Press-releaseKrasnodarJanuary 27, 2014OJSC "Magnit" Announces Unaudited FY 2013 ResultsKrasnodar, January 27, 2014: OJSC "Magnit", Russia's largestretailer (the "Company"; MICEX and LSE: MGNT) announces its unaudited FY 2013results prepared in accordance with IFRS[1].During 2013 the Company added (net) 1,209 stores (1,154 conveniencestores, 35 hypermarkets and 26 "Magnit Family" stores) and increased itsselling space by 18.13% in comparison to 2012 from 2,549.26 thousand sq. m. to3,011.38 thousand sq. m. The total store base as of December 31, 2013 reached8,093 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 millionRUR in 2012 to 579,694.96 million RUR in 2013. The top line growth was due toan increase in selling space as well as to a 3.88% increase of like-for-likesales (excl. VAT). Revenue growth in dollar terms amounted to 26.14%: from US$14,429.65 million to US$ 18,201.93 million[2].Gross margin grew from 26.53% 2012 to 28.51% in 2013. Gross profitin rubles increased by 38.81% from 119,051.79 million RUR (US$ 3,828.89million) to 165,251.05 million RUR (US$ 5,188.74 million).EBITDA increased by 36.56% from 47,380.48 million RUR (US$ 1,523.83million) in 2012 to 64,700.70 million RUR (US$ 2,031.55 million) in 2013.EBITDA margin in 2013 amounted to 11.16%. EBITDA margin in the 4Q of 2013 was12.49%.2013 net income increased by 41.75% and amounted to 35,603.68million RUR (US$ 1,117.93 million) vs. 25,117.17 million RUR (US$ 807.81million) in 2012. Net income margin for FY 2013 was 6.14%.Sergey Galitskiy, the Company's CEO, provided the followingcomments on the published results:"We consider 2013 to have been a very successful year. Revenuesgrew by 29.21% (in Rubles), which was above our guidance. We also achieved arecord EBITDA margin, which enables us to maneuver competitively in theRussian marketplace and gives us the ability to balance profit margins andsales growth.Please note that in order to correctly compare our hypermarketswith those of our competitors, it is important to take into account the factthat most of our hypermarkets are of a smaller size with an average sellingspace of under 3,000 square meters. In order to compare "apples to apples," wewould like to highlight the operating efficiency of our large formathypermarkets (6 stores with a selling space of over 7,000 square meters). In2013, these 6 large format Magnit hypermarkets had an EBITDA margin of 12.27%.Additionally, we would like to draw your attention to the fact that some ofour competitors also use a different methodology to calculate their LFLnumbers. Specifically, some of our competitors put their stores into their LFLbase only 1 month after opening, which results in an overstatement of theirLFL traffic compared to ours."---------------------------------[1] Based on management accounts[2] Based on the average exchange rate for 2013 - 31.8480 RUR per 1 US$, 2012- 31.0930 RUR per 1 US$4Q and FY 2013 Key Operating and Financial Highlights: 4Q 4Q Growth 12М 12М Growth 2013 2012 Rate 2013 2012 RateNumber of opened stores, NET 447 765 n/a 1,209 1,575 n/a convenience stores 417 523 n/a 1,154 1,040 n/a hypermarkets 13 21 n/a 35 36 n/a magnit family 16 9 n/a 26 17 n/a cosmetics stores 1 212 n/a (6) 482 n/aTotal number of stores 8,093 6,884 n/a 8,093 6,884 n/a convenience stores 7,200 6,046 n/a 7,200 6,046 n/a hypermarkets 161 126 n/a 161 126 n/a magnit family 46 20 n/a 46 20 n/a cosmetics stores 686 692 n/a 686 692 n/aSelling space growth, th. sq.m. 169.99 288.38 n/a 462.12 579.09 n/a convenience stores 116.46 164.03 n/a 334.74 339.63 n/a hypermarkets 34.43 62.93 n/a 95.26 109.17 n/a magnit family 17.83 10.73 n/a 28.91 20.56 n/a cosmetics stores 1.27 50.68 n/a 3.21 109.74 n/aSelling space, eop, th. sq. m. 3,011.38 2,549.26 18.13% 3,011.38 2,549.26 18.13% convenience stores 2,312.20 1,977.46 16.93% 2,312.20 1,977.46 16.93% hypermarkets 482.88 387.62 24.58% 482.88 387.62 24.58% magnit family 53.26 24.36 118.67% 53.26 24.36 118.67% cosmetics stores 163.04 159.83 2.01% 163.04 159.83 2.01%Number of customers, million 656.92 549.44 19.56% 2,465.05 2,033.43 21.23% convenience stores 579.17 497.07 16.52% 2,193.87 1,863.62 17.72% hypermarkets 53.45 39.47 35.42% 193.06 137.69 40.21% magnit family 9.57 4.34 120.63% 29.60 8.87 233.84% cosmetics stores 14.73 8.56 72.03% 48.52 23.25 108.70%LFL ResultsLFL growth 4Q 2013 - 4Q 2012[3] Convenience Hypermarkets Magnit Cosmetics Total stores Family storesAverage ticket (excl. VAT), RUR 4.21% 2.13% 1.77% 4.92% 4.29%Traffic (2.03)% 1.75% (2.78)% 26.69% (1.52)%Revenue, RUR 2.09% 3.92% (1.06)% 32.92% 2.71%LFL growth 12М 2013 - 12М 2012[4] Convenience Hypermarkets Magnit Cosmetics Total stores Family storesAverage ticket (excl. VAT), RUR 5.35% 2.04% 5.01% 3.72% 5.22%Traffic (1.57)% 2.52% 7.41% 10.54% (1.28)%Revenue, RUR 3.70% 4.61% 12.80% 14.65% 3.88%---------------------------------[3] Based on 4,734 convenience stores and 217 cosmetics storeswhich were opened by April 1, 2012, and 90 hypermarkets and 3 Magnit Familywhich were opened by February 1, 2012, i.e. based on the result of theconvenience stores that had been operating for not less than six months andhypermarkets that had been operating for not less than eight months and haveachieved a mature level of sales.[4] Based on 3,487 convenience stores and 18 cosmetics stores whichwere opened by July 1, 2011, and 60 hypermarkets and 1 Magnit Family whichwere opened by May 1, 2011, i.e. based on the result of the convenience storesthat had been operating for not less than six months and hypermarkets that hadbeen operating for not less than eight months and have achieved a mature levelof sales4Q and FY 2013 Key Financial Results 4Q 4Q Growth FY FY Growth 2013 2012 Rate 2013 2012 RateNet sales, mn RUR 162,515.30 129,176.09 25.81% 579,694.96 448,661.13 29.21% convenience stores 123,796.88 102,481.13 20.80% 450,801.48 364,236.40 23.77% hypermarkets 31,180.71 22,881.23 36.27% 106,175.58 75,418.70 40.78% magnit family 3,695.40 1,583.85 133.32% 10,678.07 3,098.58 244.61% cosmetics stores 3,794.01 2,207.63 71.86% 11,873.35 5,732.51 107.12% wholesale 48.29 22.24 117.09% 166.48 174.93 (4.83%)Net sales, mn US$ 4,995.34 4,156.69 20.18% 18,201.93 14,429.65 26.14% convenience stores 3,805.22 3,297.68 15.39% 14,154.78 11,714.42 20.83% hypermarkets 958.42 736.28 30.17% 3,333.82 2,425.58 37.44% magnit family 113.59 50.97 122.87% 335.28 99.66 236.44% cosmetics stores 116.62 71.04 64.16% 372.81 184.37 102.21% wholesale 1.48 0.72 107.37% 5.23 5.63 (7.09%)Gross profit, mn RUR 48,590.99 35,752.28 35.91% 165,251.05 119,051.79 38.81%Gross profit, mn US$ 1,493.57 1,150.45 29.82% 5,188.74 3,828.89 35.52%Gross margin, % 29.90% 27.68% n/a 28.51% 26.53% n/aEBITDAR, mn RUR 24,462.20 17,694.44 38.25% 79,657.08 57,770.83 37.88%EBITDAR, mn US$ 751.91 569.38 32.06% 2,501.16 1,858.00 34.62%EBITDAR margin, % 15.05% 13.70% n/a 13.74% 12.88% n/aEBITDA, mn RUR 20,295.02 14,636.97 38.66% 64,700.70 47,380.48 36.56%EBITDA, mn US$ 623.82 470.99 32.45% 2,031.55 1,523.83 33.32%EBITDA margin, % 12.49% 11.33% n/a 11.16% 10.56% n/aEBIT, mn RUR 16,465.65 11,508.45 43.07% 50.514.46 36,110.82 39.89%EBIT, mn US$ 506.12 370.32 36.67% 1,586.11 1,161.38 36.57%EBIT margin, % 10.13% 8.91% n/a 8.71% 8.05% n/aNet income, mn RUR 11,773.78 8,326.02 41.41% 35,603.68 25,117.17 41.57%Net income, mn US$ 361.90 267.92 35.08% 1,117.93 807.81 38.39%Net income margin, % 7.24% 6.45% n/a 6.14% 5.60% n/aNote: net revenue in US$ terms is calculated using the dailyexchange rate.For further information, please contact:Timothy Post Director, Investor Relations Email: post@gw.tander.ru Office: +7-861-277-4554 x7600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562Dina Svishcheva Deputy Director, Investor Relations Email: Chistyak@gw.tander.ru Office: +7-861-277-45-54 x5101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562Company description:Magnit is Russia's largest retailer. Founded in 1994, the companyis headquartered in the southern Russian city of Krasnodar. As of December 31,2013, Magnit operated 22 distribution centers and over 8,000 stores (7,200convenience, 207 hypermarkets, and 686 cosmetics) in more than 1,868 citiesand towns throughout 7 federal regions of the Russian Federation.In accordance with the unaudited IFRS management accounts for 2013,Magnit had revenues of $18,202 million USD and an EBITDA of $2,032 millionUSD. Magnit's local shares are traded on the Moscow Stock Exchange (MICEX:MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has acredit rating from Standard & Poor's of BB. Measured by market capitalization,Magnit is now Europe's 2nd largest retailer.