Krasnodar, March 24, 2014: OJSC “Magnit”, Russia’s largest retailer (the “Company”; MICEX and LSE: MGNT) announces its FY 2013 financial results prepared in accordance with IFRS and audited by Ernst & Young.

During 2013 the Company added (net) 1,209 stores (1,154 convenience stores, 35 hypermarkets and 26 “Magnit Family” stores) and increased its selling space by 18.13% in comparison to 2012 from 2,549.26 thousand sq. m. to 3,011.38 thousand sq. m. The total store base as of December 31, 2013 reached 8,093 stores (7,200 convenience stores, 161 hypermarkets, 46 “Magnit Family” stores and 686 cosmetics stores).

Revenue in rubles increased by 29.21% YoY from 448,661.13 million RUR in 2012 to 579,694.88 million RUR in 2013. The top line growth was due to an increase in selling space as well as to a 3.88% increase in like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 26.14%: from US$ 14,429.65 million to US$ 18,201.92 million¹.

Gross margin grew from 26.53% 2012 to 28.51% in 2013. Gross profit in rubles increased by 38.82% from 119,051.79 million RUR (US$ 3,828.89 million) to 165,262.99 million RUR (US$ 5,189.12 million).

EBITDA increased by 36.60% from 47,380.48 million RUR (US$ 1,523.83 million) in 2012 to 64,721.23 million RUR (US$ 2,032.19 million) in 2013. EBITDA margin in 2013 amounted to 11.16%. EBITDA margin in the 4Q of 2013 was 12.50%. Net debt / EBITDA ratio (in ruble terms) for 2013 amounted to 1.05.

2013 net income increased by 41.82% and amounted to 35,620.38 million RUR (US$ 1,118.45 million) vs. 25,117.17 million RUR (US$ 807.81 million) in 2012. Net income margin for FY 2013 was 6.14%.

¹ Based on the average exchange rate for 2013 — 31.8480 RUR per 1 US$, 2012 — 31.0930 RUR per 1 US$; for 4Q 2013 — 32.5334 RUR per 1 US$, for 4Q 2012 — 31.0767 RUR per 1 US$.

OJSC "Magnit" announces audited FY 2013 financial results