2. Agenda
• Q2 and half year 2010/2011
Christian W. Jansson CEO • Production conditions
• Present market situation
• Going forward
• Questions
Håkan Westin, CFO
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5. Stores February 2011
• 360 stores
• 54 new stores under contract
• Total of 25 stores this year
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6. 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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7. 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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8. 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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10. 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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11. Cash flow, Q1-Q2
Sept 2010 - Feb 2011
MSEK 2010/11 2009/10
Cash flow from continuing 174 281
operations before changes in
working capital
Changes in working capital -126 11
Cash flow from continuing 48 292
operations
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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12. 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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13. Sales breakdown, Q1-Q2
Sept 2010 - Feb 2011
Change Local
MSEK 2010/11 2009/10 in SEK 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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14. Production conditions
• Shortage of capacity
• Sharply increasing cotton prices
– The future market indicates a lower
price later this year
• Increasing salaries
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15. Present market conditions
• Weak market
– Good purchase power
– Improving labor market
But
– Increasing energy prices
– Higher interest rates
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16. 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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17. 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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