EUROCASH Empowering modern retail entrepreneurs Eurocash Group - - PowerPoint PPT Presentation

EUROCASH

Empowering modern retail entrepreneurs

Eurocash Group – executive summary

2

• NO. 1. WHOLESALE DISTRIBUTOR IN POLAND

with 27% market share & the biggest (3bn Pln) FMCG ecommerce platform DYNAMICALLY ENTERING INTO RETAIL already no. 7 with objective to become no. 3 retail chain in Poland WITH INNOVATION AND BUSINESS DEVELOPMENT PROJECTS DELIVERING RESULTS addressing digitalization, personalization & automation needs AS THE DOMINANT SMALL FORMAT & PROXIMITY STORE OPERATOR supported by globally changing trends & consumer habits

Group: steady strategy execution to build 2nd biggest purchasing power

3

Building scale and purchasing power to bring competitiveness to small stores

3 9 3 6 10 5 9 5 7 17 3 1,7 7 4 5 9 11 8 10 11 19 32

3 5 7 7 7 10 10 10 11 16 25 48

Selgros Dino Metro (Makro C&C) Żabka Intermarche Carrefour Auchan Kaufland Tesco Lidl Eurocash (Pro-Forma) Biedronka

2017 2013 2009

3 1 2 2 5 6 7 8 10 17 17 20 20 23 25

2 4 6 8 10 12 14 16 18 20 22 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Pro Forma

Source: Company data

Eurocash Group sales evolution (PLN bn) Ranking of FMCG distributors & retailers (sales, PLN bn)

Source: RZ500

• I. Wholesale: No. 1 distributor in Poland

4

Building scale and purchasing power to bring competitiveness to small stores

Wholesale market share

Eurocash Group 27%

Makro - FMCG (C&C) 6% Selgros (C&C) 4% PT Dystrybucja (T) 4% Distribev (A) 3%

Bać-Pol 2%

Alti (A) 1%

PHUP Gniezno (T) 1%

Others 51%

• Local sub-wholesalers
• Producers own distribution
• Specialized & categories not

covered by Eurocash

Dedicated distribution platforms covering different store profiles

25% 25% 13% 32% 5%

4,3 4,4 2,3 5,7 0,8

Sales (PLN bn)

Cash&Carry Eurocash Distribution Alcohol Distribution Tobacco & Impulse Distribution HoReCa

Delivery Generalists Specialized

T- Tobacco; A-Alcohol,

Mob Mobil ility ity

The first mobile application on the market supporting store management.

Ti Time me sa saving ving

Intelligent, shopping lists based on advanced algorithms. The fastest on the market, "learning" of the user, product search engine.

Smar mart b t busi usiness ness dec decisi sions

• ns

Over 1000 professional articles, legal advice, personnel management, information on products advertised on TV, advice on the display of products.

Sec Section " tion "I Kn I Know Mo More" e" Mod

• dule "

ule "In In Y You

• ur

r Ne Neighb ighbou

• urho

rhood

• d"

Demographic data of consumers from the shop area, preview of promotional leaflets of local competitors, information about the best-selling products in the neighborhood.

• I. Wholesale: eCommerce FMCG - globally unique, Poland’s biggest

A revolution that ensures ongoing competitiveness of the independent market

5

B2B e-commerce sales

3

bn bn

• f Eurocash Distribution

customers order via electronic channels

85 85

%

Today: Eurocash Distribution Tomorrow : all wholesale

Alcohol Distribution, Tobacco, Cash&Carry, Others

and gives opportunity to integrate wholesale assets

• II. Retail: 1st nationwide proximity supermarket chain in Poland

6

Entering retail through market consolidation, followed by operational integration, with LT objective to become no. 3 retailer in Poland

Ranking of retailers (2017 sales, PLN bn) 4,3 3,1

1 527 stores

989

Number Of Stores Retail Sales (PLN bn)

7.4 bn PLN

Own Franchise

538

+5 bn PLN

> Retail Sales

+900 stores

> By 2023 Acquisitions Green Field Franchise Chain 2-3Y integration to ensure standardized business with unified processes

2 2 3 3 3 5 7 7 7 10 10 10 11 16 48 Piotr i Paweł Polomarket Stokrotka E.Leclerc Netto Dino Intermarche Żabka Delikatesy Centrum Carrefour Kaufland Auchan Tesco Lidl Biedronka

LT

• bjective

EV/Sales 39% (JMT) 36% (TSCO) 22% (CA) ? 62% (PE) 114% (DIN, IPO) 49% (PE) 49%

Profi (Romania)

68% (PE) Average

consolidated 5.1

*PE- Private Equity deal

• II. Retail: Consistently investing in the future position

7

Bumps on the road are expected, but potential is huge and Eurocash has proven record for executing challenging business plans

Polish peers EBITDA Margin (2017 or 2016)

6,3% 4,5% 2,1% 7,2% 5,9% 6,2% 8,5% 6,6%

2016 2017 3Q 2018 Biedronka Kaufland Żabka Dino Netto

237 394

2016 2017

• incl. EKO&Mila

4,6 7,4

2016 2017

• incl. EKO&Mila

1 086 1 527

2016 2017

• incl. EKO&Mila

20,1 18,1

2016 2017

• incl. EKO&Mila

Selling area (k sqm) Sales revenues (PLN bn)

• No. of stores

Sales per sqm (k PLN)

+66% +60% +41%

Eurocash Retail

 STORES REMODELING

EKO – 183 stores (Sept),191 (Oct 2018)

INTEGRATION:

Mila start in 2019 2017 2018 2019 2020 2021

 EXPANSION ACCELERATION  SALES DEVELOPMENT  HO & OPERATIONS

• III. Projects: delivering innovative form of category development

8

Each start-up was unprofitable in initial phase, but nowadays gives competitive advantage and profits

35 45 57 83 98 121 132 137 146 156

1Q 2016 2Q 3Q 4Q 1Q 2017 2Q 3Q 4Q 1Q 2018 2Q

Fresh Project sales evolution (PLN m)

Further potential for growth:

 Increase of Delikatesy Centrum penetration  Development to Lewiatan, Gama, Euro Sklep, Groszek  Expansion with own retail chain

FRESH PROJECT

Break even point in 3.5 years

FAKTORIA WIN

Reinvented wine category in small stores

29.6% 30.6% 34.7% 2013 2015 2017 Small Format stores market share

WHISKY

Total market has been recently developed mainly by small format stores

33% 19% 17% 30% 35% 17% 16% 32% Discounters Hypermarkets Supermarkets Small Stores 2017 2018 YTD

17% 3% 3% 14%

Discounters Hypermarkets Supermarkets Small Stores

Whisky sales dynamics in 2018 (July YTD) Whisky market share Example how to bring large format category to small stores

Source: Nielsen

 B2C eCommerce Warsaw market leader with app. 40% annual growth  Development with Delikatesy Centrum to bring stock-up mission to small stores  Fully automated warehouse to be tested as a potential for duplication in wholesale & retail logistics

• III. Projects: innovative store concepts

9

Other start-ups at initial phase, impacting short-term EBITDA, with high future potential

FRISCO.PL

 Proven concept of liquor store – category with Eurocash purchase power  20 stores: 12 own, 10 franchise and agency  Nationwide roll-out initiated with initial clusters development

DUŻY BEN

• IV. Poland is a place for proven concepts of small stores

10

Demographics: small towns, small living quarters, daily shopping nearby assure mom & pops stores half of the market

40% 13% 11% 8% 28%

Rura ral Ci Cities 0-2

• 20K

Ci Cities 20-5

• 50K

Ci Cities 50-1

• 100K

Ci Cities 100K+

 60% of Poles live in villages & small towns

Share of distribution channels in food sales in Poland LTM July 2018, % Percentage of population living in cities/rural area

42,0%

15,4%

9,8%

32,8%

Small Format Supermarkets 300-2500 Hypermarkets 2500+ Discounters

 Small living quarters have limited space to store food  As a result, Poles shop almost every day

Source: GUS, Nielsen

(YTD Sep 2018, YoY) Food market growth by channels

• IV. European trends of growing small stores already visible in Poland

11

Acceleration of sales dynamics of small stores in 2018  Small format increasing sales by 6.3% vs. food market growth of 5.3% in YTD Sep 2018.  Small format stores and discounters gaining market share at expense of super/ hypermarkets

Source: www.retailytics.com

0% 1% 2% 3% 4% 5% 6%

Hypers (L) 6501-14800 Hypers (M) 4401-6500 Hypers (S) 2501-4400 Supers (XL) 1401-2500 Supers (L) 1101-1400 Supers (M) 801-1100 Supers (S) 401-800 Minimarkets (L) 201-400 Minimarkets (S) 1-200 Source: Nielsen

CAGR (%) 2018-2023 Europe: Store Size Groups (sqm).

8,8% 0,1% 3,4% 1,2%

7,8%

• 0,4%

0,8% 6,3%

Discounters Hypermarkets 2500+ Supermarkets 300- 2500 Small Format YTD 2017 YTD 2018

• IV. Changing consumer habits are opportunity for small stores in Poland

12

Proximity and small stores will get even more importance having access to Eurocash innovations

Source: GfK. Q:In which store do you most often perform given types of shopping missions? .

55% 58% 38% 23% 61% 44% 55% 12% Hypermarkets Supermarkets Discounters Small Stores Special Occasion Stocking Up 4% 7% 24% 51% 15% 36% 65% 73% Hypermarkets Supermarkets Discounters Small Stores Unexpected need Daily routine shopping

Big Shopping Small Shopping  Thanks to digitalization, automation and e-commerce growth SMALL STORES MAY TAKE OVER BIG SHOPPING FROM LARGE CHAINS

e- and m-commerce as standard Growing disposable income Food: eco, organic, veg, regional, exotic Growing consumption of F&V, ready meals; less bread, meat, sugar Growing share

• f pensioners

Consumer change from passive to active

Eurocash Group – executive summary

13

• NO. 1. WHOLESALE DISTRIBUTOR IN POLAND

with 27% market share & the biggest (3bn Pln) FMCG ecommerce platform DYNAMICALLY ENTERING INTO RETAIL already no. 7 with objective to become no. 3 retail chain in Poland WITH INNOVATION AND BUSINESS DEVELOPMENT PROJECTS DELIVERING RESULTS addressing digitalization, personalization & automation needs AS THE DOMINANT SMALL FORMAT & PROXIMITY STORE OPERATOR supported by globally changing trends & consumer habits

14

APPENDIX 9M 2018 Results

15

• I. Executive Summary

STRONG IMPROVEMENT IN WHOLESALE, PREPARING GROUND FOR RETAIL

01 SMALL STORES ACCELERATING

with sales dynamics at +6,3% in 9M 2018 YoY

WHOLESALE

STRONG GROWTH with EBITDA + 52m PLN (+21.6%)

RETAIL

INCREASED ASSET BASE with integration impacting profitability

02 04

PAY UP DISPOSAL AGREEMENT 5.8m PLN EBITDA (2017) at a price of 110m PLN (in. earn-outs)

03 05

FRESH ROLL-OUT AT BREAK EVEN with 452m PLN sales in 9M 2018 (+101m PLN)

• II. Food market growth

Small format stores accelerating their growth

16

Source: Nielsen, Total Poland, All Food

8,8% 0,1% 3,4% 1,2%

7,8%

• 0,4%

0,8% 6,3%

Discounters Hypermarkets 2500+ Supermarkets 300-2500 Small Format

YTD 2017 YTD 2018 9,4%

• 0,5%
• 5,2%

4,2%

2,0% 12,2%

• 0,9%

13,2%

Small Supermarkets 100-300 Convenience 40-100 Small Grocers -40 Specialized & Others

Food market growth by channels

(YTD Sep 2018, YoY)

Food market growth by small format channels

(YTD Sep 2018, YoY)

 Food sales in Total Poland increased by 5.3%, while in Small Format stores increase was of 6.3%

9,8% 4,0% 7,2% 3,3% 2,3% 3,4% 2,0% 2,5% 1,2% 1,2% 1,1% 3,0%

• 2,8%

Fats Fruits Dairy Food Meat Bread and Cereals Coffee & Tea Tobacco Fish Beverages Alcohol incl. Spirits, Wine Beer Vegetables Sugar, sweets, jams

2018 (I-VI) 2018 (I-IX)

Source: GUS

Large format categories Small format categories

• II. Inflation

Small Format stores sales growth accelerated with lower inflation than other segments

17 Food average

4,4% 3,1% 3,1% 2,7% 2,2% 3,3% 2,1%

Discounters Hypermarkets 2500+ Supermarkets 300-2500 Small Format Small Supermarkets 100-300 Convenience 40-100 Small Grocers

• 40

Source: Own estimation based on Nielsen

1.7% difference

% Food basket inflation

(YoY, YTD Sep 2018)

Food inflation by categories

Eurocash inflation much below the market average: wholesale prices in Delikatesy Centrum: -1.0%, retail prices +0.8% in 9M 2018 YoY

257 239 291

2,09% 1,90% 2,18% 9M 2016 9M 2017 9M 2018

12 252 12 599 13 377

9M 2016 9M 2017 9M 2018

+6.2%

• III. Wholesale Segment – accelerating the growth

9M 2018: +778m PLN sales and +52m PLN EBITDA increase

18

+778m +347m

+2.8%

+52m

+21.6%

• 17.8m
• 6.9%

 Strong performance in 9M 2018 with sales +6.2%, EBITDA +21.5% and EBIT +32.7% YoY.  Cost pressure covered by improved efficiency.

9M 2018 Sales of goods evolution

(PLN m)

9M 2018 EBITDA evolution

(PLN m)

12 599 13 377

338 93 283

• 16

31 49

11% 3% 7%

• 1%

10% 6% Wholesale 9M 2017 Distribution Cash&Carry Tobacco Alcohol Food Service Other Wholesale 9M 2018

• III. 9M Wholesale sales dynamics

Wholesale segment supported by increased competitiveness of small format stores

19

+778m +6.2%

3,8% 2,7% 1,5%

• 0,4%

0,3% 0,3%

• 4,6%
• 5,2%
• 3,6%
• 1,3%
• 4,0%
• 3,5%
• 2,2%
• 2,7%

0,0%

• 4,9%

0,7% 2,6% 1,3% 3,6%

Wholesale sales evolution by formats

(9M 2018 YoY)

C&C LFL  Wholesale accelerated growth from 4.6% in 2Q 2018 to 6.9% in 3Q 2018  C&C LFL in 3Q 18 at +3.8% and 2.8% in 9M 2018 - best performance in last 5 years.  ECD sales to franchisees (Lewiatan, PSD, Euro Sklep, Groszek) increased by 11.9% in 3Q and 10.3% in 9M YoY

91 106 63

5,09% 4,12% 2,07% 9M 2016 9M 2017 9M 2018

1 795 2 564 3 032

9M 2016 9M 2017 9M 2018

• III. Retail – increased asset base, ongoing integration

Integration affecting short-term retail results

20

+461m

+18.3%

+768m

+44.3%

• 43m
• 40.5%

+14m

+15.6% 3 622

pro forma

+41%

• incl. Mila

 Sales increase driven by M&A. Consolidated 2018 Mila sales 466 m PLN (345m in 3Q 2018)  Delikatesy Centrum LFL in 9M 2018 + 2.7% wholesale and +0.5% retail. 3Q 2018: -0.3% wholesale and -2.0% retail  M&A impacting EBITDA with ongoing integration incl: stores remodeling (183 DC stores), Head Office integration, pricing and assortment policy standardization. 9M 2018 Sales of goods evolution

(PLN m)

9M 2018 EBITDA evolution

(PLN m)

Retail integration to standardize supermarket chain

2020 objective: PLN 40m savings

21

 HO & OPERATIONAL INTEGRATION 2017 2018 2019 2020 2021

 Pricing & Promotions  Assortment  Marketing  Buying  BackOffice (Accounting, HR, Controling, etc.)  IT  Operations (Franchise + Own)  Logistics

20,1 18,1

Delikatesy Centrum (ex. Eko&Mila) Eurocash Retail (DC+Eko+Mila)

• Avg. annual sales per sqm (thds, 2017)

11% diff

 STORES REMODELING  EXPANSION ACCELERATION  SALES DEVELOPMENT

EKO – 183 stores (Sept),191 (Oct 2018) Mila start in 2019 7.4 bn PLN sales 1.5k stores

• 26
• 39
• 32
• 15,26%
• 9,95%
• 6,41%

9M 2016 9M 2017 9M 2018

170 395 506

9M 2016 9M 2017 9M 2018

• III. Projects – investments in the future growth

Fresh Project reached break even point in 3Q 2018

22

+111m +225m +7m

• 13m

 Fresh Project with 452m PLN sales in 9m 2018 (+101m) reached break even in 3Q 2018.

 Most relevant for Delikatesy Centrum positioning and competitiveness.

 Duży Ben & Kontigo – moved into proven franchise system.

 Duży Ben: 15 stores with 4 in franchise / agency model

9M 2018 Sales of goods evolution

(PLN m)

9M 2018 EBITDA evolution

(PLN m)

PLN m (Normalized*)

9M 2017 9M 2018 % of Sales 9M 2017 % of Sales 9M 2018 Y/Y Change

Net sales (total) 15 659 17 032 9% Gross profit 1 814 2 073 11,6% 12,2% 14% EBITDA normalized* 259 265 1,7% 1,6% 2% One-off costs* 114 3 EBITDA reported* 144,8 261,8 0,9% 1,5% 81% EBIT normalized* 126,0 115,0 0,8% 0,7%

• 9%

Profit before tax normalized* 99,9 82,0 0,6% 0,5%

• 18%

Net profit normalized* 75,1 58,7 0,5% 0,3%

• 22%

23

 Sales driven mainly by wholesale segment (+778m PLN) and consolidation of Mila (+466m PLN).  Gross Margin increase mainly by consolidation of Mila.  Normalized EBITDA increased by 6m PLN, driven by wholesale segment, and off-set by EKO & Mila integration.  Depreciation driven by retail segment.  Net Profit affected by increased effective tax rate due to changes in law.

• IV. 9M 2018 financial summary

Strong sales increase driven by wholesale segment

* 2018 results normalized by costs of Mila M&A, 2017 by add. VAT payment

24

• IV. EBITDA* performance by segments

Core business results strong improvement, off-set by 2017-18 M&A

* 2017 results normalized by costs of add. VAT

259 262

52 43 7 13

Eurocash Group 2017 Wholesale Retail Projects Other Eurocash Group 2018

9M 2018 EBITDA development by segments

(PLN m)

 Profit increase in most businesses (ECD, EC C&C, ECA, Food Service)  Wholesale sales development

• utperform total food

market  EKO & Mila impacting results  Fresh Project at break even point  Duży Ben roll-out with franchise and agency model  Provision for employees bonuses, compliance (incl. GDPR), IT, Quality Control

31 31 28 30 30 27 24 25 23 21 24 24 24 20 (21) (21) (22) (27) (23) (25) (24) (76) (75) (71) (81) (77) (76) (69)

• 100
• 80
• 60
• 40
• 20

20 40

Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3

Receivables Stock Cash conversion Liabilities

25

 Strong cash generation sustained in 9M 2018.  Consolidation of Mila changing rotation of each WC component but with no impact on total Net WC rotation.

PLN m

3Q 2017 3Q 2018 9M 2017 9M 2018 Net operating cash flow

112 115 284 301

Net profit (loss) before tax

49 37 (14) 79

Depreciation

43 54 133 150

Change in working capital

33 21 174 83

Other

(13) 4 (9) (11)

Net investment cash flow

(81) (37) (285) (415)

Net financial cash flow

(79) (74) (81) 64

Total cash flow

(48) (0) (82) (54)

*12M – ostatnie 12 miesięcy

• IV. Cash Flow

LTM Operating CF at 138% EBITDA

Cash conversion cycle

(after IFRS 15) Mila effect

431 441 419 361 363 360 363 584 486 464 370 468 685 608 1,36 1,10 1,11 1,02 1,29 1,90 1,67

1Q'17 2Q 3Q 4Q 1Q'18 2Q 3Q LTM EBITDA (PLN m) NET DEBT (PLN m) NET DEBT / EBITDA

26

*NET DEBT - the sum of long and short term loans, borrowings and financial liabilities less cash and cash equivalents

**Adjusted for one-off item – 114 m PLN potential VAT liability payment done in Aug 2017

0,71x 0,93x

335

• excl. M&A

258

• excl. M&A

 Net Debt decrease by 77m PLN 3Q 2018

• IV. Net debt vs. LTM EBITDA**

Healthy and declining leverage thanks to strong cash generation

Net Debt* vs. 12M EBITDA in 3Q 2018

27

2015 2016 2017 Sales Revenues

(before IFRS15)

220 329 440 EBITDA 0,8 4,1 5,8 EBITDA % 0,3% 1,2% 1,3% EBIT

• 2,1

0,3 0,7 EBIT %

• 1,0%

0,1% 0,2%

• IV. PayUp disposal to Polskie ePłatności

Finalization upon receiving consent from antimonopoly office Long-term cooperation agreement Eurocash Group will focus on its core business Maximum price:

PLN 110 m

(depends on earn-outs)

Estimated maximum net profit

PLN 102 m

Faktoria Win

Eurocash Group business portfolio

Cash from mature wholesale is invested in retail growth and innovation

28

29

231 266 490 402 412 476 440 361

216 266 670 542 246 978 324 589

93% 100% 137% 135% 60% 206% 74% 163%

0% 50% 100% 150% 200% 250% 200 400 600 800 1 000 1 200 2010 2011 2012 2013 2014 2015 2016 2017 EBITDA Operating cash flow OCF/EBITDA

* 2017 adjusted by one-off items, VAT issue

• 12,4
• 5,8
• 11,1
• 17,2
• 13,2
• 19,4 -17,6
• 22,0
• 25,0
• 20,0
• 15,0
• 10,0
• 5,0

0,0 2010 2011 2012 2013 2014 2015 2016 2017

• 19
• 43
• 53
• 60
• 50
• 40
• 30
• 20
• 10

2015 2016 2017 3,0% 2,7% 3,0% 2,4% 2,4% 2,3% 2,1% 1,6% 0,8% 0,9%

• 0,2%

2,0% 3,7% 4,5% 4,4% 3,9% 2,6% 4,3% 3,7% 0,9% 0,0%

• 0,9%
• 0,6%

2,0%

• 2,0%
• 1,0%

0,0% 1,0% 2,0% 3,0% 4,0% 5,0%

• 2,0%
• 1,0%

0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 2010 2011 2012 2013 2014 2015 2016 2017 Eurocash EBITDA margin % Gross Salary CPI (Inflation)

Operational Cash Flow* vs. EBITDA* Cash Conversion (in days) Eurocash EBITDA margin %

• vs. gross salary and inflation in PL

New Projects EBIT (PLN m)

Ability to generate cash necessary to invest into future growth

Eurocash:

New initiatives impact short term profitability but are investment into future competitiveness of our clients Clear potential to increase profits

 We kept investing despite unfavorable macro trends and growing costs of innovative projects

Eurocash generates cash to keep investing for future competitiveness

Cash generative business model funds M&A and innovation for long-term even in recent tough business context

After many years of growth we are now able to focus on profitability

30

Improvement

• f Wholesale

EBITDA

Head Office cost optimization

~60m PLN

EC C&C restructuring

~10m PLN

Logistics: ECD Merger with ECA then ECS impulse

~40m PLN

(2019-2020)

Retail Head Office cost optimization

up to ~40m PLN

(2020)

WHOLESALE RETAIL

150 M PLN by 2020 - identified potential for cost reduction

9M 2018 EBITDA* evolution (PLN m)

257 239 291

2,09% 1,90% 2,18% 9M 2016 9M 2017 9M 2018

+52m

+21.6%

• 17.8m
• 6.9%

Disclaimer

31

This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capital expenditure, cash flows, costs, savings, debt, demand, depreciation, disposals, dividends, earnings, efficiency, gearing, growth, improvements, investments, margins, performance, prices, production, productivity, profits, reserves, returns, sales, share buy backs, special and exceptional items, strategy, synergies, tax rates, trends, value, volumes, and the effects of Eurocash S.A. merger and acquisition activities. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to developments in government regulations, foreign exchange rates, oil and gas prices, political stability, economic growth and the completion of ongoing transactions. Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, you are cautioned not to place undue reliance on any of the forward looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which speak only as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable securities laws. Statements and data contained in this presentation and the associated slides and discussions, which relate to the performance of Eurocash S.A. in this and future years, represent plans, targets or projections.

For more information please contact:

Cezary Giza

Investor Relations Director cezary.giza@eurocash.pl mobile: +48 693 930 415