Slide 1: Quarterly Results Q3 2024
QUARTERLY RESULTS Q3 2024 November 22, 2024, Palmiry Elegance & Young
Slide 2: Limitation of Liability
LIMITATION OF LIABILITY This presentation has been prepared by the Management Board of Wittchen SA (the "Company" or "Issuer") for the purpose results presentation for Q3 2024 to the Company's shareholders, clients and financial analysts. This presentation does not constitute, in whole or in part, a
Slide 3: Business Summary
3 01 BUSINESS SUMMARY Elegance & Young
Slide 4: Sales channels: online, offline, other
ONLINE SALES Own e-shops and external 53 OMNICHANNEL online stores: 7 own e-shops, 46 marketplaces marketplaces (+3 y/y) 48.8% Sales 9M24 865k orders in 9M24, i.e. +2% y/y, with a slightly lower sales value. Product quantities sold: +10% y/y 9M24 10,367 m2 4 OFFLINE SALES (+649 m2 fl/fl) Brick-and-m
Slide 5: Growing Presence in Europe
GROWING PRESENCE IN EUROPE ▪ Own online shops in 7 countries (end of 3Q24) ▪ 5 new brick-and-mortar stores opened in 2024: Austria (+2), Germany (+1), Romania (+2) ▪ Presence on 46 marketplace platforms in 24 European countries 5 Logistics center in UNITED Palmiry Stationary stores 3Q24 y/y KINGDOM
Slide 6: Product Portfolio Fitting Customers and Environment
PRODUCT PORTFOLIO FITTING CUSTOMERS AND ENVIRONMENT 3% 1% 4% 1% Luggage, our core product category, faces fierce competition. 9% 17% 18% 12% 6% 5% 4% 6% 6 9M23 9M24 Increase in the share of handbags and backpacks in total sales. 58% 55% Offer for both women and men. Suitcases Bags Clothes and access
Slide 7: Financial Results
7 02 FINANCIAL RESULTS Elegance & Young
Slide 8: 3Q24 Results
REVENUE 115.3 mPLN -10.0 % y/y 3Q24 RESULTS GROSS SALES MARGIN 60.1% -2.2 pp . y/y 8 EBIT 11.5 mPLN -51.2% y/y EBIT MARGIN 10.0% -8.5 pp y/y 8.7 mPLN Elegance & Young NET PROFIT -49.8% y/y
Slide 9: 3Q24 Off-line Sales Growth
3Q24 OFF-LINE SALES Quarterly sales (PLN million) GROWTH (NEW SHOWROOMS 118,2 136,7 96,3 110,4 128,1 132,3 93,0 112,8 115,3 ABROAD) 17,6 23,1 18,1 17,2 10,9 14,5 17,4 11,2 8,2 65,6 61,6 71,7 54,6 ▪ Sales growth in showrooms by 2.7% y/y (+1.3 mPLN), 52,0 54,9 52,0 49,9 50,1 due to the increase in the
Slide 10: Maintaining High Gross Sales Margin
Key elements affecting gross MAINTAINING HIGH GROSS SALES margin: MARGIN purchasing cost transportation costs Quarterly gross sales margin PLN/USD/EUR exchange rates 64,9% 63,6% 63,8% 63,1% 63,0% 62,6% 62,3% 62,1% discounts 60,1% 10 consumer demand 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Gross
Slide 11: Shops Costs Under Control
Own store costs / m2 +5% SHOPS COSTS UNDER (PLN/m2) y/y CONTROL 656 660 685 74 675 702 88 659 703 70 733 64 737 65 84 83 81 74 ▪ Inflationary pressure on costs of own stores - 326 343 298 267 303 267 312 271 263 increase in costs/m2 in 3Q24 by 5% y/y: ▪ +6% YoY increase in rental rates: increase 314
Slide 12: Lower EBIT, Mainly in Online Channel
LOWER EBIT, MAINLY Breakdown of profit on core business (PLN million, IFRS16) IN ONLINE CHANNEL 40,0 29,1 34,5 12,9 16,5 17,2 11,5 35,0 23,8 26,7 7,4 30,0 7,4 3,6 25,0 6,2 20,0 4,9 14,2 15,1 15,0 2,4 4,9 13,9 ▪ Online channel under heavy pressure, 10,0 3,4 9,9 14,5 1,7 1,7 12,0 9,5 6,7 5,0 11,3 main
Slide 13: 3Q24 Results
3Q24 RESULTS PLN million, IFRS16 3Q24 3Q23 y/y Revenues 115.3 128.1 -10.0% Gross margin on sales (%) 60.1% 62.3% -2.2 pp . SG&A 57.7 56.0 3.0% ▪ Gross margin of 60.1% Costs as % of sales 50.1% 43.8% 6.3% ▪ 3Q24 significantly below expectations due Operating profit 11.5 23.7 -51.2% to economic condit
Slide 14: 9M24 Results (YTD)
9M24 RESULTS (YTD) PLN million, IFRS16 9M24 9M23 y/y Revenues 321.1 334.8 -4.1% Gross margin on sales (%) 61.9% 62.9% -1.0 pp SG&A 162.5 157.5 3.2% ▪ Sales for 9M24 slightly lower than for the same period of 2023 Costs as % of sales 50.6% 47.0% 3.6 pp Operating profit 35.0 51.9 -32.6% ▪ Maintaining
Slide 15: Optimum Stock Levels
Total inventory and inventory per m 2 OPTIMUM STOCK LEVELS 13 599 13 788 13 042 12 690 14 000 12 211 12 149 140,0 11 556 11 581 10 677 12 000 120,0 10 000 100,0 8 000 80,0 ▪ Adjusting inventory levels to market needs 130,4 134,0 6 000 60,0 125,7 119,6 123,3 120,6 120,1 112,7 (reducing inventory leve
Slide 16: Investments and Debt
Quarterly capital expenditure INVESTMENTS (PLN million) AND DEBT 5,7 ▪ In 3Q24, Capex was mainly related to IT, e- commerce and foreign and domestic 3,1 2,9 3,3 3,1 3,0 showrooms (modernizations and new 1,9 2,3 openings) 0,5 ▪ Planned investments in 2024 after revision: 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
Slide 17: 3Q24 Summary
01. Sales value down 10% YoY with volume up 8% YoY 02. Gross sales margin: 60.1% 3Q24 SUMMARY 17 03. EBITDA margin: 16.8% 04. Stable cash flow from operating activities Elegance & Young 05. Flexible inventory management: PLN 120.1 million at the end of 3Q24`
Slide 18: Plans 2024+
18 Elegance & Young 03 PLANS 2024+
Slide 19: Assumptions for 4Q24
CHANCES ASSUMPTIONS FOR 4Q24 building a brand abroad 1 Improving the terms of cooperation expanding the range on marketplace platforms with marketplaces optimization of commission costs RISKS Advertising campaign in Poland 2 (including TV advertising) and brand weakening consumer demand 19 strengthe
Slide 20: Wittchen Group Summary
01. Sales and profitability under pressure from recession and competition WITTCHEN GROUP SUMMARY 02. New partners and solutions supporting e-commerce sales 20 03. Expanding the products range 04. Wittchen remains a profitable company Elegance & Young 05. Goal: return to growth trend
Slide 21: Questions and Answers
21 04 QUESTIONS AND ANSWERS Elegance & Young
Slide 22: Supportive Slides
22 05 SUPPORTIVE SLIDES Elegance & Young
Slide 23: Dividends
DIVIDENDS (PLN million, dividends shown under the year of payment) Dividend per share 0.06 0.66 0.83 0.84 1.0 3.03 3.33 3.57 70,0 65,5 61,1 60,0 53,3 50,0 23 40,0 30,0 18,2 20,0 15,0 15,2 11,9 9,3 10,0 0,0 2014 2015 2016 2017 2018 2021 2022 2023 Elegance & Young ▪ Dividend of PLN 3.57 per share from
Slide 24: Simple Structure of the Capital Group
SIMPLE STRUCTURE OF THE CAPITAL GROUP Wittchen SA owner of the office and logistics centre in Palmiry, purchase and sale of the Group's goods, conclusion of lease agreements for company showrooms, owner of the WITTCHEN trademarks and licensee of the VIP COLLECTION mark. 24 100% 100% 100% 100% 100% 1
Slide 25: Own E-Stores in 7 Countries
OWN E-STORES IN 7 COUNTRIES they build the reputation of the Wittchen brand 25 they work in the local language they use local forms of payment Elegance & Young and are handled by the logistics center in Palmiry
Slide 26: Stable Number of Stores
STABLE NUMBER OF STORES Number of stores 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Poland 97 96 95 94 94 93 91 91 91 The czech republic 6 6 7 7 7 7 7 7 7 Hungary 3 3 3 3 3 3 3 3 3 Slovakia 1 1 1 1 Romania 1 1 1 2 Germany 1 1 Austria 2 2 Ukraine (franchise) 10 10 10 10 10 10 10 10 10 Toge
Slide 27: Stable Surface
STABLE SURFACE m2 3Q'22 4Q2'2 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Poland 8,000 7 952 8 036 7 960 7 960 8 006 7 826 7 883 7 918 The czech republic 508 508 629 629 629 629 629 629 629 Hungary 249 249 249 249 249 249 249 249 249 Slovakia 92 92 92 92 Romania 73 73 73 225 Germany 158 158 Austria 21
Slide 28: Office and Logistics Space
OFFICE AND LOGISTICS SPACE Logistics Center 2 Parameters Office building Logistics Center 1 (new warehouse) Construction cost (excluding land 17,708 thousand 13,608 thousand 16,316 thousand purchase costs) Put into use 25/10/2017 31.12.2010 16/07/2020 28 Volume 11,289.2 m3 59,446 m3 99,277.83 m3 Bui
Slide 29: Retail and Business Customers
RETAIL AND BUSINESS RETAIL CUSTOMERS Customers of our brick-and-mortar stores, e-shops and marketplaces CUSTOMERS 91 % revenues in 3Q24 29 BUSINESS CUSTOMERS Domestic and foreign business partners (wholesale) 9% revenues in 3Q24 Elegance & Young
Slide 30: Quarterly Financial Results
QUARTERLY FINANCIAL RESULTS PLN million 3Q22 4Q22 1Q'23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Revenues 118.2 136.7 96.3 110.4 128.1 132.3 93.0 112.8 115.3 Gross profit on sales 74.6 85.5 60.7 70.2 79.8 85.8 59.3 70.0 69.2 Margin (%) 63.1% 62.6% 63.0% 63.6% 62.3% 64.9% 63.81% 62.1% 60.1% SG&A costs 45.5 51.1
Slide 31: Safe Balance
SAFE BALANCE 3Q23 3Q24 ▪ The dominant position in Fixed assets 144.5 160.2 tangible fixed assets is the tangible fixed assets 72.4 73.8 net value of company's intangible assets and goodwill 27.1 28.8 headquarters in Palmiry, the assets under the right of use 43.7 54.4 logistics centre and Current as
Slide 32: Family Company, Stable Shareholding
FAMILY COMPANY, others 40,06% STABLE Jędrzej & Monika Wittchen SHAREHOLDING 59,94% 34 Number of % As of September 30, 2024 shares/votes participation Jędrzej and Monika Wittchen 11 051 244 59.94% indirectly indirectly through Gold through Gold 10 313 776 55.94% directly Town Town Monika 40 160 0.22%
Slide 33: Glossary of Terms
GLOSSARY OF TERMS B2B SEGMENT Revenues from business customers. B2C SEGMENT Revenues from retail customers. SALES (PLN/M 2 PER MC) Quarterly sales (stores, internet, other sales)/ average working area / 3. 35 OWN STORES COSTS/M2 Quarterly costs of own stores/ average working area of own stores/ 3. (
Slide 34: Contact
/ wittchen CONTACT / wittchen / witchencom / WittchenPolska / Wittchen-sa . WITTCHEN SA Palmiry, ul. Gdańska 60 05-152 Czosnów CONTACT FOR INVESTORS dariusz.kormanski@wittchen.com tel : +48 517 241 786