Vrg S.a. · GPW:VRG

Vrg — Q2 2020 Earnings Presentation

74 slides from Vrg's earnings presentation, Aug 26, 2020

1. Slide 1: 2Q20 Results Presentation

   2Q20 RESULTS PRESENTATION AUGUST 26, 2020

2. Slide 2: Disclaimer

   DISCLAIMER This presentation (the "Presentation") was prepared by VRG S.A. (the in this document. Many of those factors are beyond the awareness and "Company") with a due care. Still, it may contain certain inconsistencies or control of the Company and the Capital Group or the Company’s and omission

3. Slide 3: Introduction

   01 INTRODUCTION

4. Slide 4: Key corporate events

   KEY CORPORATE EVENTS CHANGES IN COVID-19 IMPACT MANAGEMENT BOARD - New persons on the Company’s - Change in Group’s functioning Management Board - Necessity to take actions to - Resultant changes on the stabilise the Group’s situation management board of W.KRUK - Changing customer habits (short- sub

5. Slide 5: Key event of 2Q20: COVID-19

   KEY EVENT OF 2Q20: COVID-19 IMPACT OF PANDEMIC ON 1st HALF OF 2020 Gradual impact Shopping malls Gradual Negotiations No coronavirus of coronavirus, closed down, Stabilising rebuilding with shopping impact growing only on-line actions of demand malls uncertainty sales 01.03 14.03 31.03 04.05 1Q20 2Q

6. Slide 6: Group floorspace optimisation

   GROUP FLOORSPACE OPTIMISATION NUMBER OF STORES EOP 2Q20 YoY 145 -9 120 -5 109 +6 YoY 52.7 - 1% YoY cities ths m2 132 -10 30 -1 141 37.6% +25.9 pp. franchise +4 YoY internet share YoY stores 140 +6 567 - 19 6 | 2Q20 presentation

7. Slide 7: Key 2Q20 numbers impacted by COVID-19

   KEY 2Q20 NUMBERS IMPACTED BY COVID-19 IFRS 16 IAS17 REVENUES EBIT/ (EBIT LOSS) EBIT/ (EBIT LOSS) PLN 174.9m 2Q19: PLN 28.6m 2Q19: PLN 28.7m -35.3% PLN (10.4)m PLN (11.3)m GROSS PROFIT MARGIN ON SALES NET INCOME (LOSS) NET INCOME (LOSS) 46.9% 2Q19: PLN 23.9m 2Q19: PLN 22.0m -6.6 pp. PLN (2.3)m PLN (8

8. Slide 8: Impact of COVID-19 on 1H20 numbers

   IMPACT OF COVID-19 ON 1H20 NUMBERS IFRS 16 IAS 17 REVENUES EBIT/ (EBIT LOSS) EBIT/ (EBIT LOSS) PLN 372.3m 1H19: PLN 27.3m 1H19: PLN 27.7m -23.2% PLN (22.3)m PLN (23.5)m GROSS PROFIT MARGIN ON SALES NET INCOME (LOSS) NET INCOME (LOSS 47.3% 1H19: PLN 21.5m 1H19: PLN 20.8m -4.2 pp. PLN (34.3)m PLN (22.

9. Slide 9: Changes in Group's board

   CHANGES IN GROUP’S BOARD VRG S.A. MANAGEMENT BOARD As Radosław Jakociuk became Executive Vice-President of VRG S.A., Andrzej Jaworski changes had to be made on W.KRUK President of the Management Board Management Board. Łukasz Bernacki Radosław Jakociuk Executive Vice-President of the Management Pres

10. Slide 10: Performance by brands

    02 PERFORMANCE BY BRANDS

11. Slide 11: Executive summary

    < — —) _— eal > EXECUTIVE SUMMARY

12. Slide 12: Vistula: on-line at 35% of revenues

    VISTULA: ON-LINE AT 35% OF REVENUES Vistula brand network  Vistula brand floorspace fell 4% YoY at the end of 2Q20, due to 2Q19 2Q20 YoY closing down of unprofitable stores. Sales network contracted by 9 stores net. Number of stores 154 145 -9  Both franchise floorspace and number of stores was fl

13. Slide 13: Vistula: a growing share of casual

    VISTULA: A GROWING SHARE OF CASUAL Vistula brand revenue split 14% 14% 11% 10% 19% 16%  Growth of Vistula Red share in revenues at the expense of modern 38% 47% Vistula Red and higher priced Lantier lines.  Further YoY growth of casual clothing share in 2Q20 revenues – 70% 74% trend accelerated by

14. Slide 14: Vistula: higher share of on-line sales

    VISTULA: HIGHER SHARE OF ON-LINE SALES Vistula brand revenues (PLN m)  Vistula brand revenues reached PLN 92.1m in 1H20, falling 32% 135.1 YoY. Brand stores in shopping malls were closed for over 1.5 month 20.4 due to COVID-19. 26.1 92.1  Franchise revenues amounted to PLN 16.0m in 1H20, down 39%

15. Slide 15: Executive summary: Bytom

    BYTOM SZTUKA KRAWIECTWA OD 1945 EXECUTIVE SUMMARY VISTULA WOLCZANKA BYTOM WKRUK DENT. CLER

16. Slide 16: Bytom: tripling of on-line sales

    BYTOM: TRIPLING OF ON-LINE SALES Bytom brand network  Bytom’s network contracted YoY by 5 stores net, while number of 2Q19 2Q20 YoY franchise stores remained stable. Number of stores 125 120 -5  Brand’s floorspace was stable YoY (-1%). Changes in floorspace incl. franchise 8 8 0 took place at the

17. Slide 17: Bytom: a growing share of casual

    BYTOM: A GROWING SHARE OF CASUAL Bytom brand revenue split 9% 8% 14% 8% 27% 45% 38% 45%  A growing share of casual in 2Q20 revenues, in line with market tendencies and increased interest due to remote work during lock- down. 64% 47% 48% 47%  A stable share of accessories in sales split in 2Q20. 2Q

18. Slide 18: Bytom: pick-up in on-line sales

    BYTOM: PICK-UP IN ON-LINE SALES Bytom brand retail revenues (PLN m)  Bytom brand revenues reached PLN 68.4m in 1H20, falling 26% 92,1 YoY. Brand stores in shopping malls were closed for over 1.5 month 9.8 due to COVID-19. 4.2 68,4  Franchise revenues amounted to PLN 2.4m in 1H20, down 44% YoY. 25.

19. Slide 19: Executive summary: Wólczanka

    WOLCZANKA EXECUTIVE SUMMARY VISTULA WOLCZANKA BYTOM WKRUK DENT. CLER

20. Slide 20: Wólczanka: an on-line brand

    WÓLCZANKA: AN ON-LINE BRAND Wólczanka brand network 2Q19 2Q20 YoY  Wólczanka network contracted by 10 stores net YoY. Optimisation Number of stores 142 132 -10 affected mostly own stores – there were 1 fewer of these YoY. incl. franchise 50 49 -1  Brand’s floorspace fell 5% YoY, in similar proport

21. Slide 21: A growing share of new assortments

    A GROWING SHARE OF NEW ASSORTMENTS Wólczanka brand revenue split 10% 4% 22% 21% 4% 39% 40%  A higher share of knitwear due to extended assortment via chinos 19% trousers for men and women, polo and T-shirts.  Fall in share of men and women shirts due to new assortment 65% 55% 61% 60% groups and im

22. Slide 22: Most favourable apparel revenue dynamics in 1H20

    MOST FAVOURABLE APPAREL REVENUE DYNAMICS IN 1H20 Wólczanka brand revenues (PLN m)  Wólczanka brand revenues reached PLN 48.4m in 1H20, falling 16% 57.9 YoY. Brand stores in shopping malls were closed for over 1.5 month 48.4 due to COVID-19. 20.7  Franchise revenues amounted to PLN 4.3m in 1H20, do

23. Slide 23: Executive summary: Deni Cler

    DENI CLER MILANO EXECUTIVE SUMMARY

24. Slide 24: Deni Cler: stable network, shop-in-shop development

    DENI CLER: STABLE NETWORK, SHOP-IN-SHOP DEVELOPMENT Deni Cler brand network 2Q19 2Q20 YoY  Deni Cler network encompasses 30 stores in top shopping malls in Number of stores 31 30 1 Poland. incl. franchise 8 9 +1  There are 9 franchise stores in the network. Floorspace (m2) 3,047 2,947 -3%  Develo

25. Slide 25: Deni Cler: a growing share of accessories

    DENI CLER: A GROWING SHARE OF ACCESSORIES Deni Cler brand revenue split 15% 18% 16% 17%  Emphasis on capsule collections. A growing share of accessories 10% 6% 9% 6% and main collection versus the supplementary one.  Fall in sales/ m2 due to impact of shopping malls being closed down both on own a

26. Slide 26: Deni Cler: positive store EBIT

    DENI CLER: POSITIVE STORE EBIT Deni Cler brand revenues (PLN m)  Deni Cler brand revenues reached PLN 17.3m in 1H20, falling 19% 21.4 YoY. Brand stores in shopping malls were closed for over 1.5 month 17.3 2.6 due to COVID-19. 4.6 3.2  Franchise revenues amounted to PLN 3.5m in 1H20, down 24% YoY.

27. Slide 27: Executive summary: W.KRUK

    WKRUK 1 8 4 0 EXECUTIVE SUMMARY VISTULA WOLCZANKA BYTOM WKRUK DENT. CLER

28. Slide 28: W.KRUK: leader of floorspace growth

    W.KRUK: LEADER OF FLOORSPACE GROWTH W.KRUK brand network 2Q19 2Q20 YoY  Continuation of W.KRUK brand development. Opening of 6 stores Number of stores 134 140 +6 net translated into a 5% YoY increase in brand’s floorspace. incl. franchise 11 15 +4  The brand had 15 franchise stores at the end of 2

29. Slide 29: W.KRUK: a growing share of gold jewellery

    W.KRUK: A GROWING SHARE OF GOLD JEWELLERY W.KRUK brand revenue split 31% 31% 34% 30%  Closing down of shopping malls has not altered the sales split – a stable share of jewellery and watches.  Within jewellery, there was a growing YoY share of gold jewellery 69% 69% 66% 70% over higher-margin silv

30. Slide 30: W.KRUK: most favourable gross margin change

    W.KRUK: MOST FAVOURABLE GROSS MARGIN CHANGE W.KRUK brand retail revenues (PLN m)  W.KRUK brand revenues reached PLN 133.5m in 1H20, falling 16% 158.1 YoY. Brand stores in shopping malls were closed for over 1.5 month 133.5 due to COVID-19.  Franchise revenues amounted to PLN 7.1m in 1H20, up 6.5%

31. Slide 31: Group results

    Prośba o wymianę zdjęć 03 GROUP RESULTS

32. Slide 32: Stable group floorspace

    STABLE GROUP FLOORSPACE Group floorspace change YoY (ths m2) 53.4 52.7  Group floorspace reached 52.7 ths m2 at the end of 2Q20, down 0.5 10.2 10.7 1% YoY. -1.2  The apparel segment floorspace fell 1.2 ths m2, down 3% YoY.  The jewellery segment floorspace grew 0.5 ths m2 net to group 43.2 -1% Yo

33. Slide 33: Revenues impacted by COVID-19

    REVENUES IMPACTED BY COVID-19 Group revenues (PLN m) 332.5 272.1 270.2 251.2  Group revenues reached PLN 174.9m in 2Q20 (down 35% YoY). 192.9 214.4 125.6 197.5 180.1 110.2 86.7 174.9  Apparel segment revenues fell 38% YoY, reaching PLN 114.0m, in 90.8 72.8 73.8 76.7 74.2 60.9 2Q20. 183.6 206.8 161

34. Slide 34: Lower gross profit in both segments

    LOWER GROSS PROFIT IN BOTH SEGMENTS Gross profit on sales (PLN m) 178.5  Group gross profit on sales amounted to PLN 82.1m in 2Q20 (down 143.8 144.6 128.0 43% YoY). 67.6 100.6 105.0 45.9 94.0 90.1 59.7 47.1 82.1  In 2Q20 gross profit on sales of the apparel segment reached 37.6 37.5 37.2 PLN 52.1m

35. Slide 35: Fall in operating costs/m2

    FALL IN OPERATING COSTS/ M2 Monthly operating costs per m2 (PLN, IAS17)  Group operating costs/ m2 (IAS17) reached PLN 520/ m2 monthly and fell 28% YoY in 2Q20 due to lack of rentals in April 2020 and 802 784 852 811 cost reductions conducted. 683 723 717 654 245 221 249 230 520 196 196 192 203  C

36. Slide 36: Other operating line PLN 7.8m

    OTHER OPERATING LINE PLN 7.8m favourable impact of government subsidies (all in 2Q20) on other operating revenues PLN 6.4m PLN 6.2m PLN 1.3m PLN 13.9m Write-offs for Write-offs for Fabrics, raw collections older wholesale materials write-offs than SS2020 in other operating Reason: lower realised lin

37. Slide 37: 2Q20 results IFRS16, executive summary

    2Q20 RESULTS IFRS16, EXECUTIVE SUMMARY  YoY fall in revenues in both segments due to impact of COVID-19 pandemic. PLN m 2Q19 IFRS16 2Q20 IFRS16 YoY  Lower YoY gross profit margin due to higher share of on-line and Revenues 270.2 174.9 -35.3% stronger YoY promotions. Gross profit on sales 144.6 82.

38. Slide 38: 2Q20 results IAS17, executive summary

    2Q20 RESULTS IAS17, EXECUTIVE SUMMARY  YoY fall in revenues in both segments due to impact of COVID-19 pandemic. PLN m 2Q19 IAS17 2Q20 IAS17 YoY  Lower YoY gross profit margin due to higher share of on-line and Revenues 270.2 174.9 -35.3% stronger YoY promotions. Gross profit on sales 144.6 82.1 -

39. Slide 39: 1H20 results IFRS16, executive summary

    1H20 RESULTS IFRS16, EXECUTIVE SUMMARY  YoY fall in revenues in both segments due to impact of COVID-19 pandemic. PLN m 1H19 IFRS16 1H20 IFRS16 YoY  Lower YoY gross profit margin due to higher share of on-line and Revenues 484.6 372.3 -23.2% stronger YoY promotions. Gross profit on sales 249.6 176

40. Slide 40: 1H20 results IAS17, executive summary

    1H20 RESULTS IAS17, EXECUTIVE SUMMARY  YoY fall in revenues in both segments due to impact of COVID-19 pandemic. PLN m 1H19 IAS17 1H20 IAS17 YoY  Lower YoY gross profit margin due to higher share of on-line and Revenues 484,6 372,3 -23,2% stronger YoY promotions. Gross profit on sales 249,6 176,0

41. Slide 41: Reduction in inventories

    REDUCTION IN INVENTORIES Change in inventories (PLN m) 507.6 485.3  Inventory down 4% YoY to PLN 485.3m in 2Q20 due to conducted 2.9 sell-offs, write-offs for inventory and lower YoY orders for the -25.2 221.7 224.6 SS2020 season.  Apparel segment inventory fell 9% YoY. 285.9 260.7  Inventory of

42. Slide 42: Net debt continues to fall

    NET DEBT CONTINUES TO FALL Net debt (PLN m, IAS17 plus reverse factoring)  Long-term and short-term indebtedness shown together with reverse factoring and financial leases, yet excluding the leases from 109.7 125.5 IFRS16. Financial leases under IFRS16 at PLN 322.6m in 2Q20. 69.3 101.4 45.0 48.5 91

43. Slide 43: Strong operating cash flows

    STRONG OPERATING CASH FLOWS Net working capital (PLN m)  Lower YoY inventories and liquidation of inventory due to stronger 30.6 14.6 PLN 320.8m YoY promotions (consequence of pandemic), inventory write-off PLN 340.1m and shifts in collection orders. 507.6 485.3  Lower YoY receivables due to fall

44. Slide 44: 2020 outlook

    Prośba o wymianę zdjęć 04 2020 OUTLOOK

45. Slide 45: New products in apparel brands' offering

    NEW PRODUCTS IN APPAREL BRANDS’ OFFERING new version of ECO sweatshirts for women LINE and men VISTULA MOVE – a line new trouser and For the 75th anniversary inspired by sports knitwear styles of the BYTOM brand, additional accessories, an original pattern elements of women both for ladies and refer

46. Slide 46: Support for on-line

    SUPPORT FOR ON-LINE 2020 target: Launch of sales 25% share application. Salonet of e-commerce development. in revenues. Higher outlays for Streamlining of on-line traffic. on-line logistics. 46 | 2Q20 presentation

47. Slide 47: 2020 floorspace down YoY

    2020 FLOORSPACE DOWN YOY 2020 2020 2019 YoY former target target In 2020 floorspace will be lower YoY stores 451 413 426 -25 due to closing down of unprofitable APPAREL SEGMENT stores. m2 43,731 40,813 42,017 -4% stores 154 140 149 -5 VISTULA m2 19,320 17,787 18,731 -3% stores 140 126 129 -11 Franch

48. Slide 48: Base case scenario maintained

    BASE CASE SCENARIO MAINTAINED Shopping malls closed Recovery from revenue fall. until May, 4. 10% 9% 0% -8% -10% -10% -10% -10% -10% -35% -42% Possible loss of up to -65% 20% of retail Earlier assumptions: -80% -50% -30% -20% revenues. I.20 II.20 III.20 IV.20 V.20 VI.20 VII.20 VIII.20 IX.20 X.20 XI.

49. Slide 49: Costs/m2 derive from revenues/m2

    COSTS/ M2 DERIVE FROM REVENUES/ M2 COSTS OF STORES AND HQs SG&A/M2 100% of floorspace Departure from 4/5 after renegotiation Target: to keep SG&A/ m2 costs under of working time in of rents, reduction Stable other costs A gradual growth in control in 2H20, despite lack of further July for W.KRUK, of

50. Slide 50: Working capital improvements

    WORKING CAPITAL IMPROVEMENTS APPAREL SEGMENT JEWELLERY SEGMENT Some 30% Autumn/Winter 2020 order reduction. Some 20% order reduction. Lengthening of payment terms. Lengthening of payment terms. Limiting the watches distribution in the lower price Usage of supply chain financing. segment. TARGET: 15%

51. Slide 51: Targets for 2020

    TARGETS FOR 2020 RISKS OPPORTUNITIES Second wave of COVID-19, another lock-down Dynamic on-line growths, strong financial or stronger sanitary regime in stores. position versus entities selling formalwear. REVENUES EBITDA LIQUIDITY - Loss of up to 20% of revenues in base case - Maintaining liquidity

52. Slide 52: Q&A

    05 Q&A

53. Slide 53: Back-up

    06 BACK-UP

54. Slide 54: Vistula: executive summary

    VISTULA: EXECUTIVE SUMMARY VISTULA (MENSWEAR) - Vistula brand is characterised by the highest quality of products and a fresh approach to men’s fashion. - There are 3 stylistic lines in Vistula brand collections: Vistula – modern classical clothes, Vistula RED – the latest trends, brave colours, Lan

55. Slide 55: Bytom: executive summary

    BYTOM: EXECUTIVE SUMMARY BYTOM (MENSWEAR) - Bytom – a Polish brand with origin dating back to 1945. - The brand offers men’s formalwear and smart casual and casual assortment. - ”Made to Measure” – personalised men’s tailoring offered in selected stores. AUTUMN/WINTER 2020 COLLECTION - The essence o

56. Slide 56: Wólczanka: executive summary

    WÓLCZANKA: EXECUTIVE SUMMARY WÓLCZANKA (FASHION FOR MEN AND WOMEN) - Wólczanka runs a network of own and franchise stores in Poland with shirts for men and women, knitwear and accessories. The brand has two lines: Wólczanka and Lambert. AUTUMN/WINTER 2020 COLLECTION - The new season is an opportunit

57. Slide 57: Deni Cler: executive summary

    DENI CLER: EXECUTIVE SUMMARY DENI CLER (WOMEN’S FASHION) - Women’s fashion brand with Italian origin, established in Italy in 1971. - A network of stores for women over 35 years of age who value high quality and elegance. - Collections created from highest quality fabrics with superior accessories a

58. Slide 58: W.KRUK: executive summary

    W.KRUK: EXECUTIVE SUMMARY THE OLDEST JEWELLEY BRAND IN POLAND - The jewellery offer includes gold and silver jewellery, diamonds, precious stones and original collections. - W.KRUK's offer also includes global watches brands, such as Rolex (sole distributor in Poland), Cartier, Jaeger-LeCoultre, Hub

59. Slide 59: Summary of brands 2Q20 results

    SUMMARY OF BRANDS 2Q20 RESULTS A GROWING SHARE A GROWING SHARE OF CASUAL. OF INTERNET. FLOORSPACE GROWTH. A GROWING SHARE OF GOLD IN REVENUES. THE HIGHEST SHARE A STABLE NETWORK OF INTERNET. OF STORES. 59 | 2Q20 presentation

60. Slide 60: Group structure

    GROUP STRUCTURE VRG CO M PA N I E S I N C LU D E D I N T H E CO N S O L I DAT E D S TAT E M E N T S F O R 2 Q 2 0 JEWELLERY SEGMENT APPAREL SEGMENT OTHER ACTIVITY VRG S.A. W.KRUK S.A. parent company WSM sp. z o.o. ,VG Property sp. z o.o. Jewellery, watches, accessories Vistula, Wólczanka, Bytom bran

61. Slide 61: Optimisation of number of stores

    OPTIMISATION OF NUMBER OF STORES NUMBER OF STORES 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 total 300 304 440 443 452 451 451 440 427 APPAREL SEGMENT franchise 94 100 117 120 126 129 132 126 126 total 138 141 148 152 154 152 154 148 145 VISTULA franchise 47 50 56 58 60 60 62 59 60 total 132 133 1

62. Slide 62: Stable YoY floorspace

    STABLE YOY FLOORSPACE M2 OF FLOORSPACE 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 total 24,864 25,163 42,072 42,429 43,207 43,461 43,731 42,962 41,953 APPAREL SEGMENT franchise 6,487 6,820 8,394 8,621 9,223 9,322 9,590 9,123 9,195 total 17,176 17,429 18,230 18,727 19,007 19,058 19,320 18,650 18,29

63. Slide 63: Own e-stores of five brands

    OWN E-STORES OF FIVE BRANDS On-line sales by segments (PLN m)  We have own e-stores for all five retail brands. 16.8  Our aim is to develop on-line stores of own brands (monoshops). 9.4 7.9  Revenues and costs of on-line stores are allocated directly to the 7.2 5.4 6.0 7.0 48.9 brands. 4.8 5.5 38

64. Slide 64: Fall in costs/m2

    FALL IN COSTS/ M2 Operating costs per month/ m2 (PLN, excl. IFRS16)  Differences in SG&A costs/ m2 between segments result from different business models.  The jewellery segment is characterised by higher revenues and 1,376 1,510 1,131 1,139 1,143 1,177 1,226 costs/ m2 than these of the apparel se

65. Slide 65: Off-line marketing: 180th jubilee of W.KRUK

    OFF-LINE MARKETING: 180TH JUBILEE OF W.KRUK Off-line marketing costs by segments (PLN m)  Marketing costs are part of group selling costs.  These encompass: recurring advertising spending (catalogues, photoshoots) and nationwide marketing campaigns in editorial, 5.7 internet and TV with celebritie

66. Slide 66: FX risk exposure

    FX RISK EXPOSURE Purchases by currencies (PLN m)  FX risk is sizeable for the capital group, thus it is being hedged CHF, 8% CHF, 10% since 2Q16. USD, 35% USD, 39%  The group is a beneficiary of strengthening of zloty versus foreign EUR, EUR, 16% currencies. 1H19 22% 1H20  YoY shift in purchases

67. Slide 67: Historical quarterly results

    HISTORICAL QUARTERLY RESULTS 1Q19 1Q20 2Q19 2Q20 1H19 1H20 PLN m YoY YoY YoY IFRS16 IFRS16 IFRS16 IFRS16 IFRS16 IFRS16 Revenues 214.4 197.5 -7.9% 270.2 174.9 -35.3% 484.6 372.3 -23.2% Gross profit on sales 105.0 94.0 -10.5% 144.6 82.1 -43.2% 249.6 176.0 -29.5% Gross profit on sales margin 49.0% 47.6

68. Slide 68: A safe indebtedness level

    A SAFE INDEBTEDNESS LEVEL PLN m 2Q19 4Q19 2Q20 Long-term debt 71.5 58.0 56.5  Interest bearing indebtedness includes: bank loans, finance leases and reverse factoring (taken over with Bytom S.A. merger). Bank loans 68.3 55.9 54.6  Bank loans include: overdrafts and investment bank loans. Bank Fina

69. Slide 69: Monthly sales data: apparel segment

    MONTHLY SALES DATA APPAREL SEGMENT REVENUES (VISTULA, WÓLCZANKA, DENI CLER, BYTOM from XII 2018) 90 80% 84 70% 78 78 80 60% 50% 70 66 61 40% 52 58 58 60 55 30% 53 51 51 50 51 20% 48 48 47 49 50 42 47 45 10% 42 42 39 38 40 40 40 39 40 38 40 38 37 0% 40 35 33 33 34 32 32 31 33 33 34 34 33 33 34 32 32

70. Slide 70: Monthly sales data: jewellery segment

    MONTHLY SALES DATA JEWELLERY SEGMENT REVENUES (W.KRUK) 80 50% 69 40% 70 65 65 30% 20% 60 51 10% 50 0% -10% 40 35 32 -20% 31 32 31 31 32 29 29 29 31 30 26 28 27 27 28 27 28 27 -30% 24 25 26 26 25 26 24 25 23 26 22 22 23 22 22 22 21 22 21 -40% 20 20 20 17 18 20 18 18 19 20 17 20 18 20 20 17 17 17 15 1

71. Slide 71: Monthly sales data: group revenues

    MONTHLY SALES DATA GROUP REVENUES 180 60% 156 160 147 147 40% 140 20% 120 107 96 98 96 83 85 0% 100 90 90 83 85 86 83 85 79 76 78 76 73 80 71 73 71 67 69 67 69 67 69 67 69 -20% 63 61 62 60 62 60 63 57 56 57 56 57 57 57 56 57 57 60 53 50 47 52 53 52 53 50 49 44 45 43 -40% 40 29 -60% 20 0 -80% revenue

72. Slide 72: Shareholder structure

    SHAREHOLDER STRUCTURE Shareholder structure as at 25.08.2020 (share in equity and votes) Other free-float Number of 39.29% % share shares/votes 1. IPOPEMA TFI 36,797,423 15.69% 2. PZU OFE and DFE 35,950,000 15.33% Forum TFI 6.69% 3. NN OFE and DFE 33,119,487 14.13% IPOPEMA TFI 4. Jerzy Mazgaj with r

73. Slide 73: Glossary

    GLOSSARY APPAREL SEGMENT REVENUES (PLN/M2 PER MONTH) STORE EBIT (PLN M) FORMAL Revenues from brands: Vistula, Wólczanka, Quarterly revenues of segment or brand Store operating profit calculated as gross Revenues from sale of formalwear, including Bytom (from XII 2018), Deni Cler and (stores and inte

74. Slide 74: Thank you

    THANK YOU VRG S.A. Pilotów 10 St. 31-462 Cracow

VRG — Q2 2020 Earnings Presentation on 6ix