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 calls for continued growth by focusing on three key areas:

  • continuation of rapid organic growth in the number of stores,
  • continued growth in LFL sales revenue in the existing store network,
  • consistent improvement in profitability.
  

Continued fast organic growth in the number of stores

Under the strategy crafted in 2016 the Dino Polska Management Board intended to increase the number of its stores from 557 at the end of June 2016 to having more than 1,200 stores open by the end of 2020. The Dino Group has consistently pursued this objective by opening 123 new stores in 2016, 147 in 2017, 202 in 2018, 243 in 2019 and 255 in 2020, thereby increasing the selling area by 24.4%, 23.8%, 27.3%, 25.7% and 21,4%, respectively. As a result, the strategic objective was exceeded one year earlier than originally planned. At the end of 2019, the network consisted of 1,218 Dino stores and at the end of 2020 the network numbered 1,473 Dino stores. The Management Board of Dino Polska intends to maintain the high pace of growth of the selling area in Dino stores in subsequent years, too.

Considering the relatively small share of the Dino network in the value of the retail grocery market in Poland, the Management Board of Dino Polska plans to continue to leverage the network’s ability to grow organically in its current form by doing the following:

  • continuing to drive up its store density in its current areas of operation and
  • steadily expanding in new regions, which ultimately should have a similar saturation of Dino stores to other regions.

In the opinion of the Company’s Management Board, the attainment of this goal will be supported by the potential of the Polish market, still leveraged by the Company only to a small extent, extensive experience of Dino Polska’s management in selection of attractive locations and uniform store format which supports fast opening of new stores.

In the next few years the Dino Group intends to make additional investments supporting new openings, including:

  • regularly secure sites for further development in existing and new regions;
  • build further distribution centers, assuming that one center is able to service approx. 350 stores;
  • develop the production capacities of the meat processing plant operated by Agro-Rydzyna through its expansion and replacement of the production lines with new ones, and commissioning another meat processing plant in a new location.

  

Continued delivery of LfL sales growth

Dino Polska anticipates that it will be able to continued growing LfL sales revenue in the current store network. For this purpose the Company will undertake efforts to increase the number of clients doing their shopping in Dino stores and the value of purchases per client.

Dino Polska is aware of the key trends contributing to a change in the lifestyle led by consumers and the customs concerning the purchases of groceries, also including the following:

  • looking for stores close to the place of residence and striving for convenience when making purchases;
  • demanding high quality and branded products; and
  • ever higher health awareness and greater interest in fresh and healthy food, including Polish products.

The model adopted by the Dino Group of having modern medium-sized supermarkets situated close to peoples’ place of residence is aligned to the consumer trends described above. The Company expects that this will continue to translate into the ability to sustain a high growth rate of opening new stores and to sustain a high pace of sales growth in the current store network (LfL) compared to the overall market.

The Company intends to continue an active product range policy, providing for constant adaptation of the Dino stores’ offering to customer expectations, which will evolve together with consumers’ increasing disposable income.

The Dino Group’s ability to utilize:

  • direct access to reputable domestic and regional producers of branded products,
  • its own Agro-Rydzyna meat processing plant and
  • efficient logistics network to make daily deliveries of fresh products as needed enables the Dino Group to derive benefit from these trends, which should support revenue growth in the current store network (LFL).

  

Continued improvement in profitability

In past years the Dino Group has generated long-lasting growth in its gross margin on sales and its EBITDA margin and it expects that it will be capable of improving its profitability by increasing the magnitude of its operations, the favorable nature of its business model and several strategic initiatives. They comprise:

  • benefits of scale leading to further gross margin growth due to the rapid store network expansion and the sales growth in the current store network, and consequently, the rapidly growing volume of purchased products, making it possible to enhance the commercial conditions with business partners;
  • greater cost effectiveness at the individual store level thanks to the systematically conducted actions to cut the costs of running a store;
  • operational leverage pushing up the EBITDA margin on account of relatively fixed costs rising more slowly than revenue;
  • planned investments to optimize the logistics network by opening further distribution centers, thereby shortening the supply routes and this should make it possible to further improve the cost effectiveness of transport; and
  • continuing the Dino Group’s effective and savings-minded marketing policy.

Dino Polska anticipates that all these strategic initiatives and characteristic attributes of its business model will contribute to further improvement in the Company and Dino Group’s profitability.

Company profile more

Management Board and Supervisory Board more

The history of our growth more