Current report no. 3/2024

Legal basis: Article 17 par. 1 MAR - confidential information

Subject: cancellation of the VRG Capital Group Strategy for 2023-2025

The Board of Directors of VRG S.A., based in Kraków (hereinafter: the "Company"), informs that today it has decided to cancel the Company's Group Strategy for 2023-2025, the adoption of which the Company announced in current report No. 12/2023 of 15 June 2023 (hereinafter: the "Strategy").

The decision to cancel the Strategy was made in connection with the result of the analysis of the possibility of implementing the assumptions adopted in the Strategy concerning: the dynamics of the planned growth of the Group's revenues and the operational sources of their generation, the plans for growth of the stationary network area, the structure of the Group's revenues by individual retail distribution channels, the amount of capital expenditure and the development of the level of the Group's gross margin and operating margin.

The Company's Management Board informs that, as part of the operational activities related to the development of the Group's fashion segment, it will focus on the gradual restoration of its profitability and cost efficiency, and as regards the jewellery segment, it will focus on maintaining the current growth rate.