Slide 1: Preliminary 4Q20 Results and Information for EGM
PRELIMINARY 4Q20 RESULTS AND INFORMATION FOR EGM JANUARY 7, 2021
Slide 2: Disclaimer
DISCLAIMER This presentation (the "Presentation") was prepared by VRG S.A. (the achieved by the Company may differ materially from the results presented "Company") with a due care. Still, it may contain certain inconsistencies or in this document. Many of those factors are beyond the awareness and o
Slide 3: 2020 Executive Summary
01 2020 EXECUTIVE SUMMARY
Slide 4: Key Event of 2020: COVID-19
KEY EVENT OF 2020: COVID-19 IMPACT OF PANDEMIC ON VRG GROUP Gradual Shopping Increasingly impact of Negotiations Gradual All of Poland Closing of Rebuilding Start malls closed Stabilising faster growth coronavirus, with shopping rebuilding in the red shopping of demand of another down, only actions
Slide 5: Group Strengthened After COVID-19
GROUP STRENGTHENED AFTER COVID-19 Dynamic on-line growth Logistics optimisation COVID-19 accelerated in 2020 changes in the Group, contributing E-stores improvements to its greater stability in the long term. Changes in assortment, more casual Restructuring of traditional network 5 | Preliminary 4Q2
Slide 6: Stabilisation of Management Board
STABILISATION OF MANAGEMENT BOARD MANAGEMENT BOARD OF VRG S.A. Andrzej Jaworski Radosław Jakociuk President of the Executive Vice-President Management Board of the Management Board Michał Zimnicki Acting in the Executive Vice-President Erwin Bakalarz interest of all Management Board of the Managemen
Slide 7: Preliminary Sales Results
02 PRELIMINARY SALES RESULTS
Slide 8: December: The Best Month of the Fourth Quarter
DECEMBER: THE BEST MONTH OF THE FOURTH QUARTER OCTOBER NOVEMBER DECEMBER Rebuilding of demand Worsening sentiment; Closing of shopping before Christmas; APPAREL risk of another malls between post-Christmas sell-offs SEGMENT lock-down November 7 and 27 only on-line revenues: -42.3% YoY revenues: -57.
Slide 9: Rebuilding of Demand in December
REBUILDING OF DEMAND IN DECEMBER Group revenues PLN 130.7m DECEMBER 2020 -17.1% YoY Key trends - faster rebuilding of demand before Christmas in the jewellery segment than in the apparel segment, Apparel segment revenues (retail) - in the apparel segment, favorable dynamics PLN 57.0m in casual colle
Slide 10: Growth On-line, Falls Off-line
GROWTH ON-LINE, FALLS OFF-LINE 1 E-stores Maintaining double-digit on-line growth in 4Q20. 169% 2 Stores 102% 82% 59% Sales in traditional stores affected 34% 44% by lock-down in November and 21% 13% 20% 17% 14% December. -32% Floorspace at the end of 2020 at -8% 0% 1% 10% -5% 53.0 ths m2, down 2.4%
Slide 11: Base Case Scenario Fulfilled
BASE CASE SCENARIO FULLFILLED Shopping malls closed Shopping malls Shopping between 14 March and Recovery from revenue fall closed between malls closed May 4. November 7 and 27 from 28.XII 10% 9% 0% 1% -8% -5% -17% -31% -35% -42% -52% -65% Previous assumptions -80% -50% -30% -20% -10% -10% -10% -70%
Slide 12: Preliminary 4Q20 Results
VISTULA BYTOM WOL(ZANKA DENICLER = WKRUK PRELIMINARY 4Q20 RESULTS
Slide 13: High Gross Profit Margin
HIGH GROSS PROFIT MARGIN OBRAINING A FAVOURABLE GROSS PROFIT MARGIN DESPITE PANDEMIC. OCTOBER 2020 NOVEMBER 2020 DECEMBER 2020 55.2% 49.3% 52.8% + 1.1 PP - 3.3 PP - 1.3 PP 13 | Preliminary 4Q20 numbers
Slide 14: Preliminary Revenue and Margin Numbers for 4Q20
PRELIMINARY REVENUE AND MARGIN NUMBERS FOR 4Q20 PLN m 4Q19 4Q20 YoY High double-digit YoY declines in the Group's preliminary revenues in 4Q20 despite high dynamics in Revenues 332.5 231.6 -30.3% e-commerce due to significant impact of renewed restrictions in shopping centers. - apparel segment 198.
Slide 15: Preliminary Revenue and Margin Numbers for 2020
PRELIMINARY REVENUE AND MARGIN NUMBERS FOR 2020 PLN m 2019 2020 YoY Double-digit declines in the Group's preliminary Revenues 1,068.3 853.4 -20.1% revenues due to the strong impact of COVID-19 in March-April and October-November 2020. - apparel segment 657.1 480.2 -26.9% (retail) - jewellery segment
Slide 16: 2020 Targets and Achievements
2020 TARGETS REVENUES ACHIEVEMENTS Loss of up to 25% of revenues in base case scenario c. -20% Share of internet growing from 14% to some 30% in revenues c. 25% 3% floorspace reduction c. -2% EBITDA LIQUIDITY Maintaining liquidity. EBITDA under IAS17 above zero. Lower YoY debt at the end of 2020 (IA
Slide 17: General Shareholder Meeting
04 GENERAL SHAREHOLDER MEETING
Slide 18: New EGM Date: March 1, 2021
NEW EGM DATE: MARCH 1, 2021 POINTS ON THE AGENDA: AT 12.00 an overview of current financial situation MONDAY of the Capital Group in connection with CRACOW, CONFERENCE COVID-19 MARCH 1, 2021 HALL AT CRACOVIA STADIUM discussion of matters related to exercising by change of date due to sanitary VRG ov
Slide 19: Structure of Capital Group
STRUCTURE OF CAPITAL GROUP VRG COMPANIES INCLUDED IN THE CONSOLIDATED STATEMENTS FOR 2020 JEWELLERY SEGMENT APPAREL SEGMENT OTHER ACTIVITY VRG S.A. parent company Vistula, Wólczanka, Bytom brands W.KRUK S.A. DCG S.A. WSM sp. z o.o., VG Property sp. z o.o. (100% share) (100% share) (100% share in bot
Slide 20: Boards Within the Capital Group
BOARDS WITHIN THE CAPITAL GROUP VRG S.A. W.KRUK S.A. DCG S.A. Management Board of VRG S.A. Management Board of W.KRUK S.A. Management Board of DCG S.A. Andrzej Jaworski, President of the Management Board Łukasz Bernacki, President of the Management Board Iwona Kossmann, President of the Management B
Slide 21: Corporate Governance Mechanisms in the Group (1)
CORPORATE GOVERNANCE MECHANISMS IN THE GROUP (1) EFFECTIVE CORPORATE GOVERNANCE IN THE GROUP 1. Members of the Management Board and Supervisory Board of VRG S.A. exercise ongoing oversight over subsidiaries in all areas of their activity. 2. Selected representatives of the Management Board and Super
Slide 22: Corporate Governance Mechanisms in the Group (2)
CORPORATE GOVERNANCE MECHANISMS IN THE GROUP (2) Selected competences of Supervisory Board of W.KRUK S.A. 1. appointing and dismissing members of the Management Board, guarantee, accession to debt or other similar agreement or operations, unilateral legal action regarding the Company's liability for
Slide 23: Corporate Governance Mechanisms in the Group (3)
CORPORATE GOVERNANCE MECHANISMS IN THE GROUP (3) Selected competences of Supervisory Board of DCG S.A. 1. assessment of annual financial statements, both in terms of Management Board member, transactions concluded in the ordinary course of the Company's compliance with the books and documents, and t
Slide 24: Internal Regulations of VRG Group
INTERNAL REGULATIONS OF VRG GROUP THE HIGHEST STANDARDS OF CONDUCTING BUSINESS Code of Ethics in VRG S.A. Capital Group Procedure for Transactions with Related Parties Performed by Entities from VRG S.A. Capital Group Anticorruption Policy in VRG S.A. Capital Group Remuneration Policy for Members of
Slide 25: Conflict of Interest Policies (1)
CONFLICT OF INTEREST POLICIES (1) WE FOLLOW THE BEST PRACTICES OF LISTED COMPANIES 2016 AND THE CCC VRG S.A. Capital Group complies with the Best Practices of WSE Listed Companies 2016 (DPSN2016) - in Chapter V these refer to conflicts of interest and transactions with related parties. We underline,
Slide 26: Conflict of Interest Policies (2)
CONFLICT OF INTEREST POLICIES (2) Regulations of the Supervisory Board of VRG S.A. contain the following elements: A member of the Supervisory Board should be guided in his/her actions by the interests of the Company and the independence of opinions and judgments, in particular: a) not accept unjust
Slide 27: Related Party Transactions
RELATED PARTY TRANSACTIONS Transactions with related parties take place on an Transactions with related entities as at June 30, 2020 arm's length basis. Their scale is not significant for the Capital Group. Data for 1H20 Sale of products, Purchase of products, goods, Amounts due from Amounts owed to
Slide 28: Positive Audit Results
Do poprawek POSITIVE AUDIT RESULTS graficznych; prośba o brażaowo/beżowe kolory Management Board of VRG S.A. prepared a list, explanation and summary of business trips and representation funds of management and supervisory boards of companies from the VRG S.A. Capital Group for the years 2017-2020.
Slide 29: Plans for 2021
Prośba o zmianę zdjecia 05 PLANS FOR 2021
Slide 30: Customer in the Centre of Attention
CUSTOMER IN THE CENTRE OF ATTENTION Development of the jewellery offer Verification of watches New products – more casual in every portfolio apparel brand New customer groups – stronger presence of women collections in Vistula brand 30 | Preliminary 4Q20 numbers
Slide 31: 2021 – Towards Omnichannel
2021 – TOWARDS OMNICHANNEL OMNICHANNEL Standardized contact with customers Consistent marketing and promotions TRADITIONAL INTERNET STORES STORES Using traditional stores to support on-line = Stable floorspace + Further development of functionality and logistics = Personal pickup in stores for Top l
Slide 32: Opportunities and Risks for 2021
OPPORTUNITIES AND RISKIS FOR 2021 OPPORTUNITIES new collections with broadened casual offer, development of jewellery offer strong on-line growth further working capital improvements RISKS another wave of COVID-19 and stronger sanitary restrictions reduction in consumer demand currency volatility 32
Slide 33: Q&A
06 Q&A
Slide 34: Thank You
Zdjecia do wymiany THANK YOU VRG S.A. Pilotów 10 St. 31-462 Cracow