Krasnodar, Russia (October 31, 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 October 30, 2018.

The Board has made a decision to call Extraordinary General Meeting. Among other Items, the agenda will include the consideration of the preliminary dividend payment in January 2019, based on the 9M 2018 financial results. The Board has recommended to pay dividends on PJSC “Magnit” shares in the amount of 14,000,581,949.90 Rubles which constitutes

137.38 Rubles per one ordinary share, and set December 21, 2018 as a dividend record date.

The Board has discussed the key principles of investment and financial policies of PJSC “Magnit” and requested the management to provide more detailed analysis of certain policy aspects.

The Board has considered the dividend policy and agreed to the proposal to make dividend payments twice a year. The management shall provide the updated version of the dividend policy together with the investment and financial policies at the next Board meeting.

The management updated the Board of Directors on the transformation strategy execution, including developing new CVP for main store formats, changes to the operations management model, customer engagement communication strategy, private label programme upgrades, category management optimisation, the logistics strategy as well as other key strategic projects. The Board also considered 9M and 3Q 2018 results of PJSC “Magnit” and its subsidiaries presented by the management and acknowledged the positive trend in like-for-like growth resulting from CVP improvement, better category management and more efficient promo activity as well as higher efficiency of new stores opened this year, supported by higher sales density in the new stores compared to the existing store base.

In line with its strategy of further enhancing the Company’s internal controls, the Board approved the Company’s internal audit charter that provides for its internal controls framework and sets forth the principal objectives and functions of internal control function. As a result, the Company now has a fully functional internal control department.

PJSC “Magnit” Announces the Decisions of the Board