Magnit FY2014 Financial Results

2. Magnit at a Glance
Magnit at a Glance
As of December 31, 2014
Source: Company, Bloomberg, IFRS accounts for FY2014 2
2 108Cities & Towns
№1
Russian Food Retail
Chain by Revenue
and Number of Stores
9 711Total Number
of Stores
3 591thous.sq.m.
Selling Space
27DCs
5 938Trucks
Multi-format Business Model
Comprising Convenience, Hypermarkets,
“Magnit Family” & Drogerie Stores
№3
Retailer in Europe
in Market
Capitalization $21bnMarket
Capitalization
>6%Share in Russian
Grocery Sector
Shareholder Structure
54,6%
Free-float
37,6%
Sergey Galitskiy, CEO
3,3%
Other
4,5%
Lavreno Ltd. (Cyprus)0,1%

3. Magnit at a Glance
Key Metrics
3Source: IFRS accounts for FY2014, Company’s Estimates
Guidance for 2015
New Stores
764bn ($20bn)
Revenue
FY2014
6,25%
Net
Margin
11,25%
EBITDA
Margin
0,9
Net debt/
LTM EBITDA
1 200
Convenience
Stores
90
Hyper-
markets
800
Drogerie
Stores
26-32%
RUB Sales
Growth
9,5-11,0%
EBITDA
Margin
RUB 65bn
Capex
P=

4. Magnit at a Glance
Strategy
4
Growth
Value Efficiency
Multi-format Organic
Store Growth
Geographic
Scope
Density of Store
Coverage
Low
Prices
High
Quality
Assortment Cost
Management
Vertical
Integration
Centralization

5. 53
53%47%
Discounters
25%
Supermarkets
15%
Hypermarkets
13%
Traditional Stores
31%
Kiosks, Pavilions
6%
Open Markets
10%
Magnit at a Glance
Russian Food Retail Market
5
Market Composition by Format
$320bnMarket
Size
FY 2014
%Modern
Retail
Penetration
Non-Modern Modern
Source: Sberbank CIB Estimates for FY2014

6. Magnit at a Glance
Magnit vs Peers
6
*As of FY 2013
Source: Companies, Infoline, Bloomberg, Magnit’s Estimates
Number
of Stores, eop 2014
Selling Space
thous. sq.m.,
eop 2014
Revenue
RUB bn, eop 2014
Market Cap
US$ bn, eop 2014
Market Share
%, eop 2014
9 711
5 483
2 195
108
132
85
80
Magnit
X5
Dixy
Okey
Lenta
Auchan
Metro
3 591
2 572
747
552
701
789
619
763,5
633,9
229,0
152,0
194,0
287,4
183,2
21,5
3,3
0,8
1,2
2,9
6
5
2
1
2
2
2
Not public
Not public
*
*
*
*

7. 1 080Drogerie Stores
8 344Convenience Stores
190Hypermarkets
97Magnit Family
27Distribution Centers
1 6 8 6 2 2 2
57 270 245 312 98 76
22
3 28 19 34 3 7 3
7 55 32 58 12 22
4
330
1 523 2 170 2 614 757 731
219
Operational Overview
Geographical Coverage
7Source: Company, as of December 31, 2014
2 108 Cities
& Towns
7 Federal
Regions
North
Caucasus
Southern Volga North
West
Urals SiberiaCentral

8. Operational Overview
Logistics System
8Source: Company, as of December 31, 2014
9 711Total Number
of Stores
909thous.sq.m.
Warehousing Space
27DCs
5 938Trucks
8
6
6
2
1
2
2
Central
Volga
Southern
Urals
North Caucasus
North West
Siberia
3000
2698
1980
936
343
520
234
357,506
147,883
178,328
92,782
34,503
71,860
26,064
Centralization Ratio
%
Magnit
Outsourced
90
10
92
8
Convenience Stores
FY2014 Future Targets
Magnit
Outsourced
71
29
80
20
Hypermarkets

9. Operational Overview
Suppliers
9Source: Company, as of December 31, 2014
5000
Domestic
Suppliers
4000Local Suppliers
1000Federal Suppliers
Assortment
55-60% 40-45%

10. Operational Overview
Direct Import
10
Source: Company, as of December 31, 2014
11%Share
of Revenue
605
PL
SKUs
M 88%Food
Items
Private Label
10%International
Direct Import
860
Open
Contracts

11. Operational Overview
Employees
11Source: Company, as of December 31, 2014
257 551
Employees
28 143
Average
Monthly
Salary
9% Wage Rate
Increase
P=
184 680In-store
Personnel
45 081
People Engaged
in Distribution
18 229People in Regional
Branches
9 561People Employed
by Head Office
1000 employees
Average Weighted Number of Employees – 207 853

12. Operational Overview
Competitive Attributes
12
40%of Family
Budget
Spent on Food
Location Quality
(of Products)
Assortment Reliability AtmospherePrices
5 000
People —
Minimum
Population
(1 500–1 600 Families)
4 000-9 500
Monthly
Family Food
Budget
P=
Overlap “Good”
Cannibalization
Magnit #1
Magnit #2
500m
Competitor #1 Competitor #2
Competitor #3
500m
Sales Catchment Area
Source: Company’s Estimates

13. Convenience Store

14. Operational Overview
Convenience Store
14Source: Company, as of December 31, 2014
459
sq.m.
Total
320
sq.m.
Selling Space
91% Food
9% Non-food
28% Owned
72% Leased
Format Description Key Operational Statistics Opening
Size of the Store Average Ticket Payback
Store Ownership Structure
Sales Mix
Traffic
tickets/sq.m./day
Sales Density
sales/sq.m./year
LFL FY2014 - FY2013,%
225,1P=
$5,9
238 077P=
$6 196
9,81
Average
Ticket, RUR
3,68
Traffic
13,85
Sales
2,8
3 years
If Leased
If Owned
Cost of New Store
per sq.m. of Total Space
Time to Maturity
6 months
Owned $1 100-2 800
Leased $250-500
4-6 years

15. Hypermarket

16. Operational Overview
Hypermarket
16Source: Company, as of December 31, 2014
82% Food
18% Non-food
81% Owned
19% Leased
Format Description Key Operational Statistics
Size of the Store Average Ticket
Store Ownership Structure
Sales Mix
Traffic
tickets/sq.m./day
Sales Density
sales/sq.m./year
LFL FY2014 - FY2013,%
587,8P=
$15,3
275 073P=
$7 159
1,2
6 872
sq.m.
Total
2 943
sq.m.
Selling Space
7,98
Average
Ticket, RUR
5,63
Traffic
14,05
Sales
Opening
Payback
6-9 years
Cost of New Store
per sq.m. of Total Space
Owned $1700-2900
Leased $800-900
8-15 months
Time to Maturity
S: up to 3 000
M: 3 000-6 000
L: over 6 000

17. Magnit Family

18. Operational Overview
Magnit Family
18Source: Company, as of December 31, 2014
2 240
sq.m.
Total
1 124
sq.m.
Selling Space
87% Food
13% Non-food
39% Owned
61% Leased
Format Description Key Operational Statistics Opening
Size of the Store Average Ticket Payback
Store Ownership Structure
Sales Mix
Traffic
tickets/sq.m./day
Sales Density
sales/sq.m./year
LFL FY2014 - FY2013,%
419,0P=
$10,9
371 659P=
$9 673
2,1
6-9 years
Cost of New Store
per sq.m. of Total Space
Owned $2 100-2 800
Leased $800-1 400
8-15 months
9,28
Average
Ticket, RUR
8,87
Traffic
18,97
Sales
Time to Maturity

19. Drogerie Store

20. Operational Overview
Drogerie Store
20Source: Company, as of December 31, 2014
306
sq.m.
Total
231
sq.m.
Selling Space
100% Non-food
23% Owned
77% Leased
Format Description Key Operational Statistics Opening
Size of the Store Average Ticket Payback
Store Ownership Structure
Sales Mix
Traffic
tickets/sq.m./day
Sales Density
sales/sq.m./year
LFL FY2014 – FY2013,%
251,8P=
$6,6
104 643P=
$2 724
3,76
Average
Ticket, RUR
35,69
Traffic
40,79
Sales
1,0
3 years
If Leased
If Owned
Cost of New Store
per sq.m. of Total Space
Time to Maturity
6 months
Owned $800-2 500
Leased $300-500
4-6 years

21. Size
of the Store
sq.m.
Average
Ticket
Traffic
Tickets/
sq.m./day
Density
Sales/
sq.m./year
Sales
Mix
LFL FY2014-
FY2013
%
Store Owner-
ship Structure
Payback
Years
Cost of New
Store
per sq.m.
of Total Space
Time
to Maturity
Months
• Total
• Selling Space
• Food
• Non-food
• Av.ticket
• Traffic/ Sales
• Owned
• Leased
23%
77%
39%
61%
81%
19%
28%
72%
Operational Overview
Format Summary
21Source: Company, as of December 31, 2014; * Excludes selling space designated for leases
Hypermarket
Drogerie
Store
Magnit
Family
459
6 872
306
2 240
320
2943*
231
1 124
Owned
$1 100-2 800
Leased
$ 250-500
2,8
1,2
1,0
2,1
P.225,1
$5,9
P.587,8
$15,3
P.251,8
$6,6
P.419,0
$10,9
P.238 077
$6 196
P.275 073
$7 159
P.104 643
$2 724
P.371 659
$9 673
82%
18%
100%
87%
13%
91%
9%
Convenience
store
6
8-15
6
8-15
3 (if leased)
6-9
3 (if leased)
6-9
4-6 (if owned)
4-6 (if owned)
9,81
7,98
3,76
9,28
3,68
5,63
35,69
8,87
13,85
14,05
40,79
18,97
Owned
$1 700-2 900
Leased
$ 800-900
Owned
$800-2 500
Leased
$300-500
Owned
$2 100-2 800
Leased
$800-1 400

22. Financial Overview
Summary P&L
SG&A is presented net of Depreciation & Amortization (except for Depreciation of production fixed assets which was included in the Cost of sales)
Source: Audited IFRS accounts for 2013 – 2014
Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals
22
RUB MMRUB MMRUB MMRUB MM 2013201320132013 2014201420142014
2014 / 20132014 / 20132014 / 20132014 / 2013
YYYY----oooo----Y GrowthY GrowthY GrowthY Growth
Net salesNet salesNet salesNet sales 579,694.88579,694.88579,694.88579,694.88 763,527.25763,527.25763,527.25763,527.25 31.7%
Cost of sales (414,431.89) (543,006.69) 31.0%
Gross profitGross profitGross profitGross profit 165,262.99165,262.99165,262.99165,262.99 220,520.56220,520.56220,520.56220,520.56 33.4%
Gross margin, % 28.51% 28.88%
SG&A (101,729.77) (134,169.75) 31.9%
Other income/(expense) 1,178.76 (501.27) -142.5%
EBITDAEBITDAEBITDAEBITDA 64,721.2364,721.2364,721.2364,721.23 85,909.6785,909.6785,909.6785,909.67 32.7%
EBITDA margin,% 11.16% 11.25%
Depreciation & Amortization (14,184.35) (17,609.67) 24.1%
EBITEBITEBITEBIT 50,536.8850,536.8850,536.8850,536.88 68,300.0068,300.0068,300.0068,300.00 35.1%
Net finance costs (4,782.83) (6,273.47) 31.2%
Profit before tax 45,754.05 62,026.53 35.6%
Taxes (10,133.67) (14,340.69) 41.5%
Effective tax rate 22.15% 23.12%
Net incomeNet incomeNet incomeNet income 35,620.3835,620.3835,620.3835,620.38 47,685.8447,685.8447,685.8447,685.84 33.9%
Net margin, % 6.14% 6.25%

23. Financial Overview
Revenue & Costs
23Source: IFRS accounts for FY2012–2014
26,5
28,5 28,9
10,6 11,2 11,3
5,6 6,1 6,3
0
5
10
15
20
25
30
35
2012 2013 2014
Revenue Dynamics
RUB bn
Net Income Dynamics
RUB bn
Margin DynamicsSG&A Expense Structure
Revenue — 764 RUB bn
Gross
Margin
EBIDTA
Margin
Net
Margin
%
+29,2%
7,5% 14,5%
+31,7%
+41,8%
+33,9%
LFLLFL
Sales Growth, RUB
Sales Growth, RUB
449
580
764
2012 2013 2014
25
36
48
2012 2013 2014
1,84 (0,37) ― Packaging & Raw Materials
2,23 (0,44) ― Repair & Maintenance
55,01 (10,93) ― Payroll & Related Taxes
1,93 (0,38) ― Taxes, Other than Income Tax
11,57 (2,30) ― Deprecation & Amortization
20,62 (4,10) ― Rent & Utilities
4,51 (0,90) ― Other
in SG&A,% in Revenue, %
2,29 (0,46) ― Advertising
20%
151 719 RUB mn

24. 26,53
28,51 28,88-0,081,85 0,08 0,05 0,13 0,32
15
17
19
21
23
25
27
29
31
33
GM
2012
Trading Margin Transport Losses GM
2013
Trading Margin Transport Losses GM
2014
Financial Overview
Gross Margin Bridge
24Source: IFRS accounts for FY2012 – 2014
EBITDA Margin Bridge
% of Sales
% of Sales
+198 b.p.
+37 b.p.
+60 b.p.
+9 b.p.
10,56
11,16 11,25
-1,01
-0,35 -0,01
-0,11
-0,28 -0,18
1,97
0,37 0,29
0
2
4
6
8
10
12
14
EBIDTA
2012
Gross
Margin
Salaries Rent & Utilites Other EBIDTA
2013
Gross
Margin
Salaries Rent & Utilites Advertising Other EBIDTA
2014

25. Financial Overview
Free Cash Flow
25Source: IFRS accounts for FY2013–2014
Working Capital Analysis
The Average Days Payable to
Suppliers is 38 Days.
Inventory Management Days is 46
Days
Working Capital: RUB 6 927 mn as of
31.12.2014
RUB mn
2013
2014
Adjusted for loss from disposal of PPE, provision
for doubtful receivables, foreign exchange gain,
finance costs, gain on disposal of subsidiary and
investment income
Calculated as additions
+ transfers of PP&E
during the respective
period
Does not include cash flow from
financing activities
88 999
60 711
5 617
11 760
-9 330
-6 433
-12 525
-55 936
-15 825
21 968
842
Adjusted
EBIDTA
Change in
Working capital
Net Interest
Paid
Taxes
Paid
OCF Capex Other Cash
Flow
from Investing
Activities
FCF Payment of
Dividents
Other Cash
Flow
from Financing
Activities
CF
65 358
44 624
-7 608 -6 521
-8 163
-4 550
-8 021
-52 488 256
-9 545 10 632

26. Financial Overview
Balance Sheet
Source: Audited IFRS accounts for FY2012 - 2014
Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals 26
RUB MMRUB MMRUB MMRUB MM 2012201220122012 2013201320132013 2014201420142014
ASSETSASSETSASSETSASSETS
Property plant and equipment 158,752.58 195,158.25 232,968.80
Other non-current assets 3,948.69 5,762.40 6,043.82
Cash and cash equivalents 12,452.61 5,931.13 17,691.54
Inventories 41,025.62 56,095.41 81,475.66
Trade and other receivables 584.02 631.53 813.26
Advances paid 2,677.20 3,171.05 4,849.30
Taxes receivable 28.94 27.99 69.38
Short-term financial assets 876.66 1,150.64 475.18
Prepaid expenses 181.94 252.15 242.53
Income tax recoverable – – 131.86
TOTAL ASSETSTOTAL ASSETSTOTAL ASSETSTOTAL ASSETS 220220220220,,,,528.26528.26528.26528.26 268268268268,,,,180.55180.55180.55180.55 344,761.33344,761.33344,761.33344,761.33
EQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIESEQUITY AND LIABILITIES
Equity 99,235.71 126,162.14 143,651.62
Long-term debt 38,246.72 37,441.50 44,410.14
Other long-term liabilities 6,159.09 8,462.32 10,617.70
Trade and other payables 42,920.57 48,170.71 66,794.61
Short-term debt 25,121.90 36,319.76 51,256.67
Dividends payable 0.54 0.03 14,372.03
Other current liabilities 8,843.73 11,624.09 13,658.56
TOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIES 220220220220,,,,528.26528.26528.26528.26 268268268268,,,,180.55180.55180.55180.55 344,761.33344,761.33344,761.33344,761.33

27. Hypermarkets Distribution
Centres
Convenience
Stores
Acquisition &
Construction of
Conv.Stores
Buy-out of
Leased
Conv.Stores
Greenhouses Land for
HyperMarkets
Store
Renovation
Maintenance Drogerie Stores
90 5 1 200 800
25 000 9 000 8 000 5 000 2 000 4 000 5 000 2 000 1 000 4 000
Financial Overview
Capex Analysis
27Source: Company, as of December 31, 2014; Company’s Estimates
Construction in Progress
& Buildings
Machinery &
Equipment
Other Assets Land
36 297 11 553 5 156 2 930
FY 2014
₽ 56 bn
FY 2015 (plan)
₽ 65 bn
RUB 500 mn

28. 63 369
73 761
95 667
50 916
67 830
77 975
25 122
36 320
51 257
38 247
37 441
44 410
2012 2013 2014
Net Debt
Short-term Debt
Long-term Debt
%
Financial Overview
Debt Burden
28Source: IFRS accounts for FY 2012 - 2014
11,7
13,0 12,9
0
2
4
6
8
10
12
14
2012 2013 2014
1,1
1
0,9
0
0,5
1
1,5
2
2012 2013 2014
Debt Level Dynamics
RUB mn
Credit Metrics Credit Profile
EBIDTA / Finance Expenses
Net Debt / LTM EBITDA
The Company Has
an Impeccable Credit History
Collaboration with
the Largest Banks
Low Debt Burden:
Net Debt / EBITDA Ratio of 0,9
No Currency Risk:No Currency Risk:No Currency Risk:No Currency Risk: 100%
of Debt is Rub Denominated
Matching Revenue Structure
No Interest Rate Risk:No Interest Rate Risk:No Interest Rate Risk:No Interest Rate Risk:
Interest Payments are Made
at Fixed Rates
39,6%
49,2%
53,6%
46%46%46%46% of Debt is Long-term
Approximately 35%35%35%35%
of LT Debt is Rub Bonds

29. Contact Information
Contact Information
29
Timothy Post
Head of Investor Relations
+7 (961) 511-7678
post@ir.magnit.com
http://ir.magnit.com
15/2 Solnechnaya Street
Krasnodar, 350072
Russian Federation