Slide 1: 3Q21/22 Results Presentation
3Q21/22 3Q21/22 RESULTS PRESENTATION GDAŃSK, DECEMBER 9, 2021 GLOBAL ASPIRATIONS
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) was prepared by LPP SA (the “Company”) with a 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 prospe
Slide 3: Key corporate events
3Q21/22 3 01 GLOBAL ASPIRATIONS Key corporate events
Slide 4: Different YoY impact of the pandemic
Different YoY impact of the pandemic Gradual deterioration Completion of negotiations of the pandemic situation Rebound in sales before with shopping centers on No lockdowns in all markets Lockdown in Poland for most in many markets, lower the holiday season. changes to the lease terms. where LPP ha
Slide 5: Different YoY restrictions in 9M21/22
Different YoY restrictions in 9M21/22 3Q21/22 5 GLOBAL ASPIRATIONS
Slide 6: Key corporate events
Key corporate events 3Q21/22 6 9-10.21 10.21 10-11.21 11.21 COOPERATION WITH ARTISTS ECO-BUILDINGS IMPROVEMENTS IN FC AUTOMATION IN AND INFLUENCERS LOGISTICS IN POLAND SLOVAKIA Cracow branch building with Monika Brodka with a limited BREEAM certificate. Completion of construction works Automatic sor
Slide 7: Brodka X Reserved
Brodka X Reserved Cooperation with singer Monika Brodka on a limited collection of extravagant casual 3Q21/22 clothing. 7 The collection is made from natural materials such as alpaca, wool, silk, organic cotton and environmentally friendly Naia ™ Eastman and LENZING ™ ECOVERO ™. The collection was s
Slide 8: Magic. We have it.
Magic. We have it. 3Q21/22 A new campaign by Cropp under the slogan: 8 Magic. We have it. The faces of the campaign were two top Polish influencers from the Z generation - Kinga Sawczuk @kompleksiaraxx and Antonina Flak @samosiaa_yt, famous for their TikTok presence. The new collection shows changes
Slide 9: Collections for Christmas
Collections for Christmas #RESERVEDFORXMAS SINSAY CHRISTMAS COLLECTION 3Q21/22 9 GLOBALNE ASPIRACJE
Slide 10: LPP's ECO buildings
LPP’s ECO buildings LPP’s CRACOW OFFICES WITH BREEAM CERTIFICATE House and Mohito design offices meet BREEAM requirements, i.e. one 3Q21/22 of the most frequently used methods of assessing buildings in terms of environmental standards. 10 The sustainable construction solutions implemented in the fac
Slide 11: Completion of works in Brześć Kujawski
Completion of works in Brześć Kujawski 3Q21/22 11 After 10 months of construction works, we are preparing to launch a Distribution Center, located in the Brześć Kujawski community. In this 75 ths m2 large facility, assembly of the main hall equipment and finishing works are currently underway. At th
Slide 12: E-commerce warehouse in Pruszcz Gdański
E-commerce warehouse in Pruszcz Gdański 3Q21/22 EXPANSION OF NETWORK OF WAREHOUSES DEDICATED TO E-COMMERCE OPERATIONS - RENTAL 12 OF A NEW FULFILLMENT CENTER IN PRUSZCZ GDAŃSKI WITH A TOTAL AREA OF 64 THS M2. Two warehouse halls: • the first one, occupying 12 ths m2, has been operating since July th
Slide 13: Automation of FC in Slovakia
Automation of FC in Slovakia WE INVEST IN TECHNOLOGY TO IMPROVE Warehouse automation also significantly speeds up handling of e-commerce shipments and supports 3Q21/22 LOGISTICS PROCESSES IN THE FULFILLMENT implementation of deliveries in the "next business day" mode. 13 CENTER IN SLOVAKIA. The impl
Slide 14: 3Q21/22 financial results
3Q21/22 14 02 GLOBAL ASPIRATIONS 3Q21/22 financial results
Slide 15: Towards omnichannel
Towards omnichannel OFFLINE ONLINE 3Q21/22 2,125 31 stores countries 15 +29.5% +85.3% m2 revenues +48.3% LFLs 26 39 +72.2% countries GROUP COUNTRIES REVENUES GLOBAL ASPIRATIONS
Slide 16: Over 2 ths stores
Over 2 ths stores 5 32 498 20 22 1 15 3Q21/22 928 Number of Open as at 18 As at 31.10.2021 stores 6.12.2021 101 16 65 139 18 LPP GROUP 2,125 97% 34 10 39 91 Poland 928 100% 9 32 33 6 Europe 518 89% CIS 670 100% ME 9 100% 3 1 2 2 GLOBAL ASPIRATIONS 1 online + offline online offline
Slide 17: High Group revenue dynamics
High Group revenue dynamics GROUP REVENUES OMNICHANNEL REVENUES (PLN m) 3,913.4 PLN m 3Q20/21 3Q21/22 YoY 3,643.1 LPP GROUP 2,445.7 3,913.4 60.0% 906.8 2,724.2 793.2 Reserved 1,069.0 1,482.3 38.7% 2,332.0 2,445.7 2,350.3 3Q21/22 390.7 2,129.3 2,094.4 Cropp 321.4 415.1 29.2% 239.5 445.9 1,178.6 621.2
Slide 18: Doubling of e-commerce revenues
Doubling of e-commerce revenues ONLINE SALES ONLINE BY REGIONS (PLN m) (PLN m) PLN 906.8m 138.0 988.3 906.8 778.1 793.2 PLN 445.9m +103.4% 3Q21/22 621.2 429.1 62.7 445.9 18 390.7 384.0 173.6 239.5 339.8 209.7 3Q19/20 4Q19/20 1Q20/21 2Q20/21 3Q20/21 4Q20/21 1Q21/22 2Q21/22 3Q21/22 3Q20/21 3Q21/22 (3M
Slide 19: Foreign revenues higher than domestic ones
Foreign revenues higher than domestic ones REVENUES BY REGIONS IN 3Q21/22 3Q21/22 FLOORSPACE (PLN m) (by regions) ths m2 3Q20/21 3Q21/22 YoY Poland 1,524 +42% YoY LPP GROUP 1,351.8 1,750.4 29.5% Europe Poland 551.5 645.0 16.9% 3Q21/22 1,283 +74% YoY 19 Europe 417.5 505.2 21.0% CIS 1,095 +73% YoY CIS
Slide 20: High gross profit margin and inventory
High gross profit margin and inventory QUARTERLY GROUP GROSS PROFIT MARGIN INVENTORY AND INVENTORY/M2 58.3% 3,000 1,570 1,614 1,702 1,572 1,490 1,439 58.8% 56.6% 1,455 55.4% 1,600 55.5% 2,500 1,266 1,223 51.9% 2,000 2,962 1,200 3Q21/22 53.4% 2,239 1,500 2,074 2,311 48.2% 800 20 1,000 1,857 1,992 47.
Slide 21: Slight increase in costs/m2
Slight increase in costs/ m2 COSTS OF OWN STORES/ M2 SG&A COSTS/ M2 (IAS17) (IFRS16) -3% YoY 11% YoY 201 195 160 150 167 61 56 148 156 144 141 3Q21/22 51 55 49 48 44 51 53 49 47 297 285 293 292 21 38 257 262 275 40 38 47 49 245 37 36 223 89 86 60 69 72 57 58 65 58 3Q19/20 4Q19/20 1Q20/21 2Q20/21 3Q2
Slide 22: Over PLN 0.8 bn EBIT in the quarter
Over PLN 0.8 bn EBIT in the quarter PLN m, IFRS16 3Q20/21 3Q21/22 YoY Revenues 2,445.7 3,913.4 60.0% • High double-digit sales increases YoY due to good online and Gross profit margin on sales 56.6% 58.3% 1.7pp. offline sales results. SG&A costs 1,035.9 1,457.6 40.7% • YoY increase in gross margin d
Slide 23: EBIT more favourable under IFRS16 than IAS17
EBIT more favourable under IFRS16 than IAS17 PLN m, IAS17 3Q20/21 3Q21/22 YoY EBITDA PLN 159.4m of additional depreciation Revenues 2,445.7 3,913.4 60.0% of the right-of-use asset. 3Q21/22 Gross profit margin on sales 47.6% 58.3% 10.7pp. 3Q21/22 23 SG&A costs 975.8 1,462.3 49.9% EBIT 383.7 810.8 111
Slide 24: Over PLN 1.1 bn of profit in 9M21/22
Over PLN 1.1 bn of profit in 9M21/22 PLN m, IFRS16 9M20/21 9M21/22 YoY Revenues 5,753.7 9,906.9 72.2% • High double-digit sales growth YoY due to the development of omnichannel. Significant increase in gross margin YoY due to lower Gross profit margin on sales 51.5% 56.6% 5.1pp. YoY sales, more favo
Slide 25: Executive summary
Executive summary 9M21/22 3Q21/22 1 High offline revenue dynamics despite pandemics. 25 2 Triple-digit online sales growth. 3 Gross profit and operating margin improvement. 4 Trade liabilities exceed inventory. 5 Net cash (IAS17). GLOBAL ASPIRATIONS
Slide 26: Outlook for 2021/22+
3Q21/22 26 03 GLOBAL ASPIRATIONS Outlook for 2021/22+
Slide 27: 2021/22 targets
2021/22 3Q21/22 targets 27 Challenges Targets Opportunities Disruptions in supply chain: rising Continuation of double-digit floorspace Successful collections of all brands - transport costs, delivery delays and growth (1.9m m2, +29% YoY, +53% YoY favorable price-quality ratio. disrupted produ
Slide 28: Albania – 27. offline market
Albania – 27. offline market OFFLINE PRESENCE IN THE BALKANS In 2022/23, we plan to open stores of all 5 LPP brands in Albania. 3Q21/22 28 It will be the Group's 27th offline market. It will strengthen our presence in the Balkans. Planned opening of stores with c. 6,000 m2 of floorspace in 2H22/23.
Slide 29: 2022/23 targets
2022/23 targets Continuation of double-digit floorspace growth: + 25% YoY to 2.3m m2 (out of which 0.7m m2 in Poland and 0.8 m2 in CIS). Targets Double-digit online sales growth 3Q21/22 (40% + YoY). 29 High double-digit Group sales growth. Maintaining the operating margin. Net cash to cont
Slide 30: Q&A
GLOBAL ASPIRATIONS 30 3Q21/22 Q&A 04
Slide 31: Glossary
Poland Retail sales in Poland and other sales of LPP SA. CEE Region including: Czech Republic, Slovakia, Hungary. Baltic Region including: Lithuania, Latvia, Estonia. CIS Region including: Russia, Ukraine, Belarus and from 2018 also Kazakhstan. SEE Region including: Bulgaria, Romania, Croatia, Serbi
Slide 32: Contact
discoverlpp company/lpp-sa discoverlpp discoverlpp Contact GDAŃSK HQs CONTACT FOR INVESTORS CONTACT FOR MEDIA WWW.LPPSA.COM Łąkowa 39/44, 80-769 Gdańsk Email: LPP.investor.relations@lppsa.com Email: media@lppsa.com Tel. +48 58 76 96 900 Email: lpp@lppsa.com