Slide 1: 1Q24 Results Presentation
1Q24 RESULTS — ef PRESENTATION GDANSK, 13 JUNE 2024 RESERVED MOHITO
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 1Q24
SUMMARY 1Q24 = Very good response to the collection by customers, resulting in a high growth in revenue and operating profit in the quarter. = PLN 4.3 billion revenue in the quarter, up by 18.3% YoY, and 25.5% for sales in constant currency (strong appreciation of the zloty against other currencies
Slide 4: Positive outlook for 2Q24
POSITIVE OUTLOOK FOR 2Q24 The summer collections (as the earlier spring collections) are well received by customers, resulting in a 19% YoY growth in constant currencies in the Group's omnichannel sales from 1 May to 10 June. Based on the current data, the Group expects a considerably higher YoY gro
Slide 5: Reporting revenue growth in constant currency (CC)
REPORTING REVENUE GROWTH IN CONSTANT CURRENCY (CC) CC impact for selected markets in 1Q24 Revenues, PLN m 1923 | 1924] YoY Reported 215 207 3.7% Czechia. FX CZK/PLN 0.1985 0.1706 14.1% Constant currency 185 207 12.0% Reported 137 164 19.5% Germany FX EUR/PLN 4.6826 4.3087 -8.0% Constant currency 126
Slide 6: Almost 2,400 stores
ALMOST 2,400 STORES Baltics 101 (+8) As at 30.04.2024 No. of stores YoY LPP GROUP 2,382 +337 Sinsay 1,041 +255 Eastern Reserved 363 +13 Europe & : ME Cropp 378 +29 ; 225 (+38) House 366 +230 - Mohito 234 +17 LPP
Slide 7: 1Q24 PRESENTATION
1Q24 PRESENTATION
Slide 8: 1Q23 Offline 1Q24
▪ ▪ ▪ 1Q23 1Q24 Offline Online Trade agents Other
Slide 9: 1Q23 1Q24 Poland
▪ ▪ ▪ ▪ 1Q23 1Q24 ▪ Poland Abroad
Slide 10: Foreign revenues higher than revenues from Poland
FOREIGN REVENUES HIGHER THAN REVENUES FROM POLAND SHARE OF OMNICHANNEL SALES BY REGION IN 1Q24 (YoY sales dynamics) Eastern Europe & ME; 10% Baltics; 4% (+29% YoY) (-5% YoY) Ce WE; 6% . (+31% YoY) SEE; 22% (+27% YoY) CEE (ex. Poland); 12% (+6% YoY) Poland; 46% (+24% YoY) LPP 10 * In 1Q24, omnichanne
Slide 11: Floorspace of over 2 million m2
FLOORSPACE OF OVER 2 MILLION M? FLOORSPACE BY REGION ths. m? 1Q23 1Q24 YoY LPP GROUP 1,748.2 2,080.6 19.0% Poland 783.1 869.8 11.1% CEE (ex. Poland) 241.7 293.5 2NA% SEE 405.8 519.9 28.1% WE 56.7 90.5 59.7% Baltics 83.2 ng 10.6% Eastern Europe & ME WT 215.0 21.0% LPP W " +25.5% YoY floorspace growth
Slide 12: 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
▪ ▪ ▪ 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 13: Rental costs
▪ ▪ ▪ 1Q23 1Q24 Rental costs HR costs Other costs
Slide 14: SG&A/ m²
▪ 50% 350 ▪ 300 40% 250 ▪ 30% 200 150 20% 100 10% 50 0% 0 1Q23 1Q24 SG&A/ m² SG&A % sales
Slide 15: EBIT (PLN m)
▪ 450.0 10.0% 9.0% ▪ 400.0 350.0 8.0% 7.0% 300.0 6.0% 250.0 5.0% 200.0 4.0% 150.0 3.0% 100.0 2.0% 50.0 1.0% 0.0 0.0% 1Q23 1Q24 EBIT (PLN m) EBIT margin
Slide 16: Double net profit
DOUBLE NET PROFIT PLN m, IFRS16 1Q23 1Q24 Revenues 3,639.4 4,306.0 18.3% Gross profit margin on 49.6% 52.1% 2.5pp SG8A costs 1,547.8 1,823.0 7.8% Other operating activity 27.9 9.0 N/M EBIT 230.7 411.0 78.2% EBIT margin 6.3% 9.5% 3.2pp Net financial activity 85.5 -29.0 N/M Net profit 111.8 277.0 147.
Slide 17: Inventory / m² (PLN)
▪ 4,500 2,500 4,000 ▪ 3,500 2,000 3,000 ▪ 2,500 1,500 2,000 1,000 1,500 ▪ 1,000 500 500 0 0 1Q23 1Q24 Inventory (PLN m) Inventory/ m² (PLN)
Slide 18: Trade receivables, inventory, trade liabilities
▪ ▪ ▪ ▪ ▪ ▪ ▪ 1Q23 1Q23 1Q24 1Q24 Trade receivables Inventory Trade liabilities
Slide 19: Net debt
▪ ▪ 1.6 ▪ 5,000 1.4 4,000 1.2 ▪ 1.0 ▪ 3,000 0.8 ▪ 2,000 0.6 0.4 1,000 ▪ 0.2 0 -0.1 1Q23 1Q24 Net debt Net debt/ EBITDA (4Q) ▪
Slide 20: Capex
CAPEX CAPEX * In 1Q24, capex amounted to PLN 286.0m, i.e. (PLN m) +5.3% YoY. +5.3% " Expenditure on stores amounted to PLN 232.0m, | and expenditure on infrastructure and IT amounted to PLN 54.0m (launch of expansion 27 286.0 of the Distribution Center in Brzegé Kujawski). 497 pa 222.0 232.0 1923 19
Slide 21: Corporate events in 1Q24
CORPORATE EVENTS IN 1Q24 1Q24 PRESENTATION
Slide 22: Mohito & Sandra Kubicka
MOHITO & SANDRA KUBICKA = Sandra Kubicka, in collaboration with the Mohito brand, has created the summer collection, which is the essence of diversity - both in fashion and use. The collection includes elegant as well as more casual proposals. = The collection is available in traditional stores in P
Slide 23: Launch of expansion of the distribution center in Brzesc Kujawski
LAUNCH OF EXPANSION OF THE | DISTRIBUTION CENTER IN BRZESC KUJAWSKI = April 2024 - commencement of works (completion scheduled for 1Q25). " Strengthening of logistics facilities, enabling the handling of higher sales volumes in the Central and Southern European markets. " The warehouse will conform
Slide 24: Artificial intelligence to support business
ARTIFICIAL INTELLIGENCE TO SUPPORT BUSINESS E-COMMERCE * Artificial Intelligence (Al) already responds to almost 50% of customer enquiries addressed to the Contact Center. Through the use of Al, the response is immediate. Our Al assistant performs the work of ca 150 people and supports 27 languages.
Slide 25: Expansion of the cooperation with the Use Waste start-up
EXPANSION OF THE COOPERATION WITH THE USE WASTE START-UP = A proprietary concept for selective depolymerisation was developed as part of the first phase of a project implemented jointly with the Use Waste start-up, completed in 2023. It allowed for the production of a full-quality polyester yarn of
Slide 26: "Wear Your Story" educational campaign
“WEAR YOUR STORY” EDUCATIONAL CAMPAIGN " The main objective of the campaign is to promote the conscious and responsible use of clothes by customers. " The dialogue with consumers is intended to raise awareness of the need to extend the lifetime of clothes by repairing them and upcycling. = “Wear You
Slide 27: 1Q24 PRESENTATION
1Q24 PRESENTATION
Slide 28: Positive outlook for 2Q
POSITIVE OUTLOOK FOR 2Q = 19% YoY growth in the Group’s revenues in constant currencies. "Positive response to the Spring/Summer 2024 collection. * Planned opening of 130 new stores of all brands in 2Q24. Preliminary estimates for the period from 1 May 2024 to 10 June 2024. LPP 28 1Q24 PRESENTATION
Slide 29: Dynamic development of Sinsay store network
DYNAMIC DEVELOPMENT OF SINSAY STORE NETWORK NO. OF STORES 31.01.2024 2024 31.01.2025 Sinsay 978 +620 1,598 Reserved, Cropp, 1,297 +80 1377 House, Mohito TOTAL 2,275 +700 2,975 LPP 29 Sinsay brand store openings in smaller towns, mainly retail parks. Highest store development in 2024 outside Poland i
Slide 30: Target 2024: fast sales growth
TARGET 2024: FAST SALES GROWTH = Group revenues at ca PLN 21bn. " Gross profit margin on sales 52-53%. " SG8&A/ revenues below 40% - maintaining cost effectiveness. " Offline revenues - growth due to higher floorspace +25% YoY and positive LFLs. * Online revenues - double-digit YoY growth. * PLN 1.5
Slide 31: 1Q24 PRESENTATION
1Q24 PRESENTATION
Slide 32: Back-up
—— | - “ BACK-UP al iad <x LPP 32 1Q24 PRESENTATION >
Slide 33: Reporting revenue growth in constant currency (CC)
REPORTING REVENUE GROWTH IN CONSTANT CURRENCY (CC) CC impact for selected markets in 1Q24 Revenues, PLN m 1923 | 1924] YoY Reported 215 207. 3.7% Czechia FX CZK/PLN 0.1985 0.1706 -14.1% Constant currency 185 207 12.0% Reported 137 164 19.5% Germany FX EUR/PLN 46826 4.3087 -8.0% Constant currency 126
Slide 34: Reporting revenue growth in constant currency - methodology
Step 1. Current period * Revenues reported in PLN, no change * Calculating valid average currency exchange rates for individual markets revenue revenue in PLN in FX i y= current . exchange rate LPP Step 2. Comparative period = Revenues reported in the currency as a base " Conversion of the aforement
Slide 35: 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 Herzegovina, Northern Other countries Macedonia, Greece), WE (Germany, Unite
Slide 36: Contact
o > CONTACT FOR > ail: media@lp diseoverlpp company/Ipp-sa discoverlpp dis¢overlpp 1Q24 PRESENTATION