Conversation with the Lord Jan Bartkowski – President of the Management Board of Grupa MND; questions asks: Robert Manada.

Robert Manada (RM): Mr. John, how was 2023 in the MND Group?

Jan Bartkowski (JB): The year 2023 was very intense and busy for the Company. We focused on implementing several parallel investment projects with a total value of approximately PLN 20 million. This ambitious undertaking required a lot of work and dedication, and we invested significant financial resources. Everything worked out perfectly, but it was a great challenge for the entire team. I would like to thank all employees and partners of the company for their Patience and Commitment. Without you, the success of the entire project would be impossible!

RM: What were the main areas to which you directed your investments?

JB: Our investments covered various areas, starting with new services and innovative solutions, such as production in immersive technologies and the new Grupa MND offer related to the creation of immersive product presentation databases in e-commerce. In addition, we focused on changes in the software, which is the heart and brain of the company, as well as on the expansion of warehouses and the implementation of automatic and robotic technologies. Some of the projects were financed by grants, so we had to face challenges resulting from the grant programs and indicators of individual projects. At this point, I would like to bow and thank our Partners (I hope we can talk about each other this way) from the Intermediate Institutions. Without your professional, substantive approach it would be very difficult. We would like to thank all officials involved in supervising the projects, we would like to thank PARP, ARP and BGK. You were great, although demanding. We had to "learn" design work, and with your help we managed to do it.

RM: What challenges did the implementation of these projects bring?

JB: Integrating new elements into a functional whole was associated with a lot of stress. Since the investments concerned the heart of the company - our warehouse and logistics capabilities, we had to act in such a way as to minimize difficulties and losses related to the investment process. Although this affected our turnover, we believe that it was a necessary cost that enabled us to thrive in the competitive e-commerce market. Now we can sail into calmer waters. However, we no longer swim at the shore - we boldly head towards the horizon, we steer the ocean of global e-commerce. And this is just the beginning!

RM: What specific changes have occurred in Grupa MND due to these investments?

JB: We have implemented innovative technologies, expanded new offer segments and invested in modern logistics solutions. New warehouses were built. We have implemented our own, innovative concept of storage and logistics process, robots are already working in our warehouses, which should significantly increase efficiency. Energy is provided by renewable energy sources. Although the process was difficult, we are currently enjoying noticeable, dynamic improvement in turnover, customer service parameters and the efficiency of our processes. It will be difficult for traditional competitors to chase us, they will have a hard time ahead of them, and we are already on the straight line.

RM: What are the Company's goals after completing these investments?

JB: Our goal is not only to stay on the market, but to increase turnover, enter new markets - also geographical ones - and continue this race towards modernity. When I talk about modernity, I mean a fully automated and robotic company that successfully uses user-friendly artificial intelligence algorithms. We have a vision of an ecologically clean and transparent company that is customer-friendly - regardless of their origin, language and even physical limitations. We want to make a qualitative and quantitative leap forward, achieving the highest level of competitiveness on the e-commerce market.

RM: Do you mean the Polish market?

JB: Oh no, we don't limit ourselves, in fact! – we are convinced that new technologies and the quality we strive for will allow us to expand abroad. It's already happening. We are active on the markets of Western Europe, especially German-speaking ones and Great Britain, our products are already in the hands of OUR customers in the Czech Republic, Romania, Hungary, Lithuania and other countries in the region. This is no coincidence - we have a well-thought-out foreign expansion strategy. Our main goal and dream for 2024 is Ukraine, we see and understand the potential of this market. We want Ukraine to become perhaps our "second leg" in e-commerce. Please keep your fingers crossed for us, this is another great challenge.

RM: In what market segments do you place your hopes?

JB: As part of e-commerce, we will continue to invest heavily in the development of our traditional "workhorses" - drugstores, supplements, cosmetics, dermocosmetics. We strongly support the development of the household chemicals segment and we are strong in this field, we achieve a strong position. We are also interested in other corners of the market: pet food, books and others. However, what we intend to develop and focus on next year is the pharmaceutical segment - online pharmacy. This is one of the main strategic highlights of our vision, we see enormous opportunities and potential. Our company has unique advantages in this field, thanks to which we intend to attract the largest and strongest companies to cooperate and conquer this market. Moreover, we are entering unexplored areas of producing immersive product presentations. This is an innovation that will not only be a key competitive advantage for our online sales, but will also revolutionize Polish e-commerce by making content in 3D, 30 degrees and VR available to a wide group of recipients. When building its offer, the Company places great emphasis on reliable, up-to-date product descriptions. The vision of the shareholders and the Management Board is to provide the customer with the fullest possible opportunity to become familiar with the offered product, so that the customer "feels like in a store" and has full knowledge about the offered product. This assumes the possibility of viewing and virtually checking the product. Hence the concept of immersive presentations. We will show our capabilities soon. To get to this point, however, we had to prepare the company structure - which we managed to do thanks to the ambitious investments I mentioned earlier.

RM: You mentioned the company's unique advantages on the pharmacy market?

JB: Yes, but please allow us to leave this thread for our potential partners. Business likes silence. And so I boast beyond measure, but that's probably what the Lord expected from me.

RM: What does the future hold for the MND Group?

JB: Bright and beautiful, I hope. We are working on a new development strategy. The e-commerce market is full of challenges, challenges and ambitions, and requires a fresh, bold approach from us. This is no longer a market for garage companies, behind the simple online interface that the customer sees, there is already huge money, the latest technologies, innovative software and powerful logistics centers. We've done our homework, so we can dream and plan. There is less and less room for small players on the market, and integration processes are visible. Perhaps the weakest will die, the strongest will receive a bonus. No matter what, we want to be among the winners. The year 2024 lies ahead of us and there are key questions about the future. We respond to them, think strategically and in accordance with the periodically updated development strategy. I think I won't reveal the secret that we are involved in planning and talks with various Partners and centers of business excellence - business and innovation hotspots. I will be able to say more soon, but we are waiting for a "catalysis" of development. The question is whether we will do it by opening up to strategic cooperation with industry and financial investors, or will we have to enter the market? We are tempted by the WSE, but key decisions lie ahead. Let us remember that our Company is a family business, and such considerations are difficult for Shareholders. We treat our business a bit like a child that we raise and are proud of. Mentally, it's hard for us to share this joy. The year 2024 may bring surprises.

RM: Thank you for the interview, I wish you every success in the coming year!

JB: Thank you, I hope I have not bored you and the readers with the story about the plans and dreams of our company. I would like to thank all Employees, Partners and Friends for their effort and dedication in 2023 and I wish you all Joy and Satisfaction in the New Year 2024. May it be a Year of Fulfilled Hopes, fulfilled of course with the MND Group. And Merry Christmas!

Photos from the final stage of investment and integration in our Distribution Center at ul. Lidzbarska 33 in Działdowo.