Magnit Opens New Distribution Center in Surgut

Press-release | Krasnodar | February 26, 2021.

Magnit Opens New Distribution Center in Surgut

Krasnodar, Russia (February 26, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces the launch of a distribution center in Surgut. The DC will serve about 400 Magnit stores in Khanty-Mansi Autonomous District-Yugra and Yamalo-Nenets Autonomous District.

The distribution center has an area of over 30,000 sq. m and includes a dry storage warehouse, a space for storing alcoholic beverages, an area for fruits, vegetables, and fresh products, a warehouse with built-in cooling and banana ripening chambers, an administrative and service building, a recycling shop, as well as a motor transport enterprise building with a repair area, a car wash, and refueling and maintenance centers. The DC has 25,500 storage slots, which the Company plans to use to accommodate 4,200 SKUs. Its motor transport enterprise will have a fleet of around 120 trucks. The new DC was constructed under a Build-to-Rent arrangement.

Until now, Magnit stores in Khanty-Mansi and Yamalo-Nenets autonomous districts were served from the warehouse hub in Tyumen via long-distance delivery. The launch of the new distribution center in Surgut will ensure reliable and uninterrupted delivery to stores located within these regions as well as significantly lower cost and shorter lead time.

The logistics hub was automated to the maximum possible extent. For instance, it utilizes automatic ordering and product slotting systems, while time slotting helps in choosing the best time for a supplier to arrive for unloading. For quality assurance purposes, acceptance of fresh products is done remotely: experts from the headquarters assess the delivered items using video cameras and other advanced tools. A Pick-by-Voice solution has been implemented in the warehouse in order to decrease the time required to assemble an order and the costs associated with handling. Products are stored and dispatched using modern warehousing equipment and machinery. In addition to that, the quality of goods is monitored in real time: the distribution center is fitted with a remote temperature control system, while during delivery to the stores, temperature of products inside the truck is tracked using special sensors. On top of that, the warehouse is equipped in accordance with all applicable sanitary and hygienic standards.

"The distribution center in Surgut is strategically important for us. It will help us significantly reduce delivery distance, which means increased availability and freshness of products on our shelves. In addition to that, the DC forms a solid foundation for the future development of our chain's stores in Khanty-Mansi autonomous district and neighboring regions,"-commented Maria Dei, Magnit's Supply Chain Director.

For further information, please contact:

Dmitry Kovalenko

Director for Investor Relations

Email: [email protected]

Office: +7 (861) 210-48-80

Dina Chistyak

Director for Investor Relations

Email: [email protected]

Office: +7 (861) 210-9810 x 15101

Media Inquiries     Twitter

Email: [email protected]    @MagnitIR

Note to editors:

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, 2020, Magnit operated 38 distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) in 3,752 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS 16 management accounts results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 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.

Forward-looking statements:

This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.