Magnit PJSC announced the start of the key stage of implementation of its SAP-based digital transformation. In October, the Company commenced operation of several SAP solutions as well as a new store back office system developed in-house. The new solutions are implemented within the so-called "pilot scope" for now. After the pilot stage, they will be rolled out across the entire chain, provided that they demonstrate stable performance. The roll-out will be split into several stages, which will enable the Company to minimize its operational risks and make the massive transition to SAP as easy and simple as possible. Pilot launches will continue till the end of 2022, with the roll-out planned for completion in 2025. The Company expects that the impact from the Program's implementation may amount to billions rubles over a number of years. The Company plans to begin assessing the actual impacts in 2023, when half of its stores will use the solutions. At the present time three pilot business units and two Magnit Cosmetic stores in Krasnodar use the new solutions. As of October 19, 2021, the Company has launched SAP S/4HANA (end-to-end inventory and financial accounting solution, a digital core combining all corporate business processes), SAP CAR (transactional data storage), SAP ATT (solution for ensuring operations' compliance with product traceability laws), SAP Process Orchestration (tools for rapid business processes automation, integration and optimization).