Action S.a. · GPW:ACT

Action — FY2016 Earnings Presentation

20 slides from Action's earnings presentation, Dec 10, 2017

1. Slide 1: Results Presentation 2016

   Va\ACTION® RESULTS PRESENTATION 2016

2. Slide 2: Initiation of restructuring proceedings

   Initiation of restructuring proceedings

3. Slide 3: Negative market reactions

   Negative market reactions Restrictions on Lack of Contracts access to financing Insurances Termination Unequal Treatment Contracts Suspicion with respect of by market players Freeze subsidiaries and own brands 3

4. Slide 4: Financial results

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5. Slide 5: Selected consolidated financial data of ACTION S.A.

   Selected consolidated financial data of ACTION S.A. 2015 2016 IVQ 2015 IVQ 2016 Revenues from sales of 4 685 978 2 585 059 1 396 345 483 992 products Gross profit 208 159 95 120 55 916 - 8 878 Cost of sales - 145 546 - 116 653 - 44 019 - 26 490 and marketing General administrative - 27 014 - 27 049

6. Slide 6: Selected consolidated financial data of ACTION Capital Group

   Selected consolidated financial data of ACTION Capital Group ROK 2015 ROK 2016 IVQ 2015 IVQ 2016 Revenues from sales of 5 312 134 3 164 837 1 580 801 604 024 products Gross profit 288 284 169 900 80 386 7 315 Cost of sales - 217 829 - 190 111 - 65 085 - 44 423 and marketing General administrative -

7. Slide 7: Financial result - factors

   Financial result - factors Costs of:  Financial reserves created for potential liabilities arising from tax decisions issued in 2016 and financial reserves created for loan repaymnet guarantees for Lapado GmbH  Impairment of financial assets, mainly in Sferis Sp. z. o.o. and Lapado GmbH  Revaluat

8. Slide 8: Cash Flow

   Cash Flow ACTION GK ACTION 2016 2016 Net cash flows from operating activities 113 169 104 494 Net cash flows from investing activities 61 - 3 897 Net cash flows from financing activities 1 012 13 723 8

9. Slide 9: Cash conversion cycle

   Cash conversion cycle ACTION GK ACTION 2016 2016 Warehouse rotation 37 36 Incoming receivables 64 53 Obligtions repayment 75 64 Cash conversion 26 26 9

10. Slide 10: Restructuring Proceedings in ACTION S.A.

    „In the fast-growing world, the only strategy that is doomed on failure is to not take risks.” – Mark Zuckerberg, Facebook Restructuring Proceedings in ACTION S.A.

11. Slide 11: Develop a new strategy

    Develop a new strategy GROWTH MARKET AND INDUSTRIAL ANALYSIS AS A POINT TO EXIT STRATEGY Creating a concept for the new Business Strategy of Action S.A. Transforming the new strategy into a restructuring plan Commission of restructuring processes:  Reduce costs  Internal consolidation  Improving

12. Slide 12: New strategy implementation

    New strategy implementation INDEPENDENCE AND MARKET PRICE AS A NEW BASE OF BUSINESS Independence from producers:  Restore control over sales channels  Offering market price  No risk of concentration Realization of sales with limited support from manufacturers Extension of the offer for products f

13. Slide 13: Negative external events

    Negative external events 3 COOPERATING BANKS 1BANKRUPTCY OF 3 creditors appointed They change their credit SUBSIDIARY COMPANY by the Court policy against Action SFK declares bankruptcy as Refuse to participate as contrary to the a result of unfavorable a member of the board restructuring law decisio

14. Slide 14: Restructuring Proceeding (01.08.2016 – 31.12.2016)

    Restructuring Proceeding (01.08.2016 – 31.12.2016) Stop the outflow of customers Stockroom sale without support from manufacturers Negotiations :  With customers about shopping  With suppliers for clearance of sell out products Index cleaning - restructuring of the offer 14

15. Slide 15: Achievements 2016

    „What is dangerous in business - is not to develop” – Jeff Bezos, Amazon Achievements 2016

16. Slide 16: ACTION Europe

    ACTION Europe ACTION EUROPE AS A TEST OF NEW BUSINESS STRATEGY OF ACTION S.A. Positive financial result Positive financial result of more than 340 thousand euro Increase margin by 0,5% Consequent optimization of internal processes  Control processes  Logistics processes  Strong reduction of costs

17. Slide 17: Sferis

    Sferis E-COMMERCE AS ONE OF NEW PILLOWS OF THE BUSINESS MODEL OF ACTION GROUP Strong development of e-commerce platform :  Increase conversion factor y / y by 54%  Increase the number of sold products y / y by 50%  Increase the number of orders y / y by 56% Successive expansion of the product off

18. Slide 18: Sferis

    Sferis Direction for 2017: DEVELOPMENT IN THE CONCEPT in OMNICHANNEL CALL CENTER HIGH STANDARDS OF CUSTOMER SERVICE VARIOUS OFFER WIDE AVAILABILITY OF online shop Stationary shop PRODUCTS 18

19. Slide 19: Summary

    Summary  Year 2016 is a time huge challenges  Despite the accumulation of unfavorable external factors, we consistently pursue business  Our goal after the restructuring period is become even more competitive company 19

20. Slide 20: Thank you for your attention

    Va\ACTION® Thank you for your attention

Action — FY2016 Earnings Presentation on 6ix