Modivo S.A. ($MDV)

Good day, ladies and gentlemen. I'd like to welcome you to the results conference. We're going to discuss the results of Q1 2026 on Modivo platform, we're running this conference in Warsaw and the Stock Exchange, Warsaw Stock Exchange building. And since it's taking place in Warsaw. And at the same time, there are large demonstrations in the [indiscernible], we're going to delay the start of the meeting by the conference by roughly 15 minutes to ensure that everybody can reach us at the stock exchange. So we'd ask you to be patient. We'll ask you to come back at 2:15. Thank you very much for your understanding. 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 of the stock exchange floor in the Warsaw Stock Exchange. We're now already and poised to kick off. So if we talk about the results, let's begin by discussing the EBITDA result for Q1 of 2026. So the metric we're showing you there is adjusted EBITDA result. So things that aren't comparable so to make sure that we're talking about the underlying actual results, having in mind the core business in comparable conditions. And so 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 the first quarter, of course, our ambitions were greater our appetite was greater. But in relatively difficult conditions with unstable while they're unstable geopolitical situation, which appeared in this quarter. we believe that this result is pretty decent. And so this means that our EBITDA on an adjusted basis is very comparable on a year-on-year basis. We're talking about adjusted EBITDA. So let's think about this a little more in-depth to see how these results were determined how they were calculated. So if you think about last year's performance, we start with the reported EBITDA and then we extracted FX losses and gains. Well, last year, they had a 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 [indiscernible] impact is in excess of 70 million year-on-year. Another factor, second factor, which is not comparable on a year-on-year base, this is work box [indiscernible] books. And so in the first quarter of this year it was consolidated in full for the first time in the results of group. And so in [indiscernible] box, it's red. So it's minus 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. It's not something that we could have prepared earlier. So February and March were a period in which the sales potential wasn't fully tapped into. And so we were a little bit quite late in terms of replacing the collections. So in April, things start to look pretty much better. And the other thing is margin replacing the previous collection with the new collection. So during Q1, the gross margin achieved by [indiscernible] box moved from 2% in the first weeks of the quarter, up to 54%. So I could say that we were reaching pretty decent levels. Of course, our intentions and our ambitions are much greater. So 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, [indiscernible] Box concept, and 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 PLN 2.4 billion. The growth or the sales growth rate was 4%. So the various brands had differing varying performance. So [ CCC ] was flat, slightly negative year-on-year. And so this has a high level of saturation. It's well established on the market. And so relatively limited capabilities to continue growing their sales, their half price continues to be motor. The [ engine ] is 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 leaves us and portends 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 PLN 50 million. And so we reduced the [indiscernible] revenue in by 6 percentage points to 12%. So we believe this is a pretty good level, even though sales were lower having in sales efficiency in terms of performance marketing. And 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% during an expansion, having in mind the dynamically evolving conditions with at weather, this is a pretty decent result, which shows that with such major expansion, there's risk of pretty big cannibalization, so that has been limited or curtailed. And so the results in Q1 means that the gross margin is 51.8%. So it's the highest level of gross margin. We've achieved this as a group in recent years. So it's higher by 1.3 percentage points. Now if we look at like-for-like sales performance, I started talking about that in half price and CCC you can see that it's in half price. It's clearly in the black. So it's 6% on the screen at screen, so it's moving up. And so we're showing you the ability to generate like-for-like driven by traffic, very great. 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 point. 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%, minus 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 half price. Even though track was down, we had positive conversion, which is better year-on-year. So this means the licensed products in our offering are being well received by the customers. In terms of CCC, we need to 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 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%. So it's up by 1.3 percentage points across the group, and we've been able to improve the gross margin in every one of our businesses. So we have the gross margin in CCC above 60% watermark. In Halfprice, it's up by 0.5 percentage point in Modivo.com we were able to improve the gross margin year-on-year by 0.1 percentage points. So it's clearly almost at 46%, and so these are good results for an e-commerce business. So starting with first quarter of this year, we're breaking down the licensing fees per brands. So if we were to utilize the previous methodology, then the increase in margins and Halfprice in Modivo would have been higher, more or less by 1 percentage point, they would have been higher. So 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 3 of these businesses. And so CCC and Halfprice are growing by some 7 percentage points. And we can say in Modivo.com, this is quite an important factor right at 20%. So it's up by 8 percentage points year-on-year. This is a good concept that's proven itself. And let me dwell a little bit longer on Modivo.com. I want to tell you where we started 3 years ago. In 2023, our margin was 38%, so 8 percentage points below the margin watermark we received or generated in Q1. So we're focusing on our own brands, licensed brands. This is something that is proving itself delisting other people's, other entities, brands. So we've listed some 700 brands, other brands, and we're focusing on the 100 most strategic brands, which generates 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 were at 20% in the mix, and so it continues through, and it will continue to be increased until we achieve the 50% watermark. And so this was possible, thanks to efforts that we took to sell off both the ends of collections for other or third-party brands. And so 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. So this effect should no longer be visible. What's important our 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 are -- the selling area. So we have available in the group. So this is something that's quite good. Our fixed expenses are rigorously treated. They're not growing. We can say the general admin in some -- areas like in have, in fact, fallen. But the new selling area has not yet fully shown its total potential. So Halfprice, for example, is a brand once a store is opened. This is where we have the largest number of openings. We need some time for the stores to mature. And that's why the cost to income ratio. That's why we see that there's a slightly higher cost impact. So this is a transitory or transitional effect. So we should be around 37% once that's fully exploded. And so 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. And so we're saving -- making savings here, and that's PLN 50 million. And so we're inducing the ratio of performance media to revenue. And we're in pretty good levels for e-com business. And 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. And 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. And if you compare that and look at Modivo, we see a positive impact as EBITDA has grown by some 9%, and so we're coming back to levels that are quite good. For example, [indiscernible] an increase of 9%. This is just 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, [indiscernible]. Good afternoon, ladies and gentlemen. We agreed [indiscernible] that you wouldn't say too much about business, but you would only talk about the numbers, but we 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 CapEx, and so that's why the inventories grew a little bit and so let's say, inventories are down by 2%. We've opened 40% more source. 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 misleading methodology. 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. And this period is extending by some 60-odd days because of transportation time. And so it's roughly 90 days. The purchasing process is not because we want to get the goods more quickly. And so we're the first ones doing it in Europe. But there's a difference in the margin of 20% in terms of what we were buying previously in the margin. We're going to be able to extract now. So thinking about inventory. I'm not yet happy with this level of inventory. So this is something we're focusing on deserves our attention. So we want to reduce that by some 20%. We 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. Starting with Worldbox. Here, we can say that it's not earning money, but 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 are right late when it started to show up to the stores, then we start to have margins. Well, you have the average margin achieved on old merchandise and new merchandise, having mind the company that was taken over. And so 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%. So 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 that we're preparing for that. This is taking longer than perhaps we had originally thought, but we're gradually achieving what we want and the traffic is missing. We can work on that traffic. So 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 the conversion customers selling 50%, 60% more through conversion because you have footwear, accessories and things like that, apparel. So we're happy with the margin. We're happy with the conversion. We're not happy with traffic. And so some questions have been posed about the stores you're not seeing this type of traffic you're thinking about Warsaw. This is the top -- the bottom 10%. This is not a concept for the big cities. If we look at the revenue in the smaller towns communities. We're quite happy with that. We're starting to tweak our tactics. Let's take a look at what's happening with the margin. Well, let me put it this differently. So this is the margin that was promises. In the most recent presentation, we talked about how we're going to achieve the margin on Worldbox. So 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 at the end of the day, our target is to achieve a 62% watermark. So this is a concept addressed to the same customer and Worldbox stores are frequently share a wall with CCC. So this is not a normal margin. We have a multi-brand concept, the margin -- the maximum merchant that you usually achieve 40%, so 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 performance, but 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. So we have partnership brands everybody has those brands and everybody is giving discounts. It's not possible to have more than 40%. So that's 20% of our sales on these brands. And then we have 3 own brands, brand in [indiscernible] and the other ones are licensed brands. So this is a mix of casual and sporting clothes. And so this fulfills all of our expectations. That's one of their brands 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. So we have licenses to produce everything footwear, accessories, apparel and if we want to produce, for example, bedsheets, we can also do that. Well, let's move on. What's important here. When business is not running as well as we wanted to we decided to tweak things. And we talked about 150 stores for NM we're going to take that down to around 50 per year. So our expansion will go at a smaller pace. And then we're going to do international expansion of Worldbox. If that machine 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. So 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 met 2 or 14% of our top line. So once we see the annual top line, we'll see how much money we're going to get back from the rents -- so if we have 60% margin and then 14% repay, 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. And so we're selecting the sites. So the best cities for us are 20,000, 30,000, 40,000 inhabit sized cities. And so for now, we've decided to stop. It's obvious that we didn't want to go further with the larger cities. Now if you can look at the Halfprice. Halfprice is now celebrating its 5-year anniversary I don't know if you remember when I talked -- when I started talking about Halfprice had a lot of stock. We are a crisis. We had contacts with brands. Everybody had problems with goods, merchandise. So it was a good time for us to kick those operations off. I didn't think this of myself. I had just seen what was happening on the American market. So in the United States, it's 18% of Halfprice, something that's been growing very nicely. If we look at some of these companies that run Halfprice business they've been successful across the board. So I can't imagine that's what I was thinking then that it's not possible for us not to achieve its success in Europe as well. And so we can say that there's nobody else in Europe with that type of Halfprice. So Poland represents 2% U.K. is 6% and the U.S. was 18%. I was in the States recently, looking at those models. There are different Halfprice models. There's more than 10 different Halfprice models at different price points. there are experts in sports, also home goods, home decor for operation. There was a big snowstorm blizzard in New York City. And I went to Miami instead, and I was looking at Halfprice stores on the map. And it turned out delivering 200, 500 meters in the United States, I was able to find an Halfprice store. So there are quite a few of them. This map shows that in the near -- in a very shorter period, we became the leader of Halfprice in Central and Eastern Europe. We were the leader, we became quickly in year 2. So we don't have competition. So I have to teach people, what Halfprice is, the landlords and other markets. I do it less and less, but originally, I had to teach people what Halfprice is -- so maybe if you can give me the click or that way I can click this slides more quickly. The logistics center, as we told you, we're building a new logistics center, so in Halfprice, we were using a temporary solution for quite a while. So it was a little bit like a manual approach. Now we're building a modern center in [indiscernible] we're going to be able to support 500 Halfprice stores [indiscernible]. So 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. And so we have stacked shelves, so most of our processes are automated. So we have Phase I, Phase II. So at the beginning of next year, we should kick off the construction of Phase II, then we have to move some of the old race that to the ground and then build the new building on the right side there. And 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. Well, the licensing impact, I'm going to try to illustrate that it's not so big yet. But 52% margin in Halfprice, that's an unheard of margin. This has been cleaned up the licensing costs. So the average margin in the Halfprice is 35%, 38%. If you look at American companies and their figures. So we're achieving something that's quite extraordinary in this industry. Here, we're showing you where we started. The black is what the purchasing we did on the market. We were taking advantage of the crisis on the market. What happened with COVID. So we're buying things from the market. And so the margin was less attractive. Today, the margin is growing. [ SMUs ] have a higher and higher share of mix. And so this is for -- in our licenses as well. So the SMUs are done specifically for our -- so 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 purchases. You have to buy it, you have to change the tags, you have to give labels for each country. So the SMU, these are produced directly in Asia on FOB they're already labeled, so there's a big cost in offers in order to exchange the tags. So we believe that we're going to have much lower cost to prepare goods. It will be properly packaged. It will go through the warehouse on a cross-dock basis. and then it will be in the stores. So this should improve the profitability. Now the license itself, what gives these licenses to give us a higher margin substantially higher margin. These are very substantial margins in an Halfprice 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. So 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 sold well. And so are saying that the products are more attractive, better fit there's a better fit or a 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 Halfprice. So that means we're expanding our position because we have 3,000 square meters in every Halfprice store. And so it's something you can do quite well quite easily. And so 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 what fit out with OCR cap rates. So we're pleased with the work that has been done up into now, but we're picky in terms of what we choose -- there are several determinants. Well, 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 an Halfprice, and so if we have better sales in footwear, we 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, let's say, a reignized 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 [indiscernible]. So we have 2 stores on either side of the street, and they've defended their position. And in many cases, this is truly the case. And there's a lot of potential to optimize costs. I mentioned logistics already. And we're alone in Central and Eastern Europe were desired to anchor in many new investments and very many new in many commercial centers. So in 2026, 65% of our new stores will be in Halfprice, then we have CCC and Worldbox and the others. So 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 is but been made, the full brunt of our strength is going to come through Halfprice. We want -- all of the markets are doing well with CCC. So we have costs under control, and we're going to switch our attention to Halfprice. I think it's much safer when we're talking about operating abroad, and so CCC Worldbox, others its share will decline. And we can say that at the end of this period, 90% will be off-price new openings, new space. So you've heard from me, not from the marketplace. What we're trying to do, we have a new Halfprice concept. It's not something -- it's not a new Worldbox or anything like that. This is Halfprice. And if we look at the American markets, there's 10, 15 stores listed on the stock exchange with a very high EBITDA with a very good valuation and it's 29% more or less profitability, EBITDA and revenue. Now Halfprice in every city meets different needs, Halfprice [indiscernible] Michael Kors, [indiscernible]. And there's a large number of premium brands or semi-premium brands, but Shockprice we want to talk about having the best price. So these are less pronounced brands, but at much better prices for the consumers. And so having in mind the 100 new stores we're going to be opening, some of these stores will be utilizing Shockprice as opposed to the great brands. So half price in large cities, malls, higher price points, fashion marketing, so people are happy in Halfprice. Women are happy with the fashion. They've got nice banks. But with Shockprice, it's only going to be priced. It's going to be a price-based approach. We won't even mention brands, [indiscernible] talked about having the best price in small cities and commercial parts. But we're talking -- we have that today. We have [indiscernible] they're all working very well. these are not customers that are well suited to Halfprice. They're actually more suited to Shockprice. So half price is TJ Maxx, Nordstrom Rack, Marshalls, so there are other networks that are offering, let's say, T-shirts for $6, but they -- like T.J. Maxx, Nordstrom Marshalls are offering it for $9. We're talking about Ross, Burlington. What's the difference? Well, there's a lower margin here in the Shockprice, but it's higher than in the off-price model. Here's a higher margin, gross margin. Here the -- you have 50% more quickly turn over. So 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 half price luxury, that's in the higher position brands. We're not going to do Halfprice luxury. We have stance within Halfprice. Well, at the beginning, the results weren't too strong. We did that within 50 stores. Now we did it with 30 stores. So we have good reactions. We are 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 and Halfprice, that's around [indiscernible] H&M. This is CCC Worldbox. And so basically, this is equalizing or on legal footing with CCE and the others. Then you have the Shockprice. This is like discount value [indiscernible] New Yorker, [indiscernible] action. This is that client. But 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 and T-shirts less expensively for them, price is the most important factor. So 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 we were to be in e-commerce, it would be available everywhere. We have an advantage here, and edge, we're seeing to our partners that we don't have e-commerce. It's easier to produce things, especially 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. So 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 Well, things -- the timing wasn't there, and there wasn't a determination there. So we had a good kickoff to Q2. You already know that. I'll always want to be held to account, today's conference is quite late. It was usually at the tenth day of the month, and everybody is interested to see how the new quarter is going. Well, 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 an increase of 7%. As [indiscernible] told you already, we're focusing on the margin on our own brands because we're not interested in joining the excursion of 3% or 5% or an EBITDA of 10% because across the whole business, as you saw Q4, if the BT was missing basically, while 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. And so we're acting very cautiously, prudently. So omnichannel is our advantage. We're building stores, brick-and-mortar stores, where we're selling 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. So we want to sell 80% of our products in our own brick-and-mortar stores. And that's why we have the margin promised by the profitability promised by [indiscernible]. So I want to show you the sales structure. But we have Worldbox Other, that's 4% of our revenue. And then you have the 3 major channels: CCC, Halfprice of Modivo. It's more or less equivalent. So I think half price should be the sales leader in our group. It's not really clear for an e-commerce for a retail business, perhaps you would say that we're an Halfprice business. [indiscernible] says, we're a platform. Okay, I can say we're a platform. Here is more Modivo. 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, well, only the good ones half fortune. So 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 clip. I think some of you have the gold, you have to pay 60 net stays with us, it probably doesn't stay with us because we have to give it back the 60 in cashback programs because everybody will get back more than we paid. So everybody will buy 2 or 3x more. They're spending 2 to 3x more because they have that tangible benefit and they're tapping into that and we're adding brands to our Modivo club, and we wouldn't roll out a situation in which it's in the near future, we're going to add some nice partners in that club for our club numbers 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 better 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 for an 86% of all the people signing up for the club were from Poland. We're adding other countries. This is gaining ground. And so -- so Carlo is ahead of that event. So 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 read that we produce in the future, we want to sell 75% of our production in sales channels like Worldbox, CCC, Halfprice 40% and Modivo 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. So then if you have those -- the intelligent assistant that's going to assist you, there's going to be a fight from [indiscernible] on every product. So products will be sold just slightly above 0 or slightly below 0, somebody is going to buy something want to get rid of those products. So 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 that. So footwear, we need 9 months in order to produce and get those products through in our stores. We have many online channel approaches. We have brands. So we can forget about WSSS and the [indiscernible] store that might account for 5% of our business. But WSSS that's one store in the entire country, we have collaboration. We have people queuing up for 2 days just to buy things from us. So it's also true of the runner store at the basketball store, Beverly Hills or Black writers. This will develop the brand. You 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 in -- we're looking for synergies elsewhere we have synergy in terms of our rents, marketing. So if we're advertising rebook shoes, then we're going to get a benefit in terms of sales of Reebok clothing, apparel. So all of the channels are benefiting because of this marketing right now, we're pretty advanced. But 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. So now as you know, we've combined everything. This is a major synergy. It's all to get their costs are falling. They will continue to fall to fall, excuse me. And some functions aren't getting bigger like management team in 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 the road in the newspapers that the names would help us. This is not all the goal. We wanted to make sure that we didn't want named CCC to appear on the tickets when we're printing out the receipts. Modivo is a nice name. And then we have Modivo S.A. then have [indiscernible]. I won't explain that. That's a breast 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. So 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. So it's all in a single hub. We do segmentation for the various store networks. The inventories 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. So we have 10% of our inventory in, let's say, Halfprice on 10%. So then we have ModivoCom. 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 [indiscernible] and the scale is small in SF-Modivo, Slovakia, Croatia, Serbia, and Poland, we have a different situation. Since these are very large organizations, Poland is the biggest market since we started to work -- we have Halfprice as a separate company, CCC, Board writers and Worldbox. We have a director. We have somebody managing each one of those companies, but the scale is much bigger. But everything that's elsewhere is done under the framework with a single company. So 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 last longer than a single quarter. I reiterate constantly. We talk about those races in the '80s. The Polish team is controlling the race in 80-second kilometer, 83rd quarter. that turned out that we didn't lose anything because we're always working together. So we're working together in terms of our results. Everybody had soft e-commerce. So we don't have to think so much about trading volume or profitability. And so you can see that the profitability will have achieved. We have some aces up our sleeves. And so communication will improve quarter-on-quarter. So 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 our partnership product. That's a very big difference in terms of a beat that depends on the difference here of 2%, 3%. So we're toward fans. We have a lot of experience. This is the biggest race, but it has 21 different stages. So we've completed only the first 2 stages. So we need more time in order to show that this model is the best model for retail omnichannel, across Europe, despite of Europe. And I don't think there are 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 1 of the channels. This will be increased. So 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, but our inventory is small. We don't have to pay VAT. We don't have to pay customs duties. So we have a heavy inventory because they have -- we have to pay for their margin. We have to pay further custom duties as well as the custom duties and VAT, then they start calling us. We haven't earned money yet and they want us to pay already. So we have the Halfprice channels where the margin will always be in line with what we want. So that would be more or less it. I think I've said everything I wanted to tell you today and convey to you. So [indiscernible] I'll invite you to join me on stage. So the more difficult question should be posed to [indiscernible]. I'm here to talk about the product and so inventories I think we'll be able to do it.

[indiscernible]. I'm from the [ Bosch 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 the situation is fixed, then we terminate such a contract in next year, there is no store that would be [indiscernible] with the exception of e footwear and Worldbox. So in CCC and Halfprice. We don't have any stores that aren't profitable. Last year, we talked about wholesale sales that you were going to grow wholesales. So [indiscernible] didn't mentioned that we had the wholesale sales result as an additional burden. Wholesales is a little bit of -- to be quite honest, it's a different term, a 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 intermediary middleman. They won't have 70 different models. They won't have samples. And then the order is only for 5 boxes. So everything is changing. We were negotiating recently the terms and conditions with our licensors, everybody believes that brand should be everywhere in every channel, retail and wholesale. And so nobody wants to kill off a brand and a single brand or channel. We want to have a large number of channels of sales. And so now they're gradually releasing us from that requirement. Let's say there's -- I don't want to mention any specific brand, but so we talked about footwear that's going to be in lead or something like that, it's going to be -- these shoes will be in multiple concepts within our approach. So we have a very nice coverage of the market. So quite frankly, as we build our presence, if we're -- if it should cost us 20 we can sell it for 100, we can even sell it for 40. So there would 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. So it might turn out that all of the attention we paid to this wholesale, I think that somehow this might be the gain. We're doing some wholesale sales like [indiscernible]. Those are professional things. These are helmets and skis and things like that. So we had promised that we would do this in the region. But gear for swimming, but we're doing a lot of these sales through our own channels. We don't see this need elsewhere. What the marketplace is developing very nicely. So I think we should have PLN 200 million in revenue. So [indiscernible] nodding his head, so I'm speaking, what's the margin there [indiscernible] 60% you're saying right now. But if you look only at our brands the margin even goes up to 70%, not just in the marketplace. So EBITDA is roughly 25% from our marketplace. We're very pleased with that. So it's only shoes and bags in the marketplaces we're adding now. We're #1 everywhere where we're present with respect to footwear [indiscernible] we have a bigger offer than other brands. So there's no real impact.

I want to ask you how much selling area, well, you have in Shockprice? We're not going to make a condition there.

Let me put it this way. Well, we had 10 stores with Shockprice approach. I would have mentioned 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. So stores should be at least 1,000, 2,000, 2,500 square meters, depending on the location, the size of the city and the environment. So this is a commercial park. So you should have a 2,000 square meter store, and it's a minimum of 1,200 square meters. So 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.

I have a couple of questions. What are the cost of marketing planned for this year? Is the trend in Q1? Will it be maintained? And what's the cost of licenses in Q1 2026? And 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 country, it's somewhere -- 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 to be around 2%. So made in U.S.A. with 2% with a very nice brand. So this is something that will work out well for Shockprice. We shouldn't use the same brands and Shockprice and Halfprice. So we know how to do that. If you look at the collections that show up in the fall for footwear, better colors, better packaging. It's going to be better than what we have in e-footwear stores today. It's proven itself and we'll be able to grow sales even in the lower ranking stores. We don't see any major CapEx for marketing. The benchmark is below 100%, 1% in revenue. So motive club is a very good marketing tool because it generates cross-sales. And so it's not going to be a line item that will materially affect our P&L. But 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 are stores that we prepare, switch a decision that we make to a large extent. One other important element we talk about CapEx and the CEO mentioned this previously, initially, the original plans to start second phase of the Halfprice project. Our players 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 to 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. So if we raise the ground, the old, let's say, warehouse, it won't work. So it's also about cash. It's hard to give 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. So we're focused on having and running even better negotiations today than we had in the past.

[indiscernible]. I have 3 questions. The first is short. Shockprice, how many of the Halfprice stores, 100 Halfprice stores, what percentage of those stores would offer a Shockprice, perhaps 20%.

I would think around 20 stores, 20%. Well, we have those premises, but I'm thinking internally, but we've talked about great brands in [indiscernible] with GAS or Tommy [indiscernible], 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 U.S. All of our ideas come from the U.S. I didn't think of anything. I'm just buying well and prove -- 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 to 150 work [indiscernible] flexible or reduce the number of meters if things are running the way we want that. You have to have money to have an additional 300,000 square meters. You have fit outs. So we'll stop things. We're very flexible in this respect. We have more than 50%, 60% of our contracts, we've had OCR caps. All of us are capable of calculating even the price is low. So staff costs less than 10%. So 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. So it's important a must for us to have 300,000 square meters. Hungary has 150 commercial parts after the change in government. And so once prices are good, they're going to come forward and seek that. Well, there are different conditions in different countries.

My final question is about Worldbox. So much have you pulled back the target of PLN 1 billion in sales at 20% EBITDA. When will Worldbox start adding something. Today, we're fighting for profitability, we're thinking about PLN 600 million in revenue. The plan for this year is PLN 600 million revenue. And so the PLN 1 billion is not so far away.

We're talking 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 [indiscernible] mentioned the prices were too high, but I hadn't yet done the valuation of prices. So 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 a chance. So we maintain our belief in Worldbox [indiscernible] as little as possible. We know why we had some soft results. 2 conferences ago, I said it's going to be our best business model. Why did I say that 2 conferences ago, because I have access to good premises on good terms and cushions and I knew that I was going to have a higher margin. And I knew that nobody else had that concept close to us. I maintain that price. But 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 Halfprice approach. If you talk about maturation, well, the link for like performance is improving year-on-year. That's normal. When we prepared that concept for 5 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, you have nobody buys pink T-shirts, but that's what they do in Italy. So we've never had stock of 70%, that would be black T-shirts and instead of 10%. So we'll have the name for brand those products. This is also SMU. It's something that rotates well has a nice turnover, but the margin is 50% plus on our licenses, we're going to have 65%, 70% margin, which is a wonderful margin in Halfprice. So all of those American chains, they don't do things on chains. It's just a matter if they buy and sell, so 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. But 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.

Well the brands the farther you go down. Even these companies that I mentioned, they have quicker turnaround periods, turnover periods. So the better the concept, the quicker turnover in has a smaller or lower price. So 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 will have a benchmark for 2026.

The CapEx, it will be in the final report that we will publish in the near future. I think it was around [ PLN 885 ] million. But there's also some CapEx for warehouses. This should be deducted roughly PLN 150 million should be subtracted. So generally, assume that CapEx should not be higher than PLN 700 million to PLN 800 million this year.

Could you say something more about the impairments on [indiscernible]?

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 the company has purchased 1 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. So it's a bit of an artificial concept and you have to check the potential ability to pay back the revenue -- sorry, the amounts due. So we recognized the statistical impairment of PLN 24 million, 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 a fair value assessment of inventory in the company.

Is this from NCCC from [indiscernible]?

Yes. These are our receivables that have been assessed for adding fair value basis, so at previous conferences, we said there are 2 major areas. So it's the price repaid 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 Halfprice. Let's stick to that. It's the same thing, but with a better turnover period. So the same Reebok shoe. So let's say there's 1 shoe is purchased for $9 to $7 and we're selling it at different price points in Shockprice, for example, as opposed to the regular approach. We're thinking about people who should come in and spend EUR 29 to buy products and not EUR 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 cost 599 in 1 place, it costs 799 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 [indiscernible]. There's a shopping park or a commercial part there. And it was a previous -- it doesn't look nice, but it was a previous building material center business is working well. We want to open Halfprice there, we'll open Shockprice. It depends on the facility. I didn't do a visualization of that. Which direction Halfprice is going in. We have very nice looking stores in Halfprice, whereas Shockprice, it's like action. It's sort of like something like [indiscernible] 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 HM, quite a bit of traffic. It was the center but it's an ugly shopping center. And I didn't even ask for the price but ahead of -- then we want 6%. 6% is the rents of revenue. Will all of the concepts around we're very low price, and we saw how people were addressed. These are different customers. It wasn't a customer fit for us. a few meters down the road. We had beautiful stores and beautiful brands and totally different customers walking in. That's a totally different customer. So 60% of customers in Poland would buy at Shockprice, whereas 30% would buy at Halfprice concept. So we're looking at this in the U.S. and applying it here. We're talking about those stores that should be opened as Halfprice, but we'll open them as Shockprice stores because we'll have a more simple advertising that's price-based at Halfprice, we'll have marketing with fashion and lead brands. And so we showed you a happy ladies that look very nice. Of course, it was with artificial intelligence, but the people were happy. Shockprice will only advertise to 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 [indiscernible] in the smaller towns and communities, are you thinking about rebranding Halfprices into Shockprice?

No. All of our stores are profitable. The worst one generated PLN 1 million, and this is close to my house in [indiscernible]. Everybody is going to worry that Halfprice in early May. So CCC and Halfprice. And then I also built at center in [indiscernible] there's no need to that because [indiscernible] will reach, so we have great brands at Halfprice. Somehow it doesn't fit. I understand see how much traffic there is this great locations. So all of the companies, all of the brands I display, these are successful companies. Let's revisit the map for you to understand, there was the map just on the previous slide. So these are successful companies. New York is 30% EBITDA since a Primark. None of these companies with the exception of [indiscernible]. These are e-commerce stores, [indiscernible] they're not interested in e-commerce. They only have a brick-and-mortar approach. They have low base costs, and our stores are -- don't have a major fit out. So they have a smaller margin, but it's safe for the customer. 60% of the customers are in the Shockprice category, why should we let that go? That's not anything new. That's still within Halfprice. 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. Customers [indiscernible] wants Shockprice whereas in [indiscernible] they want to have Halfprice. So we'll have a new presence in [indiscernible] a beautiful store in somewhere else. And then you have [indiscernible] and you have discounts around, it won't fit. It wouldn't fit if everybody else is trying to sell at base price. [indiscernible] this is one of our more [indiscernible]. Basically, it's a shopping center that was recovered. It's not a [indiscernible] 3,500. It's a beautiful location, and I'll do Halfprice and then shock price then in portfolio, we'll do the Shockprice because they are only discounted stores, discount stores, there are new branded stores there. So if there's going to be an [indiscernible] have you -- so we have a beautiful location in [indiscernible]. So nearly 3,000 square meters. So Halfprice is almost everywhere in the Galleria, Corcos, manufacture in [indiscernible] Halfprice. We've almost completed the expansion in Poland. This was a 5-year process. It's not the case that finally, we -- immediately, we get premises in [indiscernible]. We lost one case to [indiscernible], so a large number of grocery stores, all the reducing space. That's a big opportunity for us, and we can enter the space at very good prices. So the EBITDA in Halfprice is going to be higher than 30%. So it would be hard to discuss with that. Okay. Have we -- can we complete the discussion with Shockprice. I wanted you to hear from me. So in [indiscernible], we're going to start on 24th of August. So I'll send you a film with the opening of that. Shockprice store, we'll do everything to make sure it works. Maybe somebody would drive over and see us there. We're confident of the Halfprice model because it's something that's tested and proven itself. We want to be the king of Halfprice. 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 it has a 45% percentage of licensed brands. I'm just reading the question, and you have a 40% SMU. Will it still be Halfprice? Or will it evolve in the direction of a normal store of normal fall price store? No. The whole world is producing SMUs but at lower cost licenses because the license is set at a lower price point. These are not full price licenses. Well, the same products will be sold in Modivo, the ones that will be produced -- but at first prices. So first prices will Halfprice. People buy in Halfprice sources because the prices are discounted by 50%. Otherwise, we go to first price. We have one more question about Shockprice. Could you state more precisely about this brand. Is this a concept in which you will sell -- what you were able to sell in your full price channels? And then one follow-up question. Could you give an example of the brands that will be available in Shockprice? Yes. Well, 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. So 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 the Shockprice. What brands? What brands? Would it be the same brands that you have in Halfprice? Let's think shock price is more about people's needs. Maybe it's chemical products, household products, tooth brushes,toothpaste. For children, it has to be less expensive. And we'll have a lot of inexpensive athletic gear maybe not high quality, but special collections. Forever 21, where we have a license, [indiscernible] Lucky brands, Sportcraft, there's a large number of American brands from ABG, we have minimum fees but they have that American flare. There's a large number of brands we're signing a lot of contracts inexpensive brands for off-price. We know how to produce. We know at price points we need to have in smaller [indiscernible] and communities Halfprice -- so it's basically it's Halfprice or half price 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 want to sell things for 20 one. So we want to sell things for 70 or 80 Wates if they're branded products. And so things that -- that can be bought inexpensively, then can be sold the Shockprice, we thought this through. And so the most important thing is the head of Halfprice wants to do that because it was her idea. We had 10 stores. We had to close them because we didn't tend to a property. So it's clear that it would be good to have us -- have a second concept now. So lower -- less prestigious shopping malls or parks. We're thinking about the surrounding areas. What's the mix of wind, land towards. If you have since a [indiscernible], then we, as Halfprice, don't fit, let's agree. We're going to have this media expert, there's Rossman, CCC, but we don't fit that environment with Halfprice. We're talking about large shopping malls, then we fit. Like if we were to open half price in Blue City and now we have an offering in [indiscernible], we won't set up a new Halfprice store will open a Shockprice. This is an extreme example, perhaps for [indiscernible]. And then we have a combined question about growing selling area. Are there any new markets we want to penetrate? And the second thing, are we thinking about moving into the East? So 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 is one problem, the rents are EUR 4, but they don't want to pay for fit out. And we have 20% like-for-like performance. So 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. So we just want to add new sales areas. What are plans for the brand -- you have to ask the owner of that brand. We signed the contract. We have a license for that brand. So shoes, bags, so 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 also on its platform, what's important. We have a licensing agreements 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 fees, minimum size or anything like that. So 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 to open 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 what the share price or the valuation. That's not my role. If we're thinking about buying treasury shares, we have the programs in place. And so the management Board has a 2-year period in which you can buy back shares and so treasury stock. And so 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. So it's a track from that perspective. The second thing, of course, there's a financial plan, a development growth plan, which we're pursuing and that would include the points in time where we are. So 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 to 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. And then there was a question about the dividend. It was somehow in the content of the body of that question about dividend. It's clear that we are a company who has a 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. So basically, we'll incorporate all of that when we propose a dividend and will 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. But the expansion is only a small percentage figure. But we have concepts like Modivo e-commerce or Halfprice where these goods can be sold with a more attractive price, minus 40%, minus 50%, then we have higher margins there. So 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 through footwear for single brand stores like [indiscernible]. So we have these networks we're going to sell at Halfprice models. So the products arrived 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, house. Because Worldbox and [indiscernible] are only in Poland. But in the other 16 countries, we can sell in the Halfprice approach. Did everybody understand what I was responding. So with 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 -- 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, and we had that in mind when we were doing the shopping for the Halfprice stores. So 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 2 quarters from today. It's not so much that we thought that up today, but the purchasing from [ Adivo ]. So everything is caught up 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 that we have to have reduced. We have to have long periods to pay for those products in order to be able to sell those merchandise. And so we have in full price, you have a smaller rest shorter -- sorry, a longer turnover period. So with the Halfprice approach, we're able to do things more quickly. So inventory will be much smaller in subsequent quarters. So up until now, everything we've said, we've done CCC is cleaned up, Halfprices moving forward fastly. Modivo Club is elegant solution. The only thing that somehow not doing as well as it should be is Worldbox. So Q3, Q4, we should have positive results there. And then the inventory, so Worldbox and inventory. These are the 2 things that still need to be [indiscernible] we started much earlier. And so in the upcoming quarters, we should see some kickoff, we should see some knock-on effects. Modivo has been cleaned up. And so we have licensed brands. We've improved that inventory. Let me mention here our Q4 model. So we had 11% sales in February. We sold double the amount of winter products. Of course, this limit of the sales of half shows for the spring. The fact that we have 60%, this is a miracle because we had lower prices, had we sold more of this flat shoes, we would have 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 we'll have higher margins for 3 million new pairs of shoes. So we've been able to achieve better results. Well, I've never had 3 million pairs of winter shoes, so few. So basically, the inventory is quite small. So a lot has been done having in mind inventories. As we gradually close up today's meeting, I have 3 questions. Well, 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 for shares in 2030 at 1,000. And what's -- when do you think you're going to be able to ramp up, reach the final stage. Well, everything you've said, I'm not going to take back. This is my major objective. And so the bonus that's big at the end. I think everybody should be happy because that's the motivation of 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 and we talk about the expansion because we're expanding everybody who's doubting whether or not we could achieve the expansion because we opened 75% of the stores in the last 2 months of the period in November, 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 want 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. So if we don't earn too much money, that won't be very realistic, of course. But we're trying to get some additional financing, leasing furniture. So we have a lot of our stores or turnkey stores. And so we have to add some amounts were 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. So 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 on 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. there is saying that you could only sell on full price. Now they're doing special collections for Halfprice. So full diplomacy, great negotiations. So we've achieved success here. That's exactly the case. And the results prove that. Well, these results are not wonderful. For me, like-for-like is the most important and margin. Everything else [indiscernible] is calculating along with the team. But if our like-for-like is good, 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 [indiscernible] trying to bring everything together. So I'm pleased with Modivo for everybody to know because Modivo is really -- we have some pain points in stores aren't earning as much as we would want. Things are maturing less quickly, but the e-commerce has a very good profitability level. That wasn't so obvious a few weeks ago. So we found a model that 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 -- 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 [indiscernible] they're not spending money on performance marketing by have their own customers. It's an additional service with a high margin. e-commerce on third-party brands. So 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, but we have to do it more with greater wisdom. We started that several quarters so we go. And so we will deliver. I know -- we introduced the click and collect. You have to pay for the package. How many stores pickups do we have 30%. Everybody else is paying. So there's no decline. So we have very good results in May and e-commerce. We haven't seen any falloff in sales, but we're doing it more economically. So a customer who comes to our store and picks up something, then it can buy something else. So we have this added value. The same thing, like returns are also paid for. Anything else we take? Maybe a difficult question. I think we should wrap up because the train is going to [indiscernible] and so a friendly company. Well, we have everybody here so but it's going to be able to go, maybe 1 shareholder has a question. I hope that you'll have good results because almost all of my assets are invested in your company. Well, now we feel motivated. Is that a question? I have all of my assets, 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 motivation program, the incentive program, I believe in it. I've made this decision to that. Nothing has happened in the company that would attain us or stop us from achieving our targets, our goals, we're showing that we're delivering -- it's like 2 plus list 4. We will deliver. So the time -- it might take more time. Things were earning money in Q4. So Black Friday or whatever they call it wasn't so successful. Everybody said, that's what they -- 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 concept or tremors. So if the margin is lower in Halfprice or Shockprice. I wouldn't be very profitable. So if margin -- well, falls, the whole markets and 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 put. So we'd like to thank you very much for your attendance and your attention. So thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]