«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 One of the leading food retailers in Russia by number of stores, selling space. 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 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 December 31, 2017 2 709 localities 16 350 stores 37 distribution centers 6 089 vehicles more 280 000 employees
«Magnit» in figures 2015 2016 31.12.2017 Number of the stores 12 089 14 059 16 350 Convenience stores 9 594 10 521 12 125 Hypermarkets 219 237 243 Magnit Family 155 194 208 Cosmetics stores 2 121 3 107 3 774 Net revenue, mln. Rub. 950 613.34 1 074 811.55 1 143 290.40 Total selling space, thousand sq.m. 4 413.72 5 067.67 5 754.94 Number of tickets, mln. 3 376.86 3817.13 4 040.50 % Net income, mln. Rub. 59 061.20 54 362.72 35 530.64 Net income margin, % 6.21 5.06 3.11
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: 468 sq. m. Average selling space: 326 sq. m. Average ticket: 89 % 11 % As of December 31, 2017 248.6
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: 6 388 sq. m. Average selling space: 2 887 sq. m. Average ticket: 587.4 As of December 31, 2017
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: 2 112 sq. m. Average selling space: 1 101 sq. m. Average ticket: 84 % 16% 446.2 As of December 31, 2017
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: 287 sq. m. Average selling space: 230 sq. m. Average ticket: 310.7 As of December 31, 2017
Geographical coverage (as of December 31, 2017) CFD 3 484 39 42 945 9 NWFD 1 236 16 16 317 3 Convenience stores Hypermarkets Magnit Family Cosmetics stores Distribution Centers SFD 1 816 69 54 731 8 NCFD 373 9 10 138 1 2 709 cities and towns 7 federal districts VFD 3 470 67 54 1 065 10 UFD 1 178 32 19 407 3 SibFD 568 11 13 171 3
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 2018 the company is planning to open: 1 500 Convenience stores 20 Hypermarkets and Magnit Family 700 Cosmetics stores