Slide 1: 1Q25 results presentation
1Q25 results presentation GDAŃSK, 12 JUNE 2025 PRESENTATION 1Q25 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 1Q25
Summary 1Q25 PRESENTATION 1Q25 3
Slide 4: Very good 1Q
Very good 1Q Recovery of profit growth path 01 almost PLN 1bn EBITDA, i.e. +18% YoY Very good sales growth 02 total sales increase YoY of +24% in CC, incl. e-commerce growth of +27% in CC Cost efficiency 03 Improved SG&A/sales ratio by nearly 1pp. YoY Focus on profitability 04 Update the 2025 openin
Slide 5: Consistent business growth
Consistent business growth Albania +4.3% PLN 136 and Kosovo PLN 330 1.4bn LFLs in stores open stores Sinsay’s debut advance on dividend 2 stores in Albania e-com sales 3 stores in Kosovo payment in April positive including 112 proposed annual in Sinsay and in Sinsay brand opening of other
Slide 6: Back to quarterly profit growth
Back to quarterly profit growth PLN 5 bn PLN 938 m PLN 464 m PLN 332 m revenue EBITDA operating profit net profit +24% YoY in CC1 +18% YoY +13 YoY +20% YoY 1Growth reported on core business: +22%. Growth reported including sales to trade agents in 1Q24: +15%. PRESENTATION 1Q25 6
Slide 7: 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 30.04.2025) 381 229 (+15) (-5) 136 112 384 (+6) 2,959 Sinsay (+577) +41 112 71 354 (-9) 1,611 (+570) 41 24 1Q24 1Q25 FLOORSPACE Reserved, Cropp, House, Mohito Sinsay Poland Abroad TOTAL 956 ths.
Slide 8: 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) 1,216 956 435 377 697 640 +83 +10% +107 +29% +162 +23% BALTICS WE EE & ME No. of Floorspace No. of Floorspace No. of Floorspace stores (ths. m2) store
Slide 9: 1Q25 Financial results
1Q25 Financial results PRESENTATION 1Q25 9
Slide 10: Robust sales in LFL stores
Robust sales in LFL stores COMPARABLE SALES (LFL) 7.5% 7.5% 5.5% 5.7% 4.3% 3.2% 1.4% -2.2% -3.3% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 PRESENTATION 1Q25 10
Slide 11: Strong sales growth in both channels
Strong sales growth in both channels GROUP REVENUES1 PLN m +21.6% Impact of currency exchange rates: -2.5pp. 4,954 4,074 Online sales in 1Q25 accounted for 29.2% of Group revenue (26.9% in 1Q24). +19.9% 3,481 Launch of the Sinsay brand mobile app in 2,902 the Italian market. +25.1% Share of
Slide 12: Maximising the value of gross margin
Maximising the value of gross margin QUARTERLY GROUP GROSS PROFIT MARGIN -1.1 pp. 58.6% 56.6% 55.3% 55.1% 55.6% Earlier and deeper discounting to 54.0% 53.8% 53.1% 53.9% accelerate the turnover of goods ordered 55.8% 54.8% for higher number of openings. 52.5% 52.5% 52.7% 52.1% 49.6% Higher share
Slide 13: Focus on the efficiency of our resources
Focus on the efficiency of our resources SG&A COSTS/M2 -0.8 pp. 600 47% 45% 44% 42% 45% Growth in SG&A costs slower than sales 500 42% 42% 43% growth. 41% 400 42% 41% 39% Decline in SG&A costs per m2 by 2.1% 40% 40% 300 37% YoY → stabilisation of the cost base in 200 35% 1Q25, optimisation in su
Slide 14: EBITDA close to PLN 1 billion and double-digit profit growth
EBITDA close to PLN 1 billion and double-digit profit growth EBITDA EBIT NET PROFIT PLN m PLN m PLN m +18% +13% +20% 938 464 795 411 332 277 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 19.5% 18.9% 10.1% 9.4% 6.8% 6.7% EBITDA margin1 EBIT margin1 Net margin1 1 For comparability, 1Q24 figures have been cleared for
Slide 15: Inventory driven by fast growth
Inventory driven by fast growth INVENTORY AND INVENTORY/M2 Increase in the level of inventory in 1Q25 mainly due to: 7,000 2,500 order of goods for openings of new 6,000 1,915 1,918 1,903 stores, some of which are 5,000 1,722 1,666 1,816 1,827 2,000 postponed, 1,534 1,542 4,000 1,500 stocking
Slide 16: Favourable working capital
Favourable working capital WORKING CAPITAL (PLN m) -147 Cash cycle at a favourable negative level -335 of -27 days: slower inventory turnover (increase 3,189 4,786 from 136 to 187 days), 903 789 reduction of payment term for receivables (from 18 to 14 days), -4,427 -5,722 extension of paymen
Slide 17: Implementation of investment projects in line with the plan
Implementation of investment projects in line with the plan CAPEX PLN m +114% Expenditure on stores amounted to PLN 276m due to dynamic openings of Sinsay 612 613 brand stores. 67 44 519 69 136 Logistics expenditure (PLN 293 m) mainly 401 293 includes: 41 153 286 107 expansion of DC in Brześć
Slide 18: Safe debt level
Safe debt level NET DEBT (PLN m, IFRS16) 6,800 1.4 1.3 At the end of 1Q25, net debt according to 5,800 1.2 IFRS16 amounted to PLN 5.4bn, including 1.0 1.0 PLN 5.0bn due to leases. 4,800 0.9 1.0 0.8 Net debt includes PLN 1.0bn in money 3,800 0.8 market funds at the end of 1Q25 (PLN 2,800 0.6 0.8b
Slide 19: Plan for 2025
Plan for 2025 PRESENTATION 1Q25 19
Slide 20: Development in Central Asia on schedule
Development in Central Asia on schedule KAZAKHSTAN Resumption of expansion +60 stores in 2025 GEORGIA Debut in 3Q25 AZERBAIJAN Debut in 3Q25 UZBEKISTAN Debut in 3Q25 +20 stores in 2025 PRESENTATION 1Q25 New countries in 2025 26 stores (including 16 Sinsay) as at 30.04.2025 20
Slide 21: Optimisation of the smallest "mini" format
Optimisation of the smallest „mini” format Sinsay mini, i.e. 450m2 – 550m2 stores SINSAY STORE OPENINGS PLAN FOR 2025 Positive profitability, however slightly below the 1500 average for the entire chain A fast rollout of the format in its current form could 1100 dilute profitability in the lon
Slide 22: Focus on quality
Focus on quality PROFITABILITY BY STORE SIZE1,2 SHARE OF PROFITABLE SINSAY STORES2 (data for 1Q25) 70% 35.0% (data for 1Q25) 31.1% 29.9% 28.9% 60% 30.0% 26.1% 26.7% 29.7% 28.5% 50% 25.0% 26.8% 26.7% 40% 20.0% 20.3% 30% 15.0% 43% 97% 20% 39% 10.0% 95% 32% 32% 10% 20% 5.0% 90% 15% 4% 5% 6% 0% 4% 0.0%
Slide 23: Good portfolio of projects to double the pace of openings YoY
Good portfolio of projects to double the pace of openings YoY NO. OF NEW STORES # (gross) 1,200 1.8x 100 Total floorspace growth in 2025 ca +25-30% 663 YoY: 1.7x 99 Sinsay +45-50% YoY 1,100 388 Heritage brands 118 max +5% YoY 564 270 2023 2024 target 2025 Sinsay Reserved, Cropp, House, Mohito PR
Slide 24: Outlook for 2Q
Outlook for 2Q TEMPERATURE DEVIATION FROM HISTORIC AVERAGE FOR MAY – WARSAW (°C) Start of 2Q affected by record low temperatures 5°C 5°C 5°C 5°C 13% YoY growth in Group’s revenues in constant 4°C 4°C 3°C 3°C currency from 1 May to 10 June (impact of currency 2°C 1°C 2°C 2°C 2°C 1°C exchange rate
Slide 25: 2025 targets
2025 targets 2025 2024 2025 update Sales from core business1, PLN bn 19.4 ca 25 - 26 ca 23 - 24 including: Offline 13.9 ca +30% YoY ca +20 - 25% YoY Online 5.4 ca +25% YoY ca +20 - 25% YoY Gross profit margin1 55.2% 53% - 54% no change SG&A % sales1 42.6% 41% - 42% no change EBITDA margin 21.1% 19%
Slide 26: Key takeaways
Key takeaways Recovery of profit growth path 01 almost PLN 1bn EBITDA, i.e. +18% YoY Very good sales growth 02 total sales increase YoY of +24% in CC, incl. e-commerce growth of +27% in CC Cost efficiency 03 Improved SG&A/sales ratio by nearly 1pp. YoY Focus on profitability 04 Update the 2025 openi
Slide 27: Q&A
Q&A PRESENTATION 1Q25 27
Slide 28: Back-up
Back-up PRESENTATION 1Q25 28
Slide 29: Lower costs of stores
Lower costs of stores COST OF OWN STORES/M2 -2.3% Lower YoY rental costs/m2 → higher number of opened Sinsay stores 174 177 175 169 165 at a lower rent. 52 56 55 YoY growth in personnel costs/ m2 → 53 52 growth of minimum wage, remuneration review. 56 60 59 61 59 Stable other costs/m2 YoY → op
Slide 30: Financial results
Financial results PLN m, IFRS16 1Q24 2Q24 3Q24 4Q24 1Q25 YoY Revenues 4,306 5,005 5,212 5,671 4,954 15.0% Revenues1 4,074 4,731 5,050 5,551 4,954 21.6% Gross profit margin 52.1% 52.5% 54.8% 52.7% 54.0% 1.9pp. 1 Gross profit margin 55.1% 55.6% 56.6% 53.9% 54.0% -1.1pp. SG&A costs 1,823 2,009 2,096 2,
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 PRESENTATION 1Q25 32