„DINO POLSKA” S.A. – publikacja prospektu i rozpoczęcie oferty publicznej

IMPORTANT INFORMATION

Prior to obtaining access to the information placed on this website, please read carefully the following important information regarding the terms of access to this website and of the use of the information contained herein. Please note that the important information presented below may be changed or updated. Consequently, it should be read and analysed in whole whenever this website is accessed in the future. THE MATERIAL CONTAINED ON THIS WEBSITE IS NOT INTENDED FOR RELEASE, DISSEMINATION, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE TERRITORY OF THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, DISSEMINATION, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE APPLICABLE LAWS OR WOULD REQUIRE REGISTRATION. The materials to which you will gain access relate to or are connected with (i) an initial public offering in the territory of Poland of up to 48,040,000 ordinary shares (the “Sale Shares”) in Dino Polska S.A with its registered office in Krotoszyn (the “Company”), with a nominal value of PLN 0.10 each (the “Offering”), conducted by Polish Sigma Group S.à r.l. (the “Selling Shareholder”), and (ii) with the seeking of the admission and introduction of 98,040,000 ordinary shares with a nominal value of PLN 0.10 each (the “Shares”), including the Sale Shares, to trading on the regulated market of the Warsaw Stock Exchange (the “Admission”). On 17 March 2017, the Financial Supervision Authority approved the prospectus (the “Prospectus”) prepared in connection with the Offering and the Admission. The Prospectus (in Polish), together with any supplements and update communications thereto, and with the announcement of the final number and price of the Sale Shares offered in the Offering (upon its drafting and publication), will be posted on, and will, during its validity period, continue to be available in an electronic form on the Company’s website (www.grupadino.pl) and at the website of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna Oddział – Dom Maklerski PKO Banku Polskiego w Warszawie (www.dm.pkobp.pl) – solely for information purposes. The Prospectus is the sole legally binding offering document which contains, for the purposes of the Offering and the Admission, information about the Company, the Shares (including the Sale Shares) and the Offering. Materials posted on this website include the Prospectus with any supplements and update communications thereto, if any, the announcement of the final number and price of the Sale Shares offered in the Offering (upon its drafting and publication) and information which is either of promotional nature for the purposes of the Offering and the Admission or constitutes information disclosed by the Company to the public in the performance of the Company’s disclosure obligations under the applicable laws and regulations. These materials do not constitute an offer for the sale of securities in the United States, Canada, Japan, Australia, or any other jurisdiction where such offer for sale would constitute a violation of the applicable laws or would require registration. Securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933 (the “U.S. Securities Act”). 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Dino Polska in H1 2018: the size of the business continues to grow with high LFL sales

In H1 2018 Dino Polska’s consolidated revenues totaled PLN 2,709.1 million and were PLN 691 million (34.2%) higher than a year ago. Significant top line improvement is the outcome of Dino’s ongoing rapid store network roll-out to open new stores with revenues growing at a double-digit pace in the current store network (like for like, LfL). LfL sales growth in H1 2018 was 14.7% (with food inflation of 3.6%), versus identical growth last year. In conjunction with its growing business size, the Dino Group has posted higher business profitability that is steadily climbing. The EBITDA margin in H1 2018 was 8.5%, i.e. 0.2 percentage points above the corresponding period of 2017. The Group’s net profit shot up 63,9% to PLN 126.5 million.

In Q2 2018 alone the Dino Group generated 28% growth in revenues bringing them to PLN 1,423.5 million. Consolidated net profit in Q2 was PLN 70.5 million (+51% r/r).

At the end of June 2018, the Dino network numbered 849 stores, 172 more than in the corresponding period of last year. 74 new stores were opened in H1 2018.

Dino Polska continues to pursue rapid network expansion by opening new stores and securing new sites to continue its expansion. The selling area in the Dino stores at the end of June 2018 had grown 26.4% yoy to 324.9 thousand square meters.

In accordance with its strategy, Dino Polska plans to exceed 1,200 stores by the end of 2020. The fourth distribution center located in the town of Rzeszotary in the Lower Silesian region will support the network’s further expansion. This distribution center will begin operations before the end of 2018. The Group estimates that its CAPEX in 2018 will be PLN 600-650 million; in H1 2018 the Group’s capital expenditures totaled PLN 288 million.

“H1 2018 has brought more growth in the size of our business and very robust performance despite last year’s high base. We continue to deliver rapid Dino store network rollout and we are preparing more sites to open new stores. We are intensifying our footprint in the western part of Poland, but we are also expanding our presence more strongly in the central and northern parts of the country. We will soon open a new distribution center in Lower Silesia, the second largest region measured by the number of stores we have there. We will open more stores and this year we intend to surpass last year’s number of store openings (147). Our LFL sales result is very important to us; our goal is to keep it in the double digits. Business conditions are conducive to our operations; we see a stable level of consumption”, says Szymon Piduch, CEO of Dino Polska S.A.

Market environment

The growing retail grocery market in Poland and the favorable macroeconomic environment are conducive to the Dino network’s further expansion.

The attractive labor market, growing income enhancing Poles’ purchasing power and consumer price growth are acting as a boost to the overall sector and Dino’s segment – consisting of mid-sized supermarkets located close to customers’ places of residence. According to the Central Statistical Office (GUS), the Polish economy grew at a pace of 5.1% in Q2 2018.

The European Commission is forecasting growth in the Polish economy at a level of 4.6% in 2018 and 3.7% in 2019. The Commission’s report suggests that private consumption will continue to be the major driver of growth.

More information regarding Dino Polska S.A.:

Dino is a nationwide network of medium-sized supermarkets located in close proximity to where customers live. Its grocery stores are open every day (except for non-trade Sundays) from 6:00 a.m. to 11:00 p.m.¹. The Dino network is one of the fastest growing retail grocery trade networks in Poland. At the end of September 2020 it consisted of 1,371 stores across Poland.

The Dino Group’s business model blends the advantages offered by the format of conveniently-located mid-sized supermarkets with the capability of rapidly opening new stores and offering an attractive assortment primarily entailing attractively-priced branded and fresh products.

Dino stores offer customers approximately 5 thousand stock keeping units (SKUs). Most of the SKUs are either fresh products or branded products, including a full range of groceries, household chemicals and cosmetics as well as small household articles and appliances. Every Dino store has a staffed meat counter, with the Agro-Rydzyna meat processing plant supplying high quality meat and cold cuts.

The Dino Group’s logistics network consists of five distribution centers located in Krotoszyn, Jastrowie, Wolbórz, Rzeszotary and Łobez. Its geographic range makes it possible to deliver fresh products to all of the stores in Dino’s network every day of the week.

At the end of September 2020 the Dino Group had 24.1 thousand employees.

The Company has been listed on the main floor of the Warsaw Stock Exchange since April 2017. Dino Polska S.A. is majority-owned by Polish capital.

^{1 Some stores are open for less than the standard working hours in connection with aligning their operation to local regulations.}