BUSINESS PROFILE

CCC S.A. is the largest footwear retailer in Central Europe and the biggest footwear
manufacturer in Europe. At the end of 2015 the CCC Group comprises 773
stores in 16 countries, with total sales area of 371,5 thousand sqm. The
average size of CCC store is 600 sqm. Number of employees in CCC S.A. in Poland
amounts to 6 000, and in whole CCC Group over 10 000. It manufactures and sells
various models shoes, which include sport footwear, female, children and
male shoes. CCC also provides accessories and garments. The company
markets its products under the brands of Lasocki, Jennifer & Jennifer, Nylon
Red, Clara Barson, Cesare Cave and Vapiano, among others.
Currently, sales are being conducted in 16 countries. CCC sales network includes
own stores in Poland, Czech Republic, Slovakia, Hungary, Austria,
Slovenia, Croatia, Turkey, Germany, Bulgaria and franchise stores in
Romania, Russia, Latvia, Lithuania, Ukraine and Kazakhstan. CCC is
headquartered in Polkowice, Poland. It sells products through its distribution
channels, such as CCC stores, Boti stores and QUAZI boutiques.
During the year 2015, CCC sells over 28 million pairs of shoes. Within one year,
the company offers nearly five thousand models of shoes. The company owns,
in total, more than 67 registered brands of goods among them the most
popular are Lasocki, brand of comfortable, leather footwear and Sprandi,
brand of sports footwear.

THE MARKET POSITION OF CCC

CCC share in the extremely fragmented retail footwear market is estimated at
around 19%. The target market of CCC Group is a widely understood medium
segment of a domestic customer. In terms of retail sales points placed in this
market area, CCC doubles the offer of the largest competitors (Deichmann).
Still it is the widest segment of the domestic footwear market, calculated at over
130 million pairs of shoes per year. Stores are located in large shopping centers
or next to important communication routes, in prestigious city venues. Besides CEE
region, recently CCC brand has appeared also on Western Europe markets in
Germany and Austria.

STRUCTURE OF SUPPLIES Raw Material.

Sources of supply for CCC S.A. are domestic suppliers, its own factory and
foreign manufacturers. Shoes, predominantly imported from China come from
dozens of manufacturers, with the main part being realized by a single entity acting
as the export-import agency. Depending on economic conditions, the Company is
able to change quickly foreign sources of supply.

Purchase structure of value in 4Q 2015

31%

Import
60%

9%

Other Domestic
Supplies
Own Productions

SALES STRUCTURE
The largest sales of CCC group are noticed in Poland. Wherein sales in
other countries constituted increasing share in a whole group results. In sales
structure of parent entity of CCC group, both on value and quantity
women shoes dominate.

LOGISTICS
The company's development, growth in demand for its products, the growing
demands on performance of distribution, contributed to realization of the largest, in
the history of the company, investment in the construction of Logistics Center
located in the Legnica Special Economic Zone (LSSE) in Polkowice.
Currently the Logistics Center is a modern complex of large-size buildings
with a Total area of 82,3 thousand sqm. The most important part of
Logistics Center is automated high-bay mini-load warehouse, with a total
area of 23 064 sqm, which can accommodate minimum 5 million pairs of
shoes, that are over 500 000 cartons of different dimensions. This is the
largest building of its type in Central Europe. The investment of 40
percent was financed from EU funds through the program of the
Innovative Economy.
Since 2016, after the completion of enlargement, Logistics Center has had a
distribution capacity of approx. 1.1 million pairs of shoes within two
working shifts. Moreover sent assortment appear in points of sales in Poland,
Germany, Austria, Hungary, Czech Republic and Slovakia next working day before
the arrival of customers of CCC stores.
CCC STRATEGY
CCC strategy set of unique competences building competitive advantages on the
European footwear retail market
a. Fast Fashion-Providing CCC customers with thousands of different models
during one season. Short product lines, variety of colors and styles guarantee
high number of visitors and frequency of purchases.
b. Price to Quality Ratio -CCC price offer is very attractive, both for leather
and synthetic shoes.
c. Private labels in traditional retail and multiband online-CCC sells in
traditional stores only private labels produced either in own factory in Poland
or outsourced in Far East. Online channel, via eobuwie.pl platform, offers tens
of thousands of models from worlds most renowned brands.
d. Key resources:
1. logistics state-of-the-art warehouse and distribution facilities
2. Production in Poland and abroad;
3. Strong balance sheet;
4. Unique e-commerce competences;
5. Know-how in design and collection, retail management, marketing and HR.

CCC IN FIGURES