Results and strategy of CCC Group

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2 01 Results and strategy of CCC Group Strategy of dynamic foreign expansion will be continued. Not only CEE countries will contribute to the future success but also the new markets Germany, Austria, Slovenia and Croatia. Continued track record of the excellent sales and financial results is the clear sign of success of CCC concept and strategy. In 2014 and 2015 CCC position on the European market will be decided. Company intends to prove its competence and competitive advantages and to to enjoy the most spectacular period in its history in terms of net profit, revenue and floorspace growth.

3 02 CCC S.A. stock listed since SHARE PRICE ING Securities Milena Olszewska milena.olszewska@pl.ing.com IDM Sylwia Jaśkiewicz s.jaskiewicz@idmsa.pl Dom Inwestycyjny Investors S.A. Łukasz Wachełko lukasz.wachelko@investors.pl Dom Maklerski Banku BPS S.A. Marcin Stebakow marcin.stebakow@dmbps.pl Ipopema Securities Piotr Zielonka piotr.zielonka@ipopema.pl Millennium Dom Maklerski S.A. Marcin Palenik marcin.palenik@millenniumdm.pl Unicredit CAIB Małgorzata Kloka malgorzata.kloka@caib.unicredit.eu Raiffeisen Centrobank AG Jakub Krawczyk jakub.krawczyk@rcb.at Wood&Company Gabriela Burdach gabriela.burdach@wood.cz Trigon Dom Maklerski Hanna Kędziora hanna.kedziora@trigon.pl PKO BP Włodzimierz Giller wlodzimierz.giller@pkobp.pl Dom Maklerski BZ WBK S.A. Tomasz Sokołowski tomasz.sokołowski@bzwbk.pl Stock info Market Cap Number of shares Free float Share price = 109,70 PLN Reuters: CCCC.WA Bloomberg: CCC PW (PLNm) (EURm) ,18%

4 03 Grupa CCC Leader in the production of leather shoes in Poland Only own brands Dynamic expansion in 14 countries Huge potential for further growth Unique business model Fastest growing footwear retailer in Europe Very high profitability

5 04 CCC Group growth & value delivered ( ) Total number of outlets: 692 own and agency 634 Poland 446 Czech Republic 75 Slovakia 27 Hungary 54 Austria 12 Croatia 4 Turkey 2 Germany 10 Slovenia 4 franchise 58 Poland 18 Romania 23 Russia 5 Latvia 6 Kazakhstan 2 Ukraine 4

6 05 Structure of sales by countries [PLN] H1 H H Czech Rep. 8,2% Slovakia 4,6% Hungary 6,4% new markets 4,8% others 4,3% Poland 71,7% Czech Rep. 8,5% Slovakia 3,8% Hungary 3,6% others 3,6% Poland 80,5%

7 06 Structure of sales by countries [PLN] Q2 Q Q Czech Rep. 8,0% Slovakia 4,7% Hungary 6,3% new markets 5,5% others 4,4% Poland 71,1% Czech Rep. 8,3% Slovakia 4,0% Hungary 3,8% others 3,2% Poland 80,7%

8 07 Structure of sales by products (value) H1 H H men 23,5% kids 15,9% bags 5,0% shoe care products 1,7% others 2,7% women 51,2% men 21,7% kids 15,7% bags 4,6% shoe care products 2,0% others 2,9% women 53,1%

9 08 Structure of sales by products (value) Q2 Q Q men 23,3% kids 15,5% bags 5,3% shoe care products 1,4% others 2,7% women 51,8% men 21,8% kids 17,2% bags 3,8% shoe care products 1,5% others 3,0% women 52,7%

10 09 L-f-l H ,4% CCC (Poland) 25,0% 25,1% 16,3% 18,2% 17,5% 15,1% 16,7% I I II I III I IV I V I VI I VII I 17.VIII 30,3% CCC (foreign) 5,4% 12,2% 9,5% 11,3% 14,8% 17,5% -7,2% I I II I III I IV I V I VI I VII I 17.VIII

11 10 Financial results H H `000 PLN H `000 PLN change % 2014/2013 Revenue ,0% Gross Profit on Sale ,9% Gross Profit on Sale Margin 52,0% 55,4% 3,4 p.p. Selling Costs ,9% General & Administrative Costs ,1% EBIT ,4% EBIT Margin 6,1% 10,8% 4,7 p.p. Financial Costs ,1% Gross Profit ,5% Net Profit ,9% Net Profit Margin 4,6% 8,2% 3,6 p.p.

12 11 Financial results Q Q `000 PLN Q `000 PLN change % 2014/2013 Revenue ,7% Gross Profit on Sale ,2% Gross Profit on Sale Margin 55,2% 57,80% 2,6 p.p. Selling Costs ,9% General & Administrative Costs ,2% EBIT ,3% EBIT Margin 17,3% 17,50% 0,2 p.p. Financial Costs ,2% Gross Profit ,1% Net Profit ,9% Net Profit Margin 16,4% 14,00% -2,4 p.p.

13 12 Consolidated Cash Flow Statement H H `000 PLN H `000 PLN Net operating CF: changes in inventory changes in receivables changes in short term liabilities Net investment CF: income expenses Net financial CF: income expenses Total Cash Flow: cash at the beginning of the period cash at the end of the period * * excluding loans, credits and bonds

14 13 Balance sheet H H `000 PLN H `000 PLN Fixed assets Current assets, including: inventory cash and cash equivalents Total assets Equity capital Long-term liabilities, including: long-term bank loans, credits, bonds Short-term liabilities, including: short-term bank loans and credits Total liabilities

15 14 CCC Group unleveraged retailer 134,7% Financial Indebtedness / Equity (%) 62,3% (liabilities: credits, loans, leasing, bonds) / equity H H Net debt / EBITDA 1,4 1,5 (liabilities: credits, loans, leasing, bonds cash) / EBITDA H H ,5 Gross Profit Interest Cover 6,3 (gross profit + interest on credits, loans and leasing, bonds) / (interest on credits, loans and leasing) H H1 2014

16 15 Strategy of CCC Group CCC strategy set of unique competencies building competitive advantages on European footwear retail market. Fast Fashion Providing CCC customers with thousands of different models during one season. Short product lines, variety of colours and styles guarantee high number of visitors and frequency of purchases. Price to Quality Ratio CCC price offer is very attractive, both for leather and syntetic shoes. Own brands CCC sells only own brands produced either in Poland or outsourced in Far East in order control fully the production process, quality, logistics, margins, pricing and marketing policy. Key resources: logistics state-of-the-art warehouse and distribution facilities, production in Poland and abroad, strong balance sheet, know-how in design and collection, retail management, marketing and HR.

17 16 Strategy of CCC Group The strategic goal for the years is to become the market leader in the CEE countries. Until 2015 CCC intends to become the market leader in Czech Republic, Slovakia and Hungary while strengthening its unique leader position in Poland. First quarters of dynamic expansion on the new markets (Austria, Germany, Slovenia and Croatia) are very positive. New stores openings are not pilotage anymore and will have substantial contribution to CCC development and results in the coming years. CCC dynamic expansion in will double the total floorspace (net increase by 200,000 sq.m). CCC intends to increase rapidly the scale of the business while maintaining high profitability accompanied by high ROE. In long term sustainable EBIT Margin is estimated at 12 15% while Net Profit Margin at 9 12%. ROE is expected to remain between 20 and 30%.

18 17 Strategy of CCC Group Expansion driven capital expenditures In Company will spend at least PLN 200 million on the new retail stores. Logistic and distribution centre extension requires additional PLN 60 million. CCC issued PLN 210 million 5-years bonds (floating rate WIBOR 6M +147 bp). Net debt to EBITDA may reach 2,0 as of the end of Q and Q

19 18 Expansion plans In 2014 and 2015 CCC Group will concentrate its efforts on intense development in Poland, Czech Republic, Hungary, Slovakia, Romania as well as in Austria, Slovenia, Croatia and Germany. In the years total floorspace will grow by ca. 200,000 sq.m.: ,3 thousand sq.m ,0 thousand sq.m (30% increase) thousand sq.m (25% increase) Management Board expects revenue growth to significantly exceed 30% in 2014 while in 2015 Company s revenue should exceed PLN 3 billion.

20 19 Increase of floor space components Thous. sq. m ,9 263, ,9-12,8 3, foreign 34% foreign 38% Poland 66% Poland 62% closures extentions openings H1 2014

21 20 Increase of floor space components openings [thous. sq. m] closures [thous. sq. m] others 1,1 HR 0,3 SI 1,4 HU 2,2 PL 10,7 BOTI 6,2 Lasocki 0,6 CCC 6,0 DE 4,1 AT 3,6 SK 1,2 RO 1,8 CZ 2,5

22 21 CCC Group owned and franchise stores H Chain Type sq.m. number sq.m. number sq.m. number sq.m. number sq.m. number Owned Agency Chech Republic Slovakia Hungary Austria Slovenia CCC Croatia Turkey Germany Franchise/Russia Franchise/Kazakhstan/Ukraine Franchise/Romania Franchise/Latvia Franchise/Poland CCC TOTAL Owned BOTI Franchise BOTI TOTAL QUAZI/ LASOCKI Quazi Lasocki QUAZI/LASOCKI TOTAL TOTAL

23 22 Shareholders structure (votes) Luxprofi S.a.r.l SPV owned by Mr Daiusz Miłek Leszek Gaczorek Aviva OFE others 40,20% 10,57% 7,05% 42,18% CCC S.A. has been listed on the Warsaw Stock Exchange since The main shareholder and founder of CCC Group is the President of Management Board Mr Dariusz Miłek Number of shares:

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