Lpp S.a. · GPW:LPP

Lpp — Investor Presentation (July 2023)

78 slides from Lpp's investor presentation, July 2023

  1. Slide 1: LPP Equity Story 2022/23

    LPP EQUITY STORY 2022/23 EQUITY STORY JULY 2023 1

  2. Slide 2: Disclaimer

    Disclaimer LPP EQUITY STORY 2022/23 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 prese

  3. Slide 3: Table of Contents

    OF CONTENTS TABLE LPP EQUITY STORY 01 Overview 2022/23 02 Investment case Developing omnichannel Efficient business model allowing for dividend payment A responsible company 03 Back-up Brands Floorspace Regions Growth drivers Business model details Corporate milestones Governance and stock exchange

  4. Slide 4: Overview

    LPP EQUITY STORY 2022/23 4 OVERVIEW

  5. Slide 5: One of the largest clothing retailers on WSE

    One of the largest clothing retailers on WSE LPP EQUITY STORY 2022/23 OFFLINE ONLINE LPP GROUP 1,962 27.6% PLN 15.9bn stores of revenues revenues 27 34 39 countries countries countries PLN 18.8bn 56.5% MSCI POLAND MARKET CAP FREE-FLOAT MEMBER 5 Data as of 31.01.2023

  6. Slide 6: A lean customer focused business model

    A lean customer focused business model LPP EQUITY STORY 2022/23 DESIGN PRODUCTION LOGISTICS STORES CUSTOMERS 5 459 ths m2 39 93% 1,962 countries offline different brands goods sourced of warehousing space stores and online from Asia 300+ 44 m 430m 1,200+ e-commerce orders 3 continents designers clot

  7. Slide 7: A diversified brand portfolio

    A diversified brand portfolio LPP EQUITY STORY 2022/23 7

  8. Slide 8: Portfolio of mainstream brands

    Portfolio of 5 mainstream brands LPP EQUITY STORY 2022/23 WE FOCUS ON MAINSTREAM-PRICED BRANDS Streetwear brand Comfort and elegance KEY BRAND The lates trends Anchor brand with broad influenced An optimistic fashion for business and informal FEATURES in affordable prices customer base by contempora

  9. Slide 9: 2,000 stores on 3 continents

    2,000 stores on 3 continents LPP EQUITY STORY 2022/23 Number 31.01.2023 YoY of stores GDAŃSK LPP GROUP 1,962 - 282  LPP’s headquarters  Design centre 7 Sinsay 737 -6 of Reserved, Cropp, Sinsay brands Reserved 352 - 95  Back-office Cropp 325 - 73 36 House 331 - 37 26 Mohito 217 - 69 30 28 YoY fall

  10. Slide 10: Our logistics' backbone to drive success

    Our logistics’ backbone LPP EQUITY STORY 2022/23 to drive success Gdańsk Pruszcz Gdański Brześć Kujawski Stryków Jasionka Bratislava PLAN Bucharest Bolintin-Deal Data as of 31.01.2023 10 Distribution Centre (DC) Fulfillment Centre (FC) DC + FC

  11. Slide 11: Eyeing the international giants

    Eyeing the international giants LPP EQUITY STORY 2022/23 LEADER ON THE DOMESTIC RETAIL MARKET AMBITIOUS TO BE AMONG THE INTERNATIONAL LEADERS REVENUES (PLN m) REVENUES (EUR m) 15,927 79,184 9,123 32,569 21,039 19,941 15,794 14,847 12,770 10,345 4,823 1,274 4,618 3,390 973 406 239 331 Note: data for

  12. Slide 12: Investment Case

    LPP EQUITY STORY 2022/23 INVESTMENT 12 CASE

  13. Slide 13: Investment Case

    INVESTMENT LPP EQUITY STORY CASE 2022/23 DEVELOPING OMNICHANNEL 01 10-15% p.a. floorspace growth in the next 3 years EFFICIENT BUSINESS MODEL ALLOWING FOR DIVIDEND PAYMENT 02 Lean and cost cautious business model with strong cash flow generation A RESPONSIBLE COMPANY 03 2020-2025 Sustainable Develop

  14. Slide 14: Developing Omnichannel

    LPP EQUITY STORY 01 2022/23 02 01 DEVELOPING OMNICHANNEL 03 02 04 05 03 DEVELOPING OMNICHANNEL 10-15% p.a. FLOORSPACE GROWTH IN THE NEXT 3 YEARS 14

  15. Slide 15: Omnichannel

    OMNICHANNEL LPP EQUITY STORY OFFLINE ONLINE 2022/23 own e-stores, separate separate and modern store concepts 01 for each brand; for each brand mobile apps for Sinsay and DEVELOPING Sinsay, Reserved, Cropp, House, Mohito OMNICHANNEL Reserved 02 1,962 34 stores in countries on 03 27 3 countries conti

  16. Slide 16: New countries broaden our offline presence

    New countries broaden our offline presence LPP EQUITY STORY 2022/23 EXPANSION COUNTRIES + Belarus + Greece + Egypt + Kazakhstan + Serbia + Italy + Qatar + Israel + B&H - Russia + UK + North 01 Macedonia + Kuwait + Slovenia + Finland - S. Arabia DEVELOPING + ZEA OMNICHANNEL + Germany + S. Arabia + Cr

  17. Slide 17: Floorspace growth to continue

    Floorspace growth to continue LPP EQUITY STORY 2022/23 FLOORSPACE GROWTH TARGETS FLOORSPACE TARGETS REGIONS (ths m2) +10%-15% YoY p.a. ths m2 I.2023 I.2024 YoY 2,000 LPP GROUP 1,673.4 2,000.0 20% 1,888.1 Poland 752.5 845.7 12% 01 1,673.4 1,435.4 Europe 743.9 975.5 31% DEVELOPING OMNICHANNEL 1,230.9

  18. Slide 18: Offline revenues to grow by +25% YoY in 2023/24

    Offline revenues to grow by +25% YoY in 2023/24 LPP EQUITY STORY 2022/23 LFLS (LOCAL CURRENCIES) NUMBER OF STORES 2,244 2,340 1,962 1,746 1,856 286 55.8% 368 217 278 283 331 01 332 398 318 325 DEVELOPING 17.0% 369 OMNICHANNEL 360 447 352 3.6% 440 454 743 737 324 434 2019/20 2020/21 2021/22 2022/23 2

  19. Slide 19: Online

    SERBIA, POLAND LEBANON LPP EQUITY STORY 2011 (VIA FRANCHISE PARTNER) 2022 2022/23 - RUSSIA BULGARIA, 2014 GERMANY QATAR 2021 (VIA FRANCHISE PARTNER) 01 DEVELOPING OMNICHANNEL ISRAEL CZECH (VIA FRANCHISE PARTNER) REPUBLIC, 2020 SLOVENIA SLOVAKIA, 2015 ROMANIA 02 UKRAINE, CROATIA, PAN-EUROPEAN 2019 HU

  20. Slide 20: Online sales – part of omnichannel

    ONLINE SALES (PLN MLN) E-commerce revenues 27.6% LPP EQUITY STORY % of group sales 2022/23 32.5% 4,391.9 Online sales – part 28.4% 3,681.4 of omnichannel STABLE YoY 2,229.3 12.7% 01 8.8% 1,174.1 DEVELOPING 2.9% 5.1% 1.5% 712.1 OMNICHANNEL 360.8 2023/24 TARGET: 79.3 173.1  online revenue supported b

  21. Slide 21: Development by own e-stores to continue

    Reserved and Sinsay apps LPP EQUITY STORY support online 2022/23 As the end of POLAND, POLAND, 2022/23 GERMANY, ROMANIA ROMANIA 01 DEVELOPING OMNICHANNEL As the end of CZECH REPUBLIC, CZECH REPUBLIC, 2Q23/24 SLOVAKIA, HUNGARY, SLOVAKIA, HUNGARY 02 CROATIA, BULGARIA Development by own 03 e-stores to

  22. Slide 22: Reserved and Sinsay – two revenue pillars

    Reserved and Sinsay – two revenue pillars LPP EQUITY STORY 2022/23 GROUP REVENUES BY BRANDS GROUP REVENUES BY BRANDS (PLN m) Mohito Other 1% 2021/22 8% PLN m 2019/20 2020/21 2021/22 2022/23 House restated 8% LPP GROUP 9,222 7,848 14,030 11,339 15,927 01 Sinsay Sinsay 1,282 1,738 4,587 3,579 6,162 39

  23. Slide 23: Double-digit revenue growth

    Double-digit revenue growth LPP EQUITY STORY 2022/23 GROUP REVENUES GROUP REVENUES BY CHANNELS (PLN m) 18bn 15,927 2021/22 PLN m 2019/20 2020/21 2021/22 2022/23 11,339 restated 9,222 01 7,848 LPP GROUP 9,222 7,848 14,030 11,339 15,927 DEVELOPING OMNICHANNEL Offline 7,889 5,531 9,977 7,587 11,328 Onl

  24. Slide 24: Efficient business model allowing for dividend payment

    LPP EQUITY STORY 01 2022/23 02 01 03 02 EFFICIENT BUSINESS MODEL ALLOWING FOR DIVIDEND 04 PAYMENT 03 05 EFFICIENT BUSINESS MODEL ALLOWING FOR DIVIDEND PAYMENT LEAN AND COST CAUTIOUS BUSINESS MODEL WITH STRONG CASH FLOW GENERATION 24

  25. Slide 25: Growing efficiency in omnichannel revenues/m2

    Growing efficiency in omnichannel revenues/ m2 LPP EQUITY STORY 2022/23 AVERAGE STORE SIZE AVERAGE MONTHLY OMNICHANNEL REVENUES/ M2 (m2 ) 2,500 2019/20 PLN m 2020/21 2021/22 2022/23 Price tag (13M) (PLN) 2,000 25 69 64 58 86 LPP GROUP 671 500 715 869 01 Poland 697 528 740 811 1,500 Export 639 487 70

  26. Slide 26: Gross profit margin to improve

    Gross profit margin to improve LPP EQUITY STORY 2022/23 KEY FACTORS INFLUENCING GROSS PROFIT MARGIN Meeting customer FX – some 90% expectations – we focus Sinsay brand development – Production inflation – 01 on meeting the needs of purchases are made Sinsay is a value-for-money higher production cos

  27. Slide 27: High operating leverage business

    High operating leverage business LPP EQUITY STORY 2022/23 AVERAGE MONTHLY SG&A COSTS/M2 VS SG&A AS % SG&A COSTS (IAS17) SALES (PLN, %, IFRS16) 420 42% 50% Variable 45% costs HQs + PLN 370 43% 48% 39% ecomm costs 320 49% 50% 01 55% 270 46% 220 44% 02 170 341 368 289 Fixed Costs of EFFICIENT 120 247 4

  28. Slide 28: FCFF to improve 2023/24 onwards

    FCFF to improve 2023/24 LPP EQUITY STORY onwards 2022/23 NOPAT  Positive NOPAT despite divesture of the Russian business.  Sizeable online and offline growth due to the development FCFF GENERATION of omnichannel sales.  Cost efficiency to be maintained due to further cost 01 reductions. 2021/22 P

  29. Slide 29: Safe net debt situation

    Safe net debt situation LPP EQUITY STORY 2022/23 INVENTORY AND INVENTORY/M2 NET DEBT (IFRS16) 2,057 2,016 2.4 4,500 2,200 6,500 4,000 1,900 6,000 1.9 1,572 5,500 2 3,500 1,455 1,600 5,000 3,000 4,500 1.4 01 1,300 4,000 1.5 2,500 3,500 1,000 2,000 3,864 3,000 1.3 1 700 2,500 02 1,500 3,353 2,000 3,79

  30. Slide 30: Dividend policy for the following years

    LPP EQUITY STORY 2022/23 DIVIDENDS Dividend policy for (PLN m) the following years 01 834 798 02 LPP has a long history of dividend payments, 649 EFFICIENT BUSINESS which date back to 2009 (the first year from MODEL which dividend was paid). The only exception to ALLOWING FOR DIVIDEND dividend payme

  31. Slide 31: Targets 2023/24

    TARGETS  Offline revenues 25% YoY growth due to higher floorspace LPP EQUITY STORY (2,340 stores) and positive LFLs. 2022/23  Online revenues - stable YoY.  Group revenue at c. PLN 18bn.  Gross profit margin between 51-53%.  PLN 0.5bn cost reductions (performance marketing, logistics).  EBIT m

  32. Slide 32: A Responsible Company

    LPP EQUITY STORY 01 2022/23 02 01 03 02 03 04 A RESPONSIBLE COMPANY 05 A RESPONSIBLE COMPANY 2020-2025 SUSTAINABLE DEVELOPMENT STRATEGY WITH AMBITIOUS TARGETS 32

  33. Slide 33: A history of sustainable action

    ACTION A history of sustainable LPP EQUITY STORY • accession to ACCORD 2022/ • joining ACCORD Pakistan 2022/23 2013 agreement 23 • joining amfori BSCI • establishing of a factory • joining Canopy 2014 audit department 2021 • joining Cotton made 01 • resignation from angora in Africa 02 • establishin

  34. Slide 34: Sustainable development strategy 2020-2025

    Sustainable development strategy 2020-2025 LPP EQUITY STORY 2022/23 4 STRATEGIC PILLARS: 1 2 3 4 01 PACKAGING AWARE – SUSTAINABLE PRODUCT AND CHEMICAL SAFETY PLASTIC UNDER DEVELOPMENT IN HQs PRODUCTION IN PRODUCTION 02 CONTROL AND SALES NETWORK 03 2025 A RESPONSIBLE COMPANY 50% of Reserved clothing

  35. Slide 35: Main activities for sustainable development in 2022/23

    Main activities for sustainable LPP EQUITY STORY 2022/23 development in 2022/23 01 02 PLASTIC DECARBONISATION  we continued our activities under  we defined ambitious 03 the “Roadmap to Zero” initiative decarbonisation targets and A RESPONSIBLE led by ZDHC, submitted these to SBTi COMPANY  in e-c

  36. Slide 36: We use more sustainable materials for our collections

    LPP EQUITY STORY 2022/23 We use more sustainable materials for our 01 collections 02 03 29.4% A RESPONSIBLE COMPANY 18.2% 17.1% 14.2% 12.0% 7.4% More sustainable cotton More sustainable polyester More sustainable cellulose fibres 2021/22 2022/23 36

  37. Slide 37: We measure our carbon footprint

    We measure our carbon footprint LPP EQUITY STORY 2022/23 LPP Group GHG emissions in tones of CO2e, 2022/23 Scope 3 GHG emissions of LPP Group by sources Scope 1 2% 2% 6% 01 13,762 Scope 2 11% 02 7,828 7% 03 Scope 3 65% A RESPONSIBLE COMPANY 7% 2,631,556 Calculations were made for all 15 categories,

  38. Slide 38: Due diligence to respect human and labour rights

    We carry out due diligence LPP EQUITY STORY processes to respect human 2022/23 and labour rights Sourcing only from those suppliers who have signed our Code of Conduct. Joining amfori BSCI - an international association working for more 01 transparent and sustainable trade. 323 audits conducted by L

  39. Slide 39: ESG topics

    WE REPORT USING INTERNATIONAL STANDARDS AND FRAMEWORKS LPP EQUITY STORY 2022/23 NFRD 01 02 WE ARE RATED BY: 03 A RESPONSIBLE COMPANY WE ARE PART OF ESG INDICES WIG ESG MSCI We are rated in WE ARE MEMBER: ESG TOPICS 39

  40. Slide 40: Back-up

    LPP EQUITY STORY 2022/23 40 BACK-UP

  41. Slide 41: Sinsay brand profile

    LPP EQUITY STORY 2022/23 737 stores KEY BRAND FEATURES The lates trends in affordable prices 949 m2 TARGET CUSTOMERS store size Women, men, teenagers, children, newborn YEAR OF LAUNCH 17 2013 markets online ADVERTISING Social media 20 markets offline 41

  42. Slide 42: Sinsay

    Sinsay LPP EQUITY STORY 2022/23 2021/22 Key data 2019/20 2020/21 2021/22 2022/23 REVENUES restated Revenues (PLN m) 1,282.5 1,737.8 4,586.6 3,579.3 6,162.0 (PLN m) 6,162 No. of stores 324 434 743 501 737 Store size (m2) 535 760 927 879 949 3,579 Floorspace (ths, m2) 173.3 329,8 689.1 440.1 699.6 1,7

  43. Slide 43: Reserved brand profile

    LPP EQUITY STORY 2022/23 352 stores KEY BRAND FEATURES Anchor brand with broad customer base 1,618 m2 TARGET CUSTOMERS store size Women, men, children, newborn YEAR OF LAUNCH 34 1998 markets online ADVERTISING International stars like Cindy Crawford, Kate Moss, Georgia May Jagger, Kendall Jenner and

  44. Slide 44: Reserved

    Reserved LPP EQUITY STORY 2022/23 2021/22 Key data 2019/20 2020/21 2021/22 2022/23 REVENUES restated Revenues (PLN m) 4,369,7 3,466.7 5,386.3 4,574.1 5,598.2 (PLN m) 5,598 No. of stores 454 440 447 363 352 4,370 4,574 3,467 Store size (m2) 1,464 1,533 1,589 1,608 1,618 Floorspace (ths, m2) 664.8 674

  45. Slide 45: Cropp brand profile

    LPP EQUITY STORY 2022/23 325 stores KEY BRAND FEATURES Streetwear brand influenced by contemporary culture and music 472 m2 TARGET CUSTOMERS store size Teenagers (boys and girls) YEAR OF LAUNCH 17 2004 markets online ADVERTISING Partner of artistic and street art events 18 markets offline 45

  46. Slide 46: Cropp

    Cropp LPP EQUITY STORY 2022/23 2021/22 Key data 2019/20 2020/21 2021/22 2022/23 REVENUES restated Revenues (PLN m) 1,288.7 972.3 1,526.5 1,103.4 1,357.3 (PLN m) 1,289 1,357 No. of stores 360 369 398 304 325 1,103 972 Store size (m2) 411 450 481 459 472 Floorspace (ths, m2) 147.9 166.1 191.5 139.5 15

  47. Slide 47: Mohito brand profile

    LPP EQUITY STORY 2022/23 331 stores KEY BRAND FEATURES An optimistic fashion brand 472 m2 TARGET CUSTOMERS Teenagers (boys and girls) store size YEAR OF LAUNCH 2001 (at LPP since 4Q08) 17 markets online ADVERTISING Artistic events partner and music sponsor 18 markets offline 47

  48. Slide 48: House

    House LPP EQUITY STORY 2022/23 2021/22 Key data 2019/20 2020/21 2021/22 2022/23 REVENUES restated Revenues (PLN m) 1,135.3 875.3 1,294.9 1,053.0 1,287.9 (PLN m) 1,288 No. of stores 318 332 368 300 331 1,135 1,053 Store size (m2) 401 442 471 461 472 875 Floorspace (ths, m2) 127.4 146.8 173.4 138.2 15

  49. Slide 49: House brand profile

    LPP EQUITY STORY 2022/23 217 stores KEY BRAND FEATURES Comfort and elegance; business and casual 435 m2 TARGET CUSTOMERS store size Women YEAR OF LAUNCH 17 2008 (at LPP since 4Q08) markets online ADVERTISING Super models (Anna Jagodzińska, Anja Rubik, Zuzanna Bijoch) 18 markets offline 49

  50. Slide 50: Mohito

    Mohito LPP EQUITY STORY 2022/23 2021/22 Key data 2019/20 2020/21 2021/22 2022/23 REVENUES restated Revenues (PLN m) 986.9 707.7 1,143.9 957.2 1,314.2 (PLN m) 1,315 No. of stores 283 278 286 221 217 987 957 Store size (m2) 395 414 428 427 435 708 Floorspace (ths, m2) 111.7 115.2 122.5 94.3 94.4 Sales

  51. Slide 51: Marketing changes along with our customers

    Marketing changes along with our customers LPP EQUITY STORY 2022/23 BLANCA MIRÓ FOR ATHLEISURE RESERVED BELL x SINSAY RESERVED x KUBOTA Cooperation with a Spanish Reserved and Kubota joined In cooperation with the Polish fashion influencer, forces and presented a joint, cosmetics company Bell, recog

  52. Slide 52: Network development

    Network development LPP EQUITY STORY 2022/23 Floorspace (ths m2) 31.01.2019 31.01.2020 31.01.2021 31.01.2022 31.01.2023 Sinsay 102.7 173.3 329.8 689.1 699.6 Poland 59.8 78.4 113.8 206.5 273.8 Europe 20.2 50.7 89.6 157.6 348.5 Other regions 22.7 44.2 126.3 325.0 77.3 Reserved 605.0 664.8 674.7 710.2

  53. Slide 53: Network development details at the end of I.2024

    Network development details at the end of I.2024 LPP EQUITY STORY 2022/23 2 Floorspace (ths m ) 31.01.2023 31.01.2024 Nom. growth Growth YoY Number of stores 31.01.2023 31.01.2024 Nom. growth Growth YoY Sinsay 699.6 948.9 249.2 36% Sinsay 737 976 239 32% Poland 273.8 350.4 76.6 28% Poland 328 400 72

  54. Slide 54: Geographic LPP's footprint

    Geographic lpp’s footprint LPP EQUITY STORY 2022/23 POLAND - ESTABLISHED POSITION DOMESTICALLY Since the beginning, store development took place in Poland. As a result, Poland is LPP's largest market, generating 43% of the group's revenue in 2022/23. EUROPE – RETAIL PRESENCE ACROSS EUROPE  OTHER CE

  55. Slide 55: Sinsay dominated floorspace growth

    Sinsay dominated floorspace growth LPP EQUITY STORY 2022/23 FLOORSPACE GROWTH BY BRANDS FLOORSPACE BY BRANDS ths m2 ths m2 2019/20 2020/21 2021/22 2022/23 LPP GROUP 1,230.9 1,435.4 1,888.1 1,674.4 526 -95 15 Sinsay PL 78.4 113.8 206.5 273.8 5 29 -6 1,674.4 Sinsay EX 94.8 216.0 482.6 425.8 Reserved P

  56. Slide 56: SEE main contributor to floorspace growth

    SEE main contributor to floorspace growth LPP EQUITY STORY 2022/23 FLOORSPACE GROWTH BY REGIONS FLOORSPACE BY REGIONS ths m2 ths m2 2019/20 2020/21 2021/22 2022/23 245 -3 -153 1,673.4 LPP GROUP 1,230.9 1,435.4 1,888.1 1,673.4 101 30 223 1,230.9 Poland 530.0 566.9 677.2 752.5 Europe 319.7 370.7 460.8

  57. Slide 57: Sinsay as a key revenue contributor

    Sinsay as a key revenue contributor LPP EQUITY STORY 2022/23 REVENUES BY BRANDS REVENUES BY BRANDS PLN m 2021/22 PLN m 2019/20 2020/21 2021/22 2022/23 restated LPP GROUP 9,221.7 7,848.1 14,029.7 11,338.8 15,926.5 Sinsay PL 689.9 790.1 1,585.8 1,585.8 2,316.1 153 328 48 15,927 1,228 69 Sinsay EX 592.

  58. Slide 58: Poland and SEE region fuel revenue growth

    Poland and SEE region fuel revenue growth LPP EQUITY STORY 2022/23 REVENUE GROWTH BY REGIONS REVENUES BY REGIONS PLN m PLN m 2019/20 2020/21 2021/22 2022/23 513 15,927 LPP GROUP 9,221.7 7,848.1 14,029.7 15,926.5 2,070 -26 1,338 369 Poland 4,418.7 3,397.7 5,513.0 6,860.4 2,442 Europe 2,573.2 2,504.3

  59. Slide 59: Gross profit margin affected by many factors

    Gross profit margin affected by many factors LPP EQUITY STORY 2022/23 QUARTERLY GROSS PROFIT MARGIN 2022/23 PURCHASES BY REGION Other countries COVID-19 Poland 11.9% 0.5% 60.5% 58.8% 58.3% Turkey 56.6% 6.0% 54.9% 54.6% Bangladesh 52.0% 37.9% 51.9% 54.0% 50.0% 53.4% 48.2% 51.0% 51.2% Mjanma 49.3% 47.

  60. Slide 60: We control SG&A costs

    We control SG&A costs LPP EQUITY STORY 2022/23 SG&A/M2 SG&A COSTS (PLN monthly) (PLN m, from 2019/20 IFRS16) 6,702 5,058 3,371 3,936 3,848 2,503 341 368 2,740 2,355 289 247 3,331 2,555 1,196 1,492 2019/20 2020/21 2021/22 2022/23 2019/20 2020/21 2021/22 restated 2022/23 restated Note: 2021/22 data re

  61. Slide 61: Costs of own stores under control

    Costs of own stores under control LPP EQUITY STORY 2022/23 COSTS OF OWN STORES/M2 2022/23 COSTS OF OWN STORES SPLIT (PLN monthly, IAS17) (IAS17) 200 184 Rental costs 167 Other costs 151 34% 59 33% 61 57 48 53 38 50 61 89 64 61 62 2019/20 2020/21 2021/22 2022/23 restated HR costs 33% Rental costs HR

  62. Slide 62: Group exposure (excluding IFRS16)

    Group exposure (excluding IFRS16) LPP EQUITY STORY 2022/23 REVENUES COSTS 93% US$ Stores in Poland & Wholesale PLN 6% EUR MANUFACTURERS 43% PLN 1% PLN revenues 57% FX Stores in Czech Rep., Hungary, revenues LC/PLN Bulgaria, Romania, Serbia, UK Stores in Slovakia, Lithuania, Latvia, Estonia, Germany,

  63. Slide 63: Short-term changes in working capital

    Short-term changes in working capital LPP EQUITY STORY 2022/23 CASH CYCLE WORKING CAPITAL (days) (PLN m) -34 -56 -4 -10 239 244 246 944 193 139 194 183 169 5,068 3,864 130 3,353 3,164 5 7 5 14 2019/20 2020/21 2021/22 2022/23 2021/22 2021/22 2022/23 2022/23 Receivables (days) Inventory (days) Liabili

  64. Slide 64: Supply chain management as a source of financing

    Supply chain management as a source of financing LPP EQUITY STORY 2022/23 SUPPLY CHAIN FINANCE – SCF (SUPPLIER FINANCING PROGRAMME) BENEFITS FOR LPP: BENEFITS FOR SUPPLIERS:  Extended payment periods  Possibility to discount invoices on invoices for goods purchased. BANKING for LPP before the paym

  65. Slide 65: Capex supports LPP's development

    Capex supports LPP’s development LPP EQUITY STORY 2022/23 CAPEX SPLIT 2022/23 CAPEX SPLIT (PLN m) (PLN m) 1,157 945 960 825 421 Logistics & 275 other 203 413 36% 670 736 622 547 Stores 64% 2019/20 2020/21 2021/22 2022/23 restated Store capex Logistics & other Note: 2021/22 data restated (excludes Ru

  66. Slide 66: Constant growth despite pandemics and war

    Constant growth despite pandemics and war LPP EQUITY STORY 2022/23 2021/22 PLN m, IFRS16 2019/20 2020/21 2021/22 2022/23 YoY restated Revenues 9,221.7 7,848.1 14,029.7 11,338.8 15,926.5 40.5% Gross profit on sales 4,940.2 4,083.9 8,107.2 6,490.8 8,130.9 25.3% Gross profit margin 53.6% 52.0% 57.8% 57

  67. Slide 67: Strong Balance Sheet

    Strong Balance Sheet LPP EQUITY STORY 2022/23 PLN m, IFRS16 31.01.2020 31.01.20221 31.01.2022 31.01.2023 Non-current assets 5,870.7 5,620.6 7,027.7 7,351.8 fixed assets 2,312.4 2,439.8 2,760.5 3,336.0 intangibles (inc. goodwill) 413.3 397.2 405.1 446.3 right-of-use asset 3,000.2 2,589.1 3,412.3 2,88

  68. Slide 68: Cash flows impacted by the war in Ukraine

    Cash flows impacted by the war in Ukraine LPP EQUITY STORY 2022/23 2021/22 PLN m, IFRS16 2019/20 2020/21 2021/22 2022/23 restated Pre-tax profit 737.1 -116.5 1,232.0 937.8 1,362.8 D&A 1,017.2 1,073.0 1,147.7 943.4 1,129.2 NWC 48.0 113.2 145.0 253.4 -2,292.8 Operating CF 1,572.6 1,074.5 3,003.7 2,214

  69. Slide 69: LPP's success story

    1991 Creation of Mistral company by Marek Piechocki and Jerzy Lubianiec No. of stores 10 1995 Mistral transformed into LPP 1997 Opening office in Shanghai LPP EQUITY STORY 50 1998 Launch of Reserved – first retail store opened STORY 2022/23 2001 IPO on the Warsaw Stock Exchange 2002 Start of interna

  70. Slide 70: Corporate governance

    Corporate governance LPP EQUITY STORY 2022/23 APPOINTS APPOINTS GENERAL SHAREHOLDER SUPERVISORY MANAGEMENT MEETING BOARD BOARD  5 to 6 members  appointed for a 5-year term  2 to 6 members  appoints Supervisory and  appointed for a 5-year term Management Board members AUDIT COMMITTEE  CEO can r

  71. Slide 71: Management Board

     Since 1989 in the retail business.  Founded LPP’s predecessor in 1991. CEO of LPP Marek Piechocki since 2000. (62)  Responsible for LPP’s strategy and LPP EQUITY STORY CEO & Founder development of brands: Reserved, Cropp, 2022/23 House.  At LPP since 2008. Since 2015 LPP’s CFO (Chief Financial

  72. Slide 72: Supervisory Board

    Miłosz Wiśniewski  An MBA graduate (Paris). Since 2016 CEO (59) of Robod SA. Chair of the  2012-15 CFO of Boryszew SA. Earlier CFO and LPP EQUITY STORY Supervisory Board, CEE & SEE Director at CPW. 2022/23 Independent  Graduated from University of Gdańsk. Alicja Milińska  From 1995 to 2021, Alic

  73. Slide 73: ESG is high on our agenda

    ESG is high on our agenda LPP EQUITY STORY 2022/23 Supervisory Board The Management Board CFO of LPP SA Procurement and ESG director ESG Committee Sustainable Social Policy & Internal Control & Development Non-financial Risk Management Department Reporting Team Department 73

  74. Slide 74: Inclusion of climate risks into decision of the board

    Inclusion of climate risks into decision of the board LPP EQUITY STORY 2022/23 SINCE 2022/23 WE USE TCFD METHODOLOGY TO CLIMATE-REALATED RISKS Obtaining Sale and customer Risk Scenario Production Distribution raw materials satisfaction Risk of limited availability of producers and subcontractors <2°

  75. Slide 75: A family company controlled by its founders

    A family company controlled by its founders LPP EQUITY STORY 2022/23 SHAREHOLDERS BY EQUITY (JUNE 2023) SHAREHOLDERS BY VOTES (JUNE 2023) total no. of shares 1,855,190 total no. of votes 3,255,190 Semper Simul Foundation 31.2% Free-float 33.5% Semper Simul Foundation Free-float 60.8% 58.8% Sky Found

  76. Slide 76: Consistently outperforming the WIG20 Index

    Consistently outperforming the WIG20 Index LPP EQUITY STORY 2022/23 LPP’S SHARE PRICE RELATIVE TO WIG 20INDEX 20,000 LPP WIG20 relative 15,000 10,000 5,000 0 31/01/2019 31/07/2019 31/01/2020 31/07/2020 31/01/2021 31/07/2021 31/01/2022 31/07/2022 31/01/2023 TICKERS PERFORMANCE MARKET DATA WSE LPP 1Y

  77. Slide 77: Glossary

    Poland Retail sales in Poland and other revenues of LPP SA. GLOSSARY Region including: Czech Republic, Slovakia, Hungary and Poland unless otherwise CEE LPP EQUITY STORY stated. 2022/23 Baltic Region including: Lithuania, Latvia, Estonia. Other regions Region including: Ukraine, Belarus and Kazakhst

  78. Slide 78: Contact

    discoverlpp LPP EQUITY STORY 2022/23 company/lpp-sa discoverlpp discoverlpp CONTACT GDAŃSK HQs CONTACT FOR INVESTORS CONTACT FOR MEDIA INVESTOR RELATIONS DEPARTMENT Łąkowa 39/44, 80-769 Gdańsk Email: [email protected] Email: [email protected] Magdalena Kopaczewska Tel. +48 58 76 96 900 IR M

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