«Magnit» retail chain
About us Company mission: We work hard to increase the prosperity of our customers by minimising their expenses on quality consumer goods through effecient use of the company s resources, improvement of the technology and adequate compensation for our employees. Company objective: To secure the company s high viability and competitiveness by maintaining life support systems at the desired level, making timely and quality adjustments of provided services according to the requirements of law changes and the consumers priorities. Our values: RESPONSIBILITY DEVELOPMENT COOPERATION PROFESSIONALISM
«Magnit» retail chain Leading food retailer in Russia by number of stores, selling space, sales, growth rate and efficiency. First Magnit convenience store was opened in 1998 in Krasnodar. 15 years later (in 2013) Magnit retail chain has become the largest food retailer in Russia. Magnit is now the absolute national market leader. Magnit stores are opened in big cities as well as in small towns. Approximately two-thirds of the stores are operating in towns with population less than 500,000 people. The largest food importer on the territory of the Russian Federation. To reduce prices our company directly imports huge volumes of fresh fruits and vegetables, meat and milk products, canned food, grocery and confectionery, frozen fish and seafood, as well as non-food products. Reliable and stable partner for national producers and foreign companies. The largest private employer in Russia. As of March 31, 2016 2 385 localities 12 434 stores 34 distribution centers 5 861 vehicles over 260 000 employees
«Magnit» in figures 2014 2015 as of 31.03.2016 Number of the stores 9 711 12 089 12 434 Convenience stores 8 344 9 594 9 715 Hypermarkets 190 219 225 Magnit Family 97 155 157 Cosmetics stores 1 080 2 121 2 337 Net revenue, mln. Rub. 763 527. 25 950 613.34 255 302.74 Total selling space, thousand sq.m. 3 590. 64 4 413. 72 4 523.63 Number of tickets, mln. 2 944.12 3 376. 86 893.52 % Net income, mln. Rub. 47 685. 84 59 061. 20 8 243.28 Net income margin, % 6. 25 6.21 3.23
Multiformat business model Convenience stores The first convenience store was opened in 1998. Located within walking distance of residential buildings, near to main walking and transport flows Quality assortment of consumer staples at the lowest prices Ground floor stores or freestanding Sales mix: food non-food Average total space: 456 sq. m. Average selling space: 326 sq. m. Average ticket: 89 % 11 % As of March 31, 2016 248.68
Multiformat business model Hypermarkets The first hypermarket was opened in 2007. Located within the city near to transport flows Less aggressive pricing than that of the average market Parking lot for cars Р Wide assortment including large group of manufactured goods Own production facility, producing ready meals and ready-to-cook products Sales mix: food, non-food 80 % 20 % Large selling space. Average total space: 6 538 sq. m. Average selling space: 2 905 sq. m. Average ticket: 603.41 As of March 31, 2016
Multiformat business model «Magnit Family» The new format Magnit Family was launched in 2012. Located primarily in the leased premises of the shopping centers Expanded fresh product zone Own production facility (ready meal) Sales mix: food non-food Average total space: 2 158 sq. m. Average selling space: 1 096 sq. m. Average ticket: 84 % 16% 455.7 As of March 31, 2016
Multiformat business model Cosmetics stores (Drogerie) The first cosmetics store was opened in 2010. Located within walking distance of residential buildings, near to main walking and transport flows Ground floor stores or above the convenience stores Wide assortment of attractively priced hygiene and household products, cosmetics, perfumery, homeware and merchandise for kids Sales mix: non-food 100 % Average total space: 298 sq. m. Average selling space: 229 sq. m. Average ticket: 313.6 As of March 31, 2016
Geographical coverage (as of March 31, 2016) CFD 2 605 37 30 596 10 NWFD 956 15 11 216 2 Convenience stores Hypermarkets Magnit Family Cosmetics stores Distribution Centers SFD 1 666 62 42 487 8 NCFD 356 8 5 86 1 2 297 cities and towns 7 federal districts VFD 2 916 63 51 654 8 UFD 874 30 9 216 3 SibFD 342 10 9 88 2
Development strategy Further expansion of the chain by increasing the density of coverage of the key markets as well as organic expansion in the least developed regions of Russia. Development of the multi-format business-model through continuing aggressive opening of convenience stores, hypermarkets, Magnit Family and drogerie stores. Building of the high level loyalty of the key audience to the brand. Implementation of additional measures to minimize costs and improve profitability. In 2016 the company is planning to open: 900 950 Convenience stores 80 Hypermarkets and Magnit Family 1 200 Cosmetics stores