Lpp Sa Uns/Adr

To summarize Q4 of 2025, but also the entire year 2025, we will also talk about our development strategy that we had a chance to present to you exactly a year ago. We will explain where we are in terms of the implementation of the strategy and how it translates onto our results. This is what our meeting will be about. Of course, the entire conference today will end with a Q&A session. And since we are holding this meeting in a hybrid mode, as we also have online participants, the entire session is going to be divided into two parts so that all of you stand the same chance to ask your question. I will tell you more about the details of the Q&A session, but for now, an important piece of announcement for our online participants. Ladies and gentlemen, you can ask your questions using the chat box that should already be visible on your screens. If this is not the case, please click. There is a tab questions that is going to be active throughout the conference, so please I encourage you to be active and to use it. There is yet another piece of housekeeping since there is Marek Piechocki and Marcin Piechocki who very much care about their privacy. There is a kind request for those of you who are present here in the room not to register the meeting, not to take pictures of the gentlemen. We will be very grateful for you not doing that. And now the time has come to present our speakers. Marek Piechocki. Chairman of the Board. Marcin Bojko, Deputy Chairman for Financial Affairs. Marcin Piechocki, Deputy Chairman of the Board. And Mikołaj Wesdecki, Deputy Chairman. We also have Magdalena Kopaczewska, Investor Relations Director, and the meeting will be moderated for... She will moderate the Q&A session for you. Let's move on to the session proper. I know that most of you have been following our business activity throughout 2025, but I guess it will do no harm to remind you of the most important events of that period. Let's see a short video together. Six new markets, over 1,000 new open stores, six-fold growth of our robotic fleet and new logistic facilities, plus new markets where our mobile operations were launched. So, quite a lot. How has all that translated onto the results? This is what you are going to hear from Marek Piechocki, Chairman of the Board. Good morning ladies and gentlemen, welcome. I believe that we are very happy about how successful 2025 was. When we step back and think towards what this year brought about, it wasn't the easiest one for us or for the financial markets, at least for us. It started from the Liberation Day. which probably wasn't pleasant for you as investors or for us as the managing party because that raises a lot of uncertainty. That is mid-year. It affected us only. I mean, I'm talking about the warehouses in Romania. which were burned. This is quite a challenge that our teams, our logistic and IT teams handled really smoothly. Practically speaking, the customers have not even noticed that the supplies from Romania were redirected to Poland and it did not affect them at all. It didn't have any major impact on our financial results. But among all these difficult moments, when you take a look at the results, we opened over 1,000 stores, which is not easy. You need to explore over 1500 locations in order to be able to approve of the choices and open over 1000 stores. Think of how many architectural teams and how many teams responsible for construction of those stores participated in this endeavour. This is a massive challenge. We increased the number of stores from 2,700 to 3,700 in order to do that well. The EU needs a commitment and effort of many managers, the entire organisation and numerous employees. in the LPP group. For us, that was the highest growth we've experienced. On top of that, if you add six markets with nearly 60 million consumers, you need to realize that, well, it sounds so easy, six new markets, when you see it written down. But again, you need to make decisions on whether you have your own accounting or you decide to outsource it to begin with. You need to find a country manager, leasing teams, So the easy-sounding six new markets actually mark a lot of effort. It's been the first time that we opened so many new markets over a single year. To this, again, we have $6.2 billion in investments, out of which $1.3 billion was invested in logistics, automation, and robotics. Then, again, So let me emphasize that it takes tens of engineers, people launching these systems, who approve them, who consider whether this or that system should be selected for that to be most suitable. Again, that's a considerable challenge, and I'm really proud of the entire organization, not just of the board, but of all the managers, and it would be all the people who contributed to that, not only the managers, because we really had a lot of work. You know, these endeavors that contribute to building our future, we were able to manage it smoothly, which is reflected in the results that you've probably seen, but that's our fault, and that's not easy. E-commerce grew by nearly 20%. It rarely happens in European markets that somebody grows by 6 billion 400 million in revenue in e-commerce. That's a lot. Now, Consider this. We do all that preserving substantial financial stability. 1.1, that's our net debt to EBITDA. After two years of working on the financing, consortium banking, we do have the financing. You know well that before the banks give loans, they scrutinize the applying institution, organization really closely. And it's been the first time in my record, I'm probably one of the oldest people in this room, that we had over-subscription banks and Ecoshock wanted to give us 20 billion. We went for 13.5. rarely does it happen that you need to introduce a limitation on how much of a loan you take from this or that bank so that's another source of our satisfaction now we're in this financial we wish to propose a dividend per share in 2026 of 900 zlotys which is 36% more year on year we want to offer you this during the General Assembly we are very happy that we are able to share our profit with you all that has been done with a lot of attention paid to decreasing the pace of the growth of our costs. We made certain we spent every penny really carefully, considering twice whether the spending is really necessary. That is what gives us a 20% of growth, but around 35-36% growth of EBIT or the net of growth. That's what makes me proud. As an organization, on the one hand, we were able to develop and grow really dynamically, keep investing into further years of development that lie ahead, and at the same time, we did that reasonably enough for the profit to allow us further investments and sharing of the profit with our shareholders. Now, how did we make it in our greatest engine? This is what you are going to learn about from Marcin Piechowski. Good morning, ladies and gentlemen. Ladies and gentlemen, 2025 was a record year for us, not only in terms of revenue or profit, but also in terms of the scale of opening new stores. We set ambitious goals, but over 900 stores in 12 months is 60% more than last year. That's the result that we are really very proud of. There were weeks in which we opened over 50 stores, and on a single Saturday, we broke the record and we opened over 25 stores, just on a single day. There are people standing behind these digits. Today, in Sinsei, We manage the network of nearly 2,500 stores, and we do that on 25 markets. But what do we do that for? In order to reach out with our concept even further, to be even closer to the customer at their hands' reach physically, but also in the virtual reality. The numbers itself and the volume is not satisfying enough. We care for the quality, so for the profitability of our network. Average EBITDA on the stores in the net is 30%, and 98% of the stores have positive EBITDA contribution. These are not standard numbers in our industry. This is the model that... works and we scale up the format that is profitable at the level of the stores. The other strong pillar that we rely on is e-commerce and even today in the value of value for money segment presence in this channel is not obvious. Competitors still have certain doubts about that but we reached 32 million of total downloads of our application which we are particularly proud of. And we did that. That's 45 years, year on year, compared to a very strong basis. When we compare ourselves to Chinese retailers present only online, we have nothing to be ashamed of. Our application today is more popular than Shein or Zalando. And for us, what matters is sales. Since they share, since these applications share in sales, that means that our customers love our application and they are really loyal to it and to us. I'm an engineer, a chronic engineer. and I've been observing technical trends with curiosity, but also taking a pragmatic approach. Every time I hear about different technologies, I ask myself a question whether a given solution really contributes real value to our business. And if the answer is positive, then we simply go for it. In LPP, for example, AI is used already today in designing. We are proud that our graphic designers We use AI when designing prints, search and sell over. We use it in logistics, in back office, in sales and other areas. This is a nice example where we create virtual photo sessions. This is the technical photo on a technical model on the left hand side. We don't need to send a person to a luxury yacht to the Mediterranean Sea. We can use AI to get what you can see on the right-hand side. So again, you don't need to be Sherlock Holmes to guess that the right-hand side photo sells better, but the one on the left-hand side actually cuts costs. As for virtual sessions, we generate automatic images of details, buttons, pockets, fabrics, or we limit the participation of small children in the sessions because it is not a very flexible solution. As for the virtual assistant creating the style and design, suggestions for the customers who, for example, know what occasion they are looking for apparel for, but they don't know what to go for, ready outfits are suggested by means of using this set. We also have a virtual try-on in the Sensei app for women collection, but we are broadening it, adding new groups. The customer uploads her photo and she can see the product on herself. So we will see. We are using AI. We'll keep using it as it is really supportive to our business. And we do that either to limit costs or to increase the sales.

This is not the end of what we are doing. We are also using advanced technology in the logistics. We have three warehouses in Bydgoszcz, in Romania and in Jesionka. As Monika said, in 25 we've increased our fleet six times. They help us optimally arrange our goods and at the end the orders. fulfilled much faster with lower costs we have significant tool to support the expansion of the store chain based on e-learning machines these managers are facilitating because they select a location they assess the sales for a particular location. They analyze demographics, competition. They do not replace people, but the manager is facilitated with taking a better decision. We are operating in seven countries. And the last one, the last technological element I want to mention is a contact center, 35 languages. We can scale servicing and we don't need to develop our teams. Ladies and gentlemen, for many years we consistently talk about being fashion tech and this is what we focus on for the future. Now I pass the floor to Marcin. He is going to present financial results. Thank you. Good morning one more time. Marek was talking about the final results, very attractive PR results. Marcin talked about technology and various solutions. So now we talk about money. It's a pleasant topic to talk to. Let's focus on like-for-like store sales, those that are with us for 12 months. The dynamics of like-for-likes is not including the VAT picture. In 25, it was a stabilization market in Sensei and in other brands. How do we understand it? In Reserved, the second largest brand, it was a very positive normalization process. In 24, it was a bit of experimentation with our apparel. In the second half of 24, we've learned The lesson with improved results and in 25 and the first quarter is a continuation of this positive standard. Normalization in Sensei, our largest brand these days, was dropping a bit. When you look at 24, 20%, 11%, and then 1.5%, So it was a very demanding base. So this normalization was following, as you can see here on the slide, minus one in Sensei over 5% in other brands. When you look at it from two-year average, Sensei, this is still 4.1%. percent increase and 3.3 percent in other brands. So let's look at it this way. So season to season and quarter to quarter, it can show a different picture. We had some challenges in Sensei, so the dynamics is definitely much different and further from what we can see. But in Reserved, you saw what we can do and what the teams are capable of. When we look at our stores and new stores opened and e-commerce, in the first quarter, we grew by 16%, so double-digit increase. We are very happy about it. But yet again, in the fourth quarter... It was a certain May-related season. May was very cold, so the dynamic was low. The fourth quarter started not really very good. The beginning of November was difficult. The clients were waiting for Black Friday. Then in the second half... It was better. Till Christmas it was relatively warm. E-commerce dropped a bit. Before New Year's Eve the temperature dropped again. And after Christmas, then in January, it was really, really very cold, so the traffic in the stores dropped, but then e-commerce went up by 30%. So this is what we could see. We were operating with the margins, so we sold out our winter collection with good margin. So this trend continued in February. So the fourth quarter was as it was. And let's look at the entire year, 19% of growth in 21 in constant currencies. So we are very happy about such results. Moving on towards PLN, we have the gross margin. What I said is we've managed with the margin, we've managed the margin very well in the last quarter of 24. The winter helped us with selling out our winter collection. Those of you who are with us on a regular basis, you remember that we started with a larger stock in Sensei. Our appetite was much larger. We had to work with that, so we take turnover into consideration that resulted in a lower margin in Sensei, but we secured this good our margin, 3.65, so you can see that in numbers in the third quarter and in the fourth does a seasonal drop in our margin. A third quarter is always the best as for the sales and margin, but it's still plus two points year on year, so a very good result. And then costs. After revenue and margin, the cost, this is the third leverage affecting the result in our sector. We don't have Sławek with us today. We are here representing the entire management board. The cost, this is what we control. We are very happy about it. The ball is in our corner here as in 24 we were building the scale to open new stores. It's not easy to open 1000 new stores. We had to build capabilities to do it in logistics and in our design teams. And you could see that in costs. And in 25 we focused on efficiency. And the numbers speak for themselves. The biggest cost group disasters with the sale growing 19%. The costs in total grew by 70%. Then logistics, only 14%. That was the growth, so slower than the revenue. And the biggest impact came from investment. This is what Marcin was talking about. And back office, 11% of growth, twice slower than the revenue. And this is the direction we want to continue apart from logistics. where we can see the technological impact in logistics, back-office and marketing. This is hard work. And the cost of stores, we don't have like one big initiative that can limit the cost. This is just hard work of the entire organization and all of the teams that are measuring it, streamlining the processes. spending, distributing the parcels online, so bringing that closer to the cash point or closer to the try-on section to optimize the processes. So this is what we are doing actually in the stores. When we are going to combine these three leverages, the sales, margin and costs, at the end of the fourth quarter, we have significant growth. I will focus on the numbers below the columns here. Three percentage points for EBITDA, for EBIT, almost 3%, and net profit also 3%. This is what we focus on. Are we going to deliver year over year? I'm looking at Marek. This is our goal. Of course, challenges are ahead of us, but we want to deliver everything. What you see here, this is what Marek was talking already about. We did a significant leap. We can see that it might be difficult to repeat, but this is our goal. This is what we want to achieve. And from the strategic point of view, long-term strategy, we want to be consistent in improving profitability, whether these are 3 percentage points or 1.3 percentage points. This is our goal. This is what we want to achieve in the future. So this is the financial part and it's not a boring part but we also have operational KPIs. This slide is not giving you information attractively like these investments but At the very beginning we said that we perhaps had too large a stock. We need to order collections in advance. And as you can see at the end of the fourth quarter, or at the end of the first one that was 4.8 billion and here we have similar amount so we grew 25% in our network and we have the same volume of stock. It was over, we had too much of the inventory. This is also what we've communicated, that two to three quarters are necessary to manage that. Marek was talking about our flexibility and after especially our fire in Romania and our work with over inventories and here we have 1.5 thousand as for the stores is this an optimum? Is this a long-term average? I believe that 1.6, 1.7, that would be more comfortable for us. We can see that in some departments we had too much of the stock, so this is another slide we are very proud of. From five to six 5.2 to 4.6 this translates into the working capital so we still have resources as for our liabilities Marek was talking about our record financing with reverse factoring, so we can focus on the purchase of collections, quality collections, so this flow and liquidity is good, and this translates into our comfort and record investments. 3.2 billion in 2025, I believe in Q&A we will refer back to it. $3 billion went to logistics. This was a record year, and in profits for every level, every other year is going to be a record-breaking. In CAPEX, this was a record year, and it will not be repeated soon. $2.6 billion. That is the money that we are going to keep for future investments. So we've built the volume in investments. Now we will focus on robotization and the capex is going to be much lower.

And what makes me very happy, I'm not sure if the other members of the board are equally happy, but I'm happy as a financial, as a CFO, I'm happy that we grow fast in a profitable way and we grow safely. That is what makes me proud. EBITDA shows that we can get indebted even more, but we do not have such plans, because take the war in Ukraine, or be it COVID, it shows that our conservative approach to management makes sense. Gentlemen know it well, that we can defend ourselves amidst all these crises. So on average against the backdrop of the industry we handled it pretty well and we wish to continue. We have cash in store, we can invest and we will do that reasonably. That was the summary of 2025. So we grew well in sales in a profitable way. And now we are entering 2026 with a nice foundation. We have a good start, a good entry into the year. How about the present year in detail? Because that's the end of March, so two months into this year. And a traditional trading update. Sales and growth, these are two most important things. February, in terms of sales, let me make it clear, started in a demanding way. The numbers speak for themselves. In total, we grew only by 10%. Online was even smaller year to year, and the likes were negative. And now when we take a look at the first part of the table, it is not an impressive result, but you need to take my word and believe that from the margin point of view, February was maybe not extraordinary, but it was really enormously profitable. There was a very strong month with very low temperatures. in Q4 we were ahead of our stock from autumn and winter and in February we continued on that, we didn't have to introduce a sales bargain, so that is something that helped us work against the the mass, and that explains our sales at the end of February, when the temperatures grew, the likes returned to their norm, they are still rebouncing, we still have Easter ahead, and we introduced further intakes of our collections, so the plus 18 is a decent level, but you can also see on my last year, maybe I did not mention that, talking about the costs, our costs in 25 In terms of the value of money, we're at the same level as in 2024. So the share of performance marketing in 2024 was 9%, in 2025, 8%. So that improved our profitability, but it also shows that we have a lot of space. So if we want... to reach for new customers, we are likely to do so. Mikołaj is with us, who is not at our quarterly meetings, but he is responsible for our e-commerce, so we know what we do, we enjoy this comfortable situation, we have a good tool. When financing big capexes, we have a space as far as costs are concerned, and we can unfreeze it, but we can see that we are heading in the right direction. And the other part that is growth, comparable, year to year, 120 new stores in the first quarter, around 115 Sensei's, the other ones are new brands, and in the first quarter around 350, somewhat lower than in the previous year, but Sensei will be comparable as far as other brands, we are planning a lower number of openings. Looking at the overall targets, we showed you this guidance in December last year already, when we talked about the third quarter, and it actually remains unchanged largely, and that's good because it means that our guidance was set right, apart from the gross profit margin. I talked to some of you when we talked about guidance with a strong dollar that we contracted for the first half of the year, our guidance margin of 54 to 54 and a half is not conservative actually and yes we waited for the beginning of the season we saw how the collection was selling this margin also takes into account the market havoc resulting from the war in Iran so you can see that the dollar grew to 370 And this guidance takes that into account. So for us, it's also, I guess, it's positive news. The dilution of margin is not to be expected for the year, despite the challenging circumstances. And this natural increase of gross margin cascades downwards. So also, EBITDA margin and net profit margin go one percentage up. So I guess that's a positive piece of news for us. We do... What we should be doing, working on our likes, but the first half of the year, given how well safeguarded we are, is very promising in terms of the margin. And now summarizing 2025, it was a year of dynamic profit growth, but also double digit growth in sales. We helped this process by means of a cost discipline. This is what we have in our hands and that's our long term trend. We've been working with back office teams on efficiency. Everybody has their KPIs as Marcin showed. We use AI not only in manufacturing but we also try to rely on it. in back office, be it legal team or finance team, and I agree with Marcin, we take a pragmatic approach, this is not the one and only answer, and tapping our potential, and now we are going to show 38% of cost to revenue, unless we do such sales, but we want to systematically improve moving on, because in the end of the day, growth in costs is slower than sales, that will translate onto also the value for shareholders. So we wish to have more years like 2025 to come in the future. But looking at a broader perspective, I give the floor back to Marek. I guess he will be the best person to show us what it looks like. And I'm going to stay here with you on stage. I want to show you some long-term prospects now, but before I move on to that, yes, I'll return to the results that Marcin showed you, those concerning the first quarter. I guess it's been the first time in our record. As the winter, well, for the first time for 10 or more years, it was the first time that temperatures that we noted fell below minus 11 and 15 and they were not just a single drop. time occurrence but they lasted four to three weeks and we really experienced low temperatures of this winter that is something that made it somewhat harder to get more customers to the stores because obviously they were more eager to move to the online channel but it was for the first time that customers unfortunately were forced to buy because when a mother with a child comes into the store and she wishes to buy gloves and maybe she has to buy gloves it doesn't matter to her if a discount is by 10, 20 or 50 percent and in January and February we had bargains pretty big ones because when spring comes hardly anybody wishes to buy the AW collection but as Marcin mentioned in February Our financial result, the internal one, which we keep tracking, the profit was much higher than last year. And that was caused not by us having negative LFLs, but the margin was by 8 percentage points higher. And of course, this is something that spreads onto March and so on. But I just want to draw your attention that negative LFLs were offset by the higher difference concerning the margin and that resulted from the fact that we didn't have so many discounts and we sold many pieces at a lower bargain than than necessary because all the customers were forced to buy. Who would want to buy a winter jacket or gloves in February or March? Well, this year the weather made our customers go for these choices. And I would like to share a reflection or a curve with you, a diagram that concerns our share prices over the last 10 years. we don't want to go further back to the beginnings of our being listed but those 10 years is probably a perspective that can tell you something about how the company has been operating and I'm particularly proud maybe not so much of the shape of this diagram we as a family also invest and we also put our money from the dividends into certain investments, hoping for the biggest possible return on investments. But when we look at these returns, pay attention to the fact that the total shareholder return on cargo for the last 10 years was 15%. Then it doesn't seem to be a bad figure. You as investors, you are all here. in order to listen about how the company keeps developing what the company is doing where it is investing where it wishes to be present what operational activities it has so from quarter to quarter you have certain doubts whether we will deliver or not lfl's this way that way what kind of future lies ahead but 10 years is a lot of quarters that's 40 quarters And when you try to draw an average from that, well, I can tell you that as an investor, I would wish these investments that my children implement also brought such a return. I'm not going to mention the period of three or four years, because those figures, 24, 28, are striking, but still, when you look at a longer time perspective, I believe it's not bad, and those who have faith in us, of course, among our investors, we have also those who've been with us ever since our beginnings, and they bought our shares for 48 slots. There are such investors among us but this perspective on this perspective of 10 years is not a bad one it proves that it was worthwhile sticking to LPP those who had faith in us also amidst difficult times for example in the war in Ukraine broke out or when we were accused of things that we were not guilty of you know what I'm talking about I'm talking about Hindenburg, the infamous Hindenburg. And I think that those who stay with us do not regret it. And I believe that there is still a bright future ahead and further years of dynamic growth. And we hope to keep you satisfied with those growths because we are here to multiply the capital. Thank you very much. Ladies and gentlemen, the time has come. for us to listen to what you have to say, so let us move on to our Q&A session. I would like to invite J.P. Hodgkin to join us here on stage, and I will tell you how we are going to go through the session. First, we will hear out the questions from those of you who are here in the room. If you wish to ask a question, please raise your hand, and please wait until somebody from my team approaches you with a microphone. We care very much for that, because we have some of the participants listening to us online, and it is only via the microphone that we can provide the signal for the online transmission. And please introduce yourself and tell us which organization you represent. In the second part, Magda Kopaczewska We'll read out the questions posed via chat, which probably are still being posed this way, and we will make sure that both groups will have the same amount of time for your questions to be addressed. And now we will eagerly take the first question from the floor. Good morning. I would like to ask you what happens in the markets where you buy. So China, Bangladesh, Pakistan, what can we expect? What can we expect of markets that you sell to in the light of those two wars? I mean the southern markets first and foremost. How about the demand and what's the greatest challenge when you look at your competitors as well? Thank you very much. Okay, my microphone is active. In terms of the situation concerning our purchases, we are in touch with our suppliers at all times. In terms of China, they announced 1-2% of increases. That's the beginning of our discussion, but that's the scale. Given what happens with oil, slightly higher one-digit increases Rises will concern polyester products, but again, we are at the beginning of the talks, and that's just the feedback straight from the market that I'm sharing with you now. So that's in terms of what we buy. This is also an element, another element of purchases. Supply times, delivery times are not affected maybe slightly in India, Pakistan, but we are talking about two to four days that doesn't really affect the accessibility. We do not use aviation, so that's 0.8% in our mix. The airborne transport grew two-fold, but it is of no impact on us. Everything that is a derivative of oil, so the cost of transportation, this is something that we will have to struggle against, but the sourcing itself doesn't really offer us any drastic pieces of information. What was the other part of the question, Sylvia, if you could remind me? The remaining markets, the southern markets. Well, no. Again, Following the week February, actually everything else rebounced, including Ukraine. Maybe Romania is lagging behind slightly, looking at the March likes versus the February ones. But across the board, so to speak, all the markets are really rising. And as for the competitors, that was the last part of your question. Maybe Marek and Marcin can support me. How about competitors? Looking at the Chinese platforms or at the sales in brick and mortar, so in the stores, well, we cannot see any fundamental changes. I believe that everybody in the market is approaching Central Europe cautiously, be it Slovakia, Czechia or Hungary. I guess that we've talked about that already, that we are more selective about our locations. We wouldn't like to exclude our investments already now or slow them down, but this is the third, fourth quarter where there is a macroeconomic slowdown. We did not open any store out of three or four that would meet our expectations. They are so profitable but below our target. So here probably we would be slowing it down, but there is no fundamental competition impact, competitors' impact. Okay, we'll take the next question now. Good morning. Let me congratulate you on the results. Globally, few companies at this point can boast such a performance. So kudos to you. As for the question... Well, certainly, if you could tell us about robotics, because you've made certain investments into that. You had a record year in terms of your spendings on robotization. To what extent are these activities visible? How have they translated into your cost efficiency? And where are you? How advanced are you in introducing robotics? That's my first question, but maybe I'll ask... Okay, I'll wait for you to answer before I ask some other questions. I returned from Romania yesterday from the distribution center that we recreated after it burned down. And further robots were installed there that support us. This is where we expect greatest savings. in terms of the percentage drop of costs versus sales, because we simply think of what percentage of costs we have versus sales, and this is where we see the greatest advantages. Already last year, we can say in the third and fourth quarter, we could see how we profited. The Automized Center in Bydgoszcz with robots was launched mid-year, And it brought its result towards the end of Q3, beginning of Q4, the one in Romania. Well, we can say that at this point, the one that I saw launched its operations in October. They have the so-called wrap-up period. So the period when they're getting to complete efficiency, and we can see that owing to the solutions introduced, we can enjoy nearly by 50% greater shipping, they call it throughput, so how many pieces actually they pass through them per one hour, so it's around 75%. So that means that we have considerable reductions of employment costs. So we have the same level of employment at the same time increasing the pace and the number of units shipped. So you'll see we'll have an investors' day that we will invite many of you to come. most eagerly everybody that is with us here. We want you to pay a visit to Bydgoszcz where everything is highly automated and roboticized with high share of AI activity and you will see the progress and the savings. that we auto it. These are one of the greatest sources of savings that we can generate as a company, because actually in the stores a certain level has to be preserved. We try We're having self-checkouts, so in Cincy, for example, this solution, 75% of transactions, card transactions, are handled by customers themselves using those checkouts, but the logistics actually offers us much, much more in terms of the possibilities in e-commerce. There's the cost of 20% versus sales And this is where there is a lot of scope. It can go down from 20 to 15. Well, this is what we are hoping for. But this is only owing to even more advanced robotic solutions being introduced. And we've been investing into that. At the end of this year, we are going to open up another warehouse that will be even more automized than those that we've opened so far. The pace of introducing robotics... into e-commerce is so enormous that what we were thrilled by and what we have in Bidgosh believing it to be outstanding, well, it is, but it is crazy. Anyhow, another distribution center, the one that will open this year, will be even more phenomenal, because instead of a pile of small robots that you can see operating and, well, you need to just be careful for them not to get into a traffic jam and not to collide, now we'll have robots actually climbing up on themselves on the shelves to put... There's stocks on the shelves. And this is what we'll keep investing in. And you're asking us whether we see the benefits and profits. We can see them already because what has happened in Q4 is not just the savings based on cutting down on marketing costs. Logistics has a considerable share in it. In this one point of efficiency that you saw in Martin's slide, there is a huge share of logistics, and we believe that in consecutive quarters, the profits and benefits will be even greater. Those automatized centers we launched towards the end of Q3, beginning of Q4, this year they are only beginning to climb up to this level of efficiency that we wish them to arrive at.