Slide 1: 1Q25 results presentation
1Q25 results presentation A MODERN GROUP WITH TRADITIONS May 23, 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: Continued good performance in a challenging environment
Continued good performance in a challenging environment Key trends in 5 months of 2025 • good reception of new collections of VRG S.A. apparel brands, • return of customers to formal wear, • favourable dynamics of jewellery sales, • continued cooling of watches sales, • Easter arrangement had a nega
Slide 5: Positive dynamics in both segments in most of the last months
Positive dynamics in both segments in most of the last 12 months 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 sector and supported by the development of the retail 20% 20% floorspace. 16.2%
Slide 6: More favorable on-line dynamics than off-line in 1Q25
More favorable on-line dynamics than off-line in 1Q25 Stores Positive sales dynamics in traditional stores in most REVENUE DYNAMICS of the last 12 months. (PLN m) 30% 48.3% 50% 41.7% 25% 40% Group 32.2% More favourable on-line 20% 40.5% 30% than off-line dynamics in 1Q25. 15% 15.3% 16.4% 11.8% 11.8%
Slide 7: Continued Group floorspace optimisation
Continued Group floorspace optimisation GROUP FLOORSPACE CHANGE YOY GROUP FLOORSPACE CHANGE YOY (ths m2) (ths m2) 7.9 -2.0 -1.4 -1.7 +0.1 +1.3 -2.9 7.0 -0.9 52.4 48.6 44.5 41.6 -5.0 1Q24 VST BTM WLC DCG W.KRUK 1Q25 1Q24 Own stores Franchise stores 1Q25 • The group’s floorspace came in at 48.6 thousa
Slide 8: Performance by brands
VRG [ O 2. Performance by brands
Slide 9: Vistula: double-digit YoY on-line growth in 1Q25
Vistula: double-digit YoY on-line growth in 1Q25 VISTULA BRAND REVENUES (PLN m) 67.0 70.2 63.0 63.7 6.0 14.2 51.8 7.7 50.7 50.0 47.6 14.2 13.3 46.9 7.0 11.2 9.6 6.9 10.6 8.7 11.3 10.1 10.2 9.0 8.1 5.9 7.0 46.7 44.8 46.4 34.7 39.1 33.8 32.8 31.7 29.7 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Own s
Slide 10: Vistula: executive summary 1Q25
Vistula: executive summary 1Q25 VISTULA BRAND REVENUES VISTULA BRAND EFFICIENCY (PLN m) 50.0 46.9 1Q24 1Q25 YoY 10.2 +6.6% YoY 11.3 Revenues (PLN/m2 per month) 871 1,026 17.9% 5.9 7.0 Gross profit margin (%) 55.1% 56.3% 1.2pp. 29.7 32.8 Cost of stores 512 581 13.4% (PLN/m2 per month) 1Q24 1Q25 Store
Slide 11: Bytom: dynamic revenue growth continues
Bytom: dynamic revenue growth continues BYTOM BRAND REVENUES (PLN m) 59.6 51.6 52.8 54.2 12.9 6.9 7.2 38.9 13.3 1.4 41.9 1.5 39.4 1.8 33.9 1.1 34.6 7.3 6.0 1.0 9.6 6.8 1.2 8.0 1.0 1.0 0.7 42.9 45.5 45.2 38.4 31.7 33.6 28.9 26.1 25.8 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Own stores Franchise s
Slide 12: Bytom: 1Q25 executive summary
Bytom: 1Q25 executive summary BYTOM BRAND REVENUES BYTOM BRAND EFFICIENCY (PLN m) 39.4 1Q24 1Q25 YoY 34.6 9.6 Revenues (PLN/m2 per month) 856 1,084 26.6% 8.0 +14.1% YoY 1.0 0.7 Gross profit margin (%) 54.9% 58.4% 3.4pp. 25.8 28.9 Cost of stores 555 611 10.0% (PLN/m2 per month) Store EBIT (PLN m) -3.
Slide 13: Wólczanka: sales impacted by changes in offer and floorspace
Wólczanka: sales impacted by changes in offer and floorspace WÓLCZANKA BRAND REVENUES (PLN m) 38.8 35.9 27.7 30.1 25.2 24.5 20.8 24.4 21.7 17.6 20.3 14.0 10.1 13.4 12.0 14.1 11.3 3.4 7.3 2.9 2.7 2.6 2.2 1.8 2.0 2.0 1.6 14.2 15.4 13.6 15.2 8.4 10.8 10.0 10.5 8.7 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q2
Slide 14: Wólczanka: executive summary 1Q25
Wólczanka: executive summary 1Q25 WÓLCZANKA BRAND EFFICIENCY WÓLCZANKA BRAND EFFICIENCY (PLN m) 25.2 24.4 1Q24 1Q25 YoY Revenues (PLN/m2 per month) 1,761 2,633 49.5% 13.4 14.1 -3.4% YoY Gross profit margin (%) 56.5% 60.9% 4.4pp. 1.8 1.6 Cost of stores 983 1,236 25.8% 10.0 8.7 (PLN/m2 per month) Stor
Slide 15: Deni Cler: stable YoY revenues in 1Q25
Deni Cler: stable YoY revenues in 1Q25 DENI CLER BRAND REVENUES (PLN m) 17.2 17.0 14.2 13.5 13.7 13.6 1.8 13.0 1.8 12.4 11.8 1.7 1.6 1.9 1.6 5.5 1.3 6.1 1.3 1.2 4.6 4.7 4.1 4.5 4.4 4.3 4.1 9.9 9.1 7.9 7.2 6.6 7.7 7.3 6.4 7.6 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Own stores Franchise stores +
Slide 16: Deni Cler: 1Q25 executive summary
Deni Cler: 1Q25 executive summary DENI CLER BRAND REVENUES DENI CLER BRAND REVENUES (PLN m) 13.7 1Q24 1Q25 YoY 13.6 1.9 1.6 Revenues (PLN/m2 per month) 1,553 1,542 -0.8% -0.2% 4.1 YoY 4.5 Gross profit margin (%) 60.9% 60.1% -0.8pp. Cost of stores 7.7 7.6 650 675 3.9% (PLN/m2 per month) Store EBIT (P
Slide 17: W.KRUK: continued revenue growth in 1Q25
W.KRUK: continued revenue growth in 1Q25 W.KRUK RETAIL REVENUES (PLN m) 247.8 225.8 21.1 17.7 19.7 166.1 169.3 17.7 177.4 179.7 154.9 10.0 10.7 163.3 141.5 7.7 8.2 11.7 13.8 13.0 11.4 11.8 9.7 11.8 7.6 11.0 9.2 190.5 207.0 146.5 149.4 153.6 156.1 140.0 124.6 134.2 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 18: W.KRUK: 1Q25 executive summary
W.KRUK: 1Q25 executive summary W.KRUK RETAIL REVENUES W.KRUK BRAND EFFICIENCY (PLN m) 163.3 154.9 1Q24 1Q25 YoY 11.4 9.7 11.8 11.0 Revenues (PLN/m2 per month) 3,924 3,765 -4.1% +5.4% YoY Gross profit margin (%) 52.5% 52.0% -0.5pp. 134.2 140.0 Cost of stores 1,130 1,198 6.0% (PLN/m2 per month) Store
Slide 19: Group results
VRG O Group results
Slide 20: 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 1Q25 amounted to PLN 293.6m (+5.5% YoY), due to 335.3 340.8 311.5 growth in both segments. 297.1 278.2 293.6 267.0 256.4 229.3 167.8 178.1 • In 1Q25, revenues of the apparel segment were 6.3% higher YoY,
Slide 21: Growth in gross profit on sales
Growth in gross profit on sales GROSS PROFIT ON SALES (PLN m) 254.7 218.7 188.7 191.7 • Group gross profit on sales amounted to PLN 159.3m in 1Q25, +6.6% 137.3 161.0 149.4 167.0 138.1 159.3 YoY. 88.2 120.6 93.2 73.8 89.5 82.1 94.1 85.1 • In 1Q25 gross profit on sales in apparel segment reached PLN 7
Slide 22: Operating profit in seasonally weakest quarter
Operating profit in seasonally weakest quarter MONTHLY OPERATING COSTS PER M2 (PLN, IAS17) 1,241 1,095 1,029 1,067 • Group operating costs/m2 (IAS17) reached in 1Q25 PLN 1,067/m2 per 950 943 1,020 month, up 13.1% YoY. 880 920 347 329 279 273 281 237 259 251 242 • Costs of stores at PLN 785/m2 (+12.1
Slide 23: Higher YoY EBIT and net profit
Higher YoY EBIT and net profit PLN m, IFRS16 1Q24 1Q25 YoY NET PROFIT (LOSS) BY SEGMENTS Revenues 278.2 293.6 5,5% (PLN m, IFRS16) Gross profit on sales 149.4 159.3 6,6% 70.0 60.0 Gross profit on sales margin 53.7% 54.3% 0,6pp. 49.9 47.7 47.2 SG&A costs 145.5 154.5 6,2% 50.0 EBIT 2.7 3.7 37,9% 28.2
Slide 24: Growing demand for working capital
Growing demand for working capital CHANGE IN INVENTORIES (PLN m) 117.0 754.5 • Group inventory grew 27.7% YoY. Inventories/m2 at the end of 1Q25 at 590.7 46.8 PLN 15,522, +37.7% YoY. 508.7 • Apparel segment inventories increased by 23.5% YoY, while inventories/m2 391.7 amounted PLN 7,244, up 41.9% Y
Slide 25: Seasonal growth in indebtedness
Seasonal growth in indebtedness NET DEBT/(NET CASH) VS NET DEBT/EBITDA (PLN m, IAS17 plus reverse factoring) 1.1 1.0 2.0 140.0 120.0 0.5 144.7 1.5 • Group’s net debt under IAS17 at PLN 144.7m at the end of 1Q25 vs PLN 0.2 0.1 0.4 0.4 50.8m net cash in 1Q24. Finance leases under IFRS16 at PLN 302.8m
Slide 26: 2025+ outlook
VRG Ac © je) _ > ce) + wn Nl ]) N
Slide 27: Sources of growth in the coming months
Sources of growth in the coming months On-line Off-line • micro-personalisation of the • activities aimed at increasing product offer for customers, traffic in traditional stores, • use of sales support tools • communication using both implemented in the Group’s traditional and digital media, e-shop
Slide 28: Actions increasing traffic in stores
Actions increasing traffic in stores Drive to store Marketing mix focused on Drive to store campaigns. In the Bytom brand, the use of a brand ambassador – actor Marcin Dorociński TV advertising and outdoor Refreshed Wólczanka stores Stronger YoY use of outdoor advertising for The new concept of the
Slide 29: Capital Group close to its clients
Capital Group close to its clients Emphasis on customer service Meetings with customers in stores Work on customer experience in Building relationships with VIP stores – quality of service and its clients through intimate meetings personalization (tailor-made in the related to the luxury offer offer
Slide 30: Offer development
Offer development A shirt for graduation Promotion of Wólczanka brand shirts to a young group of customers facing exams. Modern materials in shirts Novelties in W.KRUK portfolio The offer has been extended by: Offer of modern materials ensuring comfort of use, including light and airy linen fabric w
Slide 31: Group floorspace in 2025
Group floorspace in 2025 2024 2025 target YoY stores 319 287 -32 Apparel segment m2 36,125 33,127 -8% stores 177 197 +20 Jewellery segment m2 14,456 16,240 +12% stores 496 484 -12 Total m2 50,582 49,367 -2% Apparel Jewellery Planned capital expenditures in 2025 segment segment at the level of c. PLN
Slide 32: 2025 targets
2025 targets Revenue growth in both Growing gross profit on sales Operating cost control. segments. margin. Improved profitability in the apparel segment and increased operating profit in the jewellery segment. Key improvement factors: • VRG S.A. brands’ collections tailored to the tastes of custome
Slide 33: Management board recommends no dividend payment
Management board recommends no dividend payment • Key reasons for departing from the dividend policy with respect to the distribution of profit for 2024: • the desire to provide the Company with the capital necessary for further development of its operations, • the desire to implement planned invest
Slide 34: Q&A
Q&A
Slide 35: Back-up
Back-up
Slide 36: 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 37: Bytom: executive summary
Bytom: executive summary Spring/Summer 2025 collection • The first quarter of the year was a special moment for the brand – the official start of the celebrations of its 80th anniversary. The inauguration of the anniversary was a prestigious cooperation with the Cracow Philharmonic, which gave the w
Slide 38: Wólczanka: executive summary
Wólczanka: executive summary Spring/Summer 2025 collection • Wólczanka brand started the year by communicating a new campaign called The Perfect Shirt for the Office. It included both off-line and on-line activities. As part of the campaign, we promoted the PREMIUM shirt line from the renowned Itali
Slide 39: 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 40: W.KRUK: executive summary
W.KRUK: executive summary Novelties in collections • In the first quarter, two original jewellery collections were launched: • Tenderness, a new edition of the collection, which is a subtle story about relationships and closeness. The main motif of the jewellery is the heart. The Tenderness collecti
Slide 41: Capital group's structure
Capital group’s structure VRG Companies included in the consolidated statements for 1Q25 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 42: Continued optimisation of number of stores
Continued optimisation of number of stores Number of stores 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 total 382 368 359 358 350 346 331 322 319 297 Apparel segment franchise 116 104 92 84 78 75 67 66 67 62 total 142 137 136 135 132 126 119 119 116 103 Vistula franchise 61 55 51 47 45 43 37 3
Slide 43: Floorspace YoY
Floorspace YoY M2 floorspace 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 total 39,833 39,333 39,007 39,818 39,470 38,951 37,140 36,301 36,125 33,922 Apparel segment franchise 8,798 7,962 7,175 6,582 6,216 6,023 5,415 5,494 5,774 5,212 total 18,139 17,733 17,815 18,337 18,386 17,792 17,051 17,4
Slide 44: 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 11.4 on-line stores of own brands (monoshops). 9.7 10.0 10.7 7.6 7.7 8.2 46.1 49.7 • Revenues and costs of on-line stores are allocated directly to the bra
Slide 45: Higher costs/m2
Higher costs/m2 OPERATING COSTS MONTHLY/M2 (PLN, excl. IFRS16) • Differences in SG&A costs/ m2 between segments result from different 2,021 2,079 business models. 1,512 1,510 1,479 1,584 1,593 1,564 1,367 • Jewellery segment is characterised by higher revenues and costs/m2 than 906 these of the appa
Slide 46: Increase in image marketing expenses
Increase in image marketing expenses GROUP IMAGE MARKETING COSTS BY SEGMENTS (PLN m) • Off-line marketing costs are part of group selling costs. 10.2 • These encompass recurring advertising spending (catalogues, 11.3 photoshoots) and nationwide marketing campaigns in editorial, internet 3.4 3.1 3.5
Slide 47: Historical quarterly results, IFRS16
Historical quarterly results, IFRS16 PLN m 2Q23 2Q24 YoY 3Q23 3Q24 YoY 4Q23 4Q24 YoY 1Q24 1Q25 YoY Revenues 335.3 340.8 1.6% 297.1 311.5 4.8% 402.3 444.6 10.5% 278.2 293.6 5.5% Gross profit on sales 188.7 191.7 1.6% 161.0 167.0 3.7% 218.7 254.7 16.5% 149.4 159.3 6.6% Gross profit on sales margin 56.
Slide 48: Results under IAS17
Results under IAS17 PLN m, IAS17 1Q24 1Q25 YoY Revenues 278.2 293.6 5.5% Gross profit on sales 149.4 159.3 6.6% Gross profit on sales margin 53.7% 54.3% 0.6pp. SG&A costs 147.9 156.3 5.7% Net other operating line -1.3 -1.4 N/M EBIT 0.2 1.6 533.8% EBIT margin 0.1% 0.5% 0.4pp. Net financial line -0.3
Slide 49: Capex supports development
Capex supports development CAPEX VS. NET DEBT/EBITDA 0.4 5 -0.3 14 0.4 0.5 0.0 4 0.1 12 10 0.2 1.1 1.0 3 12.4 • Capital expenditure in 1Q25 amounted to PLN 9.0m, fall by 14.4 8.9 13.8 9.0 8 11.9 24.1% YoY. 2 6 6.7 1 4 8.0 10.9 • Capex focused on new stores and modernizations, mainly in the 0 jewelle
Slide 50: FX risk exposure
FX risk exposure PURCHASES BY CURRENCIES (PLN m) CHF, 18% CHF, 22% USD, 24% USD, 29% • FX risk is sizeable for the capital group, thus it is being hedged since 2Q16. Hedging only relates to the apparel segment. 1Q24 1Q25 • The group is a beneficiary of strengthening of zloty versus foreign EUR, 20%
Slide 51: Growing net debt
Growing net debt PLN m 1Q24 4Q24 1Q25 Long-term debt 2.3 1.8 1.7 • Interest bearing indebtedness includes: bank loans, finance leases and reverse factoring. Bank loans 0.0 0.0 0.0 • Bank loans include: overdrafts and investment bank loans. Bank loan collateral comprises of: a floating charge on inve
Slide 52: Shareholder structure
Shareholder structure SHAREHOLDER STRUCTURE AS AT 22.05.2025 (SHARE IN EQUITY AND VOTES) Other free-float 25.14% Shareholders' Number of agreement % share 41.45% shares/votes 1. Shareholders' agreement 97,183,229 41.45% 2. PZU OFE and DFE 45,589,125 19.44% 3. NN OFE 32,750,000 13.97% NN OFE 13.97% 4
Slide 53: 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 54: 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