„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 2017: record-breaking number of openings, rapid growth of business size, double-digit LfL sales growth, robust profitability

The Dino Group’s consolidated sales revenues in 2017 totaled PLN 4,515.9 million, up 34% from last year. 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 2017 was 16.2% compared to 11.3% in the corresponding period of last year.

EBITDA[1] in 2017 climbed 39% to PLN 401.4 million. In turn, the Group’s net profit was PLN 213.6 million, signifying 41% growth year on year.

At the end of December 2017, the Dino network numbered 775 stores, 147 more than in the corresponding period of last year. At the same time, Dino Polska has secured 495 sites to build new stores, i.e. 46% more than last year. 57 stores in total were opened in Q4 2017.

In 2017, the Group’s capital expenditures totaled PLN 457 million. The Group estimates its Capex in 2018 will be PLN 650 million. Dino will allocate these funds mainly to store rollout, expansion of its logistics infrastructure and the Agro-Rydzyna meat processing plant.

In 2017, the Group continued the ongoing rapid growth in the size of its business. The 34% growth rate posted in revenues (up PLN 1,146.4 million) year on year is primarily the effect of opening new stores in the Dino network (the network opened 147 stores in 2017) and the growth in sales revenues in existing stores (like for like, LfL) of 16.2% yoy.

In conjunction with its growing business size, the Group has posted robust profitability that is steadily climbing. Its EBITDA margin has edged up to 8.9% (+0.3 p.p. yoy).

THE DINO GROUP’S RESULTS:

PLN million	2017	2016	change yoy %
Sales revenue	4,515.9	3,369.5	+34.0%
LfL sales	16.2%	11.3%	+4.9 p.p.
EBITDA	401.4	288.3	+39.2%
EBITDA margin	8.9%	8.6%	+0.3 p.p.
Net profit	213.6	151.2	+41.3%

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 December 2017, the Group had 775 stores, signifying 147 openings and is a record-breaking number in the Group’s business history.

At the end of 2017, Dino Polska had enlarged its land bank to build new stores to 495 sites (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 and new regulations

The retail grocery market in Poland is growing steadily. Robust market conditions, Poles’ growing income enhancing their purchasing power and consumer price growth are conducive to the growth of the overall sector and Dino’s segment – consisting of mid-sized supermarkets located close to customers’ places of residence.

According to the National Bank of Poland, Poland’s economic growth will be 4.2% in 2018 and 3.8% in 2019. The favorable market context is buoyant to the retail grocery industry in upcoming quarters.

“We are growing rapidly, faster than the market, while preserving a stable and robust level of profitability. In 2017 we generated very strong performance and we significantly enlarged our business size, thereby placing us among the top retail sales companies measured by pace of growth. Last year we opened a record-breaking number of new stores: 147. Our like for like sales in our existing store network at the end of the year and on a quarterly basis have remained persistently high at a double-digit level. We are also ramping up the number of secured sites in our pipeline to open more stores. We are poised to continue growth by opening more own stores. We continue to see extensive opportunities to increase the density of our network in the areas where we already have a presence and to expand into new regions in Poland. In 2018 we would like to exceed last year’s number of new store openings, says Szymon Piduch, CEO of Dino Polska S.A.

“We expect that the positive trends visible on the consumer market in 2017 will also persist in the upcoming quarters. The market environment is conducive to our efforts. We do not see any need to undertake any special measures as a result of the curtailment of Sunday trading. The effective business model we have adopted and our store format that is well-aligned to consumer trends allow us to think positively when it comes to ongoing network rollout”, adds Szymon Piduch.

[1] EBITDA adjusted for the non-recurring cost of the IPO.

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.}