2017

Results Presentation

SUMMARY OF THE PRESENTATION

2

2017 RESULTS OVERVIEW:

TOUGH IN TERMS OF PROFIT – STRONG IN TERMS OF CASH FLOW

Part 1.

2023 STRATEGY: FIT FOR THE FUTURE

RETAIL

DRIVER OF GROWTH

WHOLESALE

DRIVER OF CASH

Part 2.

OPTIMIZATION PLAN AND COST SAVINGS IDENTIFIED

5Y OPERATIONAL HIGHLIGHTS

EUROCASH FIT FOR THE FUTURE

3

Increased Capex in time of deflation and cost pressure

Investment into sales growth

Return to inflation, wage cost pressures and labour shortages.

Eurocash solid sales growth with 8.9% 5Y CAGR

Short-term EBITDA underperformance overlap the Group's initiatives

to boost long-term competitiveness

Strong Operational Cash Flow (1.67x EBITDA 2017) constantly

reinvested into sales growth

PART 1

2017

MARKET OUTLOOK

AND EUROCASH GROUP RESULTS

4

9,0%

-1,3%

3,4% 2,5%

-2%

0%

2%

4%

6%

8%

10%

Discounters Hypermarkets 2500+ Supermarkets 300-2500 Small Format - Total

FMCG MARKET GROWTH

Small Format growing 2.5% vs. FMCG market growth of 4.2% in LTM Nov 2017

5

FMCG market growth by channels

(YoY, LTM Nov 2017)

Food market growth by channels

(YoY, LTM Nov 2017)

Although inflation supports Large Format, small format stores with growing sales. Small Supermarkets

outperform the market.

Source: Nielsen; *LTM – Last Twelve Month

5,1%

-4,6%

0,1%

9,9%

-5%-3%-1%1%3%5%7%9%

Specialized & Others Small Grocers -40 Convenience 40-100 Small Supermarkets 100-300

INFLATION & SALES DYNAMIC BY CATEGORIES

Discounters and Supermarkets taking advantage from inflation

6

* Estimation based on Nielsen data. Calculation based on Total Poland data: food category share in total channel multiplied by difference of value and volume change in category sales.

In addition impact of F&V and Meat category was calculated as multiple of GUS inflation and assumption of category share in total sales (for stores above 100sqm 26%, and for stores below 100 sqm 15%)

2017 inflation (YoY): +2.0% CPI, +4.2% food and non-alcoholic beverages, +1.1% alcohol & tobacco

Inflation driven by Large Format categories

16,0%

8,0%

5,9% 4,8% 4,6%

3,4% 2,9% 2,8% 2,8% 2,5% 2,1%

0,2% 0,1% 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Source: GUS

Food inflation by categories (2017)

6,6%

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

4,6% 3,7%

2,2%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

Discounters Hypermarkets2500+

Supermarkets300-2500

Small Format SmallSupermarkets

100-300

Convenience40-100

Small Grocers-40

Estimated* food inflation by channel (LTM Nov 2017)

12 198

6 542

935 271

12 718

7 067

2 153 552

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

Independent Wholesale Integrated Wholesaleexcl. adj.

Retail Projects

2016 2017

7

EUROCASH GROUP SALES DYNAMIC

Total Group sales dynamic +10% YoY, each segment with growth above inflation

Eurocash sales by segments 2017

+4.3% (excl. export)

+8.0% incl. adjustments

(FHC-2, Fresh Project, excl. export)

+130% +6.6% excl. M&A

(EKO, FHC-2)

Sales evolution to Eurocash’s franchisees with small supermarkets

*ECD Franchisees: Lewiatan, Groszek, Euro Sklep, PSD/Gama

**Consolidated Independent Wholesale sales dynamic at +3.53%, Integrated Wholesale sales dynamic at +0.57%

Convenience & Small

Grocers <100sqm

Small Supermarkets

100-300sqm

Specialized & Small

Supermarkets

100-300sqm

9,5% 10,1%

7,0%

11%

8,6%

13,2%

8,1% 6,9%

2,2%

6,2%

4,3% 3,9%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

Q1 2017 Q2 Q3 Q4

ECD sales to franchisees* dynamic Delikatesy Centrum wholesale LFL

Delikatesy Centrum retail LFL**

Increased market share in all Small Format segments

**

PLN m (Normalized*) FY2016 FY 2017 % of Sales

FY 2016

% of Sales

FY 2017 Y/Y Change

Net sales 21 220 23 271 10%

Gross profit 2 112 2 441 10,0% 10,5% 16%

EBITDA* 440 361 2,1% 1,6% -18%

EBIT* 274 177 1,3% 0,8% -35%

Profit before tax* 236 135 1,1% 0,6% -43%

Net profit* 190 85 0,9% 0,4% -55%

8

Sales driven by M&A (+1.26 bn PLN),

organic growth in Delikatesy Centrum,

EC Distribution

Gross Margin driven by retail M&A.

Excl. M&A and Projects Gross margin

decreased by 0.5 p.p. YoY – impact of

short-term issues.

EBITDA impacted by additional M&A

integration costs and one-off items

Net Profit affected by higher interest

costs due to increased leverage

FY 2017 FINANCIAL SUMMARY*

Strong sales growth driven by M&A, profitability decreased by lower margin and additional costs

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

440 361

329 327

25 56

0

100

200

300

400

500

600

700

800

2016 EBITDA Total Gross Margin Increase SG&A M&A + Retailsubsidiaries

One-off costs(restructuring, advisory fees,thefts, overdue receivables)

Cost Increaseincl. Logistic integration

2017 Normalized EBITDA*

9

2017 COSTS

Logistic integration and one-off items affecting 2017 normalized EBITDA*

One off items + increasing costs driven by logistic integration impacts result by 0.3% of sales

80% of one-off items in 4Q 2017

Gross margin impacted mainly by Independent Wholesale and Delikatesy Centrum

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

252 270

33

-40 -76

181 274

41

-48 -87

-200

-100

0

100

200

300

Independent Wholesale Integrated Wholesale Retail Projects Others2016 2017

10

EBITDA PERFORMANCE BY SEGMENTS

2017 EBITDA by segments

-28.2% +1.4% +24.8% -14.9%

-60m PLN

Gross Margin in all formats

(incl. Inventory losses)

-18m PLN

DeliC Gross Margin

to be recovered by

Fresh Projects

-12m PLN

one-off + costs increase

Growth driven by M&A,

One-off costs and integration

impacting profitability

Inline with

expectations

-18m PLN One-off costs

CASH&CARRY RESTRUCTURING

11

More sales retained than expected, one-off costs in line with expectation

10 stores closed

72% retained sales 9.4 m PLN one-off costs:

6.7 m PLN in 2017 2.7m PLN in 2018

2018 savings: 9.8m PLN 2019 savings: 12.7m PLN

5 stores under consideration in 1H 2018

PROGRESS IN EKO INTEGRATION

12

5 Opened

Delikatesy Centrum

228 EKO Holding

stores

55 Rebranded

Delikatesy Centrum

168 EKO

Mergers of distribution centers done

Integration of HO pending MILA Acquisition

Gross Margin upside is being captured

Store rebranding under way

90% 100%

4,8% 5,6%

0%

40%

80%

120%

EKO Gross Margin Remodeling: Stocklossess + Sell-out

actions

Retail services +Promotions after

reopening

Rogala Gross Margin

Gross Margin difference to DeliC Rogala (own stores)

29 29 27 30 28 28 25 27

20 20 18 19 22 20 19 21

(21) (20) (18) (18) (18) (18) (20) (23)

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

(70)

-80

-60

-40

-20

0

20

40

Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4

Receivables Stock Cash conversion Liabilities

13

CASH FLOW

2017 Operating CF* at 167% EBITDA* (Normalized)

*Adjusted for one-off VAT item

Operating Cash Flow driven by improved working capital effectiveness

WC driven by consolidation of acquired companies, organic improvement of receivables rotation

and liabilities rotation back to 1H 2016 level

Cash conversion cycle PLN m, Normalized* 2016 2017

Net operating cash flow* 324 589

Net operating cash flow (rep.) 494

Net profit (loss) before tax* 236 133

Depreciation 166 183

Change in working capital* (99) 235

Change in working capital (rep.) 248

Other* 21 37

Net investment cash flow (270) (336)

Net financial cash flow 22 (117)

Total cash flow * 76 136

Total cash flow (rep.) 41

NET DEBT VS. NORMALIZED EBITDA

14

Net Debt impacted by additional

VAT payment in 3Q 2017

Impact of M&A and dividend

payment for 2016

Liquidity at healthy level,

supported by strong cash

generation

Dividend policy to be sustained –

paid from reserve capital

*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 4Q 2017

Strong Cash Flow off-setting payment for additional Vat, M&A and dividend

481 477 466 440 431 441 419 361 240 317 231 324 584 486 464 370

0,50

0,66

0,50

0,74

1,36

1,10 1,11 1,02

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 3q 4q

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

PART 2

EUROCASH GROUP

STRATEGY UPDATE

15

3Y cost saving plan – 150m PLN, with 70 m PLN implemented to date

Split on Wholesale and Retail business

Each business with dedicated Management Team

Retail – focus on expansion and growth

Wholesale – focus on clients’ competitiveness and costs optimization

Focus on the promising projects that we already started to develop

2023 STRATEGY

SUMMARY

16

EUROCASH

SPLIT ON 2 BUSINESSES

17

WHOLESALE

1

7

RETAIL

Biggest proximity supermarket

chain in Poland

Focus on efficiency and competitiveness

improvement of our clients

EUROCASH RETAIL

Differentiation point

18

BIGGEST PROXIMITY SUPERMARKET CHAIN IN POLAND

NEIGHBOURHOOD

STORE

PROXIMITY

HIGH QUALITY OF

PERISHABLES

DELIVERED EVERYDAY

PERSONALIZED

PROMOTIONS

CRM SYSTEM

E-GROCERY FOR BIG CITIES

HOME DELIVERY & PICK IN STORE

2023

2018 EUROCASH RETAIL

19

BIGGEST PROXIMITY SUPERMARKET CHAIN IN POLAND

7.4 bn PLN

5.1 bn pro-forma consolidated sales

1 527 stores

4,3

3,1

Retail Sales (PLN bn)

989

538

No. of stores

Pro-Forma own stores

Franchise stores

Franchise retail sales

Pro-Forma own stores

sales

EXPANSION

Retail strategy based on development of own small supermarket chain

20

3 VECTORS OF GROWTH

MERGERS &

ACQUISITIONS

GREENFIELD

STORES

FRANCHISE CHAIN

DEVELOPMENT

Organic growth by 50 stores annually

Equity partnership as solution for succession issue

Regional chains Own stores built with Real Estate partners

ONE HEAD OFFICE SERVING OWN & FRANCHISE STORES

OBJECTIVE: 900 NEW STORES BY 2023

RETAIL MARKET BENCHMARK (2016)

Delikatesy Centrum with similar profitability to market benchmark companies

21

*Source: Companies Reports, Polish Registry Court, Żabka data from Rz500, www.pb.pl

** Currency exchange rate: 4.2 EUR/PLN

7,2% 5,9% 6,2%

8,5%

6,6%

0%

2%

4%

6%

8%

10%

Biedronka Kaufland Żabka Dino Netto

POLISH PEERS EBITDA MARGIN

DC

GREENFIELD

DC ROGALA

LFL STORES

(RETAIL + WHOLESALE)

Sales (PLN m, annual)

1 MATURE STORE

Gross Margin level

EBITDA Margin

5.4 6.2

Sales Area (sqm)

103% 100%

6.4% 6.9%

350 367

Sales per sqm (PLN)

15 600 16 900

2023 EUROCASH RETAIL (ESTIMATION)

22

BIGGEST PROXIMITY SUPERMARKET CHAIN IN POLAND

13.0 bn PLN TOTAL CHAIN SALES (Franchisees + Eurocash)

10.0 bn PLN EUROCASH RETAIL CONSOLIDATED SALES

2 400 PROXIMITY SUPERMARKETS (Franchisees + Eurocash)

1.0-2.0 bn PLN TOTAL INVESTMENT

(Real Estate Owners + Eurocash)

app. 5bn PLN increase

EUROCASH

SPLIT ON 2 BUSINESSES

23

WHOLESALE

2

3

RETAIL

Biggest proximity supermarket

chain in Poland

Focus on efficiency and competitiveness

improvement of our clients

WHOLESALE

Set of systems and solutions to modernize our clients

24

eHURT platform Fresh Delivery CRM TRAINING

Development for each format –

2.4 bn PLN current sales

Online store and mobile app

Market & local competition insights

Financial & delivery information

Available for each client

Roll-out to ECD

franchisees

First nationwide fresh

product distribution

Loyalty card

CRM platform available

for all clients

B2C platform, based on

DeliKarta mechanism

Eurocash Academy

20 000 trainings

Training for owners and

their employees

Makes succession much

easier

EUROCASH CASH & CARRY

Modernization of clients through assets available in all Eurocash formats

25

2003-2016 2017 2018-2019 2020<

STRONG EXPANSION

COST OPTIMIZATION

CLIENT’S MODERNIZATION

DEVELOPMENT OF NEW

STRATEGY…

26

Faktoria Win

EUROCASH GROUP BCG MATRIX

The Group has a balanced portfolio investing cash from mature wholesale into retail and franchise growth

PROJECTS

27

FRESH PROJECT

FRESH PROJECT – 490 m PLN sales, break even plan in 2019

28

Fresh Project sales evolution (PLN m)

% of Delikatesy Centrum stores in Fresh Project

34,7 45,3

56,5

82,7 98,4

121,2 131,8 137,2

0

20

40

60

80

100

120

140

160

1Q 2016 2Q 16 3Q 16 4Q 16 1Q 2017 2Q 17 3Q 17 4Q 17

32% 37%

43%

64% 63% 66% 72% 72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1Q 2016 2Q 16 3Q 16 4Q 16 1Q 2017 2Q 17 3Q 17 4Q 17

Further potential for growth:

Increase of Delikatesy Centrum penetration

Development to Lewiatan, Gama, Euro Sklep, Groszek

Expansion into own retail chain

PROJECTS

Successfully developed new formats to professionalize our clients

29

FAKTORIA WIN Successful and profitable project

4500 FW stores 700 PT stores

DUŻY BEN Roll-out started in 2018

5 out of 12 stores at break even

PayUp POS financial services

423 m PLN sales 34% YoY increase

PROJECTS

Developing new formats to professionalize our clients

30

KONTIGO 61% lfl

Going into right direction Franchise concept

development in 2018

FRISCO.PL 31% sales increase

Fully automated logistic center in 2019

1MINUTE Project suspended

Not satisfactory results due to lack of offer

SUMMARY OF THE PRESENTATION

31

2017 RESULTS OVERVIEW:

TOUGH IN TERMS OF PROFIT – STRONG IN TERMS OF CASH FLOW

Part 1.

2023 STRATEGY: FIT FOR THE FUTURE

RETAIL

DRIVER OF GROWTH

WHOLESALE

DRIVER OF CASH

Part 2.

OPTIMIZATION PLAN AND COST SAVINGS IDENTIFIED

DISCLAIMER

32

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:

33

Cezary Giza

Investor Relations Director

cezary.giza@eurocash.pl

mobile: +48 693 930 415