INVESTOR PRESENTATION

1Q 2018 RESULTS published on April 20, 2018

Magnit at a Glance

Magnit at a Glance

Sources: Company, Thomson Reuters, Company’s calculations based on IFRS accounts for FY2017 2

2 764Cities & Towns

16 625Total Number

of Stores

5 830Selling Space

(thous.sq.m.)

37DCs

6 074Trucks

№1Retailer in Russia

Measured by Number

of Stores & Geographical

Coverage$9bn

Market

Capitalization 9% Share in Russian

Grocery Sector

(As of eop 2017)

Shareholder Structure As of December 31, 2017

66,2%Free-float

31,8%Sergey Galitskiy, CEO

0,2%Lavreno Ltd. (Cyprus)

0,1%

1,8%Other

As of March 31, 2018

As of March 31, 2018

Magnit at a Glance

Key Metrics

3Sources: Company’s estimates and calculations

1,14trillion 6,4 %

3,11%

Net

Margin

8,03%

EBITDA

Margin

1,2

Net Debt/

LTM EBITDA

1 500 20

700

P=2017 Revenue Growth Y-o-Y

Guidance for FY 2018

Figures for FY 2017

7-9%

Sales Growth Rate Rub

New Convenience Stores (Gross)

New Drogerie Stores (Gross)

Total Revenue FY 2017

New Hypermarkets & Magnit Family (Gross)

55

CAPEX, Rub bn

Number of Refurbished Stores

1 200

69

Magnit at a Glance

Russian Food Retail Market

4

Market Composition by Format

RUB 14,4trillion Market

Size

FY 2017%

Modern

Retail

Penetration

FY 2016

Non-Modern Modern

Source: INFOLine, as of December 31, 2016

69%31%

Top-7 Retail Chains

26%

Modern Non-Chain

Stores

15%

Other chains

28%

Traditional Trade

24%

Open Markets

7%

5 755

5 480

927

1 382

1 141

690

578

16 350

12 121

2 703

328

313

92

145

Magnit

X5

Dixy

Lenta

Auchan

Metro

Okey

1 143

1 295

283

365

389

224

177

13,9

10,3

0,7

2,8

0,7

Magnit at a Glance

Magnit vs Peers

5Sources: Companies, INFOLine, Thomson Reuters, Magnit’s Estimates

Number

of Stores, eop 2017

Selling Space

thous. sq.m.,

eop 2017

Revenue

RUB bn, eop 2017

Market Cap

US$ bn, eop 2017

Market Share

%, eop 2017

9

10

2

3

3

2

1

Not public

Not public

3 890Drogerie Stores 141 748 976 1 092 322 432

179

12 283Convenience Stores

242Hypermarkets

210Magnit Family

37Distribution Centers

10 54 42 55 17 19 13

9 69 38 67 16 32

11

368

1 847 3 535 3 502 1 252 1 194

585

Operational Overview

Geographical Coverage

6Source: Company,

as of March 31, 2018

2 764 Cities

& Towns

7 Federal

Regions

North

CaucasusSouthern Volga North

West

Urals SiberiaCentral

1 8 9 10 3 3 3

Operational Overview

Logistics System

7Source: Company,

as of March 31, 2018

16 625Total Number

of Stores

1 640thous.sq.m.

Warehousing Space

37DCs

6 074Trucks

9

10

8

3

1

3

3

Central

Volga

Southern

Urals

North Caucasus

North West

Siberia

4 750

5 207

2 711

1 580

523

1 074

780

477

470

308

141

40

119

84

Centralization Ratio

%

89

11

90

10

1Q2018 Future Targets

Delivered from DC

Delivered from supplier

Operational Overview

Suppliers

8Source: Company,

as of March 31, 2018

5 900Domestic

Suppliers

4 700Local Suppliers

1 200Federal Suppliers

Assortment

55% 45%

Operational Overview

Direct Import

9

9 % Share

of Revenue672PL

SKUsM 79% Food

Items

Private Label

7 % International

Direct Import

(Annual Average) 744Open

Contracts

Source: Company,

Direct Import – as of December 31, 2017;

Private Label – as of March 31, 2018

Operational Overview

Employees

10

Source: Company, as of March 31, 2018* as of December 31, 2017

271 828Employees

33 695Average

Monthly

Salary *P=

199 336In-store

35 099Distribution

22 291Regional

Branches

11 837Head Office

1000 employees

3 265Other

Operational Overview

Competitive Attributes

11

43-45 %of Family

Budget

Spent on Food

Location Quality Assortment Reliability AtmospherePrice

5 000People —

Minimum

Population

(1 500–1 600 Families)

8 000-12 000Monthly

Family Food

BudgetP=

Overlap “Good”

Cannibalization

Magnit #1

Magnit #2

500m

Competitor #1 Competitor #2

Competitor #3

500m

Sales Catchment Area

Source: Company’s Estimates

Operational Overview

Convenience Store

12Source: Company,

as of March 31, 2018

470sq.m.

Total

327sq.m.

Selling Space

88% Food

12% Non-food

21% Owned

79% 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 1Q2018 – 1Q2017,%

254,1P=$4,5

235 054P=$4 028

-0,07Average

Ticket, RUB

-3,76Traffic

-3,83Sales

2,4

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 35-105

Leased 10-19

Operational Overview

Hypermarket

13Source: Company,

as of March 31, 2018

80% Food

20% Non-food

72% Owned

28% 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 1Q2018 – 1Q2017,%

571,0P=$10,0

213 494P=$3 659

0,9

6 372sq.m.

Total

2 867sq.m.

Selling Space

-2,96Average

Ticket, RUB

-1,96Traffic

-4,86Sales

Opening

Payback

6-9 years

Cost of New Store

per sq.m. of Total Space, thousand RUB

Owned 65-105

Leased 31-41

8-15 months

Time to Maturity

S: up to 3 000

M: 3 000-6 000

L: over 6 000

Operational Overview

Magnit Family

14Source: Company,

as of March 31, 2018

2 103sq.m.

Total

1 098sq.m.

Selling Space

84% Food

16% Non-food

38% Owned

62% 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 1Q2018 – 1Q2017,%

448,0P=$7,9

280 832P=$4 813

1,6

6-9 years

Cost of New Store

per sq.m. of Total Space, thousand RUB

Owned 71-122

Leased 31-54

8-15 months

-0,35Average

Ticket, RUB

-2,81Traffic

-3,15Sales

Time to Maturity

Operational Overview

Drogerie Store

15Source: Company,

as of March 31, 2018

287sq.m.

Total

230sq.m.

Selling Space

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 1Q2018 – 1Q2017,%

322,5P=$5,7

101 999P=$1 748

4,53Average

Ticket, RUB

-4,24Traffic

0,10Sales

0,8

3 years

If Leased

If Owned

Cost of New Store

per sq.m. of Total Space, thousand RUB

Time to Maturity

6 months

Owned 20-70

Leased 9-16

4-6 years

100% Non-food

Size

of the Storesq.m.

Average

Ticket

Traffic

Tickets/sq.m./day

Density

Sales/sq.m./year

Sales

Mix

LFL 1Q2018-

1Q2017%

Store Owner-

ship Structure

PaybackYears

Cost of New

Storeper sq.m.

of Total Space

Time

to MaturityMonths

• Total

• Selling Space

• Food

• Non-food

• Av.ticket

• Traffic/ Sales

• Owned

• Leased

-0,07

-2,96

4,53

-0,35

-3,76

-1,96

-4,24

-2,81

-3,83

-4,86

0,10

-3,15

80%

20%

14%

86%

38%

62%

72%

28%

21%

79%

Operational Overview

Format Summary

16Source: Company, as of March 31, 2018; * Excludes selling space designated for leases

Hypermarket

Drogerie

Store

Magnit

Family

470

6 372

287

2 103

327

2 867*

230

1 098

Owned

RUB 35-105k

Leased

RUB 10-19k

2,4

0,9

0,8

1,6

P.254,1

$4,5

P.571,0

$10,0

P.322,5

$5,7

P.448,0

$7,9

P.235 054

$4 028

P.213 494

$3 659

P. 101 999

$1 748

P.280 832

$4 813

88%

12%

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)

Owned

RUB 65-105k

Leased

RUB 31-41k

Owned

RUB 20-70k

Leased

RUB 9-16k

Owned

RUB 71-122k

Leased

RUB 31-54k84%

16%

100%

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’s calculations based on IFRS accounts for 2016-2017Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals 17

RUB MN 2016 2017 Y-o-Y Growth

Net sales 1,074,811.55 1,143,314.41 6.4%

Cost of sales (779,052.55) (838,671.51) 7.7%

Gross profit 295,759.01 304,642.89 3.0%

Gross margin, % 27.52% 26.65%

SG&A (192,390.19) (220,245.12) 14.5%

Other income, net 4,286.24 7,157.47 67.0%

EBITDA 107,793.02 91,777.64 (14.9%)

EBITDA margin,% 10.03% 8.03%

Depreciation & Amortization (25,825.63) (33,715.70) 30.6%

EBIT 81,967.38 58,061.94 (29.2%)

Net finance costs (13,187.42) (12,638.17) (4.2%)

Profit before tax 68,779.96 45,423.77 (34.0%)

Taxes (14,370.97) (9,884.80) (31.2%)

Effective tax rate 20.89% 21.76%

Net income 54,408.99 35,538.97 (34.7%)

Net margin, % 5.06% 3.11%

5954

36

2015 2016 2017

9511 075 1 143

2015 2016 2017

Financial Overview

Revenue & Costs

18Source: Company’s calculations based on IFRS accounts for 2015-2017

28,527,5

26,6

10,910

8,0

6,25,1

3,1

0

5

10

15

20

25

30

2015 2016 2017

Revenue DynamicsRUB bn

Net Income DynamicsRUB bn

Margin DynamicsSG&A Expense Structure 2017

Revenue — 1 143 RUB bn

Gross

Margin

EBITDA

Margin

Net

Margin

%

+13,1%

-0,3% -3,4%

+6,4% -7,9% -34,7%

LFLLFL

Sales Growth, RUB Sales Growth, RUB

1,75 (0,39) ― Packaging & Raw Materials

1,99 (0,44) ― Repair & Maintenance

47,31 (10,50) ― Payroll & Related Taxes

1,34 (0,30)― Taxes, Other than Income Tax

13,20 (2,93) ― Deprecation & Amortization

26,09 (5,79) ― Rent & Utilities

3,24 (0,71) ― Other

in SG&A,% in Revenue, %

3,32 (0,74) ― Advertising

1,76 (0,39) ― Bank Services

22%

253 738 RUB mn

28,49 27,52

26,65-0,88 -0,09 -0,63

-0,24

15

17

19

21

23

25

27

29

31

33

GM2015

Trading Margin Transport GM2016

Trading Margin Transport GM2017

Financial Overview

Gross Margin Bridge

19Source: Company’s calculations

EBITDA Margin Bridge

% of Sales

% of Sales

-87 b.p.

-91 b.p. -200 b.p.

10,94 10,03

8,03

-0,97-0,62 -0,05 -0,03 -0,87

-0,43-0,54 -0,24 -0,04

0,32 0,11 0,33

0,04 0,08

0

2

4

6

8

10

12

EBITDA2015

GrossMargin

Payroll &Taxes

Rent & Utilites Advertising Repair &Maintenance

Packaging &Raw Materials

Other EBITDA2016

GrossMargin

Payroll &Taxes

Rent & Utilites Advertising Repair &Maintenance

Packaging &Raw Materials

Other EBITDA2017

-97 b.p.

Financial Overview

Free Cash Flow

20Source: Company’s calculations based on IFRS accounts for 2016 – 2017

Working Capital Analysis

Average Days Payable to Suppliers is

38 Days.

Inventory Management Days is 64 Days

Working Capital: RUB 53 296 mn as of

31.12.2017

RUB mn

2016

2017

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

107 328

63 042

12 920 8 168

-18 126

-13 594-12 566

-49 844

-278 -28 976 24 224

AdjustedEBITDA

Change inWorking capital

Net InterestExpense

TaxesPaid

OCF Capex Other CashFlow

from InvestingActivities

FCF Payment ofDividents

Other CashFlow

from FinancingActivities

CF

92 262

61 008

-13 186 1 778

-13 386

-12 992-4 876

-73 591

-603 -29 233 44 198

AdjustedEBITDA

Change inWorking capital

Net InterestExpense

TaxesPaid

OCF Capex Other CashFlow

from InvestingActivities

FCF Payment ofDividents

Other CashFlow

from FinancingActivities

CF

Financial Overview

Balance Sheet

Source: Company’s calculations based on IFRS accounts for 2016 – 2017Please note: there may be small variations in calculation of totals, subtotals, and/or percentage change due to rounding of decimals 21

RUB MN 2016 2017

ASSETS

Property plant and equipment 289,945.35 329,826.90

Other non-current assets 6,080.58 6,959.12

Cash and cash equivalents 16,559.27 18,337.42

Inventories 134,915.71 162,204.50

Trade and other receivables 844.12 1,399.19

Advances paid 5,208.27 4,990.44

Taxes receivable 447.81 598.27

Short-term financial assets 215.88 215.31

Prepaid expenses 458.77 640.44

Income tax receivable 239.73 1,153.66

TOTAL ASSETS 454,915.49 526,325.25

EQUITY AND LIABILITIES

Equity 196,076.97 259,307.44

Long-term debt 77,499.90 86,338.13

Other long-term liabilities 15,625.65 22,622.29

Trade and other payables 83,923.32 99,142.15

Short-term debt 50,105.88 40,121.93

Dividends payable 11,936.87 0.83

Other current liabilities 19,746.90 18,792.48

TOTAL EQUITY AND LIABILITIES 454,915.49 526,325.25

Financial Overview

Capex Figures

22Source: Company’s calculations based on IFRS accounts for 2017

Buildings: Complete & under

Construction

Machinery & Equipment Other Assets Land

44 443 20 355 7 928 865

FY 2017

RUB 74 bn

RUB 500 mn

104 228

127 606 126 460

95 837

111 047108 123

44 817

50 106

40 122

59 411

77 500

86 338

2015 2016 2017

Net Debt

Short-term Debt

Long-term Debt

%

Financial Overview

Debt Burden

23Source: Company’s calculations based on IFRS accounts for 2015-2017

8,78,1

7,1

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2015 2016 2017

0,91,0

1,2

0

0,5

1

1,5

2

2015 2016 2017

Debt Level DynamicsRUB 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 1,2

No Currency Risk: 100%

of Debt is Rub Denominated

Matching Revenue Structure

Insignificant Interest Rate Risk:

Interest Payments are Made

at Fixed Rates Primarily

43,0%

39,3%

31,7%

68% of Debt is Long-term

Contact Information

Contact Information

24

Timothy Post

Head of Investor Relations

post@ir.magnit.com

http://ir.magnit.com

15/2 Solnechnaya Street

Krasnodar, 350072

Russian Federation