OREANDA-NEWS. OJSC “Magnit” (the “Company”; MICEX and LSE: MGNT) is pleased to announce its FY 2012 financial results prepared in accordance with IFRS and audited by Ernst & Young.

During 2012 the Company added (net) 1,575 stores (1,040 convenience stores, 36 hypermarkets, 17 Magnit Family stores and 482 cosmetics stores) and increased its selling space by 29.39% in comparison to 2011 from 1,970.16 thousand sq. m. to 2,549.26 thousand sq. m. The total store base as of December 31, 2012 reached 6,884 stores (6,046 convenience stores, 126 hypermarkets, 20 Magnit Family stores and 692 cosmetics stores).

Revenue in rubles increased by 34% YoY from 335,699.95 million RUR in 2011 to 448,661.13 million RUR in 2012. The top line growth was due to an increase in selling space as well as to a 5.26% increase of like-for-like sales (excl. VAT). Revenue growth i n dollar terms amounted to 26%: from USD 11,423.26 million to USD 14,429.65 million.

Gross margin grew from 24.33% in 2011 to 26.53% in 2012. Gross profit in rubles increased by 45.78% from 81,663.45 million RUR (USD 2,778.86 million) to 119,051.79 million RUR (USD 3,828.89 million).

EBITDA increased by 71.64% from 27,604.14 million RUR (USD 939.32 million) in 2011 to 47,380.48 million RUR (USD 1,523.83 million) in 2012. EBITDA margin in 2012 amounted to 10.56%. Net debt / EBITDA ration (in ruble terms) for 2012 amounted to 1.07.

2012 net income increased by 104.14% and amounted to 25,117.17 million RUR (USD 807.81 million) vs. 12,303.84 million RUR (USD 418.68 million) in 2011.

Key figures presented in this press-release are immaterially higher compared to numbers under management accounts announced by the Company on January 22, 2013. Thus, according to the audited FY 2012 results Gross and EBITDAR margins are higher by 1 bp, net income margin - by 3 bps. EBITDA and EBIT margins remained unchanged.

4Q and 12M 2012 Key Operating Results

4Q 2012

4Q 2011

Growth Rate

12M 2012

12M 2011

Growth Rate

Number of opened stores, NET

765

542

n/a

1,575

1,254

n/a

convenience stores

523

413

n/a

1,040

1,004

n/a

hypermarkets

21

17

n/a

36

40

n/a

magnit family

9

0

n/a

17

2

n/a

cosmetics stores

212

112

n/a

482

208

n/a

Total number of stores

6,884

5,309

n/a

6,884

5,309

n/a

convenience stores

6,046

5,006

n/a

6,046

5,006

n/a

hypermarkets

126

90

n/a

126

90

n/a

magnit family

20

3

n/a

20

3

n/a

cosmetics stores

692

210

n/a

692

210

n/a

Selling space, thousand sq. m.

2,549.26

1,970.16

29.39%

2,549.26

1,970.16

29.39%

convenience stores

1,977.46

1,637.83

20.74%

1,977.46

1,637.83

20.74%

hypermarkets

387.62

278.45

39.21%

387.62

278.45

39.21%

magnit family

24.36

3.80

n/a

24.36

3.80

n/a

cosmetics stores

159.83

50.09

n/a

159.83

50.09

n/a

Number of customers, million

549.44

445.77

23.26%

2,033.43

1,644.43

23.66%

convenience stores

497.07

415.46

19.64%

1,863.62

1,550.28

20.21%

hypermarkets

39.47

26.81

47.22%

137.69

87.97

56.53%

magnit family

4.34

0.82

n/a

8.87

2.20

n/a

cosmetics stores

8.56

2.68

n/a

23.25

3.98

n/a

LFL Results

LFL growth 4Q 2012 - 4Q 2011

Convenience stores

Hypermarkets

Total

Average ticket (excluding VAT), RUR

7.60%

6.19%

7.83%

Traffic

0.38%

4.93%

0.62%

Revenue, RUR

8.01%

11.43%

8.50%

LFL growth 12M 2012 to 12M 2011

Convenience stores

Hypermarkets

Total

Average ticket (excluding VAT), RUR

5.73%

3.23%

5.63%

Traffic

(0.46)%

2.07%

(0.35)%

Revenue, RUR

5.25%

5.36%

5.26%

4Q and FY 2012 Key Financial Results

4Q 2012

4Q 2011

Growth Rate

2012

2011

Growth Rate

Net sales, mn RUR

129,176.09

95,518.36

35.24%

448,661.13

335,699.95

33.65%

convenience stores

102,481.13

79,660.18

28.65%

364,236.40

287,731.79

26.59%

hypermarkets

22,881.23

14,925.24

53.31%

75,418.70

46,185.07

63.30%

magnit family

1,583.85

286.17

n/a

3,098.58

797.71

n/a

cosmetics stores

2,207.63

628.66

n/a

5,732.51

892.82

n/a

wholesale

22.24

18.11

22.81%

174.93

92.55

89.01%

Net sales, mn USD

4,156.69

3,058.51

35.91%

14,429.65

11,423.26

26.32%

convenience stores

3,297.68

2,550.73

29.28%

11,714,42

9,790.99

19.64%

hypermarkets

736.28

477.91

54.06%

2,425.58

1,571.59

54.34%

magnit family

50.97

9.16

n/a

99.66

27.14

n/a

cosmetics stores

71.04

20.13

n/a

184.37

30.38

n/a

wholesale

0.72

0.58

23.42%

5.63

3.15

78.64%

Gross profit, mn RUR

35,752.28

25,502.03

40.19%

119,051.79

81,663.45

45.78%

Gross profit, mn USD

1,150.45

816.58

40.89%

3,828.89

2,778.86

37.79%

Gross margin, %

27.68%

26.70P/o

n/a

26.53%

24.33%

n/a

EBITDAR, mn RUR

17,694.44

12,386.08

42.86%

57,770.83

34,636.97

66.79%

EBITDAR, mn USD

569.38

396.60

43.56%

1,858.00

1,178.63

57.64%

EBITDAR margin, %

13.70%

12.97%

n/a

12.88%

10.32%

n/a

EBITDA, mn RUR

14,636.97

10,317.10

41.87%

47,380.48

27,604.14

71.64%

EBITDA, mn USD

470.99

330.35

42.57%

1,523.83

939.32

62.23%

EBITDA margin, %

11.33%

10.80%

n/a

10.56%

8.22%

n/a

EBIT, mn RUR

11,508.45

7,946.76

44.82%

36,110.82

19,624.21

84.01%

EBIT, mn USD

370.32

254.46

45.54%

1,161.38

667.78

73.92%

EBIT margin, %

8.91%

8.32%

n/a

8.05%

5.85%

n/a

Net profit, mn RUR

8,326.02

5,324.81

56.36%

25,117.17

12,303.84

104.14%

Net profit, mn USD

267.92

170.50

57.14%

807.81

418.68

92.94%

Net profit margin, %

645%

5.57%

n/a

5.60P/o

3.67%

n/a

Note: net revenue in USD terms is calculated using the daily exchange rate.