1. The First Quarter
2006/2007
1 September to
30 November 2006
21 December 2006
Christian W. Jansson
CEO
Håkan Westin
CFO
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2. 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and are not for publication or distribution to persons in the United States.
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3. Agenda
I Business Highlights
II Results Q1, 2006/2007
III Key Conclusions
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4. Business Highlights I
Business Highlights
• The best first quarter so far.
– Improved gross margin.
– Successful purchasing and good inventory control.
– Good LFL sales
• Continued good general retail demand.
• Store expansion program on track.
– 11 new stores during Q1.
– Current network of 271 stores and 17 contracts
for new store openings.
– Rest of the financial year, 2-4 closures and
5-8 openings.
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5. Results Q1 II
Financial Highlights Q1
• Sales increased by 3.2 percent to MSEK 1 189 (1 152).
• Gross margin improved to 62.2 (58,7) percent.
• Operating profit increased to MSEK 186 (150).
• Operating margin improved to 15.6 (13.0) percent.
• Profit after taxes was MSEK 123 (96), corresponding to
SEK 1.64 (1.28) per share.
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6. Results Q1 II
Financial Highlights Q1
2006/2007 vs. 2005/2006
-2,8% +4,5% +1,5% ∑ 3,2%
1 300
1 189
• FX impact was negative.
1 200 1 152 • Net new stores largest growth
contributor with 4.5 percent.
1 100 • LFL -2.0 percent impacted by
MSEK
discontinued cosmetics sales
MSEK 0 (20).
1 000
• LFL excluding cosmetics
was +3.5 percent.
900
800
Q1 FX Net LFL Q1
05/06 effect new growth 06/07
stores
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8. Results Q1 II
Income Statement Q1
2006/2007 vs. 2005/2006
Income statement Q1 (Sept-Nov)
MSEK 06/07 05/06
Net sales 1 189 1 152
Cost of goods sold -449 -476
• Improved net finance
Gross profit 740 676
• Net profit +28%
Selling expenses -513 -487
Administrative expenses -41 -39
Operating profit 186 150
Financial income 2 1
Financial expense -16 -19
Profit before tax 172 132
Tax expense -49 -36
Net profit 123 96
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9. Results Q1 II
Sales Breakdown Q1
2006/2007 vs. 2005/2006
Q1 Q1 Growth
MSEK 06/07 05/06 SEK Loc. cur.
Sweden 683 653 4,6% 4,6%
Norway 333 341 -2.3% 6,3%
Finland 130 121 7.4% 9,7%
Poland 43 37 16.2% 19,3%
Total 1 189 1 152 3.2%
Poland
4% (3%)
Finland
11%
(10%)
Sweden
Norway 57% (57%)
31%
28%
(30%)
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10. Results Q1 II
Cash Flow Q1
Cash flow statement Q1 Q1
MSEK 06/07 05/06
Cash flow from operations before working capital changes 185 150
Changes in working capital 24 11
Cash flow from operating activities 209 161
Cash flow investing activities -50 -60
Cash flow after investments 159 101
Cash flow from financing activities -99 -89
Change in revolving credit -5 -8
Net cash flow for the period 55 4
Cash and bank balances at beginning of period 72 83
Cash and bank balances at end of period 127 87
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11. Key Conclusions III
Key Conclusions and Outlook
• Best quarter so far
• First class gross margin
• Excellent inventory control
• Good sales development
• Higher operating margin target
Focus going forward
• Continued emphasis on overall sales
• Maintain gross margin
• Continue new store expansion program
• Two companies acquired – tax loss carryforwards.
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12. 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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