1994 – 1998: Early years: wholesale distribution

• Foundation of wholesale business by Mr. Galitskiy
• Tander becomes one of the major distributors of household products and cosmetics in Russia
• Decision to expand into food retail market

1998 – 1999: Entrance into food retail

• Firstconvenience store opened in Krasnodar
• Experiments with format
• Stores merged into Magnit discounter retail chain

2001 – 2005: Extensive roll-out to capture market share

• Rapid regional roll-out: 1,500 stores by the end of 2005
• Adoption of IFRS
• Strict financial control
• Performance-linked compensation

2006 – 2009: Continued growth with focus on margin expansion and multi-format

• Leading food retailer in Russia by number of stores
• IPO in 2006
• Started building hypermarkets
• Independent director elected to the Board
• Audit Committee established
• Corporate governance rules established to comply with best practice
• SPO – 2008, 2009
• 24 hypermarkets opened in 2007-2009
• 636 convenience stores opened in 2009 (the total store base is 3,228 as of December 31, 2009)

2010: Strong performer compared to peers 

• Flexible pricing and assortment matrix adjustible to volatile disposable income
• Large investment programme for 2010: plan to make Capital expenditures of approximately $1 bn
• Plan to open over 450 – 550 convenience stores during 2010
• 25 – 30 hypermarkets to open in 2010
• Ongoing efficiency inprovement
  

  "Magnit" chain today is:

• The market leader according to the number of trade objects and their covering territory in Russia; it has 63 branches, more than 3492 stores in more than 1109 locations. Currently several tens of stores are opening every month;
• About 83 000 employees who provide the customers with an opportunity to purchase qualitative consumer goods at reasonable prices;
• the latest methods and technologies in distribution, sales, finance, strategy and personnel selection allow to effectively operate the company and to lower the price of goods for the ultimate consumer;
• the chain of distribution centers all over the European part of Russia that get the goods from big suppliers and prepare them for delivery to stores;
• The company with a large fleet of vehicles carrying out long-distance cargo transportations all over the European part of Russia;
• About 570 names of private label goods.