Dino

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”). Securities of the Company have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the U.S. Securities Act. Neither the Prospectus nor the securities of the Company covered thereby have been or will be registered, approved or notified in any country other than the Republic of Poland, specifically in accordance with the laws enacted based on Directive 2003/71/EC of the European Parliament and of the Council, as amended, and they cannot be offered or sold outside the territory of the Republic of Poland (including within the territory of other countries of the European Union or the United States of America, Canada, Japan or Australia) unless in any relevant state such offer or sale could be effected in compliance with the law without the need for the Company, the Selling Shareholder or their respective advisors for the purpose of the Offering to comply with any additional legal requirements. Any investor residing in or having its registered office outside the Republic of Poland should review the relevant regulations of Polish law as well as the regulations of other countries which may apply thereto in connection with the participation in the Offering. WE HEREBY INFORM YOU THAT THE MATERIALS AND INFORMATION TO WHICH YOU WILL BE GRANTED ACCESS AND THE USE OF SUCH MATERIALS AND INFORMATION: (I) ARE SUBJECT TO THE ABOVE RESTRICTIONS; (II) ARE DIRECTED TO PERSONS RESIDING IN AND ACCESSING THIS WEBSITE FROM THE TERRITORY OF THE REPUBLIC OF POLAND; (III) ARE NOT DIRECTED TO U.S. PERSONS OR PERSONS ACTING FOR THE ACCOUNT OF, OR ON BEHALF OF, A U.S. PERSON (AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT); (IV) ARE NOT DIRECTED  TO PERSONS RESIDENT OR WITH A  REIGSTERED OFFICE IN CANADA, JAPAN OR AUSTRALIA, OR IN ANY OTHER JURISDICTION WHERE ACCESSING THE MATERIALS AND INFORMATION CONTAINED ON THIS WEBSITE WOULD CONSTITUTE A VIOLATION OF THE APPLICABLE LOCAL LAWS OR WOULD REQUIRE REGISTRATION OR OBTAINING A PERMIT. Please note that reviewing and accessing these materials in violation of the above may constitute a violation of securities laws, in particular in Poland and the United States.

Strategy

The Dino Group’s strategy assumes further growth through focusing on three key areas: (i) continued fast organic growth of the number of stores; (ii) continued delivery of LFL sales growth; and (iii) continued improvement in profitability.

 

Continued fast organic growth in the number of stores

The Dino Group plans to exceed the number of 1,200 new store openings by the end of 2020 and believes there is a market capacity for at least 2,700 Dino stores in Poland. This estimate was based on the careful assessment of the current competitive landscape and the density of coverage of each region with stores of the Dino Group’s competitors.

The Dino Group plans leveraging its organic roll-out capabilities in the current format by: (i) increasing the density of store coverage in its current areas of operation: and (ii) gradually expanding in new regions.

Continued delivery of LFL sales growth

The goal of the Dino Group is to continue to deliver LFL sales growth. To achieve this objective, the Company will take actions aimed at increasing the number of shoppers in Dino stores and the amount of sales per shopper.

The Management Board is aware of key trends affecting changes in consumers’ lifestyles and grocery shopping habits, including:

  • seeking a close and convenient shopping experience;
  • demand for higher quality and branded products; and
  • increasing health-consciousness and a focus on fresh and healthy food, including Polish products.

The proximity supermarket format adopted by the Dino Group matches the trends in consumer behaviour described above and therefore it should allow the Dino Group to maintain its dynamic roll-out and fast LFL sales growth compared to the market.

 

Continued improvement in profitability

The Dino Group has been able to drive a consistent increase in its gross and EBITDA margins in the years 2014 – 2016. The aim is to continue to improve the Dino Group’s profitability through increasing the scale of its business, the favourable characteristics of its business model and a number of strategic initiatives. These include:

  • economies of scale leading to further gross margin growth due to fast roll-out and increased LFL sales and, consequently, rapidly increasing purchasing volumes helping to improve purchasing terms;
  • significant operational leverage leading to further growth in the EBITDA margin due to a number of relatively fixed cost items growing at a lower rate than sales;
  • planned investment in the optimisation of the logistics network with the opening of a fourth distribution centre by the end of 2018 resulting in the shortening of delivery routes and leading to a further decrease in transport costs relative to sales;
  • continuation of the current HR policy based on the motivational salaries; and
  • continuation of the Dino Group’s effective and cost efficient marketing policy.

Company profile more

Management Board and Supervisory Board more

The history of our growth more