Procter & Gamble and Magnit Partner up for Sustainable Development In

Procter & Gamble and Magnit Partner Up for Sustainable Development in Russia

 P&G and Magnit announce large-scale partnership for sustainable development;  P&G and Magnit announce the launch of their social and environmental campaign ‘The Second Life of Plastic’ and the largest chain of recycling kiosks in Russia;  Dima Bilan, Ambassador of ‘The Second Life of Plastic’ Campaign, to create Russia’s first music environmental manifesto together with his followers;  P&G launches the ‘Turning Point’, a special project to support the Earth Hour, in Magnit stores under the WWF auspices;  P&G announces the launch of Fairy Pure&Clean in Russia. 11 February 2020, Moscow, Russia –Procter & Gamble and the retailer Magnit have announces their partnership to promote responsible consumption in Russia. The details of the partnership were presented and P&G’s “Ecology of Business” media forum. The Second Life of Plastic The partnership’s key project will be the social and environmental campaign ‘The Second Life of Plastic’. From May through September 2020, every P&G item bought in the Magnit stores as part of the campaign will give the buyer a vote for a Russian city. Based on the results of the open vote on magnit.ru, children’s playgrounds made of recycled plastic will be built in the top four cities. Moreover, 80 kiosks collecting plastic for recycling will be installed in Magnit stores in Moscow and Krasnodar. Magnit and P&G’s recycling kiosk chain will be the largest in Russia. Sotirios Marinidis, Head of P&G in Eastern Europe: “Brands play a significant role in promoting responsible consumption. The result of this work largely depends on the scale and effect of the partnership and alliances. We started working with Magnit from the first day of its existence, 25 years ago. It’s important for us to continue our cooperation and lead at the new stage of the industry’s development, with our ambitious goals to develop responsible consumption.’ Vladimir Sorokin, Magnit Deputy CEO and Commercial Director: “We see the Russian consumers’ growing concern about the environment; it’s one of the most visible trends of the recent years. Using our chain’s geographic presence, we would like to give people in Russia more opportunities for responsible consumption and tell them that anyone can be part of the solution to the plastic problem. I’m very pleased that Magnit is doing this together with P&G, our close partner of many years, which shares our sustainable development values.”

The project implies a large-scale marketing campaign endorsed by the famous Russian singer and actor Dima Bilan. With direct participation of his Instagram followers, the performer will create Russia’s first musical eco-manifest. The most active participants of the online competition will get to perform the resulting piece with Bilan at one of his shows. Dima Bilan, singer and actor: “It’s clear that our generation is facing the final countdown to some irreversible changes in climate and environment. It’s important that each of us not just watch it but act. The first simple step is responsible consumption. It’s essential that we change our habits: recycle, save water and power, and choose products of environmentally responsible companies. Together we can save our planet.” ‘Make a Turning Point: Do Laundry and Dishes at 30̊’ Another line of P&G and Magnit’s partnership will be their initiative with WWF Russia, the ‘Turning Point’, supporting the international Earth Hour movement. Joining forces, P&G, Magnit and WWF Russia will urge Russians to do laundry and dishes at lower temperatures. This step is aimed at reducing water and power consumption and lowering greenhouse gas emissions. Research

shows that lowering the washing temperature from 40 to 30 degrees reduces power consumption by 57% and CO2 emissions, by 35%1. P&G’s detergents maintain their high performance even in cold water. During the ‘Turning Point’ campaign, 1 rouble of every item of Ariel, Fairy or Lenor purchased in Magnit stores will be donated to WWF´s forest preservation and climate change prevention initiatives in Russia. And on March 28th, at Earth Hour, consumers will be able to buy P&G goods in the Magnit chain at special prices. Fairy Pure&Clean – Now in Russia P&G’s sustainable approach across the cycle of product creation and use and innovative products developed with care for the environment were presented at the “Ecology of Business” media forum by Virginie Helias, P&G’s Chief Sustainability Officer. In particular, P&G launches in Russia the Fairy Pure&Clean collection with 100-percent natural fragrances of organically grown lavender, rosemary, bergamot and ginger. For those who prefer their dishwashing liquid without fragrance, the company offers a perfume- and dye-free option. The new collection is dermatologically tested, phosphate-free, and environmentally certified. Its formulation remains effective in cold water, removing even the most difficult stains. The detergent’s active components are 100-percent biodegradable. Fairy Pure&Clean’s clear bottle is 100-percent recyclable. Virginie Helias, P&G’s VP for Sustainable Development: ‘At the Davos Forum, 2020 was called a Super Year. The year when collaborative action will put us on the right trajectory. For P&G as well, it will be a super year, the year of regenerative action, where we will be in the lead, to activate our Ambition 2030 goals, across our brands, and through innovation, and transformative partnerships. We will strive to not only reduce our impact, but be a force for regeneration, to address the challenges of plastic waste, water scarcity and biodiversity loss. And you will hear more about our commitments to forest conservation.’ Anna Meleshina, Magnit Director for Corporate Relations and Sustainable Development: ‘Our partnership with P&G will become a key project implementing Magnit’s sustainable development strategy, one of whose main goals is to lead in reducing our environmental footprint. Sustainability is our focus. In 2019, we expanded the range of sustainable home care products by 60%, which was met very positively by our consumers, reflecting in a sales increase of 75%. We have launched pilot projects of in-store waste collection, which have become very popular. Together with P&G, will continue changing the buyers’ treatment of plastic waste and fostering the overall culture of responsible consumption.’

About P&G P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ariel®, Gillette®, Head & Shoulders®, Lenor®, Herbal Essences®, Oral-B®, Pampers®, Pantene®, Tide®, and Vicks®. P&G operates in nearly 70 countries worldwide. Please visit www.pg.com for the latest news and information about P&G and its brands. Media information is available on www.pgrussia.news.

About Magnit

The Krasnodar-based Public Joint-Stock Company Magnit (MOEX and LSE: MGNT, S&P – “BB”) is a group holding company (‘the Company’) focusing on retail sales through the Magnit chain. The Magnit chain is one of the leading food retail chains in Russia. As at 31 December 2019, it comprised 20,725 stores: 14,622 neighborhood stores, 473 family-format supermarkets, and 5,630 drogerie-format points in 3,742 cities and towns of the Russian Federation.

1 A 2018 study by Ariel and Energy Saving Trust (British organization focusing on energy efficiency, savings, and sustainable use).

The Company operates its own logistics system, which had 38 distribution centers, and an automated system of stock management, with 5,656 units of motor fleet, as at 31 December 2019. According to the Company’s unaudited IFRS management statements, its revenue in 2019 was RUB1.369 bn and EBITDA rub 83 bn.

Press contact: [email protected]

About WWF Russia The World Wildlife Fund (WWF) is a leading independent environmental organization, uniting around 5 million permanent allies and active in over 100 countries. Its mission is to prevent the increasing degradation of the planet’s natural environment and strike harmony between humankind and nature. WWF’s first projects in Russia started in 1988, and in 1994 the Fund opened a local office. In 2004, WWF Russia became a Russian national organization. Over the past 25 years, WWF has successfully carried out over 1,000 field projects in 47 regions of Russia. WWF Russia’s priority regions are the Russian Far East, the Altai and Sayan Mountains, the Caucasus, The Barents Sea, Kamchatka, the Arctic, and Central Asia. WWF Russia aims to preserve the rich biodiversity and natural dynamic of North Eurasian ecosystems, restricting human environmental footprint to the planet’s bio resilience levels.