Weak sales in the first quarter of 2010-2011 did not meet expectations. Sales increased from new stores but like-for-like sales declined. Net sales were 1.341 billion SEK, down 0.2% compared to the previous year. While the gross margin remained strong at 63.4%, operating profit declined 29% to 146 million SEK due to lower sales. Looking forward, management expects private consumption to grow but increasing sourcing costs remain a concern.

1. Weak sales
Q1 September 2010 – November 2010

2. Agenda
• Q1 2010/2011
Christian W. Jansson CEO
• Market situation
• Conclusions
• Questions
Håkan Westin, CFO
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3. Highlights Q1
• Like-for-like sales not up to our
expectations
• Good sales increase from new stores
• 15 stores opened
• Launch of Hampton Republic 27
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4. KappAhl Q1: Campaigns during period
Sentimental Journey
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5. Stores November 2010
• 360 stores
157 58
• 15 stores opened in Q1
• Significant contribution 99
from new stores in Oslo
Helsinki
sales and profit Stockholm
• 44 new stores under
contract
• Total of 27 stores this
year
Warsaw
43
Prague
3
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6. Financial highlights, Q1
September - November 2010
• Net sales MSEK 1 341 (1 344), -0,2%
• Operating profit MSEK 146 (207), -29%
• Gross margin 63,4 (65,0)%
• Operating margin 10,9 (15,4)%
• Net profit MSEK 95 (178), equivalent to
SEK 1.27 (2.37) per share. Last year
included deferred taxes of MSEK 39.
• Cash flow from continuing operations
MSEK 60 (133)
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7. Income statement, Q1
September - November 2010
MSEK 2010/11 2009/10
Net Sales 1 341 1 344
Cost of goods sold -491 -470
Gross profit 850 874
Selling expenses -669 -630
Administrative expenses -35 -37
Operating profit 146 207
Financial income 0 0
Financial expense -17 -18
Profit before tax 129 189
Tax expense -34 -11
Net profit 95 178
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8. Sales, Q1
September - November 2010
MSEK %
Net sales Q1 2009/10 1 344
New stores net 5,8
Like For Like -3,1
Currency effect -2,9
Net sales Q1 2010/11 1 341 -0,2
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9. Sales breakdown, Q1
September - November 2010
Change Local
MSEK Q1 10/11 Q1 09/10 in SEK currency
Sweden 726 717 1,3% 1,3%
Norway 358 376 -4,8% 0,2%
Finland 152 166 -8,4% 1,6%
Poland 101 84 20,2% 25,5%
Czech Republic 4 1 300,0% 173,0%
Total 1 341 1 344 -0,2% -
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10. Present market situation
• Strong financial development in our
markets
– Industry is the driver
– Retail sales develop slower
– Fashion sales weaker than expected
• Increasing sourcing costs remains a
concern
• Private consumption expected to grow
10

11. Sales growth
11

12. Gross margin
12

13. Operating margin
excl. one-offs
13

14. Return on capital/employed
14

15. Key conclusion
• Business concept – proven long term
stability
• Like-for-like – key focus going forward
• Strong gross margin
• Strong cash flow
– Reduced tax payment going forward
15

16. In store now
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17. Disclaimer
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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.
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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
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connection with, any contract or investment decision in relation to
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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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