Good afternoon. We'd like to welcome you to the results of Modivo for Q1 2026.

We're starting with a little bit of a delay because of the demonstrations that made it more difficult for our guests to arrive at today's meeting on the stock exchange floor in the Warsaw Stock Exchange. We're now all ready and poised to kick off.

If we talk about the results, let's begin by discussing the EBITDA result for Q1 of 2026. The metric we're showing you is the adjusted EBITDA result, things that aren't comparable, to make sure that we're talking about the underlying actual result, having in mind the core business in comparable conditions.

If we focus on this metric, as you can see, in Q1 the EBITDA generated by the group was 6% higher than the EBITDA result generated in the corresponding period of the previous quarter-- year, in first quarter. Of course, our ambitions were greater, our appetite was greater, but in relatively difficult conditions with unstable weather, unstable geopolitical situation which appeared in this quarter, we believe that this result is pretty decent.

This means that our EBITDA margin on an adjusted basis is very comparable on a year-on-year basis. We're talking about adjusted EBITDA.

Let's think about this a little more in depth to see how these results were determined, how they were calculated. If we think about last year's performance, we start with the reported EBITDA, and then we extracted FX losses and gains.

Last year they had a very, very major impact, and this year the result was instead of FX gains or FX losses, and so these impacts were the opposite, and so the systemic impact is in excess of 70 million year-on-year. Another factor, a second factor which is not comparable on a year-on-year basis, this is Worldbox, Worldbox.

In the first quarter of this year, it was consolidated in full for the first time in the results of the group. In Worldbox, it's red, it's -49 million.

This is a major negative impact. What we need to say that Q1 was a result of the profound integration operationally, logistically with the group structures.

This infrastructure, this integration process took time. For objective reasons, this is not something that we could have prepared earlier.

February and March were a period in which the sales potential wasn't fully tapped into. We're a little bit quite late in terms of replacing the collections.

In April, things start to look pretty much better. The other thing is margin, replacing the previous collection with the new collection.

During Q1, the gross margin achieved by Worldbox moved from 2% in the first weeks of the quarter up to 54%. I could say that we were reaching pretty decent levels.

Of course, our intentions and our ambitions are much greater. This is not a result that's satisfactory.

This inclines us to work intensively to ensure that as quickly as possible we're going to be able to achieve the profitability in this concept, Worldbox concept. Then in a controlled fashion, we're going to want to make sure that it's going to contribute to the profitability profile of the overall group.

We're going to ramp up this concept. Of course, the CEO will speak to this more closely a little bit later during the presentation.

If we look at the group's revenue in Q1 of 2026, it was roughly 2.4 billion Polish zloty. The gross or the sales growth rate was 4%.

The various brands had differing, varying performance. CCC was flat, slightly negative year-on-year.

This has a high level of saturation, it's well-established on the market. Relatively limited capabilities to continue growing the sales there.

HalfPrice continues to be the motor, the engine, it's 35%. It's growing not only because of new openings, but it's also growing because of very clear like-for-like sales growth.

That's something that pleases us, importends well for the future. Then we have Modivo.com.

Here we can see that sales year-on-year is down by 8%, but this is an anticipated effect. As we had intended and announced, we decided not to pump sales utilizing performance marketing, and so the impact was 50 million.

We reduced the purport to revenue in by 6 percentage points to 12%. We believe this is pretty good level even though sales were lower, having in mind sales efficiency in terms of performance marketing.

Thanks to the other efforts we took to grow volumes in terms of our licensed brands, the profitability of this business has grown clearly. I'll speak to that in greater detail in just a moment.

If we look at like-for-like, we can see that like-for-like is positive at 1% dynamic expansion, having in mind the dynamically evolving conditions with volatile weather. This is a pretty decent result, which shows that with such major expansion, there's a risk of pretty big cannibalization, so that has been limited or curtailed.

The results in Q1 means that the the gross margin is 51.8%, it's the highest level of gross margin we've achieved as as a group in recent years. It's higher by 1.3 percentage points.

Now if we look at like-for-like sales performance, I start talking about that in HalfPrice and CCC. You can see that it's in HalfPrice it's clearly in the black, at 6%.

On the screen it's green, but so it's moving up. We're showing you the ability to generate like-for-like driven by traffic varied greatly.

The most successful month was March. In this difficult April, difficult because of weather, we were able to have a minimum level on the positive side, 0.1.

We're talking about dynamic expansion. If we were to decompose these like-for-like figures, we had negative traffic, we're not worried by that, because we're touting that expansion.

What's important is the conversion. Conversion is growing, we're adding additional percentage points.

Conversion in Q1 was 21%, so that's a very decent result. If we're thinking about the retail sales sector, this shows that the work we're doing on the products, improving the products, making sure that our product range in 17 areas is producing results.

In CCC in turn, we can say that like-for-like performance is negative at 3%, -3%, driven primarily by traffic. It was lower in April above all, because of the difficult weather conditions, because this affects sellers of footwear to a much greater extent than, let's say, HalfPrice.

Even though traffic was down, we had positive conversion, which is better year-on-year. This means the licensed products in our offering are being well-received by the customers.

In terms of CCC, we need to study is that this is a highly saturated concept, it's well-received, it's well-established, and so expansion is going to be much more selective in nature and probably more abroad than in Poland in in terms of our key markets where we're present in, let's say, Europe, Central and Eastern Europe. The next subject is gross margin across the group.

We can say that it's at the highest level within the last 10 years. It's above 51%, nearly 52%, it's up by 1.3 percentage points across the group.

We've been able to improve the gross margin in every one of our businesses. We have the gross margin in CCC above 60% watermark.

In HalfPrice, it's up by 0.5 percentage point, and in Modivo.com we were able to improve the gross margin year-on-year by 0.1 percentage points. It's clearly almost at 46%, and so these are good results for an e-commerce business.

Starting with first quarter of this year, we're breaking down licensing fees per brands. If we were to utilize the previous methodology, then the increase in margin in HalfPrice and Modivo would have been higher, more or less by 1 percentage point they would have been higher.

This confirms that the results are good, robust. In all of these brands, we can say that we've achieved this result by having a greater percentage of licensed brands in all three of these businesses.

CCC and HalfPrice are growing by some 7 percentage points, and we can say in Modivo.com this is quite important factor, we're right at 20%, it's up by 8 percentage points year-on-year. This is a good concept that's proven itself.

Let me dwell a little bit longer on Modivo.com. I want to tell you where we started three years ago.

In 2023, our margin was 38%, 8 percentage points below the margin watermark we've received or generated in Q1. We're focusing on our own brands, licensed brands.

This is something that is proving itself, delisting other people's, other entities' brands. We've delisted some 700 brands, other brands, and we're focusing on the 100 most strategic brands which generate the greatest potential for sales on higher margins, where we can generate good conditions.

We have our own brands, our licensed brands, as I said, in Q1 we're at 20% in the mix, and so it continues to grow, and it will continue to be increased until we achieve the 50% watermark. This was possible thanks to efforts that we took to sell off the ends of collections for other or third-party brands.

Now we can say that that inventory has been optimized, has been reduced to a great extent, and it's down by 12% year-on-year. This effect should no longer be visible.

What's important are costs. On one hand, this picture with respect to costs from your point of view, this might not seem to be entirely clear.

We can see that costs have grown, but growing slower than the sales area, the selling area. What we have available in the group, this is something that's quite good.

Our fixed expenses are rigorously treated, they're not growing. We can see that general admin in some areas like in CCC have in fact fallen.

The new selling area has not yet fully shown its total potential. HalfPrice, for example, is a brand, once a store is open, this is where we have the largest number of openings, we need some time for the stores to mature.

That's why the cost-to-income ratio, that's why we see that there's a slightly higher cost impact. This is a transitory or transitional effect.

We should be around 30 37% once that's fully exploded. This cost ratio is a temporary impact, because in all of our other lines of cost accounting, where we have fixed expense, we can say that we haven't seen those type of increases.

We only have costs coming from new stores. If you look at Modivo.com, I talked about reducing costs for performance marketing.

We're savings, making savings here, and that's 50 million. We're reducing the ratio of purport performance media to revenue, and we're on pretty good levels for e-com business.

I'd like to sum up my portion of the presentation by talking about the profitability, the EBITDA profitability in CCC. It's quite stable and comparable year-on-year.

We're looking at adjusted EBITDA here. If we look at HalfPrice, because the magnitude of operations is growing, and we're continuing to work on our profitability, we can see that EBITDA is growing quite strongly by some 30-odd percent.

If you compare that and look at Modivo, we see a positive impact as EBITDA has grown by some 9%. We're coming back to levels that are quite good.

For example, e-com, that's an increase of 9%. This is just a a stop along the way for us to achieve 20% and above.

That would be more or less it with respect to what I wanted to say. Our CEO will tell us what's going on with inventories.

Thank you very much, Łukasz. Good afternoon, ladies and gentlemen.

We agreed with Łukasz that he wouldn't say too much about business, that he would only talk about the numbers, but he pretty much said everything. Let me talk about inventories, because inventories are my area of responsibility of management within the organization.

As you can see, the inventory is falling, but it's not entirely borne out by the figures when we took over Worldbox. We had Shopex, and so that's why the inventories grew a little bit.

Let's say inventories are down by 2%. We've opened 40% more stores, and so we can see how much the inventory has fallen per square meter of open stores.

In each one of our brands, things look pretty good, but in HalfPrice, this is a little bit of a misleading mythology. I would tell you on a different slide how far we've gone in terms of special collections and the licenses which are going to be offered in HalfPrice stores.

This period is extending by some 60-odd days because of transportation time, and so it's roughly 90 days. The purchasing process is longer, we want to get the goods more quickly, and so we're the first ones doing it in Europe.

There's a difference in the margin of 20% in terms of what we were buying previously and the margin we're going to be able to extract now. Thinking about inventory, I'm not yet happy with this level of inventory.

This is something we're focusing on. It deserves our attention, we want to reduce that by some 20%.

We need need some time to open new stores, and we want to be financed to a large extent by our suppliers to make sure that this would be in line with the, let's say, trade credit that we're getting. Let's, starting with Worldbox, here we can see that it's not earning money.

As I promised you, this is a concept that will earn money, and it's going to be a similar concept to what we have in CCC. If we look at the result of integration, the merchandise arrived late.

When it started to show up to the stores, then we started to have margins. You have the average margin achieved on old merchandise and new merchandise, having in mind the company that was taken over.

Our licensed percentage is growing, and so the margin in May is 57%, and we'll quickly achieve the promised margin in excess of 60%. You see stores and somebody say it's the World of Cotton.

This is not the product yet that we're going to have in 1 or 2 months from today, or in Q3 and Q4, what we're going to have in the stores, and we're preparing for that. This is taking longer than perhaps we had originally thought, but we're gradually achieving what we want.

The traffic is missing. We can work on that traffic.

When we change the collection, we can add the Modivo Club and some of the other things that we're doing within the group. We're happy with conversion, because we're selling 50 60% more through conversion, because you have footwear, accessories, and things like that, apparel.

We're happy with the margin, we're happy with the conversion, we're not happy with traffic. Some questions have been posed about the stores.

You're not seeing this type of traffic. You're thinking about in Warsaw, this is the top the bottom 10%.

Maybe this is not a concept for the big cities. If we look at the revenue in the smaller towns and communities, we're quite happy with that.

We're starting starting to tweak our tactics. Let's take a look at what's happening with the margin.

Let me put this differently. This is the margin that was promised.

It's in the most recent presentation. We talked about how we were going to achieve the margin on Worldbox.

We now have 50%, which is more or less in line with what we promised. In the second half of the year, we want to achieve a 60% margin, and at the end of the day, our target is to achieve a 62% watermark.

This is a concept addressed to the same customer, and Worldbox stores are frequently they share a wall with CCC. This is not a normal margin where you have a multi-brand concept, the margin, the maximum margin that you can usually achieve is 40%.

We're better by some 20 percentage points, and this is where I see the success of this concept, this network, that we have a high-margin product. Here's our road map.

In Q3, we should be happy, in Q4, we should be very happy with our with our performance. We need to walk through, of course, this intermediate phase.

Let me tell you about the product portfolio we have. What's the brand mix?

We have partnership brands. Everybody has those brands, and everybody's giving discounts.

It's not possible to have more than a 40%, so that's 20% of our sales on these brands. Then we have three own brands: Brandi, Marc O'Polo, Soft, and the other ones are licensed brands.

This is a mix of casual and sporting clothes, and so this fulfills all of our expectations. There's one other brand, and one brand called me recently, it's a good brand, they called me recently, but I'm not going to share the name of that brand.

We're pretty happy with this mix. We have licenses to produce everything: footwear, accessories, apparel.

If we want to produce, for example, bed sheets, we can also do that. Let's move on.

What's important here? When business is not running as well as we want, we wanted we decided to tweak things, and we talked about 150 stores per annum.

We're going to take that down to about 50 per year. Our expansion will go at a smaller pace, and then we're going to do international expansion of Worldbox if that matures.

Once that matures, then we can revisit the expansion plan. Today, we're going to we're tweaking that, we're going to slow that down a bit.

We had 96 KS stores, we have small stores, there's things that we're closing, and we're going to have around 290 Worldbox stores. I think I've already addressed what's on this slide.

What's very important, you might not see in these results the bulk of these contracts have clauses with an OCR cap. We would not pay more than 12% or 14% of our top line.

Once we see the annual top line, we'll see how much money we're going to get back from the rents. If we're going to have 60% margin, and then 14% we're going to pay, we're going to be able to adjust staff costs, because we have most of our staff work on an hourly base basis.

There's no it wouldn't be possible for this not to be profitable once we have the full margin achieved. We're selecting the sites.

The best cities for us are 20, 30, 40,000 inhabitant size cities. For now, we've decided to stop.

It's obvious that we didn't want to go further with the larger cities. Now, if we can look at Off-Price.

Off-Price is now celebrating its 5-year anniversary. I don't know if you remember when I talked, when I started talking about Off-Price, we had a lot of stock, we had a crisis, we had contacts with brands.

Everybody had problems with goods, merchandise. It was a good time for us to kick those operations off.

I didn't think this up myself. I had just seen what was happening on the American market.

In the United States, it's 18% of off-price, something that's growing very nicely. If we look at some of those companies that run off-price business, they've been successful across the board.

I can't imagine, that's what I was thinking then, that it's not possible for us not to achieve a success in Europe as well. We can say that there's nobody else in Europe with that type of off-price.

Poland represents 2%, the UK is 6%, and the US has 18%. I was in the States recently looking at those models.

There are different off-price models there, more than 10 different off-price models at different price points. There are experts in sports, also home goods, home decor for off-price.

There was a big snow storm, blizzard, in New York City, and I went to Miami instead, and I was looking at off-price stores on the map, and it turned out that every 200, 500 meters in the United States I was able to find an off-price store. There are quite a few of them.

This map shows that in the near in a very short period we became the leader of off-price in Central and Eastern Europe. We were quickly the leader, we became the leader quickly, in year two, we don't have competition.

I have to teach people what off-price is, the landlords in other markets. I don't I do it less and less, but originally I had to teach people what off-price is.

Maybe if you can give me the clicker that way I can click this slides more quickly. The logistics center, as we told you, we're building a new logistics center.

In HalfPrice, we were using a temporary solution for quite a while. It was a little bit like a manual approach.

Now we're building a modern center in Polkowice. We're going to be able to support 500 off-price stores stores, and this will be 40% less expensive.

Within a period of 4 to 5 years, having the scale that we have, we'll be able to have that payback, we'll be able to spend out goods more quickly, less expensively, and so we're very pleased. Here, I'm showing you we're going to have about 2,000 baskets like that, and this is very quick, very efficient, very economical.

We have stacked shelves. Most of our processes are automated.

What we have, phase 1, phase 2, at the beginning of next year, we should kick off the construction of phase 2. Then we have to move some of the, the old raze that to the ground and then build the new building on the right side there.

If we look at the improvement in the gross margin, we continue to improve our gross margin by purchasing more, purchasing better, and above all, thanks to these licenses. The licensing impact, I'm going to try to illustrate that, it's not so big yet, but 52% margin in Off-Price, that's an unheard-of margin.

This has been cleaned of the licensing costs. The average margin in the Off-Price is 35 38%, if you look at American companies and their figures.

We're achieving something that's quite extraordinary in this industry. Here we're showing you where we started.

The black is what we the purchasing we did on the market. We were taking advantage of the crisis on the market, what happened with COVID.

We're buying things from the market. The margin was less attractive.

Today, the margin is growing. SMUs have a higher and higher share of mix, and so this is for and our licenses as well.

SMUs are done specifically for our models. We want to have 40% licenses, 40% SMUs, and only 50% would be purchases from the marketplace.

There's a big cost attached to market purchase. You have to buy it, you have to change the tags, you have to give labels for each country.

The SMU, these are produced directly in Asia on FOB, they're already labeled. There's a big cost in Off-Price in order to exchange the tags.

We believe that we're going to have much lower cost to prepare goods, it will be properly packaged, it'll go through the warehouse on a cross-docked basis, and then it'll be in the stores. This should improve the profitability.

Now, the license itself, what gives, these licenses give us a higher margin, a substantially higher margin. These are very substantial margins in an off-price approach.

Let me remind you, we can produce apparel and many other things like perfumes, beauty, home, and we can do that with the licenses we have. We didn't have that initially.

Today, we're at 2026, we might be 20% licenses, 40% is SMUs. That means we're not buying, let's say, men's yellow T-shirts, we're buying 70% in black, which are being sold, which sell well.

We're saying that the products are more attractive, better fit, there's a better fit or better match with what customers really want to buy. Here I wanted to tell you this year 65% of the expansion in our selling area will be an Off-Price.

That means we're expanding our position because we have 3,000 square meters in every Off-Price store. It's something you can do quite well, quite easily.

We want to add 100 new stores as a minimum per year. Of course, we're negotiating.

We have a large number of offers, very good trade terms, with fit-out with OCR cap rates, we're pleased with the work that has been done up until now, but we're picky in terms of what we choose. There are several determinants.

Off-Price is resilient, also there's a broad offering for fashion. There's a large number of product categories.

We have 17 categories we utilize in Off-Price. If we have better sales in footwear, we'd add more footwear.

If we're selling more in home category, we have toys, we have animal products, products for animals, pets, we have books, we have gifts, we have Christmas decorations. In HalfPrice, we can pretty much sell anything which has a, let's say, a recognized brand attached to it.

Some people come in and buy just candles because they want the candles. We have good, strong like-for-like sales performance.

That's something that's very nice, because we're opening stores close to one another, and we haven't seen any cannibalization with respect to neighboring stores like in Targówek in Warsaw. We have two stores on either side of the street, and they've defended their position quite well.

In many cases, this is this is truly the case. There's a lot of potential to optimize costs.

I mentioned logistics already. We're alone in Central and Eastern Europe.

We're a desired anchor in many new investments in very many new or in many commercial centers. In 2026, 65% of our new stores will be in Off-Price.

Then we have CCC and Worldbox and the others. We're opening 100 stores CCC per annum.

This will gradually be extinguished. We're not going to go outside of Central and Eastern Europe.

That decision has been made. The full brunt of our strength is going to come through Off-Price.

We want all of the markets are doing well with CCC. We have costs under control, and we're going to switch our attention to Off-Price.

I think it's much safer when we're talking about operating abroad. CCC, Worldbox, others, it will its share will decline.

We can say that at the end of this period, 90% will be Off-Price new openings, new space. You've heard from me, not from the marketplace, what we're trying to do.

We have a new Off-Price concept. It's not something it's not a new Worldbox or anything like that.

This is Off-Price. If we look at the American market, there's, 10, 15 stores listed on the stock exchange with a very high EBITDA, with a very good valuation.

It's it's 29%, more or less, of profitability EBITDA in revenue. Now, Off-Price in every city meets different different needs.

HalfPrice, Guess, Michael Kors, Karl Lagerfeld, Tommy Hilfiger, and there's a large number of premium brands or semi-premium brands. Szok Price, we want to talk about having the best price.

These are less pronounced brands, but much better prices for the consumers. Having in mind the 100 new stores we're going to be opening, some of these stores will be utilizing Szok Prices as opposed to the great brands.

HalfPrice in large cities, malls, higher price points, fashion marketing. People are happy in HalfPrice, women are happy with the fashion, they've got nice bags.

With Szok Price, it's only going to be price. It's going to be a price-based approach.

We won't even mention brands, really talk about having the best prices in small cities and commercial parks. We're talking about we have that today.

We have Lubartów, Biłgoraj, Iława, and Sochaczew. They're all working very well.

These are not customers that are well-suited to HalfPrice. They're actually more suited to Szok Price.

HalfPrice is, TJ Maxx, Nordstrom Rack, Marshalls. There are other networks that are offering, let's say, T-shirts for $6, but they, like TJ Maxx, Nordstrom, Marshalls, are offering it for $9.

We're talking about Ross, Burlington. What's the difference?

There's a lower margin here in the Szok Price, but it's higher than in the Off-Price model. Here's a higher margin, gross margin.

Here the you have 50% more quickly turnover. The store, as a result, is earning the same amount of money, because the turnover period is more quick, it's quicker, it's a shorter period.

Let me show you on this map what I have in mind. This is our base, our core HalfPrice.

Then you also have HalfPrice luxury. That's in the higher-positioned brands.

We're not going to do HalfPrice luxury. We have stands within HalfPrice.

At the beginning, the results weren't too strong. We did that within 50 stores, now we did it with 30 stores.

We have good reactions. We're doing special collections for that in brands or stands within the HalfPrice stores.

It's only selected cities, large cities, large malls. We have basically the corner the luxury corner.

HalfPrice, that's around Zara, Zalando, IKEA, H&M. This is CCC, Worldbox.

Basically this is equalizing, or on equal footing, with with CCC and the others. Then you have the Szok Price.

This is, like discount value, like Sinsay, New Yorker, Primark, Pepco, Action. This is that client.

Here you can see this customer represents 60% of the total number of customers. They're not interested in fashion or brands.

They're trying to meet their needs. They need to buy socks even less expensive, tennis shoes and T-shirts less expensively.

For them, price is the most important factor. If we can go back.

Why have we achieved success in HalfPrice? Rapid expansion, high scale or magnitude, access to good merchandise, good premises, quick decision-making, logistics, efficient operations.

We're not using e-commerce, you don't need e-commerce at all. You need the ability to look for good opportunities.

If it were be if we were to be in e-commerce, it would be available everywhere. We have an advantage here, an edge.

We're saying to our partners that we don't have e-commerce, it's easier to produce things specially, because we don't offer anything in e-commerce. This is a model that's based on surprise.

You have to have individual units in the stores. I have to explain to people, nobody in Europe has been successful at doing HalfPrice.

There's one American company that's done something, but no other company has done it. There are many attempts made.

Things the timing wasn't there, and there wasn't the determination there. We had a good kick-off to Q2, you already know that.

I don't always want to be held to account. Today's conference is quite late.

It's usually at the 10th day of the month, and everybody's interested to see how the new quarter is going. We have 20% of the sales time.

What's most important is the overall quarter, the total quarter period. We've already revealed to you that the quarter started well.

We have higher margins. We have high like-for-like sales performance in HalfPrice, and we see increase even in Modivo, we have increase of 7%.

As Łukasz told you already, we're focusing on the margin on our own brands, because we're not interested in doing an excursion of 3% or 5%, or an EBITDA of 10%, because across the whole business, as you saw Q4, if the EBITDA was missing, basically what e-commerce represented 40%, and as a result, we weren't able to report good results in our retail business, and the overall business wasn't defending itself. We're acting very cautiously, prudently.

Omnichannel is our advantage. We're building stores, brick-and-mortar stores, we're reselling our own goods, our own brands, we're advertising them, and we're encouraging customers to buy from us at high margins, that's not going to change.

We want to sell 80% of our products in our own brick-and-mortar stores. That's why we have the margin promised by and the profitability promised by Karol.

I want to show you the sales structure. We have Worldbox other, that's 4% of our revenue, and then you have the three major channels: CCC, HalfPrice, and Modivo.

It's more or less equivalent. I think HalfPrice should be the sales leader in our group.

It's not really clear if we're an e-commerce, if we're a retail business, perhaps you would say that we're an off-price business. Karol says we're a platform.

I can say we're a platform. Here's Modivo Club.

Here's what we promised that we would achieve, and what we have achieved. It was an intuitive risk that we combined all of our brands onto a single platform.

We were successful. We've achieved that.

Only the good ones have fortune. We have 23 million club members.

We have 1.7 million gold customers who've paid for their membership, and they're paying us to be a member of this club. I think some of you have the gold.

You have to pay 60 zlotys. 50 zlotys net stays with us.

It probably doesn't stay with us, because we have to give it back, the 60 zlotys in cash back programs, because everybody will get back more than what they paid. Everybody will buy two or three times more, they're spending two, three times more, because they have that tangible benefit, and they're tapping into that.

We're adding brands to our Modivo Club, and we wouldn't rule out a situation in which in in the near future we're going to add some nice partners in that club for our club members to have nice opportunities, maybe not in the competitive field, but we might be able to create the best loyalty club in this part of Europe or in the world. Not really sure how to frame that.

Our goal was to have 3 million at the end of the year. I think we should achieve or beat that objective.

More or less 60,000 people a week are signing up to the gold club, another 60,000 to the other club, and so we're adding foreign 86% of all the people signing up for the club were from Poland. We're adding other countries, this is gaining gaining ground.

Karol is ahead of that event, he can say more about that subject and the growth numbers. Let me tell you who we are.

We are the Modivo platform. We have sales channels, we're producing products.

Let me reiterate, we produce. In the future, we want to sell 75% of our production in sales channels like Worldbox, CCC, or HalfPrice 40%, and Modivo's 50%.

We want to sell as much as possible what we're producing ourselves. It's hard to earn money on partnership brands.

Everybody has the same products, everybody also is discounting it. They're all fighting for payable traffic, and they're fighting by the prices.

Then if you have those the intelligent assistant that's going to assist you, it's going to be a fight for 1 zloty on every product. The products will be sold just slightly above zero or slightly below zero.

Somebody's going to buy something once, get rid of those products. We want to utilize our production and our brands, and nothing has changed here in several quarters.

We're just showing you that this is a process, we have more and more of that. Footwear, we need nine months in order to produce and get those products through in our stores.

We have many online channel approaches, we have brands. We can forget about WSS and the Biegacza store, the runner store.

That might account for 5% of our of our business. WSS, that's one store in the entire country.

We have collaboration, we have people queuing up for, two days just to buy things from us. It's also true of the runner store, the basketball store, Beverly Hills, Jordan, Black Riders.

This will develop the brand. We have CCC, Worldbox, HalfPrice.

Who are we? We are the platform, we have the foundations for the platform.

It's not the case that you have a single business that we're going, we're looking for synergies elsewhere. We're we have synergy in terms of our rents, marketing.

We're advertising Reebok shoes, then we're going to get a benefit in terms of sales of Reebok clothing and apparel. All of the channels are benefiting because of this marketing.

Right now, we're pretty advanced. Over the next quarters, you can see across the country that there are things that we're trying to do.

We're preparing ourselves well, and we want to extract synergy in all of the channels where we're present. Then also the supply chain within factories, logistics, technology, AI, our stores, brick-and-mortar network, and then economies of scale, and then one single loyalty club, the Modivo loyalty club or club.

Now, as we've combined everything. This is a major synergy.

It's all together. Costs are falling, they will continue to follow to fall, excuse me.

Some functions aren't getting bigger like management team size. Things are growing.

We're preparing for that. We changed the names of some of our companies, as you saw.

Not to reverse the downward trend, as some people said in or wrote in the newspapers, that the names won't help us. This was not at all the goal.

We wanted to make sure that we didn't want the name CCC to appear on the tickets on when we're printing out the receipts. Modivo is a nice name.

Then we have, Modivo SA, then we have eobuwie.pl, I won't explain, but that's a girl, that's a joke, of course, but we have Modivo Tech, which is all of our technology is in a single location. We don't have these races in terms about who's better.

All of our technology is done in one location. Then we have Modivo EU.

This is our company that's doing all of the purchasing or sourcing, it's all in a single hub. We do segmentation for the various the store networks.

The inventory is in a single location, we have a single warehouse. We don't have to send things back in order to push it over to HalfPrice if it hasn't sold elsewhere.

We have, 10% of our inventory in, let's say, HalfPrice, only 10%. Then we have Modivo.com, this is the only platform.

Here we have an app that we're still maintaining. In the future, I want to have a single platform, Modivo.com.

Then the scale is small in So we have Modivo Slovakia, Croatia, Serbia. In Poland, we have a different situation.

Since these are very large organizations, Poland's the biggest market. Since we started to work, we have HalfPrice as a separate company, CCC, Boardriders, and Worldbox, we have a director, we have somebody managing each one of those companies, but the scale is much bigger.

Everything is elsewhere is done under the framework of a single company. Before we say thank you and invite you to pose any questions, I just want to go ahead and say one more thing.

Our the race we're participating in lasts longer than a single quarter. I reiterate constantly, we've talked about those races in the '80s, the Polish team is controlling the race, and 82nd kilometer, 83rd quarter, that turned out that we didn't lose anything, because we were always working together.

We're working together in terms of our results. Everybody had soft e-commerce.

We don't have to think so much about trading volume or profitability. You can see that the profitability will have achieved.

We have some aces up our sleeves, and so communication will improve quarter-on-quarter. The goal for this quarter is 26% for our products.

We had 20%, but last year we had 8%. The difference on the margin is some 25 percentage points in terms of selling our products or a partnership product.

That's a very big difference in terms of, EBITDA depends on, the difference here of 2 3%. We're in Tour de France, we have a lot of experience.

This is the biggest race, but it has 21 different stages. We've completed only the first two stages.

We need more time in order to show that this model is the best model for retail, omnichannel, across Europe, this part of Europe. I don't think there're any obstacles that will be on our way.

We're following this. We're in line with the plan, nothing standing in our way.

We're at a stage where we can grow quickly and efficiently. We have a higher percentage of licensed brands in every one of our channels.

This will be increased. Licensed brands, even prior to the conference, there was a question about whether or not we're earning money on these licenses.

We are earning real money on these licenses. We can sell products with an 85% first margin.

Of course, at the end of the day, things vary. Our inventory is small.

We don't have to pay VAT, we don't have to pay customs duties. When we have a heavy inventory, because they have we have to pay for their margin, we have to pay for their custom duties as well as the customs duties and VAT.

Then they start calling us, we haven't earned money yet, and they want us to pay already. We have the Off-Price channels where the margin will always be in line with what we want.

That would be more or less it. I think I've said everything I wanted to tell you today, convince you.

So Łukasz, I'll invite you to join me on stage, the more difficult questions should be posed to Łukasz. I'm here to talk about the product and, say, inventories.

I think we'll be able to do it.

Sylwia Jaśkiewicz, I'm from the BOS Brokerage House. My question is about your geographic results.

How many countries and how many stores are not profitable?

We don't have countries that aren't profitable. I'm talking about HalfPrice and Modivo.

I can confirm we don't have any markets that aren't profitable. I don't know about any such markets.

If there are individual stores that might be unprofitable, we would take remedial means, and if this situation is fixed, then we terminate such a contract. In next year, there's no store that would be unprofitable with the exception of efootwear and Worldbox.

In CCC and HalfPrice, we don't have any stores that aren't profitable. Last year, we talked about wholesale sales, that you are going to grow wholesales.

So Łukasz didn't mention that we had the wholesale sales result as an additional burden. Wholesale is a little bit of, to be quite honest, it's a different term, different time.

It's a bit of a problem for us. They want to have the product more quickly than we have it, because these are wholesalers, intermediaries, middlemen.

They want to have 70 different models, they want to have samples, and then the order is only for five boxes. Everything is changing.

We were negotiating recently the terms and conditions with our licensors. Everybody believes that brands should be everywhere, in every channel, retail, wholesale.

Nobody wants to kill off a brand in a single brand or channel. We want to have a large number of channels of sales.

Now they're gradually releasing us from that requirement. Let's say I don't want to mention any specific brand.

Let's say we talk about footwear that's going to be in Lidl or something like that. These shoes will be in multiple concepts within our approach.

We have a very nice coverage of the market. Quite frankly, as we build our presence, if that shoe costs us 20 zlotys, we can sell it for 100, we can even sell it for 40.

There's going to be a problem with our wholesaler. They're going to say that you have so many stores around that I don't want to buy these products anymore.

It might turn out that all of the attention we've paid to this wholesale, I think that somehow this might be the end game. We're doing some wholesale sales like Roxy, Quiksilver, [Reespiders?]

. Those are professional things, these are helmets and skis and things like that.

We had promised that we would do this in the region, but gear for swimming. We're doing a lot of these sales through our own channels, we don't see this need elsewhere.

The marketplace is developing very nicely. I think we should have 200 million in revenue.

Karol is nodding his head, I'm speaking. What's the margin there, Karol, 60%?

You're saying right now, but if you look only at our brands, the margin even goes up to 70%, not just on the marketplace. EBITDA is roughly 25% from our marketplace.

We're very pleased with that. It's only shoes and bags in the marketplaces we're adding now.

We're number one everywhere where we're present with respect to footwear, whether it's Allegro, Zalando. We have a bigger offer than other brands.

There's no real impact of I wanted to ask you how much selling area will you have in Szok Price? We're not going to make a condition there.

Let me put it this way. We had 10 stores with Szok Price approach, I would admit to that, but we did it too early.

We had 600-square-meter stores, it didn't work. Why didn't it work?

Because we didn't have the products to fill the stores. Stores should be at least 1,200, 2,000, 2,500 square meters depending on the location, the size of the city, and the environment.

This is a commercial park, you should have a 2,000-square-meter store, and it's a minimum of 1,200 square meters. We have these stores, and the stores are earning very well.

The question is whether there's a need for this to have these stores in every single city. We want to be able to distribute these stores across the marketplace.

Thank you very much. I have a couple questions.

What are the costs of marketing planned for this year? Is the trend in Q1, will it be maintained?

What's the cost of licenses in Q1 2026? What's the CapEx planned for full year 2026?

Licensing costs,

well, it depends on the contract, and this is pro rata to sales depending on the contract. I'm not sure if we can speak to that, we're a public company.

We're not saying in a specific contract, it ranges from 3% to 6%. The CEO is negotiating a contract with even lower rates.

I won't state the names. We have very good American brands which don't have any coverage, and so the cost would be around 2%.

Made in USA with 2% with very nice brand. This is something that will work out well for Szok Price.

We shouldn't use the same brands in Szok Price and HalfPrice. We know how to do that.

If you look at the collections that show up in the fall for efootwear, better colors, better packaging, it's going to be better than what we have in efootwear stores today. It's proven itself, and we'll be able to grow sales even in the lower-ranking chain stores.

We don't see any major CapEx for marketing. The benchmark is below 100% 1% in revenue.

Modivo Club is a very good marketing tool because it generates cross-sales. It's not going to be a line item that will materially affect our P&L.

When we talk about CapEx, the benchmark is last year. We certainly do not want to exceed the CapEx figures from last year.

We can steer that very flexibly. We have turnkey stores, there're stores that we prepare, it's a decision that we make to a large extent.

One other important element when we talk about CapEx, and the CEO mentioned this previously, initially the original plans to start second phase of the HalfPrice project, our plans had assumed that we would begin this year and in the latter half, but we want to have a conservative approach, and having in mind our cash flow, and we made the decision to start with this in the first half of next year. It's not only about cash flow.

The automated machinery has to work well. If we raze to the ground the old, let's say, warehouse, it won't work.

It's also about cash.

It's hard to get a response. We're negotiating some contracts now, things are going better and better.

We have stores where we have coverage, fit-out as well as furniture. Negotiations are going well because everybody wants to have HalfPrice as an anchor.

Everybody wants to have HalfPrice in their galleries, shopping galleries across Europe. We're focused on having and running even better negotiations today than we had in the past.

Mariusz Basta, I'm from XYZ. I have three questions, the first is short.

Szok Prices, how many of the Off-Price stores, 100 Off-Price stores, what percentage of those stores would offer a Szok Price,

perhaps 20%? I would think 20 stores, 20%.

We have those premises, but I'm thinking internally. We've talked about great brands in Polkowice with Guess or Tommy Hilfiger, it's not sensible to do that.

We have to say it's a good price. It can't be a no-name or a discount, all of the products will have branded names, that's the strength.

We'll buy selectively to buy less expensive products, and things are going to work very well if we do it that way, because I see how things are working in the US. All of our ideas come from the US.

I didn't think of anything. I'm just buying tested and proven models.

My benefit or my advantage is that I have the braveness, the boldness to do these things. What's the second question?

There's a third question, too, but the second question. How many square meters?

How many square meters: 300, 150? We're quite flexible.

We'll reduce the number of meters if things aren't running the way we want that. You have to have money to have an additional 300,000 square meters, you have fit-outs.

We'll stop things. We're very flexible in this respect.

We have more than 50 60% of our contracts had OCR caps. All of us are capable of calculating even the price is low, staff costs less than 10%, we have high EBITDA performance in each one of our stores.

Now we need to add some new business and new revenue, and of course make sure that the head office doesn't cost too much, and then sell your high-margin products. This is what we've been doing for the last several months.

Nothing else. It's important, a must for us to have 300,000 square meters.

Hungary has 150 commercial parks after the change in government. Once prices are good, they're going to come forward and seek that.

There are different conditions in different countries.

My final question is about Worldbox. How much have you put back the target of a billion in sales at 20% EBITDA?

When will Worldbox start adding something?

Today we're fighting for profitability. We're thinking about 600 million in revenue.

The plan for this year is 600 million revenue. The billion's not so far away.

We're not saying about a large number of years. We'll speed things up once it starts earning some money.

I'm not saying it's not earning money. We have the first month in which we have the full collection, like-for-like is moving up.

If you look at the trade per square meter, we have a good margin. Traffic is short, but conversion is very good.

We just have to bring people through the doors. And Łukasz mentioned that the prices were too high, but I hadn't yet done the valuation of prices.

We didn't have influence over that company. Now it's our pricing, the margin is good, we're making purchases in Asia, there's nothing left to chance.

We maintain our belief in Worldbox. We want to lose as little as possible.

We know why we had some soft results. Two conferences ago, I said it's going to be our best business model.

Why did I say that two conferences ago? Because I have access to good premises on good terms and conditions, and I knew that I was going to have a high margin, and I knew that nobody else had that concept close to us.

I maintain that price. As I look at HalfPrice, maybe it's not going to be the best, but it's going to be good, because HalfPrice is doing very well with the overall off-price approach.

If you talk about maturation, well, the like-for-like performance is improving year-on-year, that's normal. When we prepared that concept, for five years we're going to be improving our like-for-like sales performance, then we'll add new categories, we'll build a new offering.

As I explained to you, when you buy from stock, then you have everything, you have the price, nobody buys pink T-shirts, but that's what they do in Italy. We've never had stock of 70% that would be black T-shirts, and so instead of 10%.

We'll brand those products, this is also SMU. It's something that rotates well, has a nice turnover, but the margin's 50% plus.

On our licenses, we're going to have 65 70% margin, which is a wonderful margin in Off-Price. All of those American chains, they don't do things on chains, it's just a matter of they buy and sell, it's a quick turnaround.

Our model is based on production. We have good turnover, but it's in route, this merchandise for quite a while.

A good Off-Price has a rotation, a full turnover within 35 days. We have work to do.

Thank you very much.

I see that there's a question from the back of the room. The brands, the farther you go down, even these companies that I mentioned, they have quicker turnover periods.

The better the concept, the quicker it turns over, but it has a smaller or lower price. At the end of the day, staff costs, rental costs are lower with respect to higher revenue.

I have a question about your CapEx. What was the CapEx in 2025?

I want to have a benchmark for 2026.

The CapEx, it will be in the final report that we'll publish in the near future. I think it was around 885 million zlotys.

There's also some CapEx for warehouses. This should be deducted, roughly 150 million should be subtracted, generally I assume that CapEx should not be higher than 700 million zlotys this year.

Could you say something more about the impairments on eobuwie?

Let me explain a little bit. You have to think about the methodology for allocation of purchase price.

If you do that exercise prior to incorporation within the consolidated financial statements, having in mind a company you've purchased one day before, we have to do an artificial exercise, and we have to do an evaluation of the receivables from that company, barring the business plans that you have for that company, and the ability to generate cash and everything else, and all the other synergies. You have to extract the company from the plans that you have.

It's a bit of an artificial concept, then you have to check the potential ability to pay back the amounts due. We recognized statistical impairment of 24 million zlotys.

This is not something that should be interpreted as a lack of faith in this business, or the lack of confirmation for the strategic plans we have with respect to this business. This is just the methodology for doing a fair value assumption or fair value assessment of inventory in the company.

Is this from CCC, from eobuwie? Yes, these are our receivables that have been assessed at a fair value basis.

At previous conferences, we said there were two major areas. It's the price we paid.

Then you have the Off-Price segment. Why are you deciding to have another segment which can, of course, divert your management attention from HalfPrice, from Worldbox?

We have Worldbox, which is a new segment. The full management team spends a lot of time on that, and now we're going to have another brand, a new brand within the framework of the company.

I think we have to understand each other. You started well when you said that this is a category of Off-Price, let's stick to that.

It's the same thing, but with a better turnover period. The same Reebok shoe, let's say there's one shoe that's purchased for $9 or $7, and we're selling it in different price points in Szok Price, for example, as opposed to the regular approach.

We're thinking about people who should come in and spend €29 to buy products, and not €39, because I know that people in the surrounding area, they need that price, they need a better price to make their purchases. That's how Off-Price works.

If you look at the American market, the same Reebok T-shirt costs $5.99 in one place, it costs $7.99 elsewhere in the more expensive stores, and it might cost $20 elsewhere. The same T-shirt has different price points.

We need that concept, then we'll have greater opportunities to escalate our Off-Price model. Let's take a look at the city of Lubartów.

There's a shopping park or a commercial park there, and it was a previous, it doesn't look nice, but it was a previous building material center. Business is working well.

We won't open HalfPrice there, we'll open Szok Price. It depends on the facility.

I didn't do a visualization of that, what direction HalfPrice is going in. We have very nice-looking stores in HalfPrice, whereas Szok Price, it's like Action, it's sort of like something like Jysk.

I was in Finland recently. They were trying to persuade us to open a store, and the conditions were quite ridiculous, and there was one location that had been exited by H&M, quite a bit of traffic.

It was the center, but it's an ugly shopping center. I didn't even ask for the price, but they only want 6%, 6% is the rents of revenue.

All of the concepts around were very low price, and we saw how people were dressed. These are different customers, that it wasn't a customer fit for us.

A few meters down the road, we had beautiful stores and beautiful brands, and a totally different customer was walking in. That's a totally different customer.

So 60% of customers in Poland would buy at Szok Price, whereas 30% would buy at HalfPrice concept. We're looking at this in the US and applying it here.

We're talking about those stores that should be opened as HalfPrice, but we'll open them as Szok Price stores, because we'll have a more simple advertising that's price-based. In HalfPrice, we'll have marketing with fashion and leading brands.

We showed you happy ladies that look very nice. Of course, it was with artificial intelligence, but the people were happy.

Szok Price will only advertise the products and the price. They will not talk about the brand, the products themselves.

Are there any other follow-up questions here in the room? I see there's one more question.

I'm from PKO. In the smaller towns and communities, are you thinking about rebranding HalfPrices into Szok Price?

No, all of our stores are profitable. The worst one generated 1 million, and this is close to my house in Polkowice.

Everybody's going to worry that HalfPrice isn't earning. I CCC and HalfPrice, and then I also built that center in Polkowice.

There's no need to do that, because Sochaczew, Łowicz, we have great brands, and HalfPrice, somehow it doesn't fit. I understand see how much traffic there is in these great locations.

All of the companies, all the brands I displayed, these are successful companies. I'm not able to move the presentation, change slides.

Maybe my colleague Wojtek will be able to do that. Please change the slide for me.

I'm not able to click the slide to a different one. It looks like something got blocked, okay.

Let's revisit the map for you to understand. There was the map just on the previous slide.

These are successful companies. New Yorker has 30% EBITDA, Sinsay, Primark.

None of these companies, with the exception of Sinsay, these are e-commerce stores, Temu and Shein, Jysk, Action, Pepco. They're they're not interested in e-commerce, they only have a brick-and-mortar approach, they have low base costs, and their stores don't have a major fit-out.

They have a smaller margin, but it's safer the customer. 60% of the customers are in the Szok Price category, why should we let that go?

That's not anything new, that's still within Off-Price, the same space, sometimes the same products, similar products, but the pricing will be different, and it will be displayed differently, merchandise differently. We have to do the things that the customer wants and not just do what we want, what we think the customer wants.

The customer in Iława wants, Szok Price, whereas in Wrocław they want to have HalfPrice. We'll have, a new presence in Wrocław, a beautiful store in somewhere else.

Then you have Renoma in Wrocław, and you have discounts around, it won't fit. It wouldn't fit if everybody else is trying to sell at base price.

There's Fort Wola. This is one of our more Do you know Fort Wola?

Basically it's a shopping center that was recovered. It's not Wola Park, 3,500, it's a beautiful location.

I'll do a HalfPrice there, and then Szok Price, then in Fort Wola we'll do the Szok Price, because they're only discounted stores, discount stores there. There are no branded stores there.

If it's going to be in Arkadia, have you so we have a beautiful location in Arkadia, nearly 3,000 square meters. HalfPrice is almost everywhere: in the Galeria Krakowska, Manufaktura in Łódź.

We're HalfPrice, we've almost completed the expansion in Poland. This was a 5-year process.

It's not the case that finally we get, immediately we get, premises in Arkadia. We lost one case to Uniqlo.

A large number of grocery stores, all they're reducing space, that's a big opportunity for us, and we can enter this space at very good prices. The EBITDA in HalfPrice it's going to be higher than 30%, it'd be harder to discuss with that.

Have we can we complete the discussion with Szok Price? I wanted you to hear from me.

In Wałbrzych, we're going to start on 24th of August, I'll send you a film with the opening of that Szok Price store. We'll do everything to make sure it works.

Maybe somebody will drive over and see us there. We're confident of the Off-Price model, because it's something that's tested and proven itself.

We want to be the king of Off-Price, that's our ambition. Any other questions?

I have a question from the internet. I'll happily respond to any questions here in the room, because that's why I came here, to respond to questions.

I don't think there are any other questions from the room. Maybe one question from the internet.

HalfPrice has a 45% percentage of licensed brands, I'm just reading the question, and you have a 40% SMU. Will it still be Off-Price or will it evolve in the direction of a normal store of a normal full-price store?

No. The whole world is producing SMUs, but at lower-cost licenses, because the licenses set a lower price point.

These are not full-price licenses. The same products will be sold in Modivo, the ones that will be produced, but at first prices.

First prices, well, HalfPrice, people buy in HalfPrice stores is because, the prices are discounted by 50%. Otherwise, they would go to first price.

We have one more question about Szok Price: Could you state more precisely about this brand? Is this a concept in which you will sell what you weren't able to sell in your full-price channels?

Then one follow-up question: Could you give an example of the brands that will be available in Szok Price? Yes.

Products will be shifted, because it's always about price. Even HalfPrice, things that aren't sold after the season, it shouldn't come back to the HalfPrice.

We should always have a fresh offering. That way, we can pump up our margin by 2%.

If we have a price-based approach, we'll always have faster turnover period. It's as we showed you in history, this is small number of percentage points in the old products.

The second question is about brands that will be available in Szok Price. What brands?

What brands? Would it be the same brands that you have in HalfPrice?

Let's think. Szok Price is more about people's needs.

Maybe it's chemical products, household products, toothbrushes, toothpaste. For children, it has to be less expensive.

We'll have a lot of inexpensive athletic gear, maybe not high-quality, but special collections. Forever 21, where we have a license, Eddie Bauer, Lucky Brand, Spyder.

There's a large number of American brands from ABG, we have minimum fees, but they have that American flair. There's a large number of brands.

We're signing large contracts, inexpensive brands for Off-Price. We know how to produce, we know at price points we need to have in smaller towns and communities Off-Price.

It's basically it's Off-Price or HalfPrice, and a totally different marketing setup and meeting different needs. We have a large number of offers, our buyers have so many offers, and we're trying to pick and choose to make sure that the products aren't too cheap.

This is a slightly different approach. We don't want to sell things for 20 zlotys, we want to sell things for 70 or 80 zlotys if they're branded products.

Things that can buy that can be bought inexpensively then could be sold to Szok Price. We've thought this through.

The most important thing is the head of, Off-Price wants to do that, because it was her idea. We had 10 stores, we had to close them, because we didn't tend to them properly.

It's clear that it would be good to have us to have a second concept now. Lower, less prestigious shopping malls or parks.

We're thinking about the surrounding areas. What's the mix of landlords?

If you have Sinsay, Pepco, Jysk, Biedronka, then we as HalfPrice don't fit. Let's agree.

Then you have there's Media Expert, there's Rossmann, CCC, but we don't fit that environment with HalfPrice. If we're talking about large shopping malls, then we fit.

Like if we were to open HalfPrice in Blue City, and now we have an offering in Skorosze, we won't set up a new HalfPrice store, we'll open a Szok Price. This is an extreme example, perhaps, from Warsaw.

Then we have a combined question about growing selling area. Are there any new markets we want to penetrate?

The second thing, are we thinking about moving into the East? We're developing Ukraine.

Ukraine is a big success now, it's a very good market. It turns out that it's a very good market for us.

There's one problem, the rents are for €4, but they didn't want to pay for fit-out. We have 20% like-for-like performance, it's a profitable market, and only Ukraine.

We're not thinking about Belarus, Russia, or Kazakhstan, Georgia. We want to optimize costs in those markets where we're already present, we just want to add new selling sales areas.

What are your plans for the brand Moyer 2? You have to ask the owner of that brand.

We signed a contract, we have a license for that brand, Moyer. Shoes, bags.

We have a license for everything, shoes and bags. I think the name Moyer 2 is a good name, you can associate it with luxury, but we need a brand for our channel.

We're going to sell that in our e-footwear channels, and we'll sell it on its platform. What's important, we have a licensing agreement where we don't have any minimum quantities, we do it if we want to, we don't have to do it, there's no minimum there's no minimum fees, minimum size or anything like that.

We're collecting a variety of ideas that we'll be able to apply. I think those are the most frequent questions in the chat function.

How does the management board think what does the management team think about the share price, and do you believe the buyback program will help investors see that the current share price shows that the company is undervalued? Is the priority to buy shares and continue developing the group?

In terms of the share price, in the valuation, my private opinion is that the company is highly undervalued. If you think about EBITDA, I don't want to as a management board member discuss with the share price or the valuation, that's not my role.

If you're thinking about buying treasury shares, we have the program, it's in place, and so the management board has a 2-year period in which it can buy back shares and treasury stock. It's not a requirement, it's not something that we have an absolute requirement to do.

We're looking at the best possible price to shares. It's attractive from that perspective.

The second thing, of course, there's the financial plan, a development growth plan, which we're pursuing, and that would include the points in time where we are. Q1 or H1 of a year, we've completed Q1, this is a point in time when we have higher costs linked to stocking our inventory.

We haven't had a good time up until now to perform that, but the plan itself is something that we uphold.

Let me add one comment if we talk about the share price. As people talk in the construction industry, we continue to work, and our defense is the work we're doing.

The share price will reflect the work we've done. That's all I can say about the share price.

Then there was a question about the dividend. It was somehow in the content of the body of that question about a dividend.

It's clear that we are a company who has in its strategy that we want to pay out a dividend. We have a dividend policy that's been embraced, adopted, but just as was said in terms of the program to buy shares back, well, there's somehow a requirement for the management to have in mind the current financial position, the growth plan.

Basically we'll incorporate all of that when we propose a dividend, and we'll follow the proper procedures and announce that when that happens. What's critical is that in the medium and near term, we want to be a dividend-paying company.

There's a request for information about Worldbox limitations. Will this lead to higher inventory?

How much new inventory has been ordered? That's a good question.

A very good question. We do have an inventory, the inventory is bigger than our sales capacity in ability to sell in Worldbox.

The expansion is only a small percentage figure. We have concepts like Modivo e-commerce or HalfPrice where these goods can be sold with a more attractive price, -40%, -50%, then we have higher margins there.

Generally speaking, let me tell you one other thing, perhaps I shouldn't say this at all, because this cuts off all of our margins of growth. We're producing these products for CCC, for Worldbox, for e-footwear, for single-brand stores like Beverly Hills.

We have these networks, we're going to sell at Off-Price models. The products arrive at our warehouse, and some of it goes to the full-price channels, and everything else goes to get, separate tickets, and then it would be sold in Spain, Italy, else.

Because Worldbox and Road Riders are only in Poland, but in the other 16 countries we can sell in the Off-Price approach. Did everybody understand what I was responding?

If a 90% margin, we discount it by like 30%, we have a 60% margin. This is we have a lot of flexibility in terms of our logistics, because we're everything is in a single center, logistics center.

The problem exists, but it doesn't exist. We purchased too much for an extension, because we're going to grow things by 100 stores, but it's something that will be spread across the board immediately.

We had that in mind when we were doing the shopping for the HalfPrice stores. If we stick to inventory, with respect to what you said previously, what's your idea to reduce inventories by 20%?

When do you think you can achieve that? Two quarters from today.

It's not so much that we thought that today, but the purchasing from Modivo. Everything is cut off by 30% per quarter in terms of partnership brands, but we're also limiting our purchasing because we want to work with warehouses that are less full.

If we want to open up 300,000 square meters in a sale in one of these centers, then we have to have we have to have long periods to pay for those products in order to be able to sell those merchandise. We have in full price you have a smaller shorter, sorry, a longer turnover period.

With the Off-Price approach, we're able to do things more quickly. Inventory will be much smaller in subsequent quarters.

Up until now, everything we've said, we've done. CCC is cleaned up, HalfPrice is moving forward fastly, Modivo Club is elegant solution.

The only thing that somehow not doing as well as it should be is Worldbox. Q3, Q4, we should have positive results there, and then the inventory.

Worldbox and inventory, these are the two things that still need to be housekept. We started much earlier, and so in the upcoming quarters we should see some kick-off, we should see some knock-on effects.

Modivo's been cleaned up, and so we have licensed brands, we've, improved that inventory. Let me mention here our Q4 model.

We had 11% sales in February. We sold double the amount of winter products.

Of course, this eliminated the sales of, half shoes for the spring. That the fact that we have 60%, this is a miracle, because we had lower prices.

Had we sold more of these flat shoes, we would have had a higher margin in CCC. That means we don't have 6 million pairs of shoes, we have only 3 million pairs of shoes in the inventory.

That means the latter half of the year will have higher margins for 3 million new pairs of shoes. We've we've been able to achieve better results.

I've never had 3 million pairs of, winter shoes, few. Basically the inventory is quite small.

A lot has been done having in mind inventories. As we gradually close up today's meeting, I have three questions.

Winter, we were selling things at 40% margin, not 65%, so that reduced our margin results, but things are good anyway. It's only going to get better.

Please go ahead. The assumption for the 5-year plan, are those assumptions still current?

Do you have this motivational program in place of 300 plus 4 shares in 2030 at 1,000 zlotys? When do you think you're going to be able to reach the final stage?

Everything I've said I'm not going to take back. This is my this is my major objective.

The bonus that's big at the end, I think everybody should be happy, because that's the motivational bonus. It's a big and serious race.

We should So the thing is that we want to have a good performance, and, the Tour de France and not just in some sort of one stage. We have an idea about how to operate in this business.

When we talk about the expansion, because we're expanding, everybody was doubting whether or not we could achieve the expansion, because we opened 75% of the stores in the last two months of the period, in November and December. Everybody was opening up for Christmas period, but we were able to achieve our targets.

We were we wanted to open those stores, we wanted the stores to operate. So 300,000 new square meters, this is these are regular openings.

We have to work on the cash and the cash flow. If we don't earn too much money, that won't be very realistic, of course.

We're trying to get some additional financing, leasing furniture. We have a lot of our stores are turnkey stores, and so we have to add some amounts.

We're much more aggressive in our negotiations. It seems to us that we can extract more from our partners.

We're more desirable to our partners. Our model has proven itself.

Nobody in Europe can not notice, for example, the HalfPrice. As I said, everybody was a little bit afraid of us, if we're going to be able to do what we wanted to do in the market.

Everybody today, let me mention everybody, even big companies, are preparing SMUs for us. I hadn't anticipated that, that we would reach a point in time where brands that were giving us products a year ago, they were saying that you could only sell them full price, now they're doing special collections for HalfPrice.

Full diplomacy, great negotiations, we've we've achieved success here. That's exactly the case.

The results prove that. These results are not wonderful.

For me, like-for-like is the most important, and margin. Everything else, Łukasz is calculating along with the team.

If our like-for-like is good, and the margin is good, and expansion is good, then we'll achieve our targets. It's not something that we need to calculate all the way from top to bottom.

That's true. So Łukasz is trying to bring everything together.

I'm pleased with Modivo, for everybody to know, because Modivo is really we have some pain points and stores aren't earning as much as we would want. Things are maturing less quickly, but the e-commerce has very good profitability level.

That wasn't so obvious a few weeks ago. We found a model that will enable us to earn money.

We would uphold the lack of guidance. We gave guidance previously, and things didn't work out.

We are supplying the max everything we're giving you all the maximum that we can give. E-commerce is very sensitive.

It earns money. LPP earns money, IKEA make money, because they're selling their own products in e-commerce.

They're not spending money on performance marketing. They have their own customers.

It's an additional service with a high margin. E-commerce on third-party brands, look at global companies, it does they don't earn money.

We're not interested in a low level of EBITDA. We're the leader in the sales of footwear in this business, we're not going to let that go.

We have to do it more with greater wisdom. We started that several quarters so ago, and so we will deliver.

I know we introduced the click & collect. You have to pay for the package.

How many stores, pick-ups do we have? 30%.

Everybody else is paying. There's no decline.

We have very good results in May in e-commerce. We haven't seen any not fall-off in sales, but we're doing it more economically.

A customer who comes to our store and picks up something, then can buy something else. We have this added value.

The same thing, like returns are also paid for. Anything else, Wojtek?

Maybe a difficult question. I think we should wrap up, because the train is going to Gdańsk, and so a friendly company.

We have everybody here, nobody's going to be able to go. Maybe one shareholder has a question: I hope that you'll have good results, because almost all of my assets are invested in your company.

Now we feel motivated. Yep.

Is that a question? I have almost all of my assets in this company.

I'm not sure that's the best investment model, but of course we accept that. We have the incentive program, I believe in it.

I've made this decision that nothing has happened in the company that would detain us or stop us from achieving our targets, our goals. It's like 2 + 2 is 4, we will deliver.

It might take more time. Things weren't earning money in Q4.

Black Friday or whatever they call it wasn't so successful. That's what they said with prices, that nobody earned money on the market.

I don't want to have a business like that. I want to build businesses that are resilient to, let's say, some market gossip or tremors.

If the margin is lower in HalfPrice or Szok Price, I want to be very profitable. If margin, well, falls, the whole market is going to have lower margins, but I'll do better just because I have better conditions from the get-go.

Those are the kind of businesses that we've built. We'd like to thank you very much for your attendance and your attention.

Thank you very much.