Eurocash S.A.

Report Publication Announcement • Aug 29, 2022

Current Report No. 18/2022

Date: 29.08.2022

Subject: Adoption of the Strategy for the Eurocash Group for the years2023-2025

Legal basis: Art. 17 sec. 1 of MAR

The Management Board of Eurocash S.A. with its registered seat inKomorniki ("Eurocash" or "Company"), acting pursuant to art. 17 sec. 1of the Regulation (EU) No 596/2014 of the European Parliament and of theCouncil of 16th April 2014 on market abuse (market abuse regulation) andrepealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/72/EC ("MAR"), hereby informs that on 29 August 2022 the ManagementBoard has adopted the Strategy for the Eurocash Group for the years2023-2025 ("Strategy") for its implementation. The summary of the keyelements of the Strategy are presented in the materials available at theEurocash Group's website.

In accordance with the Strategy, the Eurocash Group business activity inthe years 2023-2025 will focus on the further development of the corebusiness of the Group, i.e. on the following areas:

- in the area of Wholesale: the aim of the Eurocash Group is to furtherdevelop omnichannel wholesale (omnichannel sales), which is to lead toan increase in B2B customer loyalty, further building of cost and salessynergies, and, consequently, to improve shopping conditions and doubleB2B e-commerce sales; Eurocash intends to strengthen its leadingposition on the wholesale market in Poland and significantly increaseits customers' sales in this segment;

- in the area of Franchise (organiser of franchise and partnernetworks): concentrating investments in the development and positioningof franchise and partner networks, increasing the number of networkedshops and market share; further development of Delikatesy Centrum chainon franchise system basis, including with JV partners;

- the third direction of the Group's development will be the technologyplatform: an integrated loyalty programme, the creation of a leading POSplatform in independent trade, increasing the share of B2C e-commercewithin Frisco and PLN 1bn of turnover of Frisco by the end of 2025.

Social responsible activities are also an important element of theStrategy.

As a result of the implementation of the Strategy, Eurocash Group plansto achieve in 2025 EBITDA at the level of PLN 1bn (pre IFRS 16). TheManagement Board estimates that in 2023-2025 the cumulative increase incost efficiency will amount to PLN 100m EBITDA.

The Management Board of Eurocash will aim to stabilise the financingstructure at 1.5x Net Debt/EBITDA ratio (pre IFRS 16), with temporarilyhigher ratios to take advantage of market share gains.

Eurocash's objective is to return to regular dividend payments toshareholders, with the terms and amount of the dividend taking intoaccount the terms and structure of the financing to which the Group willbe a party.

In connection with the decision to concentrate on the core activities(wholesale, franshise and technology platform), the Management Board ofthe Company has decided to focus on the improvement of the profitabilityof the non-core (nonstrategic) business (including Delikatesy Centrumown stores), reduction or discontinuation of its development.

At the same time, the Management Board of the Company continues the workon the process of reviewing the potential strategic options for thedevelopment of the Eurocash Group, which has been communicated by theCompany in the current reports no. 7/2021 dated 02.04.2021 and no.3/2022 dated 01.02.2022. The review of strategic options is aimed atselecting the most advantageous way to achieve the long-term goal of theCompany, that is the development of the Eurocash Group resulting inmaximisation of value for the Company's current and future shareholders.

The information on the adoption of the Strategy was qualified as theinside information due to its potential impact on the activity of theCompany.