Slide 1: 2Q25 results presentation
2Q25 results presentation GDAŃSK, 25 SEPTEMBER 2025 2Q25 PRESENTATION 1
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) was prepared by LPP SA (the “Company”) with due care. Still, it may contain certain inconsistencies or omissions. The Presentation does not contain a complete or thorough financial analysis of the Company and does not present its standing or prospect
Slide 3: Summary 2Q25
Summary 2Q25 2Q25 PRESENTATION 3
Slide 4: Consistent business growth
Consistent business growth +1.6% PLN 1.4 bn 296 Uzbekistan debut of Sinsay LFLs in stores e-com sales open stores stores positive +16% YoY in CC including 253 in First store opened in Reserved brand Sinsay brand in early August +20 stores in 2025 2Q25 PRESENTATION 4
Slide 5: Continued quarterly profit growth
Continued quarterly profit growth PLN 5.6 bn PLN 1.2 bn PLN 689 m PLN 467 m revenue EBITDA operating profit net profit +17% YoY1 +17% YoY +13% YoY +5% YoY 1Growth reported on core business in constant currency: +19%. Growth reported including sales to trade agents in 2Q24: +11%. 2Q25 PRESENTATION 5
Slide 6: Steady development of the Sinsay chain
Steady development of the Sinsay chain NO. OF NEW STORES NO. OF STORES BY BRANDS # (gross) # (net, as at 31.07.2025) +174 399 239 294 296 (+18) (+6) 395 (+13) 3,195 253 (+703) 135 279 136 122 350 (-14) 105 1,812 112 109 (+680) 30 24 43 13 15 2Q24 3Q24 4Q24 1Q25 2Q25 FLOORSPACE Sinsay Reserved, Cropp
Slide 7: Dynamic growth in key regions
Dynamic growth in key regions POLAND CEE SEE No. of Floorspace No. of Floorspace No. of Floorspace stores (ths. m2) stores (ths. m2) stores (ths. m2) 1,263 977 463 394 769 691 +100 +10% +115 +27% +206 +28% BALTICS WE EE & ME No. of Floorspace No. of Floorspace No. of Floorspace stores (ths. m2) stor
Slide 8: 2Q25 Financial results
2Q25 Financial results 2Q25 PRESENTATION 8
Slide 9: Positive sales dynamics in LFL stores
Positive sales dynamics in LFL stores COMPARABLE SALES (LFL) 7.5% 7.5% 5.7% 4.3% 3.2% 1.4% 1.6% -2.2% -3.3% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q25 PRESENTATION 9
Slide 10: Double-digit sales growth in both channels
Double-digit sales growth in both channels GROUP REVENUES1 PLN m +19% Impact of currency exchange rates 10,508 in 2Q25: -2.0pp. 8,806 Double-digit sales growth in 2Q25 both in Poland (+10.6% YoY) and abroad +17% +19.1% 7,619 (+23.3% YoY). 5,554 6,395 4,731 Online sales in 2Q25 accounted +18.5%
Slide 11: Robust gross margin in the challenging environment
Robust gross margin in the challenging environment QUARTERLY GROUP GROSS PROFIT MARGIN 57.5% -1.6 pp. Higher share of Sinsay brand in revenues. 56.6% 55.6% 54.4% 55.1% Active gross margin management 53.9% 54.0% 54.0% in Sinsay brand (higher YoY promotions) in order to accelerate the turnover 50.
Slide 12: Efficient management of SG&A costs
Efficient management of SG&A costs SG&A COSTS/ M2 500 -2.3 pp. 46 44% Growth in SG&A costs slower than sales 450 42% 44 42% 42% growth. 400 42 40% 350 40 Decline in SG&A costs per m2 by 9.4% 300 38 YoY → implemented automation in 250 36 logistics, lower YoY expenditure on store 200 34 marketing
Slide 13: Events affecting 2Q results
Events affecting 2Q results UPDATE OF THE BALANCE RECEIVABLES WAREHOUSE FIRE IN ROMANIA AFTER DISPOSAL OF RUSSIAN BUSINESS Neutral impact of the event on 2Q results. Extension of the time limit for repayment Other operating activities recognise: of receivables for goods recognised under other
Slide 14: Profit growth in the second quarter
Profit growth in the second quarter EBITDA EBIT NET PROFIT PLN m PLN m PLN m +17% +13% +5% 1,194 1,018 689 611 467 443 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 21.5% 21.5% 12.9% 12.4% 9.4% 8.4% EBITDA margin1 EBIT margin1 Net margin1 1 For comparability, 2Q24 figures have been cleared for the impact of transac
Slide 15: Improved YoY results in the Spring/Summer season
Improved YoY results in the Spring/Summer season EBITDA EBIT NET PROFIT PLN m PLN m PLN m +18% +13% +11% 2,132 1,813 1 153 1 022 799 720 1H24 1H25 1H24 1H25 1H24 1H25 20.6% 20.3% 11.6% 11.0% 8.2% 7.6% EBITDA margin1 EBIT margin1 Net margin1 1 For comparability, 2Q24 figures have been cleared for the
Slide 16: Secured inventory for Autumn/Winter 2025
Secured inventory for Autumn/Winter 2025 INVENTORY AND INVENTORY/M2 7,000 2,500 In 2Q25, the increase in the level of inventory mainly due to ordered goods 6,000 1,918 1,903 1,964 for dynamic openings of new Sinsay 1,816 1,827 2,000 5,000 1,722 1,666 traditional stores and a broader brand 1,534 1,
Slide 17: Favourable working capital
Favourable working capital WORKING CAPITAL PLN m -152 -658 Cash cycle at a favourable negative level of -20 days: 5,217 3,905 slower inventory turnover (increase from 134 to 176 days), 765 770 reduction of payment term for -5,328 receivables (from 15 to 13 days), -6,139 extension of payment
Slide 18: Implementation of investment projects in line with the plan
Implementation of investment projects in line with the plan CAPEX PLN m +58% Expenditure on stores amounted to 700 635 PLN 379m (+50% YoY) due to dynamic 650 612 613 600 44 63 openings of new traditional stores, mainly 67 550 519 of Sinsay brand. 500 69 136 192 450 401 400 41 293 Logistics expen
Slide 19: Safe debt level
Safe debt level NET DEBT (PLN m, IFRS16) 1.3 1.3 At the end of 2Q25, net debt according 6,500 1.3 6,000 1.2 to IFRS16 amounted to PLN 5.7bn, 5,500 1.0 1.0 1.1 including PLN 5.0bn due to leases. 5,000 1.0 4,500 0.8 0.9 Net debt includes PLN 0.9bn in money 4,000 0.8 3,500 0.7 market funds at the e
Slide 20: Plan for 2025
Plan for 2025 2Q25 PRESENTATION 20
Slide 21: Strong "Back to School" period
Strong “Back to School” period • Earlier interest in school products than in the previous year. • Classic models, multipacks and licensed products were popular. • Very good sales of autumn clothes (tracksuits, sweatshirts, jeans, fleece jackets). • In Sinsay brand, a growing share of sales of school
Slide 22: Outlook for 3Q
Outlook for 3Q 22% YoY increase in Group sales in constant currency in the period 1 August - 21 September (exchange rate impact of ca -1.5pp.). Positive dynamics in LFL stores, 24% YoY growth in online sales. Positive response to the Autumn/Winter 2025 collection Planned opening of 200-250
Slide 23: 2025 targets
2025 targets 2024 1H25 2025 actuals actuals Sales from core business1, PLN bn 19.4 10.5 ca 23 – 24 including: Offline 13.9 +19% YoY ca +20 - 25% YoY Online 5.4 +20% YoY ca +20 - 25% YoY Gross profit margin1 55.2% 54% 53% - 54% SG&A % sales1 42.6% 42% 41% - 42% EBITDA margin 21.1% 20% 19% - 20% Net m
Slide 24: Key takeaways
Key takeaways Continued profit growth 01 Another quarter with profit growth at every level: EBITDA, EBIT, net profit. Strong sales in a challenging environment 02 Growth in total YoY sales by +19% in CC, including growth in e-commerce +16% in CC. Cost efficiency 03 Improved SG&A/sales ratio by over
Slide 25: Q&A
Q&A 2Q25 PRESENTATION 25
Slide 26: Back-up
Back-up 2Q25 PRESENTATION 26
Slide 27: Lower costs of own stores
Lower costs of own stores COST OF OWN STORES/ M2 240 220 200 -3.5% Lower YoY rental costs/m2 → higher 180 174 177 175 165 168 number of opened Sinsay brand stores at 160 a lower rent. 52 56 55 50 140 52 120 YoY growth in personnel costs/ m2 → 100 60 59 61 61 growth of minimum wage, remuneration
Slide 28: Financial results
Financial results PLN m, IFRS16 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 YoY Revenues 4,306 5,005 5,212 5,671 4,954 5,554 11.0% Revenues1 4,074 4,731 5,050 5,551 4,954 5,554 17.4% Gross profit margin 52.1% 52.5% 54.8% 52.7% 54.0% 54.0% 1.5pp. 1 Gross profit margin 55.1% 55.6% 56.6% 53.9% 54.0% 54.0% -1.6pp. SG
Slide 29: Events affecting 2Q results
Events affecting 2Q results PLN m 2Q25 WAREHOUSE FIRE IN ROMANIA The impact resulting from the fire of the logistics warehouses leased by LPP Logistics Other operating activity -81 in Romania was recognised in other operating activity. Other operating income The amount of PLN 351m was reported in
Slide 30: Receivables for sale of the Russian company in the balance sheet
Receivables for sale of the Russian company in the balance sheet as at 31.07.2025 PLN 568 m receivables for the goods sold Statement of financial position (discounted amount). 31.07.2025 PLN m The total amount recognised under long-term receivables. Non-current assets 11,601 Extension of the repayme
Slide 31: Glossary
Glossary Poland Retail sales in Poland and other sales of LPP SA. Region including: CEE (Czech Republic, Slovakia, Hungary), Baltic (Lithuania, Latvia, Estonia), SEE (Bulgaria, Romania, Croatia, Serbia, Slovenia, Bosnia and Other countries Herzegovina, Northern Macedonia, Greece, Albania, Kosovo), W
Slide 32: Contact
Contact LPP SA HQ ul. Łąkowa 39/44, 80-769 Gdańsk Tel. +48 58 76 96 900 Email: lpp@lpp.com CONTACT FOR INVESTORS Email: LPP.investor.relations@lpp.com CONTACT FOR MEDIA Email: media@lpp.com discoverlpp company/lpp-sa discoverlpp discoverlpp 2Q25 PRESENTATION 32