional top-management team from Lamoda, including Paul Rogowski, appointed as Transformation Office Director; Fabian Schaefer, Data and Analytics Director; Valentin Schitov, Chief Information Officer; Pavel Orlov, Innovation and Partnerships Director.

The new team will lead the Company's recently launched digital transformation, which is essential to strategy implementation across functions. The goals include:

As Executive Director of Magnit, Florian will be responsible for the Transformation Office, PMO, Business Process Optimization, Technology and IT, Advanced Analytics and Big Data, Marketing (including digital products, customer loyalty system, CRM), and omnichannel services. These functions are core for any modern retailer. Their consolidated management by Florian Jansen ensures that Magnit will accomplish the digital transformation effectively and well-coordinated.

Florian Jansen is one of most successful and experienced entrepreneurs in Russian online retail. In 2011, he co-founded Lamoda Group, which has become a leading fashion and lifestyle platform in Russia under his leadership during over 10 years. Prior to taking the lead in Lamoda Group, Florian Jansen worked at McKinsey & Company from 2006-2011. Florian holds Master's degrees from the German University of Witten/Herdecke, the London School of Economics and Columbia University, New York.

In June 2019, Florian Jansen was elected as an independent non-executive member of Magnit's Board of Directors, heading the Strategy Committee since July 2019. Since then, Florian had the chance to deeply understand the business of the Company. Together with the Board and the executive team, he took part in framing many strategic decisions on Magnit. Florian played a key role in the development of the Company's digital transformation strategy and its recent launch.

Jan Dunning, Magnit's President and CEO, commented on the appointment:

«So far Magnit has not been active in digital technologies, e-commerce and innovations. We focused our efforts on increasing our effectiveness across traditional formats and operations in general, while also improving our offer to the customers. There is still a long way to go, however, the time has come for Magnit to make an important step forward into the digital era. I am therefore excited to welcome a top class professional team to Magnit with the expertise that is yet new to the Company. Real entrepreneurs, the team has built a leading online business from scratch, and now can bring their experience to Magnit. Big data, advanced analytics, new IT technologies, omni channels are becoming more and more important to maintain sustainability of the business. The expertise of the new team in these areas will help Magnit to accelerate its digital transformation and become one of the leading players in the Russian online retail market".

Florian Jansen, Magnit's Executive Director and Deputy CEO, commented on the appointment:

«Magnit is a great, important company which I've always admired. Since I joined the Board of Directors, this admiration has been only growing: the scale and the ambition excites me, the people I meet and the DNA of the company are inspiring. So, when Jan invited me to join the team and lead the digital transformation, I could not refuse. Magnit - as any traditional retailer - is facing a huge challenge: the world and consumers are changing at accelerated pace, and the Company has to modernize its business to remain successful. Transformation will touch almost every aspect of Magnit's business, that's why it is very important for us to run this process structured and well-coordinated. Our goal is to further build on our current operational and strategic advantages to ensure sustainable growth in future. I am excited about the challenges ahead».

Charles Ryan, Magnit's Chairman of the Board of Director, commented on appointment:

«On behalf of the Board I would like to thank Florian Jansen for his contribution to Magnit's development in his Independent Director role. I believe, his deep experience and knowledge of digital platforms in retail are in great demand nowadays and will contribute well to the Company's ambitious plans in transformation. We are very happy with this transition and wish him success in his new endeavor».

Florian Jansen will start his new role in Magnit upon obtaining a work permit. Given his appointment as an Executive Director of Magnit, Florian Jansen refused to be elected to the Board of Directors at the Annual General Shareholders Meeting of PJSC "Magnit" on June 4, 2020.

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

Email: press@magnit.ru

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 March 31, 2020, Magnit operated 38 distribution centres and 20,860 stores (14,594 convenience, 472 supermarkets and 5,794 drogerie stores) in 3,718 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for FY 2019, Magnit had revenues of RUB 1,369 billion and an EBITDA of RUB 147 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.