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Press Release | Krasnodar | September 26, 2018

PJSC "Magnit" Announces the Decisions of the Board

Krasnodar, Russia (September 26, 2018): Magnit PJSC (MOEX and LSE: MGNT; Company, Group), one of Russia's leading retailers, announces the decisions of the Board of Directors taken on the meeting held on September 25, 2018.

The Board has approved the PJSC "Magnit" transformation strategy. The Strategy presentation will be published at the Company's website http://ir.magnit.com/en/shareholder-center/investor-presentation/

The Board approved the Long-Term Incentive Programme (LTIP) and the list of its participants. The goal of the LTIP is to motivate the management for the increase of the market capitalization based on EBITDA growth. The management will be granted a combination of shares and options. The higher the share price the more the management will be rewarded. The programme includes 50 key executives with the highest impact on goals achievement.

The management described to the Board the options that they had considered for the development of Magnit Cosmetic and Pharmacy business lines with respect to the warehouse and logistics infrastructure, including the potential acquisition of SIA Group.

The Board supports the Company's strategy to further develop such business lines and sees the value and the synergies that can be achieved through such acquisition as outlined in the analysis of the transaction and other available options prepared by the management and international financial advisor to the Company. The Board supports that the management negotiate such potential acquisition on the best possible terms for the Company. Management shall present to the Board the final proposed terms of the potential transaction.

The Board gave consent to JSC "Tander" (a subsidiary company of PJSC "Magnit") to conclude an additional agreement to the Credit agreement with Gazprombank (Joint Stock Company).

Please follow the link below to read full text of the Board decisions:

http://ir.magnit.com/en/press-releases/reg-filings_2018/

For further information, please contact:

Dina Svishcheva Media Inquiries

Head of IR Media Relations Department

Email: Chistyak@magnit.ru Email: press@magnit.ru

Office: +7-861-277-4554 x 15101

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 June 30, 2018, Magnit operated 37 distribution centers and 16,960 stores (12,503 convenience, 244 hypermarkets, 213 supermarkets and 4,000 drogerie stores) in 2,808 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2018, Magnit had revenues of RUB 595 billion and an EBITDA of RUB 44 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.