PJSC MAGNIT - Magnit in Forbes' World's Most Innovative Companies List

Press-release

Krasnodar

August 25, 2016

PJSC "Magnit" Has Been Included in the World's Most Innovative Companies Ranking by Forbes

Krasnodar, August 25, 2016: Public Joint Stock Company "Magnit", Russia's largest food retailer (the "Company"; MOEX and LSE: MGNT), has been included in the 100 World's Most Innovative Companies Ranking by the American edition of the Forbes business magazine.

Please be informed that "Magnit" retail chain was ranked 46^th in the 100 World's Most Innovative Companies List by the American edition of the Forbes business magazine. "Magnit" is the only Russian company in the list.

Forbes compiles the ranking relying on investors' ability to identify companies they expect to be innovative now and in the future.

The main criterion of the assessment is "innovation premium": the difference between the market capitalization of companies and a net present value of cash flows from existing businesses (based on a proprietary formula from Credit Suisse HOLT). The "Magnit" innovation premium amounts to 48.5%.

To be included in the ranking, companies need seven years of public financial data and $10 billion in market capitalization.

Please follow the link below to view the full list of companies included in the ranking:

http://www.forbes.com/innovative-companies/list/tab:rank

For further information, please contact:

Timothy Post	Head of Investor Relations Email: [e-mail] Office: [phone] x 17600 Mobile: [phone] Direct Line: [phone]
Investor Relations Office	[e-mail] Direct Line: [phone] Website: ir.magnit.com/
Media Inquiries	Media Relations Department [e-mail]

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 June 30, 2016, Magnit operated 34 distribution centers and 12,888 stores (9,902 convenience, 398 hypermarkets and 2,588 drogerie stores) in 2,397 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2016, Magnit had revenues of RUB 522 billion and an EBITDA of RUB 52 billion. Magnit's local shares are traded on the Moscow 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.