1
Company Presentation
July 2010
Casual fashion for a casual life
2
Important information
This document has been prepared by Tom Tailor Holding AG for information purposes only, solely for the use at this investors presentation must be treated confidentially by attendees at such presentation and must not be distributed, passed on or otherwise disclosed. In particular, this document is not an offer of securities for sale in the United States or any other jurisdiction. The information contained in this document has not been independently verified. We make no representation or warranty, express or implied, as to, and you should not unduly rely on, the fairness, accuracy, completeness or correctness of the information or opinions in this document.This document contains forward-looking statements. These forward-looking statements reflect our management’s current views with respect to certain future events and financial performance. A number of factors could cause our actual results to differ materially from those projected or implied in such statements. We accept no obligation to update any of the forward-looking statements in this document or to adjust them for future events or developments.
Our common shares are listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard). We publish annual, quarterly and other reports and announcements in accordance with German law and the rules of the Frankfurt Stock Exchange. You can find these publications on our website at www.tom-tailor.com.
Disclaimer
TOM TAILOR COMPANY PRESENTATION
3TOM TAILOR COMPANY PRESENTATION 3
4TOM TAILOR COMPANY PRESENTATION
5
Strong and experienced management team
Dieter Holzer, CEO
•Joined TOM TAILOR in September 2006
•2000-2006: CEO at Tommy Hilfiger Germany
•1995-2000: Wholesale Manager at Esprit Europe, especially for Germany, UK and Eastern Europe
Dr. Axel Rebien, CFO
•Joined TOM TAILOR in October 2005
•2002-2005: Ernst & Young Corporate Finance, Transaction Advisory Services
•1999-2002: Arthur Andersen
•1991-1998: Bremer Landesbank Capital Markets
Christoph Rosa, CPO
•Joined TOM TAILOR in November 2007
•2003-2007: Marketing Director Street One (Division Head, CBR Group)
•2002-2003: Rosa Retail Proprietor
•1999-2002: P&C Buying Department
TOM TAILOR COMPANY PRESENTATION
6TOM TAILOR COMPANY PRESENTATION
Investment highlights–A proven business concept with a strategy for systematic and profitable growth
Vertical system-supplier
of lifestyle fashion
Attractivegrowth
potential
Strong profitability
upside
Experienced management
team
¢ Lean and vertical business model with full information control over entire value chain
¢ Fashion follower approach with 12 collections per year minimising fashion risk
¢ Strong growth potential across product divisions
¢ Multi-channel distribution focused on controlled space driving growth and fostering brand reach
¢ Strong economies of scale effects
¢ Structural margin upside potential through systematic retail expansion
¢ Business revitalisation since entry of new management as base for systematic and profitable growth
¢ Long-standing industry experience and track record at leading apparel players
1
2
3
4
7TOM TAILOR COMPANY PRESENTATION
TOM TAILOR at a glance
Balanced product portfolio Strong international presence Multi-channel distribution
MEN 41%
WOMEN32%
KIDS & MINIS 13%
Denim Male 7%Licenses
and other 2%
Wholesale/B2B 75%
Retail/B2C 25%
Domestic69%
International31%
Total revenues 2009: €300.2mm Total revenues 2009: €300.2mm Total revenues 2009: €300.2mm
Denim Female 5%
WOMENMEN KIDS & MINIS Licenses/Accessories Denim Female
Casual86%
Denim 12%
Denim Male
Controlled distribution
Total revenues 2009: €300.2mmShop-in-shop 24%
Franchise11%
E-business6%
Retail stores 20%
Non-controlleddistribution
40%
Controlled distribution
60%
Fiscal year 2009, as of December 31, 2009
8TOM TAILOR COMPANY PRESENTATION
Multi-channel distribution approach providing significant growth opportunities
Retail Franchise Multi-labelE-business
93 own operated stores across
Europe202 across Europe
1,206 across Europe
~4,500 worldwide
www.tom-tailor.de
www.tom-tailor.at
www.tom-tailor.nl
PoS
as of March 31, 2010
Controlled distribution
¢ Promote identification with the brand
¢ Attract potential franchisees
¢ Mono-label stores run on a franchise basis
¢ Assistance in professional retail space management
¢ Fundamentally strong distribution channel launched in December 2006
¢ High customer convenience
Highlights
Retail / B2C Wholesale / B2B
Shop-in-shop
¢ Demarcated retail areas in department stores
¢ Situated in top locations in larger towns and cities and shopping centres
¢ Designed in accordance with TOM TAILOR’sspecifications
¢ Listings in multi-label retailers offering a limited range of TOM TAILOR products
9TOM TAILOR COMPANY PRESENTATION
TOM TAILOR has outperformed the apparel market
Clothing market–Germany (€bn)
TOM TAILOR Retail–Like-for-like sales growth
12.6%
2.8%4.6%
14.0%16.5%
2007 2008 2009
Excluding e-business Including e-business
Highlights
¢ Significant outperformance of TOM TAILOR, growing in Germany at a CAGR 06–08 of 12.5%, systematically gaining market share
¢ Strong growth momentum through retail store roll-out and like-for-like sales growth
¢ High level of fragmentation in the Western European and German apparel industries with the top 5 companies holding a market share of 11.7% and 15.0%, respectively
55.756.2 56.4
2006 2007 2008
Source: Verdict (2009)
+12.5%
TOM TAILOR CAGR 06–08:
+0.7%
MarketCAGR 06–08:
Top 5 companies11.7%
Others88.3%
Top 5 companies15.0%
Others85.0%
Western Europe
Market shares
Germany
Source: Mintel report (October 2009)
10TOM TAILOR COMPANY PRESENTATION
Lifestyle matrix
Vertical system-supplier of lifestyle fashion
A premium lifestyle brand at affordable prices
Low High
Strong market positioning in the young, casual lifestyle segment
Primarily targeting the middle-income consumer segment with a highly attractive value-for-money proposition
JIL SANDER
TOM TAILOR target group
Source: German Federal Statistical Office - Statistical Yearbook 2009, Management view; ¹ Excludes ~2.9mm households for which no disposable income figures are available as per German Federal Statistical Office
TO
M T
AIL
OR
ta
rget
gro
up
2.5 HHs(Disp. income: > €4,500)
20.3 HHs(Disp. income: €1,500-4,500)
14.4 HHs(Disp. income: < €1,500)
200837.2mm¹
Households (HHs) % of HHs
6.7%
54.6%
38.7%
Nominal disposable income of German households
Fashion degree
Exc
lusi
ve
seg
men
tB
rid
ge
seg
me
nt
Med
ium
pri
ce
seg
men
t
Lo
w t
o
me
diu
m p
rice
se
gm
ent
STRENESSEMAX MARA
ESCADAPRADA
BOGNERHUGO BOSS
STRELLSON MARC O’POLO
TOMMY HILFIGER
STEFANEL
BONITA
GERRY WEBER
ESPRIT
BENETTON
MEXX
ZARA
MANGOSTREET ONE
CECIL
S. OLIVER
H&M
ORSAY
NEW YORKER
PIMKIE
BESTSELLER GROUP
TAKKO
KIK
C&A
DIESEL
REPLAY
G-STAR
RALPH LAUREN
CLOSED
LERROS
1
11
+14%-pts
+12%-pts
+16%-pts
+2%-pts
TOM TAILOR COMPANY PRESENTATION
One of the key winners in recent history according to Spiegel Outfit–a leading brand survey in Germany
Industry-leading growth rates across all relevant brand dimensions
Source: Spiegel Outfit study 6 (2007); Spiegel Outfit study 5 (2001)
Vertical system-supplier of lifestyle fashion
Strong consumer acceptance: TOM TAILOR is one of the fastest growing apparel brands
1
Brand awareness Brand ownership Willingness to buy
2001
2006/7
40%
77%
72%
68%
71%
88%
87%
77%
8%
27%
25%
18%
22%
39%
41%
20%
12%
32%
31%
25%
26%
41%
43%
28%
+14%-pts
+9%-pts
+12%-pts
+3%-pts
2001
2006/7
2001
2006/7
2001
2006/7
Dimensions of consumer acceptance and brand recognition across competitors
+31%-pts
+11%-pts
+15%-pts
+9%-pts
12TOM TAILOR COMPANY PRESENTATION
Vertical system-supplier of lifestyle fashion
Lean and vertical business model with full information control over entire value chain
Design
Technical preparation
Buying / purchasing
Product management
e.g. Women
Complete outsourcingof manufacturingand procurement
Centralisedwarehousing
system Points-of-sale
Product development Sourcing Logistics Distribution
Focus on core value added processes: product development and distribution
Track record for system expertise and meticulous supply chain management
Full information control across all value chain processes
1
¢ Low fashion risk with 12 collections per year
¢ ~90% of purchasing in wholesale segment via pre-order system minimising stock risk
¢ Multi-channel distribution approach with focus on controlled distribution
¢ Outsourced to DHL with B2B portal ensuring 24/7 availability for business partners
13TOM TAILOR COMPANY PRESENTATION
Lead time:
Pro
du
ct c
ycle
–ti
me
-to
-ma
rket
Standard
process
Fast
track
SaleDevelopment ProductionTransport &
warehouse
Spot style
111 8 1-4 2
14 5 1/2 1/2
PoS
4W 1/21/21T1-2 days 4 1/2 1/2
Note: Numbers in weeks unless stated otherwise
Vertical system-supplier of lifestyle fashion
Systematic process design facilitating high flexibility to rapidly react to latest market trends
1
Co
llec
tio
n d
eve
lop
men
t Monthlyconcept meeting
Market scoutCollection
development jointly by
designer and market scout
Designer
Fashion follower approach with 12 collections per year minimising fashion risk
¢ Systematic research of market intelligence and identification of successful fashion trends
¢ Fast incorporation of market-proven fashion styles
¢ Operational value chain allows for 12 collections per year for each product division
¢ “Bestseller management”
~23-26 weeks
~11weeks
~5weeks
14TOM TAILOR COMPANY PRESENTATION
Attractive growth potential
Unique breadth of complementing growth drivers
ü
ü
ü
üü
ü
ü
2
Internationalisation
Market share potential
Licensing TOM TAILOR Denim
Controlled wholesale area
E-business
Retail store roll-out
15TOM TAILOR COMPANY PRESENTATION
16.65.1
FY 2007 FY 2009
Own operated
stores
E-business
Franchise stores
Shop-in-shops
Multi-label
87
29
2007 2009
CAGR: 73.2%
201159
2007 2009
CAGR: 12.4%Number ofstores
1,108757
2007 2009
CAGR: 21.0%
4,5125,625
2007 2009
CAGR: (10.4)%
CAGR: 81.0%Revenues (€mm)
Ret
ail /
B2C
Wh
ole
sal
e /
B2
B
¢ Fast store roll-out programme in domestic market
¢ Systematic expansion in lucrative international markets
¢ Systematic roll-out of mono-label franchise partner stores
¢ Significant demand from international franchise partners promising material growth opportunities
¢ Fast-growing area expansion across domestic and international department stores
¢ Significant demand from international wholesale partners promising material growth opportunities
¢ Historically established dense distribution network
¢ Diminishing in relative importance due to systematic expansion of controlled distribution and conversion of multi-label into SIS
¢ Rapid development of recently launched distribution channel
¢ Significant Capex-light roll-out opportunities internationally
Attractive growth potential
Multi-channel distribution focused on controlled space driving growth and fostering brand reach
2
PoS
Number of customer accounts
Controlled distribution
Note: PoS, number of stores and customer accounts as of year-end (31 Dec)
Number ofstores
16
46.0
45.4 58.748.7
34.452.7
2007 2008 2009
Core international (€mm) Other international (€mm)
TOM TAILOR COMPANY PRESENTATION
Established international presence
Steady internationalisation in core markets
Breakdown by region–2009
Germany 69.0%
International 31.0%
Total revenues 2009: €300.2mm
Attractive growth potential
Established international footprint as strong base for continuous growth
2
¢ Balanced and diversified international brand reach
¢ Core markets Austria, Benelux, Switzerland and France accounting for 63.0% of international sales
¢ Controlled expansion in lucrative growth regions
Congruency between market potential and TOM TAILOR brand
Attractive size and growth of middle-income consumer segment
Increase in purchasing power
¢ Strategic decision to reduce expansion in Eastern Europe due to difficult economic environment in FY2009
¢ Today present in 35 countries
¢ International brand reach through >360 controlled points-of-sale
91.5101.3
93.2
20.7%7.2%
Benelux18.4%
Austria30.1%
Other 37.0%
Switzerland 11.3%
France 3.3%
17TOM TAILOR COMPANY PRESENTATION
¢ Significant economies of scale across major group functions, including
IT/Services
AdministrationHead office
Purchasing
¢ Continuous improvements in purchasing terms as a result of higher order quantities and increased buying power
¢ Significant further upside potential from optimised supplier base and higher volumes per supplier
Productdevelopment
¢ Significant cost dilution driven by economies of scale in product development
Strong profitability upside
Economies of scale: Cost dilution and positive scale effects driven by revenue growth
3
Retail distribution
¢ Significant scale effects resulting from fast-growing store-roll out and e-business
¢ Leverage on established retail infrastructure
¢ Increased maturity profile of retail operations
Sales organisation wholesale
¢ Optimised sales force capacity utilisation
¢ Full benefit of economies of scale as a result of in-sourcing of sales force
18TOM TAILOR COMPANY PRESENTATION
Strong profitability upside
Structural margin upside potential through systematic retail expansion
Retail/B2C10.3% Retail/B2C
25.5%
Wholesale/B2B 74.5%
2009
Increasing Retail contribution Average Retail store EBITDA margin¹
Wholesale/B2B 89.7%
2007
3
Retail–Recurring EBITDA margin Retail–Like-for-like sales growth
12.6%
2.8%4.6%
14.0%16.5%
2007 2008 2009
Excluding e-business Including e-business
¹ Pre retail overhead expenses
1.8%
6.3%
12.0%
2007 2008 2009
7.7% 8.3%
12.9%
12.8%
17.0%
16.3%
2007 2008 2009
Stores opened before 1 Jan 07 Stores opened in 2007
Stores opened in 2008
19
¢ Launch and development of e-business platform
¢ Optimisation of store/shop concept
¢ Expansion and optimisation of retail business
¢ Systematic expansion of controlled premium floor space through franchise operations
and shop-in-shops
¢ Implementation of EDI/Navision
Modification of product mix
¢ Launch of new product lines Denim Male and Denim Female
¢ Repositioning of product line WOMEN Casual
TOM TAILOR COMPANY PRESENTATION
Experienced management team
Business revitalisation since entry of new management as base for systematic and profitable growth
Status
Expansion of controlled space
ü2007
ü2008
Key management initiatives
¢ Introduction of divisional structure
¢ Insourcing of sales organisation
¢ Upgrading of logistics platform
¢ Reduction of lead-times in standard processes
¢ Streamlining of supplier network
¢ Strategic focus on PoS marketing
ü2008
ü2009
In implementation
In implementation
ü2009
üEnd of 2006
Improvement of organisational
structure
Improvement of operational processes
4
ü2008
üDec 2006–2008
ü2008ü
Continuously
üContinuously
ü2008
20TOM TAILOR COMPANY PRESENTATION
Strong financial momentum
261.3
300.2283.5
2007 2008 2009
Key historical financials
35.0 37.8
22.1
12.6%7.8%
13.4%
2007 2008 2009
117.3137.7
111.3
42.6% 41.4%
45.9%
2007 2008 2009
8.5% 5.9%¢ Resilience to difficult sector
trading environment
¢ Superior growth momentum, outgrowing the European apparel market
¢ Temporary reduction of Eastern European business
Historical performance
¢ Extraordinary circumstances in 2008 as a result of sales force integration
¢ Recovery of EBITDA margin 2009 driven by revenue growth and realised efficiency gains
¢ Recent improvement in gross margins due to successful implementation of operational initiatives and economies of scale
Rev
enu
esG
ross
pro
fit
Re
curr
ing
E
BIT
DA
Growth potential
¢ Systematic retail store roll-out (Casual and Denim)
¢ Controlled wholesale growth via franchise and SIS network
¢ Strong wholesale order book 2010
¢ Fast-growing e-business
¢ International expansion in lucrative markets
¢ Continued materialisation of operational improvements
¢ Scalability of business model and rapid growth allowing degression of overhead costs
¢ Fast retail store roll-out
¢ Procurement chain efficiencies and better buying terms
(€mm)
(€mm) Margin
(€mm) Margin
21TOM TAILOR COMPANY PRESENTATION
Financial snapshot–Wholesale
237.5223.7234.5
2007 2008 2009
28.9
34.6
18.712.9%14.8%
7.9%
2007 2008 2009
(€mm) Margin
Wholesale–Revenues (€mm) Shop-in-shop format
Franchise formatWholesale–Recurring EBITDA
22TOM TAILOR COMPANY PRESENTATION
Financial snapshot–Retail
Retail–Revenues and PoS Casual stores
Retail–Recurring EBITDA
76.5
45.9
26.887
60
29
2007 2008 2009
Revenues (€mm) Number of PoS
9.2
0.5
2.9
12.0%
6.3%
1.8%
2007 2008 2009
(€mm) Margin
CAGR 07-09: 68.8%
Note: PoS exclude e-business
Denim stores
23
Use of IPO proceeds: Expansion
Retail store roll-out
¢ TOM TAILOR CASUAL concept
¢ 200 –250 sqm net selling area
¢ Capex approx. 1,000 €/sqm
¢ Inventory level 40-60k EUR
¢ TOM TAILOR DENIM concept
¢ 150 - 200 sqm net selling area
¢ Capex 1,000 €/sqm
¢ Inventory level 40-60k EUR
Funding of Shop-In-Shop expansion
¢ 30-50 sqm net selling area
¢ up to 350€/sqm contribution
60 –70 stores p.a.
250 SIS p.a. all divisions
TOM TAILOR COMPANY PRESENTATION
24
Strengthening of balance sheet: PRE and POST IPO capital structure
POST IPO capital structure (as of March 31, 2010)
in €mm
PRE IPO capital structure (as of Dec. 31, 2009)
in €mm
Financialliabilities
Cash
∑ Net debt
∆in €mm
198.0 73.4- 124.6
14.1 27.5+ 13.4
183.9 45.9- 138.0
TOM TAILOR COMPANY PRESENTATION
¢ Committed to progressive dividend policy with dividends increasing broadly in line with EPS growth
¢ Focus on reinvestment of operating cash flows in expansion of controlled distribution channels
Post-IPO dividend policy
25
Financial highlights QI/2010
1. Increase of consolidated net revenues + 6.7%QI/2010: €76.4 mmQI/2009: €71.6 mm
3. Like-for-like growth own operated retail stores + 5.8%(including e-Shop + 13.9%)
4. Increase of gross margin + 2.5%-pointsQI/2010: 47.0%QI/2009: 44.5%
5. Increase of recurring EBITDA of + 19.1%QI/2010: €9.9 mmQI/2009: €8.3 mm
QI/2009: 19.3 %2. Increasing retail contribution:
QI/2010: 26.5 %
TOM TAILOR COMPANY PRESENTATION
26TOM TAILOR COMPANY PRESENTATION
Investment highlights–A proven business concept with a strategy for systematic and profitable growth
Vertical system-supplier
of lifestyle fashion
Attractivegrowth
potential
Strong profitability
upside
Experienced management
team
¢ Lean and vertical business model with full information control over entire value chain
¢ Fashion follower approach with 12 collections per year minimising fashion risk
¢ Strong growth potential across product divisions
¢ Multi-channel distribution focused on controlled space driving growth and fostering brand reach
¢ Strong economies of scale effects
¢ Structural margin upside potential through systematic retail expansion
¢ Business revitalisation since entry of new management as base for systematic and profitable growth
¢ Long-standing industry experience and track record at leading apparel players
1
2
3
4
27TOM TAILOR COMPANY PRESENTATION
Annual balance sheet
Assets Equity and liabilities
Recapitalisation 2006
(€mm, Dec Y/E) 2007 2008 2009
Intangible assets 145.9 147.1 139.9
Tangible assets 9.6 19.6 19.9
Inventories 30.9 30.8 31.4
Trade receivables 31.1 37.4 33.4
Cash and short-term deposits 7.9 11.4 14.1
Other assets 6.0 6.4 11.4
Total assets 231.4 252.8 250.1
(€mm, Dec Y/E) 2007 2008 2009
Total equity (52.0) (62.5) (68.2)
Financial liabilities 182.3 201.8 198.0
Pensions 0.2 0.2 0.2
Deferred tax liabilities 40.8 36.6 34.3
Provisions 15.3 14.5 13.5
Deferred income 0.0 5.9 5.1
Trade payables 39.8 44.7 50.9
Current income tax liabilities 1.2 0.8 5.7
Other liabilities 3.7 10.9 10.6
Total liabilities 283.4 315.3 318.3
Total equity and liabilities 231.4 252.8 250.1
¢ Negative balance of total equity due to the recapitalisation of TOM TAILOR in December 2006
¢ Recapitalisation classified as “business combination under common control”according to IFRS 3. Consequently, a step-up of hidden reserves was not realised under IFRS and the amounts distributed to shareholders decreased the group equity (positive equity under German HGB resulting from the additional step-up in the course of the recapitalisation)
¢ As a result, net loss in FY2006 amounted to €107.2mm
28TOM TAILOR COMPANY PRESENTATION
Annual income statement
(€mm, Dec Y/E) 2007 2008 2009
Revenues 261.3 283.5 300.2
% growth 8.5% 5.9%
Material expenses (150.0) (166.2) (162.5)
Gross profit 111.3 117.3 137.7
% margin 42.6% 41.4% 45.9%
Other operating income 8.5 10.2 12.8
Personnel expenses (31.0) (39.6) (41.3)
Other operating expenses (61.8) (77.0) (72.3)
Reported EBITDA 27.0 10.9 37.0
% margin 10.3% 3.9% 12.3%
Depreciation and amortisation (13.7) (18.2) (21.1)
Reported EBIT 13.2 (7.3) 15.9
Financial result (14.9) (21.7) (17.7)
EBT (1.7) (29.0) (1.8)
Income taxes 14.4 3.7 (3.8)
Net result 12.8 (25.3) (5.6)
Summary income statement
29TOM TAILOR COMPANY PRESENTATION
Annual cash flow statement
(€mm, Dec Y/E) 2007 2008 2009
Net result 12.8 (25.3) (5.6)
Depreciation and amortisation 13.7 18.2 21.1
Change of long-term provisions (1.1) (0.1) (0.1)
Cash flow 25.4 (7.3) 15.3
Interest on shareholder's loan 3.1 2.7 2.2
PIK interest on Mezzanine financing 1.3 1.6 1.9
Change of deferred taxes (16.8) 0.5 (1.9)
Change of short-term provisions 6.3 (0.7) (0.9)
Gain/loss on the disposal of fixed assets 0.0 (0.2) (0.2)
Change of inventories (9.9) 0.0 (0.6)
Change of receivables and other assets (15.0) (6.3) (1.4)
Change of payables and other liabilities 14.9 12.5 10.1
Other non-cash items 0.0 (0.1) 0.2
Operating cash flow 9.3 2.7 24.7
Purchases of fixed assets (7.9) (23.7) (11.5)
Proceeds from the sale or disposal of fixed assets 0.1 0.2 0.2
Investing cash flow (7.8) (23.5) (11.3)
Change in equity due to payments to and from shareholders 0.0 15.0 0.0
Change in debt due to payments to and from shareholders 0.0 0.0 9.0
Change of financial liabilities (6.4) 9.3 (19.7)
Financing cash flow (6.4) 24.3 (10.7)
Currency effects (0.0) 0.1 0.0
Net change in cash (4.9) 3.6 2.6
30TOM TAILOR COMPANY PRESENTATION
Assets Equity and liabilities
(€mm) Dec. 31, 2009 March 31, 2010
Intangible assets 139.9 138.7
Tangible assets 19.9 22.1
Deferred income tax 0.3 0.6
Inventories 31.4 32.2
Trade receivables 33.4 41.4
Income tax receivable 0.4 0.6
Other assets 5.1 2.5
Cash and short-term deposits 14.1 27.5
Prepaid assets 5.6 7.0
Total assets 250.1 272.6
(€mm) Dec. 31, 2009 March 31, 2010
Total equity (68.2) 84.8
Financial liabilities 198.0 73.4
Pensions 0.2 0.2
Deferred tax liabilities 34.3 33.5
Provisions 13.5 16.6
Deferred income 5.1 4.8
Trade payables 50.9 46.9
Current income tax liabilities 5.7 5.8
Other liabilities 10.6 6.6
Total liabilities 318.3 187.8
Total equity and liabilities 250.1 272.6
Q1 balance sheet
31TOM TAILOR COMPANY PRESENTATION
Q 1 income statement
(€mm) Q1/ 2009 Q1/2010
Revenues 71.6 76.4
% growth 6.7%
Material expenses (39.8) (40.5)
Gross profit 31.8 35.9
% margin 44.4% 47.0%
Other operating income 3.2 4.1
Personnel expenses (10.0) (11.4)
Other operating expenses (16.7) (18.7)
Recurring EBITDA* 8.3 9.9
% margin 11.6% 12.9%
Depreciation and amortisation (5.0) (5.2)
Reurring EBIT* 3.3 4.7
Financial result** (6.2) (4.0)
Recurring EBT* (2.9) (0.7)
Income taxes (1.6) (0.8)
Recurring net result*** (4.5) (0.1)
Summary income statement
*7.0m one time effectsfor IPO
**3.4m one timeeffects for restructuring
of financial liabilites
***10.4m totalnon-recurring
one time effects
32
Reconciliation to recurring net income
Reconciliation Notes
(€mm)
Reported net income -10.6
AdjustmentsIPO costs 7.0Release of former transaction cost 3.4PPA amortisation 2.0
30% tax shield on adjustments -3.7Deferred taxes on IPO costs 1.8
Adjustments total 10.5
Adjusted Net Income -0.1
Not adjusted for higher interest (net of tax) 1.7
Total 1.6
¢ Impact on EBITDA
¢ included in financial result
¢ included in depreciation & amortisation
¢ accrual due to IPO
¢ elimination of January to March LBO structure
TOM TAILOR COMPANY PRESENTATION
33TOM TAILOR COMPANY PRESENTATION
Q1 cash flow statement
(€mm) Q1 2009 Q1 2010
Net result (3.4) (10.6)
Depreciation and amortisation 5.0 5.2
Change of long-term provisions 0.0 0.0
Cash flow 1.6 (5.4)
Interest on shareholder´s loan 0.7 0.8
PIK interest on Mezzanine financing 0.4 0.5
Change of deferred taxes 2.6 0.7
Change of short-term provisions (4.8) 2.5
Gain/loss on the disposal of fixed assets (0.2) 0.0
Change of inventories 3.4 (0.8)
Change of receivables and other assets (6.1) (6.9)
Change of payables and other liabilities 0.5 (7.0)
Other non-cash items 2.0 1.4
Operating cash flow 0.1 (14.2)
Purchases of fixed assets (7.1) (5.7)
Proceeds from the sale or disposal of fixed assets 0.2 0.0
Investing cash flow (6.9) (5.7)
IPO proceeds 0.0 143.0
Transaction costs due to IPO 0.0 (6.2)
Change in debt due to payments to and from shareholders 0.0 (32.6)
Change of financial liabilities 7.8 (70.9)
Financing cash flow 7.8 33.3
Currency effects 0.0 0.0
Net change in cash 1.0 13.4
TOM TAILOR COMPANY PRESENTATION
34TOM TAILOR COMPANY PRESENTATION
International wholesale footprint
Wholesale operations
PoS and showrooms as of March 31, 2010SIS = Shop-in-shop
Germany Format PoSFranchise: 39SIS: 995Showrooms: 7
Austria Format PoSFranchise: 44SIS: 31Showrooms: 2
Benelux Format PoSFranchise: 10SIS: 26Showrooms: 2
Switzerland Format PoSFranchise: 9SIS: 93Showrooms: 1
France Format PoSFranchise: 6SIS: 22Showrooms: 1
Broad international distribution network
Stable and highly visible performance as a result of established pre-order system
Russia Format PoSFranchise: 21SIS: 4Showrooms: 1
Bulgaria Format PoSFranchise: 13
Slovenia Format PoSFranchise: 10SIS: 3Showrooms: 1
Croatia Format PoSFranchise: 8Showrooms: 1
Other Format PoSFranchise: 42SIS: 32Showrooms: 9
TOM TAILOR regional wholesale operations
TOM TAILOR core markets
35TOM TAILOR COMPANY PRESENTATION
International retail footprint
Retail operations
Netherlands PoSFull price 2Outlet 2e-shop 1
Market entry 2008
France PoSOutlet 1
Market entry 2009
Belgium PoSFull price 1Outlet 1
Market entry 2009
Switzerland PoSFull price 3Outlet 1
Market entry 2003
Italy PoSOutlet 2
Market entry 2009
Czech Republic PoSOutlet 3
Market entry 2009
Austria PoSFull price 15Outlet 2e-shop 1
Market entry 2004
Note: PoS as of March 31, 2010
¹ Joint venture
Ireland¹ PoSFull price 2
Market entry 2009
Northern Ireland¹ PoSOutlet 1
Market entry 2008
TOM TAILOR regional wholesale operations
TOM TAILOR core markets
Germany PoSFull price 44Outlet 16e-shop 1e-coop 2
Market entry 2002
36