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EUROCASH Empowering modern retail entrepreneurs

Mom & pops stores supported by demographics are still half the market

2

Small towns, small living quarters, daily shopping nearby drive small stores market share

40

13 11

8

28 Rural

Cities 0-20K

Cities 20-50K

Cities 50-100K

Cities 100K+

60% of Poles live in villages & small towns

Small living quarters have limited space to

store food

As a result, Poles shop almost every day 12

5 5 9 4 10 6 5 4 3

5

6 5 4

6 3 6 5 5 5

7 13 10 6 8

8 10 9 7 8

9 3 7

3 7 4 4 4

13

13 6 9 5 4 6 5

11 5

0

10

20

30

40

50

Poland Bulgaria Spain Norway UK Denmark Italy Switzerland Hungary Sweden

Discounters Hypermarkets Supermarkets Convenience Traditional stores

Average number of store visits per month

Share of distribution channels in food sales in Poland

LTM July 2018, % Percentage of population living in cities/rural area

42,0%

15,4%

9,8%

32,8%

Small Format

Supermarkets 300-2500

Hypermarkets 2500+

Discounters

Eurocash purchasing and distribution scale help small stores compete

3

Building scale and purchasing power to help small stores resist competition

3

9

3

6

10

5

9

5

7

17

3

1,7

7

4

5

9

11

8

10

11

19

32

3

5

7

7

7

10

10

10

11

16

25

48

0 10 20 30 40 50 60

Selgros

Dino

Metro (Makro C&C)

Żabka

Intermarche

Carrefour

Auchan

Kaufland

Tesco

Lidl

Eurocash(Pro-Forma)

Biedronka

2017

2013

2009

3

1 2 2

5 6

7 8

10

17 17

20 20

23 25

0

2

4

6

8

10

12

14

16

18

20

22

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Pro

FormaC&C Delikatesy Centrum Tobacco&Impulse Food Service

Alcohol Distribution EC Distribution Retail & Other

Source: Company data

Eurocash Group sales evolution (PLN bn) Ranking of FMCG distributors (sales, PLN bn)

With proper support, small stores are able to resist competition

4

Acceleration of sales dynamics of small stores in 2018

8,8%

-1,0%

-5,6%

3,8% 2,5%

11,0%

-1,9%

12,9%

Small Supermarkets 100-300

Convenience 40-100 Small Grocers -40 Specialized & Others

YTD 2017 YTD 2018

8,3%

-0,7%

2,8%

0,7%

7,3%

-0,4%

1,2%

5,7%

Discounters Hypermarkets 2500+ Supermarkets 300-2500 Small Format

YTD 2017 YTD 2018

Value change

+1,5bn -0,03bn +0,12bn +1,6bn +0,2bn +1,1bn -0,1bn +0,4bn

(YTD July 2018, YoY)

Food market growth by channels

(YTD July 2018, YoY)

Food market growth by small format channels

Small format increasing sales by 5.7% vs. food market

growth of 4.9% in YTD July 2018.

Small format stores and discounters gaining market

share at expense of super/ hypermarkets

Source: Nielsen

11,9%

6,7% 7,8%

3,6% 2,7%

3,4% 2,2% 2,7%

1,2% 1,0% 0,9% 1,5%

-2,8% -4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2018 (I-VII)Source: GUS

Large format categories Small format categories

Small stores sales increase is despite their lower price inflation

5

Eurocash inflation much below market: wholesale prices in Delikatesy Centrum: +0.1%, retail prices +1.2% in 1H 2018 YoY

Food inflation by categories

4,5%

3,1% 3,4%

2,7% 2,4%

3,3%

2,1%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

Discounters Hypermarkets2500+

Supermarkets300-2500

Small Format SmallSupermarkets

100-300

Convenience40-100

Small Grocers-40

Estimated inflation by store channel (July YTD 2018)

1.8% difference

Source: Own estimation based on Nielsen

Eurocash Group

6

WHOLESALE RETAIL

75%

1%

25%

PROJECTS

Combination of wholesale and retail brings us scale, essential to support Poland’s independent retail entrepreneurs

Logistics

Brand

Purchase Scale

Know-How Technology

Cash Driver Growth Driver

Eurocash mission to support Poland’s independent retail entrepreneurs

Wholesale & Retail businesses provide comprehensive value added support

7

Logistics

Marketing

E-commerce

B2B & B&C

Purchase Scale

Education

Franchise Concepts

WHOLESALE Dedicated distribution platforms

25%

25%

13%

32%

5%

4,3

4,4

2,3

5,7

0,8

Sales (PLN bn)

RETAIL Know-how transfer to wholesale clients

Over 90% branded products

1st nationwide supermarket chain

CRM – customized promotions

High quality perishables at

affordable price

Proximity

Cash&Carry

Active Distribution

Alcohol Distribution

Tobacco & Impulse

HoReCa PLN 7.4 bn retail sales – 1.5k stores

Together wholesale and retail comprise all enabling products, channels, and functions for independent retail entrepreneurs

Eurocash generates cash to keep investing for future competitiveness

8

231 266

490 402 412

476 440 361

216 266

670 542

246

978

324

589

93% 100% 137% 135% 60% 206% 74% 163%

0%

50%

100%

150%

200%

250%

0

200

400

600

800

1 000

1 200

2010 2011 2012 2013 2014 2015 2016 2017

EBITDA Operating cash flow OCF/EBITDA

* 2017 adjusted by one-off items, VAT issue

-12,4

-5,8

-11,1

-17,2

-13,2

-19,4 -17,6

-22,0 -25,0

-20,0

-15,0

-10,0

-5,0

0,0

2010 2011 2012 2013 2014 2015 2016 2017

-19

-43 -53 -60

-50

-40

-30

-20

-10

0

2015 2016 2017

3,0% 2,7%

3,0% 2,4% 2,4% 2,3%

2,1% 1,6%

0,8% 0,9%

-0,2%

2,0%

3,7%

4,5% 4,4% 3,9%

2,6%

4,3% 3,7%

0,9%

0,0%

-0,9% -0,6%

2,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

2010 2011 2012 2013 2014 2015 2016 2017

Eurocash EBITDA margin % Gross Salary CPI (Inflation)

Operational Cash Flow* vs. EBITDA* Cash Conversion (in days)

Eurocash EBITDA margin %

vs. gross salary and inflation in PL New Projects EBIT (PLN m)

Ability to generate

cash necessary to

invest into future

growth

Eurocash:

New initiatives impact

short term profitability

but for our clients are

investment into future

competitiveness

Clear potential to

increase profits

We kept investing despite unfavorable macro trends and growing costs of innovative projects

Cash generative business model funds M&A and innovation for long-term even in recent tough business context

142,8 142,1 160,2

1,81% 1,74% 1,87%

1H 2016 1H 2017 1H 2018EBITDA EBITDA margin %

After many years of growth we are now able to focus on profitability

9

Improvement

of Wholesale

EBITDA

Head Office

cost optimization

~60m PLN

EC C&C

restructuring

~10m PLN

Logistics: ECD Merger with ECA

then ECS impulse

~40m PLN

(2019-2020)

Retail Head Office

cost optimization

up to ~40m PLN

(2020)

WHOLESALE RETAIL

150 M PLN by 2020 - identified potential for cost reduction

+18.1m

+12.8%

-0.7m

-0.5%

1H 2018 EBITDA* evolution

(PLN m)

Eurocash is now fast developing own retail, going for further scale

10

Own retail chain based on the franchise chain and on development of own small supermarket stores

+5 bn PLN

> Retail Sales

+900 stores

> By 2023

4,3

3,1 Acquisitions

Green Field

Franchise

Chain

1 527 stores

98

9

Number

Of Stores

E-GROCERY FOR BIG CITIES

> Home delivery & pick in store

NEIGHBOURHOOD

STORE

> Proximity

HIGH QUALITY OF PERISHABLES

> Delivered Everyday

PERSONALIZED PROMOTIONS

> CRM System

Standardized business with unified processes Retail Sales

(PLN bn)

7.4 bn PLN

Own

Franchise

538

Eurocash Retail is growing much faster than supermarket competition

11

High valued retail chains are increasing scale few times slower than Eurocash Retail

Avg. annual sales per sqm (thsd, 2017)

Sales area in square meters (thsd, 2016 and 2017) For 2016 and 2017

Number of Stores (2016 and 2017)or 2016 and 2017

Sales revenues (PLN bn, 2016 and 2017) For 2016 and 2017

*PMR 2018

** Company reports, sales per sqm estimation based on reports

*** 2016: before M&A (EKO & Mila)

66%

13% 24%

237 215 238

394

242 295

0

100

200

300

400

500

Eurocash Retail(DC+Eko+Mila)

Stokrotka* Dino**

20,1 18,1

16,2 16,9

0,0

5,0

10,0

15,0

20,0

25,0

Delikatesy Centrum(ex. Eko & Mila)

Eurocash Retail(DC+Eko+Mila)

Stokrotka* Dino**

41%

17% 23%

1 086

372

628

1 527

437

775

0

250

500

750

1 000

1 250

1 500

1 750

Eurocash Retail(DC+Eko+Mila)***

Stokrotka* Dino**

60%

8%

34%

4,6

2,3

3,4

7,4

2,5

4,5

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

Eurocash Retail (DC+Eko+Mila)*** Stokrotka* Dino**

Eurocash Retail

Sales Area

Dynamics

66%

Sales

Dynamics

60%

Number of Stores

Dynamics

41%

Delikatesy

Centrum sales

density higher than

competition by

app. 20%

Innovative solutions for our clients are coming into play

12

Thanks to investments and innovative solutions not available for large format players, small stores have ability to win

CRM

> CRM platform available for all

clients

> Customized promotion for each

consumer visiting franchise store

> B2C platform, based on

DeliKarta mechanism

E-commerce B2B

> Online store and mobile app

> Market & local competition

insights

> Financial & delivery

information

Sales: 2.9 bn PLN

Fresh Project

> Successfully developed in

Delikatesy Centrum

> Roll-out to ECD franchisees

> First nationwide fresh

product distribution with

everyday morning delivery

Training

> Training for owners and their

employees

> Facilitates succession

> E-Learning, Workshops, Congresses

& Postgraduate Business Studies

35 45 57 83

98 121 132 137 146 156

1Q 2016 2Q 3Q 4Q 1Q 2017 2Q 3Q 4Q 1Q 2018 2Q

Going forward, extended roll-out of projects will create further value

Fresh Project sales evolution (PLN m)

Further potential for growth:

Increase of Delikatesy Centrum penetration

Extension to Lewiatan, Gama, Euro Sklep, Groszek chains

Expansion with own retail chain

13

FRESH PROJECT extension Break even point much faster than expected

Our investment in the future

01

abc na kołach

02

Pay Up 03

04

05

06

07

08

Kontigo

Duży Ben

Sushi To Go

4 Vapers

Faktoria Win

Piwne Terytoria

Private Labels

Faktoria Win – already brought back wine category to small stores

Duży Ben may take advantage from neighborhood discounters traffic generation

Fresh Project – is a must to strengthen brand perception against competition

Extension of initiatives to full customer-base will ensure future competitiveness of both Wholesale and Retail

Executive summary

14

Traditional trade is still half of the FMCG market, supported by Eurocash, and growing (especially small

supermarkets) despite lower inflation of their category mix,

Cash generation has allowed ongoing Eurocash investments in sales growth and innovation initiatives,

albeit in recent years at the expense of EBITDA in tough market conditions,

Today, optimized costs and nationwide logistics provide a solid base for Wholesale’s modernization with:

digital ordering platform, CRM, perishables and a new format roll-out,

Going forward with investment in Retail, a nationwide supermarket chain is now in place which is to grow

by 900 stores in 5 years to 13 bn PLN,

1H 2018 show results under control in sales, gross margin and costs.

15

APPENDIX

1H 2018 Results

16

WHOLESALE - STRONG GROWTH

with sales +5,3% and EBITDA +12,8%

YoY in 1H 2018

RETAIL – 187 MILA STORES ACQUIRED

Integration work in progress.

149 EKO stores under Delikatesy Centrum brand

STRONG CASH FLOW GENERATION

at 1.6x LTM EBITDA

1H 2018 Results Summary

STRONG IMPROVEMENT IN WHOLESALE, PREPARING GROUND FOR RETAIL

PROJECT FRESH CLOSE TO BREAK EVEN

with 301m PLN sales in 1H 2018 (+82m PLN)

NET DEBT UNDER CONTROL

at 1.9x EBITDA, despite M&A

and dividend payment (-450m pln)

Wholesale Segment – back on growth track with Cash&Carry turnaround

17

Strong performance improvement in 1H 2018 with sales +5.3%, EBITDA +12.8% and EBIT +21.7% YoY.

Gross margin stabilized at flat level with further potential to improve. Cost pressure covered by improved efficiency.

CC LFL +2.7% in 2Q and +2.2% in 1H 2018 YoY. Best result in last 17 quarters.

ECD with +10% sales increase in 1H YoY. ECS already stabilized, +5.1% sales increase in 1H YoY.

7 885 8 155 8 590

1H 2016 1H 2017 1H 2018

+475m

+5.3%

+270m

+3.4%

1H 2018 Sales evolution (PLN m)

+18.1m

+12.8%

-0.7m

-0.5%

1H 2018 EBITDA evolution (PLN m)

142,8 142,1 160,2

1,81% 1,74% 1,87%

1H 2016 1H 2017 1H 2018

EBITDA EBITDA margin %

Wholesale sales dynamics Wholesale segment supported by increased competitiveness of its clients

18

C&C LFL in 2Q 18 at +2.69% and 2.16% in 1H 2018 - best performance in last 17 quarters.

Tobacco with stable 5% sales growth in 1H 18. Business already stabilized.

ECD sales driven by franchisees (Lewiatan, PSD, Euro Sklep, Groszek) and gas stations.

Wholesale sales evolution (1H 2018 YoY)

12,2%

-0,8%

10,0%

5,1%

2,1%

5,3%

Food Service

Alcohol

Distribution

Tobacco & Impulse

Cash&Carry

Wholesale

2,7%

1,5%

-0,4% 0,3% 0,3%

-4,6% -5,2%

-3,6%

-1,3%

-4,0% -3,5%

-2,2% -2,7%

0,0%

-4,9%

0,7%

2,6%

1,3%

3,6%

2Q1Q4Q'173Q2Q1Q4Q'163Q2Q1Q4Q'153Q2Q1Q4Q'143Q2Q1Q4Q'13

C&C LFL

1 142

1 649 1 771

1H 2016 1H 2017 1H 2018

54,0

74,3

53,6

4,72% 4,50%

3,02%

1H 2016 1H 2017 1H 2018


Retail – increased asset base, ongoing integration 149 EKO stores under Delikatesy Centrum brand. Mila integration planning started

19

Sales increase driven by M&A. June 2018 Mila sales at 120.4 m PLN.

5Y plan +900 openings sustained. Half of 2019 own stores expansion already addressed with small chains M&A.

Retail strategy sustained – needs to play as complimentary to franchisees, wholesale clients and the Group.

Delikatesy Centrum LFL in 1H 2018 LFL + 4.5% in wholesale and +0.9% in retail. 2Q 2018: +0.9% in wholesale

and -1.8% in retail (Easter effect).

+123m

+7.4%

+506m

+44.3%


-21m

-27.9%

+20m

+37.6%


EKO integration

EKO + Mila consolidation

2 361 pro forma

+43% incl. Mila

Polish market – potential for proximity stores development There is a space for new selling area in the market

20

Criteria for selection of grocery stores for the 10 most popular chains (%)

Sales area (m2) per capita 2017

0,67

0,72

0,75

0,98

0,99

1,01

1,03

1,04

1,04

1,05

1,09

1,13

1,13

1,13

1,18

1,20

1,27

1,30

1,43

1,44

1,47

1,50

1,59

1,66

1,67

Turkey

Romania

Bulgaria

Poland

Portugal

Slovakia

Hungary

Czech Rep.

Italy

Latvia

United Kingdom

Croatia

Lithuania

Spain

Estonia

France

Sweden

Norway

Denmark

Germany

Luxembourg

Switzerland

Netherlands

Austria

Belgium

2%

3%

3%

3%

4%

5%

5%

7%

12%

12%

12%

27%

41%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Offer new products

Attractive loyalty program

Do not overwhelm the surface / number of products

The Polish origin of this store

A lot of Polish products

Interesting / inspiring products

Attractive products of the brand of a store

Shopping is fast

Attractive promotions / discounts

They always have what I come for

Other: high quality products

A wide range of products

Affordable prices

Close to my home

Poland - country with one of the lowest selling area per one person in Europe

Proximity the most valued for Polish consumers

102

247

338

1H 2016 1H 2017 1H 2018

-15,4

-26,4 -26,2 -15,1%

-10,7%

-7,8%

1H 2016 1H 2017 1H 2018


Projects – investments (at EBITDA level) into future growth Fresh Project close to break even

21

Fresh Project with 302m PLN sales in 1H 2018 (+82m) close to break even in 2Q 2018.

Duży Ben & Kontigo – moved into proven for many years franchise system.

+91m

+145m


+0.2m -11m


Most relevant for Delikatesy Centrum positioning and competitiveness.

PLN m 1H 2017 1H 2018 % of Sales

1H 2017

% of Sales

1H 2018 Y/Y Change

Net sales 10 118 10 776 7%

Gross profit 1 186 1 288 11.7% 11.9% 9%

EBITDA (excl. Projects, normalized*)

184 186 1.8% 1.7% 1%

EBITDA normalized* 158 160 1.6% 1.5% 1%

One-off costs* -114 -3

EBITDA reported* 43 157 0.4% 1.5% 261%

EBIT normalized* 68 64 0.7% 0.6% -6%

Profit before tax normalized* 51 45 0.5% 0.4% -11%

Net profit 38 21 0.4% 0.2% -46%

22

Sales driven mainly by wholesale segment

(+435m PLN) and consolidation of Mila

(+120m PLN).

Gross Margin stabilized after 1H 2018.

Increase by 0.22 p.p. YoY driven by retail

segment and consolidation of Mila.

Normalized EBITDA increase by 1%, driven

by wholesale segment, and off-set by EKO

stores remodeling.

Depreciation driven by retail segment.

Net Profit affected by increased effective tax

rate due to changes in law.

1H 2018 financial summary Strong sales increase driven by wholesale segment

* 2018 results normalized by costs of Mila M&A, 2017 by add. VAT tax payment

PLN m 2Q 2017 2Q 2018 % of Sales

2Q 2017

% of Sales

2Q 2018 Y/Y Change

Net sales 5 467 5 775 6%

Gross profit 655 706 12.0% 12.2% 8%

EBITDA (excluding Projects, normalized)

131 132 2.4% 2.3% 1%

EBITDA normalized* 120 120 2.2% 2.1% 0%

One-off costs* 114 3

EBITDA reported* 5,9 117,0 0.1% 2.0% 1894%

EBIT normalized* 74,8 70,6 1.4% 1.2% -6%

Profit before tax normalized* 66,7 62,0 1.2% 1.1% -7%

Net profit 52,6 39,0 1.0% 0.7% -26%

23

Sales driven mainly by wholesale segment

(+166m PLN), and consolidation of Mila

(+120m PLN).

Gross Margin increase by 0.24 p.p. YoY

- stable in wholesale segment, driven by Mila.

EBITDA driven by wholesale segment, and

off-set by EKO stores remodeling.

Depreciation driven by retail segment.

Net Profit affected by increased effective tax

rate due to changes in law.

2Q 2018 financial summary Strong sales increase driven by wholesale segment


24

EBITDA* performance by segments

1H 2018 EBITDA by segments

-20.7m +18.2m +0.2m

C&C increasing LFL and profitability EKO integration – short-term impact

on profitability

DC own stores above expectations

DC Franchise improvement of

profitability, focus on Fresh Project

Tobacco impacting 1H results but

already stabilized with high potential

for growth in next quarters

Fresh Project improving results,

close to break even,

positive EBITDA in 2H 18 expected

Costs improvement

+4.1m +1.9m

EC Distribution 10% sales increase

STRONG FOCUS ON:

• WHOLESALE OPTIMIZATION

• RETAIL INTEGRATION

• COSTS CONTROL

142,1

74,3

-26,4 -32,1

157,8 160,2

53,6

-26,2 -27,9

159,6

Wholesale Retail Projects Others Eurocash Group

1H 2017 1H 2018


-30.9m incl. one-off costs (Mila acquisition fees)

31 31 28 30 30 27

25 23 21 24 24 24

( 21) ( 21) ( 22) ( 27) ( 23) ( 25)

( 76) ( 75) ( 71) ( 81) ( 77) ( 76)

-100

-80

-60

-40

-20

0

20

40

Q1 2017 Q2 Q3 Q4 Q1 2018 Q2

Receivables Stock Cash conversion Liabilities

25

Cash Flow LTM Operating CF at 168% EBITDA

Strong cash generation sustained in 1H 2018.

Strong improvement of receivables rotation in wholesale segment

Cash conversion cycle (restated after IFRS 15)

PLN m 1H 2017 1H 2018

Net operating cash flow 171 186

Net profit (loss) before tax (64) 42

Depreciation 90 96

Change in working capital 141 63

Other 4 (15)

Net investment cash flow (204) (378)

Net financial cash flow 25 138

Total cash flow 8 (54)

2Q 2017 2Q 2018

256 240

(48) 59

45 49

243 150

15 (18)

(65) (338)

(175) (251)

15 (349)

431 441 419 361 363 360 584 486 464 370 468 684

1,36

1,10 1,11 1,02

1,29

1,90

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0

100

200

300

400

500

600

700

800

1Q'17 2Q 3Q 4Q 1Q'18 2Q

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

Net debt vs. normalized** LTM EBITDA

26

Net Debt increase by 214m PLN despite payment of dividend (102m) and

Mila acquisition (350m) in 2Q 2018.

*NET DEBT - the sum of long and short term loans, borrowings and financial liabilities less cash and cash equivalents

Net Debt* vs. 12M EBITDA in 2Q 2018

Strong Cash Flow sustained

**Adjusted for one-off item – 114 m PLN potential VAT liability payment done in Aug 2017

0,93x

335 excl. M&A

Disclaimer

27

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:

Cezary Giza

Investor Relations Director

[email protected]

mobile: +48 693 930 415

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