In order to improve workplace management productivity, the Occupational Safety Service introduced, developed, and implemented the following new functions in 2018:

• work in the risk elimination system;
• a set of measures to reduce workplace injuries;
• preparation for inspections by the Inspectorate-General for Labor using check lists that were introduced in June 2018;
• organizing the work of the LLC “TK Zelenaya Liniya” and LLC “TD-holding” (integrated into the occupational safety system);
• obtaining feedback from the sales unit;
• forecasting the risk of workplace injuries (during sales peaks and different seasons);
• an initiative to amend legislation.

The Company has an employee incentive system for health and safety and a lack of workplace injuries. The incentive-based portion of a manager’s salary directly depends on the number of workplace injuries that occur within the unit overseen by the manager.

In 2018, the Company:

• provided workers with proper personal protective gear and compliance certificates;
• conducted preliminary and periodic medical examinations of employees;
• provided health and safety training for its employees;
• conducted a special assessment of working conditions in the workplace.

The health and safety management system covers 100% of the Group’s employees. A total of 225,360 employees received health and safety training in 2018. As part of preventive measures to reduce the level of workplace injuries, the Company held unscheduled health and safety briefings and training, updated its health and safety policies and procedures, and conducted a special assessment of working conditions. Compliance with health and safety requirements is monitored internally on an ongoing basis. Information on any deviations that are identified is sent to the director of the enterprise in the form of a plan on how to eliminate shortcomings.

Based on the results of inspections by the Inspectorate-General for Labor, the number of health and safety violations declined by 12.5% and the total amount of fines decreased by 71.5% in 2018.

Magnit devotes significant attention to work that aims to reduce workplace injuries and regularly monitors compliance with health and safety requirements in production activities. In 2018, accidents were investigated, the responsible parties were identified, the causes of the risk were established, and measures were taken to prevent similar incidents in future activities.

The workplace injury rate decreased by 17% compared with 2017.

Company’s plans for 2019:

• enhance the level of professional training for health and safety employees;
• minimize the workplace injury rate at distribution centers and vehicle fleet enterprises;
• conduct a special assessment of working conditions at 100% of the Company’s workplaces;
• utilize the concept of financial support provided by the Social Insurance Fund of the Russian Federation for preventive measures to reduce workplace injuries and occupational diseases among the Company’s employees;
• provide all the Company’s units with documentation on occupational safety issues.