Slide 1: Annual Results Presentation 2024
Annual Results Presentation 2024 25 March 2025
Slide 2: Today’s presenters
Today’s presenters Tomasz Blicharski Marta Wrochna- Tomasz Suchański Group Chief Strategy Łastowska Group CEO & Development Group CFO Officer 2
Slide 3: Strategic Highlights
Strategic Highlights 3
Slide 4: Key events in 2024
Key events in 2024 Retailer Opening of the The highest Our debut DCO EBITDA of the Year first Froo store platinum on the break-even Award, in Romanian award in the Warsaw achieved 6th time market EcoVadis Stock in a row Sustainability Exchange Rating, for the 3rd time Q1 Q2 Q3 Q4 The acquisition of
Slide 5: FY 2024 financial performance: continued growth on the back of strong trading
FY 2024 financial performance: continued growth on the back of strong trading, in line with our expectations and the guidance FY 24 Sales to End Customers FY 24 Adjusted EBITDA FY 24 Adjusted Net Profit PLN 27.3bn PLN 3.5bn PLN 714m +20% YoY +24% YoY +66% YoY FY 24 Like for Like Store network1 as of
Slide 6: Ultimate Tech-Powered Convenience ecosystem touching consumers’ every waking hour
Ultimate Tech-Powered Convenience ecosystem touching consumers’ every waking hour Physical Channels Digital Channels DCO DCO DCO 90% Brand Awareness 1 4.1m Average Daily Transactions 2 11,069 Store Network 11.7m User Base 3 10.0m Active Shoppers 4 32% Shoppers growth 5 Leading consumer app, a digita
Slide 7: On track to deliver long-term strategy of doubling Sales to End Customers 2023–2028
We remain on track to deliver on our long-term strategy of doubling Sales to End Customers between 2023 – 2028 Strategic aspirations Strategy execution in line with the IPO guidance Execution IPO guidance 1,000+ p.a.1 new Mid-to-high single ~5x increase in store openings digit annualized LfL Sales t
Slide 8: Strong strategy execution in FY amid macro-driven consumer tailwinds
Strong strategy execution in FY 24 amid macro-driven consumer tailwinds Market tailwinds LfL Grow FY 24 +1,166 gross openings th IPO guidance of c. 1,100 store openings ini in 2024 delivered tia Consumer environment tiv remains supportive n k expansio es FY 24 LfL +8.3% Slightly above the midpoi
Slide 9: Market environment
Market environment 9
Slide 10: Perceived financial situation of Polish households has steadily improved
The perceived financial situation of Polish households has steadily improved, driven by substantial real wage growth Financial situation of Polish consumers Gross wage Nominal gross wages have been ahead of growth Inflation inflation in LTM, resulting in a significant real wage growth over the perio
Slide 11: Żabka has been increasing market share and outperforming in price and volume
Żabka has been increasing market share and outperforming in price and volume terms Consistent price and volume outperformance has led… …to continuously increasing market share Polish physical grocery total growth (incl. space) by channel1, 2024 Rolling LTM Market share evolution of Żabka2, Dec20 – D
Slide 12: Strategy execution
Strategy execution 12
Slide 13: On track to deliver long-term strategy of doubling Sales to End Customers 2023–2028
We remain on track to deliver on our long-term strategy of doubling Sales to End Customers between 2023 – 2028 Strategic aspirations Strategy execution in line with the IPO guidance Execution IPO guidance 1,000+ p.a.1 new Mid-to-high single ~5x increase in store openings digit annualized LfL Sales t
Slide 14: Ample white space potential underpins further store roll-out expansion plans in Poland
Ample white space potential underpins further store roll-out LfL Growth ini tia n tiv rk expansio es Ne two expansion plans in Poland es gin n hE New Growt Our store format works in all types … with the quality of our expansion being … indicating whitespace of ~19.5k stores in of catchments… safegu
Slide 15: Żabka stores exhibit sustained positive sales growth over time
LfL Growth ini Żabka stores exhibit sustained positive sales growth over time tia n tiv rk expansio es two Ne es gin n hE New Growt There is a strong emphasis on quality of new store openings… … reflected in an attractive payback profile Average Sales per store vintage per sqm, in constant prices (G
Slide 16: Replicating successful format evolution in Romania
By building on our successful format evolution in Poland, LfL Growth ini tia n tiv rk expansio es Ne two we aim to replicate similar success in Romania es gin n hE New Growt In 2024, we have extended our physical footprint into Romania, the 2nd … as there is a very strong investment conviction large
Slide 17: 2024 LfL growth driven by strategic initiatives
2024 LfL growth was driven by number of strategic LfL Growth ini tia n tiv rk expansio es Ne two initiatives and remained in line with IPO guidance es gin n hE New Growt Expanded range of Continued innovation Traffic and basket New upgraded Żabka Cafe 2.0 & Street Food everyday services of products
Slide 18: On track for 5x DCO sales growth by 2028 with positive EBITDA
In 2024, we remained on track to deliver our goal of 5x DCO LfL Growth ini tia n tiv rk expansio es Ne two sales growth by 2028, while achieving positive EBITDA es gin n hE New Growt In 2024 we succeeded in selling 7.4m diets, equivalent to approximately 35m meals delivered, representing an YoY incr
Slide 19: ESG as our business strategy enabler
LfL Growth ini ESG as our business strategy enabler tia n tiv rk expansio es two Ne es gin n hE New Growt ESG agenda integrated throughout Franchisees ESG as 1 out of 4 the organization Customers, Clients l i vi n g f o r e ve r yo n e, e Cashiers 1/4 integrated business b l e ve strategy enablers a
Slide 20: Financials
Financials 20
Slide 21: Key financial highlights: 2024 growth targets achieved
Key financial highlights: 2024 growth targets achieved; IPO guidance delivered FY 24 Trading FY 24 EBITDA FY 24 Net profit & EPS PLN 27.3bn StEC PLN 3.5bn / 12.8% margin PLN 714m / 2.6% margin Sales to End Customers at PLN 27.3bn with Adjusted EBITDA at PLN 3,505m with 40 bps YoY Our adjusted net pr
Slide 22: Strong top-line and margin progression in 2024
Strong top-line and margin progression in 2024 Key financial metrics Robust Sales to End Customers growth FY 24 FY 23 Δ YoY Selected KPIs • Healthy mix of organic growth (fueled by i.e. better customer Number of Stores (EoP) 1 11,069 10,014 1,055 sentiment, unique and differentiated product offering
Slide 23: Healthy balance of New Store Openings and LfL
Healthy balance of New Store Openings and LfL Sales to End Customers1 (PLNm) 27,277 639 1,798 2,065 22,775 186 1,916 2,143 18,530 FY 22 New Stores LFL New Growth FY 23 New Stores LFL New Growth FY 24 Engines Engines2 New stores and LfL contributed 46% and 40% of total growth, respectively Source: Co
Slide 24: Sales to End Customers grew consistently across 2024
Sales to End Customers grew consistently across the entire 2024 with strong performance in Q2/Q3; LfL trends in line with easing CPI Sales to End Customers1 (PLNm) % of Full year 21% 26% 27% 25% 27,277 7,126 7,499 6,885 5,767 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 LfL (%) 11.5% 9.3% 8.3% 7.1% 6.0% Q1 24 Q2 2
Slide 25: Attractive franchisee compensation ensures stable NPS and control over churn
Attractive franchisee compensation ensures stable and positive NPS and control over churn levels Franchisee Margin2 FY FR margin remains under control PLNm 23A 24A • Franchisee margin grew from 16.5% in 2023 to Sales to End Customers1 22,305 26,167 16.7% in 2024 mainly due to increase in minimum wag
Slide 26: Robust growth in Adj. EBITDA driven by Sales growth and Margin expansion
Robust growth in Adj. EBITDA driven by Sales growth and Margin expansion Adjusted EBITDA (PLNm) Strong +24% YoY Adj. EBITDA growth x % of Sales to End Customers • Sales growth driven by the expansion of the store network and a strong LfL increase of 12.4% +0.4pp 12.8% 8.3%, supported by positive eff
Slide 27: Structural improvements on our bottom line
In FY 24 we have achieved structural improvements on our bottom line, which are expected to continue progressing in the near/mid term 1 100 bps margin improvement and amendments to main Repricing of financial debt facility agreement give us more flexibility in terms of financing structure, collatera
Slide 28: Largely discretionary Capex targeted to funding growth
Largely discretionary Capex targeted to funding growth Capex split by segments (PLNm) Ultimate Convenience1 New Growth Engines Corporate & Strategic Leadership +286 (+23%) Capex grew by 23% YoY 1,518 • Ultimate Convenience Capex is largely 155 discretionary and targeted at fueling business growth, w
Slide 29: Strong cash generation
Strong cash generation… FY 23 (PLNm) FY 24 (PLNm) Adj EBITDA Adj EBITDA 2,834 3,505 ▪Robust cash flow conversion, Rent (825) Rent (975) driven by: • significant Adj. EBITDA and post- Adj EBITDA Adj EBITDA rent EBITDA growth 2,009 2,529 post-rent post-rent • controlled discretionary Capex Capex excl.
Slide 30: Supporting continued deleveraging
… supporting continued deleveraging Net leverage: Net debt excl. leases1 / adjusted EBITDA post-rent (0.8x) YoY 2.3x 2.1x 1.7x 1.5x 1.4x Net debt excl. leases / adjusted EBITDA (post-rent)2 • Reduction in leverage profile from robust cash generation and Adj. EBITDA FY 23 Q1 24 Q2 24 Q3 24 FY 24 grow
Slide 31: Key non-financial highlights: delivered on ESG expectations
Key non-financial highlights: in 2024 we have delivered on ESG expectations Sustainable lifestyle Mindful business impact Employees engagement 2026 commitment 2024 results 2026 commitment 2024 results 2026 commitment 2024 results Multiply the sales value 100% of business partners Get to top 25% of t
Slide 32: Confident in the medium-term outlook shared in IPO guidance
We remain confident in the medium-term outlook shared in our IPO guidance, on the back of strong 2024 performance New stores 2025 We aim to open over 1,100 new stores in 2025. We continue targeting opening 1,000+ c. 1,100 stores p.a. in the medium-term in Poland and Romania Like-for-Like 2025 We ant
Slide 33: Concluding remarks
Concluding remarks Consistently In line with our expectations, in FY 24 Żabka continued strong financial and operating performance Strong Results delivering robust LfL growth of 8.3%, slightly above the midpoint of target range of 7.5-9.0%, communicated during IPO We improved profitability measures
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Slide 35: Thank you
Thank you
Slide 36: Appendix
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Slide 37: Key financial highlights: results in line with our expectations
Key financial highlights: results in line with our expectations Q4 24 Trading Q4 24 EBITDA and Net Profit Q4 24 FCF & Leverage Sales to End Customers at PLN 6.9bn (+18% YoY) Adjusted EBITDA increased to PLN 987m In Q4 24 Free cash flow (FCF) amounted to supported by strong marketing plan and higher
Slide 38: Strong Q4 2024 performance across all key metrics
Strong Q4 2024 performance across all key metrics Sales to End Customers1 Like for Like2 Net store openings Capex (PLNm) (%) (# of stores) (PLNm) +18% +35% +56 -3.5pp 623 6,885 163 5,833 10.6% 463 7.1% 107 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Q4 23 Q4 24 Adjusted EBITDA & margin3 Adjusted Net profit
Slide 39: Strong Q4 2024 performance: key financial metrics
Strong Q4 2024 performance across all key metrics Key financial metrics Selected KPIs Q4 24 Q4 23 Δ YoY Number of Stores (EoP)1 11,069 10,014 1,055 2 LfL 7.1% 10.6% - 3 Sales to End Customers 6,885 5,833 18.0% P&L (PLNm) Revenue 6,072 5,034 20.6% Cost of Sales (4,859) (3,997) 21.6% Gross Profit 1,21
Slide 40: Adjustments in FY 24 related mainly to IPO process, LTIP costs and DRIM acquisition
Adjustments in FY 24 related mainly to IPO process, LTIP costs and DRIM acquisition EBITDA Adjustments (PLNm) Adjustments FY 24 FY 23 Costs related to changes in the ownership structure 81 16 and obtaining financing Incentive schemes and additional compensation in connection with the termination of
Slide 41: Balance Sheet Dec 2024 vs. Dec 2023
Balance Sheet Dec 2024 vs. Dec 2023 Balance sheet (PLNm) ▪Assets: Dec 24 Dec 23 Δ YoY • The increase of PLN 1,376m (+11.6% YoY) in non-current assets was Goodwill 3,439 3,387 1.5% Property, plant and equipment 3,940 3,392 16.2% driven mainly by investments into new logistic center, remodelings, Righ
Slide 42: Żabka Group disclaimer
Żabka Group disclaimer This presentation (“Presentation”) has been prepared by Zabka Group, a public limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 2, rue Jean Monnet L-2180 Luxembourg, Grand Duch