Company s strategy, based on the organic growth and retail chain development, will lead to the growth of the value for shareholders.

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2 NG2 S.A. growth & value delivered Very good financial results of market leader confirm efficiency of business model and resilience to economic slowdown. Company s strategy, based on the organic growth and retail chain development, will lead to the growth of the value for shareholders. Investments will increase effectiveness and optimize business processes of the Group. 2

3 WIG (pkt) NG2 S.A. stock listed since , ,00 WIG vs NG2 WIG (oś lewa) kurs_akcji (oś prawa) 60,00 55,00 Stock info , ,00 50,00 45,00 Share Price = 54,0 PLN , ,00 40,00 35,00 Reuters: CCCC.WA Bloomberg: CCC PW Market Cap : (PLNm) 2,074 (EURm) 514, ,00 30, ,00 25, ,00 20, Analysts coverage Institution Analyst Contact DB Securities Łukasz Wachełko lukasz.wachelko@db.com C itibank Włodek Giller wlodek.giller@citi.com ING Securities Milena Olszewska milena.olszewska@pl.ing.com KBC Securities Kamil Szlaga kamil.szlaga@kbcsecurities.pl Number of shares Free float 26% Unicredit C AIB Michał Potyra michal.potyra@caib.unicredit.eu Woods&C ompany Anna Krasińska annie.krasinska@wood.cz Raiffeisen C entrobank Marta Gizejowska marta.gizejowska@rcb.at Ipopema Securities Tomasz Duda tomasz.duda@ipopema.pl IDM Marek Kaźmierczak m.kazmierczak@idmsa.pl Beskidzki Dom Maklerski Marcin Stebakow stebakow@bdm.com.pl 3

4 NG2 S.A. leader of the footwear market in Poland Two things are very significant in life: a good bed and comfortable shoes. Since a person is either in bed or wearing shoes. Marcel Achard Very high profitability Largest retail chain in Poland Business based on economy and supereconomy segments Leader in the production of leather shoes in Poland Unique business model NG2 Growing number of outlets in Poland and abroad Huge potential of further growth Strong brand 4

5 PLN million PLN million Footwear market in Poland Fig. Poland, XX Poland; footwear Footwear market market value value in PLN in PLN million Footwear market value Poland, Fig. XX Poland; footwear Footwear market volume market volume in million in million pairs pairs Footwear market volume YoY growth 2.6% YoY growth 2.5% 2.5% 2.3% 2.3% % % 2.3% % % 2.3% % 2.5% 2.4% 2.3% 2.2% 2.1% 2.0% % % % % % % % % % 1.5% 1.0% 0.5% E 2010E 2011E 2012E 2013E 1.9% E 2010E 2011E 2012E 2013E 0.0% Source: Datamonitor Source: Datamonitor - Unsaturated market (4.1 pairs of shoes per year while the average figure for EU is 6.2) - Lack of strong competitors - NG2 is the market leader in Poland - Market share of NG2 estimated to 9,4%/ 11% in terms of value / volume (FY 2008) - 12% and 13,1% market share expected, respectively, in 2009 (management guidance) 5

6 NG2 S.A. growth & value delivered 2 3 Domestic suppliers Foreign suppliers Total number of outlets : 699 ( ) CCC (economy) 262 Quazi (premium) 48 Boti (super-economy) (223) Owned (573) Czech Republic (40) 1 Own production Flexibility of supplies Tax benefits Exclusivity for NG2 NG2 SA Effective logistics Orders based on www Franchise (126) End customer CCC (61) Boti (65) 6

7 Why aren t we afraid of the slowdown of the economy? Defensive business model low-priced products are the most successful in the slowdown period. NG2 is well shaped to achieve limited profits contraction during the consumption slowdown. NG2 based its strategy on the organic growth in the domestic market. Slowdown means increase of our negotiation power against suppliers of services, producers and owners of the shopping space. NG2 Group is extremely well prepared to further efficient expansion while generating high rate or return for shareholders : Strict control of costs, Constant increase of sales efficiency High margin determine high profitability Low leverage guarantee low interest costs 7

8 Floorspace and number of outlets 300 CCC Floorspace EoY 2001 EoY 2002 EoY 2003 EoY 2004 EoY 2005 EoY 2006 EoY 2007 EoY 2008 EoY Q 2010 CCC Floorspace Boti Floorspace EoY 2007 EoY 2008 EoY Q 2010 Boti Floorspace Quazi Floorspace EoY 2006 EoY 2007 EoY 2008 EoY Q 2010 Quazi Floorspace CCC Boty Czech Floorspace EoY 2006 EoY 2007 EoY 2008 EoY Q2010 CCC Boty Czech Floorspace

9 Revenue split by volume and sales channels (%) Q Q ,26% 26,97% 8,44% 49,36% 9,15% 47,15% 12,89% 14,89% 1,05% 1,83% CCC BOTI QUAZI CCC Boty Franchise 9

10 Purchases split by sources of supplies ( PLN 000 ) Q Q China Poland India Italy Taiwan Others 10

11 Purchases split by currency Q1 2009/2010 Q Q EUR USD PLN 11

12 Financial results I-XII 2008 I-XII 2009 change `000 PLN `000 PLN 2009/2008 Revenue ,3% Gross Profit on Sale ,7% Gross Profit on Sale Margin 53,7% 52,2% -2,8% Selling Costs ,7% General & Administrative Costs ,9% EBIT ,0% EBIT Margin 17,5% 11,7% -33,0% Financial Costs ,3% Gross Profit ,4% Net Profit ,4% Net Profit Margin 13,6% 9,1% -33,3% Total Assets ,1% Liabilities nad Reserves ,4% Long Term Liabilities ,6% Short Term Liabilities ,1% Equity ,3% Return on Equity 34,7% 24,6% -29,2% 12

13 Financial results Q Q Q change `000 PLN `000 PLN 2010/2009 Revenue ,4% Gross Profit on Sale ,6% Gross Profit on Sale Margin 47,4% 51,5% 8,6% Selling Costs ,7% General & Administrative Costs ,7% EBIT ,4% EBIT Margin 4,6% 4,7% 1,7% Financial Costs ,1% Gross Profit ,1% Net Profit ,6% Net Profit Margin 2,8% 2,6% -8,1% Total Assets ,5% Liabilities nad Reserves ,8% Long Term Liabilities ,6% Short Term Liabilities ,3% Equity ,5% 13

14 Consolidated Net Profit (PLN million) , ,7 30, ,2 26, , ,6 15,9 17,2 18,5 17, ,5 5,0 3,1 10,1 5,4 13,2 8,6 4,2 9,1 11,0 8,3 4,6 11,1 5,1 0 I Q II Q III Q IV Q I Q II Q III Q IV Q I Q II Q III Q IV Q I Q II Q III Q IV Q I Q II Q III Q IV Q I Q II Q III Q IV Q I Q

15 L-f-l sales I-XII ,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% 25,00% 20,00% 54,6% 25,2% 18,4% 11,2% CCC 30,00% 25,00% 24,1% 20,00% 15,00% 10,00% 5,00% 0,00% 12,6% -5,00% 6,4% 7,0% 8,2% 5,9% 4,8% 5,1% 3,4% -10,00% CCC Boty Czech 1,4% -1,1% -4,8% -4,2% -5,9% -7,8% -9,2% -9,2% -11,7% -12,0%-12,2% -15,00% I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 18,7% Quazi 70,00% 61,5% 60,00% 50,00% Boti 15,00% 10,00% 5,00% 8,5% 6,5% 6,1% 5,5% 5,1% 5,3% 5,6% 4,8% 9,6% 10,3% 10,1% 40,00% 30,00% 20,00% 10,00% 27,8% 26,1% 16,6% 14,1% 13,3% 10,2% 10,7% 9,1% 7,8% 9,8% 9,1% 0,00% I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 0,00% I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 15

16 L-f-l sales I-VI ,00% 2,00% 0,00% CCC 1,5% 0,00% -5,00% CCC Boty Czech -5,9% -8,4% -8,4% -3,3% -2,00% -10,00% -4,00% -6,00% -8,00% -6,9% -8,4% -15,00% -20,00% -21,1% -10,00% -12,00% -14,00% -13,3% -12,2% -13,2% -25,00% -30,00% -32,3% -16,00% I I-II I-III I-IV I-V I-21.VI -35,00% I I-II I-III I-IV I-V I-21.VI 15,00% Quazi 13,3% -5,00% Boti -7,0% 10,00% 7,3% -10,00% -12,6% 5,00% 0,00% 0,7% -2,4% 2,8% -15,00% -20,00% -20,6% -19,1% -19,5% -5,00% -7,8% -25,00% -27,9% -10,00% I I-II I-III I-IV I-V I-21.VI -30,00% I I-II I-III I-IV I-V I-21.VI 16

17 Factors affecting strategy of NG2 Characteristics of the footwear market in Poland Domestic footwear market in Poland dispersed and not saturated. Foreign footwear chains lost momentum to grow in Polish market. Lack of large multinational players (Deichmann is an exception). Financial strength of NG2 Low leverage allows to finance rapid expansion. Low interest costs guarantee stability of business development. High equity and ROE make NG2 unique low-risk retail chain. Economic slowdown NG2 wasn t surprised by the slowdown in opposite to other retail companies. NG2 is well-shaped organization with low level of costs and effective structure. Opportunities are taken to increase the competitive advantages. Crisis is the best possible period to increase the awareness of the brand among customers. Marketing and advertising activity wasn t limited. 17

18 Strategy of NG2 Strategy of NG2 is based on constant dynamic growth and increase of the market share in Poland. Value of the market is estimated to be PLN 8 billion (130 million pairs). NG2 is market leader in Poland with market share of 11-12%. Company s three years mid-term target is market share in Poland above 20%. Organic growth Lack of attractive companies to acquire. Opening of new CCC, BOTI and Quazi stores in Poland and Czech Republic. Franchise stores are gradually being taken over. Increase of the effectiveness Two-digit l-f-l growth remains strategic goal of NG2. Further automation of the processes is intended to lower labour costs. Precise budgets limit expenditures and increase the cost awareness. 18

19 Retail chain s development plans In 2010 opening of 80 new stores is planned: 20 CCC outlets in Poland 10 CCC outlets in Czech Republic 10 QUAZI boutiques 40 BOTI shops Change of the format of the stores announced: Smaller Quazi boutiques m 2 Larger BOTI shops m 2 Long-term target ( ) of the NG2 Group 1000 stores in Poland : 400 CCC saloons (incl.100 franchised), 500 BOTI (incl. 100 franchised) and 100 Quazi. 70 CCC saloons in Czech Republic 19

20 Capex per brand CCC Floorspace (average - sq m) 320 Capex (PLN per sq m) 1017 BOTI Floorspace (average - sq m) 119 Capex (PLN per sq m) 657 Quazi Floorspace (average - sq m) 172 Capex (PLN per sq m)

21 Investments Investments will increase effectiveness and optimize business processes New, fully-automated logistic center Total capex PLN 97 million EU subsidy received (PLN 38.8 million) Effective start - November 2011 Implementation of new IT system dedicated for retail Business requirements analyzed RFP sent, offers submitted, presentations and meetings conducted Effective start of the implementation early May 21

22 NG2 unleveraged retailer (as of 31 th of March) Financial Indebtedness/Equity Net debt/ebitda 54,5% 48,0% 1,2 1,1 Financial Indebtedness / Equity ,5% 48,0% Net debt/ EBITDA 1,2 1,1 Gross Profit Interest Cover 3,5 8, Gross Profit Interest Cover 8,0 3,

23 Shareholders structure (shares) Leszek Gaczorek; 10,94% ING Pension Fund; 6,45% Pioneer Investment Management; 8,52% Luxprofi S.a.r.l (Dariusz Miłek's SPV registered in Luxembourg); 34,51% Other shareholders; 27,21% Dariusz Miłek; 12,37% 23