Redan S.A.

Earnings Release • Jan 5, 2018

Preliminary sales report of the Redan Group forDecember 2017

The Management Board of Redan S.A. reports that:

The estimated consolidated revenue from the sale ofgoods recorded by the Redan Group inDecember2017 was approximately PLN 73m, having dropped 1% year on year. InJanuary-December 2017, the Redan Group's revenue stood at approximatelyPLN 615m, having slipped by 0.7% relative to the same period of theprevious year.

The retail space of all Redan Group chain stores atthe end of December totalled 143.6 thousand m2, representing an increaseby 1% compared with December 2016.

Discount segment

In the discount segment, sales of goods in December2017 reached approximately PLN 47m, having dropped2%year on year. Cumulatively, revenue in the discount segment amounted toapproximately PLN 381m, an increase by 1% compared with thecorresponding period of the previous year.Revenuefrom the sale of goods through the www.txm24.pl online store in December2017 amounted to about PLN 0.9m, having dropped by 15% over December2016. Cumulatively, revenue from online discount sales stood at ca. PLN9.6m and increased by 7% year on year.

As at the end of December, the TXM store chaincomprised 401 stores with a total floor area of 106.4 thousand m2, whichwas 6% greater than as at the end of December 2016.

Fashion segment

In the fashion segment, revenue from the sale ofgoods in December 2017 was approximately PLN 26m and was higher by 1%than a year before. Cumulatively, revenue in the fashion segmentamounted to approximately PLN 233m, down 4% compared with thecorresponding period of the previous year.

Revenue from the sale of goods through Top Secretonline stores in Poland and Ukraine in December 2017 totalled PLN 2.9m,having dropped by 9% over December 2016. In January-December 2017,revenue generated by Top Secret online stores was PLN 31.4m and was 6%lower than in the same period of the previous year.

As at the end of December 2017, the retail space ofchain stores selling Top Secret, Troll and DryWash brand productstotalled 37.2 thousand m2, having declined by 11% year on year.