Weak sales Q1 September 2010 – November 2010

2

Håkan Westin, CFO

Christian W. Jansson CEO

Agenda

• Q1 2010/2011

• Market situation

• Conclusions

• Questions

3

Highlights Q1

• Like-for-like sales not up to our

expectations

• Good sales increase from new stores

• 15 stores opened

• Launch of Hampton Republic 27

4

KappAhl Q1: Campaigns during period

Sentimental Journey

4

5

• 360 stores

• 15 stores opened in Q1

• Significant contribution

from new stores in

sales and profit

• 44 new stores under

contract

• Total of 27 stores this

year

99

157 58

43

Prague

Warsaw

Stockholm

Helsinki Oslo

3

Stores November 2010

6

Financial highlights, Q1 September - November 2010

• Net sales MSEK 1 341 (1 344), -0,2%

• Operating profit MSEK 146 (207), -29%

• Gross margin 63,4 (65,0)%

• Operating margin 10,9 (15,4)%

• Net profit MSEK 95 (178), equivalent to

SEK 1.27 (2.37) per share. Last year

included deferred taxes of MSEK 39.

• Cash flow from continuing operations

MSEK 60 (133)

7

Income statement, Q1 September - November 2010

MSEK 2010/11 2009/10

Net Sales 1 341 1 344

Cost of goods sold -491 -470

Gross profit 850 874

Selling expenses -669 -630

Administrative expenses -35 -37

Operating profit 146 207

Financial income 0 0

Financial expense -17 -18

Profit before tax 129 189

Tax expense -34 -11

Net profit 95 178

8

Sales, Q1 September - November 2010

MSEK %

Net sales Q1 2009/10 1 344

New stores net 5,8

Like For Like -3,1

Currency effect -2,9

Net sales Q1 2010/11 1 341 -0,2

9

Sales breakdown, Q1 September - November 2010

MSEK Q1 10/11 Q1 09/10

Change

in SEK

Local

currency

Sweden 726 717 1,3% 1,3%

Norway 358 376 -4,8% 0,2%

Finland 152 166 -8,4% 1,6%

Poland 101 84 20,2% 25,5%

Czech Republic 4 1 300,0% 173,0%

Total 1 341 1 344 -0,2% -

10

Present market situation

• Strong financial development in our

markets

– Industry is the driver

– Retail sales develop slower

– Fashion sales weaker than expected

• Increasing sourcing costs remains a

concern

• Private consumption expected to grow

11

Sales growth

12

Gross margin

13

Operating margin excl. one-offs

14

Return on capital/employed

15

• Business concept – proven long term

stability

• Like-for-like – key focus going forward

• Strong gross margin

• Strong cash flow

– Reduced tax payment going forward

Key conclusion

16

In store now

17

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