Magnit Presentation 9M2015

1. INVESTOR PRESENTATION
9M 2015 OPERATIONALRESULTS published on October 23, 2015

2. Magnit at a Glance
Magnit at a Glance
As of September 30, 2015
Source: Company, Thomson Reuters, * - as of FY2014 2
2 297
Cities & Towns
№1
Russian Food Retail
Chain by Revenue
and Number of Stores
11 388
Total Number
of Stores
4 155
thous.sq.m.
Selling Space
29
DCs
5 908
Trucks
Multi-format Business Model
Comprising Convenience, Hypermarkets,
“Magnit Family” & Drogerie Stores
№1
Retailer in Europe
in Market
Capitalization $23bnMarket
Capitalization
>6%Share in Russian
Grocery Sector ⃰
Shareholder Structure as of 1H2015
55,8%
Free-float
36,5%
Sergey Galitskiy, CEO
3,2%
Other
4,5%
Lavreno Ltd. (Cyprus)0,1%

3. Magnit at a Glance
Key Metrics
3
Source: Company, as of September 30, 2015,
Company’s Estimates
* as of June 30, 2015
New Stores
690bn 27,2 %
Revenue
9M 2015
6,26 %
Net
Margin
10,88%
EBITDA
Margin
0,9*
Net debt/
LTM EBITDA
1 350
Convenience
Stores
90
Hyper-
markets
950
Drogerie
Stores
26-28%
RUB Sales
Growth
10,5-11,3%
EBITDA
Margin
RUB 65bn
Capex
P=
Revenue growth
Y-o-Y
Guidance for 2015

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
Source: As of FY 2014; Companies, Infoline, Bloomberg, Magnit’s Estimates
Number
of Stores
Selling Space
thous. sq.m.
Revenue
RUB bn
Market Cap
US$ bn
Market Share
%
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
338,0
210,0
21,5
3,3
0,8
1,2
2,9
6
5
2
1
2
3
2
Not public
Not public

7. 1 807Drogerie Stores 75 388 440 511 183 156
54
9 246Convenience Stores
208Hypermarkets
127Magnit Family
29Distribution Centers
5 34 24 42 8 9 5
7 59 35 61 13 27
6
347
1 602 2 467 2 806 895 829
300
Operational Overview
Geographical Coverage
7Source: Company, as of September 30, 2015
2 297 Cities
& Towns
7 Federal
Regions
North
Caucasus
Southern Volga North
West
Urals SiberiaCentral
1 6 9 7 2 2 2

8. Operational Overview
Logistics System
8Source: Company, as of September 30, 2015
11 388
Total Number
of Stores
1 078
thous.sq.m.
Warehousing Space
29
DCs
5 908
Trucks
9
7
6
2
1
2
2
Central
Volga
Southern
Urals
North Caucasus
North West
Siberia
3667
2976
2229
1198
363
630
325
405,002
221,236
207,195
94,357
40,799
73,601
35,438
Centralization Ratio
%
Magnit
Outsourced
90
10
92
8
Convenience Stores
9M2015 Future Targets
Magnit
Outsourced
72
28
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,
Direct Import - as of FY2014,
Private Label – as of September 30, 2015
11%Share
of Revenue
585
PL
SKUs
M 84%Food
Items
Private Label
10%International
Direct Import
860
Open
Contracts

11. Operational Overview
Employees
11
Source: Company,
as of September 30, 2015
*as of June 30, 2015
262 432
Employees
28 617
Average
Monthly
Salary*
4% Wage Rate
Increase*
P=
189 361In-store
Personnel
39 561
People Engaged
in Distribution
22 304People in Regional
Branches
8 991People Employed
by Head Office
1000 employees
Average Weighted Number of Employees – 231 373
2 215Other

12. Operational Overview
Competitive Attributes
12
43-45 %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 September 30, 2015
455
sq.m.
Total
324
sq.m.
Selling Space
89% Food
11% Non-food
26% Owned
74% 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 9M2015 –9M2014,%
241,8P=
$4,1
238 077P=
$6 196
10,06
Average
Ticket, RUB
-0,74
Traffic
9,24
Sales
2,7
3 years
If Leased
If Owned
Cost of New Store
per sq.m. of Total Space, thousand RUB
Time to Maturity
6 months
4-6 years
Owned 42-108
Leased 10-19

15. Hypermarket

16. Operational Overview
Hypermarket
16Source: Company, as of September 30, 2015
80% Food
20% Non-food
78% Owned
22% 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 9M2015 – 9M2014,%
608,7P=
$10,3
275 073P=
$7 159
1,2
6 684
sq.m.
Total
2 908
sq.m.
Selling Space
8,04
Average
Ticket, RUB
-2,46
Traffic
5,38
Sales
Opening
Payback
6-9 years
Cost of New Store
per sq.m. of Total Space, thousand RUB
Owned 65-111
Leased 31-35
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 September 30, 2015
2 193
sq.m.
Total
1 101
sq.m.
Selling Space
85% Food
15% Non-food
36% Owned
64% 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 9M2015 – 9M2014,%
439,7P=
$7,4
371 659P=
$9 673
2,1
6-9 years
Cost of New Store
per sq.m. of Total Space, thousand RUB
Owned 81-108
Leased 31-54
8-15 months
7,18
Average
Ticket, RUB
-2,24
Traffic
4,78
Sales
Time to Maturity

19. Drogerie Store

20. Operational Overview
Drogerie Store
20Source: Company, as of September 30, 2015
299
sq.m.
Total
229
sq.m.
Selling Space
100% Non-food
14% Owned
86% 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 9M2015 – 9M2014,%
277,6P=
$4,7
104 643P=
$2 724
13,35
Average
Ticket, RUB
8,99
Traffic
23,54
Sales
1,1
3 years
If Leased
If Owned
Cost of New Store
per sq.m. of Total Space, thousand RUB
Time to Maturity
6 months
Owned 31-96
Leased 12-19
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 9M2015-
9M2014
%
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
14%
86%
36%
64%
78%
22%
26%
74%
Operational Overview
Format Summary
21Source: Company, as of September 30, 2015; * Excludes selling space designated for leases
Hypermarket
Drogerie
Store
Magnit
Family
455
6 684
299
2 193
324
2908*
229
1 101
Owned
RUB 42-108k
Leased
RUB 10-19k
2,7
1,2
1,1
2,1
P.241,8
$4,1
P.608,7
$10,3
P.277,6
$4,7
P.439,7
$7,4
P.238 077
$6 196
P.275 073
$7 159
P.104 643
$2 724
P.371 659
$9 673
80%
20%
100%
85%
15%
89%
11%
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)
10,06
8,04
13,35
7,18
-0,74
-2,46
8,99
-2,24
9,24
5,38
23,54
4,78
Owned
RUB 65-111k
Leased
RUB 31-35k
Owned
RUB 31-96k
Leased
RUB 12-19k
Owned
RUB 81-108k
Leased
RUB 31-54k

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: Company
Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals 22
RUB MN 1H2014 1H2015
1H2014 / 1H2015
Y-o-Y Growth
Net sales 349,047.11 454,808.63 30.3%
Cost of sales (251,912.59) (327,748.22) 30.1%
Gross profit 97,134.52 127,060.41 30.8%
Gross margin, % 27.83% 27.94%
SG&A (61,569.24) (79,406.25) 29.0%
Other income, net 955.52 937.45 -1.9%
EBITDA 36,549.60 48,627.66 33.0%
EBITDA margin,% 10.47% 10.69%
Depreciation & Amortization (8,489.36) (10,033.63) 18.2%
EBIT 28,060.24 38,594.03 37.5%
Net finance costs (2,822.41) (5,865.82) 107.8%
Profit before tax 25,237.83 32,728.21 29.7%
Taxes (5,649.76) (7,462.55) 32.1%
Effective tax rate 22.39% 22.80%
Net income 19,588.07 25,265.66 29.0%
Net margin, % 5.61% 5.56%

23. 20%
89 404 RUB mn
15
20
25
1H2013 1H2014 1H2015
273
349
455
1H2013 1H2014 1H2015
Financial Overview
Revenue & Costs
23Source: Company
27,3 27,8 27,9
10,1 10,5 10,7
5,3 5,6 5,6
0
5
10
15
20
25
30
1H2013 1H2014 1H2015
Revenue Dynamics
RUB bn
Net Income Dynamics
RUB bn
Margin DynamicsSG&A Expense Structure
Revenue — 455 RUB bn
Gross
Margin
EBITDA
Margin
Net
Margin
%
+27,9%
10,6% 11,5%
+30,3%
+33,8%
+29,0%
LFLLFL
Sales Growth, RUB
Sales Growth, RUB
1,90 (0,37) ― Packaging & Raw Materials
1,69 (0,33) ― Repair & Maintenance
53,31 (10,48) ― Payroll & Related Taxes
1,65 (0,33) ― Taxes, Other than Income Tax
11,18 (2,20) ― Deprecation & Amortization
22,55 (4,44) ― Rent & Utilities
4,70 (0,92) ― Other
in SG&A,% in Revenue, %
3,02 (0,59) ― Advertising

24. 27,26
27,83 27,94-0,03 -0,42 -0,110,26
0,34 0,64
15
17
19
21
23
25
27
29
31
33
GM
1H2013
Trading Margin Transport Losses GM
1H2014
Trading Margin Transport Losses GM
1H2015
Financial Overview
Gross Margin Bridge
24Source: Company
EBITDA Margin Bridge
% of Sales
% of Sales
+57 b.p. +11 b.p.
+35 b.p.
+22 b.p.
10,12
10,47 10,69-0,19 -0,24
-0,29
-0,220,57
0,21 0,11 0,59 0,03
0
2
4
6
8
10
12
EBITDA
1H2013
Gross
Margin
Rent & Utilites Advertising Other EBITDA
1H2014
Gross
Margin
Payroll & Taxes Rent & Utilites Advertising Other EBITDA
1H2015

25. 36 952
32 904
12 593
-2 202
-3 057
-3 927
-20 337
-8 427
-6 368
2 936
26
Financial Overview
Free Cash Flow
25Source: Company
Working Capital Analysis
The Average Days Payable to
Suppliers is 36 Days.
Inventory Management Days is 47 Days
Working Capital: RUB 7 171 mn as of
30.06.2015
RUB mn
1H 2014
1H 2015
Adjusted for loss from disposal of PPE, provision
for doubtful receivables, foreign exchange loss,
gain on disposal of subsidiary Calculated as additions
+ transfers of PP&E
during the respective
period
Does not include cash flow from
financing activities
49 065
36 337
11 552
-5 776
-2 238
-5 735
-4 755
-24 434
-351 -19 300
1 972
Adjusted
EBITDA
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

26. Financial Overview
Balance Sheet
Source: IFRS accounts for FY2013, FY2014, Company
Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals 26
RUB MN 2013 2014 1H2015
ASSETS
Property plant and equipment 195,158.25 232,968.80 247,425.33
Other non-current assets 5,762.40 6,043.82 6,344.84
Cash and cash equivalents 5,931.13 17,691.54 11,915.01
Inventories 56,095.41 81,475.66 86,930.23
Trade and other receivables 631.53 813.26 731.37
Advances paid 3,171.05 4,849.30 3,175.85
Taxes receivable 27.99 69.38 162.03
Short-term financial assets 1,150.64 475.18 387.48
Prepaid expenses 252.15 242.53 257.18
Income tax receivable – 131.86 –
TOTAL ASSETS 268,180.55 344,761.33 357,329.32
EQUITY AND LIABILITIES
Equity 126,162.14 143,651.62 156,255.11
Long-term debt 37,441.50 44,410.14 39,428.44
Other long-term liabilities 8,462.32 10,617.70 11,641.24
Trade and other payables 48,170.71 66,794.61 64,503.32
Short-term debt 36,319.76 51,256.67 58,477.16
Dividends payable 0.03 14,372.03 7,600.33
Other current liabilities 11,624.09 13,658.56 19,423.72
TOTAL EQUITY AND LIABILITIES 268,180.55 344,761.33 357,329.32

27. Financial Overview
Capex Analysis
27
¹ CAPEX for 1H2015 amounts to RUB 24 434 mn
Source: 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 2014¹
RUB 56 bn
FY 2015 (plan)
RUB 65 bn
RUB 500 mn
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 1 350 950
25 000 9 000 8 000 5 000 2 000 4 000 5 000 2 000 1 000 4 000

28. 73 761
95 667 97 905
67 830
77 975
85 991
36 320
51 257
58 477
37 441
44 410 39 428
2013 2014 1H2015
Net Debt
Short-term Debt
Long-term Debt
%
Financial Overview
Debt Burden
28Source: IFRS accounts for FY2013, FY2014, Company
13,0 12,9
8,0
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
2013 2014 1H2015
1
0,9 0,9
0
0,5
1
1,5
2
2013 2014 1H2015
Debt Level Dynamics
RUB mn
Credit Metrics Credit Profile
EBITDA / Finance Expenses
Net Debt / LTM EBITDA
The Company Has
an Impeccable Credit History
Collaboration with
the Largest Banks
Low Debt Burden:
Net Debt / LTM EBITDA Ratio of 0,9
No Currency Risk: 100%
of Debt is Rub Denominated
Matching Revenue Structure
No Interest Rate Risk:
Interest Payments are Made
at Fixed Rates
49,2%
53,6%
59,7%
40% of Debt is Long-term
Approximately 26%
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