A STRONGER POSITION ON OUR MARKET

Full year report 2012/13 (September-August)

Agenda

• Highlights

• Q4 and full year 2012/2013

• Going forward

• Questions Johan Åberg

President and CEO

Claes-Göran Starud

Acting CFO

2

Campaigns during period – Design by KappAhl

Highlights Q4

• Continued improved operating result

• Net sales & Like-for-like, +1.7%

• Improved cash flow

• Well-balanced inventories

• Good summer sale in June-July

• Negative weather effect in August

4

Highlights full year: A stronger position on our market

• Higher sales, 3.6%

• Like-for-like 3.0%

• Gross margin improvement, 2.5 percentage points

• Improved operating result, 281% exkl. one-off items

• Cost control

• Well-balanced inventories

• Equity ratio 49.4 (26.2)%

• 60.5% decrease of net debt

• Good improvement in e-commerce sales

• Fewer new stores than plan

• Re-organization and reduced staff in central

organisation

• More sustainable co-operation projects started

5

Stores by

31 August 2013

• Total 390 stores

• 1 new store and 3 closed Q4

• Total 13 new stores and 11

closures full year

• 10 new stores under contract

65

165

103

52

5

6

Operating profit (excl. one-off items)

7

202

Financial highlights Q4

• Net sales MSEK 1 148 (1 129),

an increase of 1.7%

• Like-for-like 1.7%

• Operating profit MSEK 57 (46),

excl. one-off items

• Gross margin 57.0 (57.0) %

• Operating margin 5.0 (4.1) %,

excl. one-off items

8

Sales Q4

MSEK %

Net sales 2011/12 1 129

New stores net 0.9

Like for like 1.7

Currency effect -0.9

Net sales 2012/13 1 148 1.7

9

Income statement Q4

MSEK 2012/13 2011/12

Net sales 1 148 1 129

Cost of goods sold -494 -485

Gross profit 654 644

Selling expenses -575 -579

Administrative expenses -36 -36

Operating profit 43 29

Financial expense -7 -59

Profit before tax 36 -30

Tax expense -29 -10

Net profit 7 -40

10

MSEK 2012/13 2011/12

Cash flow from continuing operations

before change in working capital

-17 -32

Change in working capital 32 5

Cash flow from operating activities 15 -27

Cash flow from investment activities -16 -24

Cash flow after investments -1 -51

Change bank credits 11 63

Cash flow for the period 10 12

Cash flow Q4

11

Financial highlights,

full year

• Net sales MSEK 4 751 (4 587),

an increase of 3.6 %

• Like-for-like 3.0 %

• Operating profit MSEK 202 (53),

excl. one-off items

• Gross margin 59.2 (56.7) %, an

increase of 2.5 percentage points

• Operating margin 4.3 (1.2) %,

excl. one-off items

12

Sales, full year

MSEK %

Net sales 2011/12 4 587

New stores net 1.8

Like for like 3.0

Currency effect -1.2

Net sales 2012/13 4 751 3.6

13

Income statement, full year

MSEK 2012/13 2011/12

Net sales 4 751 4 587

Cost of goods sold -1 937 -1 988

Gross profit 2 814 2 599

Selling expenses -2 488 -2 527

Administrative expenses -150 -136

Other operating incomes 76 -

Operating profit 252 -64

Financial expense -87 -166

Profit before tax 165 -230

Tax expense -74 6

Net profit 91 -224

14

MSEK 2012/13 2011/12

Cash flow from continuing operations

before change in working capital

198 -33

Change in working capital 32 186

Cash flow from continuing

operations

230 153

Sale of property 487 -

Cash flow from investment activities -95 -139

Cash flow after investments 622 14

Change bank credits -984 -592

New share issue 374 585

Cash flow for the period 12 7

Cash flow, full year

15

Net interest bearing debt

31 August 661 (1 673) MSEK

NetDebt/EBITDA 1.9 (10.7)

16

Going forward: Targets

Updated operational targets

• KappAhl:s growth is to be an average of

4 percent per year over a business cycle.

• The operating margin is to be at least

10 percent.

17

Going forward

In Focus 2013/14

• Continuity

• A stronger brand

• A clear offer

Improved performance

• sales

• gross margin

• cost control

• inventories

• logistics

Assortment

• Fashion will be more stylish, well dressed & classic,

with a modern twist

– Fashion for our customer!

– Hampton Republic 27 for the whole family

– Fashion with exciting features: 50 shades of Grey

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Going forward, 2

Marketing

• Bringing the ad-concept forward

• New digital platform

• KappAhl Club goes digital

Sales • New store concept to be launched

• E-commerce launch new markets

• Attract more men in to the Mens department

Sustainability

• Bangladesh Building and Safety Accord

• Water, chemicals and energy saving projects in Bangladesh & India

Stronger balance sheet = flexibility for continued investments

19

Campaigns fall/winter 2013 – Design by KappAhl

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