Press-release Krasnodar March 24, 2016 PJSC Magnit Announces Audited FY 2015 Results Krasnodar, March 24, 2016: PJSC Magnit, Russia s largest retailer (the Company ; MOEX and LSE: MGNT) announces its audited FY 2015 results prepared in accordance with IFRS. During 2015 the Company added (net) 2,378 stores (1,250 convenience stores, 29 hypermarkets, 58 Magnit Family stores and 1,041 drogerie stores) and increased its selling space by 22.92% in comparison to 2014 from 3,590.64 thousand sq. m. to 4,413.72 thousand sq. m. The total store base as of December 31, 2015 reached 12,089 stores (9,594 convenience stores, 219 hypermarkets, 155 Magnit Family stores and 2,121 drogerie stores). Revenue increased by 24.50% YoY from 763,527.25 million RUR in 2014 to 950,613.34 million RUR in 2015. The top line growth was due to an increase in selling space as well as to a 6.21% increase in like-for-like sales. Gross profit increased by 22.81% from 220,520.56 million RUR to 270,820.81 million RUR. Gross margin in 2015 amounted to 28.49%. EBITDA increased by 21.03% from 85,909.67 million RUR in 2014 to 103,972.93 million RUR in 2015. EBITDA margin in 2015 amounted to 10.94%. EBITDA margin in the 4Q of 2015 was 11.09%. Net Debt / EBITDA ratio (in ruble terms) for 2015 amounted to 0.92. 2015 net income increased by 23.85% and amounted to 59,061.20 million RUR vs. 47,685.84 million RUR in 2014. Net income margin for 2015 was 6.21%. Key figures presented in this press release are immaterially higher compared to numbers under management accounts announced by the Company on January 27, 2016. Thus, according to the audited FY 2015 results EBITDA and EBIT margins are higher by 1 b. p., while Net Income margin is higher 2 b.p.
4Q and FY 2015 Key Operating Highlights: 4Q 2015 4Q 2014 Growth Rate FY 2015 FY 2014 Growth Rate Number of opened stores, NET 701 691 n/a 2,378 1,618 n/a convenience stores 348 453 n/a 1,250 1,144 n/a hypermarkets 11 15 n/a 29 29 n/a magnit family 28 29 n/a 58 51 n/a drogerie stores 314 194 n/a 1,041 394 n/a Total number of stores 12,089 9,711 n/a 12,089 9,711 n/a convenience stores 9,594 8,344 n/a 9,594 8,344 n/a hypermarkets 219 190 n/a 219 190 n/a magnit family 155 97 n/a 155 97 n/a drogerie stores 2,121 1,080 n/a 2,121 1,080 n/a Selling space, eop. th. sq. m. 4,413.72 3,590.64 22.92% 4,413.72 3,590.64 22.92% convenience stores 3,119.56 2,673.31 16.69% 3,119.56 2,673.31 16.69% hypermarkets 639.14 559.09 14.32% 639.14 559.09 14.32% magnit family 170.18 109.07 56.03% 170.18 109.07 56.03% drogerie stores 484.84 249.17 94.58% 484.84 249.17 94.58% Selling space growth, th. sq.m. 258.73 263.64 n/a 823.08 579.26 n/a convenience stores 122.26 153.60 n/a 446.25 361.11 n/a hypermarkets 34.18 37.11 n/a 80.05 76.21 n/a magnit family 30.36 30.24 n/a 61.11 55.81 n/a drogerie stores 71.92 42.69 n/a 235.67 86.13 n/a Number of customers, million 895.82 785.28 14.08% 3,376.86 2,944.12 14.70% convenience stores 754.72 676.19 11.61% 2,874.00 2,567.15 11.95% hypermarkets 68.76 64.50 6.60% 263.05 237.59 10.72% magnit family 29.08 19.67 47.81% 100.30 60.93 64.60% drogerie stores 43.26 24.91 73.65% 139.51 78.45 77.82%
LFL Results Formats 4Q 2015-4Q 2014 1 # of Stores Average Ticket Traffic Sales Convenience Stores 7,798 3.33% (1.45)% 1.83% Hypermarkets 181 (0.28)% (7.36)% (7.63)% Magnit Family 77 (0.97)% (6.53)% (7.44)% Drogeries 973 13.72% (1.63)% 11.86% Total 9,029 2.07% (2.09)% (0.07)% Formats 12M 2015 12M 2014 1 # of Stores Average Ticket Traffic Sales Convenience Stores 7,287 8.14% (0.79)% 7.29% Hypermarkets 179 5.53% (3.80)% 1.51% Magnit Family 76 4.33% (3.55)% 0.62% Cosmetics Stores 910 13.24% 5.62% 19.61% Total 8,452 7.23% (0.96)% 6.21% 1 LFL calculation base includes stores (all formats), which have been opened 12 months prior to the last month of the reporting period. i.e. by December 1, 2014.
4Q 2 and FY 2014 Key Financial Results, million RUR 3 4Q 2015 4Q 2014 Growth Rate FY 2015 FY 2014 Growth Rate Net sales 260,170.78 220,852.25 17.80% 950,613.34 763,527.25 24.50% convenience stores 188,929.35 163,402.85 15.62% 701,274.95 577,775.77 21.37% hypermarkets 43,310.51 41,305.33 4.85% 161,578.67 139,655.12 15.70% magnit family 13,509.11 9,023.09 49.72% 44,825.31 25,533.74 75.55% drogerie stores 13,403.80 6,701.76 100.00% 40,122.06 19,756.68 103.08% wholesale 1,018.01 419.21 n/a 2,812.35 805.94 n/a Gross profit 75,444.88 65,044.14 15.99% 270,820.81 220,520.56 22.81% Gross margin, % 29.00% 29.45% n/a 28.49% 28.88% n/a EBITDAR 37,416.36 31,251.81 19.73% 134,149.92 106,483.50 25.98% EBITDAR margin, % 14.38% 14.15% n/a 14.11% 13.95% n/a EBITDA 28,860.14 25,302.11 14.06% 103,972.93 85,909.67 21.03% EBITDA margin, % 11.09% 11.46% n/a 10.94% 11.25% n/a EBIT 23,253.59 20,615.00 12.80% 82,856.21 68,300.00 21.31% EBIT margin, % 8.94% 9.33% n/a 8.72% 8.95% n/a Net income 15,807.15 13,793.19 14.60% 59,061.20 47,685.84 23.85% Net income margin, % 6.08% 6.25% n/a 6.21% 6.25% n/a 2 Unaudited results 3 Please follow the link to view FY 2015 financial report http://ir.magnit.com/en/financial-reports/
4Q 4 and FY 2015 Key Financial Results, US$ 5 million 6 4Q 2015 4Q 2014 Growth Rate FY 2015 FY 2014 Growth Rate Net sales 3,945.36 4,656.94 (15.28)% 15,594.59 19,872.31 (21.53)% convenience stores 2,865.02 3,445.55 (16.85)% 11,504.25 15,037.75 (23.50)% hypermarkets 656.78 870.97 (24.59)% 2,650.66 3,634.80 (27.08)% magnit family 204.86 190.26 7.67% 735.35 664.57 10.65% drogerie stores 203.26 141.31 43.84% 658.19 514.21 28.00% wholesale 15.44 8.84 n/a 46.14 20.98 n/a Gross profit 1,144.09 1,371.54 (16.58)% 4,442.75 5,739.49 (22.59)% Gross margin, % 29.00% 29.45% n/a 28.49% 28.88% n/a EBITDAR 567.40 658.98 (13.90)% 2,200.70 2,771.45 (20.59)% EBITDAR margin, % 14.38% 14.15% n/a 14.11% 13.95% n/a EBITDA 437.65 533.53 (17.97)% 1,705.65 2,235.97 (23.72)% EBITDA margin, % 11.09% 11.46% n/a 10.94% 11.25% n/a EBIT 352.63 434.69 (18.88)% 1,359.24 1,777.64 (23.54)% EBIT margin, % 8.94% 9.33% n/a 8.72% 8.95% n/a Net income 239.71 290.85 (17.58)% 968.89 1,241.12 (21.93)% Net income margin, % 6.08% 6.25% n/a 6.21% 6.25% n/a Note: net revenue in US$ terms is calculated using the average exchange rate for the period. 4 Unaudited results 5 Based on the average exchange rate for 4Q 2015-65.9434 RUB per 1 USD, 4Q 2014 47.4243 RUB per 1 USD, 12M 2015-60.9579 RUB per 1 USD, 12M 2014 38.4217 RUB per 1 USD 6 Please follow the link to view FY 2015 financial report http://ir.magnit.com/en/financial-reports/
For further information, please contact: Timothy Post Investor Relations Office Media Inquiries Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: http://ir.magnit.com/ Media Relations Department press@magnit.ru Company description: Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of December 31, 2015, Magnit operated 33 distribution centers and about 12,089 stores (9,594 convenience, 374 hypermarkets, and 2,121 drogerie stores) in 2,361 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.