„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. 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Dino Polska in the first 3 quarters of 2017: continuation of rapid growth in the magnitude of operations, double-digit LfL sales growth, growing profitability

The Dino Polska S.A. Group, one of the fastest growing retail grocery networks in Poland grew its revenues by 33.1% to PLN 1,220.2 million in Q3 2017 while posting LfL sales growth of 16.1% (compared to 10.8% one year ago). EBITDA[1] and net profit shot up by 37.3% (to PLN 108.9 million) and 22.3% (to PLN 63.5 million) yoy, respectively.

The Dino Group’s consolidated sales revenues in the first three quarters of 2017 year-to-date were PLN 3,238.6 million, up 32.2% from last year. That means that the revenues in the first three quarters have reached a similar level to the one the Group generated in the full year of 2016. The rapid revenue growth was driven by network roll-out to open new stores and sales growth in the existing store network (LfL), which in the first three quarters of 2017 was 15.2% compared to 10.5% in the corresponding period of last year.

EBITDA in the first nine months of 2017 rose 37.3% to PLN 275.2 million. The Group generated a net profit of PLN 140.7 million from January to September 2017, signifying growth of 24.2% year on year.

At the end of September 2017, the Dino network consisted of 718 stores, i.e. 129 more stores than in the corresponding period of last year. Concurrently, the Group has secured 469 sites to build new stores, i.e. 41.7% more than last year. Dino opened 90 new stores in the first three quarters of this year as opposed to 78 openings last year. The network opened 41 new stores in Q3 2017 as opposed to 33 in Q3 2016.

During the first three quarters of 2017 the Dino Group continued to grow the magnitude of its operations. The 32% growth rate posted in revenues (up PLN 788.5 million) year on year is primarily the effect of opening new stores in the Dino network (the network opened 90 stores in the first nine months of 2017) and the growth in sales revenues in existing stores (like for like, LfL) of 15.2% yoy.

In conjunction with its growing scale of operations the Group has posted robust profitability that is steadily climbing. The gross margin in the first 9 months of the year increased by 0.15 p.p. yoy; the EBITDA margin hit the level of 8.5%, up 0.32 p.p. yoy.

THE DINO GROUP’S RESULTS IN THE FIRST 3 QUARTERS OF 2017:

PLN million	Q3 2017	Q3 2016	Q3 change	Q1-3 2017	Q1-3 2016	Q1-3 change
Sales revenues	1,220.2	916.6	+33.1%	3,238.6	2,450.1	+32.2%
LfL sales	16.1%	10.8%	+5.3 p.p.	15.2%	10.5%	+4.7 p.p.
EBITDA	108.9	79.4	+37.3%	275.2	200.4	+37.3%
EBITDA margin	8.9%	8.7%	+0.27 p.p.	8.5%	8.2%	+0.32 p.p.
Net profit	63.5	52.0	+22.3%	140.7	113.2	+24.2%

In line with its strategy the Group continues to pursue rapid expansion of the Dino supermarket network by opening new stores it owns and looking for new sites to continue its expansion. At the end of September 2017 the Group had 129 more stores than in the corresponding period of 2016, thereby reaching the number of 718 stores. At the end of September 2017 the Group had enlarged its land bank to 469 sites to build new stores (consisting of purchased plots and preliminary agreements to buy plots). In accordance with its strategy, the Group plans to exceed 1,200 stores by the end of 2020.

Retail grocery market

The retail grocery market is growing regularly. The robust market position, Poles’ growing income and consumer price growth were conducive to the growth of the overall retail grocery market and the proximity segment.

The persistently record-low level of unemployment in Poland (the unemployment rate in October was 6.6%) and the steady improvement in Poles’ economic standing contribute to climbing purchasing power and higher consumption. According to the National Bank of Poland, Poland’s economic growth will be 4.2% in 2017 and 3.6% in 2018. These factors offer a good prognosis for the retail grocery industry in upcoming quarters.

According to the Roland Berger report (November 2016), the proximity segment may be the fastest growing segment of the retail food trade in Poland measured using the compound average growth rate in the number of stores until 2020.

“We are pursuing a strategy predicated on organic growth, continuing rapid growth in the number of stores and sales revenues in our existing store network. As a result, we have posted very robust sales results in the first nine months of the year whose level is close to what we reported in the full year of 2016. At the same time, we have reported rising profitability and consistent growth in our net result. Our like for like sales are persistently high at a double-digit level. In Q3 alone, LFL sales were 16.1%, while on a year to date basis LFL sales in the first nine months of 2017 came in at 15.2%. We are constantly opening new stores. In the full year of 2017 we plan to open at least 140 stores”, says Szymon Piduch, CEO of Dino Polska S.A.

“The market context, including Poles’ growing purchasing power ensuing from the improving economic standing coupled with rising consumer prices are conducive to the retail grocery trade. We believe that the positive trends visible on the consumer market this year will also persist in the upcoming quarters. This, when combined with the attractiveness of our proximity supermarket format should make it possible to maintain the rate of growth seen to date in the scale of operations and high LfL sales growth” adds Szymon Piduch.

[1] Data pertaining to EBITDA and the EBITDA margin are presented in this press release net of the non-recurring costs related to the IPO the Company incurred in Q2 2016 – Q2 2017. These costs are described in detail in the Group’s periodic report for Q3 2017.

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.}