Annual report of PJSC Magnit over the year 2024

PJSC Magnit Annual Report 2024

The Annual Report of Public Joint-Stock

Company Magnit for 2024 (hereinafter also

referred to as PJSC Magnit or the Company)

• Moscow Exchange listing rules;

• letter of the Bank of Russia No. IN-06-28/49

On Recommendations for Public Joint-Stock

(the Annual Report or the Report) was

prepared based on the information available

to PJSC Magnit and its subsidiaries (hereinafter together referred to as the Group or Magnit Group) as at 31 December 2024, unless otherwise implied by the meaning or content of the information provided.

This Annual Report was drafted in accordance with applicable laws, is addressed to a wide range of stakeholders and reflects the key performance results of Magnit for 2024 in such matters as strategic and corporate governance as well as financial and operating results.

The Report meets the following requirements and guidelines:

• regulations of the Central Bank of the Russian Federation (the Bank of Russia) No. 714-P

  On Disclosing Information by Issuers

  of Issue-Grade Securities dated 27 March 2020;

• letter of the Bank of Russia No. 06-52/2463 On the Corporate Governance Code

  dated 10 April 2014;

• letter of the Bank of Russia No. IN-06-28/102 On Disclosing the Corporate Governance Code Compliance Report in a Public Joint-Stock Company's Annual Report dated

  27 December 2021;

  Companies to Disclose Non-Financial Information Regarding Their Operations dated 12 July 2021;

• Federal Law No. 261-FZ On Energy Saving

and Improving Energy Efficiency and Amendments to Certain Legislative Acts of the Russian Federation dated 23 November 2009.

Financial indicators referred to in this Annual Report are disclosed based on Magnit's consolidated financial statements under the International Financial Reporting Standards (IFRS) for 2024

as audited by Centre for Audit Technologies

and Solutions. The Annual Report should be read as a whole taking into account the content of all sections as well as the notes and the explanations herein. In addition to official information

on the activities of Magnit, this Annual Report contains information obtained from third parties and from sources which Magnit finds to be reliable.

However, the Company does not guarantee the accuracy of this information, as it may be abridged or incomplete.

How to use the online version of the Report

Back to Contents

Navigation to the Report section Link to online materials

Link to more information in the Report

Disclaimer

Forward-looking statements contained

in this Annual Report, including all statements concerning the Company's intentions, opinions, or current expectations regarding its

performance, financial position, liquidity, growth prospects, strategy and the industry in which Magnit operates, are not based on actual circumstances. Such terms as "assume," "believe", "expect", "predict", "intend", "plan", "project", "consider" and "could" along

with other similar expressions as well

as those used in the negative usually indicate

the predictive nature of the statement.

Forward-looking statements are characterised by risks and uncertainties since they relate

to events and depend on circumstances that may not occur in the future. Magnit offers no guarantees that the actual results, scope, or indicators of its performance

or the industry in which the Company operates will correspond to the results, scope, or performance indicators clearly expressed or implied in any forward-looking statements contained in this Annual Report or elsewhere.

The recipients of the information

presented in the Annual Report should not base

their assumptions solely on it. Magnit is not liable for any losses that any person may incur due

to the fact that the above person relied on forward-

looking statements.

Except as expressly envisaged by applicable law,

the Company assumes no obligation to distribute

or publish any updates or changes to forwardlooking statements reflecting any changes in expectations or new information as well as subsequent events,

conditions, or circumstances.

Supply chain

128

Company

overview

Who we are

CEO's statement Key highlights Business model

Geographical coverage

Developing Magnit

umbrella brand

Investment case

Our achievements

Magnit's history: 30 years

of serving customers

8

10

14

16

19

20

22

24

30

Sustainable

development

Our approach

to sustainability management

138

Sustainability 140

Strategy 2025

Caring for people 144

Corporate

governance

Corporate governance

framework

General Meeting of Shareholders

150

152

Board of Directors

Management Board Corporate Secretary Internal control and risk

management system

Business ethics and anti-corruption

Shareholder and investor engagement

153

155

156

156

162

166

Appendices

Report on compliance

with the principles and recommendations of the Corporate Governance Code

Major transactions

176

206

Related party transactions 206

Resource consumption 206

Glossary 207

Contacts 209

Developing Magnit umbrella brand

20

Creating an enhanced customer journey

34

Introducing technologies

to increase customer loyalty

56

i

For the online version

of the Report, see

the Company's official website magnit.com

01

Who we are 8

CEO's statement 10

Key highlights 14

Business model 16

Geographical coverage 19

Developing Magnit umbrella brand

20

Investment case 22

Our achievements 24

Magnit's history: 30 years 30

of serving customers

About the Report

Strategy report 02

Logistics

Magnit boasts one of the largest

logistics network in Russia. The Company is continuously developing its own logistics infrastructure while also

testing new logistics formats. Today, Magnit operates 51 distribution centres, warehousing facilities with a total area of over 2 mln sq. m, and a fleet of around 7,300 trucks, making it one of Russia's

largest own fleets.

Own production and private labels

51

distribution centres

Magnit develops its own food production

capacities. It operates 21 production facilities, including seven agricultural and 14 dry food and confectionery complexes.

Magnit is actively developing private labels to offer unique products with excellent value for money. Our private label portfolio

currently features over 60 brands and around 5,700 SKUs across various product groups and price segments. Available only in Magnit stores, private label items are made predominantly by Russian businesses

and by Magnit's in-house facilities.

2 mln sq. m

total area of warehousing

facilities

7,300

trucks

The Magnit Group includes, inter alia,

PJSC Magnit and its subsidiaries JSC Tander,

JSC DIXY Ug, Selta LLC, and Retail Import LLC.

>60

brands in private label portfolio

~5,700

private label SKUs

For the list of the key Group companies, see

our consolidated financial statements.

Our formats

years

Our multiformat model includes convenience

and drogerie stores, supermarkets,

and pharmacies under the Magnit and DIXY brands. Additionally, we operate the First Choice chain of technologically advanced hard discounters. Customers can also shop

across the Company's formats online, choosing

between regular or express delivery options.

putting

our customers at the heart of everything we do

For Magnit multiformat model, see the Business

model and

Format overview sections.

Magnit is one of Russia's largest

retailers with a total selling space of 10,934 thous. sq. m

and 31,483 stores of various formats operating in 72 regions of Russia

and in the Republic of Uzbekistan.

Magnit multiformat

model

i

On 5 March 2024, Magnit celebrated its 30th anniversary.