Slide 1: 4Q24 results presentation
4Q24 results presentation A MODERN GROUP WITH TRADITIONS April 25, 2025
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") was prepared by VRG S.A. (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 the Capital Group and does not presen
Slide 3: Introduction
VRG [ | Ol Introduction
Slide 4: Good results on unfavourable market
Good results on unfavourable market Strong 4Q24 results Good start of the year • favourable effects of focus • the sell-off season went on categories, in which according to expectations, Vistula, Bytom, Wólczanka • good reception of brands have a strong collections of VRG S.A. position, apparel bran
Slide 5: Continued Group floorspace optimisation
Continued Group floorspace optimisation GROUP FLOORSPACE CHANGE YOY GROUP FLOORSPACE CHANGE YOY (ths m2) (ths m2) 1.4 +1.4 -1.1 -1.4 +0.2 13.0 -3.3 -1.0 14.5 52.5 50.6 -3.3 39.5 36.1 4Q23 VST BTM WLC DCG W.KRUK 4Q24 4Q23 Apparel segment Jewellery segment 4Q24 • The group’s floorspace came in at 50.6
Slide 6: Favourable revenue dynamics in both segments in 4Q24
Favourable revenue dynamics in both segments in 4Q24 Jewellery segment Positive sales dynamics in the jewellery segment in each of REVENUE DYNAMICS the last 12 months, built on (PLN m) growth in the jewellery sales and supported by network 30% 30% development. 20% 20% 16.2% 12.5% 12.5% 14.4% 12.4% 1
Slide 7: More stable off-line than on-line sales dynamics at the end of 2024
More stable off-line than on-line sales dynamics at the end of 2024 Stores Positive sales dynamics in traditional stores in each REVENUE DYNAMICS month of 4Q24. (PLN m) 30% 48.3% 50% 41.7% 25% 40% Group 34.9% 20% 40.5% 32.2% More stable off-line than on- 20.6% 30% line dynamics at the end of 24.0% 1
Slide 8: Performance by brands
O 2. Performance by brands
Slide 9: A sharp improvement in EBIT of VRG S.A. brand stores in 4Q24
A sharp improvement in EBIT of VRG S.A. brand stores in 4Q24 Gross profit margin Double digit revenues/m2 Cost efficiency improvement growths Impact of closing down of Lower level of promotions, Positive impact of actions unprofitable floorspace and tailored to the brands' taken 2-3 quarters earlier
Slide 10: Vistula: double-digit YoY off-line growths in 4Q24
Vistula: double-digit YoY off- line growths in 4Q24 VISTULA BRAND REVENUES (PLN m) 65.8 67.0 70.2 63.0 63.7 6.0 14.2 9.8 51.8 7.7 50.7 47.6 14.2 13.3 46.9 12.7 7.0 11.2 9.6 6.9 10.6 8.7 10.1 10.2 9.0 8.1 7.0 43.4 46.7 44.8 46.4 34.7 39.1 33.8 31.7 29.7 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Ow
Slide 11: Vistula: 4Q24 executive summary
Vistula: 4Q24 executive summary VISTULA BRAND REVENUES VISTULA BRAND EFFICIENCY (PLN m) 70.2 63.0 4Q23 4Q24 YoY 14.2 13.3 +11.5% YoY Revenues (PLN/m2 per month) 1,133 1,354 19.5% 9.6 10.6 Gross profit margin (%) 56.2% 61.9% 5.7pp. 46.4 39.1 Cost of stores 492 591 19.9% (PLN/m2 per month) 4Q23 4Q24 S
Slide 12: Bytom: dynamic YoY revenues growth in 4Q24
Bytom: dynamic YoY revenues growth in 4Q24 BYTOM BRAND REVENUES (PLN m) 59.6 50.1 51.6 52.8 54.2 12.9 6.9 7.2 11.4 38.9 13.3 1.4 41.9 1.5 1.8 1.8 33.9 1.1 34.6 7.3 6.0 1.0 6.8 1.2 8.0 1.0 0.7 42.9 45.5 45.2 36.9 38.4 31.7 33.6 26.1 25.8 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Own stores Franchi
Slide 13: Bytom: 4Q24 executive summary
Bytom: 4Q24 executive summary BYTOM BRAND REVENUES BYTOM BRAND EFFICIENCY (PLN m) 59.6 4Q23 4Q24 YoY 52.8 12.9 Revenues (PLN/m2 per month) 1,288 1,578 22.5% 13.3 +12.9% YoY 1.5 1.1 Gross profit margin (%) 56.1% 62.6% 6.5pp. 45.2 Cost of stores 38.4 542 620 14.5% (PLN/m2 per month) Store EBIT (PLN m)
Slide 14: Wólczanka: continued revenue growth in 4Q24
Wólczanka: continued revenue growth in 4Q24 WÓLCZANKA BRAND REVENUES (PLN m) 38.8 37.0 35.9 30.1 27.7 20.3 25.2 24.5 18.3 17.6 20.8 21.7 10.1 14.0 13.4 12.0 3.8 11.3 3.4 7.3 2.9 2.7 2.6 2.2 1.8 2.0 2.0 14.9 14.2 15.4 13.6 15.2 8.4 10.8 10.0 10.5 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Own store
Slide 15: Wólczanka: 4Q24 executive summary
Wólczanka: 4Q24 executive summary WÓLCZANKA BRAND EFFICIENCY WÓLCZANKA BRAND EFFICIENCY (PLN m) 38.8 4Q23 4Q24 YoY 35.9 Revenues (PLN/m2 per month) 2,581 4,032 56.2% +8.0% YoY 20.8 17.6 Gross profit margin (%) 59.9% 66.0% 6.1pp. 2.9 2.7 Cost of stores 971 1,384 42.5% 15.4 15.2 (PLN/m2 per month) Sto
Slide 16: Deni Cler: stable YoY revenues in 4Q24
Deni Cler: stable YoY revenues in 4Q24 DENI CLER BRAND REVENUES (PLN m) 17.2 17.0 16.7 14.2 13.5 13.7 1.4 1.8 13.0 1.8 12.4 11.8 1.7 1.6 1.9 5.7 5.5 1.3 6.1 1.3 1.2 4.6 4.7 4.1 4.4 4.3 4.1 9.5 9.9 9.1 7.9 7.2 6.6 7.7 7.3 6.4 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Own stores Franchise stores +
Slide 17: Deni Cler: 4Q24 executive summary
Deni Cler: 4Q24 executive summary DENI CLER BRAND REVENUES DENI CLER BRAND REVENUES (PLN m) 17.2 4Q23 4Q24 YoY 17.0 1.8 1.8 -1.2% YoY Revenues (PLN/m2 per month) 2,012 1,862 -7.5% 5.5 6.1 Gross profit margin (%) 65.1% 66.7% 1.5pp. Cost of stores 9.9 9.1 702 708 0.8% (PLN/m2 per month) Store EBIT (PL
Slide 18: W.KRUK: record high 4Q24 revenues
W.KRUK: record high 4Q24 revenues W.KRUK RETAIL REVENUES (PLN m) 247.8 225.8 21.1 197.4 17.7 19.7 12.7 166.1 169.3 17.7 177.4 179.7 154.9 10.0 10.7 14.5 141.5 7.7 8.2 9.7 13.8 13.0 11.7 7.6 11.8 11.0 9.2 207.0 190.5 170.2 153.6 156.1 146.5 149.4 134.2 124.6 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q
Slide 19: W.KRUK: 4Q24 executive summary
W.KRUK: 4Q24 executive summary W.KRUK RETAIL REVENUES W.KRUK BRAND EFFICIENCY (PLN m) 247.8 225.8 4Q23 4Q24 YoY 21.1 Revenues (PLN/m2 per month) 5,819 5,733 -1.5% 17.7 19.7 17.7 +9.8% YoY Gross profit margin (%) 52.4% 52.4% 0.0pp. 190.5 207.0 Cost of stores 1.428 1,505 5.4% (PLN/m2 per month) Store
Slide 20: Group results
VRG Group results
Slide 21: Growing group's revenues and revenues/m2
Growing group’s revenues and revenues/m2 GROUP REVENUES (PLN m) 444.6 402.3 • Group revenues in 4Q24 amounted to PLN 444.6m (+10.5% YoY), due to 369.0 340.8 335.3 297.1 311.5 growth in both segments. 267.0 278.2 256.4 194.9 229.3 167.8 178.1 180.3 • In 4Q24, revenues of the apparel segment were 8.8%
Slide 22: Double-digit growth in gross profit on sales
Double-digit growth in gross profit on sales GROSS PROFIT ON SALES (PLN m) 254.7 218.7 201.3 188.7 191.7 • Group gross profit on sales amounted to PLN 254.7m in 4Q24, +16.5% 161.0 149.4 167.0 138.1 137.3 120.6 YoY. 100.8 88.2 93.2 89.5 94.1 73.8 82.1 • In 4Q24 gross profit on sales in apparel segmen
Slide 23: Sizeable EBIT growths
Sizeable EBIT growths MONTHLY OPERATING COSTS PER M2 (PLN, IAS17) 1,241 1,095 • Group operating costs/m2 (IAS17) reached in 4Q24 PLN 1,241/m2 per 1,041 950 943 1,020 1,029 880 920 347 month, up 13.4% YoY. 310 329 279 273 237 259 251 242 • Costs of stores at PLN 894/m2 (+16.8% YoY, growth mostly due
Slide 24: Higher EBIT, stable YoY net profit
Higher EBIT, stable YoY net profit PLN m, IFRS16 4Q23 4Q24 YoY NET PROFIT (LOSS) BY SEGMENTS Revenues 402.3 444.6 10.5% (PLN m, IFRS16) Gross profit on sales 218.7 254.7 16.5% Gross profit on sales margin 54.4% 57.3% 2.9pp. 47.3 47.7 49.9 SG&A costs 169.5 .185.6 9.5% 47.2 EBIT 44.4 70.6 59.1% 28.2 3
Slide 25: Higher YoY operating income in 2024
Higher YoY operating income in 2024 PLN m, IFRS16 2023 2024 YoY Revenues 1,301.7 1,375.0 5.6% Gross profit on sales 705.8 762.8 8.1% Gross profit on sales margin 54.2% 55.5% 1.3pp. SG&A costs 586.0 639.9 9.2% EBIT 112.1 126.8 13.2% EBIT margin 8.6% 9.2% 0.6pp. Net financial activity 15.1 -14.9 N/M R
Slide 26: Growing inventory in 4Q24
Growing inventory in 4Q24 CHANGE IN INVENTORIES (PLN m) 734.2 110.6 • Group inventory grew 30.4% YoY. Inventories/m2 at the end of 4Q24 at 563.0 60.6 PLN 14,515, +35.3% YoY. 481.3 • Apparel segment inventories increased by 31.5% YoY, while inventories/m2 370.6 amounted PLN 7,001, up 43.7% YoY, at th
Slide 27: Sizeable QoQ debt reduction
Sizeable QoQ debt reduction NET DEBT/(NET CASH) VS NET DEBT/EBITDA (PLN m, IAS17 plus reverse factoring) 1.1 2.0 120.0 0.5 126.2 1.5 • Group’s net debt under IAS17 at PLN 59.3m at the end of 4Q24 vs 0.2 0.4 100.0 0.1 0.4 PLN 38.5m net cash in 4Q23. Finance leases under IFRS16 at 1.0 -0.3 0.0 80.0 -0
Slide 28: 2025+ outlook
VRG [ O 2025+ outlook
Slide 29: 2025 target: Vistula brand repositioning
2025 target: Vistula brand repositioning • new long-term marketing strategy and visual identification by the end of 1H25 • increasing brand recognition, improving off- line and on-line sales, strengthening customer loyalty • regaining the aspirational brand image Confirmation of Vistula's status as
Slide 30: Bytom – on the right path
Bytom – on the right path 2025 target: strengthening the brands’ image Bytom will remain a brand exclusively for men, representing the • extensive marketing activities, style of traditional men's including the first TV campaign tailoring based on in the brand's history discreet and subdued • image c
Slide 31: Wólczanka brand – the shirts' expert
Wólczanka brand – the shirts’ expert 2025 target: • strengthening the image of an expert in shirts for women and men, Positive results for • focus on traditional offer of 4Q24 showed that shirts for men and women closing down of supplemented with a range of Wólczanka Well and sweaters, polo shirts,
Slide 32: W.KRUK in 2025
W.KRUK in 2025 • continued floorspace development in Poland and in Hungary, • broad offer of own jewellery supported by novelties, e.g. • KOI collection – silver and gold jewellery and scarves inspired by the colors of KOI fish, a symbol of courage, harmony and perseverance, • ambassadors’ collectio
Slide 33: Celebrations – an important element of revenues in 2Q25 and 3Q25
Celebrations – an important element of revenues in 2Q25 and 3Q25 Mother’s Day, Father’s Day Weddings and marriages Support for purchases of accessories from apparel brands as A key period for sales of formal well as jewellery and watches from collections – suits and shirts – and W.KRUK jewellery Chi
Slide 34: On-line 2025: benefits from previous year investments
On-line 2025: benefits from previous year investments Marketing New e-store Increased 2025 target Automation engine personalisation Development of AI- W.KRUK e-store on Obtaining a wide Improved sales supported tools new engine. range of efficiency and of implemented in communication on-line marketi
Slide 35: Group's floorspace in 2025
Apparel segment Jewellery segment Group’s floorspace in • c. 20% of planned annual • new own stores in 2025 capex Poland, expansion of the • the need to successively network of traditional 2024 2025 target YoY renovate stores stores, • development in Hungary stores 319 287 -32 Apparel segment m2 36,
Slide 36: 2025 targets
Zdjęcie do wymiany 2025 targets Revenue Growing gross Operating cost growth in both profit on sales control. segments. margin. Key improvement factors: • VRG S.A. brands’ collections tailored to the tastes of customers and counteracting traffic declines ➔ growing revenues per m2 • Gross profit on sa
Slide 37: VRG
<i oF o) VRG
Slide 38: Back-up
VRG [ Back-up
Slide 39: Vistula: executive summary
Vistula: executive summary Spring/Summer 2025 collection • The Vistula brand redefines the concept of elegance in its Spring/Summer 2025 collection. Created with important moments in mind, the “Tailored for the moments” campaign emphasizes that elegance is more than a classic suit – it is a consciou
Slide 40: Vistula: 2024 executive summary
Vistula: 2024 executive summary VISTULA BRAND REVENUES VISTULA BRAND EFFICIENCY (PLN m) 229.4 231.4 2023 2024 YoY 33.3 40.9 43.9 0.9% YoY Revenues (PLN/m2 per month) 1,057 1,105 4.5% 36.0 Gross profit margin (%) 56.5% 59.2% 2.7pp. 152.3 154.6 Cost of stores 494 547 10.8% (PLN/m2 per month) 2023 2024
Slide 41: Bytom: executive summary
Bytom: executive summary Spring/Summer 2025 collection • Let's celebrate important moments together is the slogan of the latest campaign, spoken by its narrator and at the same time the ambassador of the BYTOM brand - actor Marcin Dorociński. BYTOM takes customers on an emotional journey, thanks to
Slide 42: Bytom: 2024 executive summary
Bytom: 2024 executive summary BYTOM BRAND REVENUES BYTOM BRAND EFFICIENCY (PLN m) 190.2 2023 2024 YoY 177.3 35.4 33.0 Revenues (PLN/m2 per month) 1,063 1,216 14.4% 4.6 5.2 +7.3% YoY Gross profit margin (%) 58.1% 59.8% 1.7pp. 139.1 150.2 Cost of stores 525 583 11.1% (PLN/m2 per month) Store EBIT (PLN
Slide 43: Wólczanka: executive summary
Wólczanka: executive summary Spring/Summer 2025 collection • The key element of Wólczanka's offer for the Spring/Summer 2025 season are shirts - classic, formal and business - which meet the needs of a wide range of recipients. The brand directs its offer to all those looking for an elegant and func
Slide 44: Wólczanka: 2024 executive summary
Wólczanka: 2024 executive summary WÓLCZANKA BRAND REVENUES WÓLCZANKA BRAND EFFICIENCY (PLN m) 118.6 2023 2024 YoY 105.5 Revenues (PLN/m2 per month) 1,948 2,562 31.5% +12.3% YoY 60.2 46.3 Gross profit margin (%) 59.2% 61.6% 2.4pp. 10.4 9.0 Cost of stores 911 1,159 27.2% 48.9 49.3 (PLN/m2 per month) S
Slide 45: Deni Cler: executive summary
Deni Cler: executive summary Spring/Summer 2025 collection • The new collection "Milano Ti Amo" is synonymous with Italian style. Six capsules inspired by iconic places in Milan. • Teatro alla Scala & Galleria Vittorio Emanuele - Elegance and subtlety. The inspiration from La Scala theatre and the l
Slide 46: Deni Cler: 2024 executive summary
Deni Cler: 2024 executive summary DENI CLER BRAND REVENUES DENI CLER BRAND EFFICIENCY (PLN m) 57.2 55.4 2023 2024 YoY 6.4 -3.1% YoY 6.3 Revenues (PLN/m2 per month) 1,638 1,539 -6.0% 19.1 18.6 Gross profit margin (%) 63.0% 63.8% 0.8pp. Cost of stores 31.6 30.6 652 664 1.9% (PLN/m2 per month) Store EB
Slide 47: W.KRUK: executive summary
W.KRUK: executive summary Novelties in collections • A new chapter in the history of the FOLLOW collection – the jewellery line is joined by stylish accessories: handbags and sunglasses created in cooperation with W.KRUK ambassador Natalia Szroeder. W.KRUK continues the Follow collection advertising
Slide 48: W.KRUK: 2024 executive summary
W.KRUK: 2024 executive summary W.KRUK RETAIL REVENUES W.KRUK BRAND EFFICIENCY (PLN m) 759.9 702.6 2023 2024 YoY 51.5 41.2 50.4 57.5 Revenues (PLN/m2 per month) 4,610 4,574 -0.8% +8.2% YoY Gross profit margin (%) 52.5% 52.5% 0.0pp. 611.1 650.9 Cost of stores 1,169 1,252 7.0% (PLN/m2 per month) Store
Slide 49: Capital group's structure
Capital group’s structure VRG Companies included in the consolidated statements for 4Q24 Jewellery segment Apparel segment Other activity W.KRUK S.A. VRG S.A. VG Property sp. z o.o. parent company in liquidation Jewellery, watches, accessories Real estate Vistula, Wólczanka, Bytom WK 1840 HU Kft. DC
Slide 50: Continued optimisation of number of stores
Continued optimisation of number of stores Number of stores 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 total 383 382 368 359 358 350 346 331 322 319 Apparel segment franchise 119 116 104 92 84 78 75 67 66 67 total 142 142 137 136 135 132 126 119 119 116 Vistula franchise 61 61 55 51 47 45 43
Slide 51: Floorspace YoY
Floorspace YoY M2 floorspace 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 total 39,778 39,833 39,333 39,007 39,818 39,470 38,951 37,140 36,301 36,125 Apparel segment franchise 9,019 8,798 7,962 7,175 6,582 6,216 6,023 5,415 5,494 5,774 total 18,118 18,139 17,733 17,815 18,337 18,386 17,792 17,0
Slide 52: Own e-stores of five brands
Own e-stores of five brands ON-LINE SALES BY SEGMENTS (PLN m) 21.1 17.7 • We have own e-stores for all five retail brands. Our aim is to develop 12.7 9.7 on-line stores of own brands (monoshops). 10.0 10.7 7.6 7.7 40.9 8.2 46.1 49.7 • Revenues and costs of on-line stores are allocated directly to th
Slide 53: Higher costs/m2
Higher costs/m2 OPERATING COSTS MONTHLY/M2 (PLN, excl. IFRS16) • Differences in SG&A costs/ m2 between segments result from different 2,079 business models. 1,970 2,021 1,512 1,510 1,479 1,584 1,593 1,367 • Jewellery segment is characterised by higher revenues and costs/m2 than these of the apparel
Slide 54: Reduction in off-line marketing expenses
Reduction in off-line marketing expenses GROUP OFF-LINE MARKETING COSTS BY SEGMENTS (PLN m) • Off-line marketing costs are part of group selling costs. 9.5 10.2 11.3 • These encompass recurring advertising spending (catalogues, photoshoots) and nationwide marketing campaigns in editorial, internet 3
Slide 55: Historical quarterly results, IFRS16
Historical quarterly results, IFRS16 PLN m 1Q23 1Q24 YoY 2Q23 2Q24 YoY 3Q23 3Q24 YoY 4Q23 4Q24 YoY Revenues 267.0 278.2 4.2% 335.3 340.8 1.6% 297.1 311.5 4.8% 402.3 444.6 10.5% Gross profit on sales 137.3 149.4 8.8% 188.7 191.7 1.6% 161.0 167.0 3.7% 218.7 254.7 16.5% Gross profit on sales margin 51.
Slide 56: Results under IAS17
Results under IAS17 PLN m, IAS17 4Q23 4Q24 YoY 2023 2024 YoY Revenues 402.3 444.6 10.5% 1,301.7 1,375.0 5.6% Gross profit on sales 218.7 254.7 16.5% 705.8 762.8 8.1% Gross profit on sales margin 54.4% 57.3% 2.9pp. 54.2% 55.5% 1.3pp. SG&A costs 172.8 188.2 8.9% 601.1 649.3 8.0% Net other operating li
Slide 57: Capex supports development
Capex supports development CAPEX VS. NET DEBT/EBITDA 0.4 5 -0.3 14 0.4 0.5 -0.3 0.0 4 0.1 12 10 0.2 1.1 3 12.4 • Capital expenditure in 4Q24 amounted to PLN 13.9m, fall by 14.4 8.9 13.8 8 11.9 3.7% YoY. 2 6 11.6 6.7 1 4 8.0 10.9 • Capex focused on new stores and modernizations, both in the 0 apparel
Slide 58: FX risk exposure
FX risk exposure PURCHASES BY CURRENCIES (PLN m) CHF, 18% CHF, 22% USD, 26% USD, 31% • FX risk is sizeable for the capital group, thus it is being hedged since 2Q16. Hedging only relates to the apparel segment. 2023 2024 • The group is a beneficiary of strengthening of zloty versus foreign EUR, 18%
Slide 59: Growing net debt
Growing net debt PLN m 4Q23 2Q24 4Q24 Long-term debt 2.4 2.2 1.8 • Interest bearing indebtedness includes: bank loans, finance leases and Bank loans 0.0 0.0 0.0 reverse factoring. • Bank loans include: overdrafts and investment bank loans. Bank loan Finance leases 2.4 2.2 1.8 collateral comprises of
Slide 60: Shareholder structure
Shareholder structure Other free- float SHAREHOLDER STRUCTURE AS AT 24.04.2025 (SHARE IN EQUITY AND VOTES) 19.69% Number of Shareholders' % share agreement shares/votes Santander 41.45% TFI 1. Shareholders' agreement 97,183,229 41.45% 5.44% 2. PZU OFE and DFE 45,589,125 19.44% 3. NN OFE 32,750,000 1
Slide 61: Glossary
Glossary Idea Definition Apparel segment Revenues from brands: Vistula, Wólczanka, Bytom, Deni Cler and wholesale segment, B2B and processing (until VI.2023). Jewellery segment Retail revenues of W.KRUK brand and other revenues (including B2B). Casual Revenues including the following assortment: jac
Slide 62: Thank you
Thank you VRG S.A. Pilotów 10 St., 31-462 Cracow Investor Relations e-mail: relacjeinwestorskie@vrg.pl tel. +48 12 656 18 32 faks + 48 12 656 50 98 Press office VRG S.A. e-mail: sekretariat@vrg.pl e-mail: biuroprasowe@vrg.pl