Slide 1: 2Q21/22 Results Presentation
2Q21/22 2Q21/22 RESULTS PRESENTATION GDAŃSK, OCTOBER 6, 2021 GLOBAL ASPIRATIONS
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) was prepared by LPP SA (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 does not present its standing or prospe
Slide 3: Key corporate events
2Q21/22 3 01 GLOBAL ASPIRATIONS Key corporate events
Slide 4: Disruptions in supply chain
Disruptions in supply chain 2Q21/22 4 2Q21/22 results were These favorable trends may not exceptionally good due to: be repeated in upcoming quarters due to: delayed demand for goods in traditional stores after delays in maritime transport, lockdowns, increase in transportation favorable gro
Slide 5: Impact of pandemics on 1H20/21 and 1H21/22
Impact of pandemics on 1H20/21 and 1H21/22 Continuation of Growing uncertainty Gradual opening Continuation Pandemic situation, rebound in traditional about epidemiological Continuation of traditional stores - of rebound in lockdown in most stores, continuation situation in Europe, of lockdowns redu
Slide 6: Longer YoY restrictions in 1H21/22
Longer YoY restrictions in 1H21/22 2Q21/22 6 GLOBAL ASPIRATIONS
Slide 7: Key corporate events
Key corporate events 2Q21/22 7 07.21 08.21 09.21 09.21 LAUNCH OF WAREHOUSE SUSTAINABLE DEVELOPMENT STRENGTHENING EXPANSION IN THE BALKANS IN RUSSIA THE RESERVED COLLECTION Launch of the first Reserved LPP neutralizes its impact on Expanding the range of store in Northern Macedonia. New warehouse nea
Slide 8: New warehouse near Moscow
New warehouse near Moscow Warehouse specification: • area of 30 ths m2 (target area 40 ths m2), • possibility to fulfil up to 95 ths orders daily, • tripling the efficiency of online sales in Russia. 2Q21/22 8 New Fulfillment Center with an area of 30 ths m2 replaced the existing, half the size smal
Slide 9: Letter of intent for wind energy
Letter of intent for wind energy SIGNING A LETTER OF INTENT FOR GREEN ENERGY: 2Q21/22 • planned 10-year contract, effective from January 1, 2023, with the possibility of extending it for another 5 years, 9 • covering energy demand for domestic operations (0.4 TWh in 10 years) - most office buildings
Slide 10: Solar energy in Brześć Kujawski
Solar energy in Brześć Kujawski 4 thousand photovoltaic panels on the roof of our 2Q21/22 Distribution Center in Brześć Kujawski. 10 Own photovoltaic panels: • installation of 4,000 panels on the roof of the Distribution Center in Brześć Kujawski - the installed capacity is 1.5MW, • possibility of s
Slide 11: New collections in Reserved offer
New collections in Reserved offer NEWBORN A collection for a baby from the first days of life. In addition to classic baby bodysuits, the offer also includes 2020/21 comfortable clothes and accessories that allow to create many complete sets 11 for every day. COLLECTION FOR MOMS The collection was c
Slide 12: Continuation of development in the Balkans
Continuation of development in the Balkans Debut in Northern Macedonia with the first Reserved store. 2Q21/22 Northern Macedonia is the 7th offline country in South-Eastern 12 Europe and the 26th offline country for the Group. The first store opened was of the flagship Reserved brand with an area of
Slide 13: Stores count by region
Over 2 ths stores 5 32 453 20 22 1 926 14 2Q21/22 Open as at 19 As at 31.07.2021 No. of stores 95 5.10.2021 128 55 18 13 LPP GROUP 2,021 100% 32 85 10 31 Poland 926 100% 7 31 28 Europe 473 100% CIS 613 100% ME 9 100% 3 1 2 2 1 GLOBAL ASPIRATIONS online + offline online offline
Slide 14: Towards omnichannel
Towards omnichannel OFFLINE ONLINE 2Q21/22 2,021 30 stores countries 14 +23.9% +77.2% m2 revenues +72.8% LFLs 25 38 +81.2% countries GROUP COUNTRIES REVENUES GLOBAL ASPIRATIONS
Slide 15: 2Q21/22 financial results
2Q21/22 15 02 GLOBAL ASPIRATIONS 2Q21/22 financial results
Slide 16: High Group revenue dynamics
High Group revenue dynamics GROUP REVENUES OMNICHANNEL REVENUES (PLN m) 3,643.1 PLN m 2Q20/21 2Q21/22 YoY 2,724.2 793.2 LPP GROUP 2,129.3 3,643.1 71.1% 2,344.8 2,445.7 2,332.0 2,129.3 2,094.4 2,350.3 Reserved 938.9 1,439.6 53.3% 390.7 2Q21/22 276.3 239.5 445.9 Cropp 256.6 448.4 74.7% 621.2 778.1 988
Slide 17: Continuation of e-commerce growth
Continuation of e-commerce growth ONLINE SALES ONLINE BY REGIONS (PLN m) (PLN m) PLN 793.2m PLN 621.2m 988.3 103.2 778.1 793.2 96.3 +27.7% 2Q21/22 621.2 355.7 227.8 445.9 17 390.7 384.0 276.3 334.2 239.5 297.0 2Q20/21 2Q21/22 2Q19/20 3Q19/20 4Q19/20 1Q20/21 2Q20/21 3Q20/21 4Q20/21 1Q21/22 2Q21/22 (3
Slide 18: Foreign revenues exceed Polish ones
Foreign revenues exceed Polish ones REVENUES BY REGIONS IN 2Q21/22 2Q21/22 FLOORSPACE (PLN m) (by regions) ths m2 2Q20/21 2Q21/22 YoY Poland 1,487 +55% YoY LPP GROUP 1,304.9 1,616.5 23.9% 2Q21/22 Europe 1,165 Poland 534.0 619.6 16.0% +58% YoY 18 Europe 403.6 457.9 13.5% CIS 988 +131% YoY CIS 358.8 5
Slide 19: Gross profit margin due to low purchase prices
Gross profit margin due to low purchase prices QUARTERLY GROUP GROSS PROFIT MARGIN INVENTORY AND INVENTORY/M2 58.8% 3,000 1,743 1,614 1,490 1,439 1,570 1,572 1,455 56.6% 55.5% 55.4% 1,600 2,500 1,266 1,223 2,000 1,200 51.9% 2Q21/22 1,500 2,074 2,311 53.4% 2,239 800 1,857 1,921 1,642 1,643 49.3% 1,00
Slide 20: A small growth in costs/m2
A small growth in costs/ m2 COSTS OF OWN STORES/ M2 SG&A/ M2 (IAS17) (IFRS16) +11% YoY 14% YoY 204 201 195 150 160 167 59 61 148 56 144 141 2Q21/22 51 55 48 44 55 51 53 49 47 38 38 47 20 40 37 36 289 297 285 293 257 262 275 245 90 89 86 223 60 69 72 57 58 65 2Q19/20 3Q19/20 4Q19/20 1Q20/21 2Q20/21 3
Slide 21: Almost PLN 0.6bn EBIT in the quarter
Almost PLN 0.6bn EBIT in the quarter PLN m, IFRS 16 2Q20/21 2Q21/22 YoY Revenues 2,129.3 3,643.1 71.1% • High double-digit sales increases YoY due to higher online sales and Gross profit margin on sales 47.6% 55.4% +7.8 pp. realisation of deferred offline demand. SG&A costs 966.9 1,372.3 41.9% • Sig
Slide 22: Better results under IFRS16 than IAS17
Better results under IFRS16 than IAS17 PLN m, IAS17 2Q20/21 2Q21/22 YoY EBITDA PLN 143.6m of additional depreciation Revenues 2,129.3 3,643.1 71.1% of the right-of-use asset. 1Q21/22 Gross profit margin on sales 47.6% 55.4% +7.8 pp. 2Q21/22 22 SG&A costs 898.0 1,403.3 56.3% EBIT 96.8 560.9 479.7% EB
Slide 23: Almost PLN 0.5bn income in 1H21/22
Almost PLN 0.5bn income in 1H21/22 PLN m, IFRS16 1H20/21 1H21/22 YoY Revenues 3,307.9 5,993.5 81.2% • High double-digit sales growth YoY due to the development of Gross profit margin on sales 47.8% 55.5% +7.7pp. omnichannel. Significant increase in gross margin YoY due to lower YoY sales in 1Q21/22
Slide 24: Executive summary
Executive summary 1H21/22 The results of 1H21/22 are a combination of both the actions taken by LPP and many positive external factors outside of LPP’s control. 2Q21/22 24 1 Growing offline sales despite the pandemic. 2 Double-digit online sales growth. 3 Operating margin improvement. 4 GLOBALNE ASP
Slide 25: Outlook for 2021/22
2Q21/22 25 03 GLOBAL ASPIRATIONS Outlook for 2021/22
Slide 26: Challenges, targets and opportunities for 2021/22
Disruptions in supply chain: rising transport costs, delivery delays and interrupted production processes. New model of customer behavior after COVID-19, possible ending of deferred demand for purchases in traditional Challenges stores in 2H21/22. Another wave of infections in 2H21/22. Incre
Slide 27: Q&A
GLOBAL ASPIRATIONS 27 2Q21/22 Q&A 04
Slide 28: Glossary
Poland Retail sales in Poland and other sales of LPP SA. CEE Region including: Czech Republic, Slovakia, Hungary. Baltic Region including: Lithuania, Latvia, Estonia. CIS Region including: Russia, Ukraine, Belarus and from 2018 also Kazakhstan. SEE Region including: Bulgaria, Romania, Croatia, Serbi
Slide 29: Contact
discoverlpp company/lpp-sa discoverlpp discoverlpp Contact GDAŃSK HQs CONTACT FOR INVESTORS CONTACT FOR MEDIA WWW.LPPSA.COM Łąkowa 39/44, 80-769 Gdańsk Email: LPP.investor.relations@lppsa.com Email: media@lppsa.com Tel. +48 58 76 96 900 Email: lpp@lppsa.com