1Q2 2008/2009

Q2 2008/2009

March 25, 2009

Mikael Solberg, CEOGunnar Bergquist, CFO

Cecilia Lannebo, IR

2Q2 2008/2009

The RNB game plan

• Weak JC development

• Challenging financial conditions

• Liquidity focus in the quarter - hurting profitability

• Need to consolidate, focus and further cut costs

3Q2 2008/2009

Actions after the period

• Divesting operations at NK Stockholm and NK Gothenburg Purchase price 440 MSEK Conditional upon approval of

the competition authorities and extraordinary annual meeting

Decrease of net debt – pro forma per 28 February to approx. 400 MSEK

Marginal positive effect on profit 2008/2009

• 500 MSEK in goodwill write-down in JC

4Q2 2008/2009

Q2; December 2008-February 2009

• Net sales amounted to 914.5 MSEK (854.1) an increase of 7.1 percent currency effects have impacted sales positively by 2.5

percent -3.6 percent in like-for-like

• Operating loss at -588.9 MSEK (-53,1), excluding for goodwill write-down of 500 MSEK, operating loss at -88.9 MSEK (-53.1)

• Loss after tax -572.2 MSEK (-45.0), excluding for goodwill write-down -72.2 MSEK (-45.0)

• Cash flow from current operations for the period at 42.8 MSEK (-101.4)

• Goodwill write-down of 500 MSEK

5Q2 2008/2009

Key issues

• JC Restructuring Store network Franchisees

• Balance sheet Capital tied up Inventories Liabilities

• Department Stores Steen & Ström Illum Kosta Outlet

• Market development • Currency• Cost cutting

6Q2 2008/2009

Polarn O. Pyret

• Sales Q2 sales 108.6 MSEK

(99.1) Growth of 9.6 percent +4.4 percent like-for-like

• Operating profit 16.8 MSEK (15.8) Growth of 6.3%

• Operating profit margin 15.5 percent (15.9)

• New store openings 9 new stores y-o-y

• E-commerce in Sweden and the US, launch mid-March

7Q2 2008/2009

Stores

• Sales Q2 sales 466.4 MSEK

(430.7) Growth of 8.3 percent -7.7 percent like-for-like

• Operating loss -583.0 MSEK (-69.9),

excluding for goodwill write-down -83,0 MSEK

• JC: -567.9 MSEK• Brothers and Sisters:

-15.1 MSEK• New store openings

14 new stores y-o-y • Brothers: 6• Sisters: 8• JC: -5

8Q2 2008/2009

Departments & Stores

• Sales Q2 sales 344.0 MSEK

(325.1) Growth of 5.8 percent +0.6 percent like-for-like

• Operating loss -13.0 MSEK (13.8)

• Illum -9.0 MSEK (-5.7)• Steen & Ström -2.8

MSEK (-1.0)

9Q2 2008/2009

Going forward

• Focus on business… JC turnaround

• store structure• further cost cutting

Brothers and Sisters• consolidation and roll-out

Departments & Stores• consolidation

Polarn O. Pyret• continued international roll-out

• …and financials Capital structure – further

lowered debts and capital tied up

Lowered costs – organization, store network and international exposure

10Q2 2008/2009

Q&A’s

11Q2 2008/2009

Consolidated income statement (MSEK)

Net turnoverOperating resultFinancial itemsResult after fin. ItemsResult for the period

3MDec 08-Feb

09

3MDec 07-Feb 08

6MSep 08-Feb

09

6MSep 07-Feb 08

914.5 854.1 1,698.0 1 777.8

-588.9 -53.1 -548.7 28.4

-9.6 -10.7 -27.1 -21.9

-598.5 -63.8 -575.8 6.5

-572.2 -45.0 -555.6 9.8

12Q2 2008/2009

Consolidated balance sheet (MSEK)

Intangible assetsTangible assetsFinancial assetsInventoriesOther current assetsTotal assets

EquityLong-term liabilitiesShort-term liabilitiesTotal equity and liabilities

Feb 28, 2009 Feb 29, 2008 Aug 31, 2008

1,470.9 1,871.0 1,966.8

195.7 288.3 215.2

10.2 17.5 11.4

655.0 532.2 672.0

367.6 434.5 462.6

2,699.4 3,143.5 3,328.0

1,191.5 1,488.3 1,404.1

658.6 728.6 717.3

849.3 926.6 1,206.6

2,699.4 3,143.5 3,328.0

13Q2 2008/2009

Key figures

Gross profit margin (%)Operating margin (%)Net profit margin (%)Equity (MSEK)Equity ratio (%)

Average number of employeesNumber of stores

6MSep 08-Feb

09

6MSep 07-Feb

08

12 MSep 07-Aug

08

43.7 43.0 43.3

nm 1.6 0.1

nm 0.6 nm

1,191.5 1,488.3 1,401.1

44.1 47.3 42.2

1,582 1,520 1,505

489 473 475