TOM TAILOR GROUP - STRATEGY UPDATE

DIETER HOLZER CHIEF EXECUTIVE OFFICER

Capital Markets Day, November 28, 2012

TOM TAILOR GROUP AT A GLANCE

2

Franchise stores Shop-in-shops Multi-label

283

in Europe 974

in Europe

167

in Europe

1,979

in Europe

~6,300

worldwide

Wholesale Retail

E-commerce

6 e-shops

(de, at,

nl, be, fr, ru)

TOM TAILOR BONITA TOM TAILOR

Figures as of September 30, 2012

38%

62%

Retail

Wholesale

Increasing retail share

62%

38%

FY 2011 Sept. 2012

Product portfolio – male/female/kids FY 2011 Sept. 2012

47%

42%

11% MenWomenKids 28%

66%

6%

Retail stores Retail stores

TOM TAILOR GROUP – THE INVESTMENT CASE

TOM

TA

ILO

R G

rou

p

A leading German fashion company with two complementary umbrella brands targeting attractive customer segments in stable and promising markets

Superior business model with full control over entire value chain

Strengthened profile as a vertical retailer with expanded retail distribution, strong wholesale and growing e-commerce business

Upside potential for lfl growth by reducing lead times at BONITA

Substantial economies of scale from new sourcing strategy

BONITA’s retail and logistics capabilities to support retail management and roll-out across the Group

Sufficient headroom to finance further organic growth

1

2

3

4

5

6

7

3

5.734

2.747

2.059

1.382

1.200

1.036

850

790

703

700

591

412

346

Adidas

Esprit

Hugo Boss

Multiline Textil

s.Oliver Group

Puma

Steilmann Holding

TT

Gerry Weber

CBR Fashion

JCK Holding

Holy-Gruppe

Marc O'Polo

A LEADING GERMAN FASHION

COMPANY…

Source: TextilWirtschaft September 2012 (apparel companies with sales above € 50m); BONITA and TOM TAILOR sales refer to 2011 proforma figures

Note: unaudited BONITA financials prepared in accordance with IFRS, recalendarised to Dec Y/E

The leading German apparel companies by sales (€ m) in 2011

1

The leading European apparel companies by sales (€ m) in 2011

4

No. 8 of 55 TOM TAILOR Group

2.747

2.227

2.196

2.140

2.059

790

763

703

Adidas Group

Esprit

Tommy Hilfiger

Bestseller Group

Burberry Group

Hugo Boss

TOM TAILOR Group

Groupe Zannier

Gerry Weber

TOM TAILOR Group

5.734

…

No. 24 of 139

57%

30%

9% 3% 1% <1%

13-17 18-24 25-34 35-44 45-54 55+

1% 3%

13%

29% 32%

22%

< 25 26-35 36-45 46-55 56-65 > 65

…WITH TWO COMPLEMENTARY UMBRELLA

BRANDS TARGETING ATTRACTIVE CUSTOMER

SEGMENTS… Customer segmentation by age

TOM TAILOR Casual

21%

37%

26%

11%

3% 1%

13-17 18-24 25-34 35-44 45-54 55+

TOM TAILOR Denim BONITA

1

Three clearly differentiated brands; extended customer target reach through BONITA

Focus on casual wear in mid price segment

Primarily targeting the middle income consumer segment (in Germany 55% of all households)

Increasing proportion in women‘s apparel (almost 70%)

5

< 25 years 87% between 18-44 years 74% > 46 years 83%

…IN STABLE AND PROMISING MARKETS

TT = TOM TAILOR; figures as of September 30, 2012 [¹] Benelux comprises Belgium and the Netherlands only; [2] South Eastern Europe comprises Bosnia, Bulgaria, Croatia, Serbia and Slovenia

TOM TAILOR presence

Joint presence

TT Bonita Total

Retail 10 117 127

Franchise 6 – 6

Total 16 117 133

TT Bonita Total

Retail 11 – 11

Franchise 2 – 2

Total 13 – 13

TT Bonita Total

Retail 283 974 1,257

Franchise 167 – 167

Total 450 974 1,424

TT Bonita Total

Retail 23 – 23

Franchise 68 – 68

Total 91 – 91

TT Bonita Total

Retail 56 – 56

Franchise 9 – 9

Total 65 – 65

TT Bonita Total

Retail 114 694 808

Franchise 52 – 52

Total 166 694 860

TT Bonita Total

Retail 7 3 10

Franchise 1 – 1

Total 8 3 11

Austria

Benelux[¹]

France

Switzerland

Total

Other

South Eastern Europe[²]

Germany

Poland

TT Bonita Total

Retail 12 41 53

Franchise 8 – 8

Total 20 41 61

TT Bonita Total

Retail 50 119 169

Franchise 21 – 21

Total 71 119 190

1

Strong presence in Germany

65%

35%

Germany

International

69%

31%

FY 2011 Sept. 2012

6

STRENGHTENED PROFILE AS A VERTICAL

RETAILER…

7

26.8 45.9

76.5 106.7

154.6

102.8

193.5

234.4 237.5

223.7

241

257

192.4

205

2007 2008 2009 2010 2011 2012e* 9M2011

9M2012*

*Includes BONITA since August 2012

Wholesale

Retail

2

Significant boost in retail share to Group sales

(€m)

261 283

300

348

412

625 - 635

399

295

…WITH EXPANDED RETAIL

DISTRIBUTION,…

8

2

Product offering focussed on customer needs (direct feedback)

Easier merchandise replenishment of stores

Strengthening of brand perception

Higher gross margins support Group profitability

Expansion plan: 60 TOM TAILOR stores p.a.

40 BONITA stores p.a.

Increased focus on strategic growth segment Retail

Target

Retail contribution to Group sales will reach 70% in 2013

and will rise even further in the coming years

…STRONG WHOLESALE…

9

2

Concentrating on controlled sales areas (franchise stores, shop-in-shops)

Connection to TOM TAILOR EDI system

Desirable brands with strong proposition for wholesale partners

Delivery of the right product at the right time to the right place in the right

quantity….

… in connection with intelligent replenishment solutions (NOS)

Knowledge transfer from retail experience to wholesale

Expansion plan: 200-250 TOM TAILOR shop-in-shops p.a.

20-25 TOM TAILOR franchise stores p.a.

TOM TAILOR Wholesale remains well positioned for future growth

…AND GROWING E-COMMERCE

BUSINESS

10

5,1 8,8

16,6

21,8 24,7 23,5

2007 2008 2009 2010 2011 9M 2012

2

TOM TAILOR e-commerce sales in €m

TOM TAILOR Constant assessment of

usability, assortment,

presentation and service

features

Launch of a European

e-shop in Q4 2012

BONITA

Introduction of BONITA

fashion card in Q1 2013

Launch of BONITA e-shop

in Q2 2013

Target

Mid-term contribution of

10% to Group sales

+73%

+88%

+31%

+14%

5.1 8.8

16.6

21.8 24.7

15.9

23.5

2007 2008 2009 2010 2011 9M2011

9M2012

+73%

+88%

+31%

CAGR 2007-2011: 48%

+48% +14%

End Sept.2011

End Sept.2012

401.400

502.800

Number of registered

customers

SUPERIOR BUSINESS MODEL WITH FULL

CONTROL OVER ENTIRE VALUE CHAIN

11

3

23 – 26 weeks

TOM

TA

ILO

R

UPSIDE POTENTIAL FOR LFL GROWTH

BY REDUCING LEAD TIMES AT BONITA

12

4

24 - 28 weeks

40 – 44 weeks Today

Sale

Sale Time saving: 16 weeks

Setting up a new design and product cycle

Short term measures

Understand consumer demand

Introduce trend scouting

Balanced product group mix

Introduce collection framework

i.e. price architecture

Positive lfl development

earliest in Q4 2013

today

goal

Target

SUBSTANTIAL ECONOMIES OF SCALE

FROM NEW SOURCING STRATEGY

13

China:

18 employees

India:

26 employees

Bangladesh:

46 employees

Vietnam:

14 employees

Indonesia:

20 employees

Hong Kong:

main office

6 employees

5

2011:

TOM TAILOR Sourcing Ltd. is founded in

cooperation with long standing partner

Asmara International

2012:

68% of overall sourcing volume already

sourced directly in Q3 2012 (46% in Q3 2011)

Number of suppliers reduced from

236 to less than 200

2013:

TOM TAILOR Sourcing Ltd. starts to procure

for BONITA

Transfer of total sourcing volume to

TOM TAILOR Sourcing Ltd. completed

Gross margin improvement from 2013

onwards

BONITA’S RETAIL AND LOGISTICS CAPABILITIES TO

SUPPORT RETAIL MANAGEMENT AND ROLL-OUT

ACROSS THE GROUP

14

Same pull and push logistics with store-to-store redistribution across the Group

Warehouse in Hamminkeln will become the retail logistics centre for the Group

Outsourced TOM TAILOR warehouse in Hamburg remains warehouse for wholesale segment

Highly efficient stocking and redistribution system through centrally controlled redistribution system

Automatic commissioning

Efficient store-to-store redistribution

6

Goal

Delivery

of new

stock

Quality

control

Stores

Storage 10-20%

80-90%

Distribution centre

Stores

Stores Push:

first delivery

Pull: resupply

Pull: Restock

OUTLOOK 2012:

STRENGTHENING OF FINANCIAL PROFILE

15

2012 incl. BONITA*

Net sales

Recurring EBITDA

Recurring EBITA

€ 625m – € 635m

€ 70m – € 75m

€ 40m – € 45m

*Consolidation of BONITA as of August 1, 2012

Outlook confirmed under the assumption that consumer confidence remains stable in Q4 2012

OUTLOOK 2013 AND BEYOND:

FOCUS ON PROFITABLE GROWTH

16

2013

Growth

Profitability

Operations

Group sales of at least € 900m

Group recurring EBITDA margin of at least 12.0%

Focus on conclusion of BONITA integration and

finalization of current projects

5 years‘ target

Profitability Group EBITDA margin of at least 15%

SUFFICIENT HEADROOM TO FINANCE

FURTHER ORGANIC GROWTH

17

40

180 85

137,5

100

137,5

Old structure New structure

Financing structure

455

225

(€m)

LC +

guarantee

line

Cash

line

Term

loan

Working capital

financing

Extension of financing structure allowed

take over of BONITA and provides room for

financing further store roll out in the future

Interest payments are variable and

based on short term Euribor plus an

additional margin

Duration of 3 years plus a renewal option for

an additional 2 years

Net debt at end of Q3 2012 at € 279.5m

Net debt / EBITDA below 2.0 times in 2014

7

as of Feb. 2012 as of Aug. 2012

Target

Reduction of net debt

by € 10m p.a.

FINANCIAL SUMMARY I

18

Segment Driver 2010 2011 2012e 2013e 2017e

Net sales

Group 348 412 625-635 >900

Retail Lfl growth,

store openings,

E-commerce

107 155

Wholesale Expansion

controlled

distribution areas

241 257

Gross profit

Group 46.0% 49.0%

Retail Lfl growth 61.9% 60.8%

Wholesale Own sourcing

organisation,

synergies

38.9% 41.9%

Impact on

EBITDA margin*

* Comparison 2017 - 2012

FINANCIAL SUMMARY II

19

Segment Driver 2010 2011 2012e 2013e 2017e

Gross profit

Group 46.0% 49.0%

Retail Lfl growth 61.9% 60.8%

Wholesale Own sourcing

organisation,

synergies

38.9% 41.9%

Other operating

income

Group 14.9

4.3%

13.2

3.2%

Personnel

expenses

Group 49.7

14.3%

60.7

14.7%

Marketing

expenses

Group 10.1

2.9%

14.7

3.6%

Other operating

cost

Group Freight cost 25.5

7.3%

27.8

6.7%

Administrative

expenses

11.3

3.2%

15.0

3.6%

Others 17.9

5.1%

20.4

5.0%

EBITDAR Group 60.2

17.3%

76.2

18.5%

Rents 20.1

5.8%

28.1

6.8%

EBITDA Group 40.1

11.5%

48.1

11.7%

70-75

12.0%

15.0%

Impact on

EBITDA margin*

* Comparison 2017 - 2012

FINANCIAL SUMMARY III

20

Segment Driver 2010 2011 2012e 2013e 2017e

EBITDA Group 40.1

11.5%

48.1

11.7%

70-75

12.0%

15.0%

Depreciation Group 14.9

4.3%

20.3

4.9%

EBITA = EBIT Group 25.2

7.2%

27.8

6.7%

Amortisation TOM TAILOR 8.1 5.3 4.7 4.7 4.7 4.7

BONITA 1.7 4.0 4.0 2.3

Interest result 8.0

2.3%

7.2

1.7%

EBT Group 17.2

4.9%

20.6

5.0%

Taxes Group 4.8

28%

5.7

28%

Net income Group 12.4

3.6%

14.9

3.6%

Impact on net

income margin*

* Comparison 2017 - 2012

INTEGRATION UPDATE

21

INTEGRATION PROCESS BONITA

AND STRATEGIC INITIATIVES

22

E-commerce

Sourcing

Product design

Merchandise

planning &

controlling

Logistics

Aug. 8, 2012 Sept. 30, 2012 Dec. 31, 2012 March 31, 2013 June 30, 2013 Sept. 30, 2013 Dec. 31, 2013

STRATEGIC INITIATIVES I

23

Activities

Finalization

Transfer of TOM TAILOR’s e-commerce competence to BONITA

Build up e-shop at BONITA

End of Q2 2013

E-commerce

Benefits Mid-term contribution of 10% to BONITA sales

Activities

Finalization

Transfer of TOM TAILOR’s collection planning competence and design capabilities to

BONITA

Reduce lead times at BONITA

Usage of sales figures for product design

End of FY 2013

Product design

Benefits 2013 - 2015

Positive impact on lfl development earliest Q4 2013

STRATEGIC INITIATIVES II

24

Activities

Finalization

Introduction of merchandise planning & controlling

Introduction of clear price architecture

Shorten sales cycle in stores (increase stock turn rate)

Usage of sales figures for product design

End of Q2 2013

Merchandise planning & controlling

Benefits

2013 - 2015

Positive impact on lfl development earliest Q4 2013

Lower level of stock lower working capital

Activities

Finalization

Shift part of BONITA´s sourcing from Europe to Asia

Joint use of TOM TAILOR´s Asian sourcing office to increase share of direct sourcing and to

bundle volumes at same suppliers

Organisational and functional set up concluded end of FY 2013

Majority of BONITA sourcing procured by TOM TAILOR Sourcing Ltd.

Sourcing

Gross margin

benefit

2013 2014 2015

€ 2m € 6m € 10m

STRATEGIC INITIATIVES III

25

Activities

Finalization

Same pull and push logistics with store-to-store redistribution across the Group

Increase share of store-ready picking to increase staff productivity in stores

End of Q2 2014

Logistics

Benefits

2013 - 2015

Lower level of stock lower working capital

Lower mark-downs

Lfl growth

Benefits partly compensated by higher freight cost

26

Become one of the leading

European fashion companies

OUR VISION