INCREASED SALES AND STRONG GROSS MARGIN WOMENS ASSORTMENT BACK AT - PowerPoint PPT Presentation

INCREASED SALES AND STRONG GROSS MARGIN WOMEN’S ASSORTMENT BACK AT GOOD SALES LEVEL First quarter report 2012/13 (Sept-Nov)

Agenda • Highlights • Q1 2012/2013 • Going forward Johan Åberg • Questions President and CEO Håkan Westin CFO 2

Campaigns during period – Design by KappAhl

Highlights • Positive Like-for-like sales • Gross margin improvement  +490 basis points • Growing operating profit • Debt reduction  Real estate divestment  New rights issue • Equity ratio 41 percent 4

Stores by end November 2012 167 65 • Total 395 stores 104 • Ten new stores and three closed during Q1 • Total 13 new stores and nine closures 2012/2013 • 16 new stores under contract 54 5 5

Financial highlights Q1 • Net sales MSEK 1 245 (1 193), an increase of 4.4 percent • Operating profit MSEK 104 (16), excl one-off items • Gross margin 63.3 (58.4) percent • Operating margin 8.3 (1.3) percent, excl one-off items • One-off items MSEK 77 6

Operating profit (excl. One-off items) 141 7

Sales Q1 MSEK % Net sales 2011/12 1 193 New stores net 2.6 Like for like 3.0 Currency effect -1.2 Net sales 2012/13 1 245 4.4 8

Income statement Q1 MSEK 2012/13 2011/12 Net sales 1 245 1 193 Cost of goods sold -457 -496 Gross profit 788 697 Selling expenses -650 -648 Administrative expenses -34 -33 One-off items 77 - Operating profit 181 16 Financial income 0 0 Financial expense -43 -26 Profit before tax 138 -10 Tax expense -23 -1 Net profit 115 -11 9

Net interest bearing debt MSEK August 31, 2012 1 673 Sale of property 490 New Equity 383 New level of Net Debt 800 Target Net Debt/EBITDA <3.0 10

Cash flow Q1 MSEK 2012/13 2011/12 Cash flow from continuing operations 79 30 before changes in working capital Changes in working capital -4 -35 Cash flow from continuing 75 -5 operations Sale of real estate 487 - Cash flow from investment activities -53 -50 Cash flow after investments 509 -55 Change bank overdraft facility -515 47 New share issue - 535 Cash flow for the period -6 527 11

Going forward Action plan 2012/13 • Continue improving performance and regain market share Assortment • Launch of new collections: – Active wear – Preppy for women – Toddler • Future Friendly Fashion – Increased eco cotton Store • Continue develop store expression Marketing • Continue develop the marketing platform • Shop Online 12

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Campaigns end 2012/start 2013 – Design by KappAhl