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Magnit
Annual Report 2012

MGNT · LSE Industrials
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FY2012 Annual Report · Magnit
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AANNNNEEXX  TTOO  22001122  AANNNNUUAALL  RREEPPOORRTT  OOFF  OOJJSSCC  ““MMAAGGNNIITT””  

ANNEX  №  1:  Consolidated  financial  statements  of  OJSC  “Magnit”  for  the  year 
ended on December 31, 2012. 
ANNEX № 2: Consolidated financial statements of OJSC "Magnit" for the year 2012 
prepared  in  accordance  with  the  Federal  law  N  208-FZ  "On  consolidated  financial 
statements". 
ANNEX  №  3:  Accounting  report  of  JSC  “Tander”  for  the  year  2012  prepared  in 
accordance with RAS. 
ANNEX  №  4:  Accounting  report  of  OJSC  “Magnit”  for  the  year  2012  prepared  in 
accordance with RAS. 

  
 
  
 
11..  KKEEYY  FFIINNAANNCCIIAALL  AANNDD  OOPPEERRAATTIINNGG  RREESSUULLTTSS  

2012 Key Operating Results: 

Number of opened stores, NET 

Total number of stores,  

Selling space, thousand sq. m. 

Number of customers, million 

convenience stores 

hypermarkets 

Magnit Family1 

cosmetics stores 

convenience stores 

hypermarkets 

Magnit Family1 

cosmetics stores 

convenience stores 

hypermarkets 

Magnit Family 

cosmetics stores 

convenience stores 

hypermarkets 

Magnit Family 

cosmetics stores 

1,575 

1,040 

36 

17 

482 

6,884 

6,046 

126 

20 

692 

2,549.26 

1,977.46 

387.62 

24.36 

159.83 

2,033.43 

1,863.62 

137.69 

8.87 

23.25 

1 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 12М 2012 – 12М 20112 

Convenience stores  Hypermarkets  Total 

Average ticket (excl. VAT), RUR 

5.73% 

3.23% 

5.63% 

Traffic 

Sales, RUR 

(0.46%) 

2.07% 

(0.35%) 

5.25% 

5.36% 

5.26% 

2 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. 

 
 
                                                 
2012 Key Financial Results: 

Net sales, mn RUR 

Net sales, mn US$45 

Gross profit, mn RUR 

Gross profit, mn US$5 

Gross margin, % 

EBITDAR4, mn RUR. 

EBITDAR4, mn US$ 

EBITDAR4 margin, % 

EBITDA, mn RUR 

EBITDA, mn US$ 

EBITDA margin, % 

EBIT, mn RUR 

EBIT, mn US$ 

EBIT margin, % 

Net profit, mn RUR6 

Net profit, mn US$5 

Net profit margin, % 

Market capitalization, mn RUR7 

Market capitalization, mn USD8 

convenience stores3 

hypermarkets4 

Magnit Family4 

cosmetics stores4 

wholesale4 

convenience stores4 

hypermarkets4 

Magnit Family4 

cosmetics stores4 

wholesale4 

448 661,13 

364 236,40 

75 418,70 

3 098,58 

5 732,51 

174,93 

14 429,65 

11 714,42 

2 425,58 

99,66 

184,37 

5,63 

119 051,79 

3 828,89 

26,53% 

57 770,83 

1 858,00 

12,88% 

47 380,48 

1 523,83 

10,56% 

36 110,82 

1 161,38 

8,05% 

25 117,28 

807,81 

5,60% 

456,929.92 

14,990.75 

3 Management accounts 
4 Audited financial statements prepared in accordance with IFRS 
5 Based on the average exchange rate for 2012 of 31,9030 RUR per USD 1 
6  Based  on  consolidated  financial  statements  prepared  in  accordance  with  the  Federal  Law  No  208-FZ  as  of  27.07.2010  “On  Consolidated 
Financial Statements” 
7 CJSC «MICEX Stock Exchange» as of December 28, 2012 
8 Based on the exchange rate for December 28, 2012 of 32,0197 RUR per USD 1 

 
  
                                                 
22..  MMIISSSSIIOONN  

“We work hard to increase the prosperity of our customers by minimizing 

their expenditure on quality consumer goods through: 

- Efficient use of the Company's resources; 

- On-going improvements in technology; 

- Adequate compensation for our employees” 

 
33..  CCHHIIEEFF  EEXXEECCUUTTIIVVEE  OOFFFFIICCEERR’’SS  SSTTAATTEEMMEENNTT  

“2012 was the most successful year in Magnit’s history. 
There’s not really much more I can add, since the results speak for themselves.” 

Chief Executive Officer of OJSC “Magnit” 
Sergey Galitskiy 

 
 
 
 
 
 
 
 
44..  IINNFFOORRMMAATTIIOONN  OONN  TTHHEE  PPEERRSSOONN  IINN  TTHHEE  PPOOSSIITTIIOONN  OOFF  AA  SSOOLLEE  EEXXEECCUUTTIIVVEE  
BBOODDYY  

On  April  13,  2006  Sergey  Galitskiy  was  elected  as  a  Chief  Executive  Officer  by  the 
resolution of the Board of directors of April 12, 2006. On April 12, 2012 the Board of directors 
(minutes of 12.04.2012) concluded to prolongate the chief executive officer’s authorities for the 
new period.  

Biographical information of the person in the position of a sole executive body: 

Name: Sergey Galitskiy 
Date of birth: 14.08.1967 
Education:  Mr.  Galitskiy  graduated  from  Kuban  State  University  with  a  degree  in 

Economics in 1992. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 01.04.2004 – present day 
Organization: OJSC “Magnit” 
Position: member of the Board; 

2) Period: 13.04.2006 – present day 
Organization: OJSC “Magnit” 
Position: CEO; 

3) Period: 15.07.2010 – present day 
Organization: OJSC “Magnit” 
Position: Chairman of the Management board. 

Stockholding of CEO in the Company’s share capital: 38,6659% (as of 31.12.2012). 
Ordinary shares, owned by CEO: 38,6659% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the person in the position of a sole executive body during the reporting period: 

During  the  reporting  period  no  transactions  of  acquisition/disposal  of  the  Company’s 

shares were made. 

CCRRIITTEERRIIAA   AANNDD   AAMMOOUUNNTT   OOFF   RREEMMUUNNEERRAATTIIOONN   ((RREEFFUUNNDD   OOFF   CCHHAARRGGEESS))   OOFF  

TTHHEE  CCEEOO  PPAAIIDD  WWIITTHHIINN  TTHHEE  RREEPPOORRTTIINNGG  YYEEAARR  

Under Clause 6 of Regulations “On the chief executive officer of OJSC “Magnit”, ratified 
by the resolution of the annual general shareholders’ meeting of 24.06.2010 (minutes of meeting 
of  28.06.2010  and  previous  editions),  the  wage  rate  and  other  payments  set  upon  CEO  are 
determined by the labor contract agreed with CEO. 

Remuneration  of  CEO  of  OJSC  “Magnit”  paid 

in  2012  amounted 

to 

146,527,130.91 rubles. 

  
 
 
 
 
 
 
 
 
  
 
 
55..   IINNFFOORRMMAATTIIOONN   OONN   TTHHEE   CCOOLLLLEEGGIIAALL   EEXXEECCUUTTIIVVEE   BBOODDYY   MMEEMMBBEERRSS  
((MMAANNAAGGEEMMEENNTT  BBOOAARRDD))  aass  ooff  DDeecceemmbbeerr  3311,,  22001122 

Name: Sergey Galitskiy - Chairman of the Management board 
Date of birth: 14.08.1967 
Education:  Mr.  Galitskiy  graduated  from  Kuban  State  University  with  a  degree  in 

Economics in 1992. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 01.04.2004 – present day 
Organization: OJSC “Magnit” 
Position: member of the Board; 

2) Period: 13.04.2006 – present day 
Organization: OJSC “Magnit” 
Position: CEO; 

3) Period: 15.07.2010 – present day 
Organization: OJSC “Magnit” 
Position: Chairman of the Management board. 

Stockholding of the person in the Company’s share capital: 38, 6659% (as of 31.12.2012). 
Ordinary shares, owned by the person: 38, 6659% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the person in the position of Chairman of the management board during the reporting period: 

During  the  reporting  period  no  transactions  of  acquisition/disposal  of  the  Company’s 

shares were made. 

Name: Alexander Barsukov 
Date of birth: 08.07.1977 
Education:  higher  -  in  1998  graduated  from  Rostov  Law  Institute  of  Ministry  of  the 

interior of Russian Federation with a degree in law. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 02.10.2006 – 15.07.2008 
Organization: JSC “Tander”  
Position: Naberezhnye Chelny Branch Manager; 

2) Period: 16.07.2008 –  16.12.2012 
Organization: JSC “Tander” 
Position: Hypermarkets sales director; 

3) Period: 15.07.2010 – present day 

  
 
 
 
 
 
 
 
 
 
 
 
Organization: OJSC “Magnit” 
Position: Member of the Management Board; 

4) Period: 17.12.2012 - present day 
Organization: JSC “Tander” 
Position: Director of hypermarkets sales department; 

Stockholding of the person in the Company’s share capital: 0.0026% (as of 31.12.2012). 
Ordinary shares owned by the person: 0.0026% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the person in the position of the management board member during the reporting period: 

№  

Date of 
transaction 

1 

2 

16.01.2012 

28.12.2012 

Type of 
transaction 
Acquisition of 
securities 
Acquisition of 
securities 

Quantity of 
securities 

1 000 

1 050 

Description of securities 

Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares  

Name: Marina Ivanova 
Date of birth: 02.01.1964 

Education: higher - in 1990 graduated from Lenin Tadjik State University, chemistry and 

biology teacher. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 04.03.2002– 31.08.2007  
Organization: JSC "Tander" 
Position: Purchasing Director (Head Office); 

2) Period: 01.09.2007 – 11.08.2008 
Organization: JSC "Tander" 
Position: Corporate Purchasing Director (Head Office); 

3) Period: 12.08.2008– present day 
Organization: JSC "Tander" 
Position: Business Director; 

4) Period: 12.10.2012 – present day 
Organization: OJSC "Magnit" 
Position: Member of the Management Board; 

Stockholding of the person in the Company’s share capital: 0.0061% (as of 31.12.2012). 
Ordinary shares, owned by the person: 0.0061% (as of 31.12.2012). 
Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the person in the position of the management board member during the reporting period: 

 
 
 
 
 
 
 
 
 
 
 
№  

Date of 
transaction 

1 

2 

3 

4 

5 

6 

7 

8 

9 

16.01.2012 

18.01.2012 

28.02.2012 

29.02.2012 

19.03.2012 

18.04.2012 

18.04.2012 

17.05.2012 

01.06.2012 

10 

06.06.2012 

11 

21.06.2012 

12 

17.07.2012 

13 

01.08.2012 

14 

17.08.2012 

15 

20.08.2012 

16 

25.09.2012 

17 

23.10.2012 

18 

29.10.2012 

19 

22.11.2012 

20 

24.12.2012 

21 

28.12.2012 

Type of 
transaction 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Disposal of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 

Quantity of 
securities 

1 340 

30 

165 

3 

26 

42 

69 

30 

149 

1 

52 

5 

135 

117 

48 

46 

44 

97 

44 

41 

1 500 

Description of securities 

Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 

 
 
Name: Ilya Sattarov 
Date of birth: 13.07.1976 
Education:  higher  -  in  1998  graduated  from  Kuban  State  University  with  a  degree  in 

Economics. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 22.01.2007– 01.07.2007  
Organization:  Commercial  joint-stock  bank  “Bank  Societe  Generale  Vostok”,  joint-

stock company 

Position: CEO advisor for business development in Krasnodar (central office); 

2) Period: 02.07.2007 – 07.12.2010 
Organization:  Commercial  joint-stock  bank  “Societe  Generale  Vostok  Bank”,  joint-

stock company  

Position: CEO (JSC “BSGV” Krasnodar Branch); 

3) Period: 08.12.2010 – 31.01.2011 
Organization: JSC “Tander” 
Position: Director for Assets Acquisition and Management (Head Office); 

4) Period: 01.02.2011 – 31.07.2011 
Organization: JSC “Tander” 
Position: Director for Transport (Transport Department);  

5) Period: 01.08.2011 – present day 
Organization: JSC “Tander” 
Position: Deputy CEO for Logistics (Head Office);  

6) Period: 12.10.2012 – present day 
Organization: OJSC “Magnit" 
Position: Member of the Management Board. 

Stockholding of the person in the Company’s share capital: 0.0022% (as of 31.12.2012). 
Ordinary shares, owned by the person: 0.0022% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the person in the position of the management board member during the reporting period: 

№  

Date of 
transaction 

1 

28.12.2012 

Type of 
transaction 
Acquisition of 
securities 

Quantity of 
securities 

1 500 

Description of securities 

Ordinary registered 
uncertified shares 

 
 
 
 
 
 
 
 
 
 
  
  
CCRRIITTEERRIIAA   AANNDD   AAMMOOUUNNTT   OOFF   RREEMMUUNNEERRAATTIIOONN   ((RREEFFUUNNDD   OOFF   CCHHAARRGGEESS))   OOFF   TTHHEE  
CCOOMMPPAANNYY’’SS   MMAANNAAGGEEMMEENNTT   BBOOAARRDD   MMEEMMBBEERRSS   PPAAIIDD   WWIITTHHIINN   TTHHEE   RREEPPOORRTTIINNGG  
YYEEAARR  

According to the Regulations on collegial executive body (Management Board) of OJSC 
“Magnit”  remuneration  of  a  Management  Board  member  consists  of  remuneration  under  a 
labor  contract  or  an  additional  agreement  to  it.  Management  Board  members  can  be 
remunerated every year from the amount of net profit according to the year accounting report. 
Payment  terms  and  order  shall  be  determined  by  the  Board  of  directors.  Salary  for  the  work 
within the Management Board according to a labor contract constitutes 50 000 rubles.  

Remuneration  to  the  Management  Board  members  of  OJSC  “Magnit”  paid  in  2012 
amounted  to  2,621,823.26  rubles  (the  amount  does  not  include  the  remuneration  received  by 
S. Galitskiy as a chief executive officer). 

 
66..  IINNFFOORRMMAATTIIOONN  OONN  TTHHEE  BBOOAARRDD  MMEEMMBBEERRSS  aass  ooff  DDeecceemmbbeerr  3311,,  22001122  

Khachatur Pombukhchan –  the Chairman of the Board 
Date of birth: 16.03.1974. 
Education:  higher  -  graduated  from  Kuban  State  University  with  a  degree  in  applied 
mathematics  in  1996;  from  Russian  Distance-Learning  finance  &  economics  institute  with  a 
degree in Economics in 2000. 

Positions held in the issuer and other companies in the last five years including plural 

offices 

1) Period: 02.03.2006 – 03.05.2008 
Organization: JSC “Tander” 
Position: Marketing director; 

2) Period: 29.11.2006 – 26.05.2009 
Organization: JSC “Digital Gallery” 
Position: member of the Board; 

3) Period: 09.01.2008 – 03.05.2008 
Organization: JSC “Tander” 
Position: first Deputy CFO (joint appointment); 

4) Period: 04.05.2008 – 30.06.2008 
Organization: JSC “Tander” 
Position: first Deputy CFO; 

5) Period: 04.05.2008 – 30.06.2008 
Organization: OJSC “Magnit” 
Position: Deputy CFO; 

6) Period: 19.06.2008 – 17.05.2012 
Organization: LLC “Magnit Finance” 
Position: CEO; 

7) Period: 25.06.2008 – 23.06.2010 
Organization: OJSC “Magnit” 
Position: member of the BOD; 

8) Period: 01.07.2008 – present day 
Organization: JSC “Tander” 
Position: CFO; 

9) Period: 01.07.2008 – present day 
Organization: OJSC “Magnit” 
Position: CFO; 

10) Period: 15.12.2008 – 01.04.2009 
Organization: LLC “Magnit – Nizhniy Novgorod” 
Position: member of the Board; 

 
 
 
 
 
 
 
 
 
 
 
11) Period: 13.12.2008 –24.02.2009 
Organization: LLC “Tandem” 
Position: member of the Board. 

12) Period: 24.06.2010 – present day 
Organization: OJSC “Magnit” 
Position: Chairman of the BOD. 

Stockholding of the person in the Company’s share capital: 0.0022% (as of 31.12.2012). 
Ordinary shares, owned by the person: 0.0022% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the Chairman of the BOD during the reporting period: 

№  

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

Date of 
transactio
n 

16.01.2012 

20.01.2012 

21.02.2012 

19.03.2013 

20.04.2012 

21.05.2012 

19.06.2012 

18.07.2012 

21.08.2012 

27.09.2012 

19.10.2012 

20.11.2012 

18.12.2012 

28.12.2012 

Type of 
transaction 

Quantity of 
securities 

Description of securities 

Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Disposal of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 
Acquisition of 
securities 

1 670 

280 

90 

75 

80 

95 

80 

125 

6 825 

70 

65 

65 

65 

1 887 

Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 

 
 
 
 
 
Andrey Arutyunyan 
Date of birth: 12.01.1969. 
Period:  higher  –  in  1993  graduated  from  Kuban  State  University  with  a  degree  in 

Economics. 

Positions held in the issuer and other companies in the last five years including plural 

offices: 

1) Period: 01.12.2003 – present day. 
Organization: OJSC “Magnit”. 
Position: first Deputy CEO; 

2) Period: 01.04.2004 – 24.06.2008. 
Organization: OJSC “Magnit”. 
Position: Chairman of the Board; 

3) Period: 01.10.2004 – 30.06.2009 
Organization: JSC «Tander». 
Position: Director of Development department; 

4) Period: 30.01.2006 – 01.04.2009. 
Organization: LLC “Magnit – Nizhniy Novgorod”. 
Position: Chairman of the Board; 

5) Period: 25.06.2008 – present day. 
Organization: OJSC “Magnit”. 
Position: member of the Board; 

6) Period: 13.12.2008 – 24.02.2009. 
Organization: LLC “Tandem”. 
Position: member of the Board. 

7) Period: 01.07.2009 – present day 
Organization: JSC «Tander». 
Position: Deputy chief executive officer in charge of development.  

Shareholding of the person in the issuer’s charter capital: 0.2038% (as of 31.12.2012). 
Ordinary shares owned by the person: 0.2038% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the BOD member during the reporting period: 

№  

Date of 
transactio
n 

1 

18.01.2012 

Type of 
transaction 

Quantity of 
securities 

Description of securities 

Acquisition 
securities 

of 

1 340 

Ordinary registered uncertified 
shares 

 
 
 
 
 
 
 
 
 
 
Valeriy Butenko  
Date of birth: 25.11.1965 
Education: higher – in 1988 graduated from Novorossiysk higher engineering sea 

school - navigator engineer. 

Positions held in the issuer and other companies in the last five years including plural 

offices: 

1)  Period: 01.03.2004- 31.07.2009 
Organization: JSC «Tander» 
Position: Director in charge of reviser and analytical job; 

2)  Period: 29.05.2005- 31.03.2009 
Organization: JSC «Tander» 
Position: Member of the Revision Committee; 

3)  Period: 01.04.2004- 24.06.2009 
Organization: OJSC “Magnit” 
Position: Chairman of the Revision Committee;  

4)  Period: 25.06.2009 – present day 
Organization: OJSC “Magnit” 
Position: Member of the Board of directors; 

5) Period: 01.08.2009- present day 
Organization: JSC «Tander» 
Position: Deputy chief executive officer in charge of reviser and analytical job.  

Shareholding of the person in the issuer’s charter capital: 0. 0798% (as of 31.12.2012). 
Ordinary shares owned by the person: 0. 0798% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares  made  by 

the BOD member during the reporting period: 

№  

Date of 
transactio
n 

1 

18.01.2012 

Type of 
transaction 

Quantity of 
securities 

Description of securities 

Acquisition 
securities 

of 

1 340 

Ordinary registered uncertified 
shares 

Sergey Galitskiy 
Date of birth: 14.08.1967 
Education:  higher  –  in  1992  graduated  from  Kuban  State  University  with  a  degree  in 

Economics 

1) Period: 01.04.2004 – present day 
Organization: OJSC “Magnit” 
Position: member of the Board; 

2) Period: 13.04.2006 – present day 

 
 
 
 
 
 
  
 
 
Organization: OJSC “Magnit” 
Position: CEO; 

3) Period: 15.07.2010 – present day 
Organization: OJSC “Magnit” 
Position: Chairman of the Management board. 

Stockholding of the person in the Company’s share capital: 38, 6659% (as of 31.12.2012). 
Ordinary shares, owned by the person: 38, 6659% (as of 31.12.2012). 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares,  made  by 

the BOD member during the reporting period: 

During  the  reporting  period  no  transactions  of  acquisition/disposal  of  the  Company’s 

shares were made. 

Alexander Zayonts 
Date of birth: 10.01.1967 
Education:  higher -  Moscow  Institute  of  Chemical  Engineering  n.a.  D.I.Mendeleev  – 

chemical process engineer. 

Positions held in the Company and other companies in the last five years including plural 

offices: 

1) Period: 04.2003 - 12.2007 
Organization: OJSC “M.Video Company” 
Position: vice-president, BOD Member; 

2) Period: 01.2008 – present day 
Organization: LLC "Domashniy Interier" 
Position: General Director; 

3) Period: 01.12.2009 – present day 
Organization: LLC "Obiedinennye resursy" 
Position: BOD member; 

4) Period: 24.06.2010 – present day 
Organization: OJSC "Magnit" 
Position: BOD member. 

Shareholding of the person in the Company’s charter capital: no share. 
Ordinary shares owned by the person: no share. 

Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares  made  by 

the BOD member during the reporting period: 

During  the  reporting  period  no  transactions  of  acquisition/disposal  of  the  Company’s 

shares were made. 

 
 
 
 
 
 
 
 
 
 
 
 
Alexey Makhnev 
Date of birth: 24.05.1976 
Education: higher - in 1998 graduated from Saint Petersburg University of 

economics and finance - Ph.D. in Economics  

Positions  held  in  the  Company  and  other  companies  in  the  last  five  years  including 

plural offices: 

1) Period: 12.2006 – 08.2007 
Organization: LLC “Deutsche Bank” 
Position: director, corporate finance governance. 

2) Period: 09.2007– 12.2008 
Organization: LLC “Morgan Stanley Bank” 
Position: vice president, investment banking department; 

3) Period: 12.2008 – 05.2009 
Organization: LLC “Morgan Stanley Bank” 
Position: executive director, investment banking department; 

4) Period: 05.2009– present day 
Organization: CJSC “VTB Capital” 
Position:  managing  director,  head  of  consumer  sector  and  retail  direction,  investment 

banking on global markets department; 

5) Period: 25.06.2009 – present day 
Organization: OJSC "Magnit" 
Position: member of the board of directors. 

Shareholding of the person in the issuer’s charter capital: no share. 
Ordinary shares owned by the person: no share. 
Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares  made  by 

the BOD member during the reporting period: 

During  the  reporting  period  no  transactions  of  acquisition/disposal  of  the  Company’s 

shares were made. 

Aslan Skhachemukov 
Date of birth: 22.08.1962 
Education:  higher  –  in  1987  graduated  from  Krasnodar  Polytechnic  Institute  of  the 

Order of Labour Glory - industrial engineer. 

Positions occupied in the Company and other companies in the last five years including 

plural offices: 

1) Period: 01.07.2004 – 15.10.2007 
Organization: OJSC "Kubanskiy Standart" 
Position: Chairman of the BOD; 

2) Period: 01.10.2007 – 10.03.2012 

 
 
 
 
 
 
 
 
 
Organization: JSC «Tander» 
Position: Deputy General Director; 

3) Period: 23.06.2011 – present day 
Organization: OJSC «Magnit» 
Position: member of the BOD; 

4) Period: 11.03.2012 – 10.03.2012 
Organization: JSC «Tander» 
Position: Deputy CEO for economic security and organizational issues. 

Shareholding of the person in the issuer’s charter capital: 0.0024% (as of 31.12.2012). 
Ordinary shares owned by the person: 0.0024% (as of 31.12.2012). 
Information  on  transactions  of  acquisition/disposal  of  the  Company’s  shares  made  by 

the BOD member during the reporting period: 

№  

1 

2 

Date of 
transactio
n 

16.01.2012 

28.12.2012 

Type of 
transaction 

Quantity of 
securities 

Description of securities 

Acquisition 
securities 
Acquisition 
securities 

of 

of 

670 

740 

Ordinary registered uncertified 
shares 
Ordinary registered uncertified 
shares 

CCRRIITTEERRIIAA  AANNDD  AAMMOOUUNNTT  OOFF  RREEMMUUNNEERRAATTIIOONN  ((RREEIIMMBBUURRSSEEMMEENNTT  OOFF  EEXXPPEENNSSEESS))  OOFF  
EEVVEERRYY   MMEEMMBBEERR   OOFF   TTHHEE   CCOOMMPPAANNYY’’SS   BBOOAARRDD   OOFF   DDIIRREECCTTOORRSS   PPAAIIDD   WWIITTHHIINN   TTHHEE  
RREEPPOORRTTIINNGG  YYEEAARR  

According to the Regulations “On the Board of Directors of OJSC “Magnit””, ratified by 
the resolution of the annual General Shareholders’ meeting of 24.06.2010 (minutes of meeting of 
28.06.2010),  remuneration  of  the  Board  members  is  paid  upon  the  resolution  of  general 
shareholders’ meeting in the form of remuneration for participation in the board operation and 
remuneration for the achieved results. 

Remuneration for participation in the board operation amounts to 120,000 (one hundred 

twenty thousand) rubles per month. 

Remuneration  to  the  independent  director  for  participation  in  the  board  operation 

amounts to 30,000 (thirty thousand) USD per year, additionally  

 - 2,000 (two thousand) US dollars for participation by personal presence in each meeting 

in the form of joint presence of the board,  

 -  500  (hundred)  US  dollars  for  participation  by  directing  the  written  opinion  for  each 
meeting  in  the  form  of  joint  presence  of  the  board,  or  for  participation  in  each  meeting  in 
absentee form.  

Year-end bonus, based on the operation results, is also paid to the members of the board 
in  addition  to  remuneration.  Fixed  amount  of  year-end  bonus  is  paid  to  the  members  of  the 
board  after  approval  of  appropriate  annual  financial  report  by  the  general  shareholders’ 
meeting of the Company. 

On May 28, 2012 the General shareholders´ meeting made a decision not to pay year-end 

bonus, based on the operation results (minutes of 28.05.2012) 

 
 
 
 
 
In 2012 upon the resolution of shareholders’ meeting of 28.05.2012 (minutes of meeting 
of  28.05.2012)  the  Board  members  were  paid  remuneration  for  participation  in  the  board 
operation  in  2011  in  the  amount  of  10,875,097.25  (ten  million  eight  hundred  seventy  five 
thousand ninety seven) rubles 25 kopecks. 

77..  RREEPPOORRTT  OOFF  TTHHEE  BBOOAARRDD  OOFF  DDIIRREECCTTOORRSS  OONN  22001122  OOPPEERRAATTIIOONNSS  

The  structure  of  the  Board  of  directors  (elected  by  annual  general  shareholders’ 

meeting on June 23, 2011, minutes of June 23, 2011): 

№  

Full name of a member of the board of directors 

Date of birth 

1.    Andrey Arutyunyan 

2.    Valeriy Butenko 

3.    Sergey Galitskiy 

4.    Alexander Zayonts 

5.    Alexey Makhnev  

6.    Khachatur Pombukhchan 

7.    Aslan Shkhachemukov 

12.01.1969 

25.11.1965 

14.08.1967 

10.01.1967 

24.05.1976 

16.03.1974 

22.08.1962 

The  structure  of  the  Board  of  directors  (elected  by  the  annual  general  shareholders’ 

meeting on May 28, 2012, minutes of May 28, 2012) was not changed. 

The  current  Board  of  directors  includes  four  independent  directors;  they  are  Valeriy 

Butenko, Alexander Zayonts, Alexey Makhnev, and Aslan Shkhachemukov. 

Khachatur  Pombukhchan  was  elected  a  Chairman  of  the  Board  of  directors  by  the 
unanimous resolution at the first Board meeting of 13.06.2012, Valeriy Butenko was appointed a 
Deputy Chairman and Andrey Arutyunyan was elected a Secretary of the Board. 

The  Board  of  directors  of  the  Company  operated  under  the  Law  “On  joint-stock 
companies”,  the  Charter  of  the  Company,  Regulations  of  the  Board  of  directors  of  OJSC 
“Magnit” and Regulations of the Committees of the Board of directors. 

According to the provisions of the corporate documents, during the reporting period the 
following  committees  of  the  Board  operated  to  provide  its  efficiency  and  prepare  the  most 
important issues attributed to the competence of the Board of directors: 

HR and Remuneration Committee of the Board of Directors: 

Full name of a member of the board of 
directors 

Alexey Makhnev 

Valeriy Butenko  

Alexander Zayonts 

Position in the committee 

chairman of the committee 

member of the committee 

member of the committee 

Audit Committee of the Board of Directors: 

Full name of a member of the board of 
directors 

Position in the committee 

№ 

1 

2 

3 

№ 

 
 
 
 
 
 
 
 
1 

2 

3 

Alexander Zayonts 

Alexey Makhnev 

Aslan Shkhachemukov 

chairman of the committee 

member of the committee 

member of the committee 

During  2012  the  Board  of  directors  held  16  meetings  and  examined  92  issues.  All 

meetings of the Board of directors were held in the form of joint presence. 

Main issues considered by the Board of directors in 2012: 

Date of 
meeting 

03.02.2012 

03.02.2012 

03.02.2012 

Considered issues 

Suggestions  on  the  issues  to  be  placed  on  the  agenda  of  the  annual 
shareholders’ meeting were considered. 
The nominees for election into the Board of directors were considered and put 
in the list at the annual shareholders’ meeting. 
The  nominees  for  the  auditor  position  were  considered  and  put  in  the  list  at 
the annual shareholders’ meeting. 

03.02.2012 

The decisions on approval of the related party transactions were adopted. 

07.03.2012 

The decisions on approval of the related party transactions were adopted. 

07.03.2012 

The Regulations on the information policy of OJSC “Magnit” were ratified in 
the new edition.  

26.03.2012 

The decision on approval of the related party transaction was adopted. 

26.03.2012 

26.03.2012 

The  decision  on  determination  of  the  main  business  priorities  of  OJSC 
“Magnit” was adopted. 
The decisions on early termination of the OJSC “Magnit” Management Board 
member and election of the OJSC “Magnit” Management Board member were 
adopted.  

03.04.2012 

The decision on calling of the annual shareholders’ meeting was adopted. 

03.04.2012 

The decisions on approval of the related party transactions were adopted. 

12.04.2012 

12.04.2012 

The  decision  on  prolongation  of  the  OJSC  “Magnit”  CEO’s  powers  was 
adopted.  
The  decision  on  disposal  of  the share in  the  charter  capital  of  LLC AgroTorg 
owned by OJSC “Magnit” was adopted.  

12.04.2012 

The decisions on approval of the related party transactions were adopted. 

20.04.2012 

20.04.2012 

20.04.2012 

The  annual  report  over  2011  financial  year  was  preliminarily  approved  and 
submitted for consideration of the general shareholders’ meeting. 
The  recommendations  to  the  general  shareholders’  meeting  on  the  profit 
distribution,  including  the  dividend  amount  on  OJSC  “Magnit”  shares  and 
procedure  of  its  payment,  and  losses  following  the  results  of  2011  financial 
year were approved. 
The  recommendations  to  the  general  shareholders’  meeting  on  the  dividend 
amount on OJSC “Magnit” shares and procedure of its payment following the 
results of the 1st quarter of 2012 financial year were approved. 

 
 
20.04.2012 

The decisions on approval of the related party transactions were adopted. 

20.04.2012 

20.04.2012 

The  decision  on  determination  of  the  price  of  the  transaction  the  approval  of 
which  as  major  related-party  transactions  is  included  to  the  agenda  of  the 
general shareholders’ meeting of OJSC “Magnit” was adopted.  
The  decision  on  determination  of  the  price  of  the  transaction  the  approval  of 
which  as  related-party  transactions  is  included  to  the  agenda  of  the  general 
shareholders’ meeting of OJSC “Magnit” was adopted.  

20.04.2012 

The payment amount for the auditor’s services was determined.  

17.05.2012 

The contract with the registrar was ratified in the new edition.  

17.05.2012 

The decisions on approval of the related party transactions were adopted. 

13.06.2012 

13.06.2012 

13.06.2012 

The Chairman of the Board of directors, the Deputy Chairman of the Board of 
directors and the Secretary of the Board of OJSC “Magnit” were elected. 
The  members  of  the  Audit  Committee  of  the  Board  of  directors  of  OJSC 
“Magnit” and its Chairman were elected. 
The  members  of  the  HR  and  Remuneration  Committee  of  the  Board  of 
directors of OJSC “Magnit” and its Chairman were elected 

13.06.2012 

The members of the Management Board were elected. 

13.06.2012 

The decisions on approval of the related party transactions were adopted. 

06.07.2012 

The  decision  on  determination  of  the  main  business  priorities  of  OJSC 
“Magnit” was adopted. 

06.07.2012 

The decisions on approval of the related party transactions were adopted. 

19.07.2012 

19.07.2012 

The  recommendations  to  the  general  shareholders’  meeting  on  the  dividend 
amount on OJSC “Magnit” shares and procedure of its payment following the 
results of the 2nd quarter of 2012 financial year were approved. 
The  decision  on  calling  of  the  extraordinary  shareholders’  meeting  was 
adopted. 

19.07.2012 

The decision on approval of the related party transaction was adopted. 

06.09.2012 

06.09.2012 

11.10.2012 

11.10.2012 

29.10.2012 

29.10.2012 

29.10.2012 

The Regulations on the information policy of OJSC “Magnit” were ratified in 
the new edition.  
The Regulations on the dividend policy of OJSC “Magnit” were ratified in the 
new edition.  
The  decision  on  determination  of  the  main  business  priorities  of  OJSC 
“Magnit” was adopted. 
The decisions on early termination of the OJSC “Magnit” Management Board 
members  and  election  of  the  OJSC  “Magnit”  Management  Board  members 
were adopted.  
The  decisions  on  securities  issue  (bonds  to  the  bearer  of  01,  02  and 03  series) 
were made. 

The Decisions on securities issue (bonds to the bearer of 01, 02 and 03 series) 
and the Prospectus were ratified. 

The  decision  on  approval  of  the  major  transaction  (several  associated 
transactions) on placement of the bonds to the bearer of 01, 02 and 03 series by 
open subscription was made. 

29.10.2012 

The decision on approval of the related party transaction was adopted. 

22.11.2012 

The decision on approval of the related party transaction was adopted. 

25.12.2012 

The  decision  on  payment  of  bonus  to  the  person  in  the  position  of  CEO  of 
OJSC “Magnit” following 2012 results was adopted. 

25.12.2012 

The decision on approval of the related party transaction was adopted. 

28.12.2012 

The  decision  on  approval  of  the  additional  agreement  to  the  contract  with  a 
person  exercising  the  sole  executive  body  powers  of  OJSC  “Magnit”  was 
adopted.  

28.12.2012 

The decision on approval of the related party transaction was adopted. 

Besides, within the reporting period the issues related to determination of the position of 
OJSC “Magnit” representative on realization of the voting rights on the Company’s stocks and 
shares  in  other  organizations  (companies)  were  examined  by  the  Board  of  directors  of  OJSC 
“Magnit”  in  accordance with  the  Clause  14.2  of the  Charter.  Thus,  the meetings  on  the issues 
concerning determination of the position of OJSC “Magnit” representative on realization of the 
voting rights on the Company’s shares of CJSC “Tander”, shares in LLC “Magnit Finance”, LLC 
“Tandem”,  LLC  “Alcotrading”  and  “AgroTorg”  were  held  in  February,  March,  April,  May, 
June, July, September, October, November, and December 2012. 

The management of the Company achieved the following results in 2012: 

1. Revenue of the Company increased by 33.65% from 335,699.95 million rubles in 2011 
to 448,661.13 million rubles in 2012. 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 26.32%: from US$ 11,423.26 million to US$ 14,429.65 million9. 

2.  During  2012  the  Company  added  1,575  stores  (1,040  convenience  stores,  36 
hypermarkets,  17  “Magnit  Family”  stores  and  482  cosmetics  stores).  The  total  store  base  as of 
December  31,  2012  reached  6,884  stores  (6,046  convenience  stores,  126  hypermarkets,  20 
“Magnit Family” stores and 629 cosmetics stores). Total selling space of the stores increased by 
29.39% from 1,970.16 thousand sq. m. to 2,549.26 thousand sq. m. 

3.  Number  of  customers  increased  by  23.66%  from  1,644.43  million  in  2011  to  2,033.43 

million in 2012. 

9 Based on the average exchange rate for 2012 of 31.0930 RUR per 1 US$, 2011 – 29.3874 RUR per 1 US$. 

 
 
 
 
 
 
                                                 
4. Sales of private label products as a % of sales in 2012 amounted to 13%, the number of 

private label SKUs in 2012 amounted to 613. 

5. In 2012 the Company opened four distribution centers: Lermontov (Stavropol region), 
Sterlitamak  (Republic  of  Bashkortostan),  Omsk  and  Tula.  Launch  of  the  new  distribution 
centers  improved  the  quality  of  service  in  the  North-Caucasian,  Volga,  Siberian  and  Central 
regions.  Total  space  of  18  distribution  centers  as  of  December  31,  2012  amounted  to  460,603 
thousand sq. m. 

6. During the reporting year the fleet of the Company’s vehicles increased by 495 trucks, 
total  number  of  vehicles  amounted  to  4,401  which  resulted  in  the  considerable  reduction  of 
transportation costs. 

On  May  30,  2012  LLC  “Selta”,  transportation  enterprise  of  “Magnit”  group  of 
companies,  was  named “Carrier  of  the  year -  2012”  in the  Southern federal  district in  the  “50 
and  more  vehicles”  category  by  ASMAP  (Association  of  International  Automobile  Carriers). 
The  leadership  is  supported,  among  other  factors,  by  significant  contribution  to  the 
international  operations  of  the  Russian  Federation,  the  greatest  number  of  international 
carriages  (over  5,000  rounds)  in  2011,  introduction  of  hundreds  of  new  trucks  to  the  global 
transportation and new job formation.  

7. In 2012 the Company increased the share of the products processed via its distribution 

centers from 82% in 2011 to 83% which is also one of the gross margin drivers. 

8.  The  Company was  actively  working with  its employees  increasing  their  loyalty  and 
developing corporate culture. In 2012 average number of the Company’s employees amounted 
to 140,198 out of which 96,249 are in-store personnel; 28,393 people are engaged in distribution; 
10,673  people  -  in  regional  branches  and  4,884  are  employees  of  the  head  office.  Average 
monthly salary in the Company in 2012 amounted to 22 858 rubles. 

As of December 31, 2012 total number of employees amounted to 181,429 people. Based 
on  the  publicly  available  information  the  management  of  the  Company  assumes  that  OJSC 
“Magnit” is the largest private employer in Russia. 

9. LFL revenue growth in 2012 vs. 2011 in ruble terms amounted to 5.26%, LFL average 

ticket increased by 5.63% and LFL traffic decreased by 0.35%. 

 
 
 
 
 
 
 
 
 
10.  Gross  margin  increased  from  24.33%  in  2011  to  26.53%  in  2012  primarily  due  to 
continued improvement of purchasing terms. 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). 

11.  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 ratio (in ruble terms) at the end of 2012 amounted to 1.1. 

12. Net income in 2012 increased by 104.14% and amounted to 25,117.2810 million RUR 
(US$ 807.81 million) vs. 12,303.84 million RUR (US$ 418.68 million) in 2011. Net income margin 
in 2012 amounted to 5.6%. 

In general, the Board of Directors of the Company considers the achieved financial and 

economic results positive and in line with 2012 targets. 

Following  the  results  of  the  conducted  work  the  Board  of  the  Company’s  directors 
recommends  the  annual  general  shareholders’  meeting  to  approve  the  activity  of  the 
Company’s management bodies during 2012 and to ratify 2012 annual report submitted for 
the meeting agenda. 

10  Based  on  consolidated  financial  statements  prepared  in  accordance  with  the  Federal  Law  No  208-FZ  as  of  27.07.2010  “On  Consolidated 
Financial Statements” 

 
 
 
 
 
 
 
 
                                                 
88..  MMAAIINN  22001122  CCOORRPPOORRAATTEE  EEVVEENNTTSS  

February 

The National Rating Agency affirmed individual credit rating “AA” of OJSC 
“Magnit” - very high reliability level 2.  

April 

Standards & Poors Rating Agency assigned the individual credit rating BB- 
of OJSC “Magnit”, Outlook Stable. 

The  new  membership  of  the  OJSC  “Magnit”  Board  of  directors  including 
four independent directors was formed by the annual general shareholders’ 
meeting. 

May 

The  decision  to  pay  dividends  following  the  results  of  2011  financial  year 
and the 1st quarter of 2012 financial year was adopted by the annual general 
shareholders’ meeting. 

The decisions on approval of major related party transactions were adopted 
by the annual shareholders’ meeting. 

The membership of the OJSC “Magnit” Management Board was formed by 
the Board of directors. 

The  Board  of  directors  formed  the  committees  of  the  BOD,  appointed  the 
chairman, deputy chairman and secretary of the BOD. 

The  OJSC  “Magnit”  Chief  Executive  Officer  was  elected 
administrative  office  of 
Entrepreneurs. 

the  Russian  Union  of 

the 
Industrialists  and 

to 

June 

August 

The  decision  to  pay  dividends  following  the  results  of  the  2nd  quarter  of 
2012 financial year was adopted by the extraordinary general shareholders’ 
meeting. 

September 

Within  one  day  OJSC  “Magnit”  placed  exchange-traded  bonds  of  BO-07 
series for a total amount of 5 billion rubles. 

Exchange-traded  bonds  of  BO-07  series  were  admitted  to  trading  in  the 
process  of  circulation  within  listing  procedure  by  inclusion  into  the 
quotation list “A” level 1 of CJSC “MICEX Stock Exchange”. 

October 

The decision on securities issue - bonds to the bearer of 01, 02, 03 series –was 
adopted by the BOD. 

December 

The  OJSC  “Magnit”  CEO  Sergey  Galitskiy  was  named  the  winner  of  the 
“Russian  leaders  in  corporate  governance”  award  for  the  Best  corporate 
manager  at  the  annual  Corporate  Governance  roundtable  of  the  Investor 
Protection Association (IPA). 
OJSC  “Magnit”  also  won  the  Award  for  the  Company  with  the  best 
corporate governance. 

 
  
99..  PPOOSSIITTIIOONN  OOFF  TTHHEE  CCOOMMPPAANNYY  IINN  IINNDDUUSSTTRRYY  

RRUUSSSSIIAANN  MMAARRKKEETT  

This  section  was  prepared  with  the  use  of  the  following  materials:  IA  Infoline,  public 
sources of companies.  

Retail turnover amounted to 21 319.9 billion RUR in 2012 which is 105.9% to the level of 2011 in 
terms  of  mass  of  commodities.  In  December  2012  turnover  increased  by  105%  compared  to 
December 2011 and amounted to 2 299.5 billion RUR. The key trend of September-October was 
food  retail  turnover  dynamics  in  Russia  remaining  under  the  level  of  1%.  However,  in 
November-December  2012  there was  a  recovery  and  the  dynamics  of  the  food  retail  turnover 
Russia amounted to 1.2% and 2% respectfully. 

Dynamics of the key figures of the consumer market in 2005-2012, % Y-o-Y

25

20

15

10

5

0

-5

-10

-15

18,7 19,6

21,6

20,5

18,7

16,7

14,4 14,4

17,9 17,6

16,5

15,1 15,1
13,8
11,8 12,3 12,1

15,4 16,1
14,8
13,4

12,5

15,8 15,8

16,7 15,9
15
13,8 13,3 14,1
11,9
10,7 10,4

12,7

10,5
8,4

13,3

13,4

11,2
9

10,1

11,3 10,8

9,3

7,2

10,5

8,2

5,4

0,3
0,4
0,2

-0,7

-1,2

11

12,3

10,7

9,5
8,4
7,3

7,4

8,1
6,9
5,7

3,7
2,2

0,9

3,7

7,6
5,1
6,4

8,7

5,7

5

7,9

3,4

1,3 0,8

11,1 10,8
9
6,7

7

9,7 9,1
7,6
7
5,2 4,6

3,2

7,9 7,5 8,4

5,9

3

4,8 4,5

1,4 1,3

5
0
Q
1

5
0
Q
2

5
0
Q
3

5
0
Q
4

6
0
Q
1

6
0
Q
2

6
0
Q
3

6
0
Q
4

7
0
Q
1

7
0
Q
2

7
0
Q
3

7
0
Q
4

8
0
Q
1

8
0
Q
2

8
0
Q
3

8
0
Q
4

9
0
Q
1

9
0
Q
2

9
0
Q
3

9
0
Q
4

0
1
Q
1

0
1
Q
2

0
1
Q
3

0
1
Q
4

0
1
0
2

1
1
Q
1

1
1
Q
2

1
1
Q
3

1
1
Q
4

1
1
0
2

2
1
Q
1

2
1
Q
2

2
1
Q
3

2
1
Q
4

2
1
0
2

Growth rate of retail turnover
Growth rate of food turnover
Growth rate of non-food turnover

-5,1

-4,4

-5,5

-8,6

-9,1

-9,3

-12,3

Source: IA Infoline 

Monthly dynamics of the retail turnover in Russia in 2005-2012 is provided in the diagram. The 
monetary  base  (broad  definition)  characterizing  money  supply  by  the  monetary  regulation 
agencies decreased by 0.6 trillion RUR within 11 months in 2012 (for the same period in 2011 – 
by 0.93 trillion RUR).  

Dynamics of retail turnover and monetary base in 2005-2012, bn RUR

Retail turnover (in current prices), bn RUR

Monetary base (in broad definition), bn RUR

2400

2200

2000

1800

1600

1400

1200

1000

800

600

400

10 000

9 000

8 000

7 000

6 000

5 000

4 000

3 000

2 000

1 000

0

5
0
n
a
J

5
0
r
p
A

5
0
l
u
J

5
0
t
c
O

6
0
n
a
J

6
0
r
p
A

6
0
l
u
J

6
0
t
c
O

7
0
n
a
J

7
0
r
p
A

7
0
l
u
J

7
0
t
c
O

8
0
n
a
J

8
0
r
p
A

8
0
l
u
J

8
0
t
c
O

9
0
n
a
J

9
0
r
p
A

9
0
l
u
J

9
0
t
c
O

0
1
n
a
J

0
1
r
p
A

0
1
l
u
J

0
1
t
c
O

1
1
n
a
J

1
1
r
p
A

1
1
l
u
J

1
1
t
c
O

2
1
n
a
J

2
1
r
p
A

2
1
l
u
J

2
1
t
c
O

Source: IA Infoline 

  
 
 
 
 
Dynamics of retail turnover in Russia in 2006-2012 

Period 

Turnover, bn RUR11As a  %12 to the corresponding period 

8 693,4 
FY 2006  
10 757,8 
FY 2007 
13 853,2 
FY 2008 
14 599,2 
FY 2009 
3 625,7 
1Q 
3 934,5 
2Q 
7 560,2 
1H 
4 203,8 
3Q 
4 704,6 
4Q 
16 499 
FY 2010 
4 180,1 
1Q 
4 568,3 
2Q 
8 748,4 
1H 
4 895,0 
3Q 
5 439,2 
4Q 
19 082,6 
FY 2011 
4 669,9 
1Q 
5 095,6 
2Q  
9 765,5 
1H 
3Q 
5 466,9 
December 20122 299,5 
6 087,5 
4Q 
21 319,9 
FY 2012 

of the preceding year 
113,9 
115,2 
113,0 
94,9 
102,2 
106,9 
104,6 
108,4 
107,4 
106,4 
105,0 
105,7 
105,4 
107,9 
109,0 
107,0 
107,6 
107,0 
107,3 
104,8 
105,0 
104,5 
105,9 

Source: data of the Federal State Statistics Service and the Ministry of Economic Development and Trade 

SSTTRRUUCCTTUURREE  OOFF  RREETTAAIILL  TTUURRNNOOVVEERR  BBYY  TTYYPPEESS  OOFF  PPRROODDUUCCTTSS  

Retail  turnover in  2012  increased by  5.9% compared  to  2011  and  amounted  to 21 319.9  billion 
RUR, at that consumption of food products increased by 3%, non-food – by 8.4%. 
Long-term  dynamics  and  structure  of retail  turnover  by  types  of  products  is  presented  in  the 
diagram. 

11 The data are updated according to the results of Rosstat survey of small business enterprises as of April 2011 
12 Dynamics of retail turnover in terms of mass of commodities 

 
 
 
                                                 
25

20

15

10

5

0

-5

-10

Dynamics of retail turnover by types of products in 2000-2012, %

20,4

19,1

13,9

13,5

13,3

11

10,5

7,6

9

7,5

5,4

10,1

9,3

8,6

10,3

9,7

8,8

7,7

16,8

16,1

15,1

15,1

14,1

12,8

12,1

11,4

10,5

8,7

11

5,9

12,6

8,5

15,1

13,6

11,5

5,7

7,6

7

6,3

5,1

-1,8

1,2

3,6

3,1

10,7

7,6

5,2

9,7

7

9,1

8,1

4,6

4,6

4,5

2,1

0,9

1,3

8,4

7,5

5,9

3

2,7

2000

2001

2002

2003

2004

2005

2006

2007

2008

2010

2011

1Q12

2Q12

3Q12

4Q12

2012

2009
-2,7

-5,1

-8,2

Total retail turnover

Food products

Alcohol drinks

Non-food

Source: IA Infoline 

In  December  2012  positive  dynamics  of  consumption  was  noted,  retail  turnover  in  December 
2012  increased  by  5%,  consumption  of  food  products  increased  by  2%,  non-food  –  by  7.8%. 
Herewith,  for  4Q  2012  retail  turnover  increased  by  4.5%,  consumption  of  food  products 
increased by 1.3%, non-food – by 7.5%. 
Note that the data of the Federal State Statistics Service for 2009-2012 and for preceding years 
are  not  fully  compatible  as  in  2002-2008  the  data  on  food  products  including  beverages  were 
provided by the Federal State Statistics Service without tobacco products but starting from 2009 
– with tobacco products. Therefore, the graph below provides the adjusted data on the share of 
food products (excluding tobacco products). 

Dynamics of share of food products in retail turnover in 2005-2012, %

50

49

48

47

46

45

44

5
0
n
a
J

5
0
r
p
A

5
0
l
u
J

5
0
t
c
O

6
0
n
a
J

6
0
r
p
A

6
0
l
u
J

6
0
t
c
O

7
0
n
a
J

7
0
r
p
A

7
0
l
u
J

7
0
t
c
O

8
0
n
a
J

8
0
r
p
A

8
0
l
u
J

8
0
t
c
O

9
0
n
a
J

9
0
r
p
A

9
0
l
u
J

9
0
t
c
O

0
1
n
a
J

0
1
r
p
A

0
1
l
u
J

0
1
t
c
O

1
1
n
a
J

1
1
r
p
A

1
1
l
u
J

1
1
t
c
O

2
1
n
a
J

2
1
r
p
A

2
1
l
u
J

2
1
t
c
O

Share of food products in retail turnover (excl. tobacco products), %
Share of food products in retail turnover (incl. tobacco products), %
Polynomial (Share of food products in retail turnover (incl. tobacco products), %

Source: IA Infoline 

Since  the  beginning  of  2012  due  to  outstripping  sales  growth  rates  of  non-food  products  the 
share  of  food  products  continued  to  demonstrate  the  tendency  towards  the  decline  and 
approached  the  pre-crises  level  in  August-December  2012.  At  that,  in  2012  the  share  of  food 
products amounted to 46.5% vs. 47.7% for 2011. 

 
 
 
Structure of retail turnover by groups of products in 2002-201213 

Figures 
Retail turnover 
food products 
non-food products 
share of food products, % 
share of non-food products, % 

2002  2003  2004  2005  2006  2007  2008  2009  2010 
3765  4530  5642  7042  8712  10869  13915  14599  16499  19083  21319,9 2044,0  2299,5 
9913,8  966,8 
1822  2164  2671  3316  4061  5022  6510  7095  8035 
1078,5 
11406,1 1077,2  1221,0 
1944  2365  2972  3725  4651  5847  7405  7504  8464 
46,5 
48,4  47,8  47,3  47,1  46,6  46,2  46,8  48,6  48,7 
53,4 
51,6  52,2  52,7  52,9  53,4  53,8  53,2  51,4  51,3 
Source: data of the Federal State Statistics Service 

9122 
9961 
47,8 
52,2 

2012  Dec2011 Dec2012

47,3 
52,7 

46,9 
53,1 

2011 

Structure of retail turnover by groups of products in 2011-2012 (monthly), bn RUR 

2500

2000

1500

1000

689

681

749

765

792

808

835

876

873

903

898

672

673

716

720

740

743

764

777

771

798

796

500

0

food-products

non-foof products

1077

967

798

798

865

877

909

931

957

994

997

1023

1017

722

719

767

765

793

809

825

842

841

870

876

1221

1079

I-11

II-11 III-11 IV-11 V-11 VI-11 VII-11 VIII-

IX-11 X-11 XI-11 XII-11 I-12

II-12 III-12 IV-12 V-12 VI-12 VII-12 VIII-

IX-12 X-12 XI-12 XII-12

11

12

Source: IA Infoline 

In December 2012 the share of food products amounted to 46.9%, while the share of non-food 
products in the retail turnover in Russia amounted to 53.1% (in December 2011 – 47.3% and 
52.7% correspondingly). 

Structure of retail turnover by groups of products in 2011-2012 (monthly), %

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

50,6% 50,3% 51,1% 51,5% 51,7% 52,1% 52,2% 53,0% 53,1% 53,1% 53,0% 52,7% 52,5% 52,6% 53,0% 53,4% 53,4% 53,5% 53,7% 54,1% 54,2% 54,1% 53,7% 53,1%

49,4% 49,7% 48,9% 48,5% 48,3% 47,9% 47,8% 47,0% 46,9% 46,9% 47,0% 47,3% 47,5% 47,4% 47,0% 46,6% 46,6% 46,5% 46,3% 45,9% 45,8% 45,9% 46,3% 46,9%

I-11

II-11 I II-11 IV-11 V-11 VI-11 VII-
11

VI II-
11

IX-11 X-11 XI-11 XII-
11

I-12

II-12 III-12 IV-12 V-12 VI-12 VII-
12

VIII-
12

IX-12 X-12 XI-12 XII-
12

share of food products, %

share of non-food products, %

Source: IA Infoline 

SSTTRRUUCCTTUURREE  OOFF  RREETTAAIILL  TTUURRNNOOVVEERR  BBYY  TTYYPPEESS  OOFF  OORRGGAANNIIZZAATTIIOONNSS  

At the end of 2012 in terms of structure of retail turnover by types of organizations the trend of 
decrease of the share of marketplaces (by 1 percentage point), individual entrepreneurs (by 0.5 
percentage point) and small enterprises (by 0.5 percentage point) continued. At the same time 
the  share  of  large  and  mid  organizations  (mostly  these  are  retail  networks)  increased  by  2.1 
percentage points.  
In  2012  89.4%  of  the  retail  turnover  was  formed  by  trading  organizations  and  individual 
entrepreneurs  operating  outside  of  the  marketplace  and  the  share  of  retail  marketplaces  and 
fairs  amounted  to  10.6%  (in  2011  –  88.4%  and  11.6%  correspondingly).  Dynamics  of  the 
structure of retail turnover in Russia by types of organizations is presented in the diagram. 

13 For comparison with 2009-2011 data on the turnover and the share of food products in 2002-2008 are adjusted for tobacco products 

 
 
 
 
  
 
                                                 
100%

80%

60%

40%

20%

0%

Str ucture of formation of retail turnover in 2006-2012 by types of 
organizations, %

32,7

22,3

25,3

19,5

2006

37,3

22,2

25,2

15,3

2007

35,2

26,3

25,2

13,3

2008

34,5

25,8

26,1

13,6

2009

36,5

25,5

25,9

12,5

2010

38,2

25,5

24,7

11,6

2011

40,2

25,0

24,2

10,6

2012

Open markets

Individual entrepreneurs

Small enterprises

Large and mid enterprises

In December 2012 89.8% of retail turnover was formed by trading organizations and individual 
entrepreneurs operating outside of the marketplaces, the share of retail marketplaces and fairs 
amounted to 10.2% (in December 2011 – 88.9% and 11.1% correspondingly). 

Turnover of trading organizations and marketplaces in 2002-2012, bn RUR 

Source: IA Infoline 

Figure 
Retail turnover 
turnover of trading 
organizations 
sales of open markets 
share of trading organizations, 
% 
share of open markets, % 

2002  2003  2004  2005  2006  2007 
2012  Dec2011 Dec12 
3765  4529  5642  7038  8690  10866,2  13853,2 14599,2  16499  19082,6  21319,9 2044,0  2299,5 

2010 

2008 

2011 

2009 

2838,8  3451,1   4420,5  5558,2 6987  9214,5  12015,9  12613,7  14403,6  16697,3 19060,0  1817,1  2065,0 

926,2  1077,9  1254,1  1479,8  1703  1651,7  1837,3  1985,5  2095,4  2385,3  2259,9  226,9 

234,5 

75,4 

76,2 

77,9 

79,0 

80,4  84,8 

86,7 

86,4 

87,3 

88,5 

89,4 

88,9 

89,8 

24,6 

23,8 

22,1 

21,0 

19,6  15,2 

13,3 

11,5 
Source: data of the Federal State Statistics Service 

12,7 

10,2 

13,6 

11,1 

10,6 

Compared to December 2011 the turnover of trading organizations increased by 6% and sales of 
the marketplaces decreased by 3.1%.  

Dynamics of turnover of trading organizations and markets in 2011-2012 (monthly), trn RUR 

0,17

0,17

0,17

0,17

0,17

0,17

0,18

0,19

0,19

0,20

0,20

0,23

1,82

Sales of marketplaces, trn RUR

Turnover of trading organizations, trn RUR

0,17

0,17

0,17

0,17

0,18

0,18

0,19

0,19

0,20

0,20

0,20

0,21

2,30

1,19

1,18

1,30

1,32

1,36

1,38

1,42

1,47

1,45

1,50

1,49

1,35

1,35

1,46

1,47

1,52

1,56

1,59

1,64

1,64

1,69

1,69

2,5

2

1,5

1

0,5

0

I-11

II-11 III-11 IV-11 V-11 VI-11 VII-11 VIII-

IX-11 X-11 XI-11 XII-11 I-12

II-12 III-12 IV-12 V-12 VI-12 VII-12 VIII-

IX-12 X-12 XI-12 XII-12

11

12

Source: IA Infoline 

In December 2012 compared to November 2012 the turnover of trading organizations increased 
by 21.5% while the sales of the marketplaces grew by 15.2%. 

 
 
 
 
 
 
 
 
 
Structure of retail turnover in 2011-2012 (monthly), %

12,8% 12,5% 11,6% 11,4% 11,2% 11,2% 11,2% 11,3% 11,6% 11,6% 11,8% 11,1% 12,5% 11,2% 10,6% 10,6% 10,4% 10,5% 10,5% 10,6% 10,7% 10,6% 10,7% 10,2%

100%

90%

80%

70%
60%

50%

40%

30%
20%

10%

0%

I-11

II-11 III-11 IV-11 V-11 VI-11 VII-
11

VIII-
11

IX-11 X-11 XI-11 XI I-
11

I-12

II-12 III-12 IV-12 V-12 VI-12 VII-
12

VIII-
12

IX-12 X-12 XI-12 XII-
12

share of trading organizations, %

share of open markets, %

Source: IA Infoline 

The  continuing  decrease  of  share  of  open  markets  in  the  retail  turnover is  conditioned  by the 
decrease of their competitiveness and is accompanied by the reduction of their number and the 
total number of market slots, inter alia owing to the decrease in the level of use of market slots. 
Decrease of competitiveness of retail markets is explained by the improvement of the quality of 
the  product  mix  in  the  fresh  category  in  retail  chains,  by  the  stiffening  of  the  organizational 
conditions of the non-organized trade (conversion of retail markets to shopping centers) as well 
as by the fact that the dynamics of prices on food sold on retail markets generally repeats the 
trend of change of consumer prices on the peer food products sold in all retail formats, while 
the level of prices on most of food products sold at open markets was higher than in the retail 
chains.  The  main  reason  of  the  reduction  of  the  number  of  the  retail  markets  is  their  gradual 
transformation to the shopping centers (roofed shopping rows). Thus, in 2004-2012 the decline 
of the share of open markets in the retail turnover was accompanied by the reduction of their 
number (the most active reduction was in 2007 and 1Q 2008 after which the situation stabilized) 
due to liquidation or conversion to the shopping centers. 

Dynamics of the number of open markets in the Russian Federation and their share in the 
retail turnover in 2001-2012

6444

5780

25,3%

5926

24,6%

6016

23,8%

5831

5892

22,1%

21,0%

4771

19,6%

3728

15,3%

3497

3427

3159

13,3%

13,6%

12,7%

30%

25%

20%

15%

11,6%

2162

10,6%

10%

5%

0%

7000

6000

5000

4000

3000

2000

1000

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: IA Infoline 

As of January 1, 2013 there were 2 162 retail markets functioning on the territory of the Russian 
Federation. 997  markets were  closed  or  converted  to  the  shopping centers  and nonpermanent 
trading objects from January 1, 2012. To a greater extent the reduction in numbers was related 
to multipurpose markets (856 markets), merchandize markets (101 markets) and food markets 
(51  markets).  However,  the  number  of  agricultural  and  agricultural  cooperative  markets 
increased by 75 markets in 2012. As a result the breakdown of the retail markets by types has 
changed towards the increase of the share of agricultural and agricultural cooperative markets 
(from 7.9% as of January 1, 2012 to 15.0% as of January 1, 2013) on the back of the decrease of 

 
 
 
 
 
the share of multipurpose markets (from 73.2% to 67.3%), merchandise markets (from 8.8% to 
8.2%) and food products markets (from 4.2% to 3.7% correspondingly). The number of market 
slots  on  the  marketplaces  as  of  January  1,  2013  amounted  to  625.0  thousand,  their  number 
reduced by 271.2 thousand or 30% compared to January 1, 2012. The level of actual use of the 
market slots as of January 1, 2013 y-o-y decreased from 72.4% to 71.3%. The number of market 
slots also decreased on the multipurpose markets (from 72.6% to 71.6% correspondingly), radio 
and electrical household appliances (from 62.1% to 56.0%) and agricultural cooperative markets 
(from  54.6%  to  47.6%).  At  that  the  level  of  actual  use  of  the  market  slots  on  merchandise 
markets increase from 73.7% as of January 1, 2012 to 74.6% as of January 1, 2013, on agricultural 
markets – from 63.3% to 64.1% correspondingly, on specialized food markets and construction 
markets it has not essentially changed and as of January 1, 2013 amounted to 81.5% and 88.9% 
correspondingly. 
Individual  entrepreneurs  still  remain  the  principal  economic  entities,  but  the  share  of  their 
market slots decreases. As of January 1, 2013 entrepreneurs rented 471.1 thousand market slots 
or 75.4% of their total number (as of January 1, 2012 – 77.8%). The level of their use amounted to 
75.2% (as of January 1, 2012 – 76.2%). 

RREEGGIIOONNAALL  SSTTRRUUCCTTUURREE  OOFF  RREETTAAIILL  TTUURRNNOOVVEERR  

Regional structure of retail turnover in Russia is uneven: 11 constituent territories generated 
51.17% of retail turnover in 2012 (Moscow, Moscow region, Saint-Petersburg, Sverdlovsk 
region, Krasnodar region, Samara region, Republics of Tatarstan and Bashkortostan, Tyumen 
region, Chelyabinsk and Rostov regions), which is 0.62 p.p. lower than in 2011. 
In 2012 the share of Volga and North-Caucasian federal districts increased in retail turnover by 
federal districts of the Russian Federation, while the share of Southern and Siberian federal 
districts remained unchanged vs 2011; the share of Central, Urals, North-Western and Far-
Eastern federal districts decreased by 0.1-0.2 pp. 

Structure of retail turnover by federal 
districts of the Russian Federation in 
2011, %

Structure of retail turnover by federal districts 
of the Russian Federation in 2012, %

Southern
9,0%

North-
Caucasian
5,0%

North-Western
9,3%

Volga
18,1%

Urals
9,6%

Southern
9,0%

North-Caucasian
5,1%

Volga
18,3%

Urals
9,5%

North-Western
9,2%

Central
34,3%

Far-Eastern
3,9%

Siberian
10,8%

Central
34,1%

Far-Eastern
3,8%

Siberian
10,8%

In 2012 the share of Republic of Tatarstan increased by 0.3 pp., Rostov region – by 0.1 p.p. in the 
retail turnover by regions in the Russian Federation. At that the share of Chelyabinsk, Samara, 
Tyumen  regions,  Republic  of  Bashkortostan  and  Saint-Petersburg  remained  unchanged  vs. 
2011. The share of Moscow, Moscow and Sverdlovsk regions decreased, while the share of other 
chains in retail turnover grew by 0.62 pp. 

Source: IA Infoline 

 
 
 
 
 
 
Structure of retail turnover by subjects of the 
Russian Federation in 2012, %
Republic of 
Tatarstan
3,1%

Samara region
2,4%

Rostov region
2,9%

Republic of 
Tatarstan
3,0%

Chelyabinsk
2,2%

Ot her
48,8%

Structure of retail turnover by subjects of 
the Russian Federation in 2011, %

Rostov region
2,8%

Tyumen region
2,9%

Sverdlovsk 
region
4,1%

Saint-Petersburg
4,0%

Moscow region
6,2%

Republic of 
Tatarstan
2,8%

Samara region

2,4% Republic of 
Bashkortostan
3,0%

Moscow
17,4%

Chelyabinsk 
region
2,2%

Other
48,2%

Tyumen region
2,9%

Sverdlovsk region
4,0%

Saint-petersburg
4,0%

Moscow region
5,9%

Moscow
17,1%

Source: IA Infoline 

The share of other regions (apart from 11 largest) increased in 2003-2009 and in 2010 for the first 
time in 10 years there was a decline due to faster than average in Russia recovery of consumer 
demand in Moscow, Sverdlovsk region and Republics of Bashkortostan and Tatarstan. In 2011 
the share of other regions increased to 48.2%and in 2012 to 48.8%. 

Dynamics of share of 69 regions of the Russian Federation (apart from 11 
largest) in retail turnover in 2003-2012, %

47,1%

46,6%

47,8%

47,4%

48,8%

48,2%

44,7%

45,1%

45,4%

45,7%

50%

49%

48%

47%

46%

45%

44%

43%

42%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: IA Infoline 

In 2012 the most dynamic growth of share in the total retail turnover was demonstrated by the 
North-Western federal district (Saint-Petersburg in particular), North-Caucasian and Southern 
(however,  there  was  a  decline  compared  to  January-October  2011),  Siberian,  Volga  and  Urals 
federal districts, while the retail turnover in the Central federal district (Moscow in particular) 
and in the Far-Eastern federal district decreased in 2012. 

Regional structure of retail turnover of the Russian Federation in 2003-2012, % 

Region 
Central federal district 
Moscow region 
Moscow 
North-Western federal district 
Saint-Petersburg 
Southern federal district 
North-Caucasian federal district 
Volga federal district 
Urals federal district 
Siberian federal district 
Far-Eastern federal district 

2003 
39,2 
4,3 
26,0 
9,1 
3,6 
7,7 
3,0 
16,7 
8,4 
11,7 
4,2 

2004 
38,4 
5,1 
24,3 
9,3 
3,8 
7,8 
3,4 
16,7 
8,7 
11,6 
4,1 

2006 
35,8 
5,7 
20,9 
9,4 
4,1 
8,0 
3,6 
17,5 
10,0 
11,7 
4,1 

2005 
2009 
2010 
36,9 
33,83  34,21 
5,3 
6,12 
6,16 
22,5 
17,31  17,47 
9,5 
9,36 
9,35 
4,0 
4,15 
4,15 
7,9 
8,99 
8,73 
3,7 
4,66 
4,85 
16,9 
18,27  18,20 
9,3 
10,14  9,69 
11,7 
10,95  10,72 
4,1 
3,98 
4,07 
Source: data of the Federal State Statistics Service 

2012 
34,15 
5,90 
17,07 
9,17 
3,96 
9,01 
5,14 
18,33 
9,54 
10,83 
3,84 

2011 
34,57 
6,33 
17,41 
9,14 
3,89 
8,92 
4,97 
18,18 
9,52 
10,82 
3,89 

2007 
34,4 
6,1 
18,8 
9,4 
4,1 
8,5 
3,8 
17,9 
10,4 
11,7 
3,9 

2008 
33,4 
6,4 
17,0 
9,3 
4,2 
8,8 
4,0 
18,4 
10,8 
11,6 
3,8 

 
 
 
 
 
 
 
 
In 2012 there were no regions to demonstrate the highest decrease of retail turnover (more than 
5%) and the decrease within 5% among largest regions (which share in retail turnover of the 
Russian Federation is above 1%). The highest growth (more than 15%) was demonstrated by 
Voronezh region (18.6%), Republic of Tatarstan (18.4%) and Stavropol region (15.6%). 

Growth of retail turnover by districts in 2007 - 2012, % Y-o-Y, in comparable prices

114,5

108,3

104,8

107

104,5

107,6

106,3

106,7

110,3

108,7

107,6

106,6

107

105,1

113,9

110,3

108,3

106,1

105,3

104,9

100,7

117,7

120,1

2007

2009

2011

2012

95,9

94,4

94,8

95,1

90

89,4

125

120

115

111,7

110

105

100

95

90

85

80

Central

North-Western

Southern

North-Caucasion

Volga

Urals

Siberian

Far-Eastern

Source: IA Infoline 

In  2001-2008  in  most  of  the  regions  there  was  dynamic  growth  of  retail  turnover  in  physical 
terms, after that within 10 months (from March to December 2009) the dynamics was negative. 
At that from November 2009 the number of regions with the growing retail turnover started to 
increase  again  and  achieved  its  maximum  (76)  in  August  2010.  Afterwards,  it  started  to 
decrease. In general, in 2011 there was a y-o-y decline in turnover in 7 regions14 and in 8 regions 
in 2012 vs. 2011. 

Number of regions with positive dynamics of retail turnover in physical terms, Y-o-Y

80

70

60

50

40

30

20

10

0

Jan08

M ar08

M ay08

Jul08

Sep08

N ov08

Jan09

M ar09

M ay09

Jul09

Sep09

N ov09

Jan10

M ar10

M ay10

Jul10

Sep10

N ov10

Jan11

M ar11

M ay11

Jul11

Sep11

N ov11

Jan12

GGOOVVEERRNNMMEENNTT  RREEGGUULLAATTIIOONN  OOFF  RREETTAAIILL  

Jul12

Sep12

M ay12

M ar12
Source: IA Infoline 

N ov12

According to the Federal Law № 381 – FZ “On fundamental principles of government 
regulation  of  trade  activity  in  the  Russian  Federation”  which  came  into  effect  on 
February  1,  2010,  food  retail  chains  (which  threshold  of  dominance  on  retail  market 
within  the  boundaries  of  one  region,  municipality  or  urban  district  exceeds  25%)  are 
prohibited from acquiring and renting additional selling space within the boundaries of 
the  corresponding  administrative-territorial  entity.  The  law  does  not  apply  to 
agricultural consumer cooperatives and organizations of consumer cooperation. 

14  80  subjects  of  the  Russian  Federation  were  included  in  the  analysis  (excluding  Khanty-Mansiisk  Autonomous  District,  Yamal-
Nenets and Nenets Autonomous Area), which existed as of June 1, 2011 (data for 2006-2009 are adjusted for consolidation). 

 
 
 
                                                 
The law “On fundamental principles of government regulation of trade activity in the 
Russian  Federation”  also  aims  to  regulating  the  cooperation  of  retail  chains  and 
suppliers. The law № 381 – FZ introduced special legal regulation with regard to food 
supplies and set forth the list of terms which cannot be imposed by food suppliers and 
their  buyers  (trading  networks)  upon  each  other.  In  particular,  these  terms  include: 
reduction of price by suppliers to the level which will not exceed the minimum selling 
price of this product by economic entities performing corresponding activity subject to 
the  determination  of  the  trade  mark-up;  payment  for  the  change  in  the  product  mix; 
responsibility  for  failure  to  perform  obligations  on  goods  supply  on  more  favorable 
terms than for other economic entities; fee paid by suppliers for access to trade objects 
within  one  trading  network.  Wholesale  trade  under  commission  agreement  is 
prohibited. It is prohibited to set a ban on substitution of persons under the food supply 
agreement  through  assignment  of  a  claim  and  liability  for  noncompliance  with  this 
regulation.  Payment  due  date  for  some  food  products  was  set  forth.  For  example, 
products with up to 10-days expiry period should be paid for within 10 working days 
from the date of acceptance of goods, for products with up to 30-days expiry period the 
payment due period is up to 30 calendar days, and for the rest food products including 
alcoholics drinks – up to 45 calendar days.  
On December 14, 2012 first vice prime-minister of the Russian Federation Igor Shuvalov 
announced  that  the  government  of  the  Russian  Federation  is  considering  the 
liberalization  of  the  retail  law  to  the  extent  that  trading  networks  can  be  allowed  to 
build  new  selling  space  or  to  convert  other  objects  after  they  achieved  25%  market 
threshold. 

MMAAIINN  CCOOMMPPEETTIITTOORRSS1155 

The  concentration  level  of  the  Russian  food  retail  market  is  quite  low  –  the  share  of  3  largest 
players is little over 10% of the market, which is considerably inferior to comparable figures in 
Eastern and Western European countries. 
Such  a  low  capital  concentration  creates  conditions  for  competition  intensification 
among  retail  chains  in  the  nearest  future.  Currently,  development  of  competition  is 
expressed  in  capturing  extra  markets  due  to  growth  of  the  chain  itself  including 
franchising schemes as well as M&A deals. As a result, chains operating in the Russian 
market  actively  increase  their  presence  in  Moscow  and  regions  which  leads  to  the 
record rates of business growth. 

X5 Retail Group 

X5  Retail  Group  is  Russia's  largest  retailer  in  terms  of  sales.  The  Company  operates  several 
retail  formats:  the  soft  discounter  chain  under  the  Pyaterochka  brand,  the  supermarket  chain 
under the Perekrestok brand, the hypermarket chain under the Karusel brand, the online retail 
channel under the E5.ru brand and convenience stores under various brands. 
At  31  December  2012,  X5  had  3,802  Company-operated  stores.  It  has  the  leading  market 
position in both Moscow and St. Petersburg and a significant presence in the European part of 

15 Source: IA Infoline, public sources of companies. 

 
 
 
 
                                                 
Russia. Its store base includes 3,220 soft discounter stores, 370 supermarkets, 78 hypermarkets 
and 134 convenience stores. The Company operates 29 DCs and 1,956 Company-owned trucks 
across the Russian Federation. At 31 December 2012, the number of X5 employees totaled 109 
thousand. 
For the full year 2012, net sales totaled USD 15,795 mln, EBITDA reached USD 1,124 mln, and 
net loss amounted to USD 126 mln. 

METRO Cash & Carry 

trading  centers  were  opened 

Metro  Cash  and  Carry  is  the  largest  operating  company  of  cash  &  carry  international 
business format (individual wholesale) of Metro Group. The holding is presented in 32 
countries of the world by 2,200 stores. 
As  of  January  1,  2013  "Metro  Cash  &  Carry"  LLC  operates  68  trading  centers  in  45 
regions of Russia. Total selling space of the company as of January 1, 2013 amounted to 
539.7 thousand sq. m.  
In 2006-2008 "Metro Cash & Carry" used to open 8-9 stores per year, however since 2009 
“Metro group” reduced its expansion rates not only in Russia but in the other countries 
(Bryansk, 
as  well.  Four 
Zheleznodorozhny,  Kirov,  Novosibirsk).  In  2011  the  company  opened  7  Metro  C&C 
hypermarkets  in  Kemerovo  region,  Chelyabinsk  region,  Altai  region,  Republic  of 
Udmurtia, Tatarstan and Chuvash Republic, as well as in Smolensk region. 
In  2012  the  company  opened  6  Metro  C&C  hypermarkets.  The  first  store  of  the  new 
format  of  the  chain  –  “Metro  Punct”  supermarket  –  was  opened  in  May  2012.  As  of 
January  1,  2013  the  company  operated  1  “Metro  Punct”  supermarket  with  the  total 
selling  space  of  about  1.8  thousand  sq.  m.  Moreover,  in  June  2012  the  first  two 
franchised  “Fasol”  stores  were  opened  in  St.  Petersburg.  As  of  January  1,  2013  there 
were 15 franchised “Fasol” stores: 10 in Saint-Petersburg and 5 in Rostov region. 
Sales of METRO Cash & Carry, Russia for 2011 amounted to 3.422 billion euro (which 
represents 16.8% growth vs 2010). 

in  Russia 

in  2009 

Auchan 

Auchan is a large hypermarket chain operating on the Russian market since 2002. As of 
January  1,  2013  Auchan  in  Russia  operates  57  trading  objects  (including  1  under 
reconstruction). 39 “Auchan” hypermarkets were opened in 14 regions (14 - in Moscow 
and  Moscow  region,  5  –  in  Saint-Petersburg,  4  –  in  Samara,  3  –  in  Rostov-on-Don  and 
Novosibirsk,  2  –  in  Nizhniy  Novgorod,  1  in  Adygeya,  Krasnodar,  Ekaterinburg, 
Ulyanovsk,  Omsk,  Voronezh,  Ufa,  Kazan,  Ryazan  and  Chelyabinsk).  Besides,  Auchan 
operates  15  “Auchan-city”  mini-hypermarkets  (that  were  opened  as  a  result  of 
rebranding  of  hypermarkets  of  “Ramstore”  chain)  in  Moscow  (8  stores),  Ekaterinburg 
(1), Moscow region (2), Novosibirsk (1), Nizhniy Novgorod (1) and Saint-Petersburg (2). 
The  chain  also  consists  of  4  stores  of  new  format  -  “Nasha  Raduga”  -  in  Kaluga  and 
Penza opened in December 2009, in Yaroslavl – in November 2012 and in Kostroma – in 
December 2012. 

 
 
 
 
Total selling space as of January 1, 2013 amounted to more than 566.9 thousand sq. m. 
In  2012  the  company  opened  6  “Auchan”  hypermarkets  in  Rostov-on-Don,  Ryazan, 
Ulyanovsk,  Nizhniy  Novgorod,  Saint-Petersburg,  Samara,  “Auchan-city”  hypermarket 
in Nizhniy Novgorod.  
The  company  plans  to  increase  the  number  of  hypermarkets to  100 by  2015,  to  150 by 
2017, and the number of employees to 50 thousand people. 

Dixy 

“Dixy”  Group  of  Companies  is  one  of  Russia's  leading  retailers  of  food  and  everyday 
products. The company specializes in developing neighbourhood store supermarkets in 
Moscow, St. Petersburg and three federal districts of Russia: Central, Northwestern and 
Urals and also in Kaliningrad region, which together account for more than half of the 
retail  market  for  foods  and  everyday  products  in  the  Russian  Federation.  As  of 
December  31,  2012  the  company  operated  1,499  stores,  including:  1,392  “Dixy” 
neighbourhood  stores,  45  neighbourhood  stores  under  the  “Kvartal”,  “Deshevo”, 
“Semeynaya Kopilka” brands, 31 “Victoria” supermarkets, 19 “MEGAMART” compact 
hypermarkets, 11 “MINIMART” economic supermarkets and 1 “CASH” (“cash&carry”) 
store. 
The company is the third largest in terms of the amount of sales, selling space and the 
number of stores among the national retailers operating in the food segment. The total 
number of employees of the company exceeds 36 thousand.  
Net selling space of the Group as of December 31, 2012 amounted to 514,934 sq. m. 
In  2012  total  sales  of  “Dixy”  Group  of  Companies  amounted  to  147  billion  rubles 
(including the sales of “Victoria” Group of Companies from the acquisition date of June 
15, 2011). 

Lenta 

“Lenta”,  the  company  which  operates  the  hypermarket  chain  under  the  same  brand, 
was founded in 1993. As of January 1, 2013 "Lenta" operates 56 hypermarkets located in 
Saint-Petersburg,  Nizhny  Novgorod,  Novosibirsk,  Tyumen,  Krasnodar,  Volgograd, 
Veliky  Novgorod,  Petrozavodsk,  Astrakhan,  Togliatti,  Naberezhnye  Chelny,  Barnaul 
and  Biysk,  Penza  and  Saratov,  Omsk,  Novorossiysk,  Tver  and  Rostov  region, 
Cheboksary, Syktyvkar and Yaroslavl. 
Total selling space of the chain as of January 1, 2013 amounted to 401.3 thousand sq. m.  
In 2012 14 “Lenta” hypermarkets were opened in St. Petersburg (2), Barnaul and Biysk, 
Kemerovo region (Prokopyevsk), Omsk, Voronezh, Cheboksary, Syktyvkar, Orenburg, 
Yaroslavl (2), Vologda and Surgut. 
The  company  has  about  17  thousand  employees.  More  than  5  million  people 
throughout Russia are holders of loyalty cards of the chain.  
Sales of “Lenta” retail chain for 2012 amounted of 106.6 billion rubles and increased by 
22.4% compared to 89.8 billion rubles for 2011.  

 
 
 
 
 
О'KEY 

“O’KEY”  is  one  of  the  largest  retail  chains  in  Russia.  Its  primary  retail  format  is  the 
modern Western European hypermarket under the “O’KEY” brand, complemented by 
“O’KEY - Express” supermarkets. 
As  at  January  1,  2013  "O'KEY"  operated  83  stores  in  20  cities  across  Russia:  16 
hypermarkets  and  19  supermarkets  in  Saint-Petersburg  and  Leningrad  region,  1 
hypermarket  and  4  supermarkets  in  Moscow,  2  hypermarkets  and  2  supermarkets  in 
Moscow  region,  2  hypermarkets  in  Murmansk,  4  hypermarkets  and  1  supermarket  in 
Krasnodar,  2  hypermarkets  in  Rostov-on-Don  and  1  supermarket  in  Rostov  region,  2 
hypermarkets  and  1  supermarket  in  Astrakhan,  2  hypermarkets  and  1  supermarket  in 
Krasnoyarsk,  1  hypermarket  and  3  supermarkets  in  Volgograd,  2  hypermarkets  in 
Voronezh,  2  hypermarkets  in  Ufa  and  Surgut,  1  hypermarket  in  Togliatti,  Nizhniy 
Novgorod,  Stavropol,  Lipetsk,  Novosibirsk,  Omsk,  Saratov,  Tyumen,  Yekaterinburg, 
Sochi. 
As  at  January  1,  2013  total  selling  space  of  "O'KEY"  chain  amounted  to  about  429.5 
thousand sq. m.  
In  2012  10  hypermarkets  of  the  chain  were  opened  in  Voronezh,  Ufa,  Tyumen, 
Yekaterinburg, Sochi, Surgut, Saint-Petersburg and Moscow region and 2 supermarkets 
in Moscow. 
In  accordance  with  unaudited  operating  results,  the  unaudited  revenue  of  “О'KEY” 
chain  at  the  end  of  2012  amounted  to  115.92  billion  rubles,  increasing  by  25.7% 
compared  to  92.212  billion  rubles  for  2011.  In  2012  like-for-like  revenue  growth  rate 
amounted  to  7.0%  compared  to  5.3%  for  2011.  Average  ticket  amounted  to  4.3% 
compared  to  5.5%  for  2011.  Traffic  for  2012  increased  to  2.5%  compared  to  -0.2%  for 
2011. 
Number of stores of the largest FMCG retailers in 2007-2012, eop. 

Legal name 

Brand 

X5 Retail Group N.V. 

”Magnit”,OJSC 

Pyaterochka 
Perekrestok 
Karusel 
Perekrestok-Express, CityMag 
Kopeyka 
Magnit 
Magnit Hypermarket 
Magnit Kosmetik 
Magnit Family 
Auchan, Auchan-City, Nasha Raduga 

Metro C&C, Metro Punct 

“Auchan”, company 
limited 
“МЕТRО Cash and Carry”,  
company limited 
“O'key”, company limited  O'key, O'key-express 
“Lenta”, company limited  Lenta 
“Dixy-group”, OJSC  
“Victoria” Group of 
Companies, OJSC 

Megamart, Minimart, Dixy 
Victoria, Cash, Deshevo, Kvartal, 
Semeynaya Kopilka 

Main formats16 
D 
S 
H 
CS 
CS, S 
D 
H 
МК 
MF 

H 

S, H 

S, H 
H 
D, S, H 

2007 

2008 

2009 

2010  2011  2012 

674 
194 
22 
- 
438 
2194 
3 
- 
- 

18 

39 

24 
26 
388 

848 
207 
46 
- 
517 
2568 
14 
- 
- 

33 

48 

37 
34 
493 

1039 
275 
58 
- 
587 
3204 
24 
- 
- 

38 

52 

46 
36 
537 

1392  1918  3220 
301  321  370 
78 
77 
71 
134 
45 
70 
657  616 
- 
4004  5006  6046 
93 
51 
126 
210  692 
2 
20 
- 
- 

44 

49 

57 

57 

62 

68 

71 
57 
42 
39 
646  894  1422 

83 
56 

CS, S, H, D 

194 

215 

208 

258  225  77 

16 Key: D - Discounter, H - Hypermarket, S - Supermarket, CS - Convenience Store, МК – Cosmetics Store, MF – Magnit Family 

 
 
 
 
 
                                                 
Total selling space of FMCG retailers in Russia in 2007-2012, eop, thousand sq. m. 

Legal name 

X5 Retail Group N.V. 

”Magnit”,OJSC 

Brand 
Pyaterochka 
Perekrestok 
Karusel 
Perekrestok-Express, CityMag 
Kopeyka, Kopeyka-Super 
Magnit 
Magnit Hypermarket 
Magnit Kosmetik 
Magnit Family 

Metro C&C, Metro Punct 

Auchan, Auchan-City, Raduga 

“Auchan”, company 
limited 
“МЕТRО Cash and Carry”,  
company limited 
“O'key”, company limited  O'key, O'key-express 
“Lenta”, company limited  Lenta 
“Dixy-group”, OJSC  
“Victoria” Group of 
Companies, OJSC 

Megamart, Minimart, Dixy 
Victoria, Cash, Deshevo, Kvartal, 
Semeynaya Kopilka 

Main formats 
D 
S 
H 
CS 
CS, S 
D 
H 
МК 
MF 

2007 
357,5 
251,7 
126 
- 
- 
640,1 
11,6 
- 
- 

2008 
419,2 
222,4 
232,5 
- 
- 
767,1 
56,4 
- 
- 

2009 
493 
284,4 
285,6 
- 
- 
978,5 
81,4 
- 
- 

2010 
586,3 
313,0 
351,8 
9,2 
296,0 
1256,8 
165,1 
0,4 
- 

2012 
2011 
735,2 
1191,4 
333,89  383,5 
368,2 
371,3 
26,7 
12,7 
274,2 
- 
1637,8  1977,5 
387,6 
282,2 
159,8 
50,1 
24,4 
- 

H 

S, H 

S, H 
H 
Д, S, H 

250,6 

340,1 

386,6 

451,3 

497,0 

566,9 

326,3 

394,5 

427,4 

464,5 

499,5 

539,7 

149,2 
186,7 
148,8 

191,7 
244,7 
191 

232,7 
260,9 
206 

287,4 
281,7 
227,9 

346,0 
306,0 
286,7 

429,5 
401,3 
447,3 

CS, S, H 

99,8 

109,7 

104,6 

121,3 

118,4 

67,6 

Dynamics of net sales (excluding VAT) of the largest FMCG retailers in 2007-2012, 
billion RUR 

Legal name 

X5 Retail Group N.V. 

”Magnit”,OJSC 
“Auchan”, company 
limited 
“МЕТRО Cash and 
Carry”,  
company limited 

Brand 
Pyaterochka 
Perekrestok 
Karusel, Pyaterochka-Maxi 
Perekrestok-Express 
Kopeyka, Kopeyka-Super 

Main formats  Data 
D 
S 
H 
CS 
D, S 

IFRS, 2011 – 
unaudited 
accounts 

Pyaterochka, Perekrestok, Karusel, 
Pyaterochka-Maxi, Perekrestok-
Express, Kopeyka 

CS, D, S, H 

Magnit 

D, H 

IFRS (2010-2012 – 
incl. Kopeyka 
stores), 2012 – 
unaudited 
accounts 
IFRS 

2012 

2009 

2008 

2010 

2011 

2007 
75,38  110,95  148,35  188,28  230,42  317,75 
105,47 
49,75  67,15  73,19 
61,48 
31,16  41,71  53,55 
4,88 
– 
- 
34,940  51,60  56,15 

83,13 
61,12 
1,86 
61,21 

98,69 
66,63 
2,99 
53,52 

– 

– 

136,10  207,20  275,08  342,58  452,48  490,09 

94,04  132,4  169,86  236,14  335,70  448,66 

Auchan, Auchan-City, Nasha Raduga  H 

RAS 

90,6 

128,1  158,36  178,1 

205,1 

- 

Metro C&Cб Metro Punct 

S, H 

IFRS 

89,2 

111,2  114,30  117,99  139,96  - 

“O'key”, company limited  O'key, O'key-express 

“Lenta”, company limited  Lenta 

S, H 

H 

Megamart, Minimart, Dixy, Victoria, 
Cash, Deshevo, Kvartal 

CS, D, S, H 

“Dixy-group”, OJSC  

Dixy 
Megamart 
Minimart 
V-mart 
Marketing 

D 
H 
S 
CS 
- 

Victoria, Cash, Deshevo, Kvartal 

CS, S, H 

IFRS, 2012 – 
unaudited 
accounts 
MA 
IFRS, 2011-2012 – 
consolidation 
with “Victoria” 
Group of 
Companies 

IFRS, 2012 – 
неаудированная 
отчетность 

RAS (“Victoria” 
Group of 
Companies) 2011 
– pro forma 
“Dixy” Group of 
Companies 

30,533  51,14  67,88 

82,67 

92,21 

115,9 

32,9 

50,8 

55,60 

70,60 

89,8 

109,9 

36,65  48,3 

54,26 

64,80 

102,23  147,05 

32,25  40,65  45,13 
6,32 
3,2 
2,00 
1,2 
0,07 
0 
0,74 
0 

5 
2 
0,24 
0,49 

54,39 
7,26 
2,18 
0,00 
0,90 

68,9 
8,52 
2,43 
0,00 
1,28 

96,44 
10,86 
2,92 
- 
- 

26,5 

31,9 

32,89 

36,80 

40,63 

35,43 

 
 
 
 
 
CCOOMMPPEETTIITTIIVVEE  AADDVVAANNTTAAGGEESS  OOFF  ““MMAAGGNNIITT””  

Multi-format business 
Implementation of the strategic decision to develop the additional format of hypermarket 
allows the Group to conduct more profound segmentation of existing markets and consider 
population with the different level of income as potential customers as well as to achieve high 
results of turnover per store and of the average ticket and fast rates of business growth. 
Moreover, pricing policy of the Group allows it to compete with open-air markets targeting 
customers with the level of income below the average. 

Strong regional coverage 
“Magnit” group of companies has considerable experience of operation in regions: in 2002 – 
2012 the impressive growth of the Group turnover was a result of its expansion into the cities 
with a population of less than 500 thousand people. In the nearest future the regions are 
expected to face the highest growth of consumer demand, which creates favorable conditions 
for medium-term dynamics of the Group business. 

Russia’s largest chain in terms of number of stores 
In terms of number of stores “Magnit” chain takes the first place in Russia, which has a positive 
impact on cooperation with the largest food and beverage producers promoting their products 
on the regional markets. First of all, it is reflected in favorable purchasing terms and 
corresponding efficiency improvement. 

Recognized brand 
According to the independent expert research, IGD in particular, Russian customers pay 
significant attention to the brand when purchasing non-food and food items. Moreover, loyalty 
of Russian customer to one or another brand is higher vs. European citizens, which makes 
Russian customers less price-sensitive. Therefore, large store chain under “Magnit” brand 
allows the Group to strengthen its positions in the occupied market niche. 

Efficient logistics system 
Developed logistics system, distribution centers and own fleet of vehicles enable the Group to 
strictly monitor its delivery costs. Operating distribution centers results in lower purchasing 
prices and less pressure on the store at goods acceptance which ultimately contributes to more 
efficient business organization. 
The Group employs highly efficient automated stock replenishment system, which gives 
opportunity to achieve high turnover level as well as to reduce costs. 

 
 
 
 
 
1100..  PPRRIIOORRIITTYY  AARREEAASS  OOFF  TTHHEE  CCOOMMPPAANNYY’’SS  OOPPEERRAATTIIOONNSS  

Headquartered  in  the  southern  Russia  city  of  Krasnodar,  open  joint-stock  company 
“Magnit” 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  6,884  stores:  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.  

At the end of 2012 stores located in the Southern Federal district accounted for 1,531, in 
the  Volga  region  –  2,142,  North-Caucasian  –  375,  Central  –  1,692,  North-Western  –  504,  the 
number of stores in the Urals and Siberian regions amounted to 550 and 90 correspondingly. 

As of December 31, 2012 the Company operates an in-house logistics system consisting 
of  18  modern  distribution  centers  (DCs):  three  of  them  are  located  in  the  Southern  Federal 
district  (Bataysk,  Kropotkin  and  Slavyansk-On-Kuban),  six  are  in  the  Volga  Federal  district 
(Engels, Togliatti, Erzovka, Dzerzhinsk, Izhevsk and Sterlitamak), another five DCs are based in 
the Central Federal district (Ivanovo, Oryol, Tambov, Tver and Tula), one in the Urals Federal 
district (Chelyabinsk), one in the North-Western Federal district (Veliky Novgorod), one in the 
North-Caucasian Federal district (Lermontov) and one in the Siberian Federal district (Omsk). 

 
 
City 

Federal District 

Warehousing 
space, sq. m. 

Number of 
serviced stores 

% of total DC 
turnover 

Bataysk 

Southern 

17,407 

Kropotkin  

Southern 

30,048 

Slavyansk-on-
Kuban 

Engels 

Togliatti 

Erzovka 
(Volgograd) 

Dzerzhinsk 

Izhevsk 

Sterlitamak 

Ivanovo 

Oryol 

Tambov 

Tver 

Tula 

Southern 

20,496 

Volga 

Volga 

Volga 

Volga 

Volga 

Volga 

19,495 

19,157 

26,074 

30,523 

34,141 

22,043 

Central 

52,929 

Central 

14,326 

Central 

26,733 

Central 

15,726 

Central 

51,205 

Veliky Novgorod 

North-Western 

21,060 

Chelyabinsk 

Urals 

17,623 

Lermontov 

North-Caucasian 

34,503 

437 

417 

314 

316 

406 

427 

425 

541 

432 

742 

376 

426 

196 

308 

280 

367 

323 

151 

6.46% 

5.97% 

7.44% 

5.32% 

6.85% 

8,55% 

5.96% 

6.02% 

3.16% 

9.45% 

6.65% 

6.06% 

4.21% 

1.13% 

4.81% 

6.80% 

4.46% 

0.70% 

100% 

Omsk 

Total 

Siberian 

7,114 

460,603 

6,884 

The  Company  operates  automated  stock  replenishment  system  and  a  fleet  of  4,401 

vehicles. 

 
 
1111..  PPRRIIOORRIITTYY  DDIIRREECCTTIIOONNSS  OOFF  TTHHEE  CCOOMMPPAANNYY’’SS  DDEEVVEELLOOPPMMEENNTT  

The Company marks out the following mid-term development trends: 

•  Further  expansion  of  the  chain  by  increasing  the  density  of  coverage  of  the 
key  markets  as  well  as  organic  expansion  in  the  least  developed  regions  of 
Russia; 

•  Development  of 

through  active 
the  multi-format  business-model 
implementation  of  the  hypermarket  format,  continuing  development  of 
cosmetics stores and the new format – “Magnit Family”; 

•  Building of the high level loyalty of the key audience to the brand 

• 

Implementation  of  additional  measures  to  minimize  costs  and  improve 
profitability; 

Chain expansion 

In the nearest 2-3 years the Company plans to keep high pace of business growth 
with the annual number of openings of not less than 500 convenience stores and not less 
than 250 cosmetics stores in the cities with the population from 5,000 people and about 
50  hypermarkets  (including  “Magnit  Family”  stores)  in  the  cities  with  the  population 
from 25,000 people. 

The key territories of presence for the Company are Southern, Volga and Central 
regions,  it  is  planned  to  increase  the  number  of  stores  in  Urals  and  Siberia  regions.  In 
the long-term outlook the management of the chain does not exclude the opportunity of 
entering the market of the Far East. 

Development of the multi-format model 

Currently  the  Company  is  actively  expanding  into  four  formats:  “convenience 

store”, hypermarket, “Magnit Family” and “cosmetics store” (drogerie). 

The format of a convenience store is a neighbourhood store oriented all customers living 
within 500 meters radius. The assortment of the convenience store consists of little more than 
3,000  food  and  non-food  essential  items  offered at  reasonable  prices. Average  total  space  of a 
store is 465 sq. m., average selling space is 328 sq. m. 

As of December 31, 2012 “Magnit” retail chain operates 6,046 convenience stores, out of 

which 1,040 were opened in 2012. 

In  2007  the  Company  started  its  expansion  in  the  new  format  –  a  hypermarket.  As  of 
December 31, 2012 “Magnit” retail chain operates 126 stores of this format, out of which 36 were 
opened in 2012. 

The Company opens its hypermarkets mainly in the cities with population from 
50,000  to  500,000  citizens,  at  that  the  retail  outlet  is  located  in  the  city  (within  the  city 
boundaries) and targets people living within the radius of 7 km. 

 
 
 
 
 
 
 
 
 
 
Based  on  location  (size  of  the  location  or  of  the  area  in  a  large  city)  there  are  3  sub-

formats of the hypermarket: 

“small” with the selling space of up to 3,000 sq. m. (excluding rental space); 
“medium” with the selling space of 3,000 – 6,000 c (excluding rental space); 
“large” with the selling space of over 6,000 sq. m.; (excluding rental space). 
Strategic  development  of  the  hypermarket  format  enables  to  conduct  deeper 
segmentation  of  the  existing  markets  and  consider  population  with  different  income  as 
potential  customers  on  the  back  of  high  turnover  per  store  and  average  ticket  as  well  as  fast 
pace of business growth. 

In 2010 the Group started to study a new segment of the retail market and launched 2 
trial  stores  of  a  new  format  –  “drogerie”.  Unlike  convenience  stores,  stores  under  “Magnit 
Kosmetik” brand offer a mix of non-food group of products: personal care products, household 
cleaning  products,  cosmetics  and  perfumery  goods.  As  of  December  31,  2012  the  chain  of 
cosmetics stores consists of 692 stores out of which 482 stores were opened during 2012. 

In  May  2012  the  new  format  –  “Magnit  Family”  was  launched.  One  of  the  reasons  to 
expand into this format is to meet the needs of customers in wider assortment and aggressive 
pricing in premises which are not suitable for a standard hypermarket due to space limitations. 
Key features of the new format are: 

-  Selling space of up to 1,500 sq. m.; 
-  Assortment of more than 6,000 SKUs; 
-  Expanded fresh zone; 
-  Limited non-food assortment; 
-  Own production facilities (ready meals); 
-  Main technologies of the hypermarket format; 
-  Pricing of the hypermarket format; 
-  Location primarily in the leased premises of the shopping and entertainment malls. 
The  number  of  the  new  format  stores  is  growing  through  opening  of  new  objects  as  well  as 
reformatting certain convenience stores with excessive selling space for this format (about 1,000 
sq.m.) and upside sales potential. 

In 2012 the Group opened 20 “Magnit Family” stores. 

Pricing  policy  of  the  Company  allows  it  to  compete  with  open  markets  considering 

customers with income below average as the target audience. 

Brand recognition and customer loyalty 

The  Company  management  takes  measures  to  adjust  its  formats  to  changing 
customers’  preferences.  In  the  regions  with  the  highest  purchasing  power  the  work  is 
carried  out  with  the  traditional  assortment  of  the  convenience  store  towards  its 
expansion in favor of more expensive products (for example, ready-made cookery and 
semi-prepared meat). 

Within the complex measures taken to increase the loyalty to the “Magnit” brand 
the  analysis  is  carried  out  to  study  the  customers’  preferences  to  adjust  marketing 
program to the peculiarities of different formats. 

As an additional factor of the brand popularity the management of the Company 

plans to improve the service in its stores through corresponding work with its 
employees. 

 
 
 
 
Minimization of expenses 

The  main  drivers  of  successful  development  in  the  above  direction  are  further 
improvement  of  the  logistics  processes  and  investments  in  the  IT  system  which 
provides  the  Company  with  maximum  effective  stock  transport  flow  management 
systems, and contributes to its transformation into the leader in terms of cost control. 

Active  introduction  of  private  label  products  to  the  assortment  is  in  place  to 

increase Company’s profitability. 

The status of Russia’s  largest chain  in terms  of number of stores and customers 
supports the Company’s efficient cooperation with suppliers and achievement of most 
favorable purchasing terms. 

Development  of  direct  import,  first  of  all  direct  import  of  fresh  fruits  and 

vegetables, also contributes to minimization of logistics costs. 

 
 
 
1122..  IINNFFOORRMMAATTIIOONN  OONN  TTHHEE  PPAAIIDD  DDIIVVIIDDEENNDDSS  

The annual general shareholders’ meeting held on May 28, 2012 (minutes of 28.05.2012) 
decided to distribute dividends on ordinary registered shares of OJSC “Magnit” following the 
results of 2011 financial year and the 1st quarter of 2012 financial year. 

The extraordinary general shareholders’ meeting held on September 14, 2012 (minutes of 
14.09.2012)  decided  to  distribute  dividends  on  ordinary  registered  shares  of  OJSC  “Magnit” 
following the results of the first half of 2012 financial year. 

Information on the paid dividends: 

Dividend period: FY 2011. 
The amount of declared (accrued) dividends on shares of this category (type) per share, 

RUB:  

-the amount of dividend accrued per one ordinary registered uncertified share following 

the results of 2011 financial year - 18.26 rubles. 

The  total  amount  of  the  declared  (accrued)  dividends  on  all  shares  of  this  category 

(type), RUB: 

-the  total  amount  of  dividends  accrued  on  the  ordinary  registered  uncertified  shares 

following the results of 2011 financial year - 1,726,690,342.30 rubles. 

Dividend period: First quarter of FY 2012. 
The amount of declared (accrued) dividends on shares of this category (type) per share, 

RUB: 

- the amount of dividend accrued per one ordinary registered uncertified share following 

the results of the first quarter of FY 2012 - 5.18 rubles. 

The  total  amount  of  the  declared  (accrued)  dividends  on  all  shares  of  this  category 

(type), RUB: 

-the  total  amount  of  dividends  accrued  on  the  ordinary  registered  uncertified  shares 

following the results of the first quarter of FY 2012 financial year - 489,827,818.90 rubles. 

Dividend period: First half of FY 2012. 
The amount of declared (accrued) dividends on shares of this category (type) per share, 

RUB: 

-the amount of dividend accrued per one ordinary registered uncertified share following 

the results of the first half of FY 2012 - 21.15 rubles. 

The  total  amount  of  the  declared  (accrued)  dividends  on  all  shares  of  this  category 

(type), RUB: 

-the  total  amount  of  dividends  accrued  on  the  ordinary  registered  uncertified  shares 

following the results of the first half of FY 2012 - 1,999,972,658.25 rubles. 

The  total  amount  of  dividends  paid  on  all  shares  of  the  issuer  of  one  category  (type), 

RUB: 4,216,485,424.06. 

 
 
 
 
 
 
 
1133..  SSEECCUURRIITTIIEESS  

AAUUTTHHOORRIIZZEEDD  CCAAPPIITTAALL  SSTTOOCCKK  

The authorized capital stock of the Company determines the minimum amount of assets 

that guarantees its creditors’ interests. 

As  of  December  31,  2012  authorized  capital  stock  of  the  open  joint-stock  company 
“Magnit” amounts to 945,613.55 rubles. It consists of 94,561,355 ordinary registered uncertified 
shares with a nominal value per share of 0.01 ruble. 

The Company is entitled to offer additional ordinary registered shares in the amount of 

106,288,645 with the nominal value per share of 0.01 ruble (authorized shares).  

Information on the listed shares of OJSC “Magnit” as of 31.12.2012: 

Description of 
security 

Number of state 
registration 

Date of state 
registration 

Nominal, 
RUR 

Total number 
of securities 

Ordinary registered 
uncertified shares 

Total: 

1-01-60525-Р 

04.03.2004 

0.01 

94,561,355 

94,561,355 

Structure of OJSC “Magnit” share capital as of 31.12.2011: 
Number of registered 
entities 

Name 

Share in the charter 
capital, % 

Legal entities 

including nominal holders 

Individuals 

Total: 

9 

8 

16 

25 

57.78 

57.77 

42.22 

100 

Information  on  OJSC  “Magnit”  outstanding  shares  listed  outside  the  Russian 
Federation in accordance with the foreign law of securities of foreign issuers certifying rights 
in respect of the above shares of the Company: 

Category  (type)  of  shares  outstanding  outside  the  Russian  Federation:  ordinary 

registered shares; 

Percentage  of  shares  outstanding  outside  the  Russian  Federation  as  a  %  of  the  total 

number of shares of the corresponding category (type): 29.94%; 

name,  address  of  the  foreign  issuer  which  securities  certify  the  rights  in  respect  of  the 
shares of the Company of the corresponding category (type): JP Morgan Chase Bank, N. A., 4 
New York Plaza, 13th Floor, New York, 10004 New York United States of America); 

short  description  of  the  program  (type  of  the  program)  of  the  securities  issue  of  the 
foreign issuer certifying the rights in respect of the shares of the corresponding category (type): 
in accordance with foreign law JPMorgan Chase Bank, N. A. issued securities (global depositary 
receipts,  “GDRs”)  certifying  the  rights  in  respect  of  the  ordinary  registered  shares  of  OJSC 
“Magnit”; 

 
  
 
 
 
 
 
 
information on obtaining a permit of the federal executive body for the securities market 
to list the issuer’s shares of the corresponding category (type) outside the Russian Federation (if 
applicable): 

-  in  accordance  with  the  order  of  FFMS  of  Russia  of  March  27,  2008  №  08-661/pz-i 
placement  and  listing  outside  the  Russian  Federation  of  the  ordinary  registered  uncertified 
shares  of  OJSC  “Magnit”,  state  registration  number  of  the  securities  issue  1-01-60525-P  of 
04.03.2004,  state  registration  number  of  the  additional  securities  issue  1-01-60525-Р-004D  of 
20.03.2008 in the amount of 11,522,000 (eleven million five hundred and twenty two thousand) 
ordinary registered uncertified shares is permitted; 

-  in  accordance  with  the  order  of  FFMS  of  Russia  of  October  02,  2009  №  09-3132/pz-i 
offering and listing outside the Russian Federation of ordinary registered uncertified shares of 
OJSC “Magnit”, state registration number of the securities issue 1-01-60525-P of 04.03.2004, state 
registration  number  of  the  additional  securities  issue  1-01-60525-Р-005D  of  02.10.2009  in  the 
amount of 16 792 946 (sixteen million seven hundred ninety two four thousand nine hundred 
forty six) ordinary registered uncertified shares is permitted; 

name of the foreign trade organizer (trade organizers) through which securities of the 
foreign issuer certifying the rights in respect of the issuers’ shares are listed (if there is such a 
listing): London Stock Exchange. 

BBOONNDDSS  

Bond issue of LLC “Magnit Finance” of 01 series: 

In  2005  the  Company  entered  the  stock  market and  offered  its  investors  bond  issue  of 
limited  liability  company  “Magnit  Finance”,  subsidiary  of  OJSC  “Magnit”.  The  bond  issue 
enabled  the  Company  to  optimize  its  debt  portfolio  and  develop  the  process  of  cooperation 
with investors for the purpose of further introduction of the Company’s shares to the market. 

Issue  comprised  2  million  securities  with  the  nominal  value  of  1  thousand  rubles 
guaranteed by OJSC “Magnit” and JSC “Tander”. Maturity of the bonds was 3 years. The main 
objective of the bond issue was to refinance short-term debt of the group. Not less than 75% of 
the raised funds were channeled for these purposes, and the remaining funds were spent on the 
development of “Magnit” retail chain. 

Placement of the certified interest-bearing non-convertible bonds payable to bearer of 01 
series  with  the  obligatory  centralized  custody  of  LLC  “Magnit  Finance”  on  the  MICEX  stock 
exchange commenced on November 23, 2005. The number of the placed securities amounted to 
2,000  thousand  bonds  which  constitutes  100%  of  the  total  number  of  securities  subject  to 
placement. The entire bond issue was realized in full in the course of auction in the fist day of 
placement. 

On November 19, 2008 LLC “Magnit Finance” fulfilled its obligations to bond holders on 

time and in full and redeemed the nominal value of bonds of 01 series. 

Bond issue of LLC “Magnit Finance” of 02 series: 

In  2007  the  Company  offered  its  investors  the  second  bond  issue  of  limited  liability 

company “Magnit Finance”, subsidiary of OJSC “Magnit”. 

Issue  comprised  5  million  securities  with  the  nominal  value  of  1  thousand  rubles 
guaranteed  by  OJSC  “Magnit”  and  JSC  “Tander”.  Maturity  of  the  bond  issue  was  5  years. 

 
 
 
 
 
Similar to the first issue, the second bond issue was conditioned by the necessity of refinancing 
short-term liabilities of the group. 

Placement of the certified interest-bearing non-convertible bonds payable to bearer of 02 
series  with  the  obligatory  centralized  custody  of  LLC  “Magnit  Finance”  on  the  MICEX  stock 
exchange  commenced  on  March  30,  2007.  The  number  of  the  placed  securities  amounted  to 
5,000  thousand  bonds  which  constitutes  100%  of  the  total  number  of  securities  subject  to 
placement. The entire bond issue was realized in full in the course of auction in the first day of 
placement. 

Parameters of the bond issue of LLC “Magnit Finance” of 02 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 
7 coupon interest rate 
8 coupon interest rate 
9 coupon interest rate 
10 coupon interest rate 

№ 4-02-36102-R of March 6, 2007 
5,000,000,000 rubles 
5,000,000 bonds 
1,000 rubles 
100% of nominal value 
30.03.2007 
open subscription 
1,820th day from the date of placement 
(23.03.2012) 
10 
RU000A0JP4W7 
RU000A0JP4W7 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 
8.20 % 

The first coupon yield of 02 series bond issue was paid on September 28, 2007. The total 
amount of yield paid on the first coupon amounted to 204.45 million rubles, the amount of yield 
of the first coupon paid per one bond amounted to 40.89 rubles. 

The second coupon yield of 02 series bond issue was paid on March 28, 2008. The total 
amount of yield paid on the second coupon amounted to 204.45 million rubles, the amount of 
yield of the second coupon paid per one bond amounted to 40.89 rubles. 

The third coupon yield of 02 series bond issue was paid on September 26, 2008. The total 
amount  of  yield  paid  on  the  third  coupon  amounted  to  204.45  million  rubles,  the  amount  of 
yield of the third coupon paid per one bond amounted to 40.89 rubles. 

The  forth  coupon  yield  of  02  series  bond  issue  was  paid  on  March  27,  2009.  The  total 
amount  of  yield  paid  on  the  forth  coupon  amounted  to  204.45  million  rubles,  the  amount  of 
yield of the forth coupon paid per one bond amounted to 40.89 rubles. 

 
 
The fifth coupon yield of 02 series bond issue was paid on September 25, 2009. The total 
amount of yield paid on the fifth coupon amounted to 204.45 million rubles, the amount of yield 
of the fifth coupon paid per one bond amounted to 40.89 rubles. 

The  sixth  coupon  yield  of  02  series  bond  issue  was  paid  on  March  26,  2010.  The  total 
amount  of  yield  paid  on  the  sixth  coupon  amounted  to  204.45  million  rubles,  the  amount  of 
yield of the sixth coupon paid per one bond amounted to 40.89 rubles. 

The seventh coupon yield of 02 series bond issue was paid on September 24, 2010. The 
total  amount  of  yield  paid  on  the  seventh  coupon  amounted  to  204.45  million  rubles,  the 
amount of yield of the seventh coupon paid per one bond amounted to 40.89 rubles. 

The eighth coupon yield of 02 series bond issue was paid on March 25, 2011. The total 
amount of yield paid on the eighth coupon amounted to 204.45 million rubles, the amount of 
yield of the eighth coupon paid per one bond amounted to 40.89 rubles. 

The ninth coupon yield of 02 series bond issue was paid on September 23, 2011. The total 
amount  of  yield  paid  on  the  ninth  coupon  amounted  to  204.45  million  rubles,  the  amount  of 
yield of the ninth coupon paid per one bond amounted to 40.89 rubles. 

The  tenth  coupon  yield  of  02  series  bond  issue  was  paid  on  March  23,  2012.  The  total 
amount  of  yield  paid  on  the  tenth  coupon  amounted  to  204.45  million  rubles,  the  amount  of 
yield of the tenth coupon paid per one bond amounted to 40.89 rubles. 

On  March  23,  2012  LLC  “Magnit  Finance”  fulfilled  its  obligations  to  bond  holders  on 

time and in full and redeemed the nominal value of bonds of 02 series. 

Based on trading for the period from 03.01.2012 to 23.03.2012 the weighted average price 
of  transactions  with  bonds  of  02  series  varied  from  min  96.73  %  (24.02.12)  to  max  100.14  % 
(03.01.12) of the nominal value. Acknowledgeable quote within this period fluctuated from min 
96.73% (24.02.12) to max 100.1% (03.01.12, 04.01.12, 06.01.12). 

Bond issue of OJSC “Magnit” of BO-01 series: 

In 2010 the Company offered its investors the first Exchange-traded bond issue. 
The  issue  comprised  1  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
The maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of 
BO-01 series was to attract funds to finance operating activity and expansion of “Magnit” group 
of companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-01 series with the obligatory centralized custody of OJSC “Magnit” on 
the  MICEX  stock  exchange  commenced  on  September  13,  2010.  The  number  of  the  placed 
securities amounted to 1 million bonds which constitutes 100% of the total number of securities 
subject to placement. The entire bond issue was realized in full in the course of auction in the 
first day of placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-01 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 
Redemption date 

№ 4B02-01-60525-P of February 02, 2010 
1,000,000,000 rubles 
1,000,000 bonds 
1,000 rubles 
100% of nominal value 
13.09.2010 
open subscription 
1,092nd day from the date of placement 

 
 
 
Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

(09.09.2013) 
6 
RU000A0JR118 
RU000A0JR118 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 

The first coupon yield of BO-01 series Exchange-traded bond issue was paid on March 
14, 2011. The total amount of yield paid on the first coupon amounted to 41.14 million rubles, 
the amount of yield of the first coupon paid per one bond amounted to 41.14 rubles. 

The  second  coupon  yield  of  BO-01  series  Exchange-traded  bond  issue  was  paid  on 
September  12,  2011.  The  total  amount  of  yield  paid  on  the  second  coupon  amounted  to  41.14 
million rubles, the amount of yield of the second coupon paid per one bond amounted to 41.14 
rubles. 

The third coupon yield of BO-01 series Exchange-traded bond issue was paid on March 
12, 2012. The total amount of yield paid on the third coupon amounted to 41.14 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 41.14 rubles. 

The  forth  coupon  yield  of  BO-01  series  Exchange-traded  bond  issue  was  paid  on 
September  10,  2012.  The  total  amount  of  yield  paid  on  the  forth  coupon  amounted  to  41.14 
million rubles, the amount of yield of the forth coupon paid per one bond amounted to 41.14 
rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  the  Exchange-traded  bonds  of  BO-01  series  varied  from  min  99.26  % 
(18.01.12) to max 101.1 % (21.03.2012) of the nominal value. Acknowledgeable quote within this 
period fluctuated from min 99.91% (12.04.2012) to max 100.16% (08.08.2012). 

Bond issue of OJSC “Magnit” of BO-02 series: 

In 2010 the Company offered its investors the second Exchange-traded bond issue. 
The  issue  comprised  1  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
Maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-02 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-02 series with the obligatory centralized custody of OJSC “Magnit” on 
the  MICEX  stock  exchange  commenced  on  September  13,  2010.  The  number  of  the  placed 
securities amounted to 1 million bonds which constitutes 100% of the total number of securities 
subject to placement. The entire bond issue was realized in full in the course of auction in the 
first day of placement. 

 
 
 
Parameters of the bond issue of OJSC “Magnit” of BO-02 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-02-60525-P of February 02, 2010 
1,000,000,000 rubles 
1,000,000 bonds 
1,000 rubles 
100% of nominal value 
13.09.2010 
open subscription 
1,092nd day from the date of placement 
(09.09.2013) 
6 
RU000A0JR126 
RU000A0JR126 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 

The first coupon yield of BO-02 series Exchange-traded bond issue was paid on March 
14, 2011. The total amount of yield paid on the first coupon amounted to 41.14 million rubles, 
the amount of yield of the first coupon paid per one bond amounted to 41.14 rubles. 

The  second  coupon  yield  of  BO-02  series  Exchange-traded  bond  issue  was  paid  on 
September  12,  2011.  The  total  amount  of  yield  paid  on  the  second  coupon  amounted  to  41.14 
million rubles, the amount of yield of the second coupon paid per one bond amounted to 41.14 
rubles. 

The third coupon yield of BO-02 series Exchange-traded bond issue was paid on March 
12, 2012. The total amount of yield paid on the third coupon amounted to 41.14 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 41.14 rubles. 

The  forth  coupon  yield  of  BO-02  series  Exchange-traded  bond  issue  was  paid  on 
September  10,  2012.  The  total  amount  of  yield  paid  on  the  forth  coupon  amounted  to  41.14 
million rubles, the amount of yield of the forth coupon paid per one bond amounted to 41.14 
rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  the  Exchange-traded  bonds  of  BO-02  series  varied  from  min  96.12% 
(06.12.2012)  to  max  100.3%  (20.04.2012,  26.04.2012,  05.10.2012)  of  the  nominal  value. 
Acknowledgeable  quote  within  this  period  fluctuated  from  min  99.87%  (12.04.2012)  to  max 
100.14% (08.08.2012, 29.11.2012, 30.11.2012, 03.12.2012, 04.12.2012). 

Bond issue of OJSC “Magnit” of BO-03 series: 

In 2010 the Company offered its investors the third Exchange-traded bond issue. 
Issue comprised 1.5 million securities with the nominal value of 1 thousand rubles. The 
maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-03 

 
 
 
 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

The  offering  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-03 series with the obligatory centralized custody of OJSC “Magnit” on 
the  MICEX  stock  exchange  commenced  on  September  13,  2010.  The  number  of  the  placed 
securities  amounted  to  1.5  million  bonds  which  constitutes  100%  of  the  total  number  of 
securities subject to placement. The bond issue was realized in full in the course of auction in 
the first day of placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-03 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-03-60525-P of February 02, 2010 
1,500,000,000 rubles 
1,500,000 bonds 
1,000 rubles 
100% of nominal value 
13.09.2010 
open subscription 
1,092nd day from the date of placement 
(09.09.2013) 
6 
RU000A0JR142 
RU000A0JR142 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 

The first coupon yield of BO-03 series Exchange-traded bond issue was paid on March 
14, 2011. The total amount of yield paid on the first coupon amounted to 61.71 million rubles, 
the amount of yield of the first coupon paid per one bond amounted to 41.14 rubles. 

The  second  coupon  yield  of  BO-03  series  Exchange-traded  bond  issue  was  paid  on 
September  12,  2011.  The  total  amount  of  yield  paid  on  the  second  coupon  amounted  to  61.71 
million rubles, the amount of yield of the second coupon paid per one bond amounted to 41.14 
rubles. 

The third coupon yield of BO-03 series Exchange-traded bond issue was paid on March 
12, 2012. The total amount of yield paid on the third coupon amounted to 61.71 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 41.14 rubles. 

The  fourth  coupon  yield  of  BO-03  series  Exchange-traded  bond  issue  was  paid  on 
September  10,  2012.  The  total  amount  of  yield  paid  on  the  fourth  coupon  amounted  to  61.71 
million rubles, the amount of yield of the fourth coupon paid per one bond amounted to 41.14 
rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  Exchange-traded  bonds  of  BO-03  series  varied  from  min  88.10  % 
(26.09.2012) to max 100.20% (18.04.2012, 16.08.2012, 29.10.2012) of the nominal value. There was 
no  acknowledgeable  quotation  within  this  period.  Acknowledgeable  quote  within  this  period 

 
 
fluctuated  from  min  99.42%  (26.06.2012  –  29.06.2012,  02.07.2012  –  05.07.2012)  to  max  100.20% 
(16.08.2012, 17.08.2012, 21.08.2012). 

Bond issue of OJSC “Magnit” of BO-04 series: 

In 2010 the Company offered its investors the fourth Exchange-traded bond issue. 
Issue  comprised  2  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
Maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-04 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-04 series with the obligatory centralized custody of OJSC “Magnit” on 
the  MICEX  stock  exchange  commenced  on  September  13,  2010.  The  number  of  the  placed 
securities amounted to 2 million bonds which constitutes 100% of the total number of securities 
subject to placement. The bond issue was realized in full in the course of auction in the first day 
of placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-04 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-04-60525-P of February 02, 2010 
2,000,000,000 rubles 
2,000,000 bonds 
1,000 rubles 
100% of nominal value 
13.09.2010 
open subscription 
1,092nd day from the date of placement 
(09.09.2013) 
6 
RU000A0JR159 
RU000A0JR159 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 
8.25 % 

The first coupon yield of BO-04 series Exchange-traded bond issue was paid on March 
14, 2011. The total amount of yield paid on the first coupon amounted to 82.28 million rubles, 
the amount of yield of the first coupon paid per one bond amounted to 41.14 rubles. 

The  second  coupon  yield  of  BO-04  series  Exchange-traded  bond  issue  was  paid  on 
September  12,  2011.  The  total  amount  of  yield  paid  on  the  second  coupon  amounted  to  82.28 
million rubles, the amount of yield of the second coupon paid per one bond amounted to 41.14 
rubles. 

The third coupon yield of BO-04 series Exchange-traded bond issue was paid on March 
12, 2012. The total amount of yield paid on the third coupon amounted to 82.28 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 41.14 rubles. 

 
 
 
 
The  fourth  coupon  yield  of  BO-04  series  Exchange-traded  bond  issue  was  paid  on 
September  10,  2012.  The  total  amount  of  yield  paid  on  the  fourth  coupon  amounted  to  82.28 
million rubles, the amount of yield of the fourth coupon paid per one bond amounted to 41.14 
rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  Exchange-traded  bonds  of  BO-04  series  varied  from  min  95.25% 
(06.12.2012) to max 100.91 % (29.08.2012) of the nominal value. Acknowledgeable quote within 
this  period  fluctuated  from  min  99.25%  (17.01.2012  -  20.01.2012,  23.01.2012)  to  max  100.54% 
(03.09.2012, 10.09.2012). 

Bond issue of OJSC “Magnit” of BO-05 series: 

In 2011 the Company offered its investors the fifth Exchange-traded bond issue. 
Issue  comprised  5  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
Maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-05 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-05 series with the obligatory centralized custody of OJSC “Magnit” on 
the MICEX stock exchange commenced on March 4, 2011. The number of the placed securities 
amounted to 5 million bonds which constitutes 100% of the total number of securities subject to 
placement.  The  bond  issue  was  realized  in  full  in  the  course  of  auction  in  the  first  day  of 
placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-05 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-05-60525-P of February 16, 2011 
5,000,000,000 rubles 
5,000,000 bonds 
1,000 rubles 
100% of nominal value 
04.03.2011 
open subscription 
1,092nd day from the date of placement 
(28.02.2014) 
6 
RU000A0JR9N3 
RU000A0JR9N3 
8.00 % 
8.00 % 
8.00 % 
8.00 % 
8.00 % 
8.00 % 
8.00 % 

The  first  coupon  yield  of  BO-05  series  Exchange-traded  bond  issue  was  paid  on 
September  2,  2011.  The  total  amount  of  yield  paid  on  the  first  coupon  amounted  to  199.45 
million  rubles,  the  amount  of  yield  of  the  first  coupon  paid  per  one  bond  amounted  to  39.89 
rubles. 

 
 
 
The  second  coupon  yield  of  BO-05  series  Exchange-traded  bond  issue  was  paid  on 
March 2, 2012. The total amount of yield paid on the second coupon amounted to 199.45 million 
rubles, the amount of yield of the second coupon paid per one bond amounted to 39.89 rubles. 

The third coupon yield of BO-05 series Exchange-traded bond issue was paid on August 
30, 2012. The total amount of yield paid on the third coupon amounted to 199.45 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 39.89 rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  Exchange-traded  bonds  of  BO-05  series  varied  from  min  98.35  % 
(16.02.2012,  02.03.2012)  to  max  99.75  %  (02.04.2012)  of  the  nominal  value.  Acknowledgeable 
quote within this period fluctuated from min 96.96% (10.01.12) to max 99.65% (28.12.2012). 

Bond issue of OJSC “Magnit” of BO-06 series: 

In 2011 the Company offered its investors the sixth Exchange-traded bond issue. 
Issue  comprised  5  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
Maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-06 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-06 series with the obligatory centralized custody of OJSC “Magnit” on 
the MICEX stock exchange commenced on April 26, 2011. The number of the placed securities 
amounted to 5 million bonds which constitutes 100% of the total number of securities subject to 
placement.  The  bond  issue  was  realized  in  full  in  the  course  of  auction  in  the  first  day  of 
placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-06 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-06-60525-P of February 16, 2011 
5,000,000,000 rubles 
5,000,000 bonds 
1,000 rubles 
100% of nominal value 
26.04.2011 
open subscription 
1,092nd day from the date of placement 
(22.04.2014) 
6 
RU000A0JRFQ4 
RU000A0JRFQ4 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 

 
 
 
 
The first coupon yield of BO-06 series Exchange-traded bond issue was paid on October 
25, 2011. The total amount of yield paid on the first coupon amounted to 193.2 million rubles, 
the amount of yield of the first coupon paid per one bond amounted to 38.64 rubles. 

The second coupon yield of BO-06 series Exchange-traded bond issue was paid on April 
24, 2012. The total amount of yield paid on the second coupon amounted to 193.2 million rubles, 
the amount of yield of the second coupon paid per one bond amounted to 38.64 rubles. 

The third coupon yield of BO-06 series Exchange-traded bond issue was paid on October 
23, 2012. The total amount of yield paid on the third coupon amounted to 193.2 million rubles, 
the amount of yield of the third coupon paid per one bond amounted to 38.64 rubles. 

Based on trading for the period from 03.01.2012 to 28.12.2012 the weighted average price 
of  transactions  with  Exchange-traded  bonds  of  BO-06  series  varied  from  min  96.72  % 
(11.01.2012)  to  max  99.8  %  (14.09.2012)  of  the  nominal  value.  Acknowledgeable  quote  within 
this period fluctuated from min 97.42% (19.01.2012, 20.01.2012) to max 99.27% (27.09.2012). 

Bond issue of OJSC “Magnit” of BO-07 series: 

In 2012 the Company offered its investors the seventh Exchange-traded bond issue. 
Issue  comprised  5  million  securities  with  the  nominal  value  of  1  thousand  rubles. 
Maturity of the issue is 3 years. The purpose of the issue of the exchange-traded bonds of BO-07 
series  was  to  attract  funds  to  finance  operating  activity  and  expansion  of  “Magnit”  group  of 
companies, to reduce the cost of credit portfolio as well as to build public credit history. 

Placement  of  the  certified  interest-bearing  non-convertible  Exchange-traded  bonds 
payable to bearer of BO-07 series with the obligatory centralized custody of OJSC “Magnit” on 
the  MICEX  stock  exchange  commenced  on  September  24,  2012.  The  number  of  the  placed 
securities amounted to 5 million bonds which constitutes 100% of the total number of securities 
subject to placement. The bond issue was realized in full in the course of auction in the first day 
of placement. 

Parameters of the bond issue of OJSC “Magnit” of BO-07 series: 

Date and the number of state registration 
Volume of the issue 
Number of securities 
Nominal value of each security 
Placement price 
Date of placement 
Method of placement 

Redemption date 

Number of coupons 
Trading code 
ISIN code 
Interest rate on the basis of the auction results 
1 coupon interest rate 
2 coupon interest rate 
3 coupon interest rate 
4 coupon interest rate 
5 coupon interest rate 
6 coupon interest rate 

№ 4B02-07-60525-P of August 10, 2011 
5,000,000,000 rubles 
5,000,000 bonds 
1,000 rubles 
100% of nominal value 
24.09.2012 
open subscription 
1,092nd day from the date of placement 
(21.09.2015) 
6 
RU000A0JT121 
RU000A0JT171 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 
7.75 % 

 
 
 
Based on trading for the period from 25.09.2012 to 28.12.2012 the weighted average price 
of  transactions  with  Exchange-traded  bonds  of  BO-07  series  varied  from  min  99.67% 
(01.11.2012) to max 101.25 % (02.11.2012) of the nominal value. Acknowledgeable quote within 
this  period  fluctuated  from  min  100.07%  (09.11.2012,  12.11.2012,  13.11.2012,  19.11.2012, 
20.11.2012) to max 100.87% (04.12.2012, 06.12.2012). 

SSHHAARREESS  TTRRAADDIINNGG 

The shares of OJSC “Magnit” entered the Russian stock market in April 2006. 
On April 14, 2006 the shares of OJSC “Magnit” were admitted to trading in the section of 
the  List  “Listed  securities  but  not  included  into  the  quotation  lists”  of  non-profit  partnership 
““Russian Trading System” Stock Exchange”. 

On April 24, 2006 trading of OJSC “Magnit” shares in the List of non-listed securities of 

Close joint-stock company “MICEX Stock Exchange” commenced. 

On April 28, 2006 the IPO of OJSC “Magnit” on the Russian Trading System (RTS) and 

the Moscow Interbank Currency Exchange (MICEX) was completed. 

The price of one share of OJSC “Magnit” in the course of offering on RTS and MICEX 
was  determined  on  the  level  of  27  USD.  Proceeds  from  the  stock  comprising  18.94%  of  the 
charter  capital  amounted  to  368,355  million  USD.  Deutsche  UFG  functioned  as  an  IPO 
coordinator;  foreign  investors  could  participate  by  purchasing  the  securities  of  “Magnit” 
according to the rule “S”. 

Since  December  11,  2007  the  shares  of  OJSC  “Magnit”  have  been  included  into  the 
Quotation list “B” of OJSC “Russian Trading System” Stock Exchange”. OJSC “Magnit” shares 
have been admitted to trading in the corresponding list on December 13, 2007. 

On December 21, 2007 OJSC “Magnit” shares were included in the quotation list “B” of 

CJSC “MICEX SE” and admitted to trading in the corresponding list. 

On  February  13,  2008  OJSC  “Magnit”  announced  its  intention  to  list  global  depositary 
receipts (“GDRs”) representing its ordinary shares on the London Stock Exchange in connection 
with  an  offering  by  the  Company  of  11,300,000  newly  issued  ordinary  shares  in  the  form  of 
GDRs  and  shares  (including  as  part  of  the  exercise  of  statutory  pre-emptive  rights  by  the 
existing shareholders of the Company and by a Company’s shareholder of ordinary shares in 
the form of shares and GDRs. 

The  offer  price  was  set  at  42.50  USD  per  share.  The  offer  price  in  ruble  terms  was  set 

based on the rate of 23.4450 rubles per dollar. 

A  total  of  9,719,638  shares  including  the  shares  in  the form  of  GDRs  were  allocated  to 
international institutional investors. In connection with the offering the selling shareholders has 
granted the joint bookrunners an over-allotment option to purchase up to an additional 506,585 
shares in the form of GDRs at the offer price per GDR which was exercised in full. 

Conditional dealings in the GDRs commenced on the London Stock Exchange on April 
16, 2008 (5 GDRs representing an interest in one share). Admission of the GDRs to the Official 
List of the UK Listing Authority occurred on April 22, 2008. 

Free  float  of  OJSC  “Magnit”  as  of  30.06.2008  amounted  to  35.48%.  Proceeds  from  the 
offering  amounted  to  approximately  480.25  million  USD  and  were  used  to  finance  further 
expansion of the Company’s chain of hypermarkets as well as to continue the expansion of its 
convenience store operations and further development of its logistics capabilities.  

 
 
 
 
 
In 2009 ordinary shares of the Company were included (transferred) into the Quotation 
list “A” of the second level at the Moscow Interbank Currency Exchange and “Russian Trading 
System” Stock Exchange”. 

On September 2, 2009 OJSC “Magnit” announced its intention to offer additional shares 

at 65 USD per ordinary share and 13 USD per GDR.  

A  total  of  5,680,000  newly  issued  ordinary  shares  in  the  form  of  GDRs  have  been 
allocated  to  international  institutional  investors, resulting  in  a  total  free float  of  46.51%  of  the 
Company’s issued share capital as of December 31, 2009. 

Gross proceeds to the Company from the follow-on offering amounted to approximately 
369.2 USD and were used to finance further expansion of its chain of hypermarkets as well as to 
continue  the  expansion  of  its  convenience  stores  operations  and  further  development  of  its 
logistic capabilities. 

Since November 14, 2010 shares of OJSC “Magnit” have been included (transferred) into 

the Quotation list “A” of the first level at the “Russian Trading System” Stock Exchange”. 

According to the Instruction of CJSC “MICEX Stock Exchange ” № 1387-p of 29.12.2010 
OJSC “Magnit” shares are included in (transferred to) the quotation list “A” of the first level of 
CJSC “MICEX Stock Exchange”. 

On  November  30,  2011  OJSC  “Magnit”  announced  its  intention  to  offer  newly  issued 
ordinary shares via an accelerated bookbuild placing to Russian and international institutional 
investors. 

In connection with the placement the Company has registered with the Russian Federal 

Financial Market Service 10,813,516 new shares to be placed through an open subscription. 

The  offer  price  in  the  Placement  has  been  set  at  US$  85  per  new  share.  Payments  for 

shares in rubles were made at an exchange rate of US$1 = RUB 30.8486. 

The  Company  placed  5,586,282  ordinary  shares  out  of  which  4,117,648  shares  were 
allocated to investors resulting in a free float of 53.83% of the Company’s issued share capital as 
of December 31, 2011. 

Gross  proceeds  to  the  Company  from  the  placement  of  additional  shares  amounted  to 
approximately  US$  475  mn  and  used  to  finance  its  capital  expenditure  program  aimed  at 
further expansion of its chain of hypermarkets as well as the expansion of its convenience store 
operations and the further development of its logistics capabilities. 

On  December  19,  2011  ordinary  shares  of  OJSC  “Magnit”  were  excluded  from  the 
Quotation  list  “A”  of  the  first  level  of  OJSC  “RTS  Stock  Exchange”  as  a  result  of  its 
reorganization through merger with CJSC MICEX. 

According to trading held from 01.01.2012 to 31.12.2012 on MICEX Stock Exchange the 
average weighted price of transactions with shares varied from min 2,854.7 rubles (04.01.2012) 
to max 4,866.4 (20.12.2012). 

The growth of OJSC “Magnit” shares in 2012 amounted to 69%. 

 
 
 
 
According to trading held from 01.01.2012 to 31.12.2012 on the London Stock Exchange 

the price of transactions with the global depositary receipts as of closing varied from min $21.30 
(05.01.2012) to max $40.10 (31.12.2012). 

The growth of OJSC “Magnit” global depositary receipts in 2012 amounted to 79%. 

Market capitalization of OJSC “Magnit” as of December 28, 2012 amounted to 456,929.92 

million rubles according to OJSC “MICEX SE”. 

 
 
 
1144..   TTRRAANNSSAACCTTIIOONNSS   EEXXEECCUUTTEEDD   WWIITTHHIINN   TTHHEE   YYEEAARR   22001122   CCOONNSSIIDDEERREEDD  
MMAAJJOORR   TTRRAANNSSAACCTTIIOONNSS   AACCCCOORRDDIINNGG   TTOO   TTHHEE   FFEEDDEERRAALL   LLAAWW   ““OONN   JJOOIINNTT--
SSTTOOCCKK  CCOOMMPPAANNIIEESS””    

During  the  year  2012  the  Company  did not execute  any  transactions considered  major 

transactions according to the Federal Law “On joint-stock companies”. 

 
1155..   TTRRAANNSSAACCTTIIOONNSS   EEXXEECCUUTTEEDD   WWIITTHHIINN   TTHHEE   YYEEAARR   22001122   CCOONNSSIIDDEERREEDD  
RREELLAATTEEDD--PPAARRTTYY   TTRRAANNSSAACCTTIIOONNSS   AACCCCOORRDDIINNGG   TTOO   TTHHEE   FFEEDDEERRAALL   LLAAWW   OONN  
““JJOOIINNTT--SSTTOOCCKK  CCOOMMPPAANNIIEESS””    

1 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  per  cent  of  the  issuer’s 
balance  sheet  assets  as  of  the  termination  date  of 
the  last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other information on transaction indicated at the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

195,000  

0.33 

01.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

none 

2 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, %  
Term 
for 
transaction 

fulfillment  of  obligations  under 

195,000  

0.33 

02.06.2012 

 
  
on 

fulfillment 

of  mentioned 

Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings)  
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

3 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

195,000  

0.33 

03.06.2012 

for 

related-party 

fulfillment  of  obligations  under 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles.  
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, %  
for 
Term 
transaction  
Information 
obligations  
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings)  
Other  information  on  transaction  indicated  at  the 
issuer’s discretion  
4 
Date of transaction 
Subject  and  essentials  of  transactionSubject  and 
essentials of transaction 

of  mentioned 

fulfillment 

on 

Parties of transactionParties of transaction 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

none 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
terms, 
rubles.Transaction  amount 
thousand rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 

in  money 

for 

195,000  

0.33 

Joint-Stock Company “Tander” (JSC "Tander") 

 
on 

fulfillment  of  obligations  under 

last  accounting  period  preceding  the  date  of 
transaction, %  
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings)  
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

None 

04.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

5 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

195,000  

0.33 

05.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

6 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Joint-Stock Company “Tander” (JSC "Tander") 

 
 
  
195,000  

0.33 

08.06.2012 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

7 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

195,000  

0.33 

09.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

8 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

 
  
Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

195,000  

0.33 

10.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

9 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

195,000  

0.33 

11.06.2012 

10 
Date of transaction 

12.01.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

  
 
Subject and essentials of transaction 

Parties of transaction 

Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

150,000 

0.25 

06.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

11 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

83,700 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the None 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

0.14 

on 

07.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

 
issuer’s discretion 

12 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.01.2012 
Provision  of  the  interest-bearing  loan  by  the
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

111,300 

0.19 

12.06.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on June 23, 2011, 
minutes № w/n of June 23, 2011. 

None 

13 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

21.02.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

10,000  

0.02 

21.03.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 

 
 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 

The 
the 
transaction  was  approved  by 
extraordinary general shareholders’ meeting on 
December 8, 2011, minutes № w/n of December 
8, 2011. 

Other information on transaction indicated at the 
issuer’s discretion 

None 

14 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.02.2012 
Provision  of  the  non-living  premises,  located 
at  34  B,  Lenina  Avenue,  Marks,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

21,600 

0.04 

27.02.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on December 22, 2011, minutes № w/n 
of December 22, 2011. 

None 

15 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.02.2012 
Provision  of  the  non-living  premises,  located 
at  2,  Kirpichnaya  Street,  Sochi,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 33,600 

related-party 

for 

Joint-Stock Company “Tander” (JSC "Tander") 

  
 
fulfillment  of  obligations  under 

rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

0.06 

28.02.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on December 22, 2011, minutes № w/n 
of December 22, 2011. 

None 

16 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

02.03.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 

125,000  

0.21 

11.03.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The 
the 
transaction  was  approved  by 
extraordinary general shareholders’ meeting on 
December 8, 2011, minutes № w/n of December 
8, 2011. 

Other information on transaction indicated at the 
issuer’s discretion 

None 

17 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

11.03.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

 
  
Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other information on transaction indicated at the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

100,000  

0.17 

10.03.2012 

The  Lender´s  and  the  Borrower’s  obligations 
are fulfilled on time. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

18 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

19.03.2012 
Provision  of  the  non-living  premises,  located 
at  32/1  Sukhumi  Road/Golmana  Street,  
Novorossiisk,    Russia,  for  payment  into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

16,680 

0.03 

18.03.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on February 3, 2012, minutes № w/n of 
February 3, 2012. 

none 

 
19 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

19.03.2012 
Provision  of  the  non-living  premises,  located 
at  29  Sedina  Street,  Ivanovskaya  stanitsa,  
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander") 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

10,200 

0.02 

18.03.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on February 3, 2012, minutes № w/n of 
February 3, 2012. 

None 

20 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.03.2012 
Provision  of  the  non-living  premises,  located 
at 61 Moskovskaya Street, Tsimliansk,  Rostov 
the 
Region,  Russia, 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

into 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 

for 

17,400 

0.03 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

  
 
28.03.2022 

on 

fulfillment 

fulfillment  of  obligations  under 

transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

None 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  3,  2012,  minutes  №  w/n  of 
April 3, 2012. 

21 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

30.03.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

277,000 

0.46 

29.03.2015 

22 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 

related-party 

for 

The Lender´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

02.04.2012 
Provision  of  the  non-living  premises,  located 
at  14  Lenina  Street,  Kalach,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED 

“Tander” 

(JSC 

 
 
12,720 

0.02 

01.04.2022 

transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on February 3, 2012, minutes № w/n of 
February 3, 2012. 

None 

23 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

06.04.2012 
Provision  of  the  non-living  premises,  located 
at  21a  Tsentralnyi  lane,  Zimovniki  village, 
Rostov  Region,  Russia,  for  payment  into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

41,040 

0.07 

05.04.2022 

24 
Date of transaction 

11.04.2012 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  3,  2012,  minutes  №  w/n  of 
April 3, 2012. 

None 

 
 
Subject and essentials of transaction 

Parties of transaction 

Provision  of  the  non-living  premises,  located 
street,  Pereslavl-
at  39B  Oktiabrskaya 
Zalessky,  Russia, 
into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 
25 
Date of transaction 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

33,336 

0.06 

10.04.2022 

Subject and essentials of transaction 

Parties of transaction 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

36,240 

0.06 

19.04.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting on February 3, 2012, minutes № w/n of 
February 3, 2012. 

None 

20.04.2012 
Provision  of  the  non-living  premises,  located 
at  12  Erzi  boulevard,  Saransk,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

The Lessor’s obligations are fulfilled. 

Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The  transaction  was  approved  by  the  BOD 
meeting  on March  26,  2012,  minutes  № w/n  of 
March 26, 2012. 

26 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

23.04.2012 
Provision  of  the  non-living  premises,  located 
at  build.2,  2  Yubileinaya  street,  Schekino,  the 
Tula  Region,  Russia,  for  payment  into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

16,800 

0.03 

22.04.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

27 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

25.04.2012 
Provision  of  the  non-living  premises,  located 
at  77  Ogorodnaya  street,  Saratov,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 26,400 

related-party 

for 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
 
fulfillment  of  obligations  under 

rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

0.04 

24.04.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

28 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.04.2012 
Provision  of  the  non-living  premises,  located 
at 18 Karl Marks street, Zernograd, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

69,444 

0.12 

27.04.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

29 
Date of transaction 

Subject and essentials of transaction 

28.04.2012 
Provision  of  the  non-living  premises,  located 
at 72 V. Klochkova street, Saratov, Russia, for 
payment  into  the  temporary  possession  and 

 
 
 
Parties of transaction 

use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

51,600 

0.09 

27.04.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

30 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.04.2012 
Provision  of  the  non-living  premises,  located 
at  18  Mezhdunarodnaya  street,  Saratov, 
into  the  temporary 
Russia, 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Joint-Stock Company “Tander” (JSC "Tander"; 
LAVRENO LIMITED) 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

40,080 

0.07 

27.04.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

31 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

02.05.2012 
Provision  of  the  non-living  premises,  located 
at  39  Kirova  street,  Mozdok,  the  Kabardino-
Balkarian  Republic,  Russia,  for  payment  into 
the temporary possession and use to the Lessee 
by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

79,200 

0.13 

01.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

none 

32 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

04.05.2012 
Provision  of  the  non-living  premises,  located 
at 27 Shkolnaya street, Elektrougli, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 

for 

42,000 

0.07 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

 
 
on 

fulfillment  of  obligations  under 

last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

None 

03.05.2022 

The Lessor’s obligations are fulfilled. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  3,  2012,  minutes  №  w/n  of 
April 3, 2012. 

33 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

05.05.2012 
Provision  of  the  non-living  premises,  located 
at  239  Sovietskoy  Armii  street,  Armavir, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

24,000 

0.04 

04.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

34 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.05.2012 
Provision  of  the  non-living  premises,  located 
at  36a  Rubezhnaya  street,  Vyborg,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

 
 
Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

53,760 

0.09 

11.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on March  26,  2012,  minutes  № w/n  of 
March 26, 2012. 

None 

35 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.05.2012 
Provision  of  the  non-living  premises,  located 
at 27 Sevastopolskaya street, Azov, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

18,312 

0.03 

11.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

 
 
36 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

17.05.2012 
Provision  of  the  non-living  premises,  located 
at  118  Mira  street,  Labinsk,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

24,240 

0.04 

16.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

None 

37 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

22.05.2012 
Provision  of  the  non-living  premises,  located 
at  7B  Zhilaya  street,  Astrakhan,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 

fulfillment  of  obligations  under 

36,000 

0.06 

21.05.2022 

 
on 

fulfillment 

of  mentioned 

Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

38 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

23.05.2012 
Provision  of  the  non-living  premises,  located 
at  85  Lenina  street,  Belorechensk,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

14,400 

0.02 

22.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

39 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

24.05.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 100,000 

related-party 

for 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
 
 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 

fulfillment  of  obligations  under 

0.17 

23.05.2015 

Information 
obligations 

on 

fulfillment 

of  mentioned 

Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The  Lender´s  obligations  are  fulfilled  on  time. 
Deadline  for  the  fulfillment  of  the  obligations 
of the Borrower to repay the loan is not due. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

40 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.05.2012 
Provision  of  the  non-living  premises,  located 
at  20  Truzhenikov  street,  Rostov-on-Don, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

26,160 

0.04 

27.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

41 
Date of transaction 

Subject and essentials of transaction 

29.05.2012 
Provision  of  the  non-living  premises,  located 
at  138  Kalinina  street,  Krasnodar,  Russia,  for 

  
 
Parties of transaction 

payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

30,240 

0.05 

28.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 
April 20, 2012. 

None 

42 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.05.2012 
Provision  of  the  non-living  premises,  located 
at  12  Gidrostroiteley  street,  Krasnodar, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

36,600 

0.06 

28.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 

 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

April 20, 2012. 

43 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.05.2012 
Provision  of  the  non-living  premises,  located 
at  20A  Kislovodskaya  street,  Essentuki, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

39,600 

0.07 

28.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

44 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.05.2012 
Provision  of  the  non-living  premises,  located 
at  72  Mira  street,  Smolenskaya  stanitsa,  
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 0.02 

related-party 

for 

12,600 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
 
fulfillment  of  obligations  under 

balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

None 

28.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 
April 20, 2012. 

45 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

30.05.2012 
Provision  of  the  non-living  premises,  located 
at 198 Uralskaya street, Krasnodar, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

47,424 

0.08 

29.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 
April 20, 2012. 

None 

46 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

31.05.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal Joint-Stock 

Company 

“Tander” 

(JSC 

 
 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 

fulfillment  of  obligations  under 

2,150,000 

3.57 

29.05.2015 

Information 
obligations 

on 

fulfillment 

of  mentioned 

Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The  Lender´s  obligations  are  fulfilled  on  time. 
The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

47 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

31.05.2012 
Provision  of  the  non-living  premises,  located 
at 11a Ordzhonidze street, Pyatigorsk, Russia, 
for payment into the temporary possession and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

104,400 

0.17 

30.05.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

none 

 
 
 
48 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

04.06.2012 
Provision  of  the  non-living  premises,  located 
at  106A  Lenina  street,  Zheleznovodsk,  Russia, 
for payment into the temporary possession and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

61,080 

0.1 

03.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

49 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

07.06.2012 
Provision  of  the  non-living  premises,  located 
at 55 Zvezdnaya street, Astrakhan, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 

fulfillment  of  obligations  under 

50,160 

0.08 

06.06.2022 

 
 
on 

fulfillment 

of  mentioned 

Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

50 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

5  Tobolskaya 

07.06.2012 
Provision  of  the  non-living  premises,  located 
street,  Novorossiisk, 
at 
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

49,200 

0.08 

06.06.2022 

51 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

07.06.2012 
Provision  of  the  non-living  premises,  located 
at 62/2 Anapskoe Shosse/Lunacharskogo street, 
Novorossiisk,  Krasnodar  region,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 

“Tander” 

(JSC 

 
 
LAVRENO LIMITED 

for 

the 

related-party 

person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

128,528.4 

0.21 

06.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

52 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

164A  Vidova 

07.06.2012 
Provision  of  the  non-living  premises,  located 
street,  Novorossiisk,  
at 
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

53 

24,000 

0.04 

06.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

 
 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

07.06.2012 
Provision  of  the  non-living  premises,  located 
at  66  Engelsa  street,  Novorossiisk,  Krasnodar 
region, Russia, for payment into the temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Joint-Stock Company “Tander” (JSC "Tander"; 
LAVRENO LIMITED) 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

33,600 

0.06 

06.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

54 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

08.06.2012 
Provision  of  the  non-living  premises,  located 
at  89  Sovetskaya  street,  Akhtyrskiy  village, 
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 

fulfillment  of  obligations  under 

13,800 

0.02 

07.06.2022 

 
on 

fulfillment 

of  mentioned 

Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

55 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

08.06.2012 
Provision  of  the  non-living  premises,  located 
at  29A  Budennogo  street,  Ilovlia  workers’ 
settlement, Ilovlia Region, Russia, for payment 
into  the  temporary  possession  and  use  to  the 
Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

22,560 

0.04 

07.06.2022 

56 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 

related-party 

for 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

09.06.2012 
Provision  of  the  non-living  premises,  located 
at  25  Fadeeva  street,  Krymsk,  Krasnodar 
region, Russia, for payment into the temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED 

“Tander” 

(JSC 

 
 
22,800 

0.04 

08.06.2022 

transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

57 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

15.06.2012 
Provision  of  the  non-living  premises,  located 
at 38 Kosmonavtov street, Lipetsk, Russia, for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

56,805.6 

0.09 

14.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

58 
Date of transaction 
Subject and essentials of transaction 

20.06.2012 
Provision  of  the  non-living  premises,  located 

 
 
Parties of transaction 

for  payment 

at  3A  Ostrovskogo  street,  Novokuibyshevsk, 
into  the  temporary 
Russia, 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

36 840 

0,06 

19.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 
April 20, 2012. 

None 

59 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

21.06.2012 
Provision  of  the  non-living  premises,  located 
at  116  Kutuzovskaya  street,  Novorossiisk, 
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

22,320 

0.04 

20.06.2022 

The Lessor´s obligations are fulfilled on time. 

 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

60 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

23.06.2012 
Provision  of  the  non-living  premises,  located 
at  45  Komsomolskaya  street,  Kamyshin, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

19,500 

0.03 

22.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

61 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

25.06.2012 
Provision  of  the  non-living  premises,  located 
at  28a,  28  Kommunisticheskiy  prospect, 
Kurchatov,  Russia,  for  payment  into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 16,920 

related-party 

for 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
 
fulfillment  of  obligations  under 

rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

0.03 

24.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

62 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

26.06.2012 
Provision  of  the  non-living  premises,  located 
at  21a  Sovietskikh  Kosmonavtov  street, 
Dmitriev,  Russia, 
into  the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

18,474 

0.03 

25.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

63 
Date of transaction 

Subject and essentials of transaction 

27.06.2012 
Provision  of  the  non-living  premises,  located 
at  15  Lenina  street,  Praskoveya  village, 

 
 
Parties of transaction 

for  payment 

Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

31,302 

0.05 

26.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

None 

64 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

27.06.2012 
Provision  of  the  non-living  premises,  located 
at  71  Gorkogo  street,  Kanevskaya  stanitsa, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

27,943.2 

0.05 

26.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 

 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

May 17, 2012. 

65 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

street,  Vyselki 

28.06.2012 
Provision  of  the  non-living  premises,  located 
stanitsa,  
at  57  Lenina 
Krasnodar region Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

52,800 

0.09 

27.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

66 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.06.2012 
Provision  of  the  non-living  premises,  located 
at  34B  Lenina  street,  Marks,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 0.04 

related-party 

for 

22,620 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
  
fulfillment  of  obligations  under 

balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

None 

27.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

67 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.06.2012 
Provision  of  the  non-living  premises,  located 
at  95a  Zhukova  prospect,  Volgograd,  Russia, 
for payment into the temporary possession and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

60,000 

0.1 

27.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

68 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

29.06.2012 
Provision  of  the  non-living  premises,  located 
at  18  Stroiteley  prospect,  Engels,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  

  
 
The Lessee: JSC "Tander" 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

58,920 

0.1 

28.06.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  June  13,  2012,  minutes  №  w/n  of 
June 13, 2012. 

None 

69 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

02.07.2012 
Provision  of  the  non-living  premises,  located 
at  52  Oktyabrskaya  street,  Dolzhanskaya 
stanitsa,  Russia, 
the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

into 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

14,400 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the None 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

0.02 

on 

01.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

  
issuer’s discretion 

70 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

04.07.2012 
Provision  of  the  non-living  premises,  located 
at  40  Lenina  street,  Starominskaya  stanitsa, 
Krasnodar region, Russia, for payment into the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

49,524 

0.08 

03.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

71 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

05.07.2012 
Provision  of  the  non-living  premises,  located 
at  59B  51st  Gvardeiskoy  street,  Volgograd, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 

for 

47,400 

0.08 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

 
 
04.07.2022 

on 

fulfillment 

fulfillment  of  obligations  under 

transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

None 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

72 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

05.07.2012 
Provision  of  the  non-living  premises,  located 
at  59B  51st  Gvardeiskoy    street,  Volgograd, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

27,840 

0.05 

04.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

73 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

05.07.2012 
Provision  of  the  non-living  premises,  located 
street,  Pavlovskaya 
at 
48  Sovietskaya 
stanitsa,  Krasnodar 
for 
region,  Russia, 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

 
 
Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

06.07.2012 
Provision  of  the  non-living  premises,  located 
at  191  Lazorevaya  street,  Volgograd,  Russia, 
for payment into the temporary possession and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 
74 
Date of transaction 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

Subject and essentials of transaction 

Parties of transaction 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

75 

25,380 

0.04 

04.07.2022 

40,560 

0.07 

05.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

None 

 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.07.2012 
Provision  of  the  non-living  premises,  located 
at  29  Kirova  street,  Armavir,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

17,160 

0.03 

11.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting on July 6, 2012, minutes № w/n of July 
6, 2012. 

None 

76 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

12.07.2012 
Provision  of  the  non-living  premises,  located 
at  13a  Golubye  Dali  street,  Adlerskiy  Region, 
Sochi, Russia, for payment into the temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 

fulfillment  of  obligations  under 

fulfillment 

on 

66,854.4 

0.11 

11.07.2022 

of  mentioned The Lessor´s obligations are fulfilled on time. 

 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

None 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

77 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

18.07.2012 
Provision  of  the  non-living  premises,  located 
at 11 Frunze street, Kazan, Russia, for payment 
into  the  temporary  possession  and  use  to  the 
Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

93,844.8 

0.16 

17.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  June  13,  2012,  minutes  №  w/n  of 
June 13, 2012. 

none 

78 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

18.07.2012 
Provision  of  the  non-living  premises,  located 
at  23  Proizvodstvennaya  street,  Sovkhozniy 
village,  Russia, 
the 
temporary possession and use to the Lessee by 
the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

into 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

Company 

“Tander” 

(JSC 

 
 
12,720 

0.02 

17.07.2022 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  12,  2012,  minutes  №  w/n  of 
April 12, 2012. 

79 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

20.07.2012 
Provision  of  the  non-living  premises,  located 
at  5  Kominterna  street,  Ramenskoe  village, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

31,200 

0.05 

19.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

none 

80 
Date of transaction 

Subject and essentials of transaction 

20.07.2012 
Provision  of  the  non-living  premises,  located 
at  429  Mira  street,  Stavropol,  Russia,  for 

 
 
Parties of transaction 

payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

44,760 

0.07 

26.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  May  17,  2012,  minutes  №  w/n  of 
May 17, 2012. 

none 

81 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

25.07.2012 
Provision  of  the  non-living  premises,  located 
at  182  Krymskaya  street,  Anapa,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

44,280 

0.07 

24.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting on July 6, 2012, minutes № w/n of July 

 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

6, 2012. 

none 

82 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

25.07.2012 
Provision  of  the  non-living  premises,  located 
at  28  Lenina  street,  Priozersk,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

Company 

“Tander” 

(JSC 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED 

for 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

fulfillment  of  obligations  under 

of  mentioned

fulfillment 

on 

28,200 

0.05 

24.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  3,  2012,  minutes  №  w/n  of 
April 3, 2012. 

none 

83 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

27.07.2012 
Provision  of  the  non-living  premises,  located 
at  2/1  Privokzalnaya  street,  Novocherkassk, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 

for  payment 

related-party 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 
Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 

for 

28,800 

0.05 

Company 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 

“Tander” 

(JSC 

 
  
on 

fulfillment  of  obligations  under 

last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

none 

26.07.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  June  13,  2012,  minutes  №  w/n  of 
June 13, 2012. 

84 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

4,080,000 

6.79 

28.11.2015 

06.08.2012 
Provision  of  guarantee  to  the  contract  on  the 
revolving  credit  facility  №120529/0249018  of 
May 29, 2012. 
The  Lender:  commercial 
“Rosbank” (open joint-stock company), 
The Guarantor: OJSC “Magnit”, 
 The Beneficiary: JSC “Tander”. 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

joint-stock  bank 

Company 

“Tander” 

(JSC 

The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

85 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

08.08.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 

 
 
 
Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Company 

Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

“Tander” 

(JSC 

100,000 

0.17 

07.08.2015 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

17.08.2012 
Provision  of  guarantee  to  the  contract  on  the 
opening  of  revolving  credit  facility  №5574  of 
17.08.2012.  
The  Lender:  Sberbank  of  Russia  Open  joint-
stock company 
 The Guarantor: OJSC "Magnit"  
The beneficiary: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

86 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

1,250,000 

2.08 

14.08.2018 

The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

 
  
 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

87 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

20,000 

0.03 

23.08.2015 

88 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of
transaction, % 
Term 

for 

50,000 

0.08 

fulfillment  of  obligations  under 03.09.2015 

24.08.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

none 

04.09.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

 
 
  
 
on 

fulfillment 

of  mentioned 

transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

89 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

2,720,000 

4.53 

29.02.2016 

none 

of 

credit 

revolving 

06.09.2012 
Provision  of  guarantee  to  the  contract  on  the 
opening 
facility
№120831/0249018 of 31.02.2012.  
joint-stock  bank 
The  Lender:  commercial 
“ROSBANK”  (open  joint-stock  company)  The 
Guarantor: OJSC "Magnit"  
The beneficiary (The Borrower): JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

90 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 

related-party 

for 

18.09.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 

Company 

“Tander” 

(JSC 

  
 
 
transaction 

GUMOSKI ENTERPRISES LIMITED 

100,000 

0.17 

17.09.2015 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  BOD 
meeting  on  March  7,  2012,  minutes  №  w/n  of 
March 7, 2012. 

91 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

4,999,250 

8.32 

29.03.2015 

25.09.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

92 
Date of transaction 
Subject and essentials of transaction 

07.11.2012 
Provision  of  the  interest-bearing  loan  by  the 

 
  
 
  
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

73,000 

0.11 

06.11.2015 

93 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 

related-party 

for 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

for  payment 

08.11.2012 
Provision  of  the  non-living  premises,  located 
at  44,  Gvardeiskaya  street,  Dimitrovgrad, 
Russia, 
into  the  temporary 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

“Tander” 

(JSC 

55,200 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on The  transaction  was  approved  by  the  BOD 

The Lessor´s obligations are fulfilled on time. 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

07.11.2022 

0.08 

on 

 
 
 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

meeting on July 6, 2012, minutes № w/n of July 
6, 2012. 

94 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

49,400 

0.08 

22.11.2015 

none 

95 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 0.05 

32,400 

23.11.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

02.12.2012 
Provision  of  the  non-living  premises,  located 
at  20,  Molodezhniy  lane,  Samara,  Russia,  for 
payment  into  the  temporary  possession  and 
use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

“Tander” 

(JSC 

 
 
 
 
fulfillment  of  obligations  under 

balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

01.12.2022 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting  on  April  20,  2012,  minutes  №  w/n  of 
April 20, 2012. 

96 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

04.12.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 

1,900 

0.003 

Term 
for 
transaction 

fulfillment  of  obligations  under 

03.12.2015 

on 

fulfillment 

of  mentioned 

Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

97 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 

06.12.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 

Company 

“Tander” 

(JSC 

 
 
 
person considered 
transaction 

related-party 

for 

the 

LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

25,000 

0.04 

05.12.2015 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

98 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

33,000 

0.05 

13.12.2015 

99 
Date of transaction 

20.12.2012 

14.12.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The Lender’s obligations are fulfilled. 

The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

 
 
 
 
Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

16,500 

0.03 

19.12.2015 

Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 

Company 

“Tander” 

(JSC 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

100 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

27.12.2012 
Provision  of  the  interest-bearing  loan  by  the 
Company. 
The Lender: OJSC "Magnit"  
The Borrower: JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 
TOMIANA INVESTMENTS LIMITED; 

Company 

“Tander” 

(JSC 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
for 
Term 
transaction 
Information 
obligations 

fulfillment  of  obligations  under 

of  mentioned 

fulfillment 

on 

4,610,000 

7.06 

27.07.2013 

The  Lender’s  obligations  are  fulfilled.  The 
Borrower’s obligations have not been matured. 

 
 
 
 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

none 

The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

101 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

28.12.2012 
Provision  of  guarantee  to  the  “Revolving 
credit 
contract  №108-
credit 
facility” 
ВKL/КRD-12 of 14.12.2012. 
The Lender: commercial joint-stock bank 
“Absolut Bank” (joint-stock company); 
The Guarantor:  OJSC "Magnit"  
The beneficiary (Borrower): JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 
TOMIANA INVESTMENTS LIMITED; 

“Tander” 

(JSC 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

1,250,000 

1.91 

31.07.2013 

102 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
the 
person considered 

related-party 

for 

The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

for  payment 

29.12.2012 
Provision  of  the  non-living  premises,  located 
at  12,  Gidrostroiteley  street,  Krasnodar, 
into  the  temporary 
Russia, 
possession and use to the Lessee by the Lessor. 
The Lessor: OJSC "Magnit"  
The Lessee: JSC "Tander" 
Joint-Stock 
Company 
"Tander"); 
LAVRENO LIMITED; 

“Tander” 

(JSC 

 
 
 
transaction 

GUMOSKI ENTERPRISES LIMITED 
TOMIANA INVESTMENTS LIMITED; 

29,232 

0.04 

28.12.2022 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

none 

The Lessor´s obligations are fulfilled on time. 

The  transaction  was  approved  by  the  BOD 
meeting on November 22, 2012, minutes № w/n 
of November 22, 2012. 

103 
Date of transaction 

Subject and essentials of transaction 

Parties of transaction 

Full  and  short  firm  name  (names)  of  the  legal 
entity  or  surname,  name,  patronymic  name  of  a 
person considered 
the 
transaction 

related-party 

for 

fulfillment  of  obligations  under 

Transaction  amount  in  money  terms,  thousand 
rubles. 
Transaction  amount  in  percent  of  the  issuer’s 
balance  sheet  assets  as  of  termination  date  of  the 
last  accounting  period  preceding  the  date  of 
transaction, % 
Term 
for 
transaction 
Information 
obligations 
Issuer’s  authority  which  made  a  decision  on 
approval of the transaction, date of decision (date 
and number of minutes of proceedings) 
Other  information  on  transaction  indicated  at  the 
issuer’s discretion 

of  mentioned 

fulfillment 

on 

196,000 

0.3 

27.12.2013 

29.12.2012 
Provision  of  guarantee  to  the  Additional 
Agreement  №  7  of  29.12.2012  to  the  bank 
account contract №0249018/RUB of 25.10.2007. 
The  Lender:  commercial 
joint-stock  bank 
“ROSBANK” (open joint-stock company)  
The Guarantor: OJSC "Magnit"  
The beneficiary (The Borrower): JSC "Tander" 
Joint-Stock 
"Tander"); 
LAVRENO LIMITED; 
GUMOSKI ENTERPRISES LIMITED 
TOMIANA INVESTMENTS LIMITED; 

Company 

“Tander” 

(JSC 

The  Borrower’s  obligations  have  not  been 
matured. 
The  transaction  was  approved  by  the  annual 
general shareholders’ meeting on May 28, 2012, 
minutes № w/n of May 28, 2012. 

none 

 
 
1166..  MMAAIINN  RRIISSKK  FFAACCTTOORRSS  IINNHHEERREENNTT  IINN  TTHHEE  ССOOMMPPAANNYY’’SS  OOPPEERRAATTIIOONN  

Since  OJSC  “Magnit”  and  its  subsidiaries  operate  within  one  group  of  companies  -  OJSC 
“Magnit” (hereafter - “the Group”, “Magnit” retail chain”, “the Company” or “the Issuer“), the 
description of risks to the greater extent is provided for the entire Group. 
The description of risk factors provided herein is not complete, it only reflects the view 
of  the  Company  and  its  individual  assessment.  Apart  from  the  risks  specified  in  this 
report, other risks which are not included in this report may negatively affect the cost of 
investments  in  the  shares  of  OJSC  “Magnit”.  Other  risks,  including  those  which  the 
Company is not aware of or which it considers immaterial at the present time, may lead 
to the decrease of earnings, increase of expenses or other events and (or) consequences, 
in the result of which the price of the Company’s securities may fall. 
In  case  one  or  several  risks  hereof  occur,  OJSC  “Magnit”  will  take  all  possible  measures  to 
minimize the effect of negative changes. Today it is impossible to determine specific acts of the 
Company if any out of the provided risks occur because the elaboration of measures adequate 
to  the  corresponding  events  is  complicated  due  to  uncertainty  of  the  situation  in  future. 
Parameters of the taken measures will depend on the specific situation on a case-by-case basis. 
OJSC  “Magnit”  cannot  guarantee  that  the  measures  taken  to  overcome  negative  changes  will 
remedy the situation, as the majority of the described risks are beyond the Company’s control. 

Risk Management Policy of the Company 
The Company and the Group apply systematic approach to risk management. The key elements 
of the risk management policy in each area are: 
Risk identification 
Assessment methodology 
Elaboration and implementation of risk management framework 
Ongoing monitoring of risks 
Risk management is carried out in respect of the entire Group. 
In respect of the industry risks the mid and long-term assessment of the industry is made based 
on  the  macroeconomic  forecasts  of  the  Ministry  of  Economic  Development  and  Trade  and 
investment  analysts.  The  assessment  covers  the  future  demand  based  on  the  forecasts  of  the 
population incomes and the level of consumption. The assessments includes industry trends in 
respect  of  various  channels,  segmentation  of  demand  by  channels  and  competitive 
environment. 
Based on the analysis the strategy of development is worked out to strengthen the competitive 
position and increase the market share of the Company. 
In  respect  of  the  country  and  regional  risks,  the  Company  monitors  political  and  economic 
situation and estimates the level of risk of acts of elements, possible disruption of transportation 
in the regions of “Magnit” stores’ presence. Territorial diversification of operation of “Magnit” 
group of companies contributes to additional reduction of these risks. 
In respect of the financial risks, the level of interest rate, currency, credit and liquidity risks is 
estimated. 
Interest  risk  is  managed  by  means  of  choosing  the  most  optimal  financing  methods  and 
matching  of  timing  of  mobilization  of  resources  with  the  timing  of  the  projects  which  are 
financed by them. To optimize the resources the Company develops its credit history, expands 
the data base of potential creditors and diversifies instruments to receive the funds.  
The  reduction  of  cost  of  the  received  resources  is  achieved  due  to  the  policy  aiming  at 
improvement of the information transparency. One of the tools of interest risk management is 

 
 
the forecasting the changes of interest rates and assessment of the appropriate leverage level of 
the Company adjusted for this possible change of interest rates. 
In respect of the currency risk, the Company estimates forecasts of the analysts on the possible 
change  of  the  exchange  rates  and  makes  decisions  on  the  acceptable  amount  of  assets  and 
liabilities in the foreign currency. 
In respect of the liquidity risks, the Company and the Group in general maintain well-balanced 
ratio of assets and liabilities in terms of timing. 
In respect of credit risks, the Company analyzes financial position of counteragents and applies 
the system of limits. 
Legal  risks  management  is  based  on  the  strict  compliance  with  the  applicable  Russian 
legislation.  Legal  department  monitors  all  changes  in  legislation  concerning  the  Company’s 
activity, and conducts legal examination of all contracts and agreements.  

IINNDDUUSSTTRRYY  RRIISSKKSS  

Risks related to the consumer demand and competition 

Negative changes of macroeconomic conditions and decrease of consumer demand in Russia 
may negatively affect sales and income of the Group 
The Group operates in the FMCG retail sector. 
The development of the retail sector, in which the Group operates, in many aspects depends on 
macroeconomic  factors  because  the  demand  for  the  consumer  goods  is  conditioned  by  the 
disposable income of population. 
In  case  of  economic  instability  the  decrease  of  the  real  disposable  income  of  population  may 
lead to weaker dynamics of growth and profitability of the industry. It should be noted that the 
state of the Russian economy is conditioned a lot by the oil price and other energy and mineral 
resources on the world market. The reduction of prices on the mineral resources will negatively 
influence  the  economy  of  the  Russian  Federation  overall  due  to  prevailing  share  of  the  raw 
material component in the GDP. Deterioration of the economic situation will also result in the 
decline of the effective demand in the country. 
Consumer demand on the markets where the Group operates depends on the number of factors 
which  are  beyond  the  Group’s  control,  including  demographic  factors,  consumer  preferences 
and  their  purchasing  power.  The  decline  of  the  consumer  demand  or  the  change  of  the 
consumer preferences may significantly reduce sales and income of the Group and negatively 
influence  the  business  activity,  financial  condition  and  the  results  of  the  Group  and  the 
Company. Besides, seasonality of the consumer demand may lead to considerable fluctuations 
of the Group’s results in different periods of time. 
High  level  of  competition  may  lead  to  the  decline  of  the  Group’s  market  share  and 
the reduction of its revenue. 
As of December 31, 2012 the Group operates in 7 federal districts in more than 1,605 cities and 
towns  of  the  Russian  Federation  with  the  highest  concentration  in  the  Southern,  North-
Caucasian, Central and Volga regions. Magnit stores also operate in the North-West, Urals and 
Siberian  regions.  Retail  market  of  the  Southern  Federal  district  is  competitive  enough  and  is 
represented  by  most  of  the  large  Russian  players  as  well  as  by  the  number  of  foreign 
companies.  
Russian retail is characterized by a high level of competition. The Group competes with a the 
significant  number  of  Russian  and  international  companies.  In  recent  years  the  growth  of 
consumer demand in Russia has attracted new market participants and resulted in the increase 

 
 
 
of  competition.  Retail  chains  compete  with  each  other  primarily  on  the  ground  of  the  store 
locations,  product  quality,  service  and  price,  product  mix  and  store  conditions.  Entrance  of 
additional  players  to  the  Russian  market  may  further  intensify  competition  and  reduce  the 
efficiency of the Group. Main competitors of the Group in “the convenience store” format are 
“Pyaterochka”  and  “Dixy”,  while  in  “the  hypermarket”  format  these  are  “Auchan”, 
“Perekrestok”, “Karusel”, “Lenta”, “O’key”. The Group also competes with regional and local 
retail chains, individual groceries and open markets.  
Some  of  the  Group’s  competitors  which  are  present  on  the  market  today,  and  also  those 
planning  to  enter  the  Russian  market,  are  large  international  companies  and  have  better 
opportunities  to  mobilize  the  resources  than  the  Group.  Moreover,  many  other  international 
players  including  those with  better  financial  and  other  opportunities  vs.  the  Group  will enter 
the Russian market in the nearest years through acquisition of local players or building up their 
own greenfield networks. 
If the above process is intensive, competition may substantially increase, which may negatively 
influence the market share of the Group and its competitive position. The ability of “Magnit” 
retail  chain  to  retain  its  competitive  position  depends  on  its  opportunities  to  maintain  and 
adjust  the  existing  stores  and  open  new  stores  in  favorable  locations,  as  well  as  to  offer 
competitive  prices  and  services.  There  is  no  guarantee  that  the  Group  will  be  able  to 
successfully compete with the existing or new competitors in future. 
At  the  current  stage  of  competitive  activity  considerable  risks  for  the  Group  are  also 
linked to the fact that the main competitors of the Group use more aggressive methods, 
such  as  winning  the  additional  target  markets  through  expansion  of  franchising 
schemes.  Such  approach  enables  the  competitors  to  expand  their  presence  rapidly  in 
many  regions  of  Russia  as  well  as  to  considerably  reduce  the  costs  of  the  new  store 
openings. Non-use of the franchising schemes by the Group which may lead to serious 
reduction  of  flexibility  in  geographical  coverage,  and  as  a  result  to  the  loss  of  a 
considerable market share. 
These factors together with the economic environment and strategy of the discount pricing may 
lead to further competition intensification and negatively affect business, financial position and 
operational results of the Group and the Company. 

Risks related to the intensive growth. 

Failure of the Group’s strategy of intensive expansion may hamper its further growth. 
As of December 31, 2012 the stores operating under “Magnit” brand are located in the 
Southern  Federal  district  (1,531),  Central  Federal  district  (1,692),  Volga Federal  district 
(2,142),  North-Caucasian  Federal  district  (375),  North-Western  Federal  district  (504), 
Urals Federal district (550) and Siberian Federal district (90).  
Following its strategy the Group plans to considerably increase the number of its stores 
in  the  above  regions  maintaining  the  same  development  rates  as  well  as  to  further 
expand  its  chain  in  a  number  of  subjects  of  Russian  Federation.  The  development 
strategy of the Group makes it dependent on the economic conditions and some other 
factors. 
The  successful  roll-out  of  the  Group’s  development  strategy  depends  on  its  ability  to 
identify  and  acquire  the  suitable  premises  or  land  plots  for  store  construction  on 
commercially reasonable terms, to open new stores in due time in compliance with the 

 
 
Group standards, to employ, train and keep extra store and management personnel and 
to  integrate  new  stores  into  the  Group’s  existing  operation  on  a  profitable  basis.  It  is 
impossible to guarantee that the Group will achieve the target growth and that the new 
stores will profit. Among other factors, the development strategy plans also depend on 
the  general  economic  situation,  availability  of  financing  and  no  negative  changes  in 
legislation. There is no guarantee that operational, administrative, financial and human 
resources will be  sufficient for successful  implementation of the Group’s development 
strategy.  Moreover, there  is  no  guarantee  that  the  expansion  plans,  if  carried  out,  will 
have no negative impact on the quality of service and sales profitability. 
Expansion  of  the  Group  through  acquisition  of  other  companies  or  their  assets  may  be 
fraught  with  different  risks  which  may  have  serious  negative  impact  on  the  economic 
activity of the Group and its financial position. 
The  Group  does  not  rule  out  the  possibility  to  expand  its  operation  through  acquisitions. 
Acquisition  opportunities  presuppose  certain risks,  including  failure  to  identify  the  objectives 
for  acquisition,  and/or  to  carry  out  adequate  complex  inspection  of  their  operation  and/or 
financial  position,  financial  risks  and  operation  expenses  which  may  be  considerably  higher 
than the estimated ones. Moreover, there is a risk of incapability to assimilate the operation and 
employees  of  the  acquired  companies,  deficiency  of  installation  and  integration  of  all  the 
required  systems  and  control,  the  risk  of  customer  loss,  as  well  as  the  risk  of  entering  the 
markets, where the Group has no or minor experience, and/or markets with the limited access 
to  the  necessary  logistic  support  and  distribution  network,  as  well  as  the  risk  of  business 
interruption  and  diffusion  of  the  Group  management  resources.  If  the  Group  is  not  able  to 
successfully  integrate  its  acquisitions,  such  failures  may  have  a  material  negative  effect  on  its 
financial position and results of operation. 

Failure to raise enough funds may prevent the Group from realization of its expansion plans. 
Implementation  of  the  Group’s  expansion  strategy  may  require  large  capital  expenditures. 
There’s  no  guarantee  that  the  operational  cash  flow  of  the  Group  and/or  borrowings  from 
financial institutions or proceeds received from the stock market would be enough to finance its 
scheduled expenses in the nearest future. If the Group fails to raise enough funds to finance its 
capital expenditures, there is risk of reduction or cease of expansion. 

Rapid growth of the Group may lead to deficiency of administrative, industrial and financial 
resources. 
Historically volume of the Group’s operations has been growing fast. The growth is expected to 
continue  in  the  projected  future  which  may  lead  to  the  significant  lack  of  administrative, 
operational and financial resources. As a result, “Magnit” retail chain will have particularly to 
continue the improvement of its operational and financial systems, administrative management 
and  techniques.  The  Group  will  also  have  to  achieve  strict  coordination  of  operation  of 
transportation,  technical,  accounting,  legal,  financial,  marketing,  warehouse  and  store 
personnel. If the Group fails to manage the above tasks, its operation and financial position may 
seriously suffer. 
Moreover, the Group may experience difficulties with application, expansion and improvement 
of  its  management  information  system  due  to  the  ongoing  growth.  If  the  Group  fails  to 
maintain its management information system, financial accounting and in-house audit systems 
at a proper level, its economic activity and financial position may substantially suffer. 
There is a risk of target audience reduction in the course of time. Gradual increase/decrease of 
population income may lead to the attrition of “Magnit” chain customers, and as a result to the 

 
 
material  negative  effect  on  the  Group.  The  Russian  food  retail  market  is  subject  to  changing 
customers’ preferences, needs and trends. The Group’s target audience is mainly the consumers 
with  low  or  medium  income  level.  If  the  level  of  disposable  consumer  income  continues  to 
grow  nationwide  (either  generally  or  in  certain  federal  districts,  especially  in  the  Southern 
Federal District where the Group collects a larger share of the total revenue), the Group may not 
be  able  to  adjust  quickly  enough  the  product  assortment  in  the  stores  to  the  changes  in 
consumer trends, and thus will lose a part of its target audience. As a result of such changes, the 
number of customers shopping at “Magnit” stores may decline (or increase more slowly than 
previously), or the average ticket in “convenience” format may decline (or increase more slowly 
than previously), which would have a material adverse effect on business, results of operation, 
financial position and prospects of the Group. 

Risks related to investments in and lease of real estate. 

Lack  of  reliable  information  about  the  real  estate  market  in  Russian  Federation  makes  it 
difficult to estimate the value of the real estate owned by the Group. 
The  amount  of  reliable  public  information  and  research  concerning  the  real  estate  market  in 
Russia is limited. The volume of the available data is not that comprehensive and complete as 
similar  data  on  the  real  estate  market  in  other  industrially  developed  countries.  The  lack  of 
information makes it difficult to assess the market value and the rent price of the real estate in 
Russia. Therefore, there is no confidence that the price set to the real estate of the Group reflects 
its market value. 

The value of Group’s investments into real estate may decline. 
The Group in whole and the Company in particular make substantial investments into the real 
estate for store premises. The market of any goods including commercial property is subject to 
fluctuations. Market value of the real estate may decline or grow due to different factors, i.e.: 
changes in the competitive environment; 
changes of the attractiveness level of the real estate on the Russian market in general and on the 
regional markets where the property objects of the Company are located due to the changes of 
the country and regional risks; 
fluctuations of the demand for commercial real estate. 
As  a  result  of  any  negative  changes  on  the  real  estate  market,  the  value  of  the  real  estate 
acquired by the Company or its subsidiaries may decline and thus negatively affect the assets’ 
value  of  the  Group.  Thus,  in  case  of  disposal  of  such  property  the  Group  won’t  be  able  to 
compensate its acquisition costs, what may negatively affect the financial position of the Group 
and the Company. 

Inability to obtain rights on the suitable real estate object on commercially reasonable terms, 
to  protect  rights  of the Group for the  real  estate  or  to  construct  new  stores  on the  acquired 
land  plots  may  have  a  material  adverse  effect  on  the  economic  operation  and  financial 
position of the Group. 
Ability  of  the  Group  to  open  new  stores  largely  depends  on  identification  and  lease  and/or 
acquisition  of  the  premises  appropriate  for  its  needs  on  commercially  reasonable  terms.  The 
property  market  in  large  cities  of  Russia  is  highly  competitive,  and  in  conditions  of  favorable 
economic environment the competition for and therefore the cost of high quality land plots may 
increase. However, there’s no guarantee that the Group will manage to exercise it in the future. 

 
 
 
 
 
If due to any reason, including competition from the third parties seeking similar land plots and 
premises, the Group is not able to identify and obtain the new objects in due time, the Group’s 
anticipated  growth  will  be  negatively  affected.  Even  after  the  Group  procures  rights  on  the 
suitable  land  plots  and  premises,  it  may  experience  difficulties  or  delays  when  obtaining 
permissions from various regional authorities, required for the exercise of the Group rights to 
use,  renovate  or  reequip  the  stores.  Therefore,  there’s  no  guarantee  that  the  Group  will 
successfully identify, lease and/or purchase the suitable property objects on acceptable terms or 
upon the necessity. 

Failure to renew lease contracts for the stores or extend them on reasonable terms may have 
materially adverse effect on the economic activity and financial position of the Group. 
There  can  be  no  guarantee  that  the  Group  will  be  able  to  extend  the  lease  contracts  on 
reasonable terms, and even that there will be the opportunity itself to extend the lease contracts 
as they expire, the share of which is large enough. If the Group is not able to extend the lease 
contracts for its stores as they expire or lease another suitable objects on reasonable terms, or if 
the actual lease contracts of the Group are terminated for any reason (including loss of right on 
such objects by the lessor), or if the contract terms are revised in the prejudice of the Group, it 
may have a negative impact on its financial position and operation results. 

Deficiency  of  professional  building  contractors  may  negatively  affect  the  development 
strategy of the Group. 
The ability of the Group to construct and update specially constructed new stores is extremely 
important  for  its  strategy  and  commercial  success.  The  Group  operates  in  the  markets  which 
face  the  deficiency  of  highly-skilled  contractors  able  to  build  new  stores  in  due  time  and  in 
compliance with standardized requirements of the Group. There’s no guarantee that the Group 
will  be  able  to  find  the  properly  trained  and  experienced  team  of  designers  for  building  and 
launching new stores in due time. Failure of the Group to construct and develop new stores on 
the newly acquired land plots may have a substantial negative impact on its potential to follow 
its strategy and to achieve the required financial position and operation results. 

Dispute of the Group’s rights for the real estate or cessation of the Group’s projects 
for  new  stores’  construction  may  have  materially  adverse  effect  on  the  economic 
activity and financial position of the Group. 
Group’s activity includes obtaining ownership and lease rights for land plots and premises for 
the  new  stores.  In  addition,  the  Group  owns  buildings  and  facilities  where  its  offices  are 
located.  Russian  land  and  property  legislation  is  complex  and  often  ambiguous,  and  may 
contain contradictory provisions at the federal and regional levels. In particular, it is not always 
clear  which  state  authority  is  entitled  to  lend  particular  land  plots,  besides  the  procedures  of 
construction approval are complex and subject to challenge or complete abolition. Construction 
and environmental regulations often contain the requirements which are in practice impossible 
to meet in full. As a result, ownership and lease rights of the Group for land plots and premises 
may  be  challenged  by  governmental  authorities  and  third  parties,  and  thus,  its  construction 
projects may be delayed or cancelled. 
Under  Russian  law,  real  estate  transactions  may  be  disputed  on  many  grounds,  including 
ineligibility  of  the  property  seller  or  right  holder  to  dispose  such  property,  breach  of  internal 
corporate requirements of  the counterparty  and failure  to register  the  transfer  of  rights  in  the 
unified  state  register.  As  a  result,  violations  in  previous  real  estate  transactions  may  lead  to 

 
 
 
invalidation  of  such  transactions  with  individual  property  objects,  and  thus,  may  affect  the 
rights of the Group for this property. 
Moreover, Russian law does not require certain encumbrances over real estate (including leases 
for  less  than  one  year  and  uncompensated  use  agreements)  to  be  registered  with  the  unified 
state register to legally validate the charge. In addition, the time limits within which the charge 
liable  for  registration  in  the  unified  state  register  should  be  entered  into  this  register,  are  not 
stipulated in the law. Therefore, there is always a risk that the third parties may register at any 
moment  or  claim  the existence  of encumbrances  (of  which  the  Group  had  not  been  aware  of) 
over the real estate of the Group whether owned or leased. 

Risks related to the increase of costs 

Unionization  of  the  Group  employees  may  have  a  material  adverse  effect  on  its 
financial position and operation results. 
At  the  present  time  the  majority  of  Group  employees  do  not  league  any  labor  unions.  If  the 
considerable  part  of  Group  employees  league  labor  unions,  it  may  substantially  affect  the 
payroll  costs  of  the  Group  and/or  settlement  of  labor  conflicts,  and  as  a  result  may  have  a 
substantial negative impact on financial position and operation results of the Group.  

Risks related to the possible fluctuations of the prices for raw materials, services applied by 
the  Group  within  its  activity  (separately  on  the  internal  and  external  markets),  and  their 
influence on the Group’s activity and its fulfillment of obligations on the securities: 
The Company and the Group operate only on the Russian internal market. The Company and 
the Group do not operate on or plan to expand into the external market. The information about 
the risks described refers to the internal market. 

The increase of the Group’s expenses may have a material adverse effect on its profitability. 
The operating efficiency of the Company and its subsidiaries largely depend on the prices for 
the products purchased for the retail sale, as well as on the prices for the services used by them 
in  their  operation  and  on  the  amount  of  rent  payment  for  movable  and  real  property  and 
construction,  acquisition  and  opening  costs.  Changes  in  the  agreement  processes  and 
procedures  of  obtaining  rights  for  the  land  plots  (including  lease  right),  fluctuations  of  the 
norms and regulations applicable to the Group activity, town-planning, tax and environmental 
legislations in particular, may entail the increase of new opening costs or costs for the use of the 
premises, as well as the increase of the payback period of the stores. 
The  growth  of  the  Group’s  expenses  may  affect  its  profitability.  The  growth  of  the 
purchase  prices,  the  installation  costs,  the  price  for  land  plots  (other  real  estate)  and 
amount  of  rent  payment,  as  well  as  the  growth  of  employees’  wages  may  lead  to  the 
substantial  growth  of  the  Group’s  expenses,  and  thus,  seriously  affect  the  Company 
profitability in case if the Group is not able to adequately increase the sale prices due to 
low  purchasing  capacity  of  the  population  in  particular.  Since  the  retail  chain  of  the 
Group  while  working  with  one  of  the  most  economical  formats  mainly  targets  at 
customers with the income below the average, the Group is substantially subject to the 
above risk. Decrease of profitability may negatively affect the ability of the Company’s 
relevant  authority  to  decide  on  the  payment  of  yield  on  the  securities  and  the  market 
value of the Company’s securities as well as affect the fulfillment of obligations on the 
placed bonds in full. 

 
 
 
 
Risks related to the possible fluctuations of the prices on products and/or services of 
the  Company  (separately  on  the  domestic  and  foreign  markets),  and  their  influence 
on the Company’s activity and its fulfillment of obligations on the securities: 
The Company and the Group operate only on the Russian local market. The Company 
and  the  Group  do  not  operate  on  or  plan  to  expand  into  the  foreign  market.  The 
information about the risks described refers to the internal market. 

The reduction of prices for products at “Magnit” stores may lead to the profitability decrease 
of the Group. 
Changes  of  product  prices  at  “Magnit”  stores  are  largely  determined  by  changes  of  purchase 
prices of the Group. The Group is doing their best not to increase the mark up for the products. 
Product price changes may affect the level of purchasing capacity of the population. The price 
growth  is  mainly  forecasted  within  the  inflation,  which  as  well  affects  the  decrease  of  the 
purchasing  capacity  of  the  population.  The  deterioration  of  macroeconomic  environment  and 
decrease  of  the  purchasing  capacity  of  the  population  may  also  lead  to  the  decline  of  selling 
prices. If the purchase prices are less reduced than the selling prices, it will lead to the decline of 
Group profitability. The dramatic deterioration of macroeconomic situation and intensification 
of competition may force “Magnit” chain to cut the prices for products in order to maintain the 
target turnover growth and market share, which may also lead to the profitability decline. 

The assumed actions of the Company in case of industrial fluctuations: 

In case one or several risks arise the Company will undertake all possible measures to reduce 
the effect of the existing fluctuations. It deems impossible to determine the specific measures of 
the  Group  regarding  any  risk  hereof,  as  it  is  hard  to  work  out  adequate  measures  due  to 
uncertainty of further situation development. The character of the applied actions will depend 
on the specific situation of every case. The Company cannot guarantee that the activities taken 
to overcome negative fluctuations will lead to considerable changes in the situation, as most of 
the risks hereof are out of the Company’s control. 
In case of situation deterioration in the industry sector the Company plans: 
if  possible,  to  further  expand  its  operation  in  order  to  reduce  the  prime  cost  of  goods  and 
diversify some risks; 
to carry out the diversification between the most and the least perspective stores and to cut the 
most unattractive stores; 
to  extend  the  territory  of  its  operation  by  choosing  the  most  profitable  regions  of  Russian 
Federation in terms of growth prospects; 
to carry out adequate changes in pricing policy for maintaining the demand for goods on the 
necessary level; 
to optimize the expenses; 
to  continue  engaging  of  highly-skilled  specialists  as  well  as  to  enter  into  agreements  with 
reliable  specialists  only,  counteragents,  contractors,  which  will  allow  to  minimize  risks  and 
carry  out  the  detailed analysis  of  the  scheduled  operation  of  the  Company in  order  to reduce 
the prime cost of the investments, minimize the expenses’ structure and receive more profit. 

 
 
 
 
  
CCOOUUNNTTRRYY  AANNDD  RREEGGIIOONNAALL  RRIISSKKSS  

The  Company  and  JSC  “Tander”  (the  main  operating  company  of  the  Group  which  controls 
trading assets and is the Group’s center of revenue consolidation) are registered as a tax-payer 
in  the  Southern  Federal district, Krasnodar. As  of  December 31,  2012  the  Group  operates  in 7 
federal  districts  in  1,605  locations  of  the  Russian  Federation.  The  Group  does  not  operate 
outside the Russian Federation. 
As the Group operates  in the Russian Federation, the main  country and regional risks 
affecting the operation of the Group and the Company are the risks within the Russian 
Federation.  However,  due  to  the  globalization  of  the  world  economy,  considerable 
deterioration of the economic  situation  in the world may lead to the serious economic 
recession in Russia and as a result to the reduction of demand for consumer goods. 
Despite the fact that during the last few years all public spheres in Russia saw positive changes, 
i.e.  the  economy  grew,  some  positive  political  stability  was  achieved,  Russia  is  still  the  state 
with the rapidly developing and changing political, economic and financial systems. The risks 
of  the  industrial  production  decline,  inflation,  the  increase  of  the  national  debt,  negative 
dynamics  of  the  currency  exchange  rates,  increase  of  unemployment,  etc.,  have  significantly 
increased within the global financial and economic crisis. All this may lead to the drop in the 
living  standards  in  the  country  and  negatively  affect  the  operation  of  the  Group,  as  the  main 
target  customers  of  the  “Magnit”  chain  are  people  with  average  income  and  income  below 
average.  Apart  from  the  risks  of  economic  character,  Russia  is  subject  to  the  political  and 
regulatory risks to a greater extent than other countries with the developed market economy. 

Political risks: 

Political instability in Russia may have a negative effect on the investments in the country as 
well as on the price for the Company’s shares. 
Since  1991  Russia  has  moved  from  one  party  state  with  the  centralized  planned  economy  to 
democratic state with the market economy. Russian political system remains vulnerable to the 
public  discontent  and  disorders  among  individual  social  and  ethnic  communities.  Substantial 
political instability may have a considerable negative effect on the value of foreign investments 
into Russia including the price for the Company’s shares. 
Changes  in  the  government,  major  political  changes  and  lack  of  consensus  between  different 
branches of government and economic groups may also lead to disruption or converse turn of 
economic,  political  and  judicial  reforms.  Any  significant  contradictions  on  the  course  of  the 
future  reforms,  breakdown  or  resignation  of  reform  policy,  political  instability  and  rise  of 
conflicts between powerful economic groups may negatively affect the operation of the Group, 
its financial results and development prospects as well as the value of investments into Russia 
and the price for the Company’s shares. 

Reconsideration  of  reforms  or  state  policy  in  respect  of  some  individuals  may  have  an 
adverse negative effect on Company’s business and on the investment potential of Russia. 
During the presidential term of Vladimir Putin and after the election of Dmitry Medvedev the 
political and economic situation in Russia has generally become more stable and favorable for 
investors.  After  the  election  of  Vladimir  Putin  to  the  presidency  in  March  2012  the  situation 
remained  stable.  However  any  political  discussions  over  the  course  of  future  reforms  or 
reconsideration of the existing reforms may lead to deterioration of Russian investment climate 

  
 
 
 
that  may  limit  the  ability  of  the  Group  to  receive  financing  on  the  international  financial 
markets,  reduce  Company’s  sales  in  Russia  or  otherwise  negatively  affect  Group’s  business, 
operation results, financial position and prospects.  
In  the  recent  past  our  law-enforcement  authorities  have  opened  cases  against  some  Russian 
companies,  their  officials  and  shareholders  for  tax  evasion  and  related  tax  violations.  Some 
cases  resulted  in  the  imprisonment  and  repayment  of  understated  taxes.  Reportedly,  such 
companies  were  Yukos,  TNK-BP  and  Vimpelcom.  Some  analysts  consider  that  such 
prosecutions demonstrate a willingness to reconsider key political and economic reforms of the 
recent  decade.  Other  analysts, however, believe that these  prosecutions are isolated  cases and 
do not signal any deviation from large-scale political or economic reforms. 

Conflicts  between  federal  and  regional  authorities  and  other  conflicts  may  set  an 
unfavorable economic environment which may have an adverse effect on the operation and 
financial position of the Group. 
Distribution  of  powers  between  federal  and  regional  authorities,  as  well  as  between  different 
authorities  on  the  federal  level  in  some  cases  remains  obscure.  Therefore,  Russian  political 
system  is  subject  to  certain  internal  contradictions  and  conflicts  between  federal  and  regional 
authorities  regarding  different  issues,  particularly,  tax  collection,  property  right  for  land, 
powers  to  regulate  individual  industry  sectors  and  regional  autonomy.  Conflicts  between 
different authorities may have serious adverse effect on the price of the Company’s shares. 
Besides,  ethnical,  religious  and  other  segregations  periodically  provoke  public  tension  and 
sometimes result into conflicts including the armed ones. For example, the continuous conflict 
in Chechnya negatively affected economic and political situation in Chechnya, the neighboring 
regions  and  Russia  on  the  whole.  Terrorist  activity  and  counter  measures  aimed  at  the 
elimination of violence, particularly by imposing emergency rule in certain territorial subjects of 
the  Russian  Federation  may  have  an  adverse  negative  effect  on  the  potential  of  Russian 
business  on  the  whole  and  Group  performance  in  particular,  especially,  taking  into 
consideration the significant scale of Group’s operation in the Southern federal district. 

Social  instability  may  lead  to  frustration  among  population,  induce  the  call  for  powers’ 
change, outbreaks of nationalism or violence. 
Failure  of  the  Russian  government  to  adequately  address  social  problems  led  in  the  past  and 
may  lead  in  the  future  to  frustration  among  population.  Such  frustration  may  have  social, 
economic and political consequences, e.g. call for the change of powers, growth of nationalism 
enhanced  by  the  call  for  property  nationalization,  expropriation  and  constraints  on  overseas 
property in Russia, as well as the increase of violence. Any of the above may have an adverse 
negative effect on confidence in Russia’s social environment and investment potential, restrict 
our  operations  and  lead  to  the  losses  or  otherwise  affect  Group’s  business,  operation  results, 
financial position and prospects. 

Economic risks: 

Deterioration  of  the  economic  situation  in  the  Southern  Federal  district  may  arise  from  the 
substantial changes in the economic situation in Russia, including dramatic fluctuations of the 
national  currency  exchange  rate,  which  may  result  in  the  reduction  of  the  number  of  the 
roundabout  industrial  enterprises  and  agriculture  of  all  forms  of  ownership,  unemployment 
growth,  decrease  of  the  purchasing  power  of  population.  Such  a  scenario  may  lead  to  the 
interruption of the investment program of the Group, slowdown of Group development rates 

 
 
 
 
on the territory of the Southern Federal district and other regions of the Russian Federation, as 
well as the slowdown of the revenue base growth. 
Economic  instability  in  Russia  may  affect  the  consumer  demand  which  may  have  a  serious 
negative impact on the Company’s business. 
Any of the risks provided herein previously experienced by the Russian economy may 
seriously  influence  the  investment  climate  in  Russia  and  the  Company’s  activity. 
Russian economy suffered from the following negative events in the past: 
Significant declines in GDP; 
Hyperinflation; 
Currency instability; 
High ratio level of state debt/GDP; 
Weak  banking  system  which  provides  Russian  enterprises  with  the  limited 

liquidity; 
Large amount of unprofitable enterprises which continue to operate due to deficiency of 
effective bankruptcy procedure; 

Wide use of barter and non-liquid bills in settlements of commercial transactions; 
Prevalent practice of tax evasion; 
Growth of black economy; 
Continuous capital outflow; 
High  level  of  corruption  and  penetration  of  the  organized  crime  into  the 

economy; 

Serious growth of unemployment and underemployment level; 
Low living standards of the substantial part of the Russian population 

Russian  economy  faced  abrupt  downturns.  In  particular,  the  period  of  rapidly  deteriorating 
economic situation after August 17, 1998 when government defaulted on its ruble-denominated 
bonds,  the  Central  Bank  of  Russia  stopped  to  support  the  ruble,  and  temporary  restrictions 
were imposed on certain foreign currency payments. These actions resulted in immediate and 
severe ruble devaluation and sharp increase of inflation rate, dramatic decline of Russian share 
and  bonds  quotes  as  well  as  failure  of  the  Russian  issuers  to  raise  funds  on  the  international 
capital markets. 
The  problems were  aggravated  by almost  a  complete  collapse  of  Russian  banking  sector  after 
the events of August 17, 1998, which is proved by the recall of banking licenses of a number of 
Russian top banks. This even more reduced the opportunity of banking sector to provide stable 
liquidity to Russian companies and resulted in the widespread loss of bank deposits.  
Crisis  of  bank  liquidity  and  consequently  possible  substantial  reduction  of  legally 
capable  units  of  the  credit  and  financial  systems,  substantial  appreciation  of  the 
borrowed  resources  which  will  result  in  economy  growth  slowdown,  rise  of 
unemployment level and significant increase of the inflation rate are possible effects of 
crisis  situations  in  the  global  and  European  economy.  Moreover,  fluctuations  of  the 
world prices for oil and gas, ruble weakening to US dollar and other currencies, as well 
as consequences of monetary policy regression or other factors may in future negatively 
affect Russian economy and Group’s business, especially its expansion plans. 

Physical  infrastructure  of  Russia  is  in  extremely  poor  condition  which  may  lead  to 
interruptions in the effective financial and economic activity. 

 
 
 
 
 
 
 
 
 
 
 
 
 
Physical  infrastructure  of  Russia  was  mainly  set  up  in  the  soviet  times  and  has  not  been 
adequately  funded  and  maintained  in  the  recent  years.  The  rail  and  road  networks,  power 
generation  and  transmission,  communication  system  and  building  stock  were  particularly 
affected. Electricity and heat deficiency in some regions of Russia dramatically disrupted their 
economies. Condition of roads throughout Russia is also improper, and many of them do not 
meet the minimum requirements of safety standards. 
Deterioration of Russian physical infrastructure damages the national economy, disrupts goods 
and cargo transportation, adds costs to business activity in Russia and may lead to interruptions 
in financial and economic activity thus negatively affecting the business of the Group and price 
of the Company’s shares. 

The  fluctuations  of  global  economy  may  negatively  affect  the  economy  of  Russia, 
limiting  the  access  of  the  Company  to  the  capital  and  negatively  influencing  the 
purchasing  power  of  the  final  consumers  of  the  products  sold  by  “Magnit”  chain 
stores. 
Russian economy is vulnerable to market downturns and economic slowdowns in other 
countries of the world. According to former practice, financial problems or exacerbated 
perception  of  investment  risks  in  the  countries  with  developing  economy  may  reduce 
the volume of foreign investments in Russia, thus affecting Russian economy. As Russia 
produces  and  exports  large  volume  of  natural  gas,  oil  and  other  energy  and  mineral 
resources,  Russian  economy  is  especially  vulnerable  to  commodity  prices,  and  decline 
in  such  prices  may  slowdown  or  shake  the  economic  development  of  Russia.  These 
events may severely limit Group’s access to the capital and have a negative effect on the 
purchasing power of the Group’s consumers. 

Social risks: 

Social instability may lead to the increased support of resumption of the statism, nationalism 
and violation, having serious negative effect on the opportunities of the Group to effectively 
operate its business. 
Social  instability  may  lead  to  the  increased  support  of  resumption  of  the  statism,  nationalism 
and violation, having serious negative effect on the opportunities of the Company to effectively 
operate  its  business.  Inability  of  the  government  and  many  private  companies  to  pay  out  the 
wages  in  time,  and  altogether  deceleration  of  wages  and  benefits  vs.  rapidly  growing  living 
costs, led in the past and may lead in the future to labor and social disorders. Similar actions, 
labor  and  social  disorders  may  have  negative  political,  social  and  economic  consequences 
including the nationalism growth, imposing limitations on the foreign involvement in Russian 
economy  and  the  violence  growth.  All  of  the  events  above  may  lead  to  the  restrictions  on 
activity of the Group and loss of its profits. 

Crime  and  corruption  may  have  an  adverse  negative  effect  on  the  operation  and  financial 
position of the Group. 
According to the reports of the local and international press, the level of the organized criminal 
activity has considerably grown. Additionally, diverse publications indicate that some members 
of  the  Russian  media  regularly  publish  biased  articles  for  remuneration.  The  Group  activity 
may be affected by illegal actions, corruption and accusation of the Group of illegal operation 
and therefore have a negative impact on the Group’s operation and price of Company’s shares. 

 
 
 
 
Risks related to the fiscal policy of the Government of the Russian Federation: 
The  Company  pays  taxes  to  the  federal,  regional  and  local  budgets.  Within  the  economy 
transformation there is a risk of changes of the enterprise activity tax treatment. Tax legislation 
and peculiarities of tax accounting in Russia often change and bear ambiguous interpretation. 
The process of tax legislation reforming has not been completed yet. In case of stiffening of the 
tax legislation and increase of tax burden, the financial position of the Group may deteriorate. 

Prospective  measures  of  the  Company  in  case  if  changes  of  the  situation  in  the 
country and region have negative effect on the Group’s operation. 

The  majority  of  the  above  risks  of  economic,  political  and  legal  character  are  out  of  the 
Company’s control due to the global scale of the threat they present. 
The Companies of the Group have reached the certain level of financial stability which helps to 
overcome  the  short-term  negative  economic  fluctuations  in  the  country.  In  case  if  significant 
political and economic instability which will negatively affect the operation and the profit of the 
Group  arises  in  Russia,  the  Company  plans  to  undertake  comprehensive  measures  of  crisis 
management aiming at mobilization of business and maximum reduction of the negative effect 
of  political  and  economic  situation  in  the  country  and  region  on  the  business  of  the  main 
companies of the Group. 
It deems impossible to determine the specific measures of the Group regarding any risk 
hereof,  as  it  is  hard  to  work  out  adequate  measures  due  to  uncertainty  of  further 
situation development. The character of the applied actions will depend on the specific 
situation of every case. Company cannot guarantee that the activities taken to overcome 
negative  fluctuations  will  lead  to  considerable  change  in  the  situation  as  most  of  the 
risks hereof are out of the Company’s control. 
However,  in  case  of  negative  effect  of  the  country  and  regional  fluctuations  on  the  Group’s 
operation, the Company plans to carry out the following common arrangements to maintain the 
Group’s profitability: 
if possible, to save main assets until the situation improves; 
to  undertake  measures  focused  on  the  life  support  of  the  Group  employees  and  on  its 
productivity; 
to carry out adequate pricing adjustments to keep up the demand on the products on the proper 
level; 
to  optimize  the  expenses,  including  measures  on  purchasing  prices  reduction  and  wages 
expenses limitation; 
to revise the program of capital investment. 
To  minimize  the  risks  related  to  the  force  majeure  circumstances  (military  conflicts,  riots, 
natural disasters, state of emergency) the Company reflects the possibility of such events within 
its contract activity. 
The  Company  acts  under  paragraph  401  of  the  Civil  Code  of  the  Russian  Federation  which 
states that the person who does not exercise the obligations due to force majeure circumstances 
provided herein does not bear responsibility to the counterparty. 
To reduce the above risks the Group plans to further operate in different regions of Russia to 
diversify risks. 

Risks related to the possible military conflicts, state of emergency and strikes in the country 
and regions where the Company is registered as a tax payer and/or operates its business:  

 
 
 
 
The  Company  is  a  registered  taxpayer  and  operates  mainly  in  the  Southern  Federal  District. 
Political  and  social  risks  are  of  primary  concern  for  the  Southern  Federal  District  among  the 
factors  of  the  regional  investment  risk  due  to  the  potential  hot  spots  on  the  frontiers  of 
territories of the Northern Caucasian republics and proximity to the Chechen republic.  
Major risks are connected with the fact that private capitals (investments) may be nationalized 
in case of a sudden change of policy course or destroyed in case of the armed conflict. However 
the  major  area  of  the  Southern  Federal  District  is  occupied  by  the  subjects  of  the  Russian 
Federation with favorable conditions for business development and with the regional risk level 
of not below average figures throughout the country. It’s worth noting that the Company does 
not  operate  in  the  territory  of  the  Chechen  republic  and  Ingushetiya,  social  and  political 
instability  of which  substantially  aggravate  the  integral  index  of  the  Southern  Federal  District 
risks. 
Practically  all  Northern  Caucasian  republics  face  substantial  social-ethnical  instability,  thus, 
economic and political risks remain high. Along with that, the South of Russia is characterized 
by  the  rapid  growth  of  industrial  production,  accommodation  provision,  increase  of  the  real 
income  of  population,  and  the  financial  market  of  the  region  playing  a  significant  part  in  the 
process. 
Russian Federation is a multinational country consisting of the regions with different social and 
economic  development  levels;  thus,  it  is  impossible  to  completely  eliminate  the  possibility  of 
internal  tension  in  Russia  including  the  armed  conflicts.  The  Company  as  well  cannot 
absolutely exclude risks related to the emergency state. 

Risks  related  to  the  geographical  peculiarities  of  the  country  (countries)  and  the  region 
where the Company is registered as a tax payer and/or performs the main activity, including 
high  threat  of  natural  disasters,  possible  stop  of  transport  connection  due  to  remoteness 
and/or inaccessibility, etc. 

According to EMERCOM of Russia, factors of industrial, natural or terrorist character represent 
one of the most real threats to the stable social-economic development of the country, increase 
of  the  living  standards  of  population  and  fortification  of  the  national  security  of  Russian 
Federation. 
The  terrorism  level  recently  escalated  leads  to  the  continuous  danger  of  terrorism  acts  on  the 
whole territory of the Group’s operation. 
The regions with the Group’s presence may face the drastic consequences of conflagrations on 
the  economic  objects  and  in  the  public  sector,  accidents  and  failures  of  utility  systems  and 
transport,  natural  fire,  dangerous  hydro-meteorological  phenomena  (strong  winds,  frosts, 
heavy  snowfalls  and  heavy  rains),  earthquakes,  land  subsidence  and  sinkhole  collapse, 
contagion outbreaks among people and animals. For example, exposure to natural and climatic 
is  distinctive 
risks, 
geographical feature of the Southern Federal District.  
The  geographical  peculiarities  of  the  region  do  not  eliminate  the  risk  of  possible  stop  of 
transport connection due to remoteness and/or inaccessibility of the city. 

including  natural  disasters  (hurricanes,  floods,  earthquakes,  etc) 

Ecological risks:  

Accidents  at  the  environmentally  hazardous  industrial  facilities  of  the  Russian  Federation 
and environmental pollution may have a negative effect on the Group’s activity. 

 
 
 
 
In  respect  of  all  four  components  of  the  environment  (air,  water  sources,  soil  and  land 
resources,  wildlife)  large  industrial  cities  face  the  unfavorable  ecological  situation  for 
population. According to some reports, up to 15% of the Russian territory is zones of ecological 
disaster.  The  above  factors  negatively  affect  the  health  of  the  nation.  Moreover,  nuclear  and 
other dangerous objects are located in the territory of Russia, while the system of control over 
ecologically  dangerous  objects  is  not  sufficiently  effective.  Accidents  on  these  objects  and  an 
unfavorable ecological situation in large Russian industrial cities may have an adverse negative 
effect on the Group’s activity. 

FINANCIAL RISKS 

Exposure  to  risks  inherent  in  the  interest  rates,  foreign  currency  exchange  rates 
related to the Company’s operation or to hedging effected by the Company to reduce 
unfavorable consequences of the above risks: 

The Company is exposed to risks inherent in the interest rates. The entities of the Group raise 
borrowed  funds  to  finance  the  development  of  the  Group’s  operation  and  to  expand  its 
resource base. Changes of the interest rates may have substantial negative effect on the results 
of the Group’s operations. 

The  Group  does  not  export  products,  and  all  its  main  obligations  are  ruble  denominated. 
Imported  products  comprise  a  certain  share  of  revenue,  which  brings  certain  dependency  on 
possible fluctuations of exchange rates. 

The Company does not hedge risks. 

Exposure of the financial position of the Company, its liquidity, funding sources, operating 
results, etc., to the changes of the foreign exchange rates (currency risks). 

Over the last fifteen years Russia was exposed to considerable fluctuations of the exchange rate 
of the Russian ruble to the foreign currencies. Substantial ruble devaluation may result in the 
reduction of the relative cost of ruble-denominated sales and assets of the Group, such as bank 
deposits and accounts receivable. Besides, decrease of the ruble exchange rate may lead to the 
decrease of the dollar cost of tax deductions arising from the realization of capital investments, 
since the balance sheet assets will reflect their ruble value at of the date of their acquisition. 

The  Group  does  not  export  products,  and  all  its  main  obligations  are  ruble  denominated. 
Imported  products  comprise  a  certain  share  of  revenue,  which  brings  certain  dependency  on 
the possible fluctuations. Should such fluctuations arise, the Group can change the structure of 
sale  of  products  in  favor  of  Russian  subsitutes,  which  may  result  in  slowdown  of  revenue 
growth. Therefore, this risk may negatively influence revenue and profitability of the Group.  

The  Group  purchases  and  plans  to  continue  purchasing  the  imported  retail  equipment  and 
vehicles  for  foreign  currency,  which  may  increase  the  expenses  of  the  Group  in  rubles  and 
negatively influence its operating results should there be a significant decline in the ruble. 
Significant  change  of  the  exchange  rate  may  influence  the  economy  of  the  country  in 
general and results in the slowdown of the consumer demand. 

 
 
 
 
 
 
 
 
 
Prospective  actions  of  the  Company  in  case  of  negative  influence  of  the  change  of  the 
exchange and currency rates on the Company’s operations. 

In  case  of  the  negative  changes  of  the  foreigh  exchange  rates  for  the  Company  and 
interest  rates,  the  Company  plans  to  pursue  tough  policy  of  cost  saving.  However,  it 
should be  noted  that  part  of  the risk  cannot be  mitigated  in  full,  since  the  above  risks 
are  to  a greater  extent beyond  the  control of  the  Company but  depend  on  the  general 
economic situation in the country.  

Influence of inflation on the payment on securities. Critical inflation rates in the Company’s 
opinion as well as prospective actions of the Company to minimize the above risk. 

The Company is exposed to inflation risks which may negatively influence its operating results. 
Purchasing prices on products depend on the overall price level in Russia. Acceleration in the 
inflation  rates  may  negatively  influence  financial  results  of  the  Group.  The  growth  of  the 
purchasing prices may lead to further growth of retail prices on products sold by the Company 
and its subsidiaries. This may negatively influence the competitive environment of the Group. 

If the ruble-dollar rate will increase together with inflation, the Group may be exposed to the 
growth of dollar costs on several cost items caused by inflation. Certain cost items of the Group, 
such as payroll, construction, rent and utilities are sensitive to the overall growth of the price 
level in Russia. Due to pressure from competitors or regulatory restrictions the Group may not 
be able to properly increase its prices in order to sustain its profitability level. As a result high 
inflation rates may increase the costs of the Group. It is impossible to guarantee that the Group 
will be able to sustain or increase its profitability level. 

Inflation  growth  in  the  Russian  Federation  may  also  result  in  the  overall  growth  of  interest 
rates. 

Critical inflation rate according to the Company: 

In the Group’s opinion, the critical level of inflation for the Company today is 30-35%. Serious 
acceleration  of  the  price  growth  may  lead  to  the  growth  of  the  Company’s  costs,  the  cost  of 
borrowings and may cause the decline of profitability. Therefore, in case of significant excess of 
actual inflation over the forecasts of the Government of the Russian Federation, the Company 
plans  to  take  necessary  measures  to  minimize  the  growth  of  other  costs  (not  related  to  the 
purchase of products for sale), to reduce the accounts receivable and its average term. 

Risks arising from bank operations: 

Russian  bank  system  is  yet  underdeveloped,  another  bank  crisis  may  negatively  influence   
the Group’s operations and its financial position 

Russian bank and other financial systems are underdeveloped and undermanaged; the Russian 
legislation related to banks and bank accounts can be construed in different ways and applied 
inconsequently.  Financial  crisis  of  1998  led  to  bankruptcy  and  liquidation  of  many  Russian 
banks and almost completely destroyed the developing market of commercial banks crediting. 

 
 
 
 
 
 
 
 
 
 
 
From April till July 2004 the Russian bank sector suffered from another serious disruption. As a 
result  of  rumors  distributed  on  the  market  as  well  as  certain  problems  with  legislative 
regulation  and  liquidity,  several  private  Russian  banks  faced  difficulties  with  liquidity  and 
were found unable to raise funds on the inter-bank market or from clients. Alongside with it, 
they faced a large quantity of withdrawals of both individual and corporate deposits. Some of 
these private Russian banks turned bankrupt, were liquidated or they significantly reduced the 
scope of their operations. In general, Russian banks owned or managed by the government as 
well as foreign banks were not exposed to the negative influence of this situation. 

Additionally,  many  Russian  banks  do  not  comply  with  the  international  banking  standards, 
and the transparency of the Russian bank sector in some respects is yet below the international 
level. Surveillance of banks is often insufficient, whereby many Russian banks do not comply 
with  the  applicable  regulations  of  the  Central  Bank  of  the  Russian  Federation  with  regard  to 
loan criteria, credit quality, loan loss provisions, diversification of risks and other requirements. 
Application  of  stricter  regulations  or  interpretations  may  result  in  undercapitalization  or 
insolvency of certain banks. 

Before  the  global  financial  crisis  Russian  banks  were  rapidly  increasing  lending  volumes, 
which,  as  considered  by  many,  was  accompanied  by  lowering  of  the  guarantee  level  of 
repayment  by  borrowers.  Moreover,  stability  of  the  local  corporate  security  market  led  to  the 
accumulation of ruble bonds issued by the Russian companies in the portfolios of the Russian 
banks, which raised the extent of the risks inherent in the assets of the Russian banks. 

The  global  financial  crisis  led  to  collapse  or  buy-in  of  some  Russian  banks  and  significant 
decline  of  liquidity  of  the  other.  Profitability  level  of  the  majority  of  the  Russian  banks  also 
suffered  considerably.  Indeed,  due  to  the  financial  crisis  and  on  the  back  of  reports  on 
difficulties of the Russian banks and other financial institutions, the government had to make 
substantial  investments  in  the  bank  system.  As  a  rule  the  Group  pursue  relations  and  keeps 
accounts  only  with  a  limited  number  of  creditworthy  Russian  banks.  The  Group  raises  and 
allocates  funds  in  several  Russian  banks,  including  open  joint-stock  company  “Sberbank  of 
Russia” (OJSC “Sberbank of Russia”), OPEN JOINT-STOCK COMPANY “ALFA-BANK” (OJSC 
“ALFA-BANK”),  VTB  Bank  (open  joint-stock  company  (OJSC  “VTB  Bank”),  “Gazprombank” 
(open joint-stock company) (GPB (OJSC), OJSC “Joint-stock commercial bank “Rosbank” (OJSC 
AKB  “ROSBANK”).  Bankruptcy  or  insolvency  of  one  or  several  of  the  above  banks  may 
negatively influence our business. Continuation or exacerbation of the bank crisis, bankruptcy 
or insolvency of banks which we keep our funds with may lead to the loss of access to them for 
several days and influence our ability to complete bank operations in Russia or lead to the loss 
of all our deposits, which may negatively influence our business, operational results, financial 
position and prospects. 

Risks of transfer pricing: 

Ambiguity  of  legislation  on  the  principles  of  transfer  pricing  as  well  as  lack  of  exact 
information on the market prices may negatively influence the financial performance of the 
Group. 

Russian  legislation  on  principles  of  transfer  pricing  effective  from  1999  provides  that  tax 
authorities may allow for transfer pricing and accrue additional tax if the price differs from the 

 
 
 
 
 
 
 
market price by more than 20%. As the Russian legislation on the principles of transfer pricing 
is ambiguous, the applicable regulation can be construed broadly by the Russian tax authorities 
and arbitration courts. 

Due to varying interpretation of the principles of transfer pricing the tax authorities may try to 
contest the prices of transactions of the Company and its subsidiaries and to correct the accrued 
taxes. 

Numbers of the financial statements of the Company which are most exposed to the 
influence  of  the  above  financial  risks.  Risks,  their  probability  and  the  nature  of 
changes in statements. 

Expenses and the amount of profit are most exposed to the influence of the above financial 
risks. In case of unfavorable changes of the situation, the expenses will increase in the first 
place which will result in the corresponding decrease of profit. 

In case of inflation and/or exchange rate increase accompanied by the increase of expenses, the 
Group may raise the prices on the sold products. 

In case of the negative influence of the exchange rate, inflation and interest rates on the Group’s 
operations, the Group plans the following: 

to revise the financing structure; 
to optimize the costs; 
to revise the Capex programs and borrowings; 
to increase receivable turnover. 

- 
- 
- 
- 
- 

Today the above risks are not hedged. 

Liquidity risks: 

The above risks form the liquidity risk, i.e. the probability of loss due to cash tightness in the 
required timescale, and as a result, failure of the Group to fulfill its obligations. Such risk may 
lead to penalties, fines, damage to goodwill of the Group, etc. 

The Group manages liquidity risk by means of analysis of the estimated cash flows. 

Exposure  of  the  numbers  of  the  financial  statements  to  the  influence  of  the  above 
financial risks: 

Risks 

Probability 

Nature of changes in statements 

Increase of the 
interest rates 

High 

Increase  of  interest  rates  may  raise  the  cost  of 
borrowings for the Group, which may negatively 
influence  the  financial  position  of  the  Group,  in 
particular, it may increase the operating expenses 
of the Group and decrease its profit. 

Increase of 

High 

Increase of inflation rates may lead to the increase 

 
 
 
 
 
 
 
 
 
 
 
 
inflation rates 

Change of the 
exchange rate of 
the US dollar to 
ruble 

High 

Risk of late 
fulfillment of 
obligations 

Medium 

LLEEGGAALL  RRIISSKKSS  

of expenses of the cost of goods sold (cost of raw 
materials, payroll expense, etc.). At the same time 
the  increase  of  inflation  rates  may  result  in  the 
growth of the consumer prices on the products of 
the Group and correspondingly may increase the 
revenue  of  the  Group,  so  that  the  part  of  the 
Group’s costs is offset by the growth of the prices 
on  products.  The  inflation  may  also  result  in  the 
devaluation of the real cost of obligations in ruble 
terms. 

It  does  not  have  significant  influence  as  the 
principal income and expenses of the Issuer are in 
rubles. 

Failure  of  the  Group  to  fulfill  its  obligations  in 
due time may result in penalties, fines, etc., which 
may  lead  to  unbudgeted  expenses  and  may 
decrease  the  profit  of  the  Group.  In  connection 
herewith  the  Group  pursues  the  policy  of  cash 
flow planning. 

The  Company and the Group  operate  only  on the Russian  domestic market.  The  Company 
and  the  Group  do  not operate  and  do  not  plan  to  operate  on  the international market.  The 
description of the risks refers to the domestic market. 

If  one  or  several  of  the  below  risks  occur  the  Company  and  the  Group  will  undertake  all 
possible  measures  to  minimize  the  negative  consequences.  The  Company  does  not  guarantee 
that the measures taken to overcome the negative changes would improve the situation as the 
described factors are beyond control of the Company and the Group. 

The Company is exposed to the following legal risks: 

Common risks inherent to legal entities according to the legislation of the Russian Federation: 

Certain transactions with participation of the Group’s companies may be acknowledged 
related party transactions. These transactions may include, inter alia, sales and purchase 
agreements  of  manufactured  goods,  purchase  of  shares,  service  contracts.  If  such 
transactions  or  their  actual  approvals  are  successfully  contested,  or  if  the  approval  of 
transactions of the Group’s companies which require special approval according to the 
legislation of the Russian Federation is prevented in future, it may limit the flexibility of 
the  Group’s  companies  in  the  operational  issues  and  may  have  negative  effect  on  its 
remain 
operating  activity. 

In  practice,  standards  of  corporate  governance 

 
 
 
 
 
 
 
underdeveloped in many Russian companies, minority shareholders of these companies 
may  experience  difficulties  with  the  exercise  of  their  legal  rights  and  may bear  losses. 
Although  the  Federal  Law  “On  Joint-Stock  Companies”  entitles  the  shareholder  who 
holds not less than 1% of the company’s outstanding shares to file a claim against the 
management who caused damages to the company, Russian courts do not have enough 
experience of handling with such claims. Therefore, the feasibility of investors to get the 
compensation  from  the  Company  is  limited.  As  a  result,  protection  of  interests  of 
minority shareholders is limited. 
The  Civil  Code  and  the  Federal  Law  “On  Joint-Stock  Companies”  provide  that  the 
shareholders  of  the  joint-stock  company  are  not  liable  for  its  obligations  and  are  only 
exposed to the risk of loss of the investments. However, if the bankruptcy of the legal 
entity  is  caused  by  the  founders  (participants),  the  owner  of  the  property  of  the  legal 
entity  or  other  persons  who  are  entitled  to  give  instructions,  which  are  mandative  for 
this legal entity, or otherwise determine its actions, may rest subsidiary liability for the 
obligations of the legal entity on them in case of deficiency of the property of the legal 
entity. Thus, being the parent company with regard to the subsidiaries  in which OJSC 
“Magnit” directly or indirectly owns more than 50% of the charter capital, the Company 
may  bear  responsibility  for  the  obligations  in  the  above  cases.  Responsibility  for 
obligations of subsidiaries  may have significant negative effect on the Company. 
Ensuring  the  rights  of  shareholders  accroding  the  Russian  legislation  may  lead  to 
additional  expenses,  which  may  lead  to  the  deterioration  of  the  Company’s 
performance.  According  to  the  Russian  legislation,  shareholders  who  voted  against  or 
abstained from voting on certain issues have appraisal rights according to the Russian 
legislation.  Shareholders  have  the  appraisal  rights  if  they  vote  against  or  abstain  from 
voting on the following issues: 
reorganization; 
major  transaction  which  is  subject  to  approval  by  the  general  shareholders’ 

meeting; 

amendments restricting the shareholders’ rights to the charter of the Company or 

ratification of the Charter in a new edition; 

decision  to  make  the  statement  on  delisting  of  the  Company’s  shares  and  (or) 

issued securities of the company convertible into its shares. 

Obligation of the Company to buy the shares back may have significant negative effect 
on the cash flows of the Company and its ability to manage the debt of the Group. 

Legal risks inherent in the Russian Federation: 

Weakness  of  the  Russian  legal  system  and  imperfection  of  the  Russian  legislation  provide 
vague environment for investments and business activity. 
Efficient legal system essential for the function of the market economy in Russia is still in the 
formation  process.  It  is  only  in  recent  times  that  many  crucial  laws  have  come  into  effect. 
Sometimes  insufficient  consensus  on  the  scope,  contents  and  time  of  economic  and  political 
reforms, rapid development of the Russian legal system which is not always in phase with the 

 
 
 
 
 
 
 
directions for the development of the market relations is expressed in uncertainty, inconformity 
and inconsistency of the provisions of the law and subordinate acts. 
Additionally, the Russian legislation often refers to the statutory acts which are to be adopted, 
leaving considerable loopholes in the mechanism of the legal regulation. Sometimes new laws 
and  regulatory  acts  are  adopted  without  being  comprehensively  discussed  by  the  interested 
participants  of  the  civil  and  legal  society  and  do  not  contain  any  adequate  transitional 
provisions, which creates serious complexities in their application. Defaults of the Russian legal 
system  may  negatively  influence  the  ability  of  the  Group  to  exercise  its  rights  in  accordance 
with contracts as well as the ability to defend against the claims of the third parties. Besides, the 
Group cannot guarantee that the governmental and judicial agencies as well as the third parties 
would not litigate the Group’s meeting of the requirements of the laws and subordinate acts. 

Risks inherent in the currency regulation: 
There are risks of the regulation of a number of the currency operations. Significant changes in 
the  currency  regulation  and  currency  control  may  complicate  fulfillment  of  obligations  under 
the  agreements  with  the  counterparties.  In  the  opinion  of  the  Company’s  management  these 
risks influence the Group as is the case with the other market entities. 
The Company conducts continuous monitoring of the regulatory environment of the currency 
regulation and control and conforms to the established rules. During the reporting period there 
were no amendments introduced to the Russian legislation on the currency regulation and the 
currency control which may influence the operations of the Company and the Group. 

Risks inherent in the protection of investors: 
Russian  investor  protection  legislation  may  be  less  favorable  than  the  legislation  of  the  other 
countries  with  the  developed  market  economy.  Besides,  there  is  a  risk  of  changes  of  the 
applicable legislation in future which may be unfavourable for investors. Income of the foreign 
investors from the investments into the Company’s shares may be taxed in accordance with the 
Russian legislation. Deterioration of the general economic and political situation in the country 
may  result  in  tightening  of  the  currency  regulation  and  control  and  in  limitation  of  the 
performance of transactions with the Company’s shares. 

Risks inherent in the tax legislation: 
Tax  legislation  of  the  Russian  Federation  is  exposed  to  frequent  changes.  In  the  Company’s 
opinion these risks influence it as is the case with the other market participants. Amendments in 
the Russian tax system may negatively influence the operations of the Group’s. 
The following factors may negatively influence the operations of the Group: 
Amendments  of  the  acts  of  the  tax  and  revenue  legislation  related  to  the  increase  of  the  tax 
rates; 
Introduction of new taxes. 
These significant and other amendments of the tax legislation may result in the increase of tax 
payments and consequently in the reduction of the net profit of the Company. Amendments of 
the  Russian  tax  legislation  may  negatively  influence  the  attractiveness  of  investments  in  the 
Company’s shares. 
Russian companies make considerable tax payments of the great number of taxes. These taxes, 
inter alia, include: 
Income tax; 
Value added tax; 
Excise taxes; 

 
 
 
Land tax; 
Property tax. 
Legislative  and  subordinate  acts  which  regulate  the  above  taxes  lack  sufficient  history  of 
application  compared  to  the  other  countries.  Therefore,  the  law  enforcement  practice  is  often 
ambiguous  or  is  not  yet  established.  Currently  there  are  very  few  generally  accepted 
clarifications  and  interpretations  of  the  tax  legislation.  Sometimes  different  ministries  and 
authorities  have  different  interpretations  of  tax  legislation,  which  creates  uncertainty  and 
grounds for the conflict. 
Tax system in Russia changes frequently, and the tax legislation is inconsistently applied on the 
federal, regional and local levels. Due to vague legislation the Group is exposed to the risk of 
material penalty fees despite the Group’s efforts to comply with the legislation, which may lead 
to the increase of tax burden. The Company complies with the applicable tax legislation in full, 
which,  nevertheless,  does  not  eliminate  the  potential  risk  of  division  of  opinions  with  the 
relevant  regulatory  bodies  on  controversial  issues.  At  present,  tax  administration  is  relatively 
inefficient, and the government may have to introduce new taxes to increase its income. Thus, 
the Company may have to pay considerably higher taxes, which may negatively influence the 
business  of  the  Company.  In  the  course  of  operations  the  Company  conducts  operational 
monitoring  of  the  tax  legislation  and  enforcement  of  the  applicable  legal  provisions.  The 
Company estimates and forecasts the extent of potential negative influence of amendments of 
the tax legislation aiming efforts at minimization of such changes. 
Generally, the tax risks inherent in the Company’s activity characterize most of the businesses 
operating on the territory of the Russian Federation and may be regarded as national. 

Risk inherent in the impossibility of foreign investors to export the return on shares 
of the Company 

Today, the Russian legislation on dividend payment set forth that dividends on shares 
in rubles may be paid to the shareholders without limitations. Possibility of the foreign 
investors  to  convert  rubles  into  any  freely  convertible  currency  (FCC)  depends  on  the 
availability  of  such  currency  on  the  Russian  exchange  markets.  Although  there  is  the 
market  for  conversion  of  rubles  into  FCC,  including  Moscow  Interbank  Currency 
Exchange  as  well  as  over-the-counter  markets  and  currency  futures  markets,  further 
development of this market remains vague.  

Risks inherent in the customs control and duties 
Changes of customs control and duties may entail the increase of the purchasing prices on the 
imported goods, which may result in the decrease of the Group’s income. 
The  Company  and  the Group  are exposed  to certain risks  inherent in  the  Customs  legislation 
regulating the setting of the procedure of movement of goods across the customs border of the 
Russian  Federation,  setting  and  application  of  the  customs  regimes  and  introduction  and 
levying of customs payments. 
The  Company  complies  with  the  requirements  of  the  customs  control,  processes  all 
documentation  necessary  for  import  transactions  in  time  and  has  sufficient  financial  and 
personnel resources to follow the regulations of the Customs legislation.  

Risks  inherent  in  the  requirements  of  licensing  of  the  primary  activity  of  the  company  or 
licensing of the right of use of objects which are limited in the turnover (including natural 
resources). 

 
 
 
 
The  primary  activity  of  the  Company  -  coordination  of  operations  of  the  companies  of  the 
Group, lease of property and retail - are not subject to licensing. The companies of the Group 
have the license for the retail sale of alcohol consumed not in the point of sale. If the licensing 
requirements  change,  the  Company  will  operate  under  the  new  requirements  including  re-
issuance  and  obtaining  of  the  new  licenses.  The  Company  does  not  use  the  objects  with  the 
limited  presence  in  the  turnover  (including  natural  resources).  The  Company  assesses  risks 
inherent in the the licensing requirements minimal. 

RRIISSKKSS  RREELLAATTEEDD  TTOO  TTHHEE  CCOOMMPPAANNYY’’SS  OOPPEERRAATTIIOONN  

Risks peculiar for the Company 

Risks related to the inability to extend the Company’s license for a particular type of activity 
or for the use of objects limited in the turnover (including natural resources): 
The core business of the Company is coordination of Group companies’ operation, the lease of 
property and retail business which is not subject to licensing. The Group sells a wide range of 
product  assortment,  and  today  the  retail  sale  of  alcohol  is  subject  to  licensing  for  all  Group’s 
enterprises engaged in such activity.  
The  Group  has  licenses  for  retail  sale  of  alcohol  consumed  not  at  the  point  of  sale.  In  case  of 
changes  in  the  requirements  for  licensing,  the  Company  will  operate  under  the  new 
requirements, including the license re-issuance and new licenses’ obtaining. 
During  three  years  prior  to  the  reporting  period  there  were  no  breaches  in  the  licensing 
requirements  in  the  operation  of  the  companies  of  the  Group  which  could  have  caused  the 
refusal to the license renewal. 

Risks  related to  the  possible liability  of  the  Company  for the third  party’s  debts including 
the subsidiaries of OJSC “Magnit”: 
The Issuer provided the mandate in the form of the guarantee for the purpose of obtaining of 
credit  by  JSC  “Tander”  (the  main  operating  company  of  the  Group  which  controls  trading 
division  and  is  the  center  of  profit  consolidation  of  the  Group).  The  Issuer  shall  be  liable  to 
creditors  for  the  fulfillment  by  JSC “Tander”  of its  obligations in  full,  including  repayment  of 
credit amounts, payment of interest in credit, fees and penalties. The total amount of liabilities 
of the Issuer within the provided guarantee accounts for 19 650 122 945 rubles as of December 
31, 2012. 
At the moment the Issuer considers that JSC “Tander” is able to fulfill its obligations properly. 
However, as the majority of the risks are out of the Issuer’s control, the Issuer cannot entirely 
exclude  their  possibility  in  future,  which  may  negatively  affect  the  ability  of  JSC  “Tander”  to 
fulfill its obligations properly, which may cause material adverse effects to the operation of the 
Group.  

Risks related to the possible customer loss the turnover of which amounts to not less than 10 
percent of the total sales of products (works, services) of the Company: 
The receivers of the OJSC “Magnit” services are its subsidiaries. Therefore, the operation of the 
Company and the risk of loss of its main consumers are determined by the financial condition 
and position of the entire Group. 

Other risks related to the Company’s operation 

 
  
 
 
 
 
 
As  the  Company  exercise  functions  of  the  holding  company  of  the  Group  the  Company 
significantly depends on the operations of its subsidiaries. 

Risks related to the possible restriction of competition: 
Russian legislation limits the activity of the bodies which occupy the dominant position on the 
market. If any of the Group’s companies is declared the body occupying the dominant position, 
its activity (including pricing policy) may be restricted. Such situation may have negative effect 
on the economic activity of the Group and its regional expansion strategy. 
Some legislation initiatives aimed at competition protection and regulation of trade activity may 
have  negative  consequences  for  the  Group’s  business.  Specifically,  in  accordance  with  the 
Federal Law № 381 – FL “On the principles of state regulation of trade activity in the Russian 
Federation” effective from February 1, 2010 food chains (which threshold of dominance on the 
retail market within the boundaries of the region, municipal area or urban district exceeds 25%) 
are  prohibited  from  purchasing  and  renting  additional  selling  space  within  the  boundaries  of 
the  relevant  administrative-territorial  entity.  Agricultural  consumer  cooperatives  and 
organizations of consumer cooperation are not subject to this prohibition. 

Risks related to the implementation of the long-term strategy of the Group: 
One of the main components of the long-term strategy of the Group is the expansion of existing 
store chain. The expansion of the chain will have the following directions: within the existing 
formats  and  the  introduction  to  the  market  of  the  new  formats.  Within  geographical  position 
the chain will expand within the traditional framework of the Southern region as well as in the 
other regions of Russia. 
 The strategy success will depend on a number of factors within and out of Company’s 
control. These factors include: 
-Ability to raise enough funds for capital investments. If the Group fails to raise enough funds 
for chain expansion at the scheduled scale, the Group may have to considerably limit the scale 
of  expansion  and  take  disadvantageous  position  versus  competitors  who  will  develop  their 
business activity faster, which may lead to the loss of the market share and deterioration of the 
operation results; 
-Ability of the operating professional team to carry out the projects on business expansion and 
subsequently to manage it. The abilities of the operating management team may turn out to be 
insufficient  for  maintenance  of  the  operation  efficiency  within  the  conditions  of  dynamic 
expansion.  Business  expansion  makes  it  more  complicated  to  manage  the  Group  in  terms  of 
operation  and  increases  the  workload  upon  employees.  Therefore,  the  improvement  of 
operational  and  financial  systems  together  with  control  measures  and  procedures  will  be 
required.  Furthermore,  the  systems  of  purchasing,  logistics,  information  technologies, 
accounting, financing, marketing and sales will need to be revised. If the Group fails to update 
the management system in time, it may negatively affect the business activity, operating results 
and financial position; 
-Success  of  the  Group’s  regional  expansion  will  largely  depend  on  its  ability  to  identify 
attractive  opportunities  on  the  markets  of  the  potential  growth,  on  the  ability  to  successfully 
implement assortment matrix for each region and establish the purchasing system as well as on 
ability to manage the operation on the new local markets. Thus, the Group may not achieve the 
expected profit and/or lose the part of the funds invested in the new projects; 
-Implementation of the effective marketing strategy which will provide not lower level 
of the effectiveness of sales or insignificant decline of sales than the Group experienced 
in the past. Due to the increase of the competition in retail sector, the effectiveness of the 

 
 
Group’s marketing campaign may considerably decrease which will reduce the amount 
of its customers and consequently reduce the sales turnover. The chain expansion in the 
territory  of  one  urban  area  may  result  in  the  cannibalization  which  will  lead  to  the 
reduction of the sales turnover in the average within the stores of the Group; 
-The  Group’s  growth  strategy  foresees  changes  in  the  business  activity  model  concerning  the 
ownership  rights  on  the  sales  areas.  Within  the  development  of  the  operating  formats  the 
Group  will  carry  out  the  independent  construction/acquisition  of  premises  and  purchase  the 
equipment  for  the  stores,  which  will  mainly  affect  the  structure  of  its  assets  and  operating 
results and, therefore, the performance indicators; 
-Availability of the necessary space areas and land plots for the new stores. The market 
may not have the sufficient number of areas suitable for store constructions, which may 
slowdown  the  expansion  rates  against  the  scheduled strategy  and  result  in  the  loss  of 
the Group’s market share in favor of competitors; 
-Competition level in the corresponding regions at the moment of the store openings by 
the Group may prove to be extremely high for Group to penetrate, which will not allow 
to achieve the required profitability level; 
- Within the economic slowdown on the regional markets, geographical expansion may 
turn  out  to  be  not  as  successful  as  expected  by  the  Group,  which  may  have  negative 
effect on the Company’s business and profitability. 

The risk related to management members’ loss and failure to engage qualified employees in 
the future: 
The future success of the Group will largely depend on the ongoing cooperation with the top 
management  of  the  Group,  particularly  with  the  following  managers:  Vladimir  Gordeychuk, 
Andrey Arutyunyan, Khachatur Pombukhchan, Eduard Smetanin, Valeriy Butenko. According 
to the labor contracts entered between the Group’s companies and the bodies indicated above, 
they have the right to resign office by filing the notification 1 month prior to the dismissal. The 
Group is not insured from the harm which can be caused to the Group by the loss (discharge) of 
its leading specialists and top managers. 
The  Company  strives  to  hire  the  most  qualified  and  experienced  personnel,  and  adjust  its 
compensation policy to the changing standards of the Russian labor market. 
The loss of one or more managers or failure to attract and motivate extra highly skilled 
employees  required  for  effective  management  of  a  large-scale  business  may  have 
material negative effect on the business activity, operating results and financial position 
of the Group 

Risks related to the accounting and control system: 
The system of the Group’s financial and management reporting currently operating is based on 
the  volume  of  operations exercised by  the  Group  within  the  certain  period  of  time.  In case  of 
substantial business expansion of the Group, the technical level of the accounting and control 
system may fail to meet the requirements of the information processing efficiency and lead to 
the delays in receiving the adequate data for making tactic and strategic management decisions 
and thus damage the effective operation of the Group. 

The risks related to the computer network failure: 
Managing and processing of operational and financial information in the Group is carried out 
via electronic devices of information transmission and processing including the network of the 

 
 
 
personal  computers,  access  to  Internet  and  system  of  financial  accounting  and  automated 
system of stock management. As a result, operational effectiveness of the Group as well as its 
ability to render adequate data to adopt accurate management decisions depend on the correct 
and stable work of computer and information networks. 
The  systems  and  their  functioning  are  subject  to  operation  failures,  which  may  be  caused  by 
human  factor,  natural  disasters,  blackouts,  computer  viruses,  willful  acts  of  vandalism  and 
similar factors. There is no guarantee that there will be no serious breakdowns and delays in the 
future. Any blackout in computer network or system breakdowns and delays may lead to the 
sudden  service  interruptions,  failures  in  the  stock  registration  system,  degradation  of  the 
customer  service  quality  and  damage  to  the  goodwill  of  the  Company,  mistakes  in  the 
management  decisions  which  may  result  in  the  loss  of  customers,  the  growth  of  operating 
expenses and financial losses. 

Risks related to the operations with the large cash flows: 
The  specific  character  of  the  Company’s  business  activity  and  the  current  level  of  the  bank 
sector  development  in  Russia  provide  that  the  substantial  part  of  the  Group’s  operations  is 
exercised with the cash funds. Thus, the risk of insufficient payments caused by unintentional 
actions of the Group’s personnel as well as by deliberate thefts and robberies increases. 

Risks related to the sale of private label products: 
As a way of attracting customers and strengthening the consumer loyalty for private label, the 
Group  plans  to  continue  the  sale  of  private  label  products.  Therefore,  there  exists  the 
probability  of  potential  customer  claims  to  the  quality  of  the  Group’s  private  label  products. 
High product quality is of the utmost importance for the private label, and chain operators are 
exposed to serious risks while promoting poor quality products under private label. Claims to 
the quality or other characteristics of such products may dramatically damage the image of the 
Company  on  the  whole,  the  brand  attractiveness  for  the  Company  customers  and  lead  to 
considerable financial losses. 

Risks related to the quality of products for sale: 
There  is  a  risk  related  to  the  Group’s  responsibility  for  the  quality  of  products  sold  at 
the Group’s stores as well as the risk of filing a claim due to the harm to life and health. 
According to the agreements entered into with the majority of suppliers, the producer 
takes  the  material  liability  for  the  quality  of  sold  products,  provided  that  the  Group 
observes the necessary storage conditions.  
Such  claims  may  also  be  addressed  to  the  seller  of  the  products  at  the  discretion  of  a 
complainant. Any similar situation may damage the Company’s image and reputation, 
reduce  the  market  share  of  the  Group  and  negatively  affect  its  financial  position. 
Moreover, there  is  a  risk  related  to  the  careless  attitude  of  the  Group  personnel  to  the 
storage  conditions  of  the  products,  which  may  lead  to  legal  material  liability  of  the 
Group under such claims 

Risks related to the protection of intellectual property: 
If  the  Group  fails  to  protect  its rights  for  the  intellectual  property  or withstand  claims for  the 
intellectual  property  from  the  third  parties,  connected  with  the  violation  of  their  rights,  the 
Group may lose its rights or bear serious responsibility for damages 

 
 
 
 
For  execution  and  protection  of  its  rights  for  intellectual  property,  the  Group  firstly  relies  on 
copyright, trade marks rights, legislation on commercial secret protection, on its user policy, on 
the  license  agreements  and  the  restrictions  on  the  information  disclosure.  Despite  the  above 
precautionary measures, third parties may illegally copy or otherwise receive or use intellectual 
property of the Group. On the whole Russia does not provide enough protection of the rights 
for the intellectual property as compared to many other countries with the developed economy. 
Failure  of  the  Group  to  protect  the  rights  for  the  intellectual  property  from  violation  and 
misappropriation  may  negatively  affect  its  financial  position  and  the  ability  of  the  Group  to 
develop its business activity. Moreover, the Group may be involved in the legal proceedings on 
protection of its rights for intellectual property or on establishing the validity and the scope of 
rights  of  other  parties.  Any  lawsuit  may  lead  to  substantial  expenses,  distraction  of  the 
management  and  of  the  Group  resources,  which  may  negatively  affect  the  operation  and 
financial position of the Group. 

Conduct  of  premature  policy  on  securing  interests  in  terms  of  intellectual  property  of  the 
Group may seriously hinder its future business activity 
The Group is on the stage of intensive development and expansion of all its business spheres. 
Measures on securing the rights of the Group for certain objects of intellectual property have to 
be  taken  on  the  basis  of  the  existing  plans  of  commercial  development  and  go  ahead  of  any 
commercial activity. Insufficient experience of Russian companies in elaborating policy related 
to  the  objects  of  intellectual  property  produces  the  whole  set  of  risks  of  unfavorable  effect, 
including the inability of the Group to use the promoted trade marks for individual products 
(services)  in  a  number  of  countries,  conflicts  with  employees,  involved  specialists  and 
organizations regarding determination of rights for jointly manufactured products and split of 
the use rights on these products between the Group and other bodies. 

The “Magnit” trade mark is used by other participants of the sales turnover as a component 
of the company name, which may have material effect on the operation of the Group. 
The  Group  invested  substantial  funds  in  promotion  of  its  “Magnit”  brand  on  the 
Russian  market,  which  is  also  the  part  of  the  company  name  for  the  private  label 
products of the Group. Due to “Magnit” brand the Group achieved great success in its 
operation. 
Meanwhile,  the  trademark  “Magnet”  in  Latin  letters  in  the  certain  classes  is  registered  in  the 
name of the third party. Today, the scope of legal protection for trademarks rights for trading 
organizations, provided by the Russian law, is not completely clear. A certain risk of interests’ 
conflict  between  the  owners  of  the  trademark  “Magnit”  (or  ‘’Magnet”)  definitely  exists,  the 
Group might be forced to re-brand its stores. The expenses for such re-branding may negatively 
affect the operation results of the Group. 
Moreover, due to the fact that Russian legislation provides limited protection for the company 
names  on  the  market,  there  exist  a  number  of  other  organizations  using  “Magnit”  in  their 
names. Business activity of some of them has partially similar features to the operation of the 
Group.  The  Group  cannot  prevent  these  organizations  from  using  such  names,  and  this  may 
result in negative effect of these companies’ activity on the business activity and reputation of 
the Group. 

Risks related to the development of a new brand: 
The  expansion  strategy  of  the  Group  presupposes  the  growth  of  sales  share  of  the 
products under “Magnit” brand  (“for “Magnit” stores”). As of December 31, 2012 this 

 
 
 
figure amounted to 13%. However it should be noted that together with the increasing 
number of hypermarkets, the sales share of “private label” represented by 613 items in 
both  formats  may  reduce  as  the  total  assortment  of  a  hypermarket  amounts  13,350 
SKUs on average, while the product mix of a convenience store amounts to 3,000. 
The  scheduled  growth  may  prove  to  be  unachievable  if  the  commercial  expenses  for 
popularization  of  such  brand  will  considerably  exceed  the  Group’s  relevant  budget. 
Alongside, the creation of the new brands may weaken the existing brands and require 
additional investments for maintaining their market position. 

Risks  related  to  insufficiency  of  insurance  coverage  for  damages  arising  from  the 
interruption  of  activity,  damages  to  the  Group’s  property  or  responsibility  to  the 
third parties: 
Insurance may turn out to be ineffective. 
The  Group  does  not  apply  insurance  for  interruption  of  its  business  activity,  bringing  to 
responsibility  for  products  quality,  fire  (except  for  stocks  and  supplies)  or  changes  in  core 
management, and does not enter into insurance agreements on real estate property, distribution 
center, stores or stocks at the warehouses (with rare exception). Moreover, the Group does not 
form  special  reserve  or  other  funds  to  cover  possible  losses  or  settle  claims  with  the  third 
parties.  Thus,  such  events  may  drastically  disrupt  the  Group’s  operation,  cause  considerable 
damage  and/or  require  expenses  which  will  not  be  compensated.  All  the  foregoing 
circumstances  may  have  negative  effect  on  the  business  activity  of  the  Group,  its  financial 
position and prospects.  

A major accident may result in substantial property losses and incapability to restore it. 
If  in  case  of  a  major  accident  one  or  more  objects  of  the  Group  (e.g.  the  headquarters  in 
Krasnodar, distribution center or hypermarket) are seriously damaged, the Company may not 
be able to resume its activity within the established time period. The Group does not exercise 
the  insurance  or  form  special  funds  to  cover  such  accidents.  Any  such  accident  may  have 
negative  effect  on  the  Group’s  business  activity,  its  operation  results,  financial  position  and 
prospects. 

 
 
 
1177..   IINNFFOORRMMAATTIIOONN   OONN   TTHHEE   CCOOMMPPLLIIAANNCCEE   WWIITTHH   TTHHEE   CCOORRPPOORRAATTEE  

CCOODDEE  OOFF  CCOONNDDUUCCTT  OOFF  FFFFMMSS  OOFF  TTHHEE  RRUUSSSSIIAANN  FFEEDDEERRAATTIIOONN  1177  

№  

Clause of the corporate code of conduct 

Complied / 
 not complied 

Note 

General Shareholders’ Meeting 

1. 

2. 

3. 

4. 

Notification  of  shareholders  on  holding  the 
general shareholders’ meeting not later than 
30  days  prior  to  the  date  of  a  meeting 
irrespective  of  the  questions  of  the  agenda, 
if  otherwise 
the 
legislation. 

is  not  provided  by 

in 

the 

Shareholders’  ability  to  study  the  list  of 
persons entitled to participate in the general 
shareholders’  meeting,  starting  from  the 
date  of  notification  on  holding  of  the 
general  meeting  up  to  the  closing  of  the 
general  meeting 
joint 
presence, and in case if the general meeting 
is held in absentee form – up to the closing 
date of acceptance of the voting ballots. 
Shareholders’ 
ability 
the 
is  to  be 
information  (materials)  which 
submitted  within  the  preparation  for  the 
general shareholders’ meeting via electronic 
communication facilities, including Internet. 

form  of 

study 

to 

extract, 

Shareholder’s ability to introduce a question 
to the general meeting agenda or to call the 
general  meeting  without  submitting  the 
the 
shareholders’ 
register 
registration  of  his/her  share  rights 
is 
recorded  in  the  system  of  shareholders’ 
register,  and  in  case  if  his/her  rights  are 
registered 
account  
sufficiency of the custody account extract to 
exercise the above rights. 

custody 

the 

in 

if 

Complied 

Paragraph  13.10  of  the  OJSC 
“Magnit” Charter. 

Complied 

Article  24  of  the  Regulation  on 
the  OJSC 
“Magnit”  general 
shareholders’ meeting. 

Paragraph  4.16  article  4  of  the 
Regulation  on  OJSC  “Magnit” 
information policy. 
Article  22  of  the  Regulation  on 
the  OJSC 
“Magnit”  general 
shareholders’ meeting. 

Paragraph  5.1.3,  5.1.4  article  5  of 
the  Regulation  on 
the  OJSC 
“Magnit” information policy. 

Complied 

Paragraph  13.11  of  the  OJSC 
“Magnit” Charter. 

Article  28  of  the  Regulation  on 
“Magnit”  general 
the  OJSC 
shareholders’ meeting. 

Paragraph  5.4  article  5  of  the 
Regulation  on  OJSC  “Magnit” 
information policy. 
Article 5 and paragraph 2, article 
13 of the Regulation on the OJSC 
“Magnit”  general  shareholders’ 
meeting. 

Partially  
complied 

17 The information is disclosed according to the “Methodical recommendations on the content and form of information 
disclosure in compliance with the corporate code of conduct in the annual reports of joint-stock companies”, ratified by the 
FFMS of 30.04.2003 № 03-849/р.  

 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Complied / 
 not complied 
Complied 
upon the fact 

Not complied 

Note 

to  provide 
the 

According  to  paragraph  2  article 
29 of the Regulation on the OJSC 
“Magnit”  general  shareholders’ 
meeting,  the  Company  makes  all 
the 
arrangements 
general 
attendance 
of 
the 
shareholders’  meeting  by 
members  of 
the  board  of 
directors,  sole  executive  body, 
members 
auditing 
committee  and  other  bodies  of 
the  company.  They  are  liable  for 
providing  qualified  answers  to 
the  questions  of  the  meeting 
participants. 
- 

the 

of 

Complied 

Article  42  of  the  Regulation  on 
the  OJSC 
“Magnit”  general 
shareholders’ meeting.  

Board of directors 

Complied 

Paragraph  14.2.  of 
“Magnit” Charter 

the  OJSC 

№  

Clause of the corporate code of conduct 

Availability  in  the  company  Charter  or 
internal  documents  of  the  requirement  on 
the  obligatory  attendance  of  the  general 
CEO, 
meeting 
shareholders’ 
management  board  members,  members  of 
the  board  of  directors,  members  of  the 
auditing  committee  and  the  auditor  of  the 
joint - stock company. 

by 

The obligatory attendance by the candidates 
of  the  general  shareholders  meetings  with 
agenda items on the election of the members 
of  the  board,  CEO,  management  bodies, 
members  of  the  auditing  committee,  and 
items  on  the  appointment  of  the  auditor  of 
the  joint-stock company. 
Availability in the internal documents of the 
joint-stock  company  of 
the  registration 
procedure  of 
the  general  shareholders 
meeting participants. 

Availability in the Charter of the joint-stock 
company of the right of the board members 
to  annually 
financial  and 
economic plan of the joint-stock company. 

ratify 

the 

5. 

6. 

7. 

8. 

9. 

Availability  of 
risk  management 
structure in the joint-stock company, ratified 
by the board of directors. 

the 

Not complied 

board 

“Magnit” 

Article 5 of the Regulation on the 
OJSC 
of 
directors. 
Paragraphs  6.6  and  6.7  of  the 
article  6  of  the  Regulation  on  the 
Committees of the board of OJSC 
“Magnit”, according to which the 
assessment  of  efficiency  and 
internal  control  
procedures  of 
the 
financial  and 
related 
economic 
the 
of 
activity 
Company  and  arrangement  of 
recommendations 
the 
improvement  of  such  system 
refer  to  the  competence  of  the 
Audit Committee. 

on 

to 

Paragraph  3.1.  and  6  article  1, 
paragraph  2.4.,  article  2  of  the 
Regulation on the internal control  

 
 
  
 
 
 
 
№  

Clause of the corporate code of conduct 

Complied / 
 not complied 

Note 

of financial and economic activity 
of OJSC “Magnit”. 

Complied 

Not applicable  Under  paragraph  14.2.  of  the 
the 
OJSC  “Magnit”  Charter, 
election  of  the  sole  executive 
body of the company refers to the 
competence  of  the  Company’s 
board of directors. 
Under  paragraph  14.2.  of  the 
OJSC  “Magnit”  Charter, 
the 
ratification of the agreement with 
the person exercising the rights of 
the  company’s  sole  executive 
body  and  members  of  collegial 
the 
to 
executive  body  refers 
competence 
the  OJSC 
“Magnit” board of directors. 

of 

According  to  article  7  of  the 
Regulation  on  the  committees  of 
the  OJSC  “Magnit”  board  of 
the 
directors,  elaboration  of 
eligibility  criteria  of  candidates 
for 
the  positions  of  CEO, 
members  of  collegial  executive 
the  main 
body,  directors  of 
structural  departments  of 
the 
Company,  and  work-out  of  the 
remuneration procedure for CEO, 
Management board members and 
highly qualified employees of the 
Company, 
the 
refer 
to 
the  HR  and 
competence  of 
Remuneration Committee. 
According  to  paragraph  14.2.  of 
the  OJSC  “Magnit”  Charter, 
ratification of the agreement with 
the person exercising the right of 
the  sole  executive  body  and 
members  of  collegial  executive 
body (Management  board) of the 
refers 
company 
the 
competence 
the  OJSC 
of 
“Magnit” board of directors. 
- 

to 

Complied 

Not complied 

10.  Availability 

in  the 

joint-stock  company 
charter of the right of the board to decide on 
suspension  of  authority  of  CEO,  appointed 
by the general shareholders’ meeting. 

11.  Availability 

in  the 

joint-stock  company 
charter  of  the  right  of  the  board  to  set  the 
requirements  for  the  qualification  and  the 
amount 
of  CEO, 
management  board  members,  directors  of 
the main structural departments of the joint-
stock company. 

remuneration 

of 

12.  Availability 

in  the 

joint-stock  company 
charter of the right of the board to ratify the 
conditions of the agreements with CEO and 
management board members. 

in  the 
internal  documents  of 

joint-stock  company 
13.  Availability 
charter  or 
the 
requirement  that  the  votes  of  the  board 
and  management 
members, 
members,  are  not  counted  in  ratifying  the 
agreement  conditions  with  CEO  (managing 
company, manager) and management board 

if  CEO 

 
 
 
 
№  

Clause of the corporate code of conduct 

members. 

14.  Presence  in  the  board  of  directors  of  the 
joint-stock  company  of  not  less  than  3 
independent  directors  eligible  for  the  Code 
of corporate conduct. 

Complied / 
 not complied 

Complied  

Complied  

Complied  

Complied 

Complied 

15.  Absence in the joint-stock company board of 
directors  of  members  who  were  found 
guilty  of  committing  economic  crimes  and 
crimes  against  the  government,  interests  of 
public  service  and  local  authorities,  or 
members 
enforced 
administrative  penalty  for  entrepreneurial 
or  financial  crimes,  crimes  related  to  taxes 
and fees, securities market. 

which 

were 

16.  Absence in the joint-stock company board of 
directors  of  members  who  are  the  member, 
board 
(manager),  management 
CEO 
member or the employee of the legal entity 
which  is  a  competitor  to  the  joint-stock 
company. 

in  the 

17.  Availability 

joint-stock  company 
Charter of the requirement on the election to 
the board of directors by cumulative voting. 
18.  Availability in the internal documents of the 
joint-stock company of the duty of the board 
members to avoid any actions that will lead 
or  potentially  may  lead  to  the  conflict 
between  their  interests  and  interests  of  the 
joint-stock  company,  and  in  case  such  a 
conflict  arises    -  the  duty  to  disclose  the 
information  about  this  conflict  to  the  board 
of directors. 

Note 

guilty 

found 

According  to  paragraph  1  article 
33 of the Regulation on the OJSC 
“Magnit”  board  of  directors,  the 
board  must  include  not  less  than 
one independent member. 
Four  independent  directors  were 
elected  to  the  Board  of  directors, 
they are:   
1) Valery Butenko. 
2) Alexander Zayonts; 
3) Alexey Makhnev; 
4) Aslan Shakhachemukov. 
The  company  does  not  hold 
information  about  any  members 
of  the  OJSC  “Magnit”  board  of 
directors 
of 
committing  economic  crimes  and 
crimes  against  the  government, 
interests  of  public  service  and 
local  authorities,  or  members 
enforced 
who 
for 
administrative 
entrepreneurial 
financial 
crimes,  crimes  related  to  taxes 
and fees, securities market. 
The  company  does  not  hold 
information  about  any  OJSC 
“Magnit”  board  of  directors 
members  being 
the  members, 
CEO 
(manager),  management 
board  member  or  the  employee 
of  the  legal  entity  which  is  a 
competitor to OJSC “Magnit”. 
Paragraph  14.7.  of 
“Magnit” Charter. 

penalty 
or 

the  OJSC 

were 

Article 7 and 32 of the Regulation 
on  the  OJSC  “Magnit”  board  of 
directors. 

Paragraph  7.4.10  article  7  of  the 
Regulation  on  the  committees  of 
the  OJSC  “Magnit”  board  of 
directors. 

19.  Availability in the internal documents of the 
joint-stock company of the duty of the board 
members  to  notify  the  board  in  writing  on 
the  intention  to  make  a  transaction  with 
securities  of  the  joint-stock  company,  being 

Complied 

Article 7 of the Regulation on the 
of 
OJSC 
directors. 

“Magnit” 

board 

Article  7,  paragraphs  11.6-11.7 

 
 
 
 
 
 
 
 
 
 
 
№  

Clause of the corporate code of conduct 

the  member  of  this  company  or  of  its 
subsidiary  (dependant)  companies,  and  to 
disclose the information on the transactions 
with such securities as well. 

20.  Availability in the internal documents of the 
joint-stock  company  of  the  requirement  to 
hold the meetings of the board not less than 
once in six weeks. 

21.  Holding  of  the  joint-stock  company  board 
meeting  within 
year 
the 
periodically  but  not  less  than  once  in  six 
weeks.  

reported 

22.  Availability in the internal documents of the 
joint-stock  company  of  the  board  meetings 
procedure. 

Complied / 
 not complied 

Note 

article 11 of the Regulation on the 
information  policy  of  OJSC 
“Magnit”. 

Not complied  According  to  paragraph  1  article 
22 of the Regulation on the OJSC 
“Magnit”  board  of  directors, 
board  meetings  are  held  upon 
necessity but not less than once in 
three months. 

Not complied  During  2012  the  OJSC  “Magnit” 
board  meetings  were  held  not 
less than once a month, except for 
January and August, when board 
meetings were not held. 
The  regulations  on  the  Board  of 
directors of OJSC “Magnit” 

Complied 

23.  Availability in the internal documents of the 
joint-stock  company  of  the  Regulation  on 
the  obligatory  approval  by  the  board  of 
company 
directors  of 
transactions  at  the  amount  of  10  and  more 
percent  of  the  assets  value  of  the  company 
excluding  transactions  entered  into  on  a 
regular economic activity basis. 

joint-stock 

the 

24.  Availability in the internal documents of the 
joint-stock  company  of  the  right  of  the 
board of directors to get from the joint-stock 
company  executive  bodies  and  directors  of 
the 
the  main 
information  which  is  essential  for  them  to 
exercise functions, and the responsibility for 
failure to submit such information  

structural  departments 

25.  Presence of the board committee of strategic 
planning  or  assignment  of  the  functions 
hereof to the other committee (except for the 
audit  committee  and  HR  and  remuneration 

of 

of 

the 

Not complied  According  to  paragraph  14.2.  of 
the  OJSC  “Magnit”  Charter,  the 
transactions 
approval 
interrelated 
(including  several 
transactions) 
  on  acquisition, 
alienation,  directly  or  indirectly, 
by the company and possibility of 
assets, 
alienation 
amounting  to  5  or  more  percent 
of  the  balance  sheet  assets  of  the 
its  subsidiaries 
company  and 
(“the  Group”),  defined  on  the 
basis  of  the 
last  consolidated 
report  of  the  Group,  prepared  in 
IFRS, 
accordance  with 
excluding 
the 
offering of the common shares of 
the  company  and  transactions  in 
the  usual  economic  activity, 
refers  to  the  competence  of  the 
board of directors. 
Article  6  and  9  of  the  Regulation 
on  the  OJSC  “Magnit”  board  of 
directors. 

transactions  on 

Complied 

the 

Article 6 of the Regulation on the 
OJSC 
information 
policy. 

“Magnit 

Not complied 

The possibility of establishing the 
committee is considered. 

 
 
  
 
 
 
 
№  

Clause of the corporate code of conduct 

committee) 

26.  Presence  of  the  board  committee  (audit 
committee) which advises on the joint-stock 
company  auditor 
the  board,  and 
to 
cooperates  with  the  board  and  revision 
committee of the joint-stock company. 

27.  Presence 

in 

committee  of 
the  audit 
independent  and  non-executive  directors 
only. 

Complied / 
 not complied 

Complied 

Complied 

28.  Management  of  the  audit  committee  is 
executed by the independent director. 

Complied 

29.  Availability in the internal documents of the 
joint-stock  company  of  the  right  of  all  the 
audit  committee  members  to  access  any 
documents  and  information  of  the  joint-
stock  company,  provided  that  the  do  not 
disclose the confidential information. 

30.  Establishment  of  the  board  committee  (HR 
and  Remuneration 
committee),  which 
function  is  to  set  the  candidates  criteria  for 
the  board  members  and  work  out  the 
remuneration  policy  of 
joint-stock 
company. 

the 

Complied 

Complied 

Note 

Alexander 

committees 

The  Audit  Committee  of  the 
is 
board 
“Magnit” 
OJSC 
established in the Company. 
The  document  assigning 
the 
functions  to  the  audit  committee 
is  the  Regulation  on  the  board 
committees of OJSC “Magnit”. 
According  to  the  paragraph  6.4, 
article  6  of  the  Regulation  on  the 
of  OJSC 
board 
“Magnit”,  the  audit  committee 
must  have 
independent 
an 
director. 
the  Audit 
The  members  of 
Committee of OJSC “Magnit” are 
independent directors: 
1) 
(independent director); 
2) Alexey Makhnev (independent 
director); 
3) Aslan Shkhachemukov 
(independent director). 
According  to  the  point  6.5  of  the 
article  6  of  the  Regulation  on  the 
of  OJSC 
board 
“Magnit”, 
independent 
director  only  can  be  in  charge  of 
the Audit Committee. 
The Chairman of the board Audit 
Committee  of  OJSC  “Magnit”  is 
Alexander 
the 
independent director. 
Paragraph  4.8  of  the  article  4  of 
the  Regulation  on 
the  board 
committees of OJSC “Magnit”. 

committees 
the 

Zayonts, 

Zayonts 

and 

“Magnit” 

Paragraphs 11.5, 11.8, 11.12 of the 
article 11 of the Regulation on the 
information 
OJSC 
policy. 
HR 
Remuneration 
Committee  of  the  board  of  OJSC 
“Magnit”  is  established  in  the 
Company. 
the 
The  document  assigning 
functions 
and 
to 
Remuneration  committee  is  the 
Regulation 
board 
on 
committees of OJSC “Magnit”. 

the  HR 

the 

 
  
  
 
 
№  

Clause of the corporate code of conduct 

31.  Management  of  the  HR  and  Remuneration 
Committee  is  executed  by  the  independent 
director. 

Complied / 
 not complied 
Complied 

32.  Absence 

in  the  HR  and  Remuneration 
Committee  of  the  officials of  the  joint-stock 
company  

Complied  

33.  Establishment  of  the  risks  committee  of  the 
board or assignment of the functions hereof 
to the other committee (except for the audit 
committee  and  the  HR  and  Remuneration 
committee). 

Not complied 

Note 

the 

the 

and 

According to the article 7.3 of the 
Regulation 
board 
on 
committees  of  OJSC  “Magnit” 
the  HR  and 
Management  of 
Remuneration  Committee 
is 
executed  by 
independent 
director. 
Alexey  Makhnev  (independent 
director)  is  the  Chairman  of  the 
HR 
Remuneration 
Committee of the OJSC “Magnit” 
board. 
There  are  no  officials  of  the 
company 
and 
Remuneration Committee (except 
members  of 
the  Board  of 
directors). 
Members of the Committee are: 
1) Alexey Makhnev, 
2) Valeriy Butenko, 
3) Alexander Zayonts. 
The  committee  establishment  is 
under consideration. 

the  HR 

in 

conflict  management 

34.  Establishment  of  the  board  committee  of 
corporate 
or 
assignment  of  the  functions  hereof  to  the 
other  committee 
the  audit 
committee  and  the  HR  and  Remuneration 
committee). 

(except 

for 

35.  Absence  in  the  committee  of  the  corporate 
joint-stock 

the 

conflict  management  of 
company officials. 
36.  Management  of 

the  corporate  conflict 
management  committee  is  executed  by  the 
independent director. 

37.  Availability of the internal documents of the 
joint-stock  company  ratified  by  the  board, 
which 
of 
the 
establishment  and  operation  of  the  board 
committees.  

procedure 

provide 

Not complied  

The  committee  establishment  is 
under consideration. 

Not complied 

See clause 34 

Not complied 

See clause 34 

Complied 

The  Regulation  on  the  board 
committees  of  OJSC  “Magnit”  is 
ratified  by  the  board  of  OJSC 
“Magnit”. 

38.  Availability  in  the  charter  of  the  joint-stock 
company  of  the  procedure  of  the  board 
quorum  determination,  which  provides  the 
obligatory  participation  of  the  independent 
directors in the board meetings. 

Not complied 

- 

Executive bodies 

 
 
 
 
№  

Clause of the corporate code of conduct 

39.  Presence  of  the  collegial  executive  body 
joint-stock 

body) 

the 

of 

(managing 
company. 

 40.  Presence 

in 

the 

charter  or 

internal 
documents of the joint-stock company of the 
regulation on the obligatory managing body 
approval of the transactions with real estate, 
receipt of credit by the joint-stock company, 
if the transactions herein do not refer to the 
major  transactions  and  do  not  relate  to  the 
regular  economic  activity  of  the  joint-stock 
company. 

41.  Availability in the internal documents of the 
joint-stock  company  of  the  coordination 
procedure  of  operations  which  are  outside 
the  framework  of  financial  and  economic 
activity of the joint-stock company. 

42.  Absence 

in 

the 

joint-stock 

company 
executive  bodies  of  members  who  are  the 
member,  CEO 
(manager),  management 
board member or the employee of the legal 
entity  which  is  a  competitor  to  the  joint-
stock company. 

in 

the 

penalty 

joint-stock 

43.  Absence 

administrative 

crimes  against 

company 
executive  bodies  of  members  who  were 
found guilty of committing economic crimes 
the  government, 
and 
local 
interests  of  public  service  and 
authorities,  or  members  which  were 
enforced 
for 
entrepreneurial  or  financial  crimes,  crimes 
related to taxes and fees, securities market. 
If  the  functions  of  the  sole  executive  body 
are 
the  management 
organization  or  the  manager  –  compliance 
of  CEO  and  management  members  of  the 
management  organization  or  the  manager 
with  the  requirements  set  to  CEO  and 
management  members  of  the  joint-stock 
company. 
44.  Presence 

exercised 

charter  or 

internal 
documents of the joint-stock company of the 
management 
prohibition 
to  exercise 
organization 
similar 
competing 
company,  and  to  be  involved  in  any  other 

(the  manager) 
the 
in 

functions 

the 

the 

for 

by 

in 

Complied / 
 not complied 
Complied 

Note 

OJSC “Magnit Charter 

Complied 

Paragraph  16.2  of  the  article  6  of 
the Charter 

Complied 

Complied 

Complied 

The  procedure  of 
the  board 
the  Company 
resolutions  of 
within its competence is provided 
by  the  internal  documents  of 
OJSC  “Magnit”  –  the  Charter  of 
the  Company,  the  Regulation  on 
the board of OJSC “Magnit”. 
The  OJSC  “Magnit”  executive 
bodies  do  not  have  among  its 
is  a 
members  a  person  who 
member, 
(manager), 
CEO 
management  board  member  or 
the  employee  of  the  legal  entity 
which is a competitor to the joint-
stock company. 
The  company  does  not  hold 
information  about  any  members 
of  the  OJSC  “Magnit”  executive 
bodies 
of 
committing  economic  crimes  and 
crimes  against  the  government, 
interests  of  public  service  and 
local  authorities,  or  members 
administrative 
were 
penalty  for  entrepreneurial  or 
financial crimes, crimes related to 
taxes and fees, securities market. 

enforced 

found 

guilty 

Not complied  No  management  organization 

(manager). 

 
 
 
 
 
 
 
№  

Clause of the corporate code of conduct 

Complied / 
 not complied 

Note 

property  relations  with 
joint-stock 
company,  except  for  providing  services  to 
the 
(the 
  management  organization 
manager). 

the 

45.  Availability in the internal documents of the 
joint-stock  company  of  the  duty  of  the 
executive  bodies  to  avoid  any  actions  that 
will  lead  or  potentially  may  lead  to  the 
conflict between their interests and interests 
of the joint-stock company, and in case such 
a  conflict  arises    -  the  duty  to  disclose  the 
information  about  this  conflict  to  the  board 
of directors. 

46.  Presence 

in 

the 

charter  or 

internal 
documents of the joint-stock company of the 
selection  criteria 
the  management 
for 
organization (manager). 

47.  Reporting  by  the  executive  bodies  on  their 
activity to the board on a monthly basis. 

48.  Determination  in  contracts  and  agreements 
entered  into  by  the  joint-stock  company 
with  CEO 
(management  organization, 
manager) and management board members 
of the responsibility for breach and violation 
of regulations on confidentiality and insider 
information. 

Complied 

Paragraphs  18.1.  –  18.2.  of  the 
Charter of OJSC “Magnit”. 

Article 5 of the Regulation on the 
sole  executive  body  of  OJSC 
“Magnit”. 

Article  9  of  the  Regulations  on 
the 
collegial  executive  body 
(Management  Board)  of  OJSC 
“Magnit”. 

Not complied 

See clause 44 

to 

Not complied  According  to  the  article  69  of  the 
Federal  Law  “On  the  joint-stock 
companies”, the executive  bodies 
of  the  joint-stock  company  are 
the  board  of 
accountable 
directors,  therefore  the  right  of 
the  management  board  members 
to  get  the  information  about  the 
operation  and  activity  of  the 
executive  bodies  is  essential  and 
does  not  require  any  special 
prescription. 
- 

Complied 

The secretary of the company 

(the 

secretary  of 

49.  Presence  in  the  joint-stock  company  of  the 
special  official 
the 
company),  whose  duty  is  to  provide  the 
compliance of the bodies and officials of the 
joint-stock  company  with  the  procedural 
requirements  which  ensure  the  exercise  of 
rights  and  legal  interests  of  the  joint-stock 
company. 

50.  Availability 

internal 
documents of the joint-stock company of the 

the  charter  or 

in 

Not complied 

- 

Not complied 

- 

 
 
 
 
 
№  

Clause of the corporate code of conduct 

procedure  of  appointment  (election)  of  the 
company’s  secretary  and  assignment  duties 
to the secretary of the company. 

51.  Availability  in  the  charter  of  the  joint-stock 
company  of 
the 
candidates  for  the  secretary  position  of  the 
company. 

the  requirements 

to 

Complied / 
 not complied 

Note 

Not complied 

- 

Substantial corporate actions 

52.  Presence 

in 

the 

charter  or 

internal 
documents of the joint-stock company of the 
requirement on major transactions approval 
before its settlement. 

53.  The 

obligatory 

the 
independent appraiser for the assessment of 
the subject of the major transaction. 

involvement 

of 

the 

share 

stake  of 

54.  Presence  in  the  charter  of  the  joint-stock 
company  of  the  prohibition  on  any  actions 
within  the  acquisitions  (mergers)  of  the 
major 
joint-stock 
company,  aimed  at  the  interests  protection 
of  the  executive  bodies  (members  of  such 
joint-stock 
bodies)  and  members  of  the 
and 
company 
board 
deteriorating 
the 
shareholders  as  compared  to  the  present 
(particularly,  prohibition  on  the  decision  of 
issue  additional  shares, 
the  board 
securities 
shares  or 
securities providing the right for acquisition 
of  company’s  shares,  before  the  end  of  the 
presumptive  date  of  shares  acquisition, 
even  if  the  right  to  make  such  a  decision  is 
provided by the Charter). 

directors, 
of 

convertible 

position 

into 

the 

of 

to 

Not complied  

- 

Not complied 

- 

Since 01.07.2006 
the prohibition on 
realization of any 
of such actions by 
the company 
management 
authorities is 
determined by the 
article 84.6 of the 
Federal Law “On 
joint-stock 
companies”, 
which makes the 
inclusion of such 
regulations in the 
Charter 
unreasonable. 

of 

of 

the  offering  by 
the 

According  to  the  article  84.6  of 
the  Federal  Law  “On  joint-stock 
companies”,  after  receipt  by  the 
open  company  of  optional  or 
obligatory  offer,  the  decisions  on 
the  following  issues  are  taken 
only by the general shareholders’ 
meeting of the open company: 
- increase of the charter capital of 
the  open  company  through  the 
offering  of  the  additional  shares 
within  the  limits  of  number  and 
categories 
the 
(types) 
announced shares; 
the  open 
- 
company 
securities, 
convertible into shares, including 
the options of the open company; 
-  approval  of  the  transaction  or 
several  interrelated  transactions 
on  acquisition,  alienation  or 
possibility  of  alienation  by  the 
open  company  of  assets,  directly 
or indirectly, with the value of 10 
or  more  percents  of  the  balance 
sheet value of the open company, 
determined  on  the  basis  of  its 
accounting  report  for  the  last 
if  only  such 
reporting  date, 
transactions  are  not  made  in  the 
process of the ordinary economic 
activity  of  the  open  company  or 
were  not  made  before  the  open 
company  receives  optional  or 
obligatory  offer,  and  if  the  open 
company receives the optional or 

 
 
 
 
№  

Clause of the corporate code of conduct 

Complied / 
 not complied 

Note 

acquisition  by 

obligatory  offer  to  acquire  the 
publicly  traded  securities,  prior 
to  the  information  disclosure  on 
the delivery of the corresponding 
offer to the open company; 
-  approval  of  the  related  party 
transactions; 
- 
the  open 
company  of  the  allocated  shares 
in  cases  provided  by  the  present 
Federal Law; 
-  increase  of  the  remuneration  to 
the  persons 
the 
positions 
the  management 
in 
bodies  of  the  open  company, 
determination  of    conditions  of 
their  authorities, 
cessation  of 
including 
of 
increase  of  the  compensations 
paid  out  to  these  persons  in  case 
of cessation of their authorities. 
- 

determination 

occupying 

Not complied 

Complied 

Paragraph  8.7  of  the  Charter  of 
OJSC “Magnit”. 

Not complied 

- 

55.  Availability  in  the  charter  of  the  joint-stock 
company  of  the  requirement  on  obligatory 
involvement  of  the  independent  appraiser 
for  the  assessment  of  the  current  market 
price  of  the  shares  and  possible  changes  of 
their market price in the result of a merger. 

56.  Absence  in  the  joint-stock  company  charter 
of the acquirer’s release from the obligation 
the 
to  offer 
ordinary  shares  of  the  company,  owned  by 
them,  (securities  convertible  into  ordinary 
shares) within a merger. 

the  shareholders  selling 

57.  Presence in the joint-stock company charter 
or internal documents of the requirement on 
obligatory  involvement  of  the  independent 
appraiser  for  the  assessment  of  shares’ 
conversion ratio within reorganization. 

Information disclosure 

58.  Availability  of 

the 

internal  document 
ratified by the board of directors, stipulating 
the  rules  and  approaches  of  the  joint-stock 
company 
disclosure 
(Regulations on information policy). 

information 

to 

Complied 

59.  Availability in the internal documents of the 
joint-stock  company  of  the  requirement  to 
information  on  the  shares 
disclose  the 

Not complied 

is 

on 

Regulation 

ratified  by 

the 
The 
information  policy  of  OJSC 
“Magnit” 
the 
resolution  of 
the  board  of 
directors  of  OJSC  “Magnit”  on  
September  6,  2012,  minutes  of 
meeting  w/o  N  of  September  6, 
2012. 
Information  disclosure  is  carried 
the 
in  accordance  with 
out 
actual 
of 
requirements 

the 

 
 
 
№  

Clause of the corporate code of conduct 

offering,  on  persons  who  intend  to  acquire 
the offered shares, including the major share 
stake, and on whether the senior officials of 
the  joint-stock  company  will  take  part  in 
acquisition  of  the  shares  offered  by  the 
company. 

Complied / 
 not complied 

Note 

legislation of Russian Federation. 

Complied 

Paragraph 13.11 of the Charter of 
OJSC “Magnit”. 

60.  Availability 

of 

list 

the 

joint-stock  company 
in  the 
internal  documents 
of 
information,  documents  and  materials 
the 
should  be  provided 
which 
the 
shareholders 
questions 
general 
submitted 
shareholders’ meeting. 

to 
for  consideration  of 
to 

the 

Articles  26-28  of  the  Regulation 
on 
the  general  shareholders’ 
meeting of OJSC “Magnit”. 

Paragraphs  5.4  article  5  of 
Regulation on the OJSC “Magnit” 
information policy. 

The  Company’s  website  on  the 
Internet: 
http://www.magnit-
info.ru. 
Beginning  September  1,  2012  the 
Company  uses  for  information 
disclosure  the  following  internet 
page rendered by the information 
provider: 
disclosure 
http://www.e-
disclosure.ru/portal/company.asp
x?id=7671. 
Information  disclosure  is  carried 
the 
in  accordance  with 
out 
requirements 
actual 
of 
legislation of Russian Federation.  

the 

61.  Availability of the website of the joint-stock 
company  and  regular  disclosure  of  the 
information  about  the  joint-stock  company 
on its website.  

Complied 

Not complied 

62.  Availability in the internal documents of the 
joint-stock  company  of  the  requirement  to 
disclose  information  about  the  transactions 
of  the  joint-stock  company  with  persons 
referred to the top officials of the joint-stock 
company  by 
,  and  about 
the  charter 
transactions  of  joint-stock  company  with 
organizations in which 20 or more percents 
of  the  charter  capital  of  the  joint-stock 
company  directly  or  indirectly  are  owned 
by 
joint-stock 
company,  or  organizations,  which  can  be 
otherwise  considerably  influenced  by  the 
persons hereof.  

top  officials  of 

the 

the 

63.  Availability in the internal documents of the 
joint-stock  company  of  the  requirement  to 
disclose 
the 
transactions  which  may  affect  the  market 
joint-stock 
value  of  the  shares  of  the 
company 

information  about  all 

the 

Complied 

Information  disclosure  is  carried 
the 
in  accordance  with 
out 
requirements 
actual 
of 
legislation of Russian Federation  

the 

Point 3.3 of the article 3, point 4.8 
of the article 4 of the Regulations 
on the information policy of OJSC 

 
 
 
 
 
 
 
 
 
№  

Clause of the corporate code of conduct 

Complied / 
 not complied 

Note 

“Magnit”. 

64.  Availability  of 

the 

internal  document 
ratified by the board of directors on the use 
of material information on the activity of the 
joint-stock  company,  shares  and  other 
securities  of  the  company  and  transactions 
with  them,  which  is  not  public  and  the 
disclosure  of  which  can  considerably  affect 
the  market  value  of  shares  and  other 
securities of the joint-stock company. 

Complied 

on 

Regulation 

(is  ratified  by 

The 
the 
information  policy  of  OJSC 
“Magnit” 
the 
the  board  of 
resolution  of 
directors  of  OJSC  “Magnit”  on  
September  6,  2012,  minutes  of 
meeting  w/o  N  of  September  6, 
2012. 

Control over financial and economic activity 

65.  Availability  of  procedures  of  the  internal 
control  over  the  financial  and  economic 
activity  of  the  joint-stock  company,  ratified 
by the board of directors. 

Complied 

Complied 

Complied 

Complied 

66.  Presence  of  a  special  department  of  the 
joint-stock 
the 
company 
compliance  with  the  procedures  of  the 
internal  control  (supervision  and  auditing 
department) 

regulating 

67.  Availability in the internal documents of the 
joint-stock  company  of  the  requirement  for 
the  board  to  determine  the  structure  and 
members  of  supervision  and  auditing 
department of the joint-stock company  

68.  Absence 

in 

the  revision  and  auditing 
department  of  members  who  were  found 
guilty  of  committing  economic  crimes  and 
crimes  against  the  government,  interests  of 
public  service  and  local  authorities,  or 
enforced 
members 
administrative  penalty  for  entrepreneurial 
or  financial  crimes,  crimes  related  to  taxes 
and fees, securities market 

which 

were 

is 

ratified  by 

Regulation on the internal control 
over 
financial  and  economic 
activity  of  OJSC  “Magnit”  as 
the 
amended 
resolution  of  the  OJSC  “Magnit” 
board  of  directors  on  July  15, 
2010, minutes w/o N as of July 15, 
2010. 
Internal  audit  department 
is 
established  in  the  Company.  The 
document assigning the functions 
to the service – Regulation on the 
internal  control  over  financial 
and  any  economic  activity  of 
OJSC “Magnit”. 
Paragraph 3 of the article 3 of the 
Regulation on the internal control 
financial  and  economic 
over 
activity of OJSC “Magnit”. 

The  company  does  not  hold 
information  about  any  members 
of  the  OJSC  “Magnit”  revision 
and  auditing  department  found 
guilty  of  committing  economic 
crimes  and  crimes  against  the 
government,  interests  of  public 
service  and  local  authorities,  or 
enforced 
were 
members 
for 
administrative 
entrepreneurial 
financial 
crimes,  crimes  related  to  taxes 
and fees, securities market. 

penalty 
or 

 
 
 
 
 
 
Complied / 
 not complied 
Complied 

- 

Note 

№  

Clause of the corporate code of conduct 

69.  Absence 

in 

the  revision  and  auditing 
department  of  members  who  are 
the 
member  of  the  executive  body  of  the  joint-
stock  company  or  who  are  the  members, 
CEO  (manager),  management  member  or 
the  employee  of  the  legal  entity  which  is  a 
competitor to the joint-stock company. 

Not complied 

- 

70.  Availability in the internal documents of the 
joint-stock 
the  date  of 
company  of 
submitting the documents and materials for 
assessment  of  the  realized  financial  and 
economic  activity 
the  revision  and 
to 
auditing  department,  and  responsibility  of 
the officials and employees of the joint-stock 
company for not submitting them in time. 

71.  Availability 

in  the 

joint-stock  company 
internal  documents  of  the  obligation  of  the 
revision and auditing department to inform 
the  audit  committee  of 
the  detected 
breaches, and in case of absence of the audit 
committee – to inform the board of directors 
of the joint-stock company. 

Complied 

Paragraph  4.9  article  3  of  the 
Regulation on the internal control 
over 
financial  and  economic 
activity of OJSC “Magnit”. 

Not complied 

- 

72.  Presence  in  the  internal  documents  of  the 
joint-stock  company  of  the  requirement  on 
preliminary assessment  by the revision and 
auditing  department  of  operations  not 
provided  by  the  economic  and  financial 
plan  of  the  joint-stock  company  (irregular 
operations). 

73.  Availability 

in  the 

joint-stock  company 
approval 
internal  documents  of 
procedure  for  irregular  operation  with  the 
board. 

the 

74.  Availability  of 

the 

internal  document 
ratified by the  board, which determines the 
procedure  of  the  revision  commission’s 
inspection  of  the  financial  and  economic 
activity of the joint-stock company. 

Not complied 

- 

Complied 

on 

the 

Regulation 
revision 
commission  of  OJSC  “Magnit”  is 
ratified  by  the  annual  general 
shareholders’  meeting  of  OJSC 
“Magnit”  on 
June  24,  2010, 
minutes  of  meeting  w/o  N  of  
June 28, 2010. 

75.  The  assessment  by  the  audit  committee  of 
its 
the 

before 
the  shareholders  at 

auditors’ 
the 
submission 
to 
general shareholders’ meeting. 

conclusion 

Complied 

Paragraph  6.7.  article  6  of  the 
Regulation  on  the  committees  of 
the board of OJSC “Magnit”. 

Dividends 

 
 
 
 
 
 
№  

Clause of the corporate code of conduct 

76.  Availability  of 

the 

internal  document 
ratified  by  the  board  of  directors,  which 
regulates 
in  adoption  of 
the  board 
the  amount  of 
recommendations  on 
dividends (Regulations on dividend policy). 

77.  Availability  in  the  Regulation  on  dividend 
policy of the procedure of determination of 
the minimum share of net profit of the joint-
stock  company  for  dividend  payment,  and 
conditions  under  which  the  dividends  on 
privileged  shares  are  not  paid  out  or  paid 
out  partially,  the  dividend  amount  on 
which is set in the charter  of the joint-stock 
company. 

it 

in 

to 

78.  Release  of  the  information  on  dividend 
joint-stock  company  and 
policy  of  the 
the  periodical, 
amendments 
provided  by  the  charter  of  the  joint-stock 
company  for  release  of  the  announcements 
on  holding  of  the  general  shareholders’ 
above 
meeting 
the 
information  on  the 
joint-stock  company 
website. 

and  placing  of 

Complied / 
 not complied 
Complied 

Complied  

Complied 

Note 

the  dividend 
Regulation  on 
policy  of  OJSC  “Magnit” 
is 
ratified  by  the  resolution  of  the 
board  of  OJSC  “Magnit”  on 
September  6,  2012,  minutes  w/o 
N as of September 6, 2012. 
Paragraphs  2.4  and  2.5  of  the 
article  2  of  the  Regulation  on 
dividend 
of  OJSC 
policy 
“Magnit”. 

There are  no privileged shares in 
the Company. 

The  Regulation  on  dividend 
policy  of  OJSC  “Magnit” 
is 
posted  on  the  OJSC  “Magnit” 
website 
(http://www.magnit-
info.ru), and on the internet page 
information 
rendered  by 
the 
provider 
disclosure 
(http://www.e-
disclosure.ru/portal/company.asp
x?id=7671). 

 
 
 
 
 
1188..   IINNFFOORRMMAATTIIOONN   OONN   TTHHEE   AAUUDDIITTOORR   AANNDD   TTHHEE   CCOONNSSUULLTTAANNTT   OOFF   TTHHEE  
CCOOMMPPAANNYY 

Under  the  resolution  of  the  annual  general  shareholders’  meeting  of  May  28,  2012 
(minutes of 28.05.2012) the auditing firm LLC AF “Faber Lex” was appointed as the Company 
auditor for RAS for the year 2012. 

Among  the  factors  which  were  taken  into  account  to  choose  the  auditing  firm  are 

duration, the cost of auditing services, the number of employees and their qualification. 

Information  on  the  auditor  of  the  Company  which  conducted  the  audit  on  the 
statements  of  the  Company  for  the  year  2012  in  accordance  with  the  Russian  Accounting 
Standards:  

The  auditor  of  the  Company  in  2012  was  Limited  Liability  Company  Auditing  firm 
“Faber Lex” (LLC AF “Faber Lex”), address: 144/2 Krasnykh Partizan street, Krasnodar, Russian 
Federation. 
LLC  AF  “Faber  Lex”  is  the  member  of  the  Moscow  Chamber  of  Auditors  according  and  was
included in the register of auditors and audit firms of self-regulatory organization of auditors 
on December 23, 2009 under the principal registration number 10203002910. 

Telephone number: +7 (861) 220-03-20, 221-41-42, 226-41-41, 226-45-22, 226-38-15, 226-44-

54. 

Information  on  the  auditor  of  the  Company  which  conducted  the  audit  on  the 

statements of the Company for the year 2012 in accorddance with the IFRS: 

2012  statements  in  accordance  with  the  International  Financial  Reporting  Standards 
were  audited  by  “Ernst&Young”  Limited  liability  Company  (Ernst&Young  LLC);  address: 
building 1, 77, Sadovnicheskaya naberezhnaya, Moscow, 115035, Russian Federation. 

Ernst&Young LLC is the member of the Russian Chamber of Auditors in accordance with 
the  the  Decision  of  the  Board  of  the  Noncommercial  partnership  of  the  Russian  Chamber  of 
Auditors  as  of  December  28,  2009,  certificate  number  3028  of  December  21,  2009,  Principal 
Register Applicant Number 10201017420. 

Telephone number: +7 (495) 755-97-00 

 
 
 
 
 
 
Information  on  the  financial  consultant  of  the  Company  on  the  securities 

market, which signed the securities prospectus registered on 06.03.2006: 

Full name of organization 

Short name of organization 

Open Joint-Stock Company «Federal Fund 
Corporation» 
OJSC «FFC» 

Address 

25 Ostozhenka str., Moscow, Russia 

Phone number (including city code) 

+7 (495) 737-86-30 

Fax number (including city code) 

+7 (495) 737-86-32 

Website of the financial consultant to disclose 
the information about the Issuer according to 
the requirements of the Regulation on the 
information disclosure by the issuer of 
securities, approved by FFMS 
The number of license of the professional on 
the securities market 

Date of issue 
Period of validity 
Issuing authority 

www.fscorp.ru 

License of the professional participant of 
the securities market for brokerage activity  
№ 077-06174-100000, License of the 
professional participant of the securities 
market for dealer activity № 077-06178-
010000 
August 29, 2003  
Without restriction on the period of validity 
Federal Financial Markets Service 

Services provided by the financial consultant: 
-  Preparation  of  the  draft  prospectus  according  to  the  information  provided  by  the 

Company; 

- 

Signing  of  the  prospectus  approved  by  the  Company,  after  adequate  verification 
based on all the documents provided by the Company, according to the written inquiries of the 
Financial  consultant  and  receipt  of  the  proper  written  certifications  of  the  Company  on 
reliability,  adequacy  and  completeness  of  the  information  contained  in  the  above  indicated 
document  and  to  be  included  in  the  prospectus,  except  for  the  part,  verified  by  the  auditor 
and/or appraiser; 

-  Expertise  of  the  documents  filed  to  the  registration  authority  for  the  prospectus 

registration; 

- 

Signing  of  documentation,  which  might  be  required  from  the  Company  for 

organization of stock trading with the trade organizers; 

-  Advice  services  on  securities  issue,  including  information  disclosure  on  the 

securities market according to the requirements of the legislation. 

 
 
 
 
 
1199..   IINNFFOORRMMAATTIIOONN   OONN   VVOOLLUUMMEESS   OOFF   TTHHEE   UUTTIILLIIZZEEDD   EENNEERRGGYY   RREESSOOUURRCCEESS  
DDUURRIINNGG  22001122  

Type of energy resources  

Utilization 
volume terms  

capacity 

in 

Utilization capacity in money 
terms, thousand rubles  

Electrical energy 

Thermal energy  

Gas  

2,727,133 kW 

708.9 Gcal 

17,720.8 thousand cubic 
meters 

11,835.8 

716 

103.1 

 
AANNNNEEXX  TTOO  22001122  AANNNNUUAALL  RREEPPOORRTT  OOFF  OOJJSSCC  ““MMAAGGNNIITT””  

ANNEX № 1: Consolidated financial statements of OJSC “Magnit” for the 
year ended on December 31, 2012. 

ANNEX № 2: Consolidated financial statements of OJSC "Magnit" for the 
year 2012 prepared in accordance with the Federal law N 208-FZ "On 
consolidated financial statements". 

ANNEX № 3: Accounting report of JSC “Tander” for the year 2012 
prepared in accordance with RAS: 
Auditor’s report of “Faber Leks” Audit Limited Liability Company of the annual 
accounting report of JSC “Tander” for the financial year 2012 
Accounting reports of JSC “Tander” for the year 2012 
Explanations to the balance sheet and profit and loss statement of JSC "Tander" for 
the year 2012 

ANNEX № 4: Accounting report of OJSC “Magnit” for the year 2012 
prepared in accordance with RAS:  
Auditor’s report of “Faber Leks” Audit Limited Liability Company of the annual 
accounting report of OJSC “Magnit” for the financial year 2012 
Accounting reports of CJSC “Magnit” for the year 2012 
Explanations to the balance sheet and profit and loss statement of OJSC "Magnit" for 
the year 2012