REVIEW OF THE FIRST SIX MONTHS OF...

REVIEW OF THE FIRST SIX MONTHS OF 2013/14

Q2 2013/14

GERRY WEBER International AG continued to make headway in the second quarter of the current fiscal year. A 5.2% increase in like-for-like sales means that we again outperformed the German fashion market as a whole in what was a balanced market environment. Total market growth in the first four months of the calendar year was relatively low at only 1 - 2% year-on-year.

While GERRY WEBER International AG’s total sales revenues in Q2 2013/14 were up by 1.6% on the prior year quarter, the operating margin improved notably from 11.7% to 14.2%. The operating result amounted to EUR 31.3 million in Q2 2013/14, up 22.3% on the previous year.

The shift of the winter sale to the first quarter 2013/14 and the resulting absence of an extended seasonal discounting led to higher profitability in the second quarter than in the same

Q2 2013/14 Q2 2012/13 H1 2013/14 H1 2012/13

in EUR million 01.02.14 - 30.04.14 01.02.13 - 30.04.13 01.11.13 - 30.04.14 01.11.12 - 30.04.13

Sales 222.4 219.0 412.8 403.9

Wholesale 131.5 138.0 224.1 237.3

Retail 90.9 81.0 188.7 166.6

Earnings key figures

EBITDA 37.5 30.3 61.8 53.4

EBITDA margin 16.9% 13.8% 15.0% 13.2%

EBIT 31.3 25.6 49.5 43.3

EBIT margin 14.2% 11.7% 12.0% 10.7%

EBT 29.9 24.7 46.8 41.8

EBT margin 13.4% 11.3 11.3 10.3

Net income of the period 21.1 17.8 32.7 29.3

GERRY WEBER International AG Interim Report 6M 2013/14

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period of the previous year. Improved inventory management and the resulting faster inventory turnover also had a positive impact on the company’s bottom line.

H1 2013/14

Group sales revenues at the six-month stage totalled EUR 412.8 million, which represents an increase of 2.2% on the first half of the previous year. In this context, it should be noted that the Retail segment posted a 13.3% increase in sales revenues, which offset the -5.6% decline in Wholesale revenues.

Earnings before interest and taxes (EBIT) showed a very positive trend in the first half of 2013/14 and climbed 14.2% to EUR 49.5 million (H1 2012/13: EUR 43.4 million). As a result, the EBIT margin rose from 10.7% to 12.0%.

The margin improvement is primarily attributable to the Retail segment’s earnings improvement as well as the increased Retail share in total Group revenues.

Taking into account a nearly unchanged financial result compared to the previous quarter and a stable income tax ratio, net income for the period after taxes amounted to EUR 32.7 million (H1 2012/13: EUR 29.3 million), up EUR 3.4 million or 11.5% on the first six months of the previous year. As a result, earnings per share improved from EUR 0.64 to EUR 0.71 in H1 2013/14.

H1 2013/14 2012/13

in EUR million 01.11.13 - 30.04.14 01.11.12 - 31.10.13

Total assets 630.7 531.6

Equity 427.2 395.8

Debt Capital 203.5 135.8

Equity ratio 67.7% 74.5%

Key figures

High share price (in Euro) 38.98 38.35

Low share price (in Euro) 28.76 29.42

Earnings per share (in Euro) 0.71 1.55

Investments 15.7 37.9

Number of employees (average) 4,866 4,725


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Die GERRY WEBER AKTIE The GERRY WEBER share clearly picked up in the first half of the fiscal year 2013/14. After a somewhat weaker performance at the end of the past fiscal year, the price of the GERRY WEBER share climbed from EUR 30.49 on 1 November 2013 to EUR 33.00 at the end of the first quarter of 2013/14, which represents an increase of 8.2%. This positive trend was even exceeded in the second quarter of 2013/14 (1 February to 30 April 2014), when the share gained another 13.2% to EUR 38.00.

The MDAX, in which the GERRY WEBER share is listed, remained almost constant during the same period. This above-average performance of the GERRY WEBER share, which gained a total of 24.6%, primarily reflects the positive business trend in the first half of the fiscal year 2013/14.

The dividend payment for the fiscal year 2012/13 to the company’s shareholders is also good news, as it remains constant in spite of the fact that earnings figures fell short of the prior year level. According to the resolution passed by the shareholders at the Annual General Meeting on 4 June 2014, the dividend for the fiscal year 2012/13 will amount to a stable EUR 0.75. Over the past seven years, the dividend increased by a total of 275%. Based on the share price at the end of the fiscal year 2012/13, the dividend yield stood at approx. 2.5%.

The Annual General Meeting held in Halle/Westphalia on 4 June 2014 was attended by some 1,000 shareholders, who represented 72.84% of the company’s share capital of EUR 45,905,960. The vast majority of the shareholders who attended the AGM personally or through authorised representatives approved the items on the agenda. Among the most important agenda items was the election of Gerhard Weber to the Supervisory Board of GERRY WEBER International AG with effect from 1 November 2014. All voting results and agenda items can be found on our website at www.gerryweber.com under Investors/Annual General Meeting.


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Low: 28,76

High: 38,98


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INTERIM GROUP MANAGEMENT REPORT on the first six months of 2013/14

from 1 November 2013 to 30 April 2014

SALES PERFORMANCE

Profitable growth and, hence, improved

profit margins are primary objectives

pursued by the GERRY WEBER Group.

This was achieved impressively in the

second quarter of 2013/14, when

earnings before interest and taxes (EBIT)

increased by 22.3% to EUR 31.3 million.

This improved operating result is even

more remarkable as Group sales

revenues, which had grown by 3% in the

first quarter of 2013/14, increased by

only 1.6%, i.e. at a lower rate than EBIT.

Sales revenues climbed from EUR 219.0

million in the prior year quarter to EUR

222.4 million in Q2 2013/14. Group sales

revenues for the first six months of the

current fiscal year totalled EUR 412.8

million (H1 2012/13: EUR 403.9 million).

This represents an increase of 2.2%.

The Retail segment made an important

contribution to the sales growth and

accounted for 45.7% of total Group

revenues in the first half of 2013/14. This

is equivalent to an increase of 4.5

percentage points on the same period of

the previous year.

Wholesale 54.3 %

(VJ: 58.8%)

Retail45.7 %

(VJ: 41.2%)

Sales split H1 2013/14 by segments


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Performance of the Retail segment

Having risen by 14.1% in the first quarter

of 2013/14, the Retail segment’s sales

revenues increased by 12.3% to EUR

90.9 million in the second quarter (Q2

2012/13: EUR 80.9 million).

Sales revenues for the first six months of

2013/14 totalled EUR 188.6 million, up

13.3% on the same period of the

previous year. The increase is

attributable to both the sales growth

generated by the company-managed

stores opened in the past two fiscal

years and an improvement in like-for-like

sales.

Like-for-like Retail revenues in the first

six months of the current fiscal year were

up by 5.2% on the prior year period.

According to our definition, like-for-like

sales comprise the sales generated by

outlets opened more than 24 months

ago. A look at only the second quarter

shows that like-for-like sales growth was

as high as 5.7%. According to an

independent panel of “Textilwirtschaft”

magazine, sales revenues in the German

fashion market as a whole increased by

only 1-2% in the first four months of the

calendar year 2014. This means that we

clearly outperformed the overall market

in terms of like-for-like sales growth.

HoGWs+Mono 76.6%

(VJ:75.2%)

Concession5.2%

(VJ:4.8%)

Outlets12.5%

(VJ: 14.6%)

Online Shops5.7%

(VJ: 5.4%)

Sales split Retail H1 2012/13


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The company-managed Houses of GERRY WEBER and mono-label stores contributed almost 76.6% to total Retail revenues in the first half of 2013/14. Both the e-commerce segment (5.7%) and the concession stores (5.2%) improved their contributions to total Retail revenues. Against the background of the good sales figures in the other Retail distribution channels, the factory outlet stores’ share in sales revenues dropped sharply from 14.6% to 12.5% in the first half of 2013/14. The factory outlet stores primarily sell merchandise whose seasonal sales phase has already ended. The chart on page 6 shows a detailed breakdown of Retail revenues by distribution channels.

Performance of the Wholesale segment

Sales revenues in the Wholesale segment amounted to EUR 131.5 million in the second quarter of 2013/14, down 4.8% on the same period of the previous year. In the first quarter of 2013/14, revenues had declined by as much 6.7%. The Wholesale sales trend in the second quarter confirms our assumption that retailers’ ordering behaviour will stabilise and recover as the weather and market conditions return to normal.

Against the background of the weather-related difficult market environment affecting the entire fashion industry in Central Europe in 2013, the inventories of some Wholesale partners were much higher than in the previous years. This led to a decline in pre-order volumes for

the spring/summer collection invoiced in the first and second quarter.

When analysing the Wholesale revenues, it should also be considered that the 19 Belgian Houses of GERRY WEBER in which majority shareholdings were acquired have been counted towards the Retail segment since August 2013.

Wholesale revenues for the first six months of 2013/14 totalled EUR 224.1 million (H1 2012/13: EUR 237.3 million), which represents a decline by 5.6% compared to the same period of the previous year. As the Retail segment’s revenues increased by 13.3%, the Wholesale segment’s share in total Group revenues declined to 54.3% (H1 2012/13: 58.8%). This means that we have come a good deal closer to our medium-term aim of achieving a balanced split between Retail and Wholesale revenues.

Performance of the distribution channels

The ongoing vertical integration of our business model is an important strategic focus of the GERRY WEBER Group. The aim is to assume control over merchandise management in more and more stores and to get the collections to the outlets even more quickly.

The vertical integration strategy is being implemented, on the one hand, by aggressively expanding the number of company-managed Retail stores and, on


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the other hand, by continuously implementing the concept of what we call “trusted wholesale limit concept”. Under this concept, the retailers buying from our Wholesale segment leave the breakdown and the volume of their orders to the experts of the GERRY WEBER Group. Based on the information received from over 6,000 points of sale on a daily basis, we decide what merchandise to supply to each retailer’s stores.

At the end of the reporting period (30

April 2014), there were 434 company-

managed Houses of GERRY WEBER

and 141 mono-label stores in Germany

and abroad. The Retail segment

additionally comprises 111 concession

stores and 25 outlet stores. A total of 711

sales spaces were operated by the

company.

This means that ten new Houses of

GERRY WEBER were opened and three

mono-label stores closed in the first six

months of the current fiscal year. Due to

construction delays, not all stores that

were planned to be opened in the first

half of the year could be completed. The

Wholesale segment comprises among

others the franchised Houses of GERRY

WEBER as well as the shop-in-shops. 10

(net) new franchised stores were opened

in the first half of 2013/14, all of them

outside Germany.

At 2,828, the number of shop-in-shops remained almost unchanged as of the six-month stage; 531 of these shop-in-shops are located outside Germany

H1 2013/14 2012/13

31.04.2014 31.10.2013

RETAIL

Houses of GERRY WEBER 434 424

Monolabel Stores 141 144

Concession Flächen 111 111

Factory Outlets 25 22

WHOLESALE

Houses of GERRY WEBER 281 271

Shop-in-Shops 2.828 2.816


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In the first half of 2013/14, Germany accounted for 60.3% of total Group revenues across all distribution channels (Wholesale and Retail). The European Union (excl. Germany) accounted for 29.1%, while non-EU countries accounted for 10.6%.

The relative shares of the brand families on the basis of sales to end consumers and to Wholesale customers amounted in the first half of the current fiscal year:.

GERRY WEBER 76.1%

TAIFUN18.3%

SAMOON5.6%

Sales split H1 2013/14 by brand


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EARNINGS

Q2 2013/14

While earnings in the first quarter of 2013/14 were influenced by the shift of the winter sale to January 2014 (previous year: February 2013), the second quarter saw a clear improvement in profitability. The fact that hardly any merchandise was discounted in the second quarter of the current fiscal year and that the cost structure remained almost unchanged had a positive impact on both the gross margin and the operating margin of the GERRY WEBER Group.

Reflecting our production and delivery cycles, inventories declined by EUR 9.2 million in the second quarter of 2013/14. A major part of the spring/summer collections is delivered to our own Retail stores and our Wholesale partners in this quarter.

Corresponding to higher revenues than in the prior year quarter, the cost of materials increased slightly by 3.6% in the second quarter of 2013/14 and

Q2 2013/14 Q2 2012/13 H1 2013/14 H1 2012/13

in KEUR 01.02. - 30.04.2014 01.02. - 30.04.2013 01.11.2013-30.04.2014 01.11.2012 - 30.04.2013

Sales 222,397.9 218,988.0 412,777.1 403,884.0

Other operating income 2,544.8 3,149.9 7,164.5 7,143.6

Changes in inventories -9,208.0 -22,353.8 4,657.0 -8,052.9

Cost of materials -88,738.1 -85,685.4 -190,339.8 -184,472.9

Personnel expenses -36,899.2 -34,429.9 -73,003.0 -69,268.4

Depreciation/Amortisation -6,220.3 -4,710.4 -12,262.2 -10,069.8

Other operating expenses -52,328.2 -49,152.9 -98,916.7 -95,284.5

Other taxes -287.4 -252.4 -560.3 -512.8

OPERATING RESULT 31,261.5 25,553.1 49,516.6 43,366.2

Financial result -1,349.9 -810.0 -2,701.5 -1,579.8

RESULTS FROM ORDINARY ACTIVITIES 29,911.6 24,743.1 46,815.1 41,786.4

Taxes on income -8,793.2 -6,969.6 -14,106.4 -12,463.7

NET INCOME OF THE REPORTING PERIOD 21,118.4 17,773.5 32,708.7 29,322.7


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amounted to EUR 88.7 million (Q2 2012/13: EUR 85.7 million). This gives evidence of the good purchasing and production structures of the GERRY WEBER Group. Accordingly, the gross margin rose sharply from 50.7% to 56.0% on a quarterly basis. The improvement clearly reflects the lower discount ratio. More goods were sold at full price. The Retail segment’s higher share also had a positive impact on the company’s gross margin in the second quarter of 2013/14.

Personnel expenses were up by 7.2% on the prior year quarter to EUR 36.9 million. This is primarily attributable to the opening of 80 new own Retail spaces in the last twelve months and the fact that the Belgian payroll is now also included in the consolidated financial statements. A look at personnel expenses in the first quarter shows that they increased only by a moderate 2.2% compared to Q1 2013/14.

Due to the increase in the number of company-managed stores compared to the prior year quarter, other operating expenses increased slightly to EUR 52.3 million in the second quarter of 2013/14 (+6.5% on the previous year). This is mainly attributable to the rental expenses for the newly opened stores. Other operating expenses as a percentage of sales increased only moderately to 23.5% (Q2 2012/13: 22.5%).

Against the background of the expansion of the Retail segment and the related fixed asset investments, depreciation/

amortisation increased by 32.1% to EUR 6.2 million in the second quarter of 2013/14. Compared to the first three months of the current fiscal year, depreciation/amortisation rose by only 3.0% in the second quarter.

Based on the increased profitability in Q2 2013/14, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by an impressive 23.9% to EUR 37.5 million (Q2 2012/13: EUR 30.3 million). Accordingly, the EBITDA margin climbed from 13.8% to 16.9% on a quarterly basis.

The operating result after depreciation/ amortisation (EBIT) amounted to EUR 313 million, up 22.3% on the prior year quarter. The EBIT margin improved notably from 11.7% to 14.2% on a quarterly basis.

The financial result deteriorated from EUR 0.8 million to EUR 1.3 million on a quarterly basis. The increase is attributable to the November 2013 issue of a EUR 75 million note loan to finance the new logistic centre. Interest on the note loan has been charged since Q1 2013/14 and led to an increase in the company’s interest expenses. Compared to the first quarter of the current fiscal year, the Q2 financial result remained almost unchanged.

Net income after taxes amounted to EUR

21.1 million (Q2 previous year: EUR 17.8

million). Accordingly, earnings per share

for the second quarter of 2013/14 stood

at EUR 0.46 (Q2 2012/13: EUR 0.39).


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H1 2013/14

With sales revenues in the first half of

2013/14 up by 2.2% on the previous

year, the GERRY WEBER Group’s gross

margin improved from 52.3% to 55.0%.

This is mainly attributable to the higher

share of the Retail segment, which

increased by 4.5 percentage points to

45.7%. Moreover, optimised inventory

management in the company-managed

stores led to better inventory turnover,

which also had a positive impact on the

company’s profitability.

Due to the above factors and the Group’s

flexible procurement policy, the cost of

materials advanced slightly by 3.2% to

EUR 190.3 million compared to the first

half of the previous year (H1 2012/13:

EUR 184.5 million).

Personnel expenses rose to EUR 73.0

million (+5.4%) in the first half of

2013/14, which is attributable to the

newly opened company-managed stores

and the inclusion of the Belgian Houses

of GERRY WEBER in the Retail

segment. At 17.7%, personnel expenses

as a percentage of sales remained

almost constant compared to the first half

of the previous year, which reflects strict

cost management in all business

segments. The headcount increased

from 4,725 to 4,866 on a half-year

average.

At EUR 98.9 million, other operating

expenses in the first half of 2013/14 were

up by 3.8%. The increase is primarily

due to higher rental expenses resulting

from the newly opened company-

managed stores and the inclusion of the

rent payments for the Belgian Houses of

GERRY WEBER.

Earnings before interest, taxes,

depreciation and amortisation (EBITDA)

in the first six months of the current fiscal

year amounted to EUR 61.8 million,

which represents an impressive 15.6%

increase on the first six months of the

previous year.

After depreciation/amortisation (EUR

12.3 million), the operating result (EBIT)

amounted to EUR 49.5 million. This

means that the increase in EBIT at

14.2%, was much higher than both the

increase in sales revenues (+2.2%) and

the gross result (+7.4%). This

impressively reflects the company’s strict

cost management. The EBIT margin

stood at 12.0% in the six-month stage

2013/14, compared to 10.7% in the first

six months of the previous year.

Net income after taxes amounted to EUR

32.7 million at the six-month stage of the

current fiscal year (H1 2012/13: EUR

29.3 million). Accordingly, earnings per

share climbed from EUR 0.64 to EUR

0.71.


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NET WORTH POSITION

Primarily due to the issue of a note loan, GERRY WEBER International AG’s balance sheet grew by 18.6% to EUR 630.7 million as of 30 April 2014 compared to the end of the previous fiscal year (31 October 2013: EUR 531.6 million). The note loan in the amount of EUR 75 million was issued in November 2013. It serves to finance the planned logistic centre as well as general corporate purposes. The excellent creditworthiness of the GERRY WEBER Group and its operational strength allowed the company to take advantage of the low interest rates and place the fixed-interest tranches at an average interest rate of 2.3%. Oversubscribed several times, the note loan was issued at 100% of the nominal value and will be repaid at the end of the respective term. Investors could choose between terms of three, five and seven years as well as fixed and variable interest rates.

On the assets side of the balance sheet,

property, plant and equipment increased

by 2.7% compared to the end of the

fiscal year 2012/13 and totalled EUR

170.3 million. This is mainly attributable

to the purchase of a piece of land for the

new logistic centre in Halle/Künsebeck.

As a result, total fixed assets, which

comprise intangible assets (EUR 69.2

million), the Hall 30 investment property

(EUR 27.0 million), property, plant and

equipment (EUR 170.3 million) and

financial assets (EUR 2.4 million),

increased by EUR 3.2 million to EUR

268.9 million.

Due to our production and delivery

cycles and the expansion of our store

network in Germany and abroad,

inventories were up by 6.0% to EUR

118.1 million at the six-month stage of

the current fiscal year compared to the

end of the previous fiscal year. Current

trade receivables rose from EUR 65.8

million on 31 October 2013 to EUR 71.4

million on 30 April 2014.

Bolstered by the issue of the EUR 75

million note loan and the cash flow from

operating activities, the company’s liquid

funds grew by EUR 76.2 million to EUR

141.8 million, a sharp increase compared

to the end of the fiscal year 2012/13.

The equity capital of GERRY WEBER

International AG rose from EUR 395.8

million on 31 October 2013 to EUR 427.2

million at the six-month stage 2013/14.

Against the background of the above-

mentioned balance sheet growth, the

equity ratio declined from 74.4% at the

end of the fiscal year 2012/13 to 67.7%.

Non-current financial liabilities climbed

sharply from EUR 5.7 million to EUR

78.6 million, which is attributable to the

issue of the note loan. Other non-current

liabilities in the amount of EUR 24.5

million are the result of the majority

shareholdings in the Dutch and Belgian

Houses of GERRY WEBER and

concession stores. The GERRY WEBER


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Group holds 51% in the companies

operating these stores. As there is a

mutual option right for the acquisition of

the remaining 49%, the anticipated

purchase price of these shares is

recognised under “Other non-current

liabilities”.

Current liabilities amounted to EUR 82.6

million as of 30 April 2014 (31 October

2013: EUR 87.4 million). The moderate

decline is primarily attributable to a slight

reduction in personnel provisions (EUR -

2.8 million). Trade liabilities remained

almost unchanged at EUR 29.5 million

(31 October 2013: EUR 30.3 million).

As liquid funds of EUR 141.8 million

clearly exceed the company’s current

liabilities of EUR 82.6 million, resulting in

a surplus of liquid funds of EUR 59.2

million as of 30 April 2014. This and an

equity ratio of 67.7% mean that the

balance sheet structure of GERRY

WEBER International AG continues to be

extremely solid.

FINANCIAL ASSETS AND

INVESTMENTS

Due to the increased earnings before

interest and taxes in H1 2013/14 cash

flow from operating activities also picked

up by 22.6% to EUR 20.9 million (30

April 2013: EUR 17.1 million). This

clearly reflects the continued operational

strength of the GERRY WEBER Group.

Against the background of slightly

increased interest payments resulting

from the issue of the note loan (EUR 1.4

million), cash flow from current

operations amounted to EUR 19.0

million. This represents an increase of

20.2% compared to 30 April 2013.

Cash outflow from investing activities

increased by a moderate EUR 1.4 million

to EUR 15.6 million, which is primarily

attributable to increased investments in

property, plant and equipment. Besides

the usual expansion investments in new

company-managed stores, the piece of

land for the construction of the new

logistic centre was acquired in the

second quarter of 2013/14.

Cash flow from financing activities

amounted to EUR 72.7 million in the first

six months of the fiscal year and

primarily comprises the proceeds from

the issue of the note loan as well as

scheduled repayments of pre-existing

non-current financial liabilities.

Based on the positive business

development and the resulting improved

profitability of the GERRY WEBER

Group as well as the proceeds from the

issue of the note loan, cash and cash

equivalents rose sharply by EUR 76.2

million to EUR 141.8 million.


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SEGMENT REPORT

GERRY WEBER International AG distinguishes between two main segments, “Production and Wholesale" and “Retail", as well as “Other segments”. The Wholesale segment comprises all distribution structures with external specialist retailers as well as all development and production processes for our merchandise including transport and logistics. The “Retail“ segment is almost exclusively a distribution segment and includes all company-managed Houses of GERRY WEBER, mono-label stores, concession shops, outlet stores as well as the individual national online shops. “Other segments” mainly comprise the income and expenses as well as the assets and liabilities of the Hall 30 investment property. Income and expenses as well as assets and liabilities of the holding company are allocated proportionately to the Wholesale and Retail segments.

As Wholesale sales revenues declined by 5.6% to EUR 224.1 million in the first half of 2013/14, the Wholesale segment’s earnings before taxes (EBT) also dropped by 5.8% to EUR 31.5 million (H1 previous year: EUR 33.4 million).

With net 10 franchised Houses of GERRY WEBER opened in the first half of 2013/14, the number of franchised stores outside Germany increased to 281. At 1,245, the Wholesale segment’s

headcount remained unchanged in spite of the ongoing internationalisation.

As of 30 April 2014, the assets attributable to the Wholesale segment were up by 32.8% on the end of the fiscal year 2012/13 to EUR 462.2 million. Accordingly, the Wholesale segment’s liabilities also picked up to EUR 94.1 million (H1 previous year: EUR 46.5 million). In this context, it should be noted that part of the assets and liabilities of the holding segment are assigned to this segment. The figures for the first six months of the previous year include neither the majority takeover of the Belgian operating companies nor the issue of the EUR 75 million note loan.

Long-term investments in the Wholesale segment amounted to EUR 6.5 million, which means that investments increased by 38.8% compared to 30 April 2013.

The expansion of the company-managed

Retail stores in the past two fiscal years

made an important contribution to the

Retail segment’s positive sales trend in

the first half of 2013/14. Together with

the 5.2% increase in like-for-like sales in

the first half of the current fiscal year, this

sent the Retail segment’s sales revenues

rising by 13.3% to EUR 188.6 million (H1

2012/13: EUR 166.6 million).

The first quarter of the current fiscal year

was primarily influenced by the shift of

the winter sale to January 2014. While

most of last year’s winter discounts


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occurred in February (Q2), the current

fiscal year saw most discounts granted

already in January (Q1). Thus profitability

also increased disproportionately in Q2

2013/14 as Retail revenues were still up

by an impressive 12.3% to EUR 90.9

million and. Accordingly, earnings before

taxes (EBT) rose from EUR 2.4 million in

the second quarter of the previous year

to EUR 10.9 million. The Retail

segment’s EBT for the first six months of

2013/14 totalled EUR 13.9 million, up

from EUR 4.5 million in the previous

year.

In the first six months of the current fiscal

year, net ten new Houses of GERRY

WEBER/ were opened, while three

mono-label stores were closed. As of 30

April 2014, the company operated a total

of 434 Houses of GERRY WEBER and

141 mono-label stores. In addition, there

are 111 concession stores, 25 outlet

stores (+3) as well as five country-

specific online shops. Due to

construction delays, not all stores that

were planned to be opened in the first

half of the year could be completed.

The expansion of the Retail operations

led not only to an increase in

depreciation/amortisation to EUR 7.2

million (+48.3%) but also to a rise in the

Retail segment’s assets to EUR 259.0

million (+11.9%). Accordingly, the

segment’s liabilities climbed to EUR

223.2 million (30 April 2013: EUR 165.2

million).

OPPORTUNITY AND RISK REPORT

Just like any other enterprise, GERRY

WEBER International AG is exposed to

various opportunities and risks in the

context of its business activities. External

and internal factors may have a positive

or negative impact on the company’s

sales and earnings.

To ensure that opportunities and risks

are identified at an early stage, the

Managing Board of GERRY WEBER

International AG has installed a

comprehensive risk management system

and additionally initiated strategic

measures to minimise new risks and

control existing ones. The aim is to

identify positive future developments at

an early stage and to seize the resulting

opportunities in the interest of the

company. In the context of our

opportunity management approach, we

analyse market and competitor data,

keep an eye on demographic

developments and monitor upcoming

fashion trends.

Besides various other measures, we

attach great importance to evaluating our

market prospects in the individual

countries in order to respond in a timely

manner to changing circumstances. By

pushing ahead our regional

diversification, we continue to minimise

our dependence on economic

developments in individual regions.


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As a large global fashion company and in

order to remain competitive on an

international level, we source our

merchandise from many different

countries and regions of the world. It is

an integral element of GERRY WEBER’s

corporate strategy to buy only high-

quality goods produced under socially

and environmentally compatible

conditions. To identify the “black sheeps”

among the producers, we cooperate with

recognised test institutes such as the

Business Social Compliance Initiative

(BSCI) and have also established our

own unit to perform local checks several

years ago. Before entrusting a new

producer with the manufacture of our

products, GERRY WEBER employees

perform local checks to ensure that our

standards and requirements are met.

Only if these checks are passed, will we

sign a manufacturing contract with a new

supplier. Existing manufacturing partners

are reviewed regularly as to whether

their production and working conditions

have changed.

In addition, all suppliers must sign an

undertaking to comply with social

standards. If they fail to do so or if they

breach this agreement, we will no longer

work with these manufacturers. We take

great care to ensure that our products

are produced only by those

manufacturers who comply with our

requirements regarding working and

social conditions as well as our quality

standards.

For a detailed description of our risk

management system, the control

systems for the accounting processes

and the opportunities and risks in the

GERRY WEBER Group, please refer to

the risk report in the 2012/13 Annual

Report. The statements made in this risk

report remain valid.

Since the beginning of the fiscal year

2013/14, no material changes have

occurred regarding the opportunity risks

to our company’s future. Based on

current knowledge, there are no risks

that could jeopardise the continued

existence of the GERRY WEBER Group.

POST-BALANCE SHEET EVENTS

With effect from 1 June 2014, GERRY

WEBER International AG acquired eight

established Houses of GERRY WEBER

and 17 multi-label stores from its

franchising partner in Norway. As part of

the transaction, GERRY WEBER will

acquire a 100% shareholding in the

company operating these stores. The

purchase price totals approx. NOK

115.75 million (approx. EUR 14 million).

The attainment of certain pre-defined

sales and earnings targets in the fiscal

year 2018 will trigger an earn-out plan

involving special payments of a

maximum of NOK 20 million.

As of 1 June 2014, the acquired

companies will be included in the


17

consolidated financial statements of the

GERRY WEBER Group and be counted

towards the Retail segment. The

transaction confirms the GERRY

WEBER Group’s strategy of expanding

its own Retail operations in selected

European core markets.

FORECAST REPORT

Economic situation and industry environment

As a fashion and lifestyle company, GERRY WEBER International AG is exposed to the spending mood of end consumers in the individual sales regions. Consumer spending is influenced, on the one hand, by the economic situation and private households' income trend and, on the other hand, by factors such as the weather or special events such as a Soccer World Cup. In spite of the ongoing regional diversification, 5.2% of the company’s sales revenues were generated in Germany in the first six months of the fiscal year 2013/14.

While global output increased by 3% last year, the Institute for the World Economy expects the upward trend to stabilise and global output to grow by 3.6% this year. However, structural problems in the emerging countries may slow down the recovery of the world economy in the medium term. Also, the recovery remains susceptible to politically induced setbacks, as the risk situation has

deteriorated primarily due to Russia’s intervention in Ukraine and the resulting confrontation.

In the eurozone, the crisis seems to have passed its peak and the first economic upward trends can be identified. In particular, Portugal, Spain and Italy reported the first increase in aggregate economic output in several years. The economy also recovered in Belgium, the Netherlands and Austria. Consumers are hoping that the global economic crisis will end for good this year. This trend is also confirmed by the economic data of the GfK. While the French economy has started to recover at a low level, economic outlooks in the UK and Spain are the best in 16 and 14 years, respectively. People in Poland and the Czech Republic are anticipating growing incomes, and consumer expectations have improved clearly also in the Netherlands and Slovakia. Austria was the only country to report an inconsistent sentiment, as economic expectations declined while income prospects have picked up.

The economic situation in Russia remains uncertain, not only because of the political consequences of the Crimea crisis and the weak rouble. The gross domestic product increased by only 1.3% in 2013, which – except for 2008, the crisis year – was the lowest growth rate since 1998. The weak rouble may lead to declining consumer demand in the short to medium term.


18

The Institute for the World Economy (ifW) and the OECD are optimistic for Germany’s future, as is reflected in projected growth rates of 1.7% and 2.0% for 2014 and 2015, respectively. Based on these very good economic conditions, the GfK results also paint a positive picture for Germany. According to the GfK’s May study, consumer confidence, as an overall indicator, stayed at a constantly high level of 8.5 points over the past four months.

Income expectations, which are one component of the overall indicator, declined from the previous month’s post-reunification high to 47.8 points, while buying propensity in Germany decreased moderately from a seven-year high of 55 points in March to 49.5 points in May. But the still high level of buying and consumption propensity has benefited retailers only partially. In the first quarter of 2014, it was primarily the real estate sector and the services sector which seemed to profit from the low interest rates.

Industry environment

After a mixed year-end, with sales growing by 5% in November and declining by 4% in December, the start to the calendar year 2014 was positive throughout, according to TW-Testclub, a panel of German trade magazine Textilwirtschaft. Sales increases of 2% in January, 5% in February and 8% in March nurtured hopes that April would be equally positive. But the high expectations, which were also

attributable to the calendar effect and the fact that this year’s Easter fell in April, were not met. The sales growth was based on relatively low sales figures in the previous year. After a 5% decline in April, TW-Testclub reported an accumulated average increase of 1-2% for the calendar year to date. Reporting an increase of 5.2% in like-for-like sales, GERRY WEBER International AG performed better than the market as a whole.

The management of GERRY WEBER International AG expects the European economy as a whole to improve slightly in the coming months. Consumer spending in Europe is anticipated to remain constant overall. Provided that the weather is in line with the respective seasons, we anticipate a positive overall environment for our business.

für 2014 und 2,0 % für 2015 sehen das Institut für Weltwirtschaft ifW und die OECD für Deutschland optimistisch in die Zukunft. Ausgehend von diesen sehr guten wirtschaftlichen Rahmen-bedingungen zeichnen auch die Ergebnisse der GfK für Deutschland ein positives Bild. Laut der Studie der GfK aus dem Monat Mai verharrte das Konsumklima als Gesamtindikator in den vergangenen vier Monaten auf einem konstant hohen Niveau von 8,5 Punkten.


19

Business prospects and guidance

In the first half of the fiscal year 2013/14, we have shown that we are well on track to reach the targets we have set ourselves for 2013/14. Due to our unique brand positioning, our operational strengths, our customer structure and, most importantly, the international growth opportunities, the “GERRY WEBER growth story” remains intact. We will therefore stick to our strategies:

The strategic positioning of the GERRY WEBER Group is focused, on the one hand, on the further expansion, especially outside Germany, and, on the other hand, on the ongoing vertical integration of the business model. For our strategic positioning and our operations, this will mean the following in the coming months:

- Expansion of the Retail operations, especially in European countries outside Germany

- Ongoing internationalisation of the distribution structures and, in this context, expansion of the global market presence

- Increase the international market penetration of TAIFUN and SAMOON

- Ongoing vertical integration through the reinforcement of the Retail segment, the concession store model and the maximum

order limit arrangements in the Wholesale segment

- Development and expansion of the multi-channel concept through the start-up of the company’s own logistic warehouse

We will continue to expand the Retail segment by opening company-managed Houses of GERRY WEBER but also other vertical distribution structures such as concession stores. The expansion will remain focused on neighbouring European countries as well as Scandinavia and Eastern Europe.

We also intend to grow our Wholesale segment and will open further Houses of GERRY WEBER and shop-in-shops together with franchisees and distribution partners, primarily outside the eurozone. The main target regions are Russia, the Middle East and North America.

Besides the ongoing expansion, vertical integration is another key element of our strategic positioning. We aim to exert greater influence on what products our customers specify for their stores and to get our collections to the retail outlets as quickly as possible. We want to provide our Wholesale partners with more support in optimising their space management. We offer our distribution partners to take advantage of our expertise and our knowledge in the form of our maximum order limit arrangements, under which the customer merely specifies an order limit and our


20

experts choose the products for the customer’s respective store.

Over the past years, we have laid the foundation to turn from a mere fashion wholesaler to a vertically integrated fashion and lifestyle corporation. The collections have been streamlined and the collection intervals have been changed to six collections per year. This puts us in a position where we can further accelerate the injection of consecutive new fashion trends into the stores even within a single season while

optimising our inventory management at the same time.

We implemented our strategies with great determination over the past years and will pursue them aggressively in the months and years ahead in order to allow the GERRY WEBER Group to continue growing. After the first six months of the fiscal year 2013/14, we will - as outlined above - stick to the targets we have set ourselves and continue to project sales revenues of at least EUR 900 million and EBIT of at least EUR 120 million.


21

Q2 2013/14 Q2 2012/13 H1 2013/14 H1 2012/13

in KEUR 01.02. - 30.04.2014 01.02. - 30.04.2013 01.11.2013 - 30.04.2014 01.11.2012 - 30.04.2013

Sales 222,397.9 218,988.0 412,777.1 403,884.0

Other operating income 2,544.8 3,149.9 7,164.5 7,143.6

Changes in inventories -9,208.0 -22,353.8 4,657.0 -8,052.9

Cost of materials -88,738.1 -85,685.4 -190,339.8 -184,472.9

Personnel expenses -36,899.2 -34,429.9 -73,003.0 -69,268.4

Depreciation/Amortisation -6,220.3 -4,710.4 -12,262.2 -10,069.8

Other operating expenses -52,328.2 -49,152.9 -98,916.7 -95,284.5

Other taxes -287.4 -252.4 -560.3 -512.8

OPERATING RESULT 31,261.5 25,553.1 49,516.6 43,366.2

Financial result

Income from long-term loans 1.0 1.5 2.0 3.3

Interest income 84.1 26.8 120.2 46.2

Incidential bank charges -346.7 -241.2 -618.2 -432.6

Interest expenses -1,088.2 -597.0 -2,205.5 -1,196.7

-1,349.9 -810.0 -2,701.5 -1,579.8

RESULTS FROM ORDINARY ACTIVITIES 29,911.6 24,743.1 46,815.1 41,786.4

Taxes on income

Taxes of the reporting period -9,099.7 -7,437.3 -14,294.5 -12,696.7

Deferred taxes 306.5 467.7 188.1 233.0

-8,793.2 -6,969.6 -14,106.4 -12,463.7

NET INCOME OF THE REPORTING PERIOD 21,118.4 17,773.5 32,708.7 29,322.7

Earnings per share ( basic) 0.46 0.39 0.71 0.64

for the Second Quarter 2013/14 (1 February 2014 - 30 April 2014)

CONSOLIDATED INCOME STATEMENT (IFRS) in EUR'000

and the First Half 2013/14 (1 November 2013 - 30 April 2014)


22

CONSOLIDATED BALANCE SHEET (IFRS) in EUR'000

ASSETS

H1 2013/14 2012/13

in KEUR 30. April 2014 31. Oct. 2013

NON-CURRENT ASSETS

Fixed Assets

Intangible assets 69,177.1 70,090.2

Property, plant and equipment 170,317.1 165,909.9

Investment properties 27,043.4 27,251.9

Financial assets 2,382.0 2,379.3

Other non-current assets

Trade receivables 159.3 239.0

Income tax claims 1,666.4 1,666.4

Deferred tax assets 7,033.1 7,316.9

277,778.4 274,853.6

CURRENT ASSETS

Inventories 118,119.3 111,467.0

Receivables and other assets

Trade receivables 71,389.7 65,835.2

Other assets 18,415.7 11,968.8

Income tax claims 3,222.9 1,913.2

Cash and cash equivalents 141,784.4 65,592.0

352,932.0 256,776.2

TOTAL ASSETS 630,710.4 531,629.8

as of 30 April 2014


23

CONSOLIDATED BALANCE SHEET (IFRS) in EUR'000

EQUITY AND LIABILITIES

H1 2013/14 2012/13

in KEUR 30. April 2014 31. Oct. 2013

EQUITY

Share capital 45,906.0 45,906.0

Capital reserve 102,386.9 102,386.9

Retained earnings 195,341.7 195,341.7

Accumulated other comprehensive income/loss acc. to IAS 39 -5,296.5 -4,223.9

Exchange differences -402.1 -225.5

Accumulated profits 89,290.3 56,581.5

427,226.3 395,766.7

NON-CURRENT LIABILITIES

Provisions for personnel 35.7 60.7

Other provisions 5,661.6 5,479.1

Financial liabilities 78,571.4 5,725.0

Other liabilities 24,525.1 24,836.7

Deferred tax liabilities 12,057.9 12,354.5

120,851.7 48,456.0

CURRENT LIABILITIES

Provisions

Tax liabilities 759.0 1,920.3

Provisions for personnel 10,337.2 13,150.0

Other provisions 8,771.0 8,273.4

LIABILITIES

Financial liabilities 5,870.7 6,008.2

Trade payables 29,450.9 30,330.8

Other liabilities 27,443.6 27,724.4

82,632.4 87,407.1

TOTAL EQUITY AND LIABILITIES 630,710.4 531,629.8

as of 30 April 2014


24

H1 2013/14 Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensive differences profits

in KEUR income/loss

As of 1 November 2013 45,906.0 102,386.9 195,341.7 -4,223.9 -225.6 56,581.5 395,766.7

Allocation of retained earnings of the AG from the net income of the year

Adjustments of exchange differences -176.5 -176.5

Changes in equity acc. to IAS 39 -1,072.5 -1,072.5

Net income of the reporting period 32,708.7 32,708.7

As of 30 April 2014 45,906.0 102,386.9 195,341.7 -5,296.4 -402.1 89,290.2 427,226.3

H1 2012/13 Capital stock Capital Retained Accumulated Exchange Accumulated Equityreserves earnings other comprehensive differences profits

in KEUR income/loss

As of 1 November 2012 45,906.0 102,386.9 140,341.7 -212.5 -400.5 74,983.1 363,004.7

Allocation of retained earnings of the AG from the net income of the year

0.0

Adjustments of exchange differences -153.4 -153.4

Changes in equity acc. to IAS 39 1,202.9 1,202.9

Net income of the reporting period 29,322.7 29,322.7

As of 30 April 2013 45,906.0 102,386.9 140,341.7 990.4 -553.9 104,305.8 393,376.9

STATEMENT OF CHANGES IN GROUP EQUITY (IFRS) in EUR'000for the First Half 2013/14 (1 November 2013 - 30 April 2014)


25

CONSOLIDATED CASH FLOW STATEMENT (IFRS) in EUR'000

H1 2013/14 H1 2012/13

in KEUR 01.11.2013 - 30.04.2014 01.11.2012 - 30.04.2013

Operating result 49,516.6 43,366.2

Depreciation / amortisation 12,262.2 10,069.8

Profit / loss from the disposal of fixed assets 3.5 -7.9

Increase / decrease in inventories -6,652.3 5,509.0

Increase / decrease in trade receivables -5,474.8 -583.7

Increase / decrease in other assets that do not fall under investing or financing activities

-6,688.5 -1,154.8

Increase / decrease in provisions -2,157.7 -6,316.3

Increase / decrease in trade payables -879.9 -13,995.0

Increase / decrease in other liabilities that do not fall under investing or financing activities

-2,878.6 -3,055.3

Income tax payments -16,130.5 -16,772.9

Other non-cash effective income/expenses 0.0 0.1

CASH INFLOWS FROM OPERATING ACTIVITIES 20,920.0 17,059.2

Income from loans 2.0 3.4

Interest income 120.2 46.2

Incidential bank charges -618.2 -432.6

Interest expenses -1,386.5 -841.7

CASH INFLOWS FROM CURRENT OPERATING ACTIVITIES 19,037.5 15,834.5

Proceeds from the disposal of properties, plant, equipment and intangible assets

84.9 22.6

Cash outflows for investments in property, plant, equipment and intangible assets

-15,604.0 -14,240.9

Cash outflows for investments in investment properties -32.2 -161.2

Proceeds from the disposal of financial assets 83.5 209.4

Cash outflows for investments in financial assets -86.2 0.0

CASH OUTFLOWS FROM INVESTING ACTIVITIES -15,554.0 -14,170.1

Proceeds of the sale of own shares 0.0 0.0

Raising / repayment of financial liabilities 72,708.9 -2,620.6

CASH OUTFLOWS FROM FINANCING ACTIVITIES 72,708.9 -2,620.6

Changes in cash and cash equivalents 76,192.4 -956.3

Cash and cash equivalents at the beginning of the fiscal year 65,592.0 49,159.1

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 141,784.4 48,202.8

for the First Half 2013/14 (1 November 2013 - 31 January 2014)


26

Explanatory notes on the interim consolidated financial statements of GERRY WEBER International AG for the

period ended 30 April 2014 (first six months of the fiscal year 2013/14)

General information and accounting basis

GERRY WEBER International AG is a listed joint stock company headquartered in

Neulehenstraße 8, D – 33790 Halle (Westphalia/Germany).

The present abridged consolidated financial statements were prepared pursuant to section 37x

para. 3 WpHG in conjunction with § 37w para. 2 WpHG as well as in accordance with the

International Financial Reporting Standards (IFRS) and the related interpretations by the

International Accounting Standards Board (IASB) for interim financial reporting such as they

have been adopted by the European Union. Accordingly, these financial statements do not

contain all information and notes that are required for year-end consolidated financial

statements pursuant to IFRS.

The interim consolidated financial statements for the second quarter 2013/14 (1 November

2013 – 30 April 2014) were prepared in accordance with IAS 34 “Interim Financial Reporting“

and were not reviewed by the auditors. The accounting and valuation methods and the

principles of consolidation have basically remained unchanged compared to the latest

consolidated financial statements for the year ended 31 October 2013. The interim

consolidated financial statements for the second quarter and the first half of the fiscal year

2013/14 were prepared in Euros.

The Managing Board is of the opinion that the present unaudited interim consolidated financial

statements contain all necessary information to give a true and fair view of the business

performance and the earnings position in the reporting period. The results achieved in the first

six months of the financial year 2013/14 (1 November 2013 – 30 April 2014) do not necessarily

provide an indication as to the future results.

Pursuant to IAS 34 “Interim Financial Reporting“, the Managing Board must make

discretionary decisions, estimates and assumptions in the preparation of the interim

consolidated financial statements. These may influence the application of accounting

standards and the recognition of assets and liabilities as well as income and expenses. The

actual results may differ from these estimates in individual cases.

The present interim consolidated financial statements comprise the interim financial

statements of GERRY WEBER International AG and all its subsidiaries for the period ended


27

30 April 2014. The subsidiaries are fully consolidated. As of the reporting date, the basis of

consolidation comprises 33 subsidiaries. In five of its subsidiaries abroad GERRY WEBER

International AG holds 51% interest stake; in the rest the company holds 100%. All

subsidiaries have been integrated into the consolidated financial statements in accordance

with the rules for full consolidation.

Currency translation

The functional currency of GERRY WEBER International AG is the euro. Foreign currency

transactions in the separate financial statements of GERRY WEBER International AG and its

subsidiaries are translated at the exchange rates prevailing at the time of the transaction. As of

the balance sheet date, monetary items in foreign currency are shown at the closing rate.

Exchange differences are recognised in profit or loss.

The interim financial statements of the consolidated Group companies prepared in foreign

currencies are translated according to the concept of the functional currency using the

modified closing rate procedure. Accordingly, assets and liabilities, with the exception of equity

capital, are translated at the closing rate, while income and expenses are translated at the

average annual exchange rate. Effects from the currency translation of the equity capital are

recognised in equity.

Intangible assets

Goodwill is recognised in accordance with IFRS 3 and tested for impairment on an annual

basis and whenever there are indications of impairment.

Purchased intangible assets are recognised at cost, taking ancillary costs and cost reductions

into account, and amortised using the straight-line method. Furthermore, the item includes

exclusive rights of supply to Houses of GERRY WEBER operated by third parties as well as

advantageous lease agreements resulting from acquired stores. The advantageous lease

agreements recognised as depreciable intangible assets are written down over the remaining

term of the leases using the straight-line method. In addition, customer relationships were

identified in the context of the takeover of 51% shares in three Belgian and two Dutch

companies, which have been recognized at the present value.

Due to the majority takeover in three Belgian companies in August 2013, intangible assets

increased from EUR 48.5 million to EUR 70.1 million as of 31 October 2013 in comparison to

the previous year. At the end of Q2 2013/14 (30 April 2014) intangible assets decreased to

EUR 69.2 million due to straight-line depreciations.


28

Accumulated other comprehensive income / loss

The GERRY WEBER International AG Group holds derivative financial instruments only to

hedge currency risks arising from operations. According to IAS 39, all derivative financial

instruments must be recognised at their fair value. If the financial instruments used are

effective hedges in the context of a hedging relationship as defined in IAS 39 (cash flow

hedges), fluctuations in the fair value have no effect on profit or loss during the term of the

derivative. Fluctuations in the fair value are recognised in the respective equity item. The

effects of the remeasurement of financial instruments accounted after taxes. As at 30 April

2014 effects of the fluctuations in the fair value of financial instruments were recognised after

deferred taxes in the respectively equity item in an amount of EUR -5.3 million (31 October

2013: EUR -4.2 million).

Financial liabilities (non-current)

As at 30 April 2014 non-current financial liabilities increased in comparison to the end of fiscal

2012/13 from EUR 5.7 million to EUR 78.6 million. The increase is due to the issuance of a

EUR 75 million note loan in November 2013, which will be used, among other things, to

finance the planned logistic centre as well as general working capital requirements.

Oversubscribed several times, the note loan was issued at 100% of the nominal value and will

be repaid at the end of the respective term. Investors could choose between terms of three,

five and seven years as well as fixed and variable interest rates. The average fixed interest

rate is 2.3%.

Other liabilities (non-current)

GERRY WEBER International AG holds 51% of the shares in the Dutch GERRY WEBER

Retail B.V. and GERRY WEBER Incompany B.V. as well as in the Belgian ARW Retail –

GERRY WEBER NV, Coast Retail – GERRY WEBER NV and ARW – GERRY WEBER Belux

BVBA. The acquired companies sell textiles at retail level and operated retail stores as well as

concession shops in the Netherlands and Belgium. For the remaining 49% shares in the

named companies, Gerry Weber International AG has a call option, while the seller has a put

option. Pursuant to IAS 32, these obligations must be recognised at fair value. Liabilities from

minority options were recognised under other non-current liabilities and amounted to EUR 24.5

million on 30 April 2014 (31 October 2013: EUR 24.8 million).


29

Earnings per share

Earnings per share are determined on the basis of the net income for the period after taxes

that is attributable to the shareholders of GERRY WEBER International AG and the average

number of shares outstanding in the reporting period.

The average number of shares outstanding is determined on a pro-rata temporis basis as

shown below.

Accordingly, earnings per share of Q2 2013/14 (1.02.2013 – 30.04.2014) amounted to EUR

0.46 (Q2 previous year: EUR 0.39). Thus earnings per share amount to EUR 0.71 for the first

half of the fiscal year 2013/14. (H1 2012/13: EUR 0.64).

Segment reporting

GERRY WEBER International AG distinguishes in two main segments: “Production and

Wholesale“ and “Retail“ as well as in “other segments”. The Wholesale segment comprises all

distribution structures with external customers; these include the franchised Houses of GERRY

WEBER worldwide, the shop-in-shops in our retail partners’ stores as well as the multi-label

business. The ”Production and Wholesale“ segment also comprises all development and

production processes for our merchandise, including transport and logistics. The “Retail“

segment is almost exclusively a distribution segment and includes all company-managed

Houses of GERRY WEBER, monolabel stores, concession shops, outlet stores as well as the

individual national online shops. Other segments comprises in particular earnings and

expenses as well as assets and liabilities of our investment property „Hall 30”.

H1 2013/14 H1 2012/13

1.11.2013-30.4.2014 1.11.2012-30.4.2013

November 2013 45.905.960 x 1/12 45.905.960 x 1/12

December 2013 45.905.960 x 1/12 45.905.960 x 1/12

January 2014 45.905.960 x 1/12 45.905.960 x 1/12

February 2014 45.905.960 x 1/12 45.905.960 x 1/12

March 2014 45.905.960 x 1/12 45.905.960 x 1/12

April 2014 45.905.960 x 1/12 45.905.960 x 1/12

= 45.905.960 units = 45.905.960 units


30

2nd Quarter 2013/14 Ladiesware Ladiesware Other Consolidated Totalproduction and Retail segments entries

in KEUR wholesale oberbekleidung

Sales by segment 131.484,2 90.913,7 0,0 0,0 222.397,9

EBT (Earnings Before Tax) 19.247,2 10.870,6 595,5 -801,6 29.911,7

Depreciation of property, plant and equipment 2.402,5 3.670,1 147,8 0,0 6.220,4

Interest income 135,7 22,6 0,0 -74,2 84,1

Interest expenses 336,7 563,5 0,0 188,1 1.088,3

Assets 462.242,2 259.043,3 29.941,2 -120.516,4 630.710,3

Liabilities 94.061,7 223.158,3 -113.627,4 203.592,6

Investments in non-current assets 4.128,8 4.032,5 3,1 0,0 8.164,4

Number of employees (30 April 2014) 1.245 3.620 1 0 4.866

2nd Quarter 2012/13 Ladiesware Ladiesware Other Consolidated Totalproduction and Retail segments entries


Sales by segment 138.064,2 80.923,8 0,0 0,0 218.988,0

EBT (Earnings Before Tax) 20.592,2 2.357,9 387,6 1.405,3 24.743,0


Interest income 71,9 0,0 0,0 -45,1 26,8

Interest expenses 359,7 427,3 0,0 -190,0 597,0

Assets 347.961,8 231.448,8 30.056,0 -122.188,6 487.278,0

Liabilities 46.452,9 165.181,4 0,0 -117.733,2 93.901,1

Investments in non-current assets 3.799,6 5.392,9 -1.277,9 0,0 7.914,6



31

A detailed segment report is stated in the management report of this interim report.

Post-balance sheet events

With effect from 1 June 2014, GERRY WEBER International AG acquired eight established

Houses of GERRY WEBER and 17 multi-label stores from its franchising partner in Norway.

As part of the transaction, GERRY WEBER will acquire a 100% shareholding in the company

operating these stores. The purchase price totals approx. NOK 115.75 million (approx. EUR 14

1. Half 2013/14 Ladiesware Ladiesware Other Consolidated Totalproduction and Retail segments entries


Sales by segment 224.134,6 188.642,5 0,0 0,0 412.777,1

EBT (Earnings Before Tax) 31.495,0 13.893,2 917,9 509,1 46.815,2


Interest income 231,2 53,7 0,0 -164,7 120,2

Interest expenses 1.199,9 1.159,1 0,0 -153,4 2.205,6

Assets 462.242,2 259.043,3 29.941,2 -120.516,4 630.710,3

Liabilities 94.061,7 223.158,3 0,0 -113.627,4 203.592,6



1. Half 2012/13 Ladiesware Ladiesware Other Consolidated Totalproduction and Retail segments entries


Sales by segment 237.326,3 166.557,7 0,0 0,0 403.884,0

EBT (Earnings Before Tax) 33.441,9 4.533,0 798,2 3.013,3 41.786,4


Interest income 160,9 0,0 0,0 -114,7 46,2

Interest expenses 894,8 549,2 0,0 -247,3 1.196,7

Assets 347.961,8 231.448,8 30.056,0 -122.188,6 487.278,0

Liabilities 46.452,9 165.181,4 0,0 -117.733,2 93.901,1




32

million). The attainment of certain pre-defined sales and earnings targets in the fiscal year

2018 will trigger an earn-out plan involving special payments of a maximum of NOK 20 million.

As of 1 June 2014, the acquired companies will be included in the consolidated financial

statements of the GERRY WEBER Group and be counted towards the Retail segment. The

transaction confirms the GERRY WEBER Group’s strategy of expanding its own Retail

operations in selected European core markets.


33

Financial Calendar

Investor Relations contact:

GERRY WEBER International AG

Neulehenstraße 8

33790 Halle / Westphalia

www.gerryweber.com

Claudia Kellert Anne Hengelage

Head of Investor Relations Manager Investor Relations

phone: +49 (0) 5201 185 0 phone: +49 (0) 5201 185 0

email: [email protected] email: [email protected]

Disclaimer

This interim report contains forward-looking statements that are based on assumptions and/or

estimates by the management of GERRY WEBER International AG. While it is assumed that

these forward-looking statements are realistic, no guarantee can be given that these

expectations will actually materialise. Rounding differences may occur in the percentages and

figures stated in this report

Publication of the First Quarter Report 2013/14 14 March 2014

Lampe Bank Conference, Baden-Baden 4 April 2014

German MidCap Investment Conference New York 13 / 14 May 2014

Annual General Meeting 4 June 2014

Publication of the First Half Year Report 2013/14 13 June 2014

Publication of the Nine Month Report 2013/14 12 September 2014

End of the fiscal year 2013/14 31 October 2014


34

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