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2Q 2016 RESULTS DISCUSSION 2Q 2017 RESULTS

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Page 1: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

2Q 2016 RESULTS DISCUSSION 2Q 2017 RESULTS

Page 2: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

2

Financial Statement - Summary

THE COMPANY AFFECTED BY EXTERNAL ENTITIES WHICH PARTICIPATED IN

MECHANISM OF VAT FRAUD

ONE-OFF IMPACT ON RESULTS BUT WITHOUT IMPACT ON LIQUIDITY AND DIVIDEND

POLICY

PLN m 2Q 2016 2Q 2017 % of Sales

2Q 2016

% of Sales

2Q 2017 Y/Y Change

Net sales 5 341 6 084 14%

EBITDA Normalized 110 120 2,1% 2,0% 9%

One-off net impact - 114

EBITDA Reported 110 6 2,1% 0,1% -95%

Net profit Normalized 53 53 1,0% 0,9% -1%

Net profit Reported 53 -62 1,0% -1,0% -

Page 3: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

3

VAT payment issue

Company affected by third parties

participating in VAT fraud scheme

Considered period: 2013-2017

One-off impact on results

Company filed notification about suspicion

of the commission of a crime

*adjusted by intercompany sales to own stores, which were moved to Retail Segment

Estimated Net Profit impact:

negative 114m or 0.82 PLN per

share

Net Debt impact: PLN 96m –

22% of 2016 EBITDA

P&L impact PLN m

Other operating costs -140,10

Other operating income 25,70

Total Impact on Net Profit -114,40

Other operating costs -140,10

Potential VAT liability -121,45

Costs of audit -5,56

VAT receivables -13,10

CF impact PLN m

Net Profit -114,40

Change of liabilities

(security for potential

tax liability paid in cash) 95,75

Change of receivables 13,10

Costs of audit 5,56

Page 4: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

4

2Q 2017 Operational highlights

GROWING INFLATION SUPPORTING MARKET

EUROCASH SALES GREW BY 13.9% IN 2Q 2017 AND 11.6% IN 1H 2016

MAINLY FROM M&A AND ORGANIC GROWTH

EBITDA HIGHER BY 10 M PLN IN 2Q 2017

POSITIVE LFL IN C&C AND STRONG LFL IN DELIKATESY CENTRUM

STRONG OPERATIONAL CASH FLOW AT 217% OF EBITDA LEVEL

VAT ISSUE - ONE-OFF IMPACT ON RESULTS BUT WITHOUT IMPACT ON

LIQUIDITY AND DIVIDEND POLICY

FOLLOWING SLIDES WITH FINANCIAL AND OPERATIONAL RESULTS PRESENTS

COMPANY’S RECURRING BUSINESS EXCLUDING ONE-OFF ITEM

Page 5: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

5

Macroeconomic outlook 3.4% Food inflation in 2Q YoY, while only 0.8% inflation on alcohol & tobacco

Source: CSO

Inflation

CPI in 2Q 2017 driven by transportation (+4.2% YoY) and food & beverages (+3.4% YoY)

-1,5% -0,9% -0,7% -0,6%

-0,9% -0,9% -0,8%

0,2%

2,0% 1,8%

-3,7%

-2,1%

-0,8%

0,1% 0,4% 0,8%

0,9%

1,3%

3,4% 3,4%

2,0%

1,0% 0,9% 0,9% 0,6% 0,5% 0,6%

0,9% 1,1%

0,8%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

1Q2015 2Q 3Q 4Q 1Q2016 2Q 3Q 4Q 1Q2017 2Q

CPI CPI - food & non-alcoholic beverages CPI - alcoholic beverages & tobacco

Page 6: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

6

11,1%

1,5%

-0,1%

1,5%

5,8%

-0,1%

2,5% 2,7%

-2%

0%

2%

4%

6%

8%

10%

12%

Discounters Hypermarkets2500+

Supermarkets300-2500

Small Format -Total

LTM May 2016 LTM May 2017

FMCG MARKET GROWTH Small Format growing 2.7% vs. FMCG market growth of 3.2% in LTM May 2017

FMCG market growth by channels (YoY)

Source: Nielsen

*LTM – Last Twelve Month

Small Format Food market growth (YoY)

3,9%

-2,0% -1,6%

5,2% 5,3%

-2,5% -1,5%

9,8%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Specialized &Others

Small Grocers -40

Convenience 40-100

SmallSupermarkets

100-300

LTM May 2016 LTM May 2017

Page 7: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

7

Small format segment Decline in number of stores results in increased sales per remaining stores

No. of stores in Poland (thsd.)

Source: Nielsen

*No. of stores as of the end of year. Value of sales of Last Twelve Months

Dynamic of sales per 1 store in Poland*

(Food)

40,5

28,3

8,5

3,1 0,3

3,7

38,5

27,4

9,0

3,1 0,3

3,8

0

5

10

15

20

25

30

35

40

45

Small Grocers -40

Convenience40-100

SmallSupermarkets

100-300

Supermarkets300-2500

Hypermarkets2500+

Discounters

2015 2016

-5% -3% +5% 0% +1% +2%

Although no. of small format stores is decreasing, sales per 1 store noted health increase

-1,1%

2,9%

-0,8%

-5,3%

0,9%

4,9%

2,5% 1,9%

4,2%

2,9%

-0,3%

3,6%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

Small Grocers-40

Convenience40-100

SmallSupermarkets

100-300

Supermarkets300-2500

Hypermarkets2500+

Discounters

LTM May 2015 LTM May 2016

Page 8: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

8

Eurocash Group sales growth supported by M&A and New Projects

Strong organic growth +6,3% supported by 1.5% growth from projects,

M&A responsible for 6.2% of sales increase

Sales of goods development 2Q 2017 YoY (PLN m)

Sales development (PLN m)

6,4% 1,5% 6,3%

*M&A growth adjusted by PLN 45.1 m of Total Group sales to FHC-2

-1,4%

5 341 5 003

6 084 5 677

13,9% 13,5%

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Total sales Sales of goods

2Q 2016 2Q 2017

5 003 5 677

322 77 39 314

0

1 000

2 000

3 000

4 000

5 000

6 000

EurocashGroup

2Q 2016

M&A* Projects Export OrganicGrowth

EurocashGroup

2Q 2017

Page 9: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

9

3 580

1 867

234 60

-399

3 834

2 003

574 137

-464

7,1% 7,3% 145,6% 130,6% 16,2%

-1 000

-500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Independentwholesale

Integratedwholesale

Retail New projects Cons.Adj.

2Q 2016 2Q 2017 Change of sales

Strong sales growth …supported by M&A and New Projects

All segments improved sales

Retail segment consists of EKO chain, Inmedio and own Delikatesy Centrum

New Project sales driven by development of Fresh Project (+PLN 135m vs. 1H 2016),

Faktoria Win transferred from New Projects.

Sales growth by segments

6 589

3 608

467 103

-662

7 034

3 775

1 112

250

-893

6,8% 4,6% 137,9% 142,8% 34,9%

-2 000

-1 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Independentwholesale

Integratedwholesale

Retail Newprojects

Cons.Adj.

1H2016 1H2017 Change of sales

Page 10: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

10

133

95

0

140

180

225

5,0% 88,7%

0

50

100

150

200

250

Inmedio Delikatesy CentrumOwn

EKO

2Q 2016 2Q 2017

Retail segment

Sales by formats

LFL in 2Q 2017:

Inmedio +2.4%

Delikatesy Centrum Own +3.7%

EKO +4.8%

M&A effect

264

183

0

279

340

431

5,8% 85,6%

0

50

100

150

200

250

300

350

400

450

500

Inmedio Delikatesy CentrumOwn

EKO

1H 2016 1H 2017

M&A effect

LFL in 1H 2017:

Inmedio +3.0%

Delikatesy Centrum Own +1.8%

EKO +1.5%

No. of stores

Inmedio 452

Delikatesy Centrum Own 116

EKO 244

incl. 11 DC rebranded stores

Page 11: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

11

Independent Wholesale sales dynamic

LFL Cash&Carry

Cash&Carry closed 3 stores in 1H 2017, next 7 stores to be closed 3Q/4Q 2017

Till July 2017 83% of sales recovered from closed stores

Tobacco distribution format with increasing sales, but with lower costs efficiency

Alcohol distribution format with additional PLN 66.7 m in 2Q 2017 and PLN 115.5m in

1H 2017 sales from M&A

-1,0%

4,1%

15,2%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

Cash&Carry Tobacco Alcohol

0,9% 3,8%

18,9%

0,0%

5,0%

10,0%

15,0%

20,0%

Cash&Carry Tobacco Alcohol

2Q 2017 YoY

1H 2017 YoY -4,0%

-1,3% -3,6%

-5,2% -4,6%

0,3%

-10%

-5%

0%

5%

10%

15%

Q1 2016 Q2 Q3 Q4 Q1 2017 Q2

+8.3% excl. Export

& M&A

+11.3% excl. Export

& M&A

Page 12: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

12

Improvement of Delikatesy Centrum Retail LFL

Wholesale LFL driven by Fresh Project (+PLN 71m, up to PLN 121.2m in 2Q 2017)

7 net openings in Delikatesy chain (total 1102)

Eurocash Distribution sales to franchise clients increased by 10.1%

Integrated Wholesale

LFL Delikatesy Centrum

*Adjustments: Fresh project movement to Projects segment, wholesale sales to own stores moved to Retail

2,7% 4,4%

6,4%

8,4% 8,6%

13,2%

1,2% 0,8% 2,0% 2,4% 2,2%

6,2%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

Q1 2016 Q2 Q3 Q4 Q1 2017 Q2

Delikatesy Centrum wholesale LFL Delikatesy Centrum retail LFL

13,6%

1,8%

13,8%

0,0%

5,0%

10,0%

15,0%

DelikatesyCentrum

Distribution Food Service

2Q 2017 YoY

1H 2017 YoY

14,5%

4,0%

18,5%

0,0%5,0%

10,0%15,0%20,0%

DelikatesyCentrum

Distribution Food Service

+5.3% excl. Export

+4.7% excl. Export

Page 13: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

13

PLN m 2Q 2016 2Q 2017 % of Sales 2Q

2016

% of Sales 2Q

2017 Y/Y Change

Net sales 5 341 6 084 14%

Gross profit 558 670 10,5% 11,0% 20%

EBITDA* 110 120 2,1% 2,0% 9%

EBIT* 70 75 1,3% 1,2% 7%

Profit before tax* 63 67 1,2% 1,1% 6%

Net profit* 53 53 1,0% 0,9% -1%

2Q 2017 Adjusted* financial summary Strong EBITDA improvement

Gross Margin growth

driven by M&A of retail

business

Net Profit affected by

higher interests due to

increased Net Debt

EBITDA driven by integrated

clients, partially off-set by lower

Tobacco format profitability and

New Projects

*Adjusted for one-off item as described on slide 2

Page 14: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

14

PLN m 1H 2016 1H 2017 % of Sales 1H

2016

% of Sales 1H

2017 Y/Y Change

Net sales 10 105 11 278 11,6%

Gross profit 1 021 1 216 10,1% 10,8% 19,2%

EBITDA* 158 158 1,6% 1,4% 0,1%

EBIT* 77 68 0,8% 0,6% -11,5%

Profit before tax* 66 51 0,7% 0,4% -24,0%

Net profit* 55 38 0,5% 0,3% -31,7%

1H 2017 Adjusted* financial summary Growth projects affecting profitability

Gross Margin growth

driven by M&A of retail

business

EBIT affected by

additional

depreciation in retail

EBITDA driven by integrated

clients, partially off-set by lower

Tobacco format profitability and

New Projects

*Adjusted for one-off item as described on slide 2

Page 15: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

15

Integrated Wholesale driving EBITDA New Projects and Tobacco affecting Group profitability

Key factors impacting EBITDA:

New Projects: PLN -2.7m in 2Q 2017 and PLN -11.1m in 1H 2017

Independent Wholesale: -5.9m in 2Q 2017 and PLN -12.4m in 1H 2017

Integrated Wholesale: +23.5m in 2Q 2017 and PLN +24.8m in 1H 2017

EBITDA by segments

83

101

13

-15 -24

71

125

20

-27 -32

-15% 25% 53% 72% 36%

-60

-40

-20

0

20

40

60

80

100

120

140

Independentwholesale

Integratedwholesale

Retail New projects Other incl. CHO

1H2016 1H2017

64 54

7

-8 -7

58

78

11

-11 -16

-9% 43% 61% 32% 140%

-40

-20

0

20

40

60

80

100

Independentwholesale

Integratedwholesale

Retail New projects Other incl. CHO

2Q2016 2Q2017

Page 16: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

Adjusted* Cash Flow Operational CF at 217% EBITDA level

Cash conversion at long term optimum level, in line with last quarters

Strong Operational Cash generation mainly from working capital improvement

Cash conversion cycle

29 29 27 30 28 28

20 20 18 19 22 20

(21) (20) (18) (18) (18) (18)

(70) (69) (64) (67) (68) (66)

-80

-60

-40

-20

0

20

40

Q1 2016 Q2 Q3 Q4 Q1 2017 Q2

Receivables Stock Cash conversion Liabilities

PLN m 2Q 2016 2Q 2017 1H 2016 1H 2017

Net operating cash flow 96 261 143 181

Net profit (loss) before tax 63 67 66 51

Depreciation 40 45 81 90

Change in working capital (31) 134 (20) 33

Other 23 15 15 8

Net investment cash flow (32) (65) (136) (204)

Net financial cash flow (41) (180) 33 15

Total cash flow 23 15 40 8

*Adjusted for one-off item as described on slide 2

Page 17: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

17

481 477 466 440 431 441

240

317

231

324

584

486

0,50

0,66

0,50

0,74

1,36 1,10

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

0

100

200

300

400

500

600

700

1Q'16 2Q 3Q 4Q 1Q'17 2Q

LTM EBITDA (PLN m) NET DEBT (PLN m) NET DEBT / EBITDA

Net Debt vs. Adjusted* EBITDA

Decrease of Net Debt in 2Q 2017 vs. 1Q 2017 due to strong operational cash flow

Additional VAT payment not affecting Company’s liquidity

Net Debt** vs. 12M EBITDA in 1Q 2017

**NET DEBT - the sum of long and short term loans, borrowings and financial liabilities less cash and cash equivalents *Adjusted for one-off item as described on slide 2

Tax impact on Net Debt:

Total Pro Forma ND: 586 m

1.80x EBITDA

326

Reported LTM EBITDA

Page 18: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

18

Exclusivity for MILA

Exclusivity for negotiations until 8th

September 2017

188 supermarkets in Poland

2016 Sales of PLN 1.5bn

2016 EBITDA of app. PLN 5m

Stores operated by MILA, rented real

estate

Transaction conditional on finalizing and

signing of the preliminary agreement and

then UOKIK consent

Potential acquisition of MILA will be next

step on growth of the Delikatesy Centrum

supermarket chain

Mila locations vs. Delikatesy Centrum+EKO

Page 19: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

19

Strategy to develop retail operations

Wholesale + Franchise

•Delikatesy Centrum as wholesale business

•Franchise system to support clients

Retail with Partners

•We acquire control position in main franchisees

•Partnership approach

M&A in Retail

•We start acquiring retail companies within our format to get to new regions

One Brand

•Brand unification to Delikatesy Centrum

•Unified strategy

Integration

•Integration of Logistics

•Integration of HQ

Retail Company with mix of own and franchised

stores

Page 20: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

1H 2017 Adjusted* Financial Summary

P&L

PLN m 2Q 2017 2Q 2016 Y/Y

Change 1H 2017 1H 2016

Y/Y

Change

Sales revenues (traded goods, materials) 6 084 5 341 14% 11 278 10 105 12%

Gross profit on sales 670 558 20% 1 216 1 021 19%

Gross profitability on sales (%) 11,0% 10,5% 0,55p.p. 10,8% 10,1% 0,69p.p.

EBITDA 120 110 9% 158 158 0%

(EBITDA margin %) 2,0% 2,1% -0,09p.p. 1,4% 1,6% -0,16p.p.

EBIT 75 70 7% 68 77 -12%

(EBIT margin %) 1,2% 1,3% -0,08p.p. 0,6% 0,8% -0,16p.p.

Net Income 53 53 -1% 38 55 -32%

(Net profitability %) 0,9% 1,0% -0,13p.p. 0,3% 0,5% -0,21p.p.

*Adjusted for one-off item as described on slide 2

Page 21: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

1H 2017 Adjusted* Financial Summary

Cash Flow

PLN m 2Q 2017 2Q 2016 Change 1H 2017 1H 2016 Change

Net operating cash flow, including: 261 96 165 181 143 39

Net profit (loss) before tax 67 63 4 51 66 -16

Depreciation 45 40 5 90 81 9

Change in working capital 134 (31) 165 33 (20) 53

Change in inventories -218 -162 -56 292 -135 426

Change in trade receivables -130 -240 111 -51 36 -88

Change in trade payables 380 382 -2 303 46 257

Other 15 23 -8 8 15 -7

Net investment cash flow -65 -32 -12 -204 -136 -47

Net financial cash flow -180 -41 -139 15 33 -19

Total cash flows 15 23 14 8 40 -27

*Adjusted for one-off item as described on slide 2

Page 22: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

1H 2017 Adjusted* Financial Summary

Balance Sheet

PLN m 30 JUN 2017 31 DEC 2016 Change [%] Change

Non-current assets 2 548 2 322 9,7% 225

Current assets 3 637 3 199 13,7% 438

Inventories 1 368 1 089 25,6% 279

Trade receivables 1 855 1 748 6,1% 107

Cash and cash

equivalents 153 162 -5,2% -8

Total Assets 6 185 5 522 12,0% 663

Equity 1 083 1 155 -6,3% -72

Liabilities 5 102 4 367 16,8% 735

Long-term financial debt 8 154 -94,6% -146

Short-term financial

debt 631 332 90,2% 299

Trade payables 3 963 3 459 14,6% 504

Total equity and

liabilities 6 185 6 185 0,0% 0

*Adjusted for one-off item as described on slide 2

Page 23: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

VAT fraud scheme in case of goods

purchased from the Manufacturer

Manufacturer

PolCo1

F1

F2

F2 purchases goods from F1 with no VAT applicable (IC acquisition). However, goods were never transported by F1 to EU but directly to F2 in Poland (goods do not leave Poland)

Manufacturer sells goods to PolCo1 at 23% VAT and pays VAT to tax office

PolCo1 sells goods to F1 at 0% VAT rate and recovers 23% VAT from the tax office

F2 sells goods at the market under standard 23% VAT rate

F1 and F2 are fraudulent entities which are using PolCo1 (genuine entity) for the fraud scheme.

If F2 would purchase goods directly from PolCo1, F2 would be charged with 23% of Polish VAT. F1 is used in the scheme in order to

avoid the payment of the amount of VAT by F2.

The State Treasury is questioning the right of PolCo1 to apply the 0% VAT rate (since F1 has never transported goods to EU). In result,

PolCo1 may be required to repay the amount of previously recovered VAT.

Page 24: 2Q 2017 RESULTS · 2Q 2Q 2016 RESULTS DISCUSSION2017 RESULTS . 2 Financial Statement - Summary ... Source: Nielsen *No. of stores as of the end of year. Value of sales of Last Twelve

24

Disclaimer and contacts

This presentation and the associated slides and discussion contain forward-looking statements. These statements are

naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not

limited to, those regarding capital employed, capital expenditure, cash flows, costs, savings, debt, demand, depreciation,

disposals, dividends, earnings, efficiency, gearing, growth, improvements, investments, margins, performance, prices,

production, productivity, profits, reserves, returns, sales, share buy backs, special and exceptional items, strategy, synergies,

tax rates, trends, value, volumes, and the effects of Eurocash S.A. merger and acquisition activities. These forward-looking

statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from

those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, but are

not limited to developments in government regulations, foreign exchange rates, oil and gas prices, political stability, economic

growth and the completion of ongoing transactions. Many of these factors are beyond the Company's ability to control or

predict. Given these and other uncertainties, you are cautioned not to place undue reliance on any of the forward looking

statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions

to these forward-looking statements (which speak only as of the date hereof) to reflect events or circumstances after the date

hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable securities laws.

Statements and data contained in this presentation and the associated slides and discussions, which relate to the

performance of Eurocash S.A. in this and future years, represent plans, targets or projections.

For more information please contact:

Jan Domański, Investor Relations & M&A Director

[email protected]

M: +48 507 010 095