ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion...

19
1 ADLER Equity Story ADLER Modemärkte Equity Story November 2017

Transcript of ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion...

Page 1: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

1ADLER Equity Story

ADLER ModemaumlrkteEquity Story

November 2017

2ADLER Equity Story

Investment Summary ADLER Modemaumlrkte is well positioned to face short-term challenges and lift mid- to long-term potentials

Numerous internal and external growth opportunities

New client wins amp development of existing costumers

Online-shop expansion

Significant cost efficiency and profitability improvements

Optimisation of marketing spend

Introduction of new planning system

Restructuring of sales department

Assets Potential

Growing target group

Very loyal customer base (90 of sales

generated via customer card)

Customer knowledge comparable to online

retailers

Own brands as strong USP accounting for

Lean and integrated business model

Solid network of 180+ stores at attractive

locations

Sound balance sheet to finance future growth

3ADLER Equity Story

Lean and vertical integrated business model ndashoptimisation of value added supply chain continues

In-house design team

Focus on own brands

Fashion follower of market proven styles minimising fashion risk

Up to 10 collections per year

Completely outsourced production

Diversified supplier base

Sourcing partnership with

Metro Group Buying (MGB)

NTS Direct

Centralised logistics operations with efficient push-and-pull warehousing system

Organised by BLG (to be replaced by MeyerampMeyerfrom 2019 onwards) MGB and NTS

Focused CRM and marketing

Omni-channel distribution

4 retail formats (retail park shopping center stand alone city center)

Highly flexible modular store system

E-business

Product development Sourcing Logistics Distribution

1 2 3 4

Full information control along the entire value chain

Efficient supply chain management ndash full information control over the entire value chain and high process standardisation

Focus on core value added processes ndash product development and distribution

4ADLER Equity Story

Outstanding value-for-money perception

Fashion follower approach ndashconservative fashion grade management of market proven styles minimizing fashion risk

Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment

Unique brand positionBrand positioning of ADLER

Fashion degreelow high

Up

per

Mid

dle

Dis

co

un

tV

alu

e

Source Company information

Unique brand positioning with strong target group focus 45+

5ADLER Equity Story

Great popularity of ADLER Customer Card reflects high loyalty and supplies ADLER with detailed customer insight

Source Statista nhi2 1005 participants 2013

Which customer cards of textile retailers do you use on a regular basis

1

1

1

2

2

2

3

4

4

7

7

7

Bonita

Ulla Popken

Orsay

Tom Tailor

Woumlhrl

Charles Voumlgele

Ernsting`s Family

Takko

sOliver

PeekampCloppenburg

Esprit

ADLER

Source Finanztest (2010)

38 million active ADLER Customer Card members -gt wide customer database

~ 40000 new Customer Cards every month

90 of revenues generated via Customer Card

Best in class ADLER Customer Card classified best out of 24 loyalty card schemes

Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach

High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 2: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

2ADLER Equity Story

Investment Summary ADLER Modemaumlrkte is well positioned to face short-term challenges and lift mid- to long-term potentials

Numerous internal and external growth opportunities

New client wins amp development of existing costumers

Online-shop expansion

Significant cost efficiency and profitability improvements

Optimisation of marketing spend

Introduction of new planning system

Restructuring of sales department

Assets Potential

Growing target group

Very loyal customer base (90 of sales

generated via customer card)

Customer knowledge comparable to online

retailers

Own brands as strong USP accounting for

Lean and integrated business model

Solid network of 180+ stores at attractive

locations

Sound balance sheet to finance future growth

3ADLER Equity Story

Lean and vertical integrated business model ndashoptimisation of value added supply chain continues

In-house design team

Focus on own brands

Fashion follower of market proven styles minimising fashion risk

Up to 10 collections per year

Completely outsourced production

Diversified supplier base

Sourcing partnership with

Metro Group Buying (MGB)

NTS Direct

Centralised logistics operations with efficient push-and-pull warehousing system

Organised by BLG (to be replaced by MeyerampMeyerfrom 2019 onwards) MGB and NTS

Focused CRM and marketing

Omni-channel distribution

4 retail formats (retail park shopping center stand alone city center)

Highly flexible modular store system

E-business

Product development Sourcing Logistics Distribution

1 2 3 4

Full information control along the entire value chain

Efficient supply chain management ndash full information control over the entire value chain and high process standardisation

Focus on core value added processes ndash product development and distribution

4ADLER Equity Story

Outstanding value-for-money perception

Fashion follower approach ndashconservative fashion grade management of market proven styles minimizing fashion risk

Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment

Unique brand positionBrand positioning of ADLER

Fashion degreelow high

Up

per

Mid

dle

Dis

co

un

tV

alu

e

Source Company information

Unique brand positioning with strong target group focus 45+

5ADLER Equity Story

Great popularity of ADLER Customer Card reflects high loyalty and supplies ADLER with detailed customer insight

Source Statista nhi2 1005 participants 2013

Which customer cards of textile retailers do you use on a regular basis

1

1

1

2

2

2

3

4

4

7

7

7

Bonita

Ulla Popken

Orsay

Tom Tailor

Woumlhrl

Charles Voumlgele

Ernsting`s Family

Takko

sOliver

PeekampCloppenburg

Esprit

ADLER

Source Finanztest (2010)

38 million active ADLER Customer Card members -gt wide customer database

~ 40000 new Customer Cards every month

90 of revenues generated via Customer Card

Best in class ADLER Customer Card classified best out of 24 loyalty card schemes

Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach

High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 3: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

3ADLER Equity Story

Lean and vertical integrated business model ndashoptimisation of value added supply chain continues

In-house design team

Focus on own brands

Fashion follower of market proven styles minimising fashion risk

Up to 10 collections per year

Completely outsourced production

Diversified supplier base

Sourcing partnership with

Metro Group Buying (MGB)

NTS Direct

Centralised logistics operations with efficient push-and-pull warehousing system

Organised by BLG (to be replaced by MeyerampMeyerfrom 2019 onwards) MGB and NTS

Focused CRM and marketing

Omni-channel distribution

4 retail formats (retail park shopping center stand alone city center)

Highly flexible modular store system

E-business

Product development Sourcing Logistics Distribution

1 2 3 4

Full information control along the entire value chain

Efficient supply chain management ndash full information control over the entire value chain and high process standardisation

Focus on core value added processes ndash product development and distribution

4ADLER Equity Story

Outstanding value-for-money perception

Fashion follower approach ndashconservative fashion grade management of market proven styles minimizing fashion risk

Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment

Unique brand positionBrand positioning of ADLER

Fashion degreelow high

Up

per

Mid

dle

Dis

co

un

tV

alu

e

Source Company information

Unique brand positioning with strong target group focus 45+

5ADLER Equity Story

Great popularity of ADLER Customer Card reflects high loyalty and supplies ADLER with detailed customer insight

Source Statista nhi2 1005 participants 2013

Which customer cards of textile retailers do you use on a regular basis

1

1

1

2

2

2

3

4

4

7

7

7

Bonita

Ulla Popken

Orsay

Tom Tailor

Woumlhrl

Charles Voumlgele

Ernsting`s Family

Takko

sOliver

PeekampCloppenburg

Esprit

ADLER

Source Finanztest (2010)

38 million active ADLER Customer Card members -gt wide customer database

~ 40000 new Customer Cards every month

90 of revenues generated via Customer Card

Best in class ADLER Customer Card classified best out of 24 loyalty card schemes

Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach

High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 4: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

4ADLER Equity Story

Outstanding value-for-money perception

Fashion follower approach ndashconservative fashion grade management of market proven styles minimizing fashion risk

Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment

Unique brand positionBrand positioning of ADLER

Fashion degreelow high

Up

per

Mid

dle

Dis

co

un

tV

alu

e

Source Company information

Unique brand positioning with strong target group focus 45+

5ADLER Equity Story

Great popularity of ADLER Customer Card reflects high loyalty and supplies ADLER with detailed customer insight

Source Statista nhi2 1005 participants 2013

Which customer cards of textile retailers do you use on a regular basis

1

1

1

2

2

2

3

4

4

7

7

7

Bonita

Ulla Popken

Orsay

Tom Tailor

Woumlhrl

Charles Voumlgele

Ernsting`s Family

Takko

sOliver

PeekampCloppenburg

Esprit

ADLER

Source Finanztest (2010)

38 million active ADLER Customer Card members -gt wide customer database

~ 40000 new Customer Cards every month

90 of revenues generated via Customer Card

Best in class ADLER Customer Card classified best out of 24 loyalty card schemes

Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach

High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 5: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

5ADLER Equity Story

Great popularity of ADLER Customer Card reflects high loyalty and supplies ADLER with detailed customer insight

Source Statista nhi2 1005 participants 2013

Which customer cards of textile retailers do you use on a regular basis

1

1

1

2

2

2

3

4

4

7

7

7

Bonita

Ulla Popken

Orsay

Tom Tailor

Woumlhrl

Charles Voumlgele

Ernsting`s Family

Takko

sOliver

PeekampCloppenburg

Esprit

ADLER

Source Finanztest (2010)

38 million active ADLER Customer Card members -gt wide customer database

~ 40000 new Customer Cards every month

90 of revenues generated via Customer Card

Best in class ADLER Customer Card classified best out of 24 loyalty card schemes

Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach

High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 6: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

6ADLER Equity Story

Potential for internal growth through expansion of ADLER online-shop

Revenue CAGR of 283 in the last three years (2016 euro89 million)

Revenue 9M-2017 euro93 million (+23 vs 9M-2016)

Average size of shopping cart increases constantly (2017 euro8470 -gt +5 vs 2016)

9 direct eCommerce employees

gt 60 employees work indirectly for service providers for ADLER eCommerce

Constantly 5500 items online

49 of customers reached via mobile devices

Continued dynamic growth for 2017 expected

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 7: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

7ADLER Equity Story

Phase of consolidation continues in 2017 ndashfurther medium- to long term potential

Number of ADLER stores per country

Number of stores

Market

entryacute09 acute10 acute11 acute12 acute13 acute14 acute15 acute16 2017

Germany 1948 104 107 132 139 143 145 154 156 156

Austria 1987 17 26 28 27 25 22 21 22 22

Luxembourg 1981 2 2 2 2 2 2 2 3 3

Switzerland 2012 1 1 1 1 2 2

Total 123 135 162 169 171 170 177 183 183

Organic openings 3 8 13 11 5 4 3 7 1

Acquisitions 7 18 5 1 0 10 0 0

Closings sales 1 3 3 9 4 5 6 1 1

Net difference 2 12 28 7 2 -1 7 6 0

Regional presence and potential for expansion

Short-term focus on investment discipline only 1 organic store opening in 2017 after 7 storesin 2016 (6 stores net)

Focus on large formats such as retail centers and stand-alone markets with a retail space of gt 1400 msup2

Focus on DACH region and Luxembourg (optimisation and consolidation of existing store network)

Targets

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 8: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

8ADLER Equity Story

9M 2017 results

ldquoSubstantial improvements

in earnings and free cashflowrdquo

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 9: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

9ADLER Equity Story

New top management ndash first analysis and perspectives

Analysis of status quo started immediately from September 11

Intensive management discussions during numerous shop visits

(target gt50 until year-end 2017)

First impressions and perspectives

Unique market position and substantial upside based on

established ADLER customer card and new client potential

Optimisation potential for collection management store

format omni-channel approach CRM digitalisation leadership

and operative excellence

Next steps

We want to bring ADLER back onto a sustainable growth track

Definition and communication of new strategic set-up until

year-end result presentation mid March 2018

Thomas Freude CEO

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 10: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

10ADLER Equity Story

Key facts ndash substantial improvements in earnings and cashflow

Q3 revenues up 2 like-for-like revenue virtually in line with industry level after nine months

Substantial EBITDA growth by euro143 million to euro66 million due to improved profitability and non-

recurring effects ndash operating result reaches euro04 million (up euro81 million)

Free cash flow improved by more than euro26 million to euro64 million thanks to stringent cash flow

management

Outlook for FY 2017 confirmed

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 11: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

11ADLER Equity Story

Sales increased in Q3-2017 ndash Nine months development as expected

3750 3742

1179 1202

9M-2016 9M-2017 Q3-2016 Q3-2017

-02 +19

Revenue in meuro

Like-for-like 9M -19 Like-for-like Q3 +03

Online revenues 9M euro 75 million (+25) On track to achieve FY

target gt euro 10 million

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 12: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

12ADLER Equity Story

1835 1792

Gross Profit

Cost of Goods Sold

9M-2016 9M-2017

Gross profit margin increased to gt50 in Q3

Margin 521511

in meuro

Gross margin Q3-2017 503 (Q3 2016 477) 9M-2017 521 unchanged

Reduction of cost of materials due to adjustments in purchasing volumes

-23

+18 19491915

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 13: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

13ADLER Equity Story

EBITDA significantly increased due to operating improvements and one-off effects

-77

66

-84

-36

9M-2016 9M-2017 Q3-2016 Q3-2017

EBITDA in meuro

Increase in EBITDA due to operating improvements and non-recurring effect resulting from the sale of two buildings in Austria in the first quarter of 2017

Operating EBITDA reached euro+04 million in 9M-2017 up euro81 million Personnel costs down 6 as indicated FY savings of euro6 million confirmed All efficiency measures in line with

schedule

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 14: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

14ADLER Equity Story

Decline of cash substantially less pronounced than in previous years

Net debt

Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities

in meuro

in meuro

Cash and cash equivalents at euro366 million as of 30092017

30092016 euro140 million

30122016 euro428 million

Free cash flow euro+64 million in 9M-2017 (9M-2016 euro-202 million)140

428

83

-18

-126

366

Cash3092016

Cash112017

OperatingCF

CF fromInvesting

CF fromFinancing

Cash3092017

Net debt impacted by

Increase in cash and cash equivalents by euro226 million to euro366 million (9M-2016 140 million)

Unchanged assets held for sale (euro03 million)

Increase in finance lease obligations from euro522 million to euro549 million

Financial debt of euro175 million (9M euro135 million)

Reduction of pension provisions by euro04 million to euro54 million

Leverage declines from 198 to 180 (yoy)

641

410

30092016 30092017

-36

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 15: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

15ADLER Equity Story

Balance sheet quality further improved yoy

in meuro

30 Sept 2016

30 Sept2017

31 Dec 2016

Total assets 2302 2496 2226

Inventories 1018 933 754

Trade receivables 03 04 06

Cash position 140 366 428

Equity 772 891 958

Equity ratio 335 357 431

Trade payables 469 512 253

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 16: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

16ADLER Equity Story

Klagen-furt

Salz-burg

Voumlsen-dorf

Ans-felden

Real estate portfolio under lease (exp 30 April 2017)

St Poumllten (formerly

owned)

Klagen-furt

Sold to retailerwith effect from

1 April 2017

boughtout at purchase price

of euro 13 million

Liquidity generated enabled ADLER to acquire GBS Grundstuumlcksverwaltungsgesellschaft

mbH with effect from 3 May 2017 purchase price euro 67 million ( + euro 40 million liabilities)

not used as ADLER store

Voumlsen-dorf

Salz-burg

Ans-felden

GBS

Update on real estate transactions

Sales revenue euro 10 million euro 75 million recognized as

non-recurring effectin Q2

News on resale to strategic investorto be expected shortly

euroeuroeuro

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 17: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

17ADLER Equity Story

New ADLER Brand Campaign 2017 started in September 2017

Target Increase of footfall and revenue through

Activation of existing clients New client wins

Add emotions to the brand by linking it withappealing content (bdquoGreat appreciation of andcompliments for our clientsldquo)

Boost brand awareness

Implementation Focus on ADLER`s core brand value bdquoMode ist fuumlr

Menschen daldquo (bdquoFashion is for peopleldquo) Deployment of authentic charismatic self-confident

people (instead of models) 360-degree-implemenation across all channels

(TV Mailings Digital PoS) Adressing of clients and employees at the same time

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 18: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

18ADLER Equity Story

Forecast FY 2017 confirmed substantially higher profitability despite continued market weakness

Revenue Revenue slightly below prior-year level

EBITDA euro27-30 million

Expansion 1 store opening in 2017

Gross profit margin

Personnel expenses Slight decrease

Slight increase

Transport and logistics costs Slight increase

Revenue generated online Significant increase

Free Cash Flow At least level with 2016

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018

Page 19: ADLER Modemärkte Equity Story€¦ · Fashion follower of market proven styles, minimising fashion risk Up to 10 collections per year Completely outsourced production Diversified

19ADLER Equity Story

Financial calendar amp contact details

Adler Modemaumlrkte AG Industriestraszlige Ost 1 ndash 763808 HaibachGermany

Phone +49 6021 633-1828Fax +49 6021 633-1417eMail InvestorRelationsadlerde

Report on the first quarter of 8 May 2018

Annual General Meeting 9 May 2018

Annual Report 2017 15 March 2018

FINANCIAL CALENDAR 2018

Report on the first half year 2 August 2018

Report on the first nine months 8 November 2018

German Equity Forum Frankfurt November 2018