The company reported strong financial results for the second quarter and first half of the fiscal year, with net sales increasing 4.0% and 4.5% respectively. Operating profit grew 13.5% in the second quarter excluding one-time items. Cash flow from operating activities was also up significantly. The company will continue its store expansion strategy and establish new markets to further boost sales and profits. Key to ongoing success is maintaining high gross margins while expanding the store base.

1. Second quarter &
half-year report
December 1, 2007 to February 29, 2008
Another strong quarter
Christian W. Jansson, President & CEO
Håkan Westin, CFO
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3. 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United States and are not for publication or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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5. Number of stores
280 stores end February 133 44
2008
46 new stores under
contract 85
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7. Financial highlights Q2
December 1, 2007 – February 29, 2008
Net sales MSEK 1,132 (1,088), an increase of 4.0
percent.
Operating profit MSEK 118 (117). Excluding one-offs,
an increase of 13.5 percent.
Gross margin 59.6 (57.7) percent and operating margin
10.4 (10.8) percent.
Profit after taxes MSEK 74 (338), equivalent SEK 0.99
(4.50) per share.
Cash flow from operating activities MSEK 183 (104).
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9. Income statement Q2
MSEK Dec-Feb 07/08 06/07
Net sales 1,132 1,088
Cost of goods sold -457 -460
Gross profit 675 628
Selling expenses -521 -488
Administrative expenses -36 -36
Other operating income 0 13
Operating profit 118 117
Financial income 3 10
Financial expense -18 -33
Profit before tax 103 94
Tax expense -29 244
Net profit 74 338
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11. Sales Q2
MSEK %
Net sales Q2 2006/2007 1,088
Currency effect +1.8
New net stores +1.8
Like For Like growth +0.4
Net sales Q2 2007/2008 1,132 +4.0
Beginning of period not satisfactory
Contribution from new stores will
increase
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13. Profitability drivers Q2
(excl. one-offs) 2007/2008
Sales 104%
Gross profit 107%
Costs 106%
Operating income 113%
Further improved operating margin
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15. Financial highlights half-year
September 1, 2007 – February 29, 2008
Net sales MSEK 2,379 (2,277), an increase of 4.5
percent.
Operating profit MSEK 324 (303). Excluding one-offs, an
increase of 11.7 percent.
Gross margin 61.9 (60.1) percent and operating margin
13.6 (13.3) percent.
Profit after taxes MSEK 212 (461), equivalent SEK 2.83
(6.14) per share.
Cash flow from operating activities MSEK 379 (313).
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17. Income statement half-year
MSEK Sept-Feb 07/08 06/07
Net sales 2,379 2,277
Cost of goods sold -907 -909
Gross profit 1,472 1,368
Selling expenses -1,079 -1,001
Administrative expenses -69 -77
Other operating income 0 13
Operating profit 324 303
Financial income 6 12
Financial expense -36 -49
Profit before tax 294 266
Tax expense -82 195
Net profit 212 461
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19. Sales half-year
MSEK %
Net sales 2006/2007 2,277
Currency effect +2.2
New net stores +1.1
Like For Like growth +1.2
Net sales 2007/2008 2,379 +4.5
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21. Sales breakdown half-year
Growth
MSEK 07/08 06/07 SEK Loc.cur.
Sweden 1,315 1,297 1.4% 1.4%
Norway 679 640 6.1% 0.0%
Finland 278 255 9.0% 7.4%
Poland 107 85 25.9% 16.2%
Total 2,379 2,277 4.5%
Poland
Finland 4% (4%)
12%
(11%)
Sweden
Norway 55%
29% (57%)
(28%)
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23. Profitability drivers half-year
(excl. one-offs) 2007/2008
Sales 105%
Gross profit 108%
Costs 106%
Operating income 112%
Further improved operating margin
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25. Cash flow, half-year
MSEK Sept-Feb 07/08 06/07
Cash flow from operations before working capital changes 366 331
Changes in working capital 13 -18
Cash flow from operating activities 379 313
Cash flow investing activities -115 -147
Cash flow after investments 264 166
Change in revolving credit 648 59
Dividends -825 -188
Cash flow from other financing activities -111 1,556
Net cash flow for the period -24 1,593
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27. Future approach
Maintain gross margin
Continue store expansion program
Establish additional markets
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29. Key conclusions
Strong gross margin
Excellent cash flow
Contribution from new stores
will increase
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31. We don’t believe in selling a lifestyle.
You have one already.
We don’t believe in expensive
collections for an exclusive few.
We believe in fashion that suits you.
We don’t believe in eternal youth,
however we believe that people
mature, grow wiser and even
more beautiful.
Take it as a compliment.
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