LPP : CR 41/2017 Information on the 2018 targets of the LPP CG

Information on the 2018 targets of the LPP CG

Current report no: 41/2017

Date: 21.09.2017

Time: 22:56

The Management Board of LPP SA (the Company, the Issuer) informs that, on 21 September 2017, a decision was made on the adoption of the 2018 targets of the LPP Capital Group.

Following the assumptions made, the key strategic goals for 2018 are as follows:

- entering two new geographic markets i.e. Israel (franchise stores) and Slovenia (own stores); consequently, by the end of 2018, the Company should have its on-site stores operating in 23 countries;

- increase in retail space by 10% in 2018 as compared to 2017 (i.e. to approx. 1 114 thousand m2, of which in Poland: approx. 547.7 thousand m2, other European countries: 277.7 thousand m2, CIS countries: 276.6 thousand m2, and countries of the Middle East: 12.5 thousand m2);

- 100% YoY increase in online sales in 2017 and 2018;

- launching online stores for all the brands owned in 4 new countries i.e. Bulgaria, Croatia, Serbia and Slovenia; consequently, by the end of 2018, online stores of LPP brands should be operating in 16 countries in total.

Regardless of the above, the Company's Management Board brings attention to the fact, that it intends to continue the Company's expansion abroad by adding at least one new country per year.

At the same time, the Issuer clarifies that, due to unpredictability of external factors not attributable to the Company, the above-mentioned parameters may not be considered as forecasts of operating data but merely as desirable goals to be attained by the Company during the next calendar year.

CR 41 2017 - Information on 2018 targets of the LPP CG