Good morning, ladies and gentlemen. I'd like to welcome you.

Based on yesterday's releases, we'd like to tell you what's happening in our organization, what are the reasons for the softer performance, what's happening in the organization, how we intend to move on as we function, and I'd like to give the floor at this time to Łukasz. Good morning.

Good morning. Just as we published in yesterday's report, as at present, we assume that in the ending financial year 2025, we're going to have around 11 billion.

The EBITDA that we are targeting is more than 1.4 billion. These levels are lower than our estimates up until now and what we had intended to achieve, and this is a consequence of what happened in Q4 2025 being below what we had anticipated.

Let's move on to the next slide. Let me drill down in what happened in Q4.

We should focus first on revenue. Revenue, we assume is going to be down by roughly 0.5 billion with respect to what we had planned for this year.

The lower execution of revenue breaks down in the following way: roughly 250 million less in retail sales. We had assumed that we would have positive like-for-like around plus 4%, but in terms of the performance, we had slightly worse.

We're going to talk about that in the various lines of business and how that basically fleshed out. Then e-commerce is 200 million below expectations, and the 50 million comes from wholesale.

Our gross margin is lower by 3.5 percentage points than we had assumed. This is a result of a write-down on inventories, which is roughly 1.3 percentage points.

We also had greater promotional activity in order to stimulate traffic, which was clearly short. In terms of costs, we tried to catch up in this quarter through strict control of fixed expenses, and this was possible to have lower variable costs, and that means costs are down by roughly 100 million.

As a result, the EBITDA that we're estimating at this point in time, you have that information on the slide, it's roughly 200 million, and what we mentioned in the release, we put a range of 180 to 200 million zlotys being the shortfall. If we look at revenue, we can say that this was driven by the softer consumer, which we observed in Q4.

That means that we had less traffic in our stores. The traffic meant that we had a like-for-like in the negative at 1.9% in fixed currencies.

Having in mind such great expansion and looking what's happening with the competitors, we believe that this is a decent result. Of course, it's not a result that is satisfactory to us.

If we look at revenue in e-commerce, here we saw revenue drop off by 23%, and this was primarily a result of intentional limitation in the transformation of our e-commerce model as we want to generate more profitable sales through the sales of own products and licensed products. We didn't want to sell as much the third-party brands, and we were trying to reduce performance marketing costs.

It's not visible yet in our results, but they will clearly appear in the near future. If we look at the level of gross margin year-on-year, it's down by slightly below 3 percentage points.

On the following slides, I'll discuss this on a drill-down basis. This is a result of promotional activities, the write-down on inventories, as well as some licensing fees, which, in part, pertain to future periods, especially when we have signed a new agreement where we're only beginning the sales of licensed products.

If we look at costs in turn, we can say that costs are growing across the group at 20%, while the selling area has grown by some 28%. The pace of growth of costs is slower than the pace of growth of selling area, and so we're trying consistently to obtain economies of scale, and in the more demanding market conditions, this is something that we'd like to endeavor to do in order to achieve the most optimum result.

Despite these efforts, our EBITDA that we estimate for the quarter is 200 million, which is clearly below last year's EBITDA watermark. If we go ahead and look now at the results of the various lines of business, we can start with CCC Omnichannel, which is the summary of our offline businesses and e-commerce business.

Here, we can say that the level of revenue, which is 1 billion 30 million, which is more or less slightly below what it was last year, and a gross margin of 59%, and we have a pretty decent cost ratio, 44.6%. As a result, the EBITDA margin is in excess of 14%.

CCC line of business has additional costs of licensing fees for other lines of business. This is a consequence of the fact that the original license agreement was primarily for CCC, and that's why the licensing fees are allocated to CCC.

In part, these license fees pertain to future periods, and they will be spread over a three-year period. As we had agreed, from the very beginning of the new financial year, as more and more licensed products would be sold through our other lines of business in HalfPrice or efootwear, well, those license fees will be paid for in those lines of business where, in fact, those costs are incurred, to which they pertain.

We also have CCC, which consolidates the other smaller lines of business like Shopbox, Worldbox abroad, and so the sales potential has not yet been fully achieved. As a result, we have wholesale business at a lower margin.

That is why the margin achieved by CCC is lower. While the gross margin is 47.4%, and we have a higher cost ratio in excess of 50%, and as a result, the EBITDA margin is roughly 7%.

Having that in mind, we can say that HalfPrice is doing very well. It is consistently achieving our intentions and what is expected of it.

Sales are up by 29% to 729 million, with a very decent gross margin for off-price, which is 51.5%. The cost ratio is 40.6%, and we have a robust EBITDA margin in excess of 18%, which is close to our target of 20% for group and for HalfPrice, too.

This is where we've set the target. The situation looks different for Modivo, and this is part of the transformation that we talked about in terms of having a smaller volume, but a more, let's say, a business model that's based on selling licensed goods and products as opposed to the less profitable brands of other brands.

We can see that the revenue has fallen substantially by 24%. The gross margin is pretty flat year-on-year at 39.8%.

We continue to ramp up the share held by more profitable licensed brands, but at the same time, we had to give discounts on third-party brands in Q4, which offset the upswing in revenue and margin generated by licensed brands and licensed products and own brands. We can say that the margin, EBITDA margin that's achieved, which is clearly negative, is not in line with our expectations, the results will improve.

Across the full year, the EBITDA margin for Modivo is better for the full year, and it's around 8%. Compared to our peers in the competition, it's pretty decent, where we have EBITDA for them around 3.5%.

We do, of course, have clearly higher ambitions. As I move on to a more drill-down approach to our results in the various lines of business like CCC and HalfPrice, in Q4, they were negative in CCC, it was -2.3% like-for-like, and you have the breakdown what this is derived from.

Within the quarter, it's -2% at CCC, and the picture for HalfPrice is better in terms of like-for-like. It's 0.2%.

If we compare that to the base for HalfPrice, where last year we had like-for-like in excess of 8%, well, we can say the 0.2% in Q4 is a decent result, having in mind the dynamic growth in selling area of which is up by some 30%. We also have market signals that the traffic in shopping malls and stores, generally speaking, has fallen short.

If we look at the like-for-like and we try to break that down, decompose that result, we can say that traffic is what's missing. The customers coming into our stores, well, as we look across the board at our business, we can say there's growing numbers, but if we look at the incremental growth of customers, it's not taking place at such a pace that it would be possible to generate a positive like-for-like performance.

If we look at the data available across the retail industry and looking at the data published by our competitors, we can say that these results aren't too bad. In this demanding picture, what is positive here is conversion.

For CCC and HalfPrice, we can see that it's improving. Conversion in CCC is close to 15%, it's up by 1 percentage point year-on-year.

If we look at HalfPrice, conversion is coming close to 20%. These are good results, or very good results, in fact.

This shows that a customer who comes into our stores to a greater and greater extent is finding suitable products, and that person is happy with having his or her expectations met. This is something we want to stimulate to an even greater extent.

On one hand, we can see we have high bars in January. This is something that's pleasing because we've been able to sell off the winter product range, and so we have not very much of the winter left to go in terms of our stock.

Our CEO will talk about that. You talk about the results, and I'll say more about those other items, okay?

January is a period of more sales, but it's taking place, we have higher volume, but at lower margins.

Now if we look at our sales results or like-for-like results, this is also affected by the fact that footwear is the major product category in the group, and that means our sales are more demanding in terms of the product range, because the broader the product range offered by the group, well, that means that we can manage sales and we're more and more independent of market factors and weather factors, it becomes easier to do. You can see that we continue to work on expanding our diversification, but we can say that that only represents, say, one-third of our sales mix.

Let me say a couple words about margins. At CCC and Omnichannel, it's flat year-on-year at 59%, it's close to the 60% target that we have fixed.

We have a higher percentage of licensed brands and improving purchasing conditions, and so these positive effects were offset by utilization of promotions. If we look at CCC and what's strapping it down, we have the licensing fees we referred to, which, in part, pertain to future periods.

We have the write-off of inventories, and then 1.3%, and it's down by 2% because of wholesale sales being down in terms of the margin, and then the margin is flat in Modivo. HalfPrice is up by 1%, we have a higher percentage of licensed brands, and we're driving sales for third-party products.

Then if we can go on and look at costs. Costs are something that we're very diligent about, and we can say that across all of our lines of business, the nominal costs are up, but they're growing more slowly or at least on pace or at the same rate as the growth in the commercial space or the selling area that we have.

If we look at the inventories now, nominally speaking, our inventory is up by 3% year-on-year, it's up at 3.7 billion. We make an estimate at the end of the quarter.

These estimates don't incorporate possible consolidation of MKR at the end of the quarter. Nominally, we can say that the inventories are up by 3% quarter-on-quarter, they're down by 3%.

The assumption is that we wanted to go even lower at the end of Q4. On the other hand, having in mind sales being lower than had been anticipated, and then we have this parameter which is inventory per square meter.

Here, we can see a pretty robust decrease of nearly one-quarter, it's 24% that we've been able to shrink those inventories. We've not yet gotten to where we want to get, but we're more and more effective at managing our inventories.

Inventories are falling across all of our lines of business with the exception of HalfPrice, but it's growing at a slower pace than the increase in selling area. We have higher receipts of our collections year-on-year, and so this gives us the ability to manage the financing of our inventories, and we can do more here to optimize that, and payment terms are being negotiated and extended with our suppliers.

A couple words I would like to say about the achievement of our operational objectives in this quarter. One of the goals was to continue growing the selling area, and so we talked about this in the past.

We can say that brick-and-mortar stores are the pillar of our growth, and so we're going to more than exceed our targets. We're going to have an addition of some 300,000 square meters, and so the increase at HalfPrice is particularly important because we have this up by 170,000.

Q4 was not evenly distributed, a big portion was in December and January. The new selling area added in Q4 has only, to a small degree, contributed to the results of Q4.

As we said, our brick-and-mortar stores are the pillars of our profitability, the average EBITDA profitability in a store of CCC is 34%. We have a higher average EBITDA in Poland, lower abroad, and so basically, we have 25% average profitability EBITDA in HalfPrice, 27% in Poland, and 20% abroad.

As people become more and more aware of it, and then we would have the increasing efficiency, operational leverage, and that's why we want to increase the density of our footprint. We see that this is the right path to follow.

If we talk about brick-and-mortar stores, what we need to work on is the improvement of profitability in efootwear. Here, we see positive growth, but we have not yet achieved or gotten to the place where we want to arrive.

If we look at the development of the licensing model across the group, we want to pump up the share held by licensed brands over the last couple years. We've been able to increase that by 10%, or 10 times, from 2% to 20%.

If we look at licensed brands along with our own brands, that's nearly 50%. Partnership brands still account for 50%, 54%, but this is something that will be changed.

The short view of what we see in 2026, why do we anticipate improvement in our results in 2026? Above all, we'll have a higher amount of commercial or selling area at the beginning of the year, it's up by nearly 30%.

We are in a totally different place now than we were a year ago, we have greater selling area, and so we have the newly opened stores which have been open for a few months, and so we have good, positive results, and so this is something that will continue to contribute to the group's results across the year. We also have new selling area in 2026, we will continue to grow.

The anticipation is that it will be 290,000 additional square meters, which would give 25% growth. We are continuing to have a higher gross margin, better purchasing conditions of collections, negotiating better prices, and the US dollar exchange rate is improving, freight costs are down, and also we want to optimize our discounting activity.

We're beginning with a much better inventory, and so we've been able to drop that level of inventories per square meter. We'll be able to basically manage this discounting function more reasonably.

We've been successful in terms of our implementation of the Modivo Club. Having a bigger magnitude of our business will make it possible to be more efficient, and this will contribute to having a lower cost ratio.

We assume that next year will be the year when Worldbox will function entirely within the group, and it will contribute to the results of the group. What I said when we talk about financing, working capital by extending the payment terms.

That would be more or less it from my side. Now the CEO would like to take over.

Thank you very much, Łukasz. I'd like to go back to some of the slides and talk a little bit more extensively about what's happening in the organization.

We're doing a large number of things simultaneously in terms of this expansion. We're reforming Modivo, we have more and more of our own products through our own stores being sold, and we're making these investments in the brick-and-mortar stores.

We have new product categories like licensed apparel. We've been able to achieve a large number of good licenses where we can produce clothing amongst other things, and we're taking over Worldbox, I think, tomorrow.

A lot of things are happening in our organization. Our model is more and more mature, enabling us to achieve synergies across all of the sales channels.

This is what we're talking about in our organization. We're talking about being a group of synergy in the product, in logistics, in expansion, as well as through the management of our own brands.

Perhaps I would ask you to display a specific slide. I see it's there.

It's up. I wanted to reflect on a few parameters.

Well, Łukasz mentioned that we want to show things more specifically and how those costs flesh out and how CCC EU has its results. This is the company that's responsible for importing all of the products for all of the channels.

These estimates of product provisions, licensing fees, because the Omnichannel line of business is working well. In Q4 and across the full year, we were under pressure, a lot of pressure by the weather.

Here we're not talking about the competition. We don't really feel the competition here, because in terms of the brick-and-mortar stores, we have such a broad range of products, but we're talking about pressure from the weather and the inventory.

We invested quite a bit in giving discounts. Historically, in Q4, we had a 25% discount, and that's not something we had, only with the exception of COVID when we had a lot of inventory to sell off.

We have a high first margin, but we wanted to offload a lot of products. In January, we have nice sales, but we're actually selling the products today at pretty deep discounts.

We're making investments in discounts, and so I think we are generating a pretty good margin. The outcome of that, however, is that we've sold twice as much of winter products in January, but this hasn't improved our margin, because the margin in the winter period is much lower than on spring goods.

Those other goods and four-year goods have stopped to sell. If we look at the winter stock, we look very good this year in winter, because we're going to have roughly 4 million units of products, less than 4 million units of goods.

That means that we're going to have much less and we're going to have newer, younger products on better conditions. What does it mean to talk about 4 million units of products?

This is 1 million for e-commerce HalfPrice and 3 million in the stores of CCC. In our warehouse, we don't have anything, but we have 3 million pairs of shoes.

These are the type of numbers we have. That's 2,000 pairs per store, and so 3,000 pairs.

That's 25% of the merchandising for a full store. The bigger the scale of the business, that means we're always going to have some products here.

We have our own sorting place for repackaging products. We're giving discounts where necessary.

Part of it goes to HalfPrice, some of it goes back to the stores, and we've done very well with that. If we look at the inventory structure or mix, I would add that the mix is much better than could be illustrated by this graph, where we've dropped it by one-quarter.

A lot of effort went into that in order to show you that we have a smaller inventory. Unfortunately, we weren't able to do that, but we would like to say that in this inventory, roughly 100 million is products that we've picked up from Modivo earlier.

We have 40% of the spring and summer collection already delivered. Last year, we were only at 20%.

That's a big success that we're going to have these products at the beginning of the season. Then we have Worldbox, where CCC is buying products for Worldbox for the spring and summer.

That HalfPrice previously wasn't producing this level of product, and there's going to be more and more of that. We have to send products more quickly, most of this is actually on various ships in route.

We're looking at inventory per square meter, and so we had purchases down by 30% across the board, and so we did that on purpose. I think that we're going to get to rotation parameters where we're going to be utilizing trade credit from our suppliers, we're going to have very good turnover figures, and then extended terms of payment.

This is a model that we'd like to embrace in the near future, and the entire organization is focused on achieving these targets. Let me say a little bit about e-commerce.

It's very tough, hard to earn money in e-commerce if you're utilizing partnership brands, because the first margin is already pretty poor, it's 50% plus. If we add to that that all the players in the market are discounting prices in order to limit or reduce their inventory, it's around 40%, there's a large number of returns, and logistics are more and more expensive, and then the investments in performance marketing.

We want to turn that around. As we said, well, we want to have more of our own products, which is up by half.

The investments in discounts where the market started to invest in discounts, this was not something that could be reversed. We had the Black Friday, that's when people started to offer discounts.

November was pretty warm, this is not something that's reversible, and the margins are so low in e-commerce. Everybody's thinking about selling the products, because it would be a bigger or smaller catastrophe for an organization if you retain stock, unsold stock.

The model is as follows: ultimately, 50% should be our own products and licensed products, and this should grow the recognition of our brands, our stores. We'll begin the next season in terms of advertising our brands.

What do we have now? We have more channels, more synergies, more lines of business.

We're complete. We still have footwear and apparel.

We have in CCC and Modivo and HalfPrice and Worldbox to fill out that picture with apparel, and that's the direction we're moving in. Our investments in discounts in this quarter, in Q4, was roughly 25%.

Historically, this is a large number. The effect is that we're going to begin the upcoming seasons with pretty young inventory, relatively new inventory, and so that's something we might actually correct upwards if we have more products there.

Inventories. We can say that brick-and-mortar stores are the pillar of our profitability.

I wanted to tell you that we're not developing e-commerce to a big extent because we have to grapple with profitability, but we are investing strongly in new stores, and here, on purpose, we're showing you the profitability in Q4. Now this is year-to-date, for 12 months, this is the annual EBITDA year-to-date.

These are decent EBITDA watermarks. HalfPrice, we're counting on even better EBITDA, because several important things are happening there.

One is achieving the scale, and then we'll have the logistics warehouse that will be commissioned in the middle of the year. We're doing very good with logistics, but it's still somewhat provisional, and the scale of the business is basically forcing us to do some investments, and we're going to have a warehouse dedicated to support HalfPrice's business dynamics.

Then we have the costs of the off-price model, and so you have to accept goods, you have to change price tags, put on new price tags. The next thing is, well, the own production of licensed goods.

This is something that's changing the value in sales, and ultimately, we want to drive up the margins on the sales of our own products, and of course, this is something that would be labeled with our labels, with the price tags, and so we might be able to save 5%, 6% on the logistics costs. We continue to invest in stores.

What I can tell you with full awareness of the importance of this, we have very good conditions for expansion. We have good conditions, and so we have our rents defined as a percentage of revenue, we have turnkey brick-and-mortar stores, we're expanding into multiple countries.

This is not something that's going to be stopped. We have 290,000 square meters of new selling area.

Can CapEx be a problem? It shouldn't be a problem, because we're getting very good conditions for investments in most of the places where we're present.

Our investments in stores are there, but the challenge is product, and we want to extend the payment terms. Everybody wants to work with us, and so this is something that's looking better and better.

We'll probably surprise you in terms of the rotation and the payment terms, what's going to happen in the near future. Of course, if we look at the results, we can say that they're soft.

We had a soft quarter, bad quarter, and we can confirm with full confidence that we had bad results, and of course, we were disappointed with the level of traffic, but our business model is more and more mature, and we've achieved major magnitude. If we look at HalfPrice, we can say that it's been very successful, highly profitable business with a good level of EBITDA performance.

This is a very important slide. Even though we had lower traffic, we've been able to achieve higher conversion.

We have good products, good merchandise. These stores have to mature somewhat.

We're opening quite a few stores, sometimes one city, then it's neighboring city. We have basically this like-for-like, and we're happy with the like-for-like, even though it's negative, because we've opened several stores in Warsaw.

We're going to generate money through the scale of business magnitude and having better margins on our products as the result of purchasing conditions and producing our own products and then the logistics costs. Then here, I'm trying to make you aware that the footwear business is not something that you can compare really with the apparel industry.

I understand that the market leaders like LPP and others are reporting high EBITDA, and this is clearly an enticement for us to be there, but when we think about footwear, which still represents 62% of our sales mix, is quite dependent on certain factors. Shoes are like car tires.

If you have good weather or suitable weather, then the sales will just be done by themselves, because people have to change these products. For the full year, we can tell you that in the spring, we didn't really have good weather, for a month in the summer period, and the fall, early winter disappointed us.

The retail business is okay. There's no reason to be concerned.

What's disappointing is the level of sales in e-commerce. I was highly disenchanted, and so the costs, the level of returns, all this is somewhat terrifying, and we want to control this very strongly to move in the direction of having our own brands.

If we look at next year, we're looking at that very optimistically, and having in mind certain events which should insulate our business. The first thing is higher amount of selling area.

As we presented this to you, well, these stores couldn't really have generated much return, because they were opened up at the end of December, and so we have certain months when stores aren't earning, but so they're drawing us down as opposed to generating. There are no unprofitable stores if we talk about the HalfPrice line of business and CCC.

This is a very mature business at present, and we're doing a lot to make sure that it becomes even more profitable. We're working on the product, we're working on our licenses.

The work we're doing in marketing will give us some pretty substantial benefits. Then expansion of selling area by some 25% this year, and so we're hoping that this will support us.

We'll have this greater amount of selling area from the beginning of the quarter, but the dissipation of costs from openings will be down, because the relative share it's not going to be 35% like in the past, but like 25%. We have a strong resolution in the group that we've invested in discounts of 21%.

That's still a lot. We've always been under the pressure of the weather and also the level of inventories.

I hope that now the level of inventory is small enough, and weather, well, things should be better. We should be more aligned to the weather.

The decreased inventory by 25% per square meter, we won't be forced to sell at a discount. We can say that the higher scale of HalfPrice is participating, and we're able to move a portion of the old collections.

CCC will no longer be under the pressure of, let's say, discounting policy, and so we want to relinquish 7% less of the discounts. We've done some calculations.

We have good starting prices for the new season, several percentage points, and that's because we've been able to reduce freight costs, we've gotten good negotiation results there, and then the hedged exchange rate for the US dollar. This, taken together, should assume that the results for CCC and HalfPrice will be much better.

If we look at Modivo Club, we can say that the reception has been very good. We have more than 1 million customers, the bulk in Poland, within the course of half a year.

Now we want to expand that and roll it out across all of our markets, and we want to have 3 million Gold customers. Of course, we're going to have a lower cost of performance marketing.

We're going to invest less in performance marketing, we're going to invest more in standard marketing, which is more inexpensive. We don't have loyalization amongst customers utilizing performance marketing.

It's only a matter of price there. Then we have costs, making sure that we watch what's going to happen with our costs in 2026.

I already mentioned about the costs of logistics in HalfPrice, Worldbox will make a positive contribution to the group, and so we have a lot of our own products at high margins using licenses. The products are already in route on the seas.

In the spring, we should have maybe half of our own products, and so perhaps we'll even be able to move up to 80% by the end of the year, and that should give us a higher margin across the business, and we'll have a higher margin, more attractive margin in all of our brick-and-mortar stores. I believe in Worldbox, because there's no reason whatsoever for this not to be the case.

This is a model that's selling similar to CCC, based on licenses, and so it's selling like CCC, but the thing is that has accessories and apparel, and so this concept is not for smaller towns and communities, but for the larger cities. December was proof positive.

We saw that the trading results were much better than say in CCC. Of course, there was a high level of discounts, but that's the price level we're going to have our own products, and this is going to be similar to a case in which it had been discounted, I'm very convinced of this concept.

Some of you didn't believe in our HalfPrice approach. I feel HalfPrice, I understand what's happening, I understand also what's happening with Worldbox, and we're going to move forward strongly in that area.

In terms of extending the payment terms, it's clear that we continue to work on that with quite a bit of success. I've been surprised myself to some extent.

Our suppliers want to raise the scale of the business, they're joining together with us, we're very close to achieving what we want to achieve: 15 partners, and all of this is going in line with our thinking, it's going very well here. We can say in brief that we've done a lot in terms of the product, in terms of the margins, and expansion, and now we're waiting for this year to be better for us.

We won't talk about the financial results, because then you're going to say what sort of like-for-like we're going to have. If I know the like-for-like figure, if it's going to be positive, it's going to be very easy for us to calculate the level of the business in the upcoming year.

This past year, they were soft. If we compare those results to 2024, where like-for-like was in the teens, now we're -2.8% or 5% because now we're trying to catch up.

We can say that the current LFL performance is weak or soft. I'm talking only about footwear, not apparel, because in apparel, we have a satisfactory level of sales.

I would thank you very much for listening to me. I've said what I wanted to tell you, what I wanted to convey to you.

Now we can field a few questions. If you'd like to pose some questions, please raise your hand, turn on your microphone, and then pose your questions as you would like.

Maciej Wojtyła... Thank you very much for the presentation.

I would like to pose a question. My name's Maciej Wojtyła, and I'm a representative of Santander TFI.

Can I ask you to explain or expound upon slide eight where you talk about the gross margin year-on-year and what's the disproportion between CCC and in total with Omnichannel? If

this is including the licenses and the statement is made that some of the costs are costs of future periods, could you give a little more detailed explanation why do we have a deterioration of more than 9 percentage points year-on-year? Let me add, I forgot to explain.

In our negotiations in the recent period, well, you've not raised that, but it's been a great success to be able to achieve licenses for other brands for the production of apparel. This was not something that was available, somebody had to relinquish a license for the region, and so now we have licensing fees there.

We are at a specific stage that we're paying for the license upfront, even if we don't have an apparel product. Those products are being produced, and we are already paying the license fees.

This should be around $10 million. These are fees that we're going to be able to recover in future periods, because I have three years in order to basically even out those fees.

If I produce more than the limits suggest, then I can calculate that or recover that. We have all the licensing fees, but this is a result of the apparel as opposed to the footwear, and so it's $10 million, more or less, on a flat basis.

That's something we're going to be able to, as I said, recover in subsequent years, and that's also in these results. If I speak in greater detail to your question, the major elements of that bridge from the margin for CCC and CCC Omnichannel, well, it's the cost of licenses.

We've mentioned it's more or less 2% of that figure. We have a write-down on inventories of 1.3%, and wholesale, and the profitability let's say downswing is around 2 percentage points, and the cost of transport to HalfPrice, because when we move products from CCC to HalfPrice, HalfPrice purchases those products at a price point which is based on the market conditions.

For stock products being purchased, and there's a discount given which is debited to the line of business of CCC, it's 1.3%. Those are the major indicators which sum up to roughly, well, more than 7%, and the other things are constituent elements.

We talk about Worldbox and HalfPrice and licensing fees, CCC is importing, paying the licensing fees, but the products haven't arrived yet, we can't invoice those products. That's part of what's happened.

This is something that will come back in the upcoming quarters. We're producing a large amount within the limits that we have that we're going to be able to make that recovery in the course of the first year.

We don't have any more questions, I think. Sylwia Jaśkiewicz, you wanted to ask a question.

Sylwia?

Thank you very much. I'm from the brokerage house of BOŚ.

I have a question. I want to make sure that I understand you well, and I don't want to make a mistake.

In Q4, the results year-on-year, well, we have a deterioration in Modivo, and so it's a negative impact of 140 million; 65 million was a one-off. I don't really entirely understand what's happening with these licenses.

Does that mean that the margin will deteriorate by 100 million?

Is that what you're saying? Yes.

It's hard to talk about deterioration of margins, but if we sum that up or draw a total from that perspective that you've taken, I think that's something you could say. It's really hard to say that's deterioration of the margin.

These are costs of the licenses and costs of the business in terms of the other lines of business. If we look at the 1.9%, 1.3%, that's roughly 90-odd million.

Then there was some information about Shopbox and Worldbox abroad. How much has that taken off the result?

It's roughly 10 million. That's in the CCC result in terms of the lower margin of CCC.

See? The 65 million write-off on products that aren't full commercial value and the exchange rates, can you split that 65 million down into its constituent parts?

FX rates is 22 million. I'm looking at my notes.

Products 25 million, 22 million for FX rates, and the impact will be slightly smaller because we'll see what's going to happen with the last few days of the quarter, because the changes here are dynamic. Products of not full commercial value is 25 million, then 19 million, and then 22 million for the FX rates.

Thank you very much. Then I have another question about banks' reactions.

Is there anything we should expect here in terms of covenants or the reverse marketing? Covenants are under control.

We are in constant communication with the banks. We don't anticipate any negative reactions in this area.

Of course, we have stable financing secured, and so we see amongst the banks, there's a lot of interest in place in terms of establishing cooperation with us, and so we're looking at this quite calmly.

In terms of reverse factoring, what's the value of reverse factoring at this time? We have slightly less than 2 billion in limits.

These limits are not fully utilized, and in fact, it's around 1.3 billion is being utilized. Roughly 65%, you could say.

We're moving more and more in the direction of using trade finance to finance our purchases. I apologize, but maybe I've missed something.

In terms of Modivo, we hear in the marketplace that November was very soft, December was mediocre, but across the industry, we see that January is better in terms of e-commerce. What's happening with you?

If somebody has a large amount of inventory for winter, then you're going very well, because you're selling that inventory, but at lower margins.

Perhaps there is revenue, but we want to have less products being sold at discounts, and the most important thing is for product to arrive on a timely basis. This is something that we've always had a problem with in the past.

Now we have 40% of the spring and summer collection already received from Modivo, so that's very good as opposed to 20%. Once the weather shows up, then we're going to be able to have better sales at first prices.

This is not a major success yet in terms of the sales in the winter period. In terms of the banks, I wanted to mention that our major businesses where we're investing, brick-and-mortar stores, well, things are going very well there.

E-commerce is always a matter of the inventory. If you have a lot of inventory, then you're trying to catch up with sales.

If inventories are at standard level and they're going to be cut down by some 30% for the future period, we won't have that pressure on us to have lower prices or offer margins at a lower level. We want to sell as much of our own products as possible, and we don't want to be subject to any inventory-based pressure.

If we're going to be able to achieve that, we're going to be able to improve our margins substantially, move them up. When could this happen?

I understand that the inventory... We're prepared for spring.

We've purchased 30% less, and we're selling down the old inventory, we're already for that.

Thank you very much. Maybe the last question, I see one colleague is raising his hand.

My name is Łukasz Wachełko. I have a single question.

To clarify things, do I understand you correctly, Mr. Chairman, that since we have to tell you what the like-for-like should be to make your projections, that you don't have the forecast for next year, for 2026?

Well, Łukasz, our ambition is to achieve the 20% profitability. We're in the Tour de France.

We have 21 stages, 21 quarters. We're going to achieve that profitability target, I'm convinced of that.

There's several reasons. We have a very good product.

I don't know if you've been in our stores recently, but the product has changed substantially. We have very nice margins, first price margin.

Maybe I won't talk about that, because then you'll try to zero in on that in terms of what the EBITDA should be. If I tell you about the first price margin we're starting with, because the exchange rate for US dollars is improving, and so we'll talk about how we're going to achieve that 20% EBITDA margin.

This is something I'm convinced we're going to achieve whether it's 6, 12, or 18 months. Of course, we can always have a softer stage.

We've not lost any pace or anything with respect to our competitions. We're doing what we have to do.

We're opening stores. Let me mention once again consolidation of Worldbox, which will take place tomorrow.

We're opening up the new Worldbox network, and we have the maturation of HalfPrice, and then Modivo, and then CCC, which is the most profitable footwear store brand, perhaps not only in Europe, but abroad, but farther than that. We're adding 300,000 square meters on very good, solid conditions, turnkey buildings.

There's a lot of effort there. Suppliers from China want to cooperate with us.

We understand what the situation is like in the United States and other continents. Today, we're the largest importer of footwear in the world.

Nobody's producing that level of footwear. Even our European competition is buying shoes on-site from brands.

We have a very high first margin. Who else is achieving that?

I won't say that's across the world, but the model itself is very mature if we talk about CCC and HalfPrice. Of course, there's always some turbulence, and perhaps not everything works immediately, but we have that strong Modivo Club, and so we have some 22 million members, 3 million who've paid for their membership, and this is a cash-back point.

We're going to give the money back, we're going to give them discounts, rebates. These are great ideas that will prove themselves.

Market traffic and competition in e-commerce, that are the problems. We're purchasing the same shoes.

Basically, everybody's buying the same brands, the same shoes, and everybody's trying to sell them, and everybody's trying to lower the level of inventories, and so we're not pumping that. We should have e-commerce as a group.

We're not going to retract from e-commerce, but we do estimate how it should be done in order to be profitable, because I also want to achieve a very high profitability target. All of these things are in place.

Let me ask you directly, is your goal for 2026, is it being upheld, or should we forget about that, and we should think about 2030? Which target are you talking about, Łukasz?

I would say, at one of our conferences, we talked about our ambitions for next year. I think it was November, when you said 20% to 22% EBITDA.

Our ambitions are even higher, but there's so many times that we haven't delivered. We've decided to basically speak less and deliver more.

That's what we've been advised. Sometimes I have the impression, just speak directly, the atmosphere around the company is a result perhaps that we've talked too much about our ambitions and our expectations, and now we want to alter our approach.

We continue to have a high level of ambition, but we want to focus on our work. Inside the group, we have a lot of ambitions, and we're all ready and poised for this year to be a landmark year across the board.

We're ready for that to happen. I can't promise you that Worldbox will deliver a 20% EBITDA target in the first year, but we're doing everything we can to make sure that this is going to be as most as positive as it can be.

Going past the semantics, in 2026, your official forecast as CCC does not exist? It's only your internal ambition, which is always high.

In terms of something that we can treat as guidance or as a forecast, you don't have anything? No, we don't have it.

It won't be in place at this point in time. We're not publishing an official forecast.

Thank you very much. This is something I wanted to clarify.

That's it from my side. Thank you very much for this morning meeting.

Until next time.