Company presentation May 2019
Disclaimer This presentation has been produced by Europris ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in accessible format. This Presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are several other facts and circumstances relevant to the Company and its present and future financial condition that not been included in this Presentation. This Presentation may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without prior written consent of the Company. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates or intends to operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to our actual results. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By reviewing this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial reports of the Company and the disclosures therein. The distribution of this Presentation in certain jurisdictions may be restricted by law. Persons in possession of this Presentation are required to inform themselves about, and to observe, any such restrictions. No action has been taken or will be taken in any jurisdiction by the Company that would permit the possession or distribution of this Presentation in any country or jurisdiction where specific action for that purpose is required. No shares or other securities are being offered pursuant to this Presentation. This Presentation does not constitute an offer to sell or form part of, and should not be construed as, an offer or invitation for the sale or subscription of, or a solicitation of an offer to buy or subscribe for, any shares or other securities in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. By reviewing this Presentation you agree to be bound by the foregoing limitations. This Presentation speaks as of 5 December 2018. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation shall be governed by Norwegian law, and any disputes relating to hereto is subject to the sole and exclusive jurisdiction of Norwegian courts. 2
First choice for anyone who wants to shop convenient, smart, big and at low price 3
Europris – a growth story NOK million 25 years of JV with Listing growth Tokmanni on Store #250 and opened Oslo Shanghai Børs 6 000 sourcing office Acquired by 5 000 Nordic Capital Central warehouse 4 000 opened in Acquired by Fredrikstad Store Founded by IK 3 000 #150 Wiggo Investment Erichsen Partners 2 000 Store #100 Wholesale agreement with 1 000 Terje Høili AS 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4
Norway’s #1 discount variety retailer • 31 million customer transactions in 2018 Customers • Widely recognised brand and price position 1 • Over 1 million leaflets in distribution Marketing • More than 300 000 subscribers to digital newsletter • Cost-efficient locations and operations Stores • 224 of 238 like-for-like (LFL) stores profitable in 2018 • Track-record of 15 new or relocated stores p.a. • More than 40 years of wholesaler experience 262 Logistics • Efficient set-up and nationwide reach • New modern central warehouse from Q2 2019 • From more than 30 countries Sourcing Stores • Pan-Nordic agreement with ÖoB and Tokmanni 1 Mediacom annual market survey 5
With a strong brand 100% #1 Recognition Price perception Source: Mediacom annual market survey 6 Ranking among wide variety retailers (Biltema, Clas Ohlson, Coop OBS, Europris, Jernia, Jula, Jysk, Nille, Plantasjen, Rusta)
Sustainability is an integrated part of the strategy Satisfied customers Resource efficient Sustainable value Responsible and local business model chain employer communities Palm-oil-free products Energy consumption reduced Well-being and job satisfaction at In-house testing and control to all-time high by 23% since 2014 improve product safety Supporting plastic waste Selected reduction with a plastic bag fee 65% waste sorting, moving Interactive training of all Customer satisfaction increased initiatives towards target of 80% employees 18% since 2014 1 Increased share of sourcing to Guidelines and training for ethical >85% from certified factories Energy efficient and Support for Church City Mission, (BSCI, Sedex, ICTI) environment-friendly new businesses conduct, anti- work training and sponsorships corruption and whistleblowing warehouse routines 1 MediaCom – barriere survey 2018 7
Significant market potential for multi-category retailers Addressable market in Norway Population per country million Groceries General merchandise ~ 300 . 5.3 NOKbn 1 5.5 10.2 ~ 180. NOKbn 1 Specialty retail ~ 420 . NOKbn 1 Sources: Statistics Norway (SSB), 2017; Statistics Sweden (SCB), 2018 LTM; Statistics Finland (Stat), 2016 8 1 Total addressable market for packaged food, non-alcoholic beverage, clothing and shoes, furnishing, household equipment and routine house maintenance
In a world of winners and losers, variety retail is thriving While online is challenging bricks-and- mortar… Variety retail has grown ~twice the speed of all retail Variety retail 1 Online share of retail sales Sales growth total vs. variety retail Percent CAGR 2012-17, constant Total retail 16 +10.8 p.p. 5.7% 2% 14 +7.5 p.p. 4.7% 12 +5.0 p.p. 3% 10 +3.9 p.p. 2% 8 +5.4 p.p. 0.5% 6 6.5% 4 3% 2 6.5% 0 3% 2007 2012 2017 1 General retailers with wide discount range. 9 Source: Euromonitor International; see appendix for full presentation
Track record of above-market growth Revenue and EBITDA margin 1 Total growth for Europris and market 2,3 NOK billion 9,3% 5,8 5,4 8,4% 5,1 7,7% 4,6 4,3 6,0% 5,3% 14% 13% 13% 12% 12% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Europris Kvarud Revenue EBITDA margin 1 Europris group figures 10 2 Europris chain figures 3 Kvarud Analyse: Norwegian shopping centre index
Be the best discount variety retailer in Europe Fogra Reklamefoto 11
Strategic focus areas Strengthen price Improve customer Drive customer and cost position experience growth 12
Strengthen price and cost position Strengthen price Improve customer Drive customer and cost position experience growth 13
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