Current report no. 63/2020

Legal basis: Article 17 sect. 1 of the MAR - Confidential information

Subject: Consolidated sales revenues and estimated sales margin achieved by the VRG S.A. Capital Group in September 2020; update of information on the impact of the effects of the coronavirus on the sales revenues of the VRG S.A. Capital Group in 2020

VRG S.A. joint stock company with its registered office in Cracow (the "Company") informs that the consolidated sales revenues achieved in September 2020 by the Company's Capital Group amounted to approximately PLN 75,2 million and were lower than the revenues achieved in September 2019 by approximately 5,1%.

In cumulative terms, the value of sales revenues generated in the period from January to September 2020 amounted to approximately PLN 621,7 million and was lower by approximately 15,5% than in the corresponding period of the previous year.

At the same time, the Company informs that retail sales revenues generated in September 2020 by the Company's Capital Group in particular segments of operating activity were as follows:

a) Retail sales revenues generated in the clothing segment (Vistula, Wólczanka, Deni Cler, Bytom brands) amounted to PLN 43,7 million and were lower than the revenues generated in September 2019 by about 9,9 %. Cumulatively, the value of sales revenues generated in the period from January to September 2020 in this segment amounted to approximately PLN 367,2  million  and was lower by approximately 20,1% than in the corresponding period of the previous year.

b) Retail sales revenues generated in the jewellery segment (W.KRUK brand) - approx. PLN 29,7  million and were higher than the revenues achieved in September 2019 by approximately 7,4%.  Cumulatively, the value of sales revenues generated in the period from January to September 2020 in this segment amounted to approximately PLN 235,8 million and was lower by approximately 5,1% than in the corresponding period of the previous year.

VRG S.A. informs that the consolidated sales margin achieved in September 2020 by the Capital Group of the Company amounted to 51,9% and was lower than the margin achieved in  September 2019 by about 1,1 percentage points. Cumulatively, the consolidated margin on sales in the period from January to September 2020 amounted to approximately 48,2% and was lower by 3,1 percentage point than the margin achieved in the analogous period of last year.

The Company informs that the total retail sales area of the Capital Group at the end of  September 2020 amounted to 52,6 thousand m2 and was lower by 2.2% than retail space in September 2019.