Slide 1: Results presentation Q3 2017
Re s ul t s pr e s en t a t ion Q3 2017
Slide 2: Legal disclaimer
02 L E G A L DI S C L A IME R Q u a r t e r l y r e s u l t s p r e s e n t a t i o n Q 3 2 0 17 This presentation (Presentation) has been prepared by CCC S.A. based in Polkowice („CCC”). The presentation is for information only and its purpose is to present selected data on CCC Capital Group (CCC G
Slide 3: Business summary
BU S INE S S S UMM A RY
Slide 4: CCC Group in Q3 2017
04 C C C G R OUP IN Q 3 2 017 Business summary +25,5% LFL IN BRICK AND MORTAR STORES 16 COUNTRIES „OFFLINE” 10 COUNTRIES „ONLINE” 897 STORES GROUP’S ONLINE +48,5% SALES GROWTH +102% SALES GROWTH +9% YOY
Slide 5: Key developments in Q3
05 K E Y DE V E L OP ME N T S IN Q 3 Business summary ROLLOUT COMMENCEMENT PUBLIC OFFERING OF NEW OF DIGITAL CONCEPT TRANSFOR- STORES MATION 07.2017 KICKOFF OF PROJECTS 07.09.2017 RAISING 530M PLN 20 NEW FORMAT STORES AIMED AT FULL INTEGRATION OF FOR FURTHER DYNAMIC GROWTH OF CCC GROUP AS OF 30.09.2
Slide 6: Almost 900 stores across Europe
06 A L M O S T 9 0 0 S T OR E S AC R O S S E UR OP E Business summary Estonia 1 Latvia 7 Russia 15 Lithuania 3 Poland 441 Germany 77 Czech Rep. 85 Ukraine 6 Slovakia 47 Own Stores Austria 44 Franchise Stores Hungary 69 eobuwie (online store) Slovenia 13 Romania 52 Croatia 22 STORE COUNT Q3 2016 Q3 2
Slide 7: Dynamic floorspace growth
07 DY N A MIC F L O OR S PAC E G R OW T H Business summary NEW FLOORSPACE SOURCES, FLOORSPACE GROWTH BY COUNTRY, YEAR TO DATE [k sqm] YEAR TO DATE [k sqm] 550 39 503 500 459 13 450 –8 Poland 15,9 +7% YTD 400 350 Abroad Abroad 54,7% Russia 3,8 +60% YTD 53,8% 300 +10% YTD 250 Hungary 3,7 +10% YTD +44
Slide 8: Continuing LFL growth
08 C ON T INUIN G L F L G R OW T H Business summary QUARTERLY LFL SALES BY SQM BY REGION [PLN/MONTH] 35% 30,3% CCC Poland 30% 25,5% CCC Group 25% 24,9% CCC CEE Q3 2016 Q3 2017 YOY 20% 15% Poland 547,4 689,3 25,9% 12,5% CCC WE 10% CEE 418,0 505,3 20,9% 5% WE 367,9 408,9 11,2% 0% CCC retail 475,9 576,
Slide 9: Sales growing in every segment
09 S A L E S G R OW IN G IN E V E RY S E G ME N T Business summary BREAKDOWN OF SALES GROWTH IN Q3 HISTORICAL BREAKDOWN OF SALES [MLN PLN] BY SEGMENT 11% —> 15% — share of eobuwie 74 24 987 1121 1125 62 31 987 131 865 665 720 665 535 Q3 2016 Poland CEE WE e-comm. others * Q3 2017 Q1 16 Q2 16 Q3 16 Q
Slide 10: Financial results
F IN A NCI A L R E S ULT S
Slide 11: High gross profit on sales margin
11 Financial results HIG H G R O S S P R OF I T ON S A L E S M A R G IN QUARTERLY GROSS PROFIT ON SALES MARGIN GROSS PROFIT ON SALES MARGIN IN Q3 2017 BY SEGMENT [%] [MLN PLN] wholesale 2017 – 3% 60% Retail eobuwie 54,0% 53,9% 2017 – 12% 50% 51,9% CCC Group 50,4% 51,0% 51,0% 48,7% 40% eobuwie 30% Wh
Slide 12: Operation costs structure
12 OP E R AT ION C O S T S S T R UC T UR E Financial results QUARTERLY SG&A COSTS STORE COSTS / SQM [MLN PLN] 700 653 629 620 599 598 587 443 600 567 405 396 24 366 18 500 340 29 22 114 318 36 107 400 279 20 100 87 24 81 61 300 51 305 200 267 257 280 223 237 204 100 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q
Slide 13: High EBITDA profit
13 HIG H E BI T DA P R OF I T Financial results GROUP’S QUARTERLY EBITDA – GROWTH BREAKDOWN GROUP’S EBITDA IN Q3 2017 [MLN PLN] [MLN PLN] 6 82 44 -3 eobuwie Q3 2017 – 21,4% 47 -12 Rest of CCC Group Q3 2017 – 78,6% EBITDA EBITDA Q3 2016 unallocated retail wholesale e-commerce Q3 2017 Traditional reta
Slide 14: Net profit four times higher than in Q3 2016
14 NE T P R OF I T F OUR T IME S HIG HE R T H A N IN T HE T HIR D QUA R T E R OF 2 016 Financial results mln PLN Q3 2016 Q3 2017 YOY Sales 664,7 987,2 48,5% Gross profit on sales 339,3 503,3 48,3% High gross profit on sales margin sustained Gross profit on sales margin 51,0% 51,0% — (significant gro
Slide 15: Profit and loss statement for nine months of 2017
15 P R OF I T A ND L O S S S TAT E ME N T F OR NINE MON T H S OF 2 017 Financial results mln PLN 9M 2016 9M 2017 YOY Sales 2 059,2 2 833,5 37,6% Extraordinary sales dynamics results in Gross profit on sales 1 073,1 1 441,5 34,3% significant growth of gross profit on sales Gross profit on sales margi
Slide 16: Inventory – investment in future sales
16 IN V E N T ORY – IN V E S T ME N T IN F U T UR E S A L E S Financial results INVENTORY [MLN PLN] 2000 1 509 1500 1 360 1 285 202 132 142 1020 887 982 1000 842 96 89 720 54 732 66 598 385 368 583 500 469 508 545 587 465 496 307 341 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 * Values
Slide 17: Indebtedness under control
17 INDE B T E DNE S S UNDE R C ON T R OL Financial results NET DEBT NET DEBT / EBITDA * [MLN PLN] 1600 2,6 1200 1139 988 941 904 800 747 674 652 2,2 400 0 -400 3Q16 3Q17 -800 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Cash Longterm debt Shortterm debt Net debt * annualised EBITDA Net de
Slide 18: Cash flows – the Group is ready for increased sales
18 CA S H F L OW S – T HE G R OUP I S R E A DY F OR INC R E A S E D S A L E S Financial results WORKING CAPITAL * QUARTERLY CASH FLOWS [MLN PLN] [MLN PLN] 111 104 125 -35 -89 -30 -45 -982 -88 -91 -1509 -189 3Q 2016 3Q 2017 Q3 16 Q3 17 *At the end of the period Inventory Receivables Payables Operatio
Slide 19: Plans for 2017 and 2018
P L A N S F OR 2 017 A ND 2 018
Slide 20: Continuation of dynamic floorspace growth
20 C ON T INUAT ION OF DY N A MIC F L OOR S PAC E G R OW T H P l a n s f o r 2 0 17 a n d 2 0 18 31.12.2016 31.12.2017 31.12.2018 k sqm YOY k sqm YOY k sqm YOY Poland 212 13,4% 250 17,9% CEE 124 22,5% 149 20,2% + >110.000 m² WE 82 65,3% 88 7,3% Others 40 28,6% 58 45,0% CCC Total 458 24,2% 545 19,0%
Slide 21: Further expansion in online channel
21 F UR T HE R E X PA N S ION IN ONL INE C H A NNE L P l a n s f o r 2 0 17 a n d 2 0 18 DEVELOPMENT INVESTMENT OBJECTIVES ACTIVITIES • 1 B PLN TURNOVER • BUILDING A NEW • A T LEAST THREE NEW MARKETS DISTRIBUTION CENTER BEFORE THE END OF 2018 • UPGRADING E-COMMERCE •M ARKET LEADER POSITION PLATFORM
Slide 22: Group's targets for 2018
22 G R OUP ’ S TA R G E T S F OR 2 018 P l a n s f o r 2 0 18 1 2 3 4 SUSTAINING OF GROUP’S GROUP’S REVENUES SHARE OF ONLINE GROSS PROFIT ON EBITDA OVER >5B PLN REVENUES AT 20% SALES MARGIN 650M PLN (+24% YOY) (GROWTH OF THE OFFLINE MARGIN)
Slide 23: Q&A session
Q&A S E S S ION
Slide 24: Thank you
CCC Thank you
Slide 25: Back-up
BACK- UP
Slide 26: Coherent floorspace growth
26 C OHE R E N T F L OOR S PAC E G R OW T H Back-up 30.06.2016 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 TYPE COUNTRY store store store store store store sqm sqm sqm sqm sqm sqm count count count count count count Poland 197 682 422 201 644 424 212 242 436 214 696 433 220 795 439 228 15
Slide 27: Stable sales structure
27 S TA BL E S A L E S S T R UC T UR E Back-up SALES STRUCTURE FOOTWEAR SALES STRUCTURE bags accessories+cosmetics footwear kids men ladies 2017 – 6% 2017 – 5% 2017 – 89% 2017 – 14% 2017 – 20% 2017 – 66% [2016 – 6%] [2016 – 6%] [2016 – 88%] [2016 – 13%] [2016 – 21%] [2016 – 66%] Q3 Q3
Slide 28: Historical quarterly results
28 HI S T OR ICA L QUA R T E R LY R E S ULT S Back-up mln PLN Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 YOY Sales 534,6 864,9 664,7 1121,1 720,4 1125,1 987,2 48,5% Gross profit on sales 269,4 467,1 339,3 604,3 350,7 583,4 503,3 48,3% Gross profit on sales margin 50,4% 54,0% 51,0% 53,9%
Slide 29: Balance sheet, assets
29 BA L A N C E S HE E T, A S S E T S Back-up mln PLN 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 Intangibles 7,8 181,2 181,2 189,2 193,0 Goodwill 210,5 106,2 106,2 106,2 106,2 Tabgible assets 650,2 679,6 679,2 736,9 753,1 Deferred tax assets 316,2 60,1 313,0 55,3 62,2 Loans granted 15,0
Slide 30: Balance sheet, liabilities
30 BA L A N C E S HE E T, L I A BIL I T IE S Back-up mln PLN 30.09.2016 31.12.2016 31.03.2017 30.06.2017 30.09.2017 Debt 366,0 366,0 436,0 436,0 436,0 Deferred tax debt 1,2 34,1 34,6 33,4 32,3 Provisions 6,8 7,2 7,2 7,3 7,3 Grants received 24,2 23,5 22,9 22,3 21,9 Minority shares redemption obligati
Slide 31: Shareholder structure
31 S H A R E H OL DE R S T R UC T UR E Back-up SHAREHOLDER STRUCTURE Dariusz Miłek Dariusz Miłek Others ** (CEO, directly and indirectly Others ** (CEO, directly and indirectly 54,59% through Ultro Sp. z o.o.) 46,95% through Ultro Sp. z o.o.) 26,86% 34,90% Leszek Leszek Gaczorek Gaczorek 4,86% 6,36%
Slide 32: Glossary
32 G L O S S A RY Back-up TERM MEANING CEE Czech Republic, Slovakia, Hungary, Croatia, Bulgaria, Slovenia WE Germany and Austria Others Latvia, Lithuania, Estonia, Ukraine, Russia, Serbia Retail Own store chain Wholesale Franchise store chain and sales to other external companies (small scale) Produ