„DINO POLSKA” S.A. – Dino Polska S.A. in 2019: consistent execution of its strategy supported by considerable top line growth

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.

Dino Polska S.A. in 2019: consistent execution of its strategy supported by considerable top line growth

In 2019 the Polish grocery store network belonging to Dino Polska S.A. consistently continued to pursue its strategy resulting in further dynamic network development and improved profitability. The Company’s revenue climbed to PLN 7.6 billion, and this was accompanied by higher sales in the current store network (LfL) of 11.6%. In 2019 the Company opened 243 new stores whereby there were 1,218 stores operating across Poland under the Dino brand at the end of December. In 2019 the Company also developed its logistics consisting of four distribution centers at the end of last year, while the construction of another one had been begun. In 2019 the Company earmarked PLN 827.8 million for investments, representing 31% growth over 2018.

Dino Polska S.A.’s revenue was PLN 7.6 billion in 2019, signifying growth in excess of 31% versus the corresponding period of 2018. This was accompanied by 34.1% growth of EBITDA, further improvement in the EBITDA margin to 9.5% and a high rate of sales in current stores (like-for-like, LfL) of 11.6%.

“The growing number of people visiting our stores is a source of pleasure for us. We are constantly striving to earn the trust of our customers and we expend significant effort to align our product assortment to their needs”, says Szymon Piduch, President of the Management Board of Dino Polska S.A.

In parallel, the Company has undertaken initiatives to reduce its environmental impact.

“We are striving to reduce our environmental impact. In the latter half of 2019 we started to install photovoltaic panels on the roofs of Dino stores, which is one of our key projects in environmental policy. Through this investment, our stores will be powered with environmentally-friendly energy from the sun and in coming years will markedly reduce our energy demand from conventional sources”, adds Szymon Piduch.

Total capital expenditures were PLN 827.8 million in 2019 and were mainly spent on store rollout and expansion of logistics. The Company opened 243 new stores during last year. The total selling area topped 472 thousand square meters, up 26% from the year before. 105 new Dino stores launched operations in the fourth quarter of last year alone.

As part of developing its logistics capacity in 2019, the Company completed the process of commissioning its fourth distribution center in Rzeszotary in Lower Silesia and also opened a distribution center in Wolborz in central Poland to replace the previously-leased distribution center located in Piotrków Trybunalski. The construction of another distribution center in Łobez in northwestern Poland also kicked off.

The Dino Group plans that its capital expenditures in 2020 associated with further development will be roughly PLN 950 million.

“We would like to maintain our current pace of growth. We continue to see a lot of space to enhance the density of our network in southwestern Poland and expand into other regions. In accordance with our policy to date, we would like to earmark the entirety of our profits for continued growth. We are poised for the number of new Dino store openings in 2020 to grow at a similar pace to last year’s. In parallel with network rollout, we are working on sustaining high LFL sales growth and continuing to improve our profitability”, recaps Szymon Piduch.

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.}