PJSC MAGNIT - Audited FY 2016 Financial Results

Gross Profit increased from 270.82 billion RUR in 2015 to 295.76 billion RUR in 2016. Gross Margin in 2016 was 27.52%.

EBITDA increased from 103.97 billion RUR in 2015 to 107.79 billion RUR in 2016. EBITDA Margin in 2016 was 10.03%. EBITDA Margin in the 4Q of 2016 was 9.67%. Net Debt / EBITDA ratio (in ruble terms) for 2016 amounted to 1.03.

Net Income was 54.41 billion RUR in 2016. Net Income Margin for 2016 was 5.06%.

According to Rosstat, general CPI in 12M 2016 was 5.4% compared to 12.9% in 12M 2015. In the month of December 2016 general CPI was 0.4% compared to 0.8% in December 2015.

Food inflation in 12M 2016 was 4.6% compared to 14.0% in 12M 2015. In the month of December 2016 food inflation was 0.6% compared to 1.2% in December 2015.

Key figures presented in this press release immaterially differ from the numbers under management accounts announced by Magnit on January 27, 2017. Thus, according to the audited FY 2016 results EBITDAR, EBITDA and EBIT margins are higher by 1 b. p.

4Q and FY 2016 Key Operating Highlights:

LFL Results

4Q[2]and FY 2016 Key Financial Results, million RUR[3]

4Q[4] and FY 2016 Key Financial Results, US$[5] million[6]

Notes:

1. Net revenue in US$ terms is calculated using the average exchange rate for the period.

2. This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

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Company description:

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, 2016, Magnit operated 35 distribution centers and 14,059 stores (10,521 convenience, 431 hypermarkets and 3,107 drogerie stores) in 2,494 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for 2016, Magnit had revenues of RUB 1,075 billion and an EBITDA of RUB 108 billion. Magnit's local shares are traded on the Moscow Stock 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+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.

[1] LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by December 1, 2015.

[2] Unaudited results

[3] Please follow the link to view FY 2016 financial report http://ir.magnit.com/en/financial-reports/

[4] Unaudited results

[5] Based on the average exchange rate for 4Q 2016 – 63.0685 RUB per 1 USD, 4Q 2015 – 65.9434 RUB per 1 USD, 12M 2016 – 67.0349 RUB per 1 USD, 12M 2015 – 60.9579 RUB per 1 USD

[6] Please follow the link to view FY 2016 financial report http://ir.magnit.com/en/financial-reports/