September 2010 – February 2011

2 Håkan Westin, CFO

Christian W. Jansson CEO

Agenda

• Q2 and half year 2010/2011

• Production conditions

• Present market situation

• Going forward

• Questions

3

Highlights

• Like-for-like sales not up to

our expectations

• Stable gross margin

• Good cost control

4

Campaigns during period

5

Stores February 2011

• 360 stores

• 54 new stores under contract

• Total of 25 stores this year

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Financial highlights, Q2 Dec 2010 - Feb 2011

• Net sales MSEK 1 188 (1 256),

a decrease of 5.4 percent

• Operating profit MSEK 16 (76)

• Gross margin 57.2 (57.7) percent

• Operating margin 1.3 (6.1) percent

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Income statement, Q2 Dec 2010 - Feb 2011

MSEK 2010/11 2009/10

Net Sales 1 188 1 256

Cost of goods sold -508 -531

Gross profit 680 725

Selling expenses -624 -615

Administrative expenses -40 -34

Operating profit 16 76

Financial income 0 1

Financial expense -15 -23

Profit before tax 1 54

Tax expense 0 -20

Net profit 1 34

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Sales, Q2 Dec 2010 - Feb 2011

MSEK %

Net sales 2009/10 1 256

New stores net 3.5

Like For Like -4.6

Currency effect -4.3

Net sales 2010/11 1 188 -5.4

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Financial highlights

Q1-Q2 Sept 2010 - Feb 2011

• Net sales MSEK 2 529 (2 600),

a decrease of 2.7 percent

• Operating profit MSEK 162 (283)

• Gross margin 60.5 (61,5) percent

• Operating margin 6.4 (10.9) percent

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Income statement, Q1-Q2 Sept 2010 - Feb 2011

MSEK 2010/11 2009/10

Net Sales 2 529 2 600

Cost of goods sold -999 -1 001

Gross profit 1 530 1 599

Selling expenses -1 293 -1 245

Administrative expenses -75 -71

Operating profit 162 283

Financial income 0 1

Financial expense -32 -41

Profit before tax 130 243

Tax expense -34 -31

Net profit 96 212

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Cash flow, Q1-Q2 Sept 2010 - Feb 2011

MSEK 2010/11 2009/10

Cash flow from continuing

operations before changes in

working capital

174 281

Changes in working capital -126 11

Cash flow from continuing

operations

48 292

Cash flow from investment activities -97 -103

Cash flow after investments -49 189

Change bank overdraft facility 292 -102

Dividend -244 -94

Cash flow for the period -1 -7

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Sales, Q1-Q2 Sept 2010 - Feb 2011

MSEK %

Net sales 2009/10 2 600

New stores net 4.6

Like For Like -3.7

Currency effect -3.6

Net sales 2010/11 2 529 -2,7

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Sales breakdown, Q1-Q2 Sept 2010 - Feb 2011

MSEK 2010/11 2009/10

Change

in SEK

Local

currency

Sweden 1 365 1 365 0% 0%

Norway 671 732 -8.3% -1.8%

Finland 297 336 -11.6% -0.5%

Poland 188 164 14.3% 23.2%

Czech Republic 8 3 166.7% 169.3%

Total 2 529 2 600 -2.7%

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Production conditions

• Shortage of capacity

• Sharply increasing cotton prices

– The future market indicates a lower

price later this year

• Increasing salaries

15

Present market conditions

• Weak market

– Good purchase power

– Improving labor market

But

– Increasing energy prices

– Higher interest rates

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Going forward

• Continue to develop the business concept

• New advertising and store expressions

• Customer loyalty program

• E-commerce

• Focus on design

• Cost containment

• Reduced stock

• Expansion plans continues

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Disclaimer

These materials may not be copied, published, distributed or transmitted to third parties.

These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties.

These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States.

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Royal

wedding

Spring 2011 – Design by KappAhl