Krasnodar, July 22, 2015: PJSC “Magnit”, Russia’s largest food retailer (the “Company”; MOEX and LSE: MGNT) announces its unaudited 1H 2015 results prepared in accordance with IFRS¹.

During 1H 2015 the Company added (net) 1,017 stores (546 convenience stores, 11 hypermarkets, 13 “Magnit Family” stores and 447 drogerie stores) and increased its selling space by 23.17% in comparison to 1H 2014 from 3,189.21 thousand sq. m. to 3,928.00 thousand sq. m. The total store base as of June 30, 2015 reached 10,728 stores (8,890 convenience stores, 201 hypermarkets, 110 “Magnit Family” stores and 1,527 drogerie stores).

Revenue increased by 30.30% YoY from 349,047.11 million RUR in 1H 2014 to 454,808.63 million RUR in 1H 2015. The top line growth was due to an increase in selling space as well as to an 11.47% increase of like-for-like sales.

Gross profit increased by 30.80% from 97,134.52 million RUR to 127,050.28 million RUR. Gross margin in 1H 2015 amounted to 27.93%.

EBITDA increased by 32.97% from 36,549.60 million RUR in 1H 2014 to 48,599.58 million RUR in 1H 2015. EBITDA margin in the 1H of 2015 was 10.69%, which is 22 b. p. higher than 1H 2014 (10.47%). EBITDA margin in the 2Q of 2015 was 11.95%.

1H 2015 net income increased by 28.78% and amounted to 25,225.49 million RUR vs.19,588.07 million RUR in 1H 2014. Net income margin for 1H 2015 was 5.55%.

¹ Based on management accounts

PJSC “Magnit” announces unaudited 1H 2015 results