Press Release

Krasnodar

February 16, 2018

As a follow-up to the sale of 29.1% stake in Magnit to subsidiary company of VTB Bank (PJSC) announced earlier today, Sergey Nikolaevich Galitskiy would like to make an official statement.

The deal structure assumes payment of the entire purchase price in cash at the date of closing after receiving the necessary approval from the Federal Antimonopoly Service of Russia. The deal is executed by a private individual who is a Russian citizen, therefore taxes from the share sale shall be paid to the budget of the Russian Federation (to the budget of the Krasnodar Krai and to the budget of the City of Krasnodar). Sergey Galitskiy does not have indebtedness to VTB Group and its affiliates.

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Company description:

Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of December 31, 2017, Magnit operated 37 distribution centers and 16,350 stores (12,125 convenience, 243 hypermarkets, 208 Magnit Family stores and 3,774 drogerie stores) in 2,709 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS management accounts for 2017, Magnit had revenues of RUB 1,143 billion and an EBITDA of RUB 92 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.