„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 quarter of 2017: 29% increase in revenue, 12.6% increase in LFL sales, growing land bank for further expansion

Dino Polska S.A., one of the fastest-growing supermarket chains in Poland, achieved an increase in sales revenue and profit in the 1^st quarter of 2017.

In 1Q 2017 the Dino Group generated consolidated sales revenue of PLN 910.3 million, as compared to PLN 707.4 million in 1Q 2016, an increase of nearly 29% year-on-year. The dynamic growth in revenue was the result of expansion of the chain with new locations and an increase in like-for-like sales at existing stores of 12.6%, as compared to an 8.4% increase in 1Q 2016.

EBITDA (after an adjustment of nearly PLN 3 million for the one-off costs of the public offering) grew by 29%, to PLN 68.5 million, from PLN 53.1 million a year earlier. In January–March 2017 the Group earned a net profit of PLN 30.4 million, as compared to PLN 23.4 million in 1Q 2016, an increase of 30% year-on-year.

At the end of March 2017 the Dino chain included 639 stores. The Group had also secured 389 locations for new stores, i.e. 25% more than at the end of 1Q 2016. In 1Q 2017 11 new Dino stores were opened. The improved atmospheric conditions in the first few weeks of the 2^nd quarter enabled construction work to resume, contributing to an increase in openings of new stores in subsequent quarters of 2017.

Dino Polska S.A. conducted its initial public offering of shares at the turn of the 1^st and 2^nd quarters of this year. The listing on the main market of the Warsaw Stock Exchange occurred on 19 April 2017 and the public offering was valued at about PLN 1.65 bilion.

DINO GROUP RESULTS IN 1^ST QUARTER OF 2017:

PLN million	1Q 2017	1Q 2016	Change
Sales revenue	910.3	707.4	+28.7%
LFL sales	12.6%	8.4%	+4.2 pp
EBITDA	68.5	53.1	+29.0%
EBITDA margin	7.52%	7.5%	+0.02 pp
Net profit	30.4	23.4	+30.2%

1Q 2017 was another period with an increasing scale of operations by the Dino Group. The nearly 29% rate of revenue growth (by PLN 203 million in value) year-on-year resulted from expansion of the Dino chain to include new supermarkets (the chain grew by 117 locations in 2016) and growth in sales at existing locations (like for like, LFL) by 12.6% y/y.

The Group achieved an operating margin in 1Q 2017 similar to that a year earlier, at 7.5%. In line with its strategy, the Group is continuing its rapid expansion of the Dino supermarket chain, seeking out new locations for its own stores and opening new supermarkets. At the end of the 1^st quarter the Group had secured 389 sites (including plots already purchased and under preliminary purchase agreements). The Group plans to have more than 1,200 stores opened by the end of 2020.

The retail grocery market

In the 1^st quarter of 2017, the retail grocery market in Poland displayed a continuation of the positive trends visible in 2016, such as the encouraging macroeconomic situation, low unemployment, growing wages (including an increase in the gross minimum monthly wage to PLN 2,000 from January 2017) and the government’s Family 500+ benefit program. The good market situation and growing disposable income encourage consumer spending in Poland.

According to a Roland Berger study (from November 2016), overall sales on the market for retail food items in Poland are expected to grow at an average of 3.7% per year through 2020.

Szymon Piduch, CEO of Dino Polska. S.A., commented: “We are pleased with the results achieved in the 1^st quarter. We generated an increase in revenue of nearly 29% and significantly increased our land bank for future expansion of the chain. Along with significant growth in sales, we recorded high margins, similar to those from last year. The nearly 30% rate of sales growth resulted from the expansion of the chain to new locations as well as growth in LFL sales at existing stores of 12.6% in the 1^st quarter. We are also encouraged by the good consumer mood, influenced by such factors as the good macroeconomic situation and Poles’ growing income.”

Szymon Piduch added: “The turn of the 1^st and 2^nd quarters of this year was also an important period for us because of the Company’s public offering, which met with huge interest among both domestic and foreign institutional investors and retail investors in Poland. The confidence in us displayed by investors further motivates us to maintain Dino’s dynamic rate 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.}