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OJSC MAGNIT: Audited FY 2012 Financial Results

Press-release 
Krasnodar 
March 22, 2013 
OJSC "Magnit" announces audited FY 2012 results 
Krasnodar, March 22, 2013: 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 in dollar terms amounted to 26%: from US$
11,423.26 million to US$ 14,429.65 million.[1] 
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 (US$ 2,778.86
million) to 119,051.79 million RUR (US$ 3,828.89 million). 
EBITDA increased by 71.64% from 27,604.14 million RUR (US$ 939.32
million) in 2011 to 47,380.48 million RUR (US$ 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 (US$ 807.81 million) vs. 12,303.84 million RUR (US$ 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. 
------------------------
[1] Based on the average exchange rate for 4Q 2012 of 31.0767 RUB per 1 USD,
4Q 2011 - 31.2304 RUB per 1 USD, 12М 2012 - 31.0930 RUB per 1 USD, 12M 2011 -
29.3874 RUB per 1 USD 
4Q and 12M 2012 Key Operating Results 
                                         4Q           4Q      Growth        
  12M          12M      Growth 
                                       2012         2011        Rate        
 2012         2011        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[2]             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 
               hypermarkets3           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 
------------------------
[2] On May 14, 2012 the Company announced the reformatting of 5
hypermarkets to Magnit Family stores. Detailed information can be obtained
from the press-release
http://www.magnit-info.ru/upload/iblock/f08/f081571bdef1933b951446680a26bf40.pdf 
LFL Results 
LFL growth 4Q 2012 - 4Q 2011[3]                      Convenience            
Hypermarkets                Total 
                                                   stores 
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[4]                   Convenience            
Hypermarkets                Total 
                                                   stores
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% 
------------------------
[3] Based on 3,833 convenience stores which were opened by April 1,
2011, and 50 hypermarkets which were opened by February 1, 2011, i.e. based on
the result of the convenience stores that had been operating for not less than
six months and hypermarkets that had been operating for not less than eight
months and have achieved a mature level of sales 
[4] Based on 2,465 convenience stores which were opened by July 1,
2010, and 25 hypermarkets which were opened by May 1, 2010, i.e. based on the
result of the convenience stores that had been operating for not less than six
months and hypermarkets that had been operating for not less than eight months
and have achieved a mature level of sales 
4Q[5] and FY 2012 Key Financial Results 


                                      4Q              4Q        Growth          
                        Growth


                               2012           2011          Rate         
2012         2011          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 US$               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 US$            1,150.45          816.58        40.89%     
3,828.89     2,778.86        37.79%
Gross margin, %                   27.68%          26.70%           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 US$                   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 US$                    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 US$                      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 US$                267.92          170.50        57.14%       
807.81       418.68        92.94%
Net profit margin, %               6.45%           5.57%           n/a        
5.60%        3.67%           n/a 
Note: net revenue in US$ terms is calculated using the daily
exchange rate.
------------------------
[5] Unaudited results 
For further information, please contact: 
Timothy Post                                                Director, Investor 
Relations 
                                                        e-mail: 
Post@gw.tander.ru 
                                                        Tel. in Krasnodar 
+7 (861) 277-45-54, 210-98-10 ext. 7600 
                                                        Mob.: +7 (961) 508-06-61 
                                                        Direct line for 
investors only: +7 (861) 277-45-62 
Dina Svishcheva                                             Deputy Director, 
Investor Relations 
                                                        e-mail: 
Chistyak@gw.tander.ru 
                                                        Tel. in Krasnodar 
+7 (861) 277-45-54, 210-98-10 ext. 5101 
                                                        Mob.: +7-961-511-02-02 
                                                        Direct line for 
investors only: +7 (861) 277-45-62 
Company description: 
Headquartered in the southern Russia city of Krasnodar, Magnit (LSE
and MICEX: MGNT) is the holding company for a group of entities that operate
in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is
one of the leading food retail networks in Russia. As of December 31, 2012 the
chain consisted of 6,046 convenience stores, 126 hypermarkets, 20 "Magnit
Family" stores and 692 cosmetics stores (drogerie) in 1,605 cities and towns
throughout the Russian Federation. 
Approximately two-thirds of the Magnit's stores are located in
cities with a population of less than 500,000 inhabitants. Most of its stores
are located in the Southern, North-Caucasian, Central and Volga regions. The
Company also operates stores in the North-Western, Urals and Siberian regions. 
As of December 31, 2012 Magnit operated an in-house logistics
system consisting of 18 distribution centers, employing automated stock
replenishment systems and a fleet of 4,401 vehicles. 
In accordance with the audited IFRS consolidated financial
statements for 2012, Magnit recorded consolidated revenues of approximately
$14,430 million USD and a consolidated EBITDA of $1,524 million USD. 
END 
-0- Mar/22/2013 07:00 GMT
 
 
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